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ICON Reports 22% Increase in EPS and Strong Cash Flows (NASDAQ:ICLR) (ISIN:IE0005711209)

July 22, 2009

DUBLIN, Jul 22, 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 the second quarter ended June 30, 2009.

Net revenues for the quarter were $220 million, representing a 1% increase over net revenues of $218.3 million for the comparative quarter last year. Year-to-date, net revenues were $439.8 million, representing a 5% increase over the same period last year.

Before one time net charges income from operations was $29.3 million or 13.3% of revenue, compared to $24.4 million or 11.2% for the same quarter last year. Net income was $22.8 million or 38 cents per share on a diluted basis, compared with $18.8 million or 31 cents per share last year.

Before one time net charges year-to-date income from operations was $56.2 million, compared to $45.9 million last year representing a margin of 12.8% in 2009 v a margin of 10.9% in 2008. Net income was $43.7 million or 73 cents per share, compared with $35.7 million or 59 cents last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 49 days at June 30, 2009, compared to 59 days at March 31, 2009.

For the quarter ended June 30, 2009, cash provided from operating activities was $103 million and capital expenditure was $8.3 million. As a result, the company's net cash, amounted to $83.2 million at June 30, 2009, compared to net debt of $2.2 million at March 31, 2009.

Chairman Dr. John Climax commented "I am very pleased with ICON's performance for the first six months of 2009. Our growth in margins, operating income and earnings was very encouraging. Year to date revenue was 5% ahead of prior year and earnings per share were up 24% over the first six months of 08."

"In the current market, we are pleased with the results for the quarter", said CEO Peter Gray. "We continue to expand margin and as a result we increased operating income by 20% compared to the same period last year. In addition we are now amending guidance for revenue for the remainder of 2009 to $880 - $900 million and firming our EPS guidance, before one time net charges to, $1.38 -$1.44."

During the quarter the company undertook a number of cost reduction steps which led to one time gross restructuring costs of $13.4 million. An offsetting credit from government incentive payments relating to prior periods resulted in a net charge of $8.9 million. In addition, tax credits amounting to a further $4.7 million reduced the provision for income tax. Thus the overall net one time charge was $4.2 million. US GAAP operating income after these items amounted to $20.4 million or 9.3% of revenue and year-to-date operating income amounts to $47.3 million or 10.8% of revenue. US GAAP net income for the quarter is $18.5 million or 31 cents per share and for the year-to-date net income is $39.5 million or 66 cents.

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 company will hold its second quarter conference call today, July 22, 2009 at 10:00 EST [15:00 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.

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 71 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 Six Months ended June 30, 2009 and June 30, 2008
(Dollars, in thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30,June 30,June 30,June 30,
20092008 20092008
Gross Revenue 300,969 316,592 619,507 600,445
Reimbursable expenses 80,968 98,292 179,675 180,801
Net Revenue 220,001 218,300 439,832 419,644
Costs and expenses
Direct costs 125,146 122,976 249,314 236,165
Selling, general and administrative 58,010 64,289 119,268 124,834
Depreciation and amortization 7,526 6,641 15,016 12,739
Total costs and expenses 190,682 193,906 383,598 373,738
Income from operations 29,319 24,394 56,234 45,906
Net interest expense (875) (476) (1,611) (519)
Income before provision of income taxes 28,444 23,918 54,623 45,387
Provision for income taxes 5,687 4,891 10,922 9,138
Minority interest - 206 - 534
Net income 22,757 18,821 43,701 35,715
Net income per ordinary share
Basic $0.39 $0.32 $0.75 $0.62
Diluted $0.38 $0.31 $0.73 $0.59
Weighted average number of ordinary shares
Basic 58,576,384 58,213,388 58,557,089 58,009,324
Diluted 59,674,939 60,313,126 59,716,244 60,167,978
ICON plc
Consolidated Income Statements (Unaudited) (US GAAP)
Three and Six Months ended June 30, 2009 and June 30, 2008
(Dollars, in thousands, except share and per share data)
Three Months EndedSix Months Ended
June 30,June 30, June 30,June 30,
2009200820092008
Gross Revenue 300,969 316,592 619,507 600,445
Reimbursable expenses 80,968 98,292 179,675 180,801
Net Revenue 220,001 218,300 439,832 419,644
Costs and expenses
Direct costs 125,146 122,976 249,314 236,165
Selling, general and administrative 58,010 64,289 119,268 124,834
Depreciation and amortization 7,526 6,641 15,016 12,739
One off items 8,941 - 8,941 -
Total costs and expenses 199,623 193,906 392,539 373,738
Income from operations 20,378 24,394 47,293 45,906
Net interest expense (875) (476) (1,611) (519)
Income before provision of income taxes 19,503 23,918 45,682 45,387
Provision for income taxes 973 4,891 6,208 9,138
Minority interest - 206 - 534
Net income 18,530 18,821 39,474 35,715
Net income per ordinary share
Basic $0.32 $0.33 $0.67 $0.62
Diluted $0.31 $0.31 $0.66 $0.59
Weighted average number of ordinary shares
Basic 58,576,384 58,213,388 58,557,089 58,009,324
Diluted 59,674,939 60,313,126 59,716,244 60,167,978
ICON plc
Summary Balance Sheet Data
June 30, 2009 and December 31, 2008
(Dollars, in thousands)
June 30,December 31,
20092008
(Unaudited)(Audited)
Cash and short-term investments 147,304 101,104
Debt 64,107 105,379
Net cash/(debt) 83,197 (4,275)
Accounts receivable 208,461 210,535
Unbilled revenue 114,028 141,727
Payments on account (158,823) (121,935)
Total 163,666 230,327
Working Capital 197,473 185,957
Total Assets 897,478 867,285
Shareholder's Equity 507,924 456,366
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 1 291 2000
both at ICON.

http://www.iconplc.com

ICON/ICLR-F

SOURCE: ICON plc

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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