Final Results

 

TIDMRPSE 
 
RNS Number : 8532P 
Research Pharmaceutical SRV, Inc 
31 March 2009 
 

March 31, 2009 
 
 
ReSearch Pharmaceutical Services, Inc. 
Unaudited Quarterly Report for the Fourth Quarter and Year Ended December 31, 
2008 
 
 
ReSearch Pharmaceutical Services, Inc.("RPS" or the "Company"), a leading 
provider of integrated clinical development outsourcing solutions to the 
bio-pharmaceutical industry, is pleased to announce its results for the fourth 
quarter and year ended December 31, 2008. These statements include unaudited 
comparative results for RPS which merged with Cross Shore Acquisition 
Corporation ("Cross Shore") on August 30, 2007. 
 
 
In addition, RPS announces that it has today filed a Form 10-K in the U.S., as 
required by the Securities and Exchange Commission ("SEC"). A copy of the Form 
10-K is available on our website (www.rpsweb.com). 
 
 
Financial highlights for the year ended December 31, 2008 
 
 
  *  A 30% increase in service revenue to $157.0 million compared to $120.5 million 
  for the year ended December 31, 2007. 
  *  A 32% increase in EBITDA to $8.0 million compared to $6.0 million for the year 
  ended December 31, 2007. 
  *  Net income before provision for income taxes of $6.3 million compared with a net 
  loss before provision for income taxes of $0.9 million for the year ended 
  December 31, 2007. 
  *  Net income of $3.7 million compared with net loss of $2.4 million for the year 
  ended December 31, 2007. 
 
 
 
Financial highlights for the three months ended December 31, 2008 
 
 
  *  A 14% increase in service revenue to $40 million compared to $35 million for the 
  three months ended December 31, 2007. 
  *  A 41% increase in EBITDA to $1.2 million compared to $0.8 million for the three 
  months ended December 31, 2007. 
  *  Net income before provision for income taxes of $0.7 million as compared to net 
  income before provision for income taxes of $0.5 million for the three months 
  ended December 31, 2007. 
  *  Net income of $0.5 million compared to net loss of $4.3 million for the three 
  months ended December 31, 2007. 
  *  At December 31, 2008, RPS had approximately $6.6 million in cash plus $7.5 
  million of unused bank line availability. 
 
 
 
Operational highlights 
 
 
  *  In December, RPS announced the acquisition of three European based, privately 
  held clinical resource organizations ("CRO") further expanding the global 
  capabilities of the Company. Additionally, these acquisitions provide RPS with 
  greater scale to meet the growing needs of its customers in the rapidly 
  expanding market for globally integrated clinical research services. 
  *  On March 30, 2009, the Company announced that it has entered into an agreement 
  to acquire a CRO in China, further enhancing the Company's global capabilities. 
 
 
 
A description of each non-GAAP financial measure and the related reconciliation 
to the comparable GAAP measure are located at the end of this press release. 
 
 
Commenting on the fourth quarter results, Daniel M. Perlman, Chairman and CEO of 
RPS, said: 
 
 
"Our 30% growth in service revenues in 2008 as compared to 2007 outpaced the 
growth of bio-pharmaceutical industry R&D expenditures. We are pleased to 
continue to gain incremental market share in our industry. Additionally, we are 
fortunate to have three highly experienced teams of clinical research 
professionals join the RPS family as a result of our European acquisitions thus 
continuing our focus on expanding our global footprint to facilitate future 
growth in revenues and profitability." 
 
 
For further information please contact: 
 
 
+----------------------------------------+----------------------------------------+ 
| ReSearch Pharmaceutical Services, Inc. | [phone]                        | 
+----------------------------------------+----------------------------------------+ 
| Dan Perlman, CEO                       |                                        | 
+----------------------------------------+----------------------------------------+ 
| Steven Bell, Chief Financial Officer   |                                        | 
+----------------------------------------+----------------------------------------+ 
|                                        |                                        | 
+----------------------------------------+----------------------------------------+ 
| Nominated Adviser and UK Broker:       |                                        | 
+----------------------------------------+----------------------------------------+ 
| Arbuthnot Securities Limited           | [phone]                       | 
+----------------------------------------+----------------------------------------+ 
| James Steel / Ed Burbidge              |                                        | 
+----------------------------------------+----------------------------------------+ 
 
