-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EAwY3cMoQCkMWF+8ryq5uCDvmBjdK5iJw0WvJo1Fo2lDGE5J7n5R3+irox2bC0Df SUI2yp+9+pwazZP3WkFy7w== 0000950152-97-005355.txt : 19970728 0000950152-97-005355.hdr.sgml : 19970728 ACCESSION NUMBER: 0000950152-97-005355 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970724 ITEM INFORMATION: Other events FILED AS OF DATE: 19970725 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLLABORATIVE CLINICAL RESEARCH INC CENTRAL INDEX KEY: 0000886530 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731] IRS NUMBER: 341685364 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20699 FILM NUMBER: 97645161 BUSINESS ADDRESS: STREET 1: 20600 CHAGRIN BLVD STREET 2: STE 1050 CITY: CLEVELAND STATE: OH ZIP: 44122 BUSINESS PHONE: 2164919930 MAIL ADDRESS: STREET 1: 20600 CHAGRIN BLVD STREET 2: STE 1050 CITY: CLEVELAND STATE: OH ZIP: 44122 8-K 1 COLLABORATIVE CLINICAL RESEARCH, INC. FORM 8-K 1 Securities and Exchange Commission Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report July 24, 1997 (Date of earliest event reported) COLLABORATIVE CLINICAL RESEARCH, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter)
Ohio (000-20699) 34-1685364 - ----------------------------------- ---------------------- ------------------------------ (State or other jurisdiction of (Commission File No.) (I.R.S. Employer incorporation) Identification No.)
20600 Chagrin Boulevard, Cleveland, Ohio 44122 - ----------------------------------------------------------- ---------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (216) 491-9930 -------------- Page 1 of 3 Pages Exhibit Index Appears on Page 3 2 Item 5. Other Events - ---------------------- On July 24, 1997 Collaborative Clinical Research, Inc., reported financial results for the three-month and the six-month periods ended June 30, 1997. For the three-month period ended June 30, 1997, Collaborative reported a net loss of ($486,496) or ($0.08) per share. For the six-month period ended June 30, 1997, Collaborative reported a net loss of ($904,882) or ($0.14) per share. The Company's backlog currently stands at $24.6 million, compared $22.5 million at December 31, 1996 and $20.3 million one year ago. The Company's press release announcing its results for the three-month and the six-month periods ended June 30, 1997, including the financial information set forth therein, is attached as exhibit 99 to this report, and is incorporated herein by reference. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. COLLABORATIVE CLINICAL RESEARCH, INC. By: /s/ Terry C. Black ---------------------------------------------------- Terry C. Black Vice President of Finance, Chief Financial Officer, Treasurer, and Assistant Secretary Date: July 25, 1997 Page 2 of 3 Pages 3 EXHIBIT INDEX ------------- EXHIBIT NO. DESCRIPTION PAGE ----------- ----------- ---- 99 Press Release Issued by the Company on July 24, 1997. Page 3 of 3 Pages EX-99 2 EXHIBIT 99 1 FOR IMMEDIATE RELEASE: COLLABORATIVE CLINICAL RESEARCH, INC. ANNOUNCES SECOND QUARTER AND SIX MONTH RESULTS Cleveland, Ohio, July 24, 1997--Collaborative Clinical Research, Inc., (NASDAQ:CCLR) today reported financial results for the second quarter and first half of 1997. For the second quarter of 1997, Collaborative reported revenues of $4,459,000 and a net loss of $(486,000), or $(0.08) per share. These financial results are down in comparison to revenues of $6,842,000 and net income of $288,000, or $0.08 per share, for the second quarter of 1996. For the first six months of 1997, revenues were $9,037,000 and the net loss was $(905,000), or $(0.14) per share, after recognizing expenses of $300,000, or approximately $0.05 per share, related to the terminated negotiations for Collaborative to acquire U-Gene Research BV. These financial results are down in comparison to revenues of $12,144,000 and net income of $344,000, or $0.10 per share, for the first six months of 1996. Backlog currently stands at $24.6 million, compared to backlog of $20.3 million one year ago. The Company's backlog is composed of a number of large contracts, each with a different term and duration. As is customary, these contracts are subject to modification and/or possible cancellation. Therefore, the amount of backlog is not necessarily indicative of the Company's future quarterly or annual revenues. Dr. Jeffrey A. Green, President and Chief Executive Officer of Collaborative, stated, "We are disappointed in reporting a loss. The revenue decline in both the second quarter and the first half of 1997 compared to the comparable periods of last year reflects the fact that Collaborative's backlog remains below our goal. We added a senior level sales person during the second quarter, and we are looking to add more sales people. Based on current business levels, we do not anticipate that Collaborative will report a profit in either the third or the fourth quarters of 1997. In addition to the steps we are taking to address our backlog and performance issues, we have retained a financial advisor to assist us with our merger and acquisition