The other day I was catching up on reading an animal rights discussion list in which someone had posted a notice that some small company or another with some tangential relationship to Huntingdon Life Sciences had severed ties with the company after animal rights extremists started harassing it. Some newbie activist was apparently thrilled at this news and sent a reply that, obviously, activists must be close to shutting down HLS and they just needed that last extra push to finish the job.
The reality is a bit different. At the end of October, HLS filed its third quarter report which showed fantastic results for the company,
Net revenues for the three months ended September 30, 2004 were $40.9 million, an increase of 24.9% on net revenues of $32.7 million for the three months ended September 30, 2003. Excluding the effect of exchange rate movements, the increase was 13.4%. UK net revenues increased by 30.0%; at constant exchange rates the increase was 15.2%. In the US, net revenues increased by 7.9%. Net new orders for the three months ended September 30, 2004 at constant exchange rates, were 31% above the same period last year. This growth in net new orders, which was particularly strong from the pharmaceutical industry, coming on top of the high level of orders taken in the first two quarters, have fed through into revenues in the quarter, but has been partly offset by a decline in non-pharmaceutical business.
. . .
Basic income per common share was 15 cents, compared to 3 cents last year on the weighted average common shares outstanding of 12,165,643 (2003: 11,932,338).
Earnings before interest, taxes, depreciation and amortization, and other income/(expense) (“EBITDA”) was $7.0 million for the third quarter of 2004, or 17.0% of revenues, compared with $3.9 million, or 11.9% of revenues for the same period in the prior year.
. . .
Net revenues for the nine months ended September 30, 2004 were $116.4 million, an increase of 19.7% on net revenues of $97.3 million for the nine months ended September 30, 2003. Excluding the effect of exchange rate movements, the increase was 8.6%. UK net revenues increased by 22.4%; at constant exchange rates the increase was 8.3%. In the US, net revenues increased by 9.9%. Net new orders for the nine months ended September 30, 2004 at constant exchange rates were 29% above the same period last year. This growth in net new orders, which was particularly strong from the pharmaceutical industry, has fed through into revenues in the nine months, but has been partly offset by a decline in non-pharmaceutical business.
While the activists seem to think they are still close to shutting down HLS after years of trying, shares in the company reached a high on November 24 of $9.75/share, after trading for less than $3 for most of the past two years since the company moved to trading in the United States.
So all of the animal rights harassment and terrorism can’t even bring down a small contract research company.
Source:
Form 10-Q for LIFE SCIENCES RESEARCH INC. October 29, 2004.