DUBLIN, Oct 21, 2009 (BUSINESS WIRE) -- ICON (NASDAQ:ICLR)(ISIN:IE0005711209), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for its third quarter ended September 30, 2009.
Net revenues for the quarter were $220.3 million, representing a 2.3% decrease over net revenues of $225.5 million for the comparative quarter last year. On a constant organic dollar basis revenues were similar to prior year. Year-to-date, net revenues were $660.2 million, representing a 2.3% increase over the same period last year.
Income from operations increased by 12% to $30.4 million, compared to $27.1 million for the same quarter last year. Operating margin increased to 13.8% from 12%. Net income was $24 million, compared with $21.4 million last year an increase of 12%. EPS of 40 cents per share on a diluted basis represented an increase of 14% over 35 cents per share last year.
Year-to-date income from operations, before one time net charges, was $86.6 million, compared to $73.0 million last year representing an operating margin increase to 13.1% from 11.3%. Net income before one time net charges was $67.7 million or $1.13 per share, compared with $57.1 million or 93 cents per share last year representing an increase in EPS of 22%.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 39 days at September 30, 2009, compared to 69 days at December 31, 2008.
For the quarter ended September 30, 2009, cash provided by operating activities was $70 million and capital expenditure was $9.6 million. As a result, the company's net cash amounted to $145 million at September 30, 2009, compared to net debt of $4.3 million at December 31, 2008.
Chairman Dr. John Climax commented "I am very pleased with ICON's performance for the first nine months of 2009. Our growth in margins, operating income and earnings was very encouraging. Year to date earnings per share were up 22% over the first nine months of 2008."
"Despite the economic and industry headwinds," said CEO Peter Gray "ICON has continued to improve margins, grow earnings and significantly improve cashflows enabling us to again raise earnings guidance for 2009. While higher than normal cancellations held back net business awards, the levels of business opportunity continue to be strong and we remain optimistic for the future".
The company will hold its third quarter conference call today, October 21, 2009 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://www.iconplc.com. A recording will also be available on the website for 90 days following the call. In addition, a calendar of company events, including upcoming conference presentations, is available on our website, under "Investors". This calendar will be updated regularly.
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including non-GAAP operating and net income and non-GAAP diluted earnings per share. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.
The statements made in this Press Release may contain forward-looking statements that involve a number of risks and uncertainties. In addition to the matters described in this Press Release, the ability to maintain large client contracts or enter into new contracts, maintain client relationships and the ability to manage the opening of new offices, the integration of new business mergers and acquisitions, as well as other risks and uncertainties detailed from time to time in SEC reports filed by ICON, including its Form 20-F, F-1, S-8 and F-3, may affect the actual results achieved by ICON. ICON disclaims any intent or obligation to update these forward-looking statements.
ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specialises in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. With headquarters in Dublin, Ireland, ICON currently, operates from 68 locations in 38 countries and has approximately 7,000 employees. Further information is available at www.iconplc.com.
