) reported third-quarter 2013 operating net loss of 14 cents per
share, narrower than the Zacks Consensus Estimate of a loss of 23
cents. However, the results deteriorated from operating net loss
of 6 cents per share incurred in the year-ago quarter.
PDI Inc.'s bottom line was affected by lower margins derived from
the new business in its Sales Service segment.
Including loss from discontinued operations, PDI Inc. posted net
loss of 15 cents per share in the third quarter, widening from
net loss of 7 cents per share reported in the prior-year quarter.
Total revenues of PDI Inc. increased 8% year over year to $34.3
million. Top-line growth was driven by higher revenues from the
Sales Service segment. Results however lagged the Zacks Consensus
estimate of $38 million.
Gross profit of PDI Inc. declined 20.9% year over year to $4.7
million in the quarter. The decline came on the back of higher
cost of services (up 14.4% year over year). The gross profit
margin deteriorated 500 basis points (bps) to 13.7% during the
Total operating expenses of $6.7 million were almost in line with
the year-ago quarter. Several cost-saving initiatives by the
company helped to effectively control costs.
PDI Inc. reported adjusted loss before interest, tax,
depreciation and amortization of approximately $1.3 million
compared with adjusted earnings before interest, tax,
depreciation and amortization (EBITDA) of $0.2 million in the
Operating loss of PDI Inc. was nearly $2.0 million in the
quarter, widening substantially from $0.7 million reported a year
Revenues totaled $30.7 million during the quarter, up 22.8% year
over year. The increase is attributable to recent execution of
multi-year new contracts which were won during 2012 and in the
first half of 2013.
Competitive pricing pressures have trimmed gross profit by 2.4%
year over year to $4 million. Gross margin also declined 350 bps
Total revenues of $0.8 million dropped 64.4% year over year. The
decline was primarily caused by lower contract signings by Group
The segment could not report a positive gross profit in the
quarter. Gross loss incurred was $0.01 million compared to $0.4
million of gross profit earned in the prior-year quarter. The
plunge was owing to a declining top line. Gross margin slid to
negative of 1.3% in the quarter compared to 19.2% reported a year
Product Commercialization Services:
Total revenues declined 40% year over year to $2.7 million
primarily due to internalization of selective commercialization
activities of a customer since Oct 1, 2012.
Gross profit slid to $0.7 million from $1.4 million in the
prior-year quarter due to lower revenues. Gross margin also
declined 530 bps year over year to 24.5%.
PDI Inc. exited the quarter with cash and cash equivalents of
$49.6 million declining almost 6% from the 2012 end-level.
Total assets of PDI stood at $73.2 million as of Sep 30, sliding
6.7% from $78.4 million at 2012-end.
Total liabilities also declined 13.1% from 2012 end-level to
$37.2 million as of Sep 30, 2013.
Total shareholders' equity also inched up 1% from 2012-end level
to $36 million as of reported quarter-end.
Net cash flow from operations amounted to $0.2 million in the
first nine months of 2013, compared to cash used in operations of
$3.2 million in the year-ago period.
During the quarter, PDI Inc. inked a collaboration agreement deal
with privately held molecular diagnostics company in order to
commercialize the company's molecular diagnostics tests. Under
the terms of collaboration, PDI Inc. has paid an initial fee of
$1.5 million to molecular diagnostics and in turn has received an
option to purchase the company. The purchase price can go up to
$6 million subject to terms and conditions.
PDI Inc. also signed a U.S. collaboration agreement in order to
commercialize CardioPredict in October. A molecular diagnostic
test, CardioPredict is developed by Transgenomic.
PDI Inc. expects its top line to achieve a growth rate of 20% for
2013. The company also expects its gross profit of 2013 to hover
around 2012 level.
Performances by Other Business Service Providers
WNS (Holdings) Ltd.
) reported operating net earnings of 33 cents per share for
fiscal second-quarter 2014 ending Sep 30, 2013. Results surpassed
the Zacks Consensus Estimate of 28 cents and improved 37.5% year
Hertz Global Holdings Inc.
) posted third-quarter 2013 adjusted earnings per share of 73
cents, surpassing the Zacks Consensus Estimate by a couple of
cents. The quarterly earnings rose 15.9% from 63 cents per share
earned in the prior-year quarter.
Avis Budget Group Inc.
) posted third-quarter 2013 adjusted earnings per share of $1.48,
missing the Zacks Consensus Estimate of $1.55. However, the
quarterly earnings rose 1.4% from $1.46 per share earned in the
PDI Inc. presently carries a Zacks Rank #4 (Sell).
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
PDI INC (PDII): Free Stock Analysis Report
WNS HLDGS-ADR (WNS): Free Stock Analysis
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