Capital Structure

VTIV’s financial strength shows that management’s focus on driving organic growth, bolster margins, and de-emphasis on acquisitions in the near term is producing tangible results.

VTIV generated $47.1 million of cash flow from continuing operations in 4Q09 and a total of $125.8 million in FY09 versus $20.9 in 3Q09.  The cash and securities balance was $135.4 million as of December 31, 2009, versus $105.3 million in 3Q09.

Long-term debt was $321.9 million.  Management plans to begin paying that down starting with a $10-$20 million payment in the March-April 2010 period.  Management intends to keep about $30-$50 million in working capital, enough cash to fund small acquisitions, and also some cash to possibly buy back shares if the company is able to amend its debt agreement.

Others

In December 2009, VTIV launched FlightPath, a customizable, interactive approach to commercialize planning.  FlightPath serves as an organizing platform that provides healthcare companies with access to strategic insights, planning expertise and tactical execution capabilities.  The FlightPath platform is based on inVentiv's vast commercialization experience, which includes successfully launching or commercializing more than 800 pharmaceutical and life sciences products over the past decade across a variety of company types.
 

Contract wind downs and product-specific issues are persistent risks in a contract sales business.

While VTIV has been able to add complementary service platforms in a synergistic fashion, the high employee attrition rates could materially impact the company’s future growth.

VTIV’s acquisition activity has exposed it to new service areas (particularly advertising, marketing, and patient compliance), where historically operating experience is limited.

The difficult operating environment for pharmaceutical companies is impacting VTIV’s promotional spending, intensifying competition, and giving rise to difficulties in acquisition integration.