Highlights – Third Quarter 2007
- Third quarter net revenues increased 38% over the prior year.
- Income from operations increased by 48%, and diluted earnings per share increased by 40%.
- Operating margins expanded from 10.4% last year to 11.2%.
- Net business wins of $230 million in the quarter, representing a book-to-bill ratio of 1.4.
- 2007 guidance raised.
Dublin, Ireland, October 23, 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 third quarter ended September 30, 2007.
Net revenues for the quarter were $166.9 million, representing a 38.3% increase over net revenues of $120.7 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.4 million, was $18.7 million or 11.2% of revenue, compared to $12.6 million or 10.4% for the same quarter last year. Net income was $14.5 million or 49 cents per share on a diluted basis, compared with $10.1 million or 35 cents per share last year.
Year-to-date, net revenues were $450.1 million, representing a 37.8% increase over the same period last year. Income from operations, after taking non-cash stock compensation charge of $4.0 million was $49.5 million or 11% of revenue, compared to $34.0 million or 10.4% last year. Net income was $40.1 million or $1.35 per share, compared with $26.9 million or 94 cents per share, last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 65 days at September 30, 2007, up from 57 days at September 30, 2006.
For the quarter ended September 30, 2007, cash provided by operating activities was $0.6 million and capital expenditure was $19.3 million. For the nine months, cash flow from operating activities was $19.9 million and capital expenditure was $49.7 million. In addition, DOCS International was acquired in July 2007 for consideration of $40.6 million. As a result, cash and short-term investments, net of debt, amounted to $27.7million at September 30, 2007, compared to $97.9 million at December 31, 2006.
“We are delighted with ICON's third quarter performance”, commented Chairman Dr. John Climax. “Revenue growth was very strong and operating margins continued to expand. Excellent net bookings of $230 million, producing a book-to-bill ratio of 1.4, give us strong confidence in the outlook for the remainder of the year. As a result we are increasing our revenue guidance for 2007 to $615 - $625 million and, our EPS guidance to $1.82 - $1.85”
The company will hold its third quarter conference call today, October 23, 2007 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at 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.
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 5,400 employees, operating from 65 locations in 33 countries. Further information is available at www.iconplc.com.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 –1-291-2000
Both at ICON.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ICON plc |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income Statements (Un-audited) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Three and Nine Months ended September 30, 2007 and September 30, 2006 |
|
|||||
|
|
(Dollars, in thousands, except share and per share data) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||
|
|
|
September 30, |
September 30, |
|
September 30, |
September 30, |
|
|
|
|
2007 |
2006 |
|
2007 |
2006 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue |
231,819 |
171,109 |
|
625,942 |
465,497 |
|
|
|
|
|
|
|
|
|
|
|
|
Subcontractor costs |
64,903 |
50,395 |
|
175,890 |
138,852 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
166,916 |
120,714 |
|
450,052 |
326,645 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
Direct costs |
91,675 |
68,428 |
|
254,107 |
183,146 |
|
|
|
Selling, general and administrative |
51,518 |
35,800 |
|
132,864 |
98,477 |
|
|
|
Depreciation and amortization |
5,020 |
3,875 |
|
13,626 |
11,009 |
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
148,213 |
108,103 |
|
400,597 |
292,632 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
18,703 |
12,611 |
|
49,455 |
34,013 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (net) |
16 |
951 |
|
2,079 |
2,536 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision of income taxes |
18,719 |
13,562 |
|
51,534 |
36,549 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
4,158 |
3,423 |
|
11,344 |
9,496 |
|
|
|
Minority interest |
60 |
45 |
|
108 |
121 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
14,501 |
10,094 |
|
40,082 |
26,932 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ordinary share |
|
|
|
|
|
|
|
|
Basic |
$0.50 |
$0.36 |
|
$1.40 |
$0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
$0.49 |
$0.35 |
|
$1.35 |
$0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares |
|
|
|
|
|
|
|
|
Basic |
28,760,726 |
28,351,525 |
|
28,669,798 |
28,333,823 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
29,826,457 |
29,085,080 |
|
29,714,584 |
28,709,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ICON plc |
|||||
|
|
|
|
|
|
|
|
Summary Balance Sheet Data |
|||||
|
|
|||||
|
|
|
|
|
|
|
|
September 30, 2007 and December 31, 2006 |
|||||
|
(Dollars, in thousands) |
|||||
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2007 |
|
2006 |
|
|
|
|
(Un-audited) |
|
(Audited) |
|
Cash and short-term investments |
|
98,206 |
|
102,861 |
|
|
Short-term debt |
|
|
(70,487) |
|
(5,000) |
|
Net cash |
|
|
27,719 |
|
97,861 |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
136,696 |
|
108,216 |
|
Unbilled revenue |
|
|
123,823 |
|
89,977 |
|
Payments on account |
|
|
(94,028) |
|
(90,394) |
|
Total |
|
|
166,491 |
|
107,799 |
|
|
|
|
|
|
|
|
Working Capital |
|
|
127,945 |
|
160,321 |
|
|
|
|
|
|
|
|
Total Assets |
|
|
631,780 |
|
476,341 |
|
|
|
|
|
|
|
|
Shareholder's Equity |
|
|
359,986 |
|
302,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: |
|
ICON plc |
|
|
|
|
|
|
|
|
|
|
|
Contact: |
|
Investor Relations 1-888-381-7923 or |
|||
|
|
|
Ciaran Murray CFO + 353 1 291 2000 |
|
||
|
|
|
both at ICON. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|