June 9, 2004
Featured Company:
Symbol: SFCC (Nasdaq)
Price: 24.18
Sector/Industry: Healthcare
Did you know that pharmaceutical companies pay over $800-Million just to develop a new drug? That's well over three-quarters of a Billion dollars to deliver just one single product to consumers. At that massive price, it's no wonder that drug companies want to get their medicine to market as fast as possible!
It can take several years to recover the huge amount invested, and even longer to begin making a profit. These delays have a major impact on every drug company's bottom line. The time required becomes even more significant when the limited life span for each patent is factored in.
Drug development is a business where speed matters. Everyone wants to be first, and there is always a race against the clock. All new drugs have to be approved by the FDA - Federal Drug Administration.
Although the wheels of government turn slowly, drug companies want approval quickly so they will have the longest possible time to take advantage of their patents. Pharmaceutical firms have recently discovered they can quickly accelerate drug development by outsourcing different parts of the process.
Strengths
Specializing In Speed . . .
This is where SFBC International is at its very best. A relatively young firm, SFCC is very good - and fast - at conducting FDA drug trials. This something that the drug companies themselves often struggle with.
While the mountain of red tape required by the FDA presents a major headache to pharmaceutical firms, SFCC turned the problem into opportunity by becoming extremely efficient in this highly regulated area.
When it comes to fast-tracking drug approvals, SFCC is the best. As a result, drug giants such as Pfizer and Schering-Plough contract with SFBC International when they need to roll out drugs like Zoloft, Celebrex, or Claritin - three of SFCC's well-known success stories.
A Highly Profitable Niche . . .
SFBC International specializes in early-stage clinical trials referred to as "Phase I" and "Phase II." In fact, SFCC was founded in 1984 as a Phase I research unit. SFCC prefers the Phase I and II niche, which makes up close to 80% of their business. They also conduct Phase III trials too, amounting to around 20% of the company's revenue.
The early-stage trials take less time and involve a smaller number of people than later clinical tests. For example, Phase I clinical trials - which determine if the drug is safe - take anywhere from five to 30 days to conduct, and average around 40 people. Phase II trials - which take somewhat longer and involve more people - are designed to determine how effective the drug is.
Customer Base Is Large, and Business Is Growing . . .
Currently over 500 large pharmaceuticals, generic drug makers, and biotech firms use SFCC services. The average size contract for a Phase I trial is around $400,000 - up 12.5% over last year.
In some cases SFCC can finish early stage clinical trials in four weeks, trials that would normally take a small drug company six months to a year to complete. SFBC International has several high capacity, state of the art clinical trial facilities in the US and Canada. Even more importantly, the company quickly and routinely assembles unique groups of test patients for the trials at these locations.
A Major Advantage . . .
It is SFCC's skill at recruiting patients that puts the company way ahead of its competition. Finding the right people is the biggest obstacle that drug companies face when preparing to test a new drug. According to R&D Magazine, over 70% of all clinical trials fail because they aren't able to recruit enough participants.
This is where SFCC excels. One reason they are so good at recruiting is because they treat their trail patients extremely well. Although the pay is about average for this type of work - $25 to $150 a day based on the particular type of test - the subjects tend to return for more trials because many actually enjoy the experience.
Revenues In An Expanding Market . . .
Life-science market researcher Kalorama Information reports that two years ago over $11 Billion in Research and Development expenses were outsourced to other firms - approximately 18% of the total amount spent on pharmaceutical R&D. That number is expected to reach $27 Billion within the next three years - 28% of the drug industry's projected R&D budget.
SFCC's sales for the first quarter topped $33.5 million - a whopping 79% increase over the same period last year. Company management attributes the growth to the successful integration of corporate acquisitions and comprehensive training of the firm's marketing and sales forces.
Sales Growth Through Acquisition . . .
SFBC International's biggest acquisition to date is Anapharm, a Canadian company that provides lab services and Phase I trials for generic drug companies. The deal was struck a little over two years ago, and now sales from Anapharm now make up 45% of SFCC's total revenue.
Organic Sales Growth . . .
SFCC's sales and marketing teams are not only trained to evaluate a client's request for a specific trial, they are also taught to suggest additional complimentary services whenever possible.
SFBC International offers a large variety of "extras" to help their clients quickly get the result they are after. For example - designing the studies and writing the protocols, submitting regulatory forms to the appropriate government agencies, analyzing and managing clinical data, geno-typing patients, and over 400 validated lab tests available from a team of 200 full time staff members.
In addition, the company is also well positioned to benefit from the FDA's ever-increasing requirement for more participants, more procedures, and more information - all of which increases the amount of revenue SFCC receives for every clinical trial.
Technical Analysis
SFCC's solid fundamentals are reflected in the stock's rising price action. On April 27th shares rocketed to all-time highs on nearly 10-times the average daily volume. Those gains were retraced when SFCC experienced a downward spike on May 20th, when the companied executed a 3-for-2 stock split. This brief post- split sell-off helped to shake out "weaker" hands, while more committed investors and long-term institutional holders stayed the course. The upward-pointing MACD and daily stochastics point toward a potential retest of the relative highs.
DAILY CHART -SFBC International (Symbol: SFCC)
The weekly oscillators look bullish, indicating that SFCC has enough momentum to rally into breakout territory. Of particular interest is the sideways trading that occurred during the first quarter of 2004. This consolidation phase, which was accompanied by declining volume, is a classic "accumulation" pattern that allows institutions to take long positions at what they perceive to be relatively low prices. In terms of support, note how shares recently found support at the 19.1% retracement from the all-time lows to all-time highs. That level is bolstered by the 13-week and 22-week moving averages - the latter of which provided support during the May 20th sell-off.
WEEKLY CHART: -SFBC International (Symbol: SFCC)
Stepping back to look at the "big picture," the monthly chart shows a long-term uptrend that's been in place since the middle of 2002. SFCC has ascended in a wide channel, with dips to the 13-PMA finding buyers on numerous occasions over the past two years. That moving average matches up nicely with the rising support trend. On a breakout to new all-time highs, we'd be looking for short covering and an acceleration of the uptrend as shares move out of the ascending channel.
MONTHLY CHART - -SFBC International (Symbol: SFCC)
Special Report Summary
SFBC International Inc. is one of a select group of small companies that knows how to provide extremely important services to large companies - and they do it better and faster than the large companies themselves. Relatively few investors have even heard of SFCC despite the firm's important role in bringing several well-known drugs to market.
However, this anonymous stock is starting to attract quiet a bit of attention - especially from institutional buyers and mutual funds. During the past twelve months the number of funds buying and holding stock in SFCC has increased from 28 to 41, bringing the total number of institutions owning shares to 157.
This rapid growth in sponsorship isn't surprising. SFCC's strong price performance reflects its ability to generate big profits and tremendous shareholder value. In fact, when it comes to making a profit, SFCC ranks in the top ten percent of all publicly traded companies. Because of this high level of performance, we expect even more institutional buyers to buy shares in SFCC as word of the company's outstanding financial results continues to spread.
This company's relatively small size and young age has kept it out of the spotlight, but the obscurity certainly won't last for long. It's just a matter of time until investors take notice of SFCC's huge potential. In our opinion, SFBC International is definitely worth investigating as you contemplate adding new positions to your portfolio. We consider it a Buy.
RightLine Special Reports
Pro RightLine Corp
Round Rock, Texas
PH: 800-737-4518
Company Information
For a closer look at SFBC International's fundamental information, please reference the company's Financial Reports and Ratios included below. You'll also find short biographies of key executives:
Corporate Address
SFBC International Inc
11190 Biscayne Boulevard
Miami, FL 33181
Phone: 305-895-0304
Fax: 305-895-8616Website: http://www.sfbci.com
Investor Contact Info
Ana Lopez Investor relations
Phone: (305) 895-0304
Fax: (305) 895-8616
E-mail: ir@sfbci.com
Current Market Information - SFBC International, Inc.
