BOSTON, Jan. 28, 2015 /PRNewswire/ --


    --  Gross new business wins of $964.4 million, up 15.3% year-over-year; net
        book-to-bill ratio of 1.54; backlog at $5.1 billion
    --  2.5% growth in consolidated service revenue to $499.3 million; 4.0%
        constant currency revenue growth
    --  Gross margin improvements in all three business segments year-over-year
    --  GAAP and adjusted operating margin of 10.6%
    --  GAAP diluted earnings per share of $0.70 grew 42.9%; adjusted diluted
        earnings per share of $0.69 grew 35.3%

PAREXEL International Corporation (NASDAQ: PRXL) today reported financial results for the second quarter of Fiscal Year 2015, which ended on December 31, 2014.

In commenting on the results of the quarter, Mr. Josef H. von Rickenbach, PAREXEL's Chairman and Chief Executive Officer, stated, "In the second quarter, we continued to make progress toward achieving our operational and financial goals. Despite headwinds to revenue from foreign currency exchange rate movements, we expanded our operating margin, achieved robust growth in earnings per share, and generated solid cash flow from operations. We also delivered a quarter of healthy new business wins, which were broad-based across our businesses and client segments. The quarter's strong new business wins, from such a diverse client base, is evidence of the wide appeal of our portfolio of products and services."

Mr. von Rickenbach continued, "As we look out to Calendar Year 2015, we anticipate accelerating revenue growth. In order to support this growth, we need to hire somewhat ahead of the expected revenue curve. The current mix of business in our backlog has resulted in a continued disproportionate number of projects in the start-up stages. In combination with the adverse impact of recent foreign exchange movements on revenue, we expect these dynamics to have a dampening effect on our revenue projections in the short term, but then lead to rapid expansion as the backlog matures. All of this has been factored into our forward-looking guidance. We believe that our strategy and position in the industry are sound, and that attractive opportunities continue to exist in the marketplace."

Second Quarter Fiscal Year 2015 Results
For the three months ended December 31, 2014 PAREXEL's consolidated service revenue increased by 2.5% to $499.3 million compared with $487.1 million in the prior year period. Revenue grew 4.0% on a constant currency basis, excluding the negative impact of foreign currency exchange rate movements of $7.4 million. Operating income as reported under Generally Accepted Accounting Principles (GAAP) totaled $52.8 million, or 10.6% of service revenue, in the second quarter of Fiscal Year 2015, as compared with $46.7 million, or 9.6% of service revenue, in the comparable quarter of the prior year. GAAP net income for the quarter totaled $38.8 million, or $0.70 per diluted share, compared with GAAP net income of $28.3 million, or $0.49 per diluted share for the quarter ended December 31, 2013. GAAP diluted earnings per share grew 42.9% year-over-year.

The shift in the geographic mix of expected pre-tax income during the second quarter allowed the Company to record a tax rate that was lower than expected. The Company has moved into the execution phase of its new tax strategy.

The financial results of the December quarter in the current and prior year period each included items outside of the Company's normal operations, as detailed in the financial charts within this press release. Adjusted operating income in the second quarter of Fiscal Year 2015 was $53.0 million, or 10.6% of service revenue. Adjusted operating income in the second quarter of Fiscal Year 2014 was $47.7 million, or 9.8% of service revenue. Adjusted net income was $38.4 million, or $0.69 per diluted share in the quarter ended December 31, 2014, and was $29.1 million, or $0.51 per diluted share in the quarter ended December 31, 2013. Adjusted diluted earnings per share grew 35.3% year-over-year.

On a segment basis, service revenue for the second quarter of Fiscal Year 2015 was $377.4 million in Clinical Research Services (CRS), $56.0 million in PAREXEL Consulting (PC), and $65.8 million in PAREXEL Informatics (PI).

Six Month Fiscal Year 2015 Results

For the six months ended December 31, 2014, consolidated service revenue was $991.0 million versus $936.4 million in the prior year period, an increase of 5.8%. GAAP operating income for the current six-month period was $106.4 million, or 10.7% of service revenue, compared with GAAP operating income of $88.5 million, or 9.5% of service revenue in the prior year period. GAAP net income for the six months ended December 31, 2014 was $75.9 million, or $1.36 per diluted share, compared with GAAP net income of $54.3 million, or $0.95 per diluted share, in the prior year period.

