Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,434.51 16.83 0.12%
TOPIX 1,169.33 2.78 0.24%
HANG SENG 22,749.87 53.86 0.24%

/C O R R E C T I O N -- WuXi PharmaTech (Cayman) Inc./



            /C O R R E C T I O N -- WuXi PharmaTech (Cayman) Inc./

PR Newswire

SHANGHAI, May 13, 2013

In the news release, "WuXi PharmaTech Announces First-Quarter 2013 Results,"
issued earlier today by WuXi PharmaTech (Cayman) Inc. over PR Newswire, we are
advised by the company that in the section titled "First-Quarter 2013 Non-GAAP
Results," the first sentence of the second, third, fourth and fifth
paragraphs, "First-quarter 2012" should read "First-quarter 2013"; also, in
the second table of the announcement, "UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME," "Other income (expenses), net" of "2013"
should read "3,057" rather than "2,840"; and the "% Change" of the same row
should read "11.6%" rather than "3.6%," as originally issued inadvertently.
The complete, corrected release follows:

  WuXi PharmaTech Announces First-Quarter 2013 Results

SHANGHAI, May 13, 2013 /PRNewswire/ -- WuXi PharmaTech (Cayman) Inc. (NYSE:
WX), a leading research and development outsourcing company serving the
pharmaceutical, biotechnology, and medical device industries, with operations
in China and the United States, today announced its financial results for the
first quarter of 2013. 

Highlights

  o Net Revenues Increased 11.7% Year Over Year to $131.9 Million
  o Laboratory Services Net Revenues Grew 12.5% Year Over Year to $97.5
    Million
  o China-Based Laboratory Services Net Revenues Increased 15.5% Year Over
    Year to $74.5 Million
  o U.S.-Based Laboratory Services Net Revenues Increased 3.8% Year Over Year
    to $23.0 Million
  o Manufacturing Services Net Revenues Grew 9.6% Year Over Year to $34.4
    Million
  o GAAP Diluted Earnings Per ADS Grew 7.2% Year Over Year to $0.30
  o Non-GAAP Diluted Earnings Per ADS Increased 7.5% Year Over Year to $0.35
  o Company Reconfirms Full-Year 2013 Guidance

Management Comment

"I am pleased to announce that WuXi began 2013 with a solid first quarter,"
said Dr. Ge Li, Chairman and Chief Executive Officer.  "We achieved 11.7%
year-over-year revenue growth, 7.2% GAAP diluted EPS growth, and 7.5% non-GAAP
diluted EPS growth in the quarter, exceeding our previous guidance in all
three measures.  This result gives us confidence to reconfirm our guidance for
full-year 2013.

"WuXi is succeeding on several fronts at once," Dr. Li continued.  "We are
achieving double-digit, broad-based revenue growth, while effectively
improving operating efficiency and controlling our costs to maintain stable
margins.  We are investing in capabilities and capacity to sustain strong
revenue and earnings growth for years to come.  In so doing, WuXi is making
progress toward the goal of building an open-access technology platform and
integrated services offerings that will enable anyone and any company to
discover and develop medicines efficiently and cost-effectively.  And we are
returning capital to shareholders through share purchases."

First-Quarter 2013 GAAP Results

First-quarter 2013 net revenues increased 11.7% year over year to $131.9
million.  Revenue growth in Laboratory Services of 12.5% was driven by our
comprehensive and integrated discovery and development services, primarily in
China.  Revenue growth of 9.6% in Manufacturing Services was driven by
increased demand for clinical-trial materials in our small molecule research
manufacturing business and process-chemistry services. We also began biologics
manufacturing in the first quarter.

First-quarter 2013 GAAP gross profit increased 13.2% year over year to $47.4
million due to 11.7% revenue growth, improved operating efficiency, and
effective cost control.  Gross margin increased year over year to 36.0% from
35.5%.  Gross margin in Laboratory Services increased year over year to 37.6%
from 37.1% mainly due to improved productivity, partially offset by the
effects of increasing labor costs in China, appreciation of the RMB versus the
U.S. dollar, investments in new businesses, and lower pricing in synthetic
chemistry services.  Gross margin in Manufacturing Services increased year
over year to 31.4% from 31.0%.

First-quarter 2013 GAAP operating income increased 11.4% year over year to
$23.0 million due to the 13.2% increase in gross profit, offset by a 14.8%
increase in operating expenses, particularly selling and marketing expenses
and research and development expenses.  Operating margin decreased slightly to
17.4% from 17.5% due to the increase in operating expenses, partially offset
by higher gross margin.

First-quarter 2013 GAAP net income increased 3.4% year over year to $21.7
million due to the 11.4% year-over-year increase in operating income, offset
by a 39.9% increase in income tax expense primarily due to the increase in
taxable income and the one-time benefit of reversal of an uncertain tax
provision in the first quarter of 2012.

First-quarter 2013 GAAP diluted earnings per ADS increased 7.2% to $0.30 due
to the 3.4% increase in net income and a lower number of outstanding ADSs as a
result of the company's purchase of about 5 million ADSs in 2012.
 First-quarter 2013 GAAP comprehensive income increased 8.8% year over year to
$23.3 million due to the increase in currency translation adjustments and the
3.4% increase in GAAP net income.

First-Quarter 2013 Non-GAAP Results

Non-GAAP financial results exclude the impact of share-based compensation
expenses and the amortization of acquired intangible assets and the associated
deferred tax impact. 

First-quarter 2013 non-GAAP gross profit increased 11.6% year over year to
$48.5 million, mainly due to the broad-based revenue growth discussed above.
 Non-GAAP gross margin was flat year-over-year at 36.8%, as the benefits of
improved productivity were fully offset by the effects of increasing labor
costs in China, appreciation of the RMB versus the U.S. dollar, investments in
new businesses, and lower pricing in synthetic chemistry services. 
             

First-quarter 2013 non-GAAP operating income increased 9.8% year over year to
$26.7 million, primarily due to the 11.6% increase in non-GAAP gross profit,
partially offset by higher operating expenses, particularly selling and
marketing expenses and research and development expenses.  Operating margin
decreased slightly to 20.2% from 20.6% due to this increase in operating
expenses.

First-quarter 2013 non-GAAP net income grew 3.7% year over year to $25.4
million due to the 9.8% increase in non-GAAP operating income, offset by
higher income tax expense primarily due to the increase in taxable income and
the reversal of an uncertain tax provision in the first quarter of 2012.

First-quarter 2013 non-GAAP diluted earnings per ADS grew 7.5% year over year
to $0.35 due to the 3.7% increase in net income and a lower number of
outstanding ADSs as a result of share buybacks in 2012.

Full-Year 2013 Financial Guidance

The company reconfirms the following full-year 2013 financial guidance:

  o Total net revenues of $565-575 million, or 13-15% year-over-year growth
  o GAAP diluted earnings per ADS of $1.26-$1.30
  o Non-GAAP diluted earnings per ADS of $1.49-$1.53
  o Capital expenditures of about $60 million

The company provides the following new full-year 2013 financial guidance:

  o GAAP and non-GAAP gross margin and operating margin comparable to those in
    2012

Second-Quarter 2013 Financial Guidance

The company provides the following second-quarter 2013 financial guidance:

  o Total net revenues of $138-140 million
  o GAAP diluted earnings per ADS of $0.34-$0.35
  o Non-GAAP diluted earnings per ADS of $0.39-$0.40

 

WUXI PHARMATECH (CAYMAN) INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, except ordinary share, ADS and par value data)
                                                        March 31, December 31,
                                                        2013      2012
Assets:
Current assets:
        Cash and cash equivalents                       104,899   54,133
        Restricted cash                                 2,964     423
        Short-term investments                          160,754   175,245
        Accounts receivable, net                        98,790    99,578
        Inventories                                     43,652    47,774
        Prepaid expenses and other current assets       27,326    18,807
                    Total current assets                438,385   395,960
Non-current assets:
        Goodwill                                        32,566    32,561
        Property, plant and equipment, net              258,992   264,381
        Long-term investments                           15,797    14,015
        Intangible assets, net                          7,595     7,268
        Land use rights                                 5,549     5,564
        Deferred tax assets                             3,045     3,037
        Other non-current assets                        15,726    19,749
                    Total non-current assets            339,270   346,575
                    Total assets                        777,655   742,535
Liabilities and equity:
Current liabilities:
        Short-term and current portion of long-term     62,283    59,089
debt
        Accounts payable                                20,952    21,808
        Accrued expenses                                16,937    27,411
        Deferred revenue                                20,581    17,052
        Advanced subsidies                              10,798    9,265
        Other taxes payable                             3,593     1,581
        Other current liabilities                       20,790    11,215
                    Total current liabilities           155,934   147,421
Non-current liabilities:
        Long-term debt, excluding current portion       5,643     5,697
        Advanced subsidies                              2,050     2,663
        Long-term payables                              758       732
        Other non-current liabilities                   7,659     7,799
                    Total non-current liabilities       16,110    16,891
                    Total liabilities                   172,044   164,312
Equity:
       Ordinary shares ($0.02 par value, 5,002,550,000

authorized,  561,121,002  and 566,540,378 issued and
                                                        11,331    11,222
outstanding as of December 31, 2012, and March 31,

2013, respectively)
        Additional paid-in capital                      335,662   331,714
        Retained earnings                               210,316   188,604
        Accumulated other comprehensive income          48,302    46,683
                    Total equity                        605,611   578,223
                    Total liabilities and equity        777,655   742,535

 

WUXI PHARMATECH (CAYMAN) INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars, except ADS data and per ADS data)
                                           Three Months Ended
                                           March 31,
                                                                 %
                                           2013       2012
                                                                 Change
Net revenues:
      Laboratory Services                  97,481     86,650     12.5%
      Manufacturing Services               34,384     31,378     9.6%
Total net revenues                         131,865    118,028    11.7%
Cost of revenues:
      Laboratory Services                  (60,875)   (54,488)   11.7%
      Manufacturing Services               (23,584)   (21,649)   8.9%
Total cost of revenues                     (84,459)   (76,137)   10.9%
Gross profit:
      Laboratory Services                  36,606     32,162     13.8%
      Manufacturing Services               10,800     9,729      11.0%
Total gross profit                         47,406     41,891     13.2%
Operating expenses:
      Selling and marketing expenses       (3,931)    (3,279)    19.9%
      General and administrative expenses  (18,208)   (16,162)   12.7%
      Research and development expenses    (2,270)    (1,813)    25.2%
Total operating expenses                   (24,409)   (21,254)   14.8%
Operating income                           22,997     20,637     11.4%
Other income (expenses), net:
Equity in earnings of joint ventures       (217)      -
Other income (expenses), net               3,057      2,740      11.6%
      Interest income (expenses), net      1,594      1,699      (6.2%)
Total other income (expenses), net         4,434      4,439      (0.1%)
Income before income taxes                 27,431     25,076     9.4%
Income tax expense                         (5,719)    (4,088)    39.9%
Net income                                 21,712     20,988     3.4%
Other comprehensive income:
Currency translation adjustments           1,620      454        256.8%
Comprehensive income                       23,332     21,442     8.8%
Basic net earnings per ADS                 0.31       0.29       5.8%
Diluted net earnings per ADS               0.30       0.28       7.2%
Weighted average ADS outstanding -
                                           70,368,616 71,978,914 (2.2%)
basic
Weighted average ADS outstanding -
                                           71,915,069 74,543,632 (3.5%)
diluted

 

WUXI PHARMATECH (CAYMAN) INC.
RECONCILIATION OF GAAP TO NON-GAAP
(in thousands of U.S. dollars, except ADS data and per ADS data)
                                                Three Months Ended
                                                March 31,
                                                                      %
                                                2013       2012
                                                                      Change
GAAP gross profit                               47,406     41,891     13.2%
GAAP gross margin                               36.0%      35.5%
Adjustments:
        Share-based compensation                1,038      1,066      (2.6%)
        Amortization of acquired intangible     98         525        (81.3%)
assets
Non-GAAP gross profit                           48,542     43,482     11.6%
Non-GAAP gross margin                           36.8%      36.8%
GAAP operating income                           22,997     20,637     11.4%
GAAP operating margin                           17.4%      17.5%
Adjustments:
        Share-based compensation                3,600      3,155      14.1%
        Amortization of acquired intangible     98         525        (81.3%)
assets
Non-GAAP operating income                       26,695     24,317     9.8%
Non-GAAP operating margin                       20.2%      20.6%
GAAP net income                                 21,712     20,988     3.4%
GAAP net margin                                 16.5%      17.8%
Adjustments:
        Share-based compensation                3,600      3,155      14.1%
        Amortization of acquired intangible     98         525        (81.3%)
assets
        Deferred tax impact related to
acquired                                        (29)       (195)      (85.1%)
          intangible assets
Non-GAAP net income                             25,381     24,473     3.7%
Non-GAAP net margin                             19.2%      20.7%
Income attributable to holders of ADS (Non-

GAAP):
Basic                                           25,381     24,473     3.7%
Diluted                                         25,381     24,473     3.7%
Basic earnings per ADS (Non-GAAP)               0.36       0.34       6.1%
Diluted earnings per ADS (Non-GAAP)             0.35       0.33       7.5%
Weighted average ADS outstanding                70,368,616 71,978,914 (2.2%)
   - basic (Non-GAAP)
Weighted average ADS outstanding                71,915,069 74,543,632 (3.5%)
  - diluted (Non-GAAP)

 

WUXI PHARMATECH (CAYMAN) INC.
REVENUE BREAKDOWN
(in thousands of U.S. dollars)
                                            Three Months Ended
                                            March 31,
                                                            %
                                            2013    2012
                                                            Change
Net revenues:
        China-based Laboratory Services     74,444  64,452  15.5%
        China-based Manufacturing Services  34,384  31,378  9.6%
                    Subtotal                108,828 95,830  13.6%
        U.S.-based Laboratory Services      23,037  22,198  3.8%
Total net revenues                          131,865 118,028 11.7%

 

Conference Call

WuXi PharmaTech senior management will host a conference call at 8:00 am (U.S.
Eastern) / 5:00 am (U.S. Pacific) / 8:00 pm (Beijing/Shanghai/Hong Kong) on
Tuesday, May 14, 2013, to discuss its first-quarter 2013 financial results and
future prospects.  The conference call may be accessed by calling:

United States:          1-866-519-4004
China (Landline):       800-819-0121
China (Mobile):         400-620-8038
Hong Kong:              800-930-346
United Kingdom:         0-808-234-6646
International:          +65-6723-9381
Conference ID:          35582613

A telephone replay will be available two hours after the call's completion at:

United States:          1-855-452-5696
China (Landline):       800-870-0205
China (Mobile):         400-120-0932
Hong Kong:              800-963-117
United Kingdom:         0-808-234-0072
International:          +61-2-8199-0299
Conference ID:          35582613

A live webcast of the conference call and replay will be available on the
investor relations page of WuXi PharmaTech's website at
http://www.wuxiapptec.com.

About WuXi PharmaTech

WuXi PharmaTech is a leading pharmaceutical, biotechnology, and medical device
R&D outsourcing company, with operations in China and the United States.  As a
research-driven and customer-focused company, WuXi PharmaTech provides a broad
and integrated portfolio of laboratory and manufacturing services throughout
the drug and medical device R&D process.  WuXi PharmaTech's services are
designed to assist its global partners in shortening the cycle and lowering
the cost of drug and medical device R&D.  WuXi PharmaTech's operating
subsidiaries are known as WuXi AppTec.  For more information, please visit:
http://www.wuxiapptec.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not historical facts, but instead are predictions about future
events. Examples of forward-looking statements in this press release include
statements about our second-quarter and full-year 2013 guidance and our goal
of building an open-access technology platform. Although we believe that our
predictions are reasonable, future events are inherently uncertain and our
forward-looking statements may turn out to be incorrect. Our forward-looking
statements are subject to risks relating to, among other things, our ability
to control our costs and sustain revenue growth, to realize the anticipated
benefits of our investments, to protect our clients' intellectual property and
to compete effectively. Additional information about these and other relevant
risks can be found in our Annual Report on Form 20-F for the year ended
December 31, 2012.  The forward-looking statements in this press release speak
only on the date that they are made, and we assume no obligation to update any
forward-looking statements except as required by law.

Use of Non-GAAP and Pro-Forma Financial Measures 

We have provided the first-quarter 2012 and 2013 gross profit, gross margin,
operating income, operating margin, net income, net margin, and earnings per
ADS on a non-GAAP basis, which excludes share-based compensation expenses, the
amortization and deferred tax impact of acquired intangible assets.  We
believe both management and investors benefit from referring to these non-GAAP
financial measures in assessing our financial performance and liquidity and
when planning and forecasting future periods.  These non-GAAP operating
measures are useful for understanding and assessing underlying business
performance and operating trends.  We expect to continue to provide net income
and earnings per ADS on a non-GAAP basis using a consistent method on a
quarterly basis.  You should not view non-GAAP results on a stand-alone basis
or as a substitute for results under GAAP, or as being comparable to results
reported or forecasted by other companies, and should refer to the
reconciliation of GAAP measures to non-GAAP measures for the indicated periods
attached hereto.

Statement Regarding Unaudited Financial Information

The financial information set forth above is unaudited and subject to
adjustments.  Adjustments to the financial statements may be identified when
our annual financial statements are prepared and audit work is performed for
the yearend audit, which could result in significant differences from this
unaudited financial information.

For more information, please contact:

WuXi PharmaTech (Cayman) Inc.

Ronald Aldridge (for investors)
Director of Investor Relations 
Tel:   +1-201-585-2048
Email: ir@wuxiapptec.com

Aaron Shi (for the media)
WuXi PharmaTech (Cayman) Inc.
Tel:   +86-21-5046-4362
Email: pr@wuxiapptec.com

SOURCE WuXi PharmaTech (Cayman) Inc.

Website: http://www.wuxiapptec.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement