Healthcare market data provider IMS Health Inc. (RX) said Tuesday its profit for the fourth quarter declined 27% over last year, hurt by impairment charges as well as higher expenses.
Net income attributable to the company was $71.5 million or $0.39 per share for the fourth quarter, down from $98.5 million or $0.54 per share in the prior year quarter.
The result for the latest quarter included charges of $27.7 million, related to the restructuring, certain asset impairments, merger costs and certain other items.
Excluding items, non-GAAP net income grew to $95.1 million or $0.52 per share from $90.6 million or $0.50 per share in the year-ago quarter. On average, 7 analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Operating income slipped to $106.3 million from $126.6 million in the previous year quarter. On a non-GAAP basis, operating income declined to $134.0 million from $136.0 million a year earlier.
Fourth quarter revenue increased 3% to $599.2 million from $580.9 million in the same quarter last year. On a constant dollar basis, revenue was down 3%. Six analysts had a consensus revenue estimate of $565.57 million for the fourth quarter.
Segment-wise, Information and Analytics revenue rose 5% to $452.9 million, but Consulting and Services revenue dropped 2% to $146.3 million a year earlier.
Total operating expenses for the quarter grew to $492.9 million from $454.4 million in the prior year quarter.
As of December 31, 2009, IMS's cash and cash equivalents was $380.3 million, down from $215.7 million on December 31, 2008.
During the quarter, the company did not repurchase any shares. A total of 9.5 million shares remain authorized and available to repurchase under the current board's authorization.
Last November, IMS Health agreed to be acquired by investment funds managed by TPG Capital and the CPP Investment Board in a transaction worth $5.2 billion, including the assumption of debt. The parties expect the merger to be completed by the end of the first quarter of 2010.
Under the deal, which was approved by the IMS board, IMS shareholders will receive $22.00 cash per IMS share, which represents a premium of about 50% over the closing share price on October 16, the last trading day prior to public speculation that IMS was considering its strategic alternatives.
For the full year 2009, IMS reported net income of $258.5 million or $1.42 per share, compared to $311.3 million or $1.70 per share in the previous year.
On a non-GAAP basis, net income was $315.6 million or $1.73 per share, compared to $311.7 million or $1.70 per share in the prior year.
Annual revenues declined 6% to $2.19 billion from $2.33 billion in the year-ago. On a constant dollar basis, revenues fell 4% over last year.
Analysts expected the company to report earnings of $1.61 per share on revenue of $2.16 billion for the year 2009.
IMS closed Tuesday's regular trading session at $21.87, up 7 cents on a volume of 4.62 million shares.
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