 
  ReSearch Pharmaceutical Services, Inc. 
Unaudited Quarterly Report to December 31, 2008 
 
 
Background on RPS 
 
 
ReSearch Pharmaceutical Services, Inc. ("RPS" or the "Company") was incorporated 
in Delaware on January 30, 2006 as Cross Shore Acquisition Corporation ("Cross 
Shore"), a blank check company formed to serve as a vehicle for the acquisition 
of a then unidentified operating business engaged in the delivery of business 
services to consumers and companies in the United States, while its subsidiary 
and operating company, ReSearch Pharmaceutical Services, LLC, and its 
predecessors have been in existence since 1994. On April 24, 2006 Cross Shore 
consummated its initial public offering on the Alternative Investment Market 
("AIM") of the London Stock Exchange, and on April 26, 2007, entered into an 
Agreement and Plan of Merger (the "Merger Agreement") with ReSearch 
Pharmaceutical Services, Inc. ("Old RPS"). Upon the completion of the merger 
with Old RPS on August 30, 2007, Cross Shore changed its name to ReSearch 
Pharmaceutical Services, Inc. Prior to the merger with Old RPS, Cross Shore had 
no operating business other than searching for an acquisition target. 
 
 
Headquartered in Ft. Washington, Pennsylvania, with subsidiary offices across 
Latin America and Europe, RPS is a next generation CRO and a leading provider of 
integrated clinical development and enhanced full-service outsourcing solutions 
to the bio-pharmaceutical industry. RPS provides services in connection with the 
design, initiation and management of clinical trials programs that are required 
to obtain regulatory approval to market bio-pharmaceutical products. Our 
innovative business model combines the expertise of a traditional CRO with the 
ability to provide flexible outsourcing solutions that are fully integrated 
within our clients' clinical drug development infrastructure. This approach was 
designed to meet the varied needs of small, medium and large bio-pharmaceutical 
companies. 
 
 
Comments regarding the three months ended December 31, 2008 
 
 
In December 2008, the Company completed three acquisitions of CRO's located in 
Germany, France and Spain (the "European Acquisitions"). The Company believes 
that the European Acquisitions, which are active in the same fields as RPS, will 
provide the Company with expanded capabilities and opportunities in the European 
market and complement its current operations in the Americas. In addition, RPS 
believes the European Acquisitions will provide it with greater scale to meet 
the growing needs of its customers in the rapidly expanding market for globally 
integrated clinical research services. The German and Spanish companies were 
purchased on December 22, 2008, and the French company was purchased on December 
23, 2008. Accordingly the European Acquisitions did not have a material impact 
on the consolidated results of operations for the quarter or year ended December 
31, 2008. 
 
 
Operating review of the year ended December 31, 2008 compared to year ended 
December 31, 2007 
 
 
Revenues. Service revenues increased 30.3% to $157.0 million for 2008 from 
$120.5 million for 2007 as the Company generated additional business from 
existing and new customers. The majority of the increase is related to 
significant new contracts and the continued growth of existing contracts with 
several pharmaceutical companies in our Clinical Master Service Provider (CMSP) 
programs. CMSP revenue for the year ended December 31, 2008 grew 56.3% over the 
comparable prior period, and accounted for $99.1 million or 63.2% of our total 
service revenue for the year ended December 31, 2008, as compared to CMSP growth 
of 181.1% over the comparable prior period which accounted for $63.4 million or 
53.2% of total service revenue for the year ended December 31, 2007. (see "Item 
1: Business - Business Overview and Business Model" for further information on 
our CMSP solutions). 
 
 
Reimbursement revenues and offsetting reimbursable out-of-pocket costs fluctuate 
from period to period due primarily to the level of pass-through expenses in a 
particular period. Reimbursement revenues and reimbursable out-of-pocket costs 
increased 29.9% to $18.1 million in 2008 from $13.9 million in 2007. The 
increase is due primarily to an increase in the number of programs for which the 
Company is providing its various services. 
 
