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| 8-K - CURRENT REPORT - Pharma-Bio Serv, Inc. | pbsv_8k.htm |
Exhibit 99.1
Pharma-Bio Serv Announces Results for the Year Ended October 31,
2018
DORADO, PUERTO RICO / ACCESSWIRE / January 29, 2019 /
Pharma-Bio Serv, Inc. ("Pharma-Bio
Serv" or the "Company") (OTCQB: PBSV), a compliance, project
management and technology transfer support consulting firm, that
provides services to the pharmaceutical,
biotechnology, chemical,
medical device, cosmetic, food and allied products industries,
today announced net revenues from continuing operations for the
year ended October 2018 were $17.8 million, an increase of $4.5
million, or 34%, when compared to last year.
Net income for the year ended October 31, 2018 was approximately
$1.3 million, an increase in net earnings of $2.7 million, when
compared to last year.
On September 17, 2018, the Company sold substantially all of its
laboratory business assets (the “Laboratory Assets” or
the “Discontinued Operation”). The sale of the
Laboratory Assets for $5 million generated a net tax gain of
approximately $2.7 million.
During the current fiscal year, the Company was affected by the
recent US Tax Reform provisions, including an estimated one-time
non-recurring Transition Tax of $2.7 million. The impact of this
legislation was a prospective, significantly lower income tax rate
and an opportunity to repatriate non-US subsidiaries undistributed
earnings to the Company. As a result, certain of our existing
non-US subsidiaries were able to repatriate with no significant tax
burden, which contributed to the October 15, 2018 cash dividend to
shareholders of approximately $1.7 million in
aggregate.
“Based on a corporate strategy to refocus the Company on
consulting services, we sold substantially all of our laboratory
business and discontinued our efforts to pursue opportunities that
were not considered strategic to the Company. We believe that
consulting services, which have been our core business, will
provide the maximum added-value to our clients and shareholders. We
are also pleased with the financial results of the Company to date
and were delighted to provide a dividend to our loyal
shareholders," said Victor Sanchez, CEO of Pharma-Bio Serv,
Inc.
About Pharma-Bio Serv, Inc.
Pharma-Bio Serv is a compliance, project management, and technology
transfer support consulting firm, headquartered in Puerto Rico,
with operations in the U.S., Ireland, and Spain. Pharma-Bio Serv's
core business is FDA and other international regulatory compliance
agency related services. The Company's global team includes leading
engineering and life science professionals, quality assurance
managers and directors.
Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the U.S. federal securities laws, which statements may
include information regarding the plans, intentions, expectations,
future financial performance, or future operating performance of
Pharma-Bio Serv. Forward-looking statements are based on the
expectations, estimates, or projections of management as of the
date of this news release. Although Pharma-Bio Serv's management
believes these expectations, estimates, or projections to be
reasonable as of the date of this news release, forward-looking
statements are inherently subject to significant business risks,
economic and competitive uncertainties, or other contingencies,
which could cause its actual results or performance to differ
materially from what may be expressed or implied in the
forward-looking statements. Important factors that could cause
Pharma-Bio Serv's actual results or performance to differ
materially from the forward-looking statements include those set
forth in the "Risk Factors" section of Pharma-Bio Serv's Annual
Report on Form 10-K for the year ended October 31, 2018, and in its
other filings with the Securities and Exchange Commission, which
filings are available on www.sec.gov. Pharma-Bio Serv disclaims any
intention or obligation to update or revise any forward-looking
statements to reflect subsequent events and circumstances, except
to the extent required by applicable law.
Company Contact:
Pedro J. Lasanta
Chief Financial Officer
787 278 2709
SOURCE: Pharma-Bio Serv, Inc.