activities, and with strategic joint venture alliances intended to further build our full-service capabilities." "We remain dedicated to rebuilding our upward momentum," Dr. Green concluded. "Our network based access model is increasingly being validated across the industry and we are working to address quality and performance issues within our Network. DataTRAKSM will assist in this effort by bringing a new level of near-real time quality assessment to clinical research. The DataTRAK Process offers the potential of a true competitive advantage in this industry and is being recognized by Sponsors as possessing the capability to accelerate drug development timelines. The roll out of DataTRAK is continuing and will require ongoing financial support. In the second quarter, our dedication to DataTRAK included the investment of one million dollars as well as expenses incurred of approximately $0.02 per share. The first revenue trial utilizing DataTRAK is expected to begin in September with a major pharmaceutical company." 2 Collaborative Clinical Research, Inc., manages a network comprised of over 540 affiliated multitherapeutic clinical research sites providing access to over 3,700 principal investigators in the United States, Canada and the United Kingdom. In addition, through the GFI and Walker acquisitions, the Company operates five research facilities, conducts Phase I through Phase IV clinical research and provides clinical reference laboratory and Institutional Review Board services. DataTRAK is the product of a joint venture between Collaborative and IBM Global Services, to develop and market an electronic data collection and project management system for use in clinical trials. Except for the historical financial information contained in this press release, the statements made in this release are forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include the degree of the Company's success in obtaining new contracts, the size and duration of clinical trials in which the Company and members of its network of affiliate sites participate and the timing of sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials. In addition, the Company's success depends on the various strategic initiatives that it has undertaken, all of which are based on assumptions made by the Company concerning trends in the clinical research market and the health care industry. CONTACT: Philip A. Stark Vice President, Corporate Development Collaborative Clinical Research, Inc. 216/491-9930 3 COLLABORATIVE CLINICAL RESEARCH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA
June 30, 1997 December 31, 1996 ------------- ----------------- Cash and investments $34,452,052 $34,683,196 Accounts receivable, net 5,805,192 8,420,539 Goodwill, net 7,923,982 8,131,875 Other 3,827,825 2,450,983 ----------- ----------- Total assets $52,009,051 $53,686,593 =========== =========== Accounts payable and other current liabilities $ 3,188,902 $ 4,138,805 Shareholders' equity 48,820,149 49,547,788 ----------- ----------- Total liabilities and shareholders' equity $52,009,051 $53,686,593 =========== ===========
COLLABORATIVE CLINICAL RESEARCH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, ----------------------------------- 1997 1996 ---- ---- Revenue $ 4,458,869 $ 6,842,221 Direct costs 3,218,481 4,830,545 ----------- ----------- Gross profit 1,240,388 2,011,676 Selling, general and administrative expenses 2,112,284 1,520,903 Depreciation and amortization 242,212 143,755 ----------- ----------- Income (loss) from operations (1,114,108) 347,018 Other income (expense): Interest income 522,167 86,624 Interest expense ---- (57,349) Income (loss) from joint venture 6,449 7,219 ----------- ----------- Income (loss) before tax provision (benefit) (585,492) 383,512 Tax provision (benefit) (98,996) 95,800 ----------- ----------- Net income (loss) ($ 486,496) $ 287,712 =========== =========== Net income (loss) per share ($ 0.08) $ 0.08 =========== =========== Weighted average common shares outstanding 6,384,362 3,770,558 =========== ===========
4 COLLABORATIVE CLINICAL RESEARCH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, --------------------------------- 1997 1996 ---- ---- Revenue $ 9,037,153 $ 12,144,437 Direct costs 6,389,288 8,843,152 ------------ ------------ Gross profit 2,647,865 3,301,285 Selling, general and administrative expenses 4,125,486 2,613,516 Depreciation and amortization 468,405 243,193 ------------ ------------ Income (loss) from operations (1,946,026) 444,576 Other income (expense): Interest income 989,936 104,517 Interest expense -- (93,616) Income (loss) from joint venture (47,788) 2,700 ------------ ------------ Income (loss) before tax provision (benefit) (1,003,878) 458,177 Tax provision (benefit) (98,996) 114,500 ------------ ------------ Net income (loss) ($ 904,882) $ 343,677 ============ ============ Net income (loss) per share ($ 0.14) $ 0.10 ============ ============ Weighted average common shares outstanding 6,363,466 3,433,942 ============ ============
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