IMS Health reports fiscal 2009 third-quarter results

Oct 22 2009

IMS Health (NYSE: RX), the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries, today announced third-quarter 2009 revenue of $540.8 million, down 6 percent or 4 percent constant dollar, compared with $573.7 million in the year-earlier period. Net loss for the 2009 third quarter was $9.3 million and diluted earnings per share was $(0.05) compared with net income of $75.9 million and EPS of $0.41 in the third quarter of 2008. After adjusting for a $106.3 million charge related to the previously announced restructuring and certain other items, net income on a non-GAAP basis for the third quarter of 2009 was $72.3 million compared with $79.4 million in the year-earlier period, and non-GAAP EPS was $0.40 compared with $0.43 in the 2008 third quarter (See Note c to the financial tables).

“Our results for the third quarter reflect improved performance across all regions and solid execution by our teams,” said David R. Carlucci, IMS chairman and CEO. “We’re moving out on our plans to lower our cost structure and accelerate operational efficiencies, and we continue to generate excellent cash flow. In addition, our clients are seeing better market growth as indicated in our updated global pharmaceutical industry forecast, and we remain focused on addressing their priorities.”

Operating loss in the third quarter of 2009, including the restructuring charge, was $5.5 million compared with $124.0 million in operating income in the year-earlier period. When adjusted for the restructuring charge and a third-quarter 2008 charge related to the company’s Government Solutions subsidiary, operating income on a non-GAAP basis for this year’s third quarter would have been $100.8 million, compared with $127.7 million in the 2008 third quarter (See Note c to the financial tables).

Preliminary net cash provided by operating activities on a GAAP basis for the third quarter of 2009 was $153.2 million, and $347.5 million in the first nine months of 2009. Third-quarter 2009 preliminary free cash flow on a non-GAAP basis was $155.2 million, bringing the total in the first nine months of 2009 to $405.1 million (See Note d to the financial tables).

Year-to-Date Results

Revenues for the first nine months of 2009 were $1,590.6 million, down 9 percent or 5 percent constant dollar, compared with revenues of $1,748.6 million for the 2008 first nine months. For the first nine months of 2009, net income was $186.9 million and diluted earnings per share was $1.02 compared with net income of $212.8 million and EPS of $1.16 in the year-earlier period. After adjusting for the $106.3 million restructuring charge, certain asset impairments and other charges, certain tax benefits, the Government Solutions charge and phasing of tax benefits in 2008, and foreign exchange hedge-related items, net income on a non-GAAP basis for the first nine months of 2009 was $220.5 million compared with $221.1 million in the year-earlier period, and non-GAAP EPS was $1.21 compared with $1.20 in the 2008 first nine months (See Note c to the financial tables).

Including the restructuring charge, certain asset impairments and other charges, and the 2008 Government Solutions charge, operating income in the 2009 first nine months was $164.6 million, compared with $371.7 million in the year-earlier period. When adjusted for these items, operating income on a non-GAAP basis for the first nine months of 2009 would have been $296.4 million, compared with $375.5 million in the year-earlier period (See Note c to the financial tables).

Source IMS Health