MDS Provides Update on Fiscal 2008 Performance
10 Dicembre 2008 - 1:00PM
PR Newswire (US)
Plans Non-Cash Write-Down for MAPLE Asset and MDS Pharma Services
Goodwill TORONTO, Dec. 10 /PRNewswire-FirstCall/ -- MDS Inc. (TSX:
MDS; NYSE: MDZ), a leading provider of products and services to the
global life-sciences markets, today provided an update for fiscal
2008 performance. Based on preliminary information, MDS expects to
report year-end fiscal 2008 net revenue in the range of $1,210
million to $1,220 million and adjusted EBITDA in the range of $148
million to $154 million. MDS's fiscal 2008 net revenue guidance
range was $1,230 million to $1,250 million and its adjusted EBITDA
guidance range was $160 million to $170 million. The change in
forecasted performance is due primarily to foreign exchange
fluctuations, which include an embedded derivative charge, and soft
demand in some segments of the Company's North American customer
base. MDS also announced that it will incur a non-cash after-tax
charge of approximately $260 million to write off the net book
value of its MAPLE nuclear-reactor project asset. The Company also
expects to take a non-cash write-down of MDS Pharma Services
goodwill in the range of $270 million to $370 million, as a result
of the decline in overall contract research organization stock
market valuations, current economic uncertainty and the delay in
profit recovery. These non-cash charges will result in a net loss
below the Company's 2008 guidance range. As a result of these
non-cash charges, certain debt covenants will restrict MDS from
repurchasing shares for the foreseeable future. "These two
write-downs will have no impact on our cash position and our
day-to-day operations at MDS Nordion and MDS Pharma Services," said
Stephen P. DeFalco, President and Chief Executive
Officer, MDS Inc. "With respect to the MAPLE asset, we have
determined that we are required to take a full write-down for MAPLE
under applicable accounting rules, given the difficulty of
projecting a specific outcome for any dispute of this nature. We
continue to believe we have a strong case against AECL and the
Government of Canada relating to the MAPLE agreement." Fourth
Quarter 2008 Financial Results - Conference-Call Details MDS will
provide additional details on this announcement in conjunction with
the Company's release of its 2008 fourth-quarter financial results
on Wednesday, December 17, 2008. MDS will host a conference call
for analysts to discuss fourth quarter and fiscal 2008 results on
Wednesday, December 17, 2008 at 9:30 a.m. EST with Stephen P.
DeFalco, President and Chief Executive Officer and Douglas Prince,
Executive Vice-President, Finance and Chief Financial Officer.
Interested parties may access the live Webcast of the conference
call from the MDS website at http://www.mdsinc.com/. Following the
call, an audio archive and the presentation slides will be
available on the Website in the "For Investors" section under
"Webcasts & Presentations". Caution Concerning Forward-Looking
Statements This document contains forward-looking statements. Some
forward-looking statements may be identified by words like
"expects", "anticipates", "plans", "intends", "indicates", or
similar expressions. The statements are not a guarantee of future
performance and are inherently subject to risks and uncertainties.
MDS's actual results could differ materially from those expressed
in the forward-looking statements due to these risks and a number
of other factors, including, but not limited to, successful
implementation of structural changes, including restructuring plans
and acquisitions, technical or manufacturing or distribution
issues, the competitive environment for MDS's products and
services, the degree of market penetration of its products and
services, the ability to secure a reliable supply of raw materials,
the impact of our clients' exercising rights to cancel certain
contracts, the strength of the Canadian and U.S. economies, the
impact of the movement of the U.S. dollar relative to other
currencies, particularly the Canadian dollar and the euro,
uncertainties associated with critical accounting assumptions and
estimates, and other factors set forth in reports and other
documents filed by MDS with Canadian and U.S. securities regulatory
authorities from time to time, including MDS's quarterly and annual
MD&A, annual information form, and annual report on Form 40-F
for the fiscal year ended October 31, 2007 filed with the
Securities & Exchange Commission. Use of Non-GAAP Financial
Measures The use of non-GAAP measures including terms such as net
revenue, adjusted EBITDA, adjusted EPS, new orders and backlog are
used to explain the operating performance of the Company. These
terms are not defined by GAAP and MDS's use may vary from that of
other companies. MDS uses certain non-GAAP measures so that
investors and analysts have a better understanding of the
significant events and transactions that have had an impact on
results or may have an impact on MDS's financial outlook. MDS
provides a description of these non-GAAP measures and a
reconciliation of these non-GAAP measures for 2007 actual results
to GAAP financial results in the MD&A of its 2007 annual
report. About MDS Inc. MDS Inc. (TSX: MDS; NYSE: MDZ) is a global
life-sciences company that provides market-leading products and
services that our customers need for the development of drugs and
diagnosis and treatment of disease. We are a leading global
provider of pharmaceutical contract research, medical isotopes for
molecular imaging, radiotherapeutics, and analytical instruments.
MDS has more than 5,500 highly skilled people in 29 countries. Find
out more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24
hours a day. DATASOURCE: MDS Inc. CONTACT: MEDIA: Janet Ko, (416)
213-4167, ; INVESTORS: Kim Lee, (416) 213-4721,
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