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March 25, 2003
LSR ANNOUNCES 2002 RESULTS
Millstone, New Jersey, March 25, 2003 – Life Sciences Research, Inc.
("LSR") announced today that net revenues in the year ended
December 31, 2002 were $115.7 million, an increase of 17% on revenues of
$99.2 million for the year ended December 31, 2001. The underlying
increase, after adjusting for the impact of the movement in exchange
rates, was 13%. The Company reported net income for the year ended
December 31, 2002 of $2.7 million compared with a net loss of $9.6
million the previous year.
for the year ended December 31, 2002 were $0.24 per share on a diluted
basis, compared with loss per share of $1.64 in the year ended December
31, 2001, including Other Income of $4.9 million in 2002 and Other
Expenses of $4.5 million in 2001. In 2002, Other Income included a gain
of $1.2 million associated with the repurchase of $2.4 million principal
amount of the Company’s outstanding convertible bonds; non-cash
foreign exchange transaction gains of $5.0 million on accounting for the
Company’s dollar denominated bonds converted into UK pound sterling;
offset by expenses associated with the Exchange Offer of $1.3 million.
Other Expenses in 2001 included $3.1 million associated with refinancing
and the LSR Exchange Offer and $1.4 million associated with non-cash
foreign exchange transaction losses on accounting for the Company’s
dollar denominated bonds converted into UK pound sterling. Earnings
before Interest, Taxes, Depreciation and Amortization (“EBITDA”),
exclusive of the items discussed above, were $12.4 million for full year
2002, or 10.7% of sales, compared to $6.7 million, or 6.7% of sales, for
the prior year. The Company advises that the trend in earnings
should be viewed on a GAAP and an adjusted EBITDA basis.
the quarter ended December 31, 2002, revenues were $31.1 million,
compared to $26.8 million during the same period last year.
Excluding the Other Income/Expenses referred to above, net income before
taxes for the quarter was $22 thousand, compared to a net loss before
taxes of $753 thousand in the prior year period. On the same
basis, EBITDA was $3.8 million, or 12.1% of sales, compared to $3.0
million, or 11.0% of sales in the same period last year.
cash provided by operating activities totaled $14.0 million in 2002,
compared to cash used of $2.1 million in 2001. Capital expenditures
totaled $4.2 million in 2002 compared with $3.3 million in 2001. Year
end cash and cash equivalents were $14.6 million compared to $2.2
million in the prior year, and total debt was $84.1 million, a decrease
of $4.0 million from December 31, 2001 of $88.1 million.
Net new business signings totaled $37
million for the fourth quarter of 2002, and $135 million for the full
year, an increase of 30% and 25% respectively from the prior year. At
December 31, 2002 backlog (booked-on work) amounted to approximately $95
million. Net days sales outstanding were 9 days compared with 45 days at
the end of 2001.
“This has been a very significant year for Life Sciences Research”, said Andrew Baker, LSR’s Chairman and CEO, “achieving two important financial milestones. We’ve seen meaningful positive cash flow throughout the year, and achieved positive net income from operations in our most recent quarter. These combine to strengthen our balance sheet, including allowing us to repurchase $2.4 million of our convertible subordinated bonds, and a further $1 million subsequent to year-end. We are also completing our first full year as an American domiciled public company, and are more convinced than ever that it was an important and positive strategic step for LSR.”
Brian Cass, LSR’s President and Managing Director, said, “We continue to enjoy a strong market for our services and excellent support from our clients, as reflected by, amongst other things, record orders and a historic level of booked-on work. In 2002 we signed up several record study values which will stand us in good stead for the coming years.”
Life Sciences Research, Inc. is a global Contract Research Organization providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products. The Company's services are designed to meet the regulatory requirements of governments around the world. LSR operates research facilities in the United States (the Princeton Research Center, New Jersey) and the United Kingdom (Huntingdon and Eye, England). Information on LSR’s business, recent press releases, and SEC filings can be obtained through its website at www.lsrinc.net.
This announcement contains statements that may be forward-looking as defined by the USA’s Private Securities Litigation Reform Act of 1995. These statements are based largely on LSR’s expectations and are subject to a number of risks and uncertainties, certain of which are beyond LSR’s control, as more fully described in LSR’s Registration Statement on Form S-1, dated July 12, 2002, and the Company’s Form 10-K for the fiscal year ended December 31, 2001, each as filed with the US Securities and Exchange Commission.
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