INVENTIV HEALTH, INC. (VTIV) filed Quarterly Report for the period ended 2009-09-30.
inVentiv Health is the leading provider of commercialization and complementary services to the global pharmaceutical life sciences and biotechnology industries. inVentiv delivers its customized clinical sales marketing and communications solutions through its three core business segments: inVentiv Clinical inVentiv Communications and inVentiv Commercial. Inventiv Health, Inc. has a market cap of $565.9 million; its shares were traded at around $16.85 with a P/E ratio of 11.6 and P/S ratio of 0.5.
Highlight of Business Operations:
Revenues: Revenues decreased by approximately $19 million, or 7%, to $270 million during the three months ended September 30, 2009, from $289 million during the three months ended September 30, 2008. Net revenues decreased by approximately $10 million, or 4%, to $233 million during the three months ended September 30, 2009, from $243 million in the three months ended September 30, 2008.
Cost of Services: Cost of services decreased by approximately $18 million or 9%, to $184 million during the third quarter of 2009 from $202 million in the third quarter of 2008. Most of this variance is due to the decrease in revenues, as described above. Cost of services as a percentage of revenues was 68% and 70% during the third quarter of 2009 and 2008, respectively.
inVentiv Patient Outcomes cost of services increased by approximately $2 million, or 11%, to $20 million in the third quarter of 2009 from $18 million during the third quarter of 2008, mainly due to growth in revenues, as described above.
Selling, General and Administrative Expenses (“SG&A”): SG&A expenses increased by approximately $3 million, or 5%, to $62 million during the third quarter of 2009 from $59 million during the third quarter of 2008, mainly due to increase in medical claims and the inclusion of PMG and PLS, offset by cost reductions at Clinical and Communications, as more fully highlighted below.
SG&A expenses at inVentiv Commercial increased by approximately $1 million to $11 million during the third quarter of 2009 from $10 million during the third quarter of 2008. The majority of this increase was due to the inclusion of PLS results and to costs related to moving facilities in July 2009.
The rate for the third quarter of 2009 included a tax benefit due to the expiration of the statute of limitations related to pre-acquisition liabilities of $1.7 million that were recognized in accordance with FASB Statement No. 141(R) (ASC 805) which was adopted as of January 1, 2009 and a tax detriment of $0.2 million relating to federal tax true-up items. The rate for the third quarter 2008 included approximately $0.5 million ($0.2 million after federal tax effect) of a tax benefit relating to true-up items and $0.2 million of tax benefit relating to the utilization of certain foreign net operating losses. The Company s current effective tax rate is based on current projections for earnings in the tax jurisdictions in which inVentiv does business and is subject to taxation. The Company s effective tax rate could fluctuate due to changes in earnings between operating entities and differences in tax rates in the related tax jurisdictions.
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