IMS Health Announces 2009 Fourth-Quarter and Full-Year Results
Investor Relations Communications
- 4Q Revenues of $599 million, up 11% over third quarter, 3% year over year
- GAAP EPS of $0.39 in quarter
- Non-GAAP EPS of $0.52, up 4% year over year
- Exceptional preliminary cash flow from operations
NORWALK, CT, February 9, 2010 – IMS Health (NYSE: RX), the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries, today announced fourth-quarter 2009 revenue of $599.2 million, up 3 percent year over year and down 3 percent constant dollar, compared with $580.9 million in the 2008 fourth quarter. Net income for the 2009 fourth quarter was $71.5 million and diluted earnings per share was $0.39 compared with net income of $98.5 million and EPS of $0.54 in the year-earlier period. After adjusting for $27.7 million of charges in the quarter related to the previously announced restructuring, certain asset impairments, merger costs and certain other items, net income on a non-GAAP basis for the fourth quarter of 2009 was $95.1 million compared with $90.6 million in the year-earlier period, and non-GAAP EPS was $0.52 compared with $0.50 in the 2008 fourth quarter (See Note c to the financial tables).
“IMS finished the year with an improved fourth-quarter performance, reflecting solid sequential revenue growth and better demand in the second half of the year,” said David R. Carlucci, IMS chairman and CEO. “Our cost reduction plans remain on track, and we achieved exceptional cash flow results throughout the year. We continue to benefit from our industry-leading role, and are strategically positioned to help clients transform their businesses.”
Operating income in the fourth quarter of 2009 was $106.3 million compared with $126.6 million in operating income in the year-earlier period. When adjusted for the restructuring charge, merger costs and certain other items, operating income on a non-GAAP basis for this year’s fourth quarter would have been $134.0 million, compared with $136.0 million in the 2008 fourth quarter (See Note c to the financial tables).
Preliminary net cash provided by operating activities on a GAAP basis for the fourth quarter of 2009 was $195.1 million, and $542.6 million in the 2009 full year. Fourth-quarter 2009 preliminary free cash flow on a non-GAAP basis was $138.0 million, bringing the total for full-year 2009 to $543.1 million (See Note d to the financial tables).
For the 2009 full year, revenues were $2,189.7 million, down 6 percent or 4 percent constant dollar, compared with revenues of $2,329.5 million in 2008. Net income for 2009 was $258.5 million and diluted earnings per share was $1.42 compared with net income of $311.3 million and EPS of $1.70 the year earlier. After adjusting for $159.5 million of charges in 2009 related to the previously announced restructuring, certain asset impairments, merger costs and certain other items, net income on a non-GAAP basis for the 2009 full year was $315.6 million compared with $311.7 million in 2008, and non-GAAP EPS was $1.73 compared with $1.70 a year earlier (See Note c to the financial tables).
Including the restructuring charge, certain asset impairments, merger costs and certain other items, operating income for full-year 2009 was $270.9 million, compared with $498.3 million in 2008. When adjusted for these items, operating income on a non-GAAP basis for 2009 would have been $430.4 million, compared with $511.5 million in 2008 (See Note c to the financial tables).
Balance Sheet Highlights
IMS’s cash and cash equivalents as of December 31, 2009 totaled $380.3 million, compared with $215.7 million on December 31, 2008. Total debt as of December 31, 2009 was $1,244.7 million, down from $1,404.2 million at year-end 2008.
Share Repurchase Program, Shares Outstanding
No IMS shares were repurchased during the fourth quarter of 2009. A total of 9.5 million shares remain authorized and available to repurchase under the current Board of Directors’ authorization.
The number of shares outstanding as of December 31, 2009 was approximately 182.7 million, compared to 182.4 million as of September 30, 2009.
Operating in more than 100 countries, IMS Health is the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries. With $2.2 billion in 2009 revenue and more than 50 years of industry experience, IMS offers leading-edge market intelligence products and services that are integral to clients’ day-to-day operations, including product and portfolio management capabilities; commercial effectiveness innovations; managed care and consumer health offerings; and consulting and services solutions that improve productivity and the delivery of quality healthcare worldwide. Additional information is available at http://www.imshealth.com.
This filing contains statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations contained in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results of the Company to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to (i) uncertainties associated with the proposed sale of the Company to an entity created by certain affiliates of TPG Capital, L.P. and the Canada Pension Plan Investment Board, including uncertainties relating to the expected timing of the completion of the transaction and the ability to complete the transaction, (ii) regulatory, legislative and enforcement initiatives, particularly in the areas of data access and utilization and tax, (iii) the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. dollar, and the ability to successfully hedge such risks, (iv) to the extent unforeseen cash needs arise, the ability to obtain financing on favorable terms, (v) to the extent the Company seeks growth through acquisitions and joint ventures, the ability to identify, consummate and integrate acquisitions and joint ventures on satisfactory terms, (vi) the ability to develop new or advanced technologies and systems for its businesses on time and on a cost effective basis, (vii) deterioration in economic conditions, particularly in the pharmaceutical, healthcare or other industries in which the Company’s customers operate, and (viii) uncertainties associated with completion of the Company’s restructuring plans and the impact of the restructuring activities on the Company’s business and financial results, including the timing of the activities and the associated costs and the ability to achieve projected cost savings. Additional information on factors that may affect the business and financial results of the Company can be found in the filings of the Company made from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.