Recent Price as of June 9, 2004: $24.18
52-Week High: $27.64
52-Week Low: $10.67
YTD Price Percent Change: 32%
Beta: 1.30
Short data: Shares Short: 256K
Short % of float: 2.32% (as of 05-10-04)Shares Outstanding: 15.02 million
Float: 11.40 million
Institutional Holdings
Number of Institutions Holding Shares: 157
Percent of Shares Outstanding Held by Institutions: 52.98%
Shares held by Institutions: 7,948,059
Top Institutional Holders:
Holder Shares %Out Value* Reported Mellon Bank, N.A. 773,676 5.14 $23,117,437 31-Mar-04 Wellington Management Co., Llp 644,700 4.29 $19,263,635 31-Mar-04 Winslow Capital Management 630,900 4.19 $18,851,291 31-Mar-04 Ironbridge Cap'l Management, LLC 607,581 4.04 $18,154,519 31-Mar-04 Legg Mason Inc. 561,660 3.73 $16,782,400 31-Mar-04 Lord Abbett & Co 429,564 2.86 $12,835,371 31-Mar-04 Barclays Bank Plc 324,596 2.16 $9,698,928 31-Mar-04 Dalton,Greiner,Hartman,Maher&Co 320,043 2.13 $9,562,884 31-Mar-04 Beekman Capital Management Ltd. 306,750 2.04 $9,165,689 31-Mar-04 Invesco Institutional N.A., Inc. 294,150 1.96 $8,789,201 31-Mar-04
Top Mutual Fund Holders:
Holder Shares %Out Value* Reported Mellon Bank, N.A. 773,676 5.14 $23,117,437 31-Mar-04 Dreyfus Founders Discovery Fund 617,228 4.10 $16,393,576 31-Dec-03 Invesco Small Co. Growth Fund 384,150 2.55 $11,774,197 31-Jan-04 Invesco Stock Funds-Value Eq Fd 384,150 2.55 $11,774,197 31-Jan-04 Lord Abbett Devlp'g Growth Fund 274,200 1.82 $8,404,230 31-Jan-04 Frontegra Ironbridge SmCap Fund 212,862 1.41 $6,360,316 31-Mar-04 Bjurman, Barry Micro-CapGrwth Fd 198,005 1.32 $5,629,678 30-Sep-03 Valic Co I-Small Cap Fd 183,300 1.22 $4,749,303 30-Nov-03 Bridgeway Fds Inc-Ultra Sm Co Fd 179,291 1.19 $5,357,214 31-Mar-04 Oberweis Emerging Growth Port 150,000 1.00 $4,490,999 29-Feb-04 Marshall Small-Cap Growth Fund 112,500 0.75 $3,361,499 31-Mar-04
*Definitions for items in the "Institutional Holdings" section
Shares Held by Institutions - The actual number of common stock shares held by all reporting institutions.
This figure is the sum of all the shares held by institutions filing 13-Fs and all non-13-F reporting funds.
Percent of Shares Outstanding Held by Institutions - The percentage of common stock held by all reporting institutions on the corresponding Institutional Holdings Date.
Institutions Holding Shares - The number of all reporting institutions that are holding shares of this stock.
Earnings and Sales Growth Rates for 1, 3 and 5 Years:
GROWTH RATES: 1 Year 3 Years 5 Years Sales Growth: 60.42% 74.06% 77.65% Earnings Growth: 31.81% 22.31% 46.06%
Note:
On April 26, 2004 SFBC International, Inc. announced, based upon its current
business trends and activities, that it has raised its fiscal 2004 guidance
to approximately $131 - $138 million in revenues with earnings per share
of $1.52 - $1.62, excluding potential acquisitions. According to Reuters
Research, analysts expected the Company to earn $1.56 per share on revenues
of $126.2 million in the same period. The Company added that it is seeing
strong demand throughout all areas of business in the U.S., Canada and
Europe from its existing client base of global and specialty pharmaceutical,
biotechnology and generic drug companies.