Excluding the impact of special items in both six month periods, as detailed in the attached financial charts, adjusted operating income was $105.8 million or 10.7% of consolidated service revenue for the six months ended on December 31, 2014, compared with $89.7 million or 9.6% of consolidated service revenue for the six months ended on December 31, 2013. Adjusted net income for the six months ended December 31, 2014 was $74.7 million, or $1.34 per diluted share, compared with $55.0 million or $0.96 per diluted share in the comparable prior year six month period.

New Business and Backlog
Backlog at the end of December 2014 was $5.1 billion, an increase of 6.0% year-over-year. The reported backlog included gross new business wins in the second quarter of $964.4 million, cancellations of $197.2 million, and a negative impact from foreign currency exchange rates of $47.2 million. The net book-to-bill ratio was 1.54 in the quarter, and the trailing twelve month book-to-bill ratio was 1.19.

Forward-looking Guidance
The Company issued forward-looking guidance for the third quarter (ending March 31, 2015) and for Fiscal Year 2015 in its entirety as detailed in the chart below. The guidance takes into account a number of factors, including the results of the second quarter, recent foreign currency exchange rates, tax rates, and the Company's updated overall outlook.



                         Guidance Issued 1/28/15 Guidance Issued 10/29/14
                         ----------------------- ------------------------

    Q3 FY 2015 Revenue       $507 - $521 million                      N/A

    Q3 FY 2015 GAAP EPS            $0.62 - $0.68                      N/A


    FY 2015 Revenue      $2.040 - $2.070 billion  $2.070 - $2.110 billion

    FY 2015 GAAP EPS               $2.68 - $2.86            $2.58 - $2.77
    ----------------               -------------            -------------

    FY 2015 Non-GAAP EPS           $2.65 - $2.83            $2.56 - $2.75
    --------------------           -------------            -------------

Additional Information
In addition to the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. The Company believes that presenting the non-GAAP financial measures contained in this press release assists investors and others in gaining a better understanding of its core operating results and future prospects, especially when comparing such results to previous periods or forecasted guidance, because such measures exclude items that are outside of the Company's normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. Management uses non-GAAP financial measures, in addition to the measures prepared in accordance with GAAP, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods and to the performance of its competitors for the same reasons stated above. Such measures are also used by management in its financial and operating decision-making. Non-GAAP financial measures should not be considered superior to or a substitute for the Company's results of operations prepared in accordance with GAAP.

A conference call to discuss PAREXEL's Second Quarter Fiscal Year 2015 earnings, business, and financial outlook will begin at 10:00 a.m. ET on Thursday, January 29, 2015 and will be broadcast live over the internet via webcast. The webcast may be accessed in the "IR Calendar" portion of the main page of the Investors section of the Company's website at www.PAREXEL.com. Users should follow the instructions provided to assure that the necessary audio applications are downloaded and installed. A replay of this webcast will be archived on the website approximately two hours after the call and will continue to be accessible for approximately one year following the live event. To participate via telephone, dial +1 (408) 940-3886 and ask to join the PAREXEL International Second Quarter Fiscal Year 2015 earnings conference call.

A presentation of Second Quarter Fiscal Year 2015 results, as well as certain trended financial information, may be found in the Investors section of the Company's website under the "Financial Information" section.

About PAREXEL International

PAREXEL International Corporation is a leading global biopharmaceutical services organization, providing a broad range of expertise-based contract research, consulting, medical communications, and technology solutions and services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. PAREXEL Informatics, Inc. provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 81 locations in 51 countries around the world, and has approximately 16,530 employees. For more information about PAREXEL International visit www.PAREXEL.com.

PAREXEL and PAREXEL Informatics are trademarks or registered trademarks of PAREXEL International Corporation or its affiliates.