 
Direct Costs. Direct costs increased 34.3% to $117.7 million or 75.0% of service 
revenues for 2008 as compared to $87.7 million or 72.8% of service revenues for 
2007. The increase in direct costs is directly correlated with the increase in 
revenues as described above. The primary costs included in direct costs are 
operational staff payroll and related taxes and benefits. 
 
 
Selling, general and administrative expenses. Selling, general and 
administrative expenses ("SG&A") increased 16.8% to $31.3 million for 2008 from 
$26.8 million for 2007 to support the increase in revenues. The primary reason 
for the increase in SG&A costs was an increase in the number of corporate 
personnel, which resulted in increases in employee-related costs such as new 
salaries, as well as increases in salaries for existing employees, bonuses, 
commissions, health benefits and payroll taxes to $18.8 million for the year 
ended December 31, 2008 as compared to $16.2 million for the year ended December 
31, 2007. Additionally, due to our increasing global footprint we saw an 
increase in rent and travel expense to $3.5 million for the year ended December 
31, 2008 as compared to $2.6 million for the year ended December 31, 2007. 
Although our public company filing status in the US and on AIM results in 
significant expenditures for our insurance premiums, licenses and professional 
fees, we saw these amounts decrease to $3.1 million for the year ended December 
31, 2008 as compared to $3.4 million for the year ended December 31, 2007. 
Although the total increased during the periods, as a percentage of service 
revenues, SG&A expenses decreased to 19.9% of service revenues for 2008 as 
compared to 22.2% of service revenues for 2007. The decrease is attributable to 
the Company's ability to leverage fixed infrastructure costs and contain 
semi-variable overhead costs at a slower rate of growth than revenues. 
 
 
Depreciation and amortization expense. Depreciation and amortization expense 
increased to $1.8 million for 2008 as compared to $1.1 million for 2007 due 
primarily to an increase in the depreciable asset base. 
 
 
Income from operations. Income from operations increased to $6.3 million for 
2008 as compared to income from operations of $4.9 million for 2007. The 
increase is attributable to growth in revenues in excess of the corresponding 
growth in direct costs and SG&A costs as described above. 
 
 
Interest expense. Interest expense for 2008 decreased to $0.3 million from 
interest expense of $6.0 million for 2007. The majority of the change in 
interest expense relates to a non-cash charge of $4.7 million recorded during 
the year ended December 31, 2007, to mark the Company's put warrant liability to 
its market value during the period. The put warrants were exchanged for a 
combination of common stock and cash on August 30, 2007 in connection with the 
reverse merger of Cross Shore Acquisition Corporation. 
 
 
Interest income. Interest income increased to $0.3 million during the year ended 
December 31, 2008 from interest income of $0.2 million for 2007 due to an 
increase in the level of investable cash on hand subsequent to the Company's 
August 30, 2007 merger with Old RPS. 
 
 
Provision for income taxes. The provision for income taxes for 2008 increased to 
$2.5 million from $1.5 million for 2007. The increased provision is reflective 
of the increased income before provision for income taxes as described above. 
The Company's effective tax rate for 2007 is significant as the $4.7 million 
non-cash interest charge recorded related to the put warrant liability discussed 
above is non-deductible for income tax purposes. 
 
 
Net income (loss).  As a result of the factors discussed above, net income for 
2008 increased to $3.7 million or $0.11 per share, basic and diluted, from a net 
loss for 2007 of $2.4 million or ($0.19) per share, basic and diluted. 
 
 
Balance Sheet and Cash Flow 
 
 
The Company maintains a working capital line of credit with a bank, with a 
maximum potential borrowing capacity of $15.0 million. At December 31, 2008, the 
Company had borrowings totaling $7.5million under this facility. Interest on 
outstanding borrowings under this facility is at the Federal Funds open rate, 
plus 1%. The credit facility contains various financial and other covenants, 
including a prohibition on paying dividends or distributions (other than 
dividends or distributions payable in our stock). At December 31, 2008, the 
Company was in compliance with these covenants. The facility is secured by all 
of the assets of the Company. At December 31, 2008, the Company had available 
cash and cash equivalent balances of $6.4 million and working capital of $24.5 
million, which the Company believes will provide sufficient liquidity for the 
next twelve months. 
 
