Highlights – Second Quarter 2007
- Second quarter net revenues increased 37% over the prior year, to $147.0 million.
- Income from operations increased by 42%, to $16.1 million.
- Diluted earnings per share increased by 41%, to 45 cents.
- Record $230 million of net new business wins in the quarter, representing a book-to-bill ratio of 1.6.
Dublin, Ireland, July 26, 2007 – ICON (NASDAQ: ICLR), 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, 2007.
Net revenues for the quarter were $147.0 million, representing a 36.9% increase over net revenues of $107.4 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.4 million, calculated in accordance with SFAS 123®, was $16.1 million or 10.9% of revenue, compared to $11.3 million or 10.6% for the same quarter last year. Net income was $13.3 million or 45 cents per share on a diluted basis, compared with $9.3 million or 32 cents per share last year.
Year-to-date, net revenues were $283.1 million, representing a 37.5% increase over the same period last year. Income from operations, after taking non-cash stock compensation charge of $2.6 million calculated in accordance with SFAS 123®, was $30.8 million or 10.9% of revenue, compared to $21.4 million or 10.4% last year. Net income was $25.6 million or 86 cents per share, compared with $16.8 million or 59 cents last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 53 days at June 30, 2007, a decrease from 59 days at March 31, 2007 and unchanged from 53 days at December 31, 2006.
For the quarter ended June 30, 2007, cash provided by operating activities was $22.2 million and capital expenditure was $17.9 million. For the six months, cash flow from operating activities was $19.4 million and capital expenditure was $30.4 million. As a result, the company's cash and short-term investments, net of debt, amounted to $91.1 million at June 30, 2007, compared to $97.9 million at December 31, 2006.
“We are delighted with the second quarter's performance”, commented Chairman Dr. John Climax. “Revenue growth was very strong at 37%, and we made further progress in expanding margins which led to net income growth of 43% and EPS growth of 41%. Excellent net bookings of $230 million brought our backlog to over $1 billion, another milestone in ICON's progress, giving us strong confidence in the outlook for the remainder of the year”
“We recently completed the acquisition of DOCS International, a leading European based clinical research staffing organisation, which will be integrated with ICON's existing US based staffing business. The combined operation will give our clients greater flexibility when they run clinical projects internally, and give them access to a global pool of talent through one vendor”
The company will hold its second quarter conference call today, July 26, 2007 at 10:00 EST [15:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at strRawhttp://www.iconclinical.comstrRaw. 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.
The financial information presented herein has been prepared in accordance with U.S. GAAP.
ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specializes in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. ICON teams have successfully conducted over 1,900 development projects and over 2,300 consultancy engagements across all major therapeutic areas. ICON currently has approximately 5,150 employees, operating from 63 locations in 33 countries. Further information is available at www.iconclinical.com.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 –1-291-2000
Both at ICON.
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ICON plc |
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Consolidated Income Statements (Unaudited) |
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Three and Six Months ended June 30, 2007 and June 30, 2006 |
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(Dollars, in thousands, except share and per share data) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
June 30, |
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June 30, |
June 30, |
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2007 |
2006 |
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2007 |
2006 |
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Gross Revenue |
207,383 |
153,744 |
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394,123 |
294,388 |
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Subcontractor costs |
60,336 |
46,308 |
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110,987 |
88,457 |
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Net Revenue |
147,047 |
107,436 |
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283,136 |
205,931 |
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Costs and expenses |
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Direct costs |
83,875 |
60,014 |
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162,432 |
114,718 |
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Selling, general and administrative |
42,662 |
32,397 |
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81,346 |
62,677 |
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Depreciation and amortization |
4,450 |
3,689 |
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8,606 |
7,134 |
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Total costs and expenses |
130,987 |
96,100 |
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252,384 |
184,529 |
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Income from operations |
16,060 |
11,336 |
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30,752 |
21,402 |
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Interest income (net) |
1,019 |
938 |
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2,063 |
1,585 |
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Income before provision of income taxes |
17,079 |
12,274 |
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32,815 |
22,987 |
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Provision for income taxes |
3,758 |
2,943 |
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7,186 |
6,073 |
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Minority interest |
6 |
34 |
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48 |
76 |
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Net income |
13,315 |
9,297 |
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25,581 |
16,838 |
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Net income per ordinary share |
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Basic |
$0.46 |
$0.33 |
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$0.89 |
$0.60 |
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Diluted |
$0.45 |
$0.32 |
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$0.86 |
$0.59 |
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Weighted average number of ordinary shares |
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Basic |
28,684,201 |
28,265,490 |
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28,624,350 |
28,174,762 |
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Diluted |
29,685,489 |
28,695,530 |
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29,597,671 |
28,499,356 |
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ICON plc |
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Summary Balance Sheet Data |
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June 30, 2007 and December 31, 2006 |
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(Dollars, in thousands) |
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June 30, |
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December 31, |
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2007 |
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2006 |
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(Unaudited) |
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(Audited) |
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Cash and short-term investments |
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107,042 |
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102,861 |
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Short-term debt |
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(15,947) |
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(5,000) |
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Net cash |
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91,095 |
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97,861 |
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Accounts receivable |
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105,983 |
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108,216 |
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Unbilled revenue |
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104,740 |
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89,977 |
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Payments on account |
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(87,619) |
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(90,394) |
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Total |
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123,104 |
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107,799 |
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Working Capital |
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169,744 |
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160,321 |
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Total Assets |
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521,929 |
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476,341 |
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Shareholder's Equity |
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337,479 |
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302,738 |
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Source: |
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ICON plc |
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Contact: |
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Investor Relations 1-888-381-7923 or |
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Ciaran Murray CFO + 353 1 291 2000 |
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both at ICON. |
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