This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," "estimates," "projects," "will," "would," "could," "should," "targets," and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results may differ materially from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company's recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions, and to integrate newly acquired businesses including the acquisition of ClinIntel Limited, or enter into new lines of business; the impact on the Company's business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of foreign currency exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 as filed with the Securities and Exchange Commission on November 3, 2014, which "Risk Factors" discussion is incorporated by reference in this press release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release.

CONTACTS: Ingo Bank, Senior Vice President and Chief Financial Officer
Jill Baker, Corporate Vice President of Investor Relations
+1-781-434-4118



                                                                                              PAREXEL International Corporation

                                                                                        Consolidated Condensed Statement of Operations

                                                                                                         (Unaudited)



                                                          Three Months Ended                                     Six Months Ended

    (in thousands, except per share data)               December 31, 2014                                     December 31, 2013                   December 31, 2014             December 31, 2013
                                                        -----------------                                     -----------------                   -----------------             -----------------


    Service revenue                                                            $499,269                                                  $487,145                      $990,965                    $936,390

    Reimbursement revenue                                                        75,776                                                    87,091                       157,769                     166,910
                                                                                 ------                                                    ------                       -------                     -------

      Total revenue                                                             575,045                                                   574,236                     1,148,734                   1,103,300


    Costs and expenses:

    Direct costs                                                                327,321                                                   324,507                       646,140                     627,701

    Reimbursable out-of-pocket expenses                                        75,776                                                    87,091                       157,769                     166,910

    Selling, general and administrative                                        98,795                                                    95,528                       197,708                     180,440

    Depreciation                                                                 16,812                                                    16,584                        33,710                      32,046

    Amortization                                                                  3,557                                                     3,862                         7,043                       7,658
                                                                                  -----                                                     -----                         -----                       -----

      Total costs and expenses                                                  522,261                                                   527,572                     1,042,370                   1,014,755


    Income from operations                                                       52,784                                                    46,664                       106,364                      88,545


    Other income (expense), net                                                   1,067                                                   (3,707)                        2,708                     (6,672)


    Income before income taxes                                                   53,851                                                    42,957                       109,072                      81,873


    Provision for income taxes                                                   15,091                                                    14,628                        33,170                      27,590

    Effective tax rate                                                            28.0%                                                    34.1%                        30.4%                      33.7%


    Net income                                                                  $38,760                                                   $28,329                       $75,902                     $54,283
                                                                                =======                                                   =======                       =======                     =======


    Earnings per common share:
    --------------------------

      Basic                                                                       $0.71                                                     $0.50                         $1.39                       $0.96

      Diluted                                                                     $0.70                                                     $0.49                         $1.36                       $0.95


    Shares used in computing earnings per common share:
    ---------------------------------------------------

      Basic                                                                      54,823                                                    56,517                        54,781                      56,386

      Diluted                                                                    55,709                                                    57,395                        55,736                      57,395



    Balance Sheet Information                                Preliminary
    -------------------------

                                                          December 31, 2014                                     December 31, 2013                     June 30, 2013
                                                          -----------------                                     -----------------                     -------------

    Billed accounts receivable, net                                            $434,996                                                  $503,578                      $497,109

    Unbilled accounts receivable, net                                           214,292                                                   234,740                       225,514

    Deferred revenue                                                          (448,819)                                                (461,029)                    (466,964)

    Net receivables                                                            $200,469                                                  $277,289                      $255,659
                                                                               ========                                                  ========                      ========


    Cash and marketable securities                                             $301,930                                                  $314,294                      $283,812

    Working capital                                                            $391,419                                                  $433,461                      $350,900

    Total assets                                                             $1,769,228                                                $1,877,789                    $1,834,000

    Short-term borrowings                                                        $2,500                                                   $13,968                       $12,501

    Long-term debt                                                             $347,500                                                  $372,500                      $337,500

    Stockholders' equity                                                       $589,268                                                  $627,874                      $577,681



                                                                                                                                                                                                        PAREXEL International Corporation

                                                                                                                                                                                                        Reconciliation of Non-GAAP Measures

                                                                                                                                                                                                               Certain Line Items

                                                                                                                                                                                                                   (Unaudited)