Financials
Financial Snapshot
SFBC International Inc.
11190 Biscayne Boulevard
Miami, FL 33181
Year End 2003
Revenues & Earnings Total Revenues (millions) 103.9 Basic Normalized EPS 0.986 per share Diluted Normalized EPS 0.924 per share Important Ratios - Valuation Price to Earnings: 25.32 Projected P/E for Next Year 19.40 Price to Sales 2.90 Price to Cash Flow 18.30 Growth Ratio 1.30 Debt to Equity 9.90 Price to Book 2.36 Book Value Per Share 10.52 - Efficiency Return on Equity 12.45% Return on Invested Capital 11.80% Return on Assets 10.52% Asset Turnover 0.91 Receivable Turnover 3.96 - Profitability Gross Profit Margin 43.20% Net Profit Margin 11.26% - Liquidity Current Ratio 4.50 Sales (Revenue) 1.89 Earnings 2.04 Price to Book Ratio 0.20
Income Statement Summary
DETAILED ANNUAL INCOME STATEMENT
(Thousands of U.S. Dollars)
12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS
ENDING ENDING ENDING ENDING
12/31/00 12/31/01 12/31/02 12/31/03
Net Sales 19,694 31,471 64,740 103,853
Total Revenue 19,694 31,471 64,740 103,853
Cost of Sales 11,997 18,151 36,728 59,309
General & Admin. 4,252 7,556 17,867 29,965
Total Expenses 16,249 25,707 54,595 89,274
Interest Income 123 359 447 272
Interest Expense -175 -27 -282 -427
Income Before Taxes 3,393 6,096 10,310 14,424
Income Taxes 1,342 2,276 2,442 2,842
Income After Taxes 2,051 3,820 7,868 11,582
Inc Applic to Com Shares 2,051 3,820 7,868 11,582
Pri/Bas EPS Ex. XOrd 0.523 0.625 0.745 0.986
Pri/Bas EPS In. XOrd 0.523 0.625 0.745 0.986
Primary/Basic Avg Sh 3,921.00 6,109.94 10,565.28 11,751.89
Common Dividends/Shr 0.000 0.000 0.000 0.000
Dilution Adjustment 0 0 0 0
Diluted Average Shs 4,059.84 7,108.78 11,230.89 12,534.54
Dil EPS Excl ExOrd Items 0.505 0.537 0.701 0.924
Dil EPS Incl ExOrd Items 0.505 0.537 0.701 0.924
Consolidated Balance Sheet
(Thousands of U.S. Dollars)
(RESTATED ON
12/31/03)
As Of As Of As Of As Of
12/31/00 12/31/01 12/31/02 12/31/03
ASSETS
Accounts Rcvbl. 7,059 10,454 21,754 32,858
Income Tax Rcvbl 0 0 290 1,351
Note Receivable 209 0 0 0
Loans Rcvbl. 0 364 343 211
Deferred Taxes 0 0 0 122
Prepaid Expenses 335 289 4,257 4,058
Total Current Assets 14,391 50,210 35,419 98,532
Prop./Equip.,Net 0 0 0 0
Loan Receivable 102 800 600 400
Land 0 0 0 1,120
Furniture/Fixt. 109 307 1,384 1,918
Leasehold Improv 0 876 4,851 6,917
Machinery/Equip. 841 3,560 13,279 20,713
Depreciation -381 -815 -2,901 -6,491
Goodwill 671 4,484 30,151 47,789
Deferred Taxes 0 0 284 0
Other Assets 35 377 230 42
Total Assets 15,768 60,484 85,960 173,051
LIABILITIES
Accounts Payable 764 1,539 6,323 5,765
Purc. Consider. 0 0 1,200 1,740
Advance Billings 1,591 1,483 3,803 4,734
Income Tax Pay. 372 1,046 0 0
Deferred Taxes 130 223 85 0
Cur.Port.Notes 252 7 1,361 1,998
Other 0 0 0 0
Total Current Liabs 4,199 5,617 14,613 19,150
Notes Payable 158 1 2,787 3,654
Total Long Term Debt 158 1 2,787 3,654
Deferred Taxes 109 234 0 304
