MDS Provides 2008 Financial Guidance at Annual Investor Day
21 Febbraio 2008 - 1:00PM
PR Newswire (US)
TORONTO, Feb. 21 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS;
NYSE: MDZ), a leading provider of products and services to the
global life sciences markets will hold its 2008 Annual Investor Day
in New York today beginning at 9:00 am EST and announce its
guidance for full year 2008. MDS's financial guidance for 2008
builds off a successful 2007 when MDS completed its transition to a
global life sciences company, and drove a 17% increase in net
revenues and 88% growth in adjusted EBITDA. "Our 2008 earnings
guidance demonstrates our continued confidence in our ability to
drive enhanced performance in our top and bottom line" said Stephen
P. DeFalco, President and CEO. "Our continued focus on
globalization, innovation and operational excellence to serve our
customers will be important drivers in creating shareholder value
at MDS in 2008 and beyond." 2008 Guidance ($US Millions, except per
share amounts)
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2007 Actual Results 2008 Guidance
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Total Revenues $1,210 $1,350 - $1,410
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Net Revenues $1,119 $1,250 - $1,300
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Adjusted EBITDA $145 $175 - $185
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Adjusted EPS $0.34 $0.37 - $0.43
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Income (loss) from continuing operations ($33) $55 - $65
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Basic EPS ($0.25) $0.45 - $0.53
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Capital Expenditures $71 $65 - $75
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Effective Tax Rate 41% 0-10%
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The underlying assumptions used in preparing MDS 2008 guidance are
outlined below. MDS expects net revenue growth for 2008 to be in
the range of 12%-16% based on: the net impact of the Molecular
Devices acquisition, the divestiture of the MDS Nordion external
beam therapy and self-contained irradiator product lines, and
increased revenues across all three business units due to expected
market growth and improved sales execution. Total revenue is a GAAP
measure that includes a forecast for reimbursement revenues, which
are then excluded from the calculation of net revenues. MDS expects
adjusted EBITDA to grow at 21%-28% and to be in the range of
$175-$185 million driven by: productivity improvements,
particularly in MDS Pharma Services, revenue growth across MDS, and
the full year impact of the acquisition of Molecular Devices. For
2008, the adjusting items used in calculating adjusted EBITDA
include the loss on the sale of MDS Nordion's divested product
lines and certain other items. Adjusted earnings per share
(adjusted EPS) for 2008 are expected to be in the range of
$0.37-$0.43. In addition to the adjusting items outlined above,
adjusted EPS also excludes an expected 2008 gain on deferred taxes
associated with future Canadian income tax rates. Income from
continuing operations and basic EPS for 2008 primarily reflects
adjusted EBITDA growth and the income tax gain described above.
Capital expenditures in 2008 are expected to remain level with
2007. The expected effective tax rate in 2008 is in the range of
0-10% reflecting an expected gain associated with the reduction of
future Canadian income tax rates, the use of foreign tax loss
carry-forwards and research and development investment tax credits.
For information on MDS's 2007 actual results, please refer to the
2007 Annual Report available on the MDS website at
http://www.mdsinc.com/. Webcast Details MDS's Investor Day will be
webcast live beginning at 9am EST today, February 21, 2008. To
access the live webcast, please visit the MDS website at
http://www.mdsinc.com/. The audio replay of the webcast and the
presentation slides will be archived in the "For Investors" section
of the MDS website 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, the degree of market penetration of its
products, the ability to secure a reliable supply of raw materials,
the strength of the Canadian and US economies, the impact of the
movement of the US 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 US securities regulatory authorities from time to
time, including MDS's quarterly and annual MD&A, annual
information form, and annual report on Form40-F for the fiscal year
ended October 31,2007 filed with the Securities & Exchange
Commission. Also note that all financial data is now shown on a US
GAAP basis. MDS converted to US GAAP reporting with the filing of
its 2007 annual report and financial statements on January 29,
2008. Use of Non-GAAP Financial Measures The use of non-GAAP
measures including terms such as net revenues, adjusted EBITDA, and
adjusted EPS 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. Where MDS has provided 2008 guidance using non-GAAP
measures, these are reconciled to a corresponding measure based on
GAAP and reconciliations are available on the MDS website. About
MDS MDS is a global life sciences company that provides
market-leading products and services that our customers need for
the development of drugs and the 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: Kim Lee, Director, Investor
Relations, MDS Inc., (416) 675-6777 x 32606, ; Lesley Beneteau,
Manager, External Communications, MDS Inc., (416) 675-6777 x 32265,
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