 
During the year ended December 31, 2008, the Company's operating activities used 
cash of $2.8 million, a decrease of $4.4 million from the corresponding amount 
for the year ended December 31, 2007. This decrease during the period can be 
attributed to negative changes of $2.0 million in deferred revenue, $0.4 million 
in customer deposits, $0.3 million in accounts payable, $0.3 million in accrued 
expenses, $0.4 million in prepaid expenses and other current assets and $0.6 
million in deferred tax benefits. In addition to these negative changes, 
accounts receivable, net of allowance increased $4.9 million, or 15.3%, to $37.0 
million at December 31, 2008 from $32.1 million at December 31, 2007, primarily 
related to the increase in revenues during the period and due to the timing of 
cash collections. 
 
 
These negative changes were offset by $3.7 million in net income, due primarily 
to increased service revenues, along with $0.6 million in non-cash stock based 
compensation and $1.8 million in depreciation and amortization expense. 
 
 
Cash used in investing activities for the year ended December 31, 2008 totaled 
$8.7 million, consisting primarily of the cost of the European Acquisitions, net 
of cash acquired of $7.9 million and purchases of property and equipment of $1.3 
million. These changes were offset by $0.4 million in positive changes to 
restricted cash. 
 
 
Cash provided by financing activities for the year ended December 31, 2008 
totaled $6.9 million. This net cash provided by financing activities consisted 
primarily of net borrowings on our line of credit of $7.5 million, offset by 
principal payments on capital lease obligations of $0.6 million. 
 
 
Dividends 
 
 
The Company does not currently intend to pay cash dividends on its common stock 
or warrants in the foreseeable future, but rather to reinvest earnings in the 
business. 
 
 
Supplemental non-GAAP financial information 
 
 
EBITDA is defined as net income (loss) before interest expense, income taxes and 
depreciation and amortization. Adjusted EBITDA is defined as net income (loss) 
before interest expense, income taxes and depreciation and amortization, and 
non-recurring expenses. The Company believes that net income is the most 
directly comparable GAAP measurement to EBITDA and Adjusted EBITDA. EBITDA and 
Adjusted EBITDA are presented because the Company believes they are useful to 
investors as widely accepted financial indicators of a company's ability to 
service and/or incur indebtedness and because such disclosure provides investors 
with additional criteria used by the Company to evaluate our operating 
performance and the performance bonuses of certain of our employees. EBITDA and 
Adjusted EBITDA are not defined under GAAP, should not be considered in 
isolation or as a substitute for a measure of our liquidity or performance 
prepared in accordance with GAAP and are not indicative of income from 
operations as determined under GAAP. EBITDA and Adjusted EBITDA and other 
non-GAAP financial measures have limitations which should be considered before 
using these measures to evaluate the Company's liquidity or financial 
performance. EBITDA and Adjusted EBITDA do not include interest expense, income 
tax expense or depreciation and amortization expense, which may be necessary in 
evaluating the Company's operating results and liquidity requirements or those 
of businesses we may acquire. The Company's management compensates for these 
limitations by using EBITDA and Adjusted EBITDA as a supplement to GAAP results 
to provide a more comprehensive understanding of the factors and trends 
affecting our business or any business we may acquire. Our computation of EBITDA 
and Adjusted EBITDA may not be comparable to other similarly titled measures 
provided by other companies, because not all companies calculate this measure in 
the same fashion. 
 
 
The following table and related notes reconciles net income (loss) to EBITDA and 
then EBITDA to Adjusted EBITDA: 
 
 
+--------------------------------------+---------+----------+----------+----------+ 
|                                      |              (in thousands)              | 
+--------------------------------------+------------------------------------------+ 
|                                      | Three months ended |          Year ended | 
+--------------------------------------+--------------------+---------------------+ 
|                                      |       December 31, |        December 31, | 
+--------------------------------------+--------------------+---------------------+ 
|                                      |    2008 |     2007 |     2008 |     2007 | 
+--------------------------------------+---------+----------+----------+----------+ 
| Reconciliation of net income (loss)                                             | 
| to EBITDA:                                                                      | 
+---------------------------------------------------------------------------------+ 
| Net income (loss)                    |    $518 | $(4,240) |   $3,743 | $(2,415) | 
+--------------------------------------+---------+----------+----------+----------+ 
| Provision for income taxes           |     178 |    4,748 |    2,518 |    1,508 | 
+--------------------------------------+---------+----------+----------+----------+ 
| Interest (income) expense, net       |    (17) |     (86) |     (42) |    5,786 | 
+--------------------------------------+---------+----------+----------+----------+ 
| Depreciation and amortization        |     517 |      426 |    1,750 |    1,144 | 
+--------------------------------------+---------+----------+----------+----------+ 
| EBITDA                               |  $1,196 |    $848  |   $7,969 |   $6,023 | 
+--------------------------------------+---------+----------+----------+----------+ 
 