Total Liablities 4,466 5,852 17,400 23,108
SHAREHOLDER EQUITY
Common Stock 4 7 7 10
Paid in Capital 10,345 49,914 58,068 123,859
Retained Earning 954 4,773 12,641 24,223
Note Receivable 0 -63 0 0
Deferred Comp. 0 0 0 -732
Other Comp. Inc. 0 0 18 2,583
Treasury Stock 0 0 -2,176 0
Total Equity 0 0 0 0
Total Equity 11,303 54,631 68,558 149,943
Shares Outstanding 5,384.46 10,005.48 10,806.57 14,985.83
DETAILED ANNUAL STATEMENT OF CASH FLOWS INDIRECT METHOD
(Thousands of U.S. Dollars)
(RESTATED ON
12/31/03)
As Of As Of As Of As Of
12/31/00 12/31/01 12/31/02 12/31/03
OPERATING CASH FLOWS
Net Income 2,051 3,819 7,868 11,582
Depreciation 175 594 2,870 4,754
Bad Debt Provision 8 48 322 78
Noncash Comp. 0 0 200 200
Stock Options 170 170 35 26
Issue Common Stock 0 37 0 0
Tax Benefit 0 331 520 1,621
Deferred Taxes -171 -481 -1,546 382
Cash From Operations -370 3,646 5,270 9,771
INVESTING CASH FLOWS
Cash Consideration -296 -3,379 -29,229 -9,289
Capital Expenditures -370 -3,002 -5,104 -5,378
Purc. LT Investments 0 0 -2,414 -1,498
Loans to Stockholder -9 -1,000 0 0
Repay. Loans 0 56 20 133
Cash Acquired 79 0 0 0
Note Receivable -209 0 0 0
Cash From Investing -805 -7,325 -36,727 -16,032
FINANCING CASH FLOWS
Proc. Note Payable 56 0 0 0
Repay. Note Payable 0 0 0 0
Pay. Note Payable 0 -358 -430 -139
Pay. Notes - Assets -456 -44 0 0
Pay. Notes - Stkhld -191 0 0 0
Pay. Capital Leases -19 0 0 0
Notes Pay. -Trans. 15 0 0 0
IPO Proceeds 8,271 0 0 0
Repurc. Common Stock 0 -26 -2,177 0
Stock Options 0 6,832 1,321 2,222
Secondary PO 0 29,590 0 53,843
Borrow. Line of Cred 0 0 0 10,300
Cash From Financing 7,676 35,994 -1,286 55,926
Foreign Exch Effects 0 0 0 -3
Net Change in Cash 6,499 32,316 -32,742 49,659
Cash Interest Paid 301 27 282 427
Cash Taxes Paid 1,141 1,388 2,921 2,349
ASSETS AND LIABILITIES
PERIOD ENDING 31-Mar-04 31-Dec-03 30-Sep-03 30-Jun-03
Assets
Current Assets
Cash & Cash Equivalents 52,410 56,020 7,370 3,975
Short Term Investments 5,644 3,912 1,104 1,331
Net Receivables 34,283 34,540 31,585 27,168
Inventory 0 0 0 0
Other Current Assets 4,149 4,058 5,295 4,956
Total Current Assets 96,486 98,531 45,353 37,430
Long Term Investments 400 400 400 600
Property Plant & Equip 37,279 24,177 19,935 18,671
Goodwill 52,305 47,789 47,405 30,151
Intangible Assets 1,801 2,111 2,834 2,091
Accumulated Amortization 0 0 0 0
Other Assets 232 42 427 213
Def Long Term Asset Charges 20 0 1,397 1,198
Total Assets 188,523 173,051 117,751 90,354
Liabilities
Current Liabilities
Accounts Payable 19,319 17,152 15,439 10,531
Short/Curt Long Term Debt 2,425 1,998 6,696 3,420
Other Current Liabilities 0 0 0 0
Tot Current Liabilities 21,745 19,150 22,135 13,951
Long Term Debt 12,854 3,654 7,507 2,713
Other Liabilities 0 0 0 0
Def L-Term Liability Charges 0 304 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 34,598 23,107 29,642 16,664
Stockholders' Equity
Misc Stocks Options Warrants 0 0 0 0
Redeemable Preferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 15 10 8 7
Retained Earnings 27,949 24,223 20,034 16,609
Treasury Stock 0 0 0 0
Capital Surplus 124,257 123,859 67,378 56,070
Other Stockholder Equity 1,703 1,851 689 1,004
Tot Stockholder Equity 153,925 149,943 88,109 73,690
Net Tangible Assets $99,818 $100,042 $37,870 $41,448
Analyst Projections for Earnings and Revenues
Earnings Est Current Qtr Next Qtr Current Year Next Year
Avg. Estimate 0.25 0.28 1.08 1.31
No. of Analysts 4 4 4 4
Low Estimate 0.24 0.27 1.06 1.23
High Estimate 0.27 0.30 1.11 1.38
Year Ago EPS 0.18 0.28 0.93 1.08
Revenue Est Current Qtr Next Qtr Current Year Next Year
Avg. Estimate 34.33M 35.67M 139.59M 162.56M
No. of Analysts 3 3 4 4
Low Estimate 34.00M 35.60M 136.00M 152.00M
High Estimate 34.68M 35.70M 141.18M 170.20M
Year Ago Sales 22.48M 29.08M N/A 139.59M
Sales Growth (year/est) 52.7% 22.7% N/A 16.5%
Key Executives
Adams, Michael
Dr. Michael Adams is president of SFBC New Drug Services, Inc. He joined
SFCC September, 2003 when we acquired New Drug Services, Inc. Previously,
he was president of New Drug Services since 1990. Dr. Adams has over 17
years of professional experience in the pharmaceutical industry including
over 15 years with New Drug Services. He has participated in a variety
of U.S. and international regulatory submissions including NDA, PLA, ANDA
and EEC filings.
Casanas, Ramiro
Ramiro Casanas became SFCC's chief accounting officer in February 2001.
From May 2000 to February 2001, Mr. Casanas worked for McKean, Paul, Chrycy,
Fletcher & Co., an accounting firm. Prior to joining us, Mr. Casanas was
the chief financial officer for Dental Services of America from July 1998
until May 2000. He served as controller for Bascom Palmer Eye Institute
from July 1997 through June 1998 and as controller for Coral Gables Hospital
from May 1994 through June 1997.
Hantman, Arnold
Arnold Hantman, C.P.A. co-founded SFBC in 1984 and has served as SFCC's
chief executive officer, treasurer and a director since inception. From
1977 to 1984, Mr. Hantman was executive vice president and a director
of American Hospital Management Corporation, a hospital management company.
Prior to 1977, Mr. Hantman practiced as a certified public accountant
with Wiener, Stern & Hantman for over 20 years. Mr. Hantman is a life
member of the American and Florida Institutes of Certified Public Accountants
and a licensed attorney in the State of Florida.
Holmes, Gregory B.
Gregory B. Holmes, Pharm.D, ABCP, FCP joined South Florida Kinetics, Inc.,
SFCC's Miami subsidiary, as executive vice president of clinical operations
in February 1999 and has served in the same capacity with SFBC since June
1999. From January 1997 to February 1999, Dr. Holmes was president of
clinical research for Phoenix International Life Sciences, a company now
owned by MDS Pharma, a leading global drug development services company.
From May 1988 to January 1997, Dr. Holmes held several executive positions,
including vice president of clinical research and vice president of international
business, with Pharmaco International Inc., the clinical research division
of PPD, Inc., a leading global drug development services company. Dr.
Holmes is a member and fellow of the American College of Clinical Pharmacology.
Krinsky, M.D., Lisa
Lisa Krinsky, M.D. has served as the chairman of SFCC's board of directors
and president (chief operating officer) of SFBC since 1995. She also heads
our United States Phase I and Phase II operations. In 2002, Dr. Krinsky
was chosen as Ernst & Young LLP's Florida Entrepeneur of the Year for
Healthcare.
LeBel, Pharm.D., Marc
Marc LeBel, Pharm.D., FCCP, FCSHP is a founder of and has been president
of Anapharm Inc. since 1994. He is also a Fellow of the American College
of Clinical Pharmacy and the Canadian Society of Hospital Pharmacists.
He is the author of more than 100 publications.
Levine, Jack
Jack Levine, C.P.A. has been a director of SFBC International since August
1999. Mr. Levine is a certified public accountant in the State of Florida,
and has been the president of Jack Levine, P.A. since 1984. Mr. Levine
is also a member of the American and Florida Institutes of Certified Public
Accountants and the New York State Society of Certified Public Accountants.
Lucking, David
David Lucking has been a director of SFBC since June 2002. He has been
employed by Noven Pharmaceuticals, Inc. since 1987. His current position
is Executive Director of Regulatory Affairs. He is heavily involved in
conducting pre-clinical and clinical trials, coordinating with the United
States Food and Drug Administration and European regulatory agencies and
has participated in creating strategic plans relating to the development
of new drugs.
Natan, David
David Natan, C.P.A., became SFCC's vice president of finance (chief financial
officer) in March 2002, having first joined us as an employee in February
2002. Previously, Mr. Natan, was employed by Global Technovations, Inc.
as its vice president and chief financial officer from June 1995 through
February 2002. Mr. Natan also has served as chief financial officer for
two other public companies. He is a certified public accountant.
Weinstein, Leonard I.
Leonard I. Weinstein, Ph.D. has been a director of SFBC since June 1999.
Since June 1999, Dr. Weinstein has been president of Tropical Medical
Services, Inc., a provider of consulting and strategic advisory services
to the healthcare industry.
A Word On Forward Looking Statements
Except for historical information, this Report may contain "forward- looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including market acceptance of or transition to new products or technologies; growth drivers; orders, sales, backlog, or earnings growth; future financial results and any statements using the terms "expects," "expected," "will," "scheduled," or similar statements are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
Such risks and uncertainties include demand for SFBC International's products and services; their ability to develop and commercialize new products and services; the impact of competitive products, services, and pricing; the effect of economic conditions and currency exchange rates; SFBC International's ability to maintain or increase operating margins; their ability to meet demand for manufacturing capacity; the effect of environmental claims and expenses; SFBC International's ability to protect their intellectual property; their reliance on sole or limited-source suppliers; the impact of some previously known or unknown disease on travel and business operations; the impact of government managed care initiatives or other health care reforms on capital expenditures and/or third-party reimbursement levels; the impact of third-party reimbursement levels on orders and sales; SFBC International's ability to meet FDA and other regulatory requirements or product clearances; the potential loss of key distributors or key personnel; the ability to make strategic acquisitions and to successfully integrate the acquired operations into SFBC International's business; the ability to protect new intellectual property; the effect of changes in accounting principles; the risk of operations interruptions due to events beyond SFBC International's control; and the other risks listed from time to time in SFBC International's filings with the Securities and Exchange Commission. Pro Right Line assume no obligation to update or revise the forward-looking statements in this report because of new information, future events, or otherwise.
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