Quintiles, in its first earnings release since its successful initial public offering of stock in May, reported results Thursday that beat Wall Street estimates.
The Durham pharmaceutical services company reported adjusted earnings per share of 50 cents for the second quarter, compared with 47 cents per share in the second quarter of 2012. Adjusted net income for the quarter was $62.9 million, up 12.6 percent from the same period a year ago.
The consensus among Wall Street analysts who cover the company was earnings per adjusted share of 44 cents and adjusted net income of $51.7 million.
Excluding currency fluctuations, Quintiles service revenues increased 2.2 percent to $944 million, just above the $942 million forecast by Wall Street analysts.
“We have maintained the momentum following our initial public offering in May, which we believe demonstrates the confidence our customers have in us as well as the depth and diversity of our customer base,” CEO Tim Pike said in a statement.
Quintiles reported that it secured $1 billion in new business during the second quarter, up 13 percent from the same period in 2012.
The company went public in May at $40 a share. The stock closed Thursday at $46.29, up $1.44.
About 45 percent of the nearly $950 million in total proceeds from the IPO went to the company’s major shareholders, including founder and chairman Dennis Gillings; Quintiles itself netted $489.8 million after fees and expenses.
Quintiles reported Thursday that $358.9 million of its IPO proceeds went to pay down debt, and $25 million went to terminate a management agreement with Gillings and four private equity firms that are Quintiles’ other major shareholders.
The company had just over $2 billion in debt at the end of the second quarter, down from $2.36 billion at the end of last year.
Quintiles is a contract research organization that helps pharmaceutical and biotechnology companies test experimental drugs. It also assists those companies with selling and marketing prescription medicines once they win regulatory approval. The company has 27,000 employees worldwide, including more than 2,000 in the Triangle.
Quintiles instigated a corporate restructuring plan earlier this year that is expected to result in the elimination of 400 positions worldwide. The company said in a regulatory filing that it took a $4.7 million charge as a result of the restructuring through the first six months of the year. The plan is expected to save the company $15 million to $20 million in annual costs.
This is Quintiles’ second stint as a public company.
Founded in 1982, the company was publicly traded from 1994 until 2003, when Gillings – then the company’s CEO – led a leveraged buyout that took the business private.