                                                                                                                                   Three Months Ended                                                                           Three Months Ended

    (in thousands, except per share data)                                                                                         December 31, 2014                                                                            December 31, 2013
                                                                                                                                  -----------------                                                                            -----------------

                                                                                                                                 GAAP Measure                                           Adjustments                                             Non-GAAP          GAAP Measure          Adjustments                 Non-GAAP
                                                                                                                                                                                                                                                 Measure                                                             Measure
                                                                                                                                                                                                                                                 -------                                                             -------


    Selling, general and administrative                                                                                                              $98,795                                             $(215)   (a)                                    $98,580               $95,528              $(1,071)  (a)             $94,457


    Income from operations                                                                                                                           $52,784                                               $215                                           $52,999               $46,664                $1,071                   $47,735


    Other income (expense), net                                                                                                                       $1,067                                               $137    (b)                                     $1,204              $(3,707)          $         -                 $(3,707)


    Income before income taxes                                                                                                                       $53,851                                               $352                                           $54,203               $42,957                $1,071                   $44,028


    Provision for income taxes                                                                                                                       $15,091                                               $751    (c)                                    $15,842               $14,628                  $270   (c)             $14,898


    Net income                                                                                                                                       $38,760                                             $(399)                                          $38,361               $28,329                  $801                   $29,130


    Diluted earnings per common share                                                                                                                  $0.70                                            $(0.01)                                            $0.69                 $0.49                 $0.02                     $0.51


    Effective tax rate                                                                                                                                 28.0%                                                                                              29.2%                34.1%                                         33.8%



    (a) Impact of net adjustments for legal settlements and acquisition and integration related charges, including the revaluation of earn-out contingent consideration liability associated with certain acquisitions.

    (b) Accelerated amortization of deferred financing fees related to credit facility modification

    (c) Tax effect on non-GAAP adjustments



                                                                                                                                                                                                     PAREXEL International Corporation

                                                                                                                                                                                                     Reconciliation of Non-GAAP Measures

                                                                                                                                                                                                            Certain Line Items

                                                                                                                                                                                                                (Unaudited)



                                                                                                                                 Six Months Ended                                                                           Six Months Ended

    (in thousands, except per share data)                                                                                      December 31, 2014                                                                         December 31, 2013
                                                                                                                               -----------------                                                                         -----------------

                                                                                                                              GAAP Measure                                        Adjustments                                              Non-GAAP           GAAP Measure          Adjustments               Non-GAAP
                                                                                                                                                                                                                                           Measure                                                            Measure
                                                                                                                                                                                                                                           -------                                                            -------


    Selling, general and administrative                                                                                                       $197,708                                               $558    (a)                                     $198,266              $180,440             $(1,151) (a)            $179,289


    Income from operations                                                                                                                    $106,364                                             $(558)                                           $105,806               $88,545               $1,151                  $89,696


    Other income (expense), net                                                                                                                 $2,708                                               $137    (b)                                       $2,845              $(6,672)          $        -                $(6,672)


    Income before income taxes                                                                                                                $109,072                                             $(421)                                           $108,651               $81,873               $1,151                  $83,024


    Provision for income taxes                                                                                                                 $33,170                                               $797    (c)                                      $33,967               $27,590                 $474  (c)             $28,064


    Net income                                                                                                                                 $75,902                                           $(1,218)                                            $74,684               $54,283                 $677                  $54,960


    Diluted earnings per common share                                                                                                            $1.36                                            $(0.02)                                              $1.34                 $0.95                $0.01                    $0.96


    Effective tax rate                                                                                                                           30.4%                                                                                                31.3%                33.7%                                       33.8%



    (a) Impact of net adjustments for legal settlements and acquisition and integration related charges, including the revaluation of earn-out contingent consideration liability associated with certain acquisitions.