 
 
 
Daniel M. Perlman, Chairman and CEO 
March 31, 2009 
  Financial Data 
 
 
Research Pharmaceutical Services, Inc. and Subsidiaries 
Consolidated Balance Sheets 
 
 
+--------------------------------------------------------+-------------+-------------+ 
|                                                        |              December 31, | 
+--------------------------------------------------------+---------------------------+ 
|                                                        |        2008 |        2007 | 
+--------------------------------------------------------+-------------+-------------+ 
| Assets                                                 |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Current assets:                                        |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Cash and cash equivalents                              |  $6,565,003 | $11,060,255 | 
+--------------------------------------------------------+-------------+-------------+ 
| Restricted cash                                        |   7,247,532 |   1,321,877 | 
+--------------------------------------------------------+-------------+-------------+ 
| Accounts receivable, less allowance for doubtful       |  43,225,016 |  32,117,662 | 
| accounts of $654,000 and $547,000 at December 31, 2008 |             |             | 
| and 2007, respectively                                 |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Current deferred tax asset                             |     970,797 |     334,533 | 
+--------------------------------------------------------+-------------+-------------+ 
| Prepaid expenses and other current assets              |   2,377,838 |   1,337,141 | 
+--------------------------------------------------------+-------------+-------------+ 
| Total current assets                                   | $60,386,186 | $46,171,468 | 
+--------------------------------------------------------+-------------+-------------+ 
|                                                        |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Property and equipment, net                            |   5,993,386 |   3,343,371 | 
+--------------------------------------------------------+-------------+-------------+ 
| Other assets                                           |   1,179,018 |     253,471 | 
+--------------------------------------------------------+-------------+-------------+ 
| Intangible assets subject to amortization, net         |   3,880,000 |           - | 
+--------------------------------------------------------+-------------+-------------+ 
| Goodwill                                               |  15,145,585 |     275,536 | 
+--------------------------------------------------------+-------------+-------------+ 
| Deferred tax asset                                     |     504,366 |     375,173 | 
+--------------------------------------------------------+-------------+-------------+ 
| Total assets                                           | $87,088,542 | $50,419,019 | 
+--------------------------------------------------------+-------------+-------------+ 
|                                                        |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Liabilities and stockholders' equity (deficit)         |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Current liabilities:                                   |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Accounts payable                                       |  $3,496,309 |  $1,442,881 | 
+--------------------------------------------------------+-------------+-------------+ 
| Accrued expenses                                       |  12,069,957 |   6,489,902 | 
+--------------------------------------------------------+-------------+-------------+ 
| Customer deposits                                      |   7,247,532 |   1,321,877 | 
+--------------------------------------------------------+-------------+-------------+ 
| Deferred revenue                                       |   4,781,935 |   5,026,042 | 
+--------------------------------------------------------+-------------+-------------+ 
| Line of credit                                         |   7,500,000 |           - | 
+--------------------------------------------------------+-------------+-------------+ 
| Current portion of capital lease obligations           |     682,695 |     536,106 | 
+--------------------------------------------------------+-------------+-------------+ 
| Total current liabilities                              | $35,778,428 | $14,816,808 | 
+--------------------------------------------------------+-------------+-------------+ 
|                                                        |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Customer deposits                                      |   4,500,000 |   4,500,000 | 
+--------------------------------------------------------+-------------+-------------+ 
| Deferred tax liability                                 |   1,331,955 |           - | 
+--------------------------------------------------------+-------------+-------------+ 
| Other liabilities                                      |   1,181,861 |     258,860 | 
+--------------------------------------------------------+-------------+-------------+ 
| Other long term debt                                   |   1,141,933 |           - | 
+--------------------------------------------------------+-------------+-------------+ 
| Capital lease obligations, less current portion        |     871,963 |     414,002 | 
+--------------------------------------------------------+-------------+-------------+ 
| Total liabilities                                      | $44,806,140 | $19,989,670 | 
+--------------------------------------------------------+-------------+-------------+ 
|                                                        |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Stockholders' equity:                                  |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Common stock, $.0001 par value:                        |             |       3,220 | 
+--------------------------------------------------------+-------------+             + 
| Authorized shares - 150,000,000 at December 31, 2008   |       3,675 |             | 
| and 2007, issued and outstanding shares - 36,746,291   |             |             | 
| and 32,199,223 at December 31, 2008 and 2007,          |             |             | 
| respectively                                           |             |             | 
+--------------------------------------------------------+-------------+-------------+ 
| Additional paid-in capital                             |  44,083,184 |  36,078,600 | 
+--------------------------------------------------------+-------------+-------------+ 
| Accumulated other comprehensive income                 |     155,535 |      50,305 | 
+--------------------------------------------------------+-------------+-------------+ 
| Accumulated deficit                                    | (1,959,992) | (5,702,776) | 
+--------------------------------------------------------+-------------+-------------+ 
| Total stockholders' equity                             | $42,282,402 | $30,429,349 | 
+--------------------------------------------------------+-------------+-------------+ 
| Total liabilities and stockholders' equity             | $87,088,542 | $50,419,019 | 
+--------------------------------------------------------+-------------+-------------+ 
 