Source: ICON plc
| ICON plc | |||||||||
| Consolidated Income Statements (Unaudited) (Before one time net charges) | |||||||||
| Three and Nine Months ended September 30, 2009 and September 30, 2008 | |||||||||
| (Dollars, in thousands, except share and per share data) | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||
| 2009 | 2008 | 2009 | 2008 | ||||||
| Gross Revenue | 317,179 | 313,637 | 936,686 | 914,082 | |||||
| Reimbursable expenses | 96,818 | 88,126 | 276,493 | 268,927 | |||||
| Net Revenue | 220,361 | 225,511 | 660,193 | 645,155 | |||||
| Costs and expenses | |||||||||
| Direct costs | 127,179 | 127,948 | 376,493 | 364,113 | |||||
| Selling, general and administrative | 54,369 | 62,494 | 173,637 | 187,328 | |||||
| Depreciation and amortization | 8,404 | 7,937 | 23,420 | 20,676 | |||||
| Total costs and expenses | 189,952 | 198,379 | 573,550 | 572,117 | |||||
| Income from operations | 30,409 | 27,132 | 86,643 | 73,038 | |||||
| Interest expense | (693) | (224) | (2,304) | (743) | |||||
| Income before provision for income taxes | 29,716 | 26,908 | 84,339 | 72,295 | |||||
| Provision for income taxes | 5,765 | 5,355 | 16,687 | 14,493 | |||||
| Minority interest | - | 173 | - | 707 | |||||
| Net income | 23,951 | 21,380 | 67,652 | 57,095 | |||||
| Net income per ordinary share | |||||||||
| Basic | $0.41 | $0.37 | $1.15 | $0.98 | |||||
| Diluted | $0.40 | $0.35 | $1.13 | $0.93 | |||||
| Weighted average number of ordinary shares | |||||||||
| Basic | 58,624,028 | 58,451,960 | 58,579,402 | 58,156,869 | |||||
| Diluted | 59,953,574 | 61,847,265 | 59,781,092 | 61,357,893 | |||||
| ICON plc | |||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | |||||||||
| Three and Nine Months ended September 30, 2009 and September 30, 2008 | |||||||||
| (Dollars, in thousands, except share and per share data) | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||
| 2009 | 2008 | 2009 | 2008 | ||||||
| Gross Revenue | 317,179 | 313,637 | 936,686 | 914,082 | |||||
| Reimbursable expenses | 96,818 | 88,126 | 276,493 | 268,927 | |||||
| Net Revenue | 220,361 | 225,511 | 660,193 | 645,155 | |||||
| Costs and expenses | |||||||||
| Direct costs | 127,179 | 127,948 | 376,493 | 364,113 | |||||
| Selling, general and administrative | 54,369 | 62,494 | 173,637 | 187,328 | |||||
| Depreciation and amortization | 8,404 | 7,937 | 23,420 | 20,676 | |||||
| One -time net charges | - | - | 8,941 | - | |||||
| Total costs and expenses | 189,952 | 198,379 | 582,491 | 572,117 | |||||
| Income from operations | 30,409 | 27,132 | 77,702 | 73,038 | |||||
| Interest expense | (693) | (224) | (2,304) | (743) | |||||
| Income before provision for income taxes | 29,716 | 26,908 | 75,398 | 72,295 | |||||
| Provision for income taxes | 5,765 | 5,355 | 11,973 | 14,493 | |||||
| Minority interest | - | 173 | - | 707 | |||||
| Net income | 23,951 | 21,380 | 63,425 | 57,095 | |||||
| Net income per ordinary share | |||||||||
| Basic | $0.41 | $0.37 | $1.08 | $0.98 | |||||
| Diluted | $0.40 | $0.35 | $1.06 | $0.93 | |||||
| Weighted average number of ordinary shares | |||||||||
| Basic | 58,624,028 | 58,451,960 | 58,579,402 | 58,156,869 | |||||
| Diluted | 59,953,574 | 61,847,265 | 59,781,092 | 61,357,893 | |||||
| ICON plc | |||||
| Summary Balance Sheet Data | |||||
| September 30, 2009 and December 31, 2008 | |||||
| (Dollars, in thousands) | |||||
| September 30, | December 31, | ||||
| 2008 | 2008 | ||||
| (Unaudited) | (Audited) | ||||
| Cash and short-term investments | 172,872 | 101,104 | |||
| Debt | (28,270) | 105,379 | |||
| Net cash/(debt) | 144,602 | (4,275) | |||
| Accounts receivable | 191,962 | 210,535 | |||
| Unbilled revenue | 118,398 | 141,727 | |||
| Payments on account | (172,699) | (121,935) | |||
| Total | 137,661 | 230,327 | |||
| Working Capital | 215,658 | 185,957 | |||
| Total Assets | 922,140 | 867,285 | |||
| Shareholder's Equity | 540,854 | 456,366 | |||
| Source: | ICON plc | ||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||
| Ciaran Murray CFO + 353 1 291 2000 | |||||
| Brendan Brennan Corp FP&A + 353 1 291 2000 | |||||
| all at ICON. | |||||
ICON/ICLR-F
SOURCE: ICON
ICON
Investor Relations
1-888-381-7923
or
Ciaran Murray, Chief Financial Officer
+ 353 -1-291-2000
or
Brendan Brennan, Corporate FP&A
+ 353 -1-291-2000
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