    (b) Accelerated amortization of deferred financing fees related to credit facility modification

    (c) Tax effect on non-GAAP adjustments



                                                                                                                   PAREXEL International Corporation

                                                  Segment Information

                                                      (Unaudited)



                                                                                                                                                 Three Months Ended          Three Months Ended

     (in thousands)                                                                                                                               December 31, 2014          December 31, 2013
                                                                                                                                                  -----------------          -----------------


     Clinical Research Services (CRS)


     Service revenue                                                                                                                                                $377,404                    $363,867

     % of total service revenue                                                                                                                                        75.6%                      74.7%

     Gross profit                                                                                                                                                   $113,368                    $108,636

     Gross margin % of service revenue                                                                                                                                 30.0%                      29.9%


     PAREXEL Consulting & Medical Communications

       Services (PCMS)


     Service revenue                                                                                                                                                 $56,030                     $59,273 (a)

     % of total service revenue                                                                                                                                        11.2%                      12.2%

     Gross profit                                                                                                                                                    $25,341                     $24,093 (a)

     Gross margin % of service revenue                                                                                                                                 45.2%                      40.6%



     Perceptive Informatics (PI)


     Service revenue                                                                                                                                                 $65,835                     $64,005 (a)

     % of total service revenue                                                                                                                                        13.2%                      13.1%

     Gross profit                                                                                                                                                    $33,239                     $29,909 (a)

     Gross margin % of service revenue                                                                                                                                 50.5%                      46.7%



     Total service revenue                                                                                                                                          $499,269                    $487,145

     Total gross profit                                                                                                                                             $171,948                    $162,638

     Gross margin % of service revenue                                                                                                                                 34.4%                      33.4%



     Quarterly Supplemental Financial Data
     -------------------------------------


     Service revenue                                                                                                                                                $499,269                    $487,145

     Reimbursement revenue                                                                                                                                            75,776                      87,091

     Investigator fees                                                                                                                                               121,061                     133,212

     Gross revenue                                                                                                                                                  $696,106                    $707,448
                                                                                                                                                                    ========                    ========


     Days sales outstanding                                                                                                                                               26                          36


     Capital expenditures                                                                                                                                            $11,466                     $19,828


      (a) Effective July 1, 2014, the operating results of PAREXEL Regulatory Outsourcing Services are included in
      the PC segment. This service line offering was previously reported within the PI segment. For the three
      months ended December 31, 2014 and 2013, we disclosed the reportable segment on this basis and the prior
      period was retroactively restated to reflect this presentation change.



                                                                                                             PAREXEL International Corporation

                                                  Segment Information

                                                      (Unaudited)



                                                                                                                                               Six Months Ended            Six Months Ended

     (in thousands)                                                                                                                            December 31, 2014          December 31, 2013
                                                                                                                                               -----------------          -----------------


     Clinical Research Services (CRS)


     Service revenue                                                                                                                                             $747,215                   $696,459

     % of total service revenue                                                                                                                                     75.4%                     74.4%

     Gross profit                                                                                                                                                $229,850                   $203,040

     Gross margin % of service revenue                                                                                                                              30.8%                     29.2%


     PAREXEL Consulting & Medical Communications

       Services (PCMS)


     Service revenue                                                                                                                                             $112,425                   $116,221 (a)

     % of total service revenue                                                                                                                                     11.3%                     12.4%

     Gross profit                                                                                                                                                 $50,310                    $47,591 (a)

     Gross margin % of service revenue                                                                                                                              44.7%                     40.9%



     Perceptive Informatics (PI)


     Service revenue                                                                                                                                             $131,325                   $123,710 (a)

     % of total service revenue                                                                                                                                     13.3%                     13.2%

     Gross profit                                                                                                                                                 $64,665                    $58,058 (a)

     Gross margin % of service revenue                                                                                                                              49.2%                     46.9%



     Total service revenue                                                                                                                                       $990,965                   $936,390

     Total gross profit                                                                                                                                          $344,825                   $308,689

     Gross margin % of service revenue                                                                                                                              34.8%                     33.0%



      (a) Effective July 1, 2014, the operating results of PAREXEL Regulatory Outsourcing Services are
      included in the PC segment. This service line offering was previously reported within the PI segment.
      For the six months ended December 31, 2014 and 2013, we disclosed the reportable segment on this basis
      and the prior period was retroactively restated to reflect this presentation change.

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SOURCE PAREXEL International Corporation