 
 
 
Research Pharmaceutical Services, Inc. and Subsidiaries 
Consolidated Statements of Operations 
 
 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |         Three Months Ended |                              |                  Year Ended | 
|                              |               December 31, |                              |                December 31, | 
+                              +                            +------------------------------+                             + 
|                              |                            |                              |                             | 
+------------------------------+----------------------------+------------------------------+-----------------------------+ 
|                              |        2008 |         2007 |                              |         2008 |         2007 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |        (unaudited)         |                              |                             | 
+------------------------------+----------------------------+------------------------------+-----------------------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Service revenue              | $39,519,096 |  $34,674,808 |                              | $156,966,558 | $120,459,459 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Reimbursement revenue        |   4,835,639 |    3,678,932 |                              |   18,085,514 |   13,923,784 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Total revenue                |  44,354,735 |   38,353,740 |                              |  175,052,072 |  134,383,243 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Direct costs                 |  29,759,017 |   25,358,888 |                              |  117,707,287 |   87,650,346 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Reimbursable out-of-pocket   |   4,835,639 |    3,678,932 |                              |   18,085,514 |   13,923,784 | 
| costs                        |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Selling, general, and        |   8,563,777 |    8,467,688 |                              |   31,289,566 |   26,786,748 | 
| administrative expenses      |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Depreciation and             |     516,801 |      426,280 |                              |    1,750,252 |    1,143,734 | 
| amortization                 |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Income from operations       |     679,501 |      421,952 |                              |    6,219,453 |    4,878,631 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Interest expense             |    (20,326) |     (46,259) |                              |    (251,346) |  (6,025,467) | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Interest income              |      36,866 |      131,883 |                              |      293,056 |      239,582 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Net income before provision  |     696,041 |      507,576 |                              |    6,261,163 |    (907,254) | 
| for income taxes             |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Provision (benefit) for      |     177,629 |    4,748,048 |                              |    2,518,379 |    1,508,087 | 
| income taxes                 |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Net income                   |    $518,412 | ($4,240,472) |                              |   $3,742,784 | ($2,415,341) | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Accretion of preferred stock |           - |            - |                              |            - |    (320,819) | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Net income applicable to     |    $518,412 | ($4,240,472) |                              |   $3,742,784 | ($2,736,160) | 
| common shares                |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Net income per common share: |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Basic                        |       $0.02 |      ($0.13) |                              |        $0.11 |      ($0.19) | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Diluted                      |       $0.02 |      ($0.13) |                              |        $0.11 |      ($0.19) | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
|                              |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Weighted average number of   |             |              |                              |              |              | 
| common shares outstanding:   |             |              |                              |              |              | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Basic                        |  32,941,885 |   32,223,952 |                              |   32,616,846 |   14,572,881 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
| Diluted                      |  34,229,646 |   32,223,952 |                              |   34,103,258 |   14,572,881 | 
+------------------------------+-------------+--------------+------------------------------+--------------+--------------+ 
 
