This website uses cookies to provide you with the best experience. By using this site you agree to our use of cookies. Please read our cookie notice for more information.

« Back

ICON Reports First Quarter 2015

April 28, 2015

Highlights

  • Quarter 1 net revenue increased 11% year on year to $388 million, a 13% increase on a constant organic dollar basis.
  • Income from operations was $66.7 million or 17.2% of revenue as reported. Excluding a one off foreign exchange revaluation gain, operating margin equated to 16.4%.
  • Earnings per share were 90 cents. Excluding the one off foreign exchange revaluation gain, earnings per share were 86 cents.
  • Gross business wins were $516 million, representing a gross book to bill of 1.33. Net business wins were $454 million, representing a net book to bill of 1.17.
  • As a result of foreign exchange movements, 2015 earnings guidance increased from a range of $3.45 - $3.60 to a range of $3.60 - $3.70 and revenue decreased from a range of $1,610 - $1,675 million to a range of $1,600 - $1,650 million.

DUBLIN--(BUSINESS WIRE)-- ICON plc (NASDAQ: ICLR), a global provider of drug development solutions and services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the first quarter ended March 31, 2015.

In the first quarter net revenue grew 11% year on year to $388.2 million from $349.6 million in the same quarter last year.

Income from operations was $66.7 million or 17.2% of revenue, compared to $43 million or 12.3% for the same quarter last year.

Net income was $56 million or 90 cents per share on a diluted basis, compared with $36.2 million or 57 cents per share for the same quarter last year.

Operating income margin in quarter 1 included a one off foreign exchange revaluation gain of approximately $2.9 million. When this is excluded, operating income margin in the quarter equated to 16.4% and earnings per share were 86 cents.

Taking into account recent foreign exchange movements, earnings guidance for the full year 2015 has been increased from a range of $3.45 - $3.60 to a range of $3.60 - $3.70 and revenue decreased from a range $1,610 - $1,675 million to a range of $1,600 - $1,650 million.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 47 days at March 31, 2015, compared with 40 days at the end of December 2014.

For the quarter ended March 31, 2015, cash generated from operating activities was $61.1 million and capital expenditure was $10.7 million. In addition during the quarter, the acquisition of MediMedia Pharma Solutions was completed for an initial cash consideration of $105 million. Consequently the company's net cash amounted to $172 million at March 31, 2015, compared to net cash of $216 million at December 31, 2014.

CEO Ciaran Murray commented, "Our first quarter represents a solid start to 2015. Revenue grew by 13% year on year on a constant dollar organic basis. Excluding the one-time foreign exchange benefit, our operating margins expanded to 16.4% and earnings per share were 86 cents, an increase of 51% over last year. During the quarter we saw a further strengthening of the US dollar and as a result we have increased earnings guidance for the full year from a range of $3.45 - $3.60 to a range of $3.60 - $3.70 and decreased revenue guidance from a range of $1,610 - $1,675 million to a range of $1,600 - $1,650 million."

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.

ICON will hold its first quarter conference call today, April 28, 2015 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://investor.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.

This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available, including current economic and industry conditions. These statements are not guarantees of future performance or actual results, and actual results, developments and business decisions may differ from those stated in this press release. The forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements, including, but not limited to, the ability to enter into new contracts, maintain client relationships, manage the opening of new offices and offering of new services, the integration of new business mergers and acquisitions, as well as economic and global market conditions and other risks and uncertainties detailed from time to time in SEC reports filed by ICON, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not place undue reliance on these forward-looking statements when making investment decisions. The word "expected" and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in SEC reports filed by ICON, including its Form 20-F, F-1, S-8 and F-3, which are available on the SEC's website at http://www.sec.gov.

ICON plc is a global provider of drug development solutions and 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 81 locations in 38 countries and has approximately 11,200 employees. Further information is available at www.iconplc.com.

ICON plc

Consolidated Income Statements (Unaudited)

Three Months ended March 31, 2015 and March 31, 2014

(Dollars, in thousands, except share and per share data)

 

 

Three Months Ended

    March 31,   March 31,
2015 2014
 
Gross Revenue 503,366 476,544
 
Reimbursable expenses 115,135 126,910
     
Net Revenue 388,231 349,634
 
Costs and expenses
Direct Costs 228,078 216,140
Selling, general and administrative 79,555 78,948
Depreciation and amortisation 13,925 11,548
     
Total costs and expenses 321,558 306,636
 
Income from operations 66,673 42,998
 
Net interest income / (expense) (3) 91
     
Income before provision for income taxes 66,670 43,089
 
Provision for income taxes (10,801) (6,894)
     
 
Net Income 55,869   36,195
 
Net income per ordinary share
Basic $0.93   $0.59
 
Diluted $0.90   $0.57
 
Weighted average number of ordinary shares
Basic 60,281,059 61,776,643
 
Diluted 61,856,347 63,225,797
 

 

ICON plc

Summary Balance Sheet Data

March 31, 2015 and December 31, 2014

(Dollars, in thousands)

   
March 31, December 31,
2015 2014
(Unaudited) (Audited)
 
 
Cash and short-term investments 191,675 216,000
Debt (20,000) -
Net (debt)/cash 171,675 216,000
 
Accounts receivable 361,780 370,956
Unbilled revenue 156,595 146,163
Payments on account (253,043) (280,097)
Total 265,332 237,022
 
Working Capital 253,048 281,148
 
Total Assets 1,604,901 1,528,850
 
Shareholder's Equity 999,269 950,206
 
 

ICON/ICLR-F

ICON plc
Investor Relations, 1-888-381-7923
or
Brendan Brennan, + 353 -1-291-2000
Chief Financial Officer
or
Simon Holmes, + 353 -1-291-2000
EVP Investor Relations and Corporate Development

Source: ICON plc

News Provided by Acquire Media



Search Investor