PDI, Inc.'s Q4 Loss Narrower Than Expected, Gives View - Analyst Blog
PDI, Inc. PDII posted fourth-quarter 2014 operating loss of 27 cents per share, narrower than the Zacks Consensus Estimate loss of 50 cents but wider than the loss of 14 cents in the year-ago quarter. Lower revenues led to the year-over-year downside.
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Including acquisition-related amortization expenses, asset impairment charges and loss from discontinued operations, net loss of PDI, Inc. came in at 50 cents per share, doubling over the year-ago loss.
Behind the Headlines
Net revenues of PDI, Inc. were $28.9 million in the quarter, down 19.4% year over year. Revenues were almost in line with the Zacks Consensus Estimate.
Total operating expense increased to $13.2 million from $7.0 million in the year-ago quarter mainly due to investment spending for the implementation of PDI, Inc.’s molecular diagnostic strategic initiative.
Operating loss was $9.4 million which compared unfavorably with a loss of $2.1 million in the prior-year quarter.
Full-Year Highlights
PDI, Inc.’s 2014 operating loss of 60 cents per share was also wider than the year-ago loss of 11 cents per share.
Including extra-ordinary items, net loss of PDI, Inc. for 2014 was $1.08 per share, wider than the year-ago loss of 31 cents.
Net revenues of PDI, Inc. for 2014 were $119.9 million, down 18.2% year over year.
Financial Update
As of Dec 31, 2014, PDI, Inc.’s cash and cash equivalents were $23.1 million, decreasing from $45.6 million as of Dec 31, 2013.
Total assets of PDI, Inc. were valued at $115.9 million as of Dec 31, 2014, higher than $69.1 million at 2013-end. Total stockholders' equity came in at $20.1 million as of Dec 31, 2014 compared with $32.5 million at 2013-end.
Cash used in operating activities by PDI, Inc. was $16.4 million in the fourth quarter of 2014, higher than $3.5 million used in the year-ago quarter.
Looking Forward
PDI, Inc. expects total net revenues for 2015 to be in the range of $133–$140 million. This includes Commercial Services revenues of $121–$125 million, reflecting year-over-year growth of 2–5%, and Interpace Diagnostics revenue (comprising 10% of total net revenues).
Management expects adjusted operating loss to between $17 million and $19 million. Gross-margin is projected at 18%, higher than 15.5% in 2014.
Performance of Other Business Service Providers
Cardtronics Inc. CATM, SouFun Holdings Ltd. SFUN and SPS Commerce Inc.‘s SPSC bottom lines surpassed their respective Zacks Consensus Estimate in their last reported quarter.
Zacks Rank
PDI Inc. presently carries a Zacks Rank #3 (Hold).
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