Highlights
- Net business wins in the quarter of
$867 million ; a book to bill of 1.21.
- Record closing backlog of
$8.7 billion , an increase of 10.4% year on year.
- Quarter 1 reported revenue of
$715.1 million representing a 6.0% year on year increase or 6.5% on a constant currency basis.
- Adjusted earnings per share attributable to the Group for the quarter of
$1.70 , an increase of 4.3% over Quarter 1 2019.
$175.0 million worth of stock repurchased at an average price of$141.68 .
- COVID-19 expected to negatively impact operational and financial performance during FY20.
- FY20 financial guidance withdrawn due to the level of current uncertainty. Further details regarding ICON’s Q2 financial outlook will be provided on its first quarter conference call.
- Cost containment plan being actively implemented across the Group.
- Strong balance sheet and liquidity position remains with net cash of
$134.4 million .
CEO Dr.
Since March we have seen the escalation of COVID-19 into a true global pandemic impacting our operations. Accordingly, we are withdrawing our FY20 financial guidance due to the current level of uncertainty. While all efforts are being made to mitigate the impact, the welfare and safety of ICON’s employees, customers and patients remains the Company’s highest priority.”
First Quarter 2020 Results
Gross business wins in the first quarter were
Reported revenue for Quarter 1 was
Reported income from operations in the quarter was
Reported net income attributable to the Group for the quarter was
Adjusted earnings per share attributable to the Group on a diluted basis was
On a comparative basis, non-GAAP days sales outstanding were 55 days at
Cash generated from operating activities for the quarter was
COVID-19 Update
ICON has been closely monitoring and assessing the rapidly evolving COVID-19 situation. The welfare and safety of ICON’s employees, customers and patients remains the Company’s highest priority. ICON is taking guidance from global health authorities, such as
Starting with our Chinese operations in February we have since experienced the growing impact of COVID-19 on our global business. This is particularly prevalent in our clinical business with approximately 65% of our global sites impacted in some way by the pandemic. Furthermore, we are seeing Site ID & enrollment delays due to site closures and movement restrictions on patients. We are proactively reviewing and agreeing to alternative approaches with customers on a study-by-study basis, including remote and risk based monitoring and ‘at home’ services delivered through our
Cost Containment Plan
As the situation is unprecedented and rapidly evolving, it is not possible to accurately predict the impact on our business beyond the short term. To protect our business we are actively working through a number of measures we can take during this period. These initiatives include the following: temporary senior leadership and employee salary reductions, a recruitment freeze in certain business units, reducing contractor costs and the reduction of non-labour variable expenditure. Measures will continue to adapt as the situation evolves.
Balance Sheet
ICON is well positioned given its current financial profile and maintains an industry leading balance sheet, has robust cash generation and good access to liquidity. As of 31st
Financial Outlook
Given the current uncertainty presented by the COVID-19 pandemic, ICON is withdrawing its financial guidance for FY20, which was announced in
Other Information
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.
Adjusted earnings per share attributable to the Group (Non-GAAP) has been computed by dividing net income attributable to the Group by the weighted average number of shares outstanding. GAAP earