PS (formerly Cross Shore Acquisition Corp) Announces Six Months Results, ended June 30, 2007
ReSearch Pharmaceutical Services, Inc., (formerly Cross Shore Acquisition Corporation) a leading provider of integrated clinical development outsourcing solutions to the bio-pharmaceutical industry, is pleased to announce its interim results for the six months ended 30 June 2007. This statement includes separate results for the former ReSearch Pharmaceutical Services, Inc. (RPS) and for the former Cross Shore Acquisition Corporation (Cross Shore) prior to their merger.
A. Former RPS
Highlights of Results
Operating results for the first half of 2007 demonstrate strong growth in revenues and profitability reflecting continued industry demand for the innovative, integrated clinical development solutions and services that RPS provides.
- Net revenues for the first half of 2007 of $54.9 million grew $16.4 million or 42.7% as compared to the same period in 2006.
- EBITDA for the first half of 2007 of $3.5 million grew $1.8 million or 106% as compared to the same period in 2006. As a percentage of net revenues, EBITDA grew from 4.4% in 2006 to 6.4% in 2007.
- Net income before the provision for income taxes for the first half of 2007 of $2.3 million grew $1.6 million or 233% as compared to the same period in 2006.
- Net income for the first half of 2007 of $1.4 million grew $0.8 million or 110% as compared to the same period in 2006.
- The Company continues to exhibit strong organic growth fueled by new business awards from existing and new customers and continued expansion of existing customer business. On August 8, 2007 the Company announced the signing of a new contract with a major pharmaceutical company that will generate approximately $40 million in revenue over the next three years.
- As of June 30, 2007, the company’s total staff count exceeded 1,000 employees, a milestone that is reflective of the growing demand for the Company’s unique integrated outsourcing services.
- On August 30, 2007, Cross Shore Acquisition Corporation (Cross Shore) completed its reverse takeover of ReSearch Pharmaceutical Services, Inc. Effective with the completion of this transaction, Cross Shore Acquisition Corporation changed its name to ReSearch Pharmaceutical Services, Inc. After the completion of this transaction, the Company has approximately $20 million in cash plus $15 million of unused bank line availability.
Commenting on the results, Daniel M. Perlman, Chairman and CEO of the new RPS said:
“We are very pleased with our results for the first half of 2007. The bio/pharmaceutical industry is under continued pressure to accelerate the development and marketing of new drugs, while reducing operating costs and improving financial performance. We believe that the RPS approach of providing innovative, integrated clinical development solutions that leverage the existing infrastructure and investments of bio/pharmaceutical companies addresses these challenges and provide the opportunity to significantly reduce overall costs while improving the quality and speed of drug development. Our strong financial performance and continued growth reflect the expanding acceptance of our business model by the bio/pharmaceutical industry.”
“A key element of our continued growth is our strategy for expanding our business model outside of the Americas to meet the expanding global needs of the bio/pharmaceutical industry. Utilizing the funds generated from the reverse merger with Cross Shore, we are now in a position to execute this strategy and expand our service offering to a larger market.”
B. Former Cross Shore Acquisition Corporation
- Cross Shore was incorporated in January 2006 as a development stage enterprise with the objective of acquiring one or more operating companies engaged in the delivery of business services.
- On 26 April 2007, Cross Shore announced that it had signed a merger agreement with RPS. The merger was completed on 30 August 2007.
- On 31st August 2007 Cross Shore’s listing on AIM was cancelled and the new RPS was admitted to trading.
For further information please contact:
ReSearch Pharmaceutical Services, Inc. +1 215 540 0700
Dan Perlman, CEO
Steven Bell, Chief Financial Officer
Nominated Adviser and UK Broker:
Arbuthnot Securities Limited
James Steel / Guy Blakeney +44 20 7012 2100