 
 
 
  Research Pharmaceutical Services, Inc. and Subsidiaries 
Consolidated Statements of Cash Flows 
 
 
+--------------------------------------------------------+-------------+--------------+ 
|                                                        |  Year ended | 
|                                                        |    December | 
|                                                        |         31, | 
+--------------------------------------------------------+-------------+ 
|                                                        |        2008 |         2007 | 
+--------------------------------------------------------+-------------+--------------+ 
|                                                        |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Net income (loss)                                      |  $3,742,784 | ($2,415,341) | 
+--------------------------------------------------------+-------------+--------------+ 
| Adjustments to reconcile net income (loss) to net cash |             |              | 
| provided by (used in) operating activities:            |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Depreciation and amortization                          |   1,750,252 |    1,478,337 | 
+--------------------------------------------------------+-------------+--------------+ 
| Interest charge related to put warrant liability       |           - |    4,723,451 | 
+--------------------------------------------------------+-------------+--------------+ 
| Stock-based compensation                               |     568,821 |      211,817 | 
+--------------------------------------------------------+-------------+--------------+ 
| Deferred tax benefit                                   |   (552,680) |    (409,460) | 
+--------------------------------------------------------+-------------+--------------+ 
| Changes in operating assets and liabilities:           |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Accounts receivable                                    | (4,896,994) | (10,004,080) | 
+--------------------------------------------------------+-------------+--------------+ 
| Prepaid expenses and other current assets              |   (430,583) |    (695,629) | 
+--------------------------------------------------------+-------------+--------------+ 
| Other assets                                           |      59,321 |        9,520 | 
+--------------------------------------------------------+-------------+--------------+ 
| Accounts payable                                       |   (270,086) |       67,861 | 
+--------------------------------------------------------+-------------+--------------+ 
| Accrued expenses                                       |   (330,167) |    2,044,352 | 
+--------------------------------------------------------+-------------+--------------+ 
| Customer deposits                                      |   (419,544) |    4,354,112 | 
+--------------------------------------------------------+-------------+--------------+ 
| Deferred revenue                                       | (2,001,238) |    1,988,877 | 
+--------------------------------------------------------+-------------+--------------+ 
| Other liabilities                                      |      15,063 |      258,860 | 
+--------------------------------------------------------+-------------+--------------+ 
| Net cash provided by (used in) operating activities    | (2,765,051) |    1,612,677 | 
+--------------------------------------------------------+-------------+--------------+ 
|                                                        |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Investing activities                                   |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Change in restricted cash                              |     419,544 |      145,888 | 
+--------------------------------------------------------+-------------+--------------+ 
| Cost of acquisition, net of cash acquired              | (7,867,466) |            - | 
+--------------------------------------------------------+-------------+--------------+ 
| Purchase of property and equipment                     | (1,269,245) |  (2,198,108) | 
+--------------------------------------------------------+-------------+--------------+ 
| Net cash (used in) provided by investing activities    | (8,717,167) |  (2,052,220) | 
+--------------------------------------------------------+-------------+--------------+ 
|                                                        |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Financing activities                                   |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Net borrowings (repayments) on lines of credit         |   7,500,000 |  (8,991,544) | 
+--------------------------------------------------------+-------------+--------------+ 
| Principal payments on capital lease obligations        |   (604,550) |    (194,355) | 
+--------------------------------------------------------+-------------+--------------+ 
| Repurchase of shares from stockholders in connection   |           - |  (3,810,409) | 
| with reverse acquisition of Cross Shore                |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Cross Shore merger consideration, net of fees paid     |    (17,880) |   51,375,660 | 
+--------------------------------------------------------+-------------+--------------+ 
| Distribution to stockholders                           |           - | (20,000,000) | 
+--------------------------------------------------------+-------------+--------------+ 
| Payment of preferred stock dividends                   |           - |  (2,627,334) | 
+--------------------------------------------------------+-------------+--------------+ 
| Proceeds from exercise of options                      |       4,165 |        6,748 | 
+--------------------------------------------------------+-------------+--------------+ 
| Payment of note payable                                |           - |  (4,500,000) | 
+--------------------------------------------------------+-------------+--------------+ 
| Net cash provided by financing activities              |   6,881,735 |   11,258,766 | 
+--------------------------------------------------------+-------------+--------------+ 
| Effect of exchange rates on cash                       |     105,231 |       44,008 | 
+--------------------------------------------------------+-------------+--------------+ 
| Net change in cash                                     | (4,495,252) |   10,863,231 | 
+--------------------------------------------------------+-------------+--------------+ 
| Cash and cash equivalents, beginning of period         |  11,060,255 |      197,024 | 
+--------------------------------------------------------+-------------+--------------+ 
| Cash and cash equivalents, end of period               |  $6,565,003 |  $11,060,255 | 
+--------------------------------------------------------+-------------+--------------+ 
|                                                        |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Supplemental disclosures of cash flow information      |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Cash paid during the year for:                         |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Interest                                               |    $251,346 |     $921,000 | 
+--------------------------------------------------------+-------------+--------------+ 
| Income taxes                                           |  $2,924,777 |   $1,459,000 | 
+--------------------------------------------------------+-------------+--------------+ 
| Supplemental disclosures of noncash financing          |             |              | 
| activities                                             |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Issuance of shares in connection with Imerem,          |  $7,070,922 |           $- | 
| Infociencia and Therapharm                             |             |              | 
+--------------------------------------------------------+-------------+--------------+ 
| Accretion of preferred stock dividends                 |          $- |     $320,819 | 
+--------------------------------------------------------+-------------+--------------+ 
| Acquisition of fixed assets under capital leases       |  $1,388,843 |   $1,123,097 | 
+--------------------------------------------------------+-------------+--------------+ 
 
 
NOTES 
 
 
The results contained herein reflect the operations of ReSearch Pharmaceutical 
Services, Inc. only and do not contain any operating results for Cross Shore. 
Comparative results for 2007 reflect the results of Old RPS prior to its merger 
with Cross Shore. 
 
 
The functional currency of RPS is US dollars because that is the currency of the 
primary economic environment in which the company operates. These financial 
statements are presented 
in US dollars. 
 
 
The financial statements are presented in conformity with accounting principles 
generally accepted in the United States and have been prepared using the same 
accounting policies as set forth in the financial statements for the year ended 
December 31, 2008 which will be included in the Company's Annual Report on Form 
10-K to be filed with the SEC. 
 
 
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 
 
 
This press release contains "forward-looking statements" that are made pursuant 
to the safe harbor provisions of the U.S. Private Securities Litigation Reform 
Act of 1995. Forward-looking statements can be identified by words such as 
"anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" 
and similar references to future periods, or by the inclusion of forecasts or 
projections. Forward-looking statements are based on the Company's current 
expectations and assumptions regarding its business, financial condition, the 
economy and other future conditions. Because forward-looking statements relate 
to the future, by their nature, they are subject to inherent uncertainties, 
risks and changes in circumstances that are difficult to predict, including 
those described under the heading "Risk Factors" in the Company's Form 10 filed 
with the SEC on February 13, 2008. The Company's actual results may differ 
materially from those contemplated by the forward-looking statements. The 
Company cautions you therefore that you should not rely on any of these 
forward-looking statements as statements of historical fact or as guarantees or 
assurances of future performance. Important factors that could cause actual 
results to differ materially from those in the forward-looking statements 
include regional, national or global political, economic, business, competitive, 
market and regulatory conditions including: our ability to identify liabilities 
associated with the Company; our ability to manage pricing and operational 
risks; our ability to manage foreign operations; changes in technology; and our 
ability to acquire or renew contracts. Any forward-looking statement made in 
this document speaks only as of the date on which it is made. Factors or events 
that could cause the Company's actual results to differ may emerge from time to 
time, and it is not possible for the Company to predict all of them. The Company 
undertakes no obligation to publicly update any forward-looking statement, 
whether as a result of new information, future developments or otherwise, unless 
otherwise required to do so by the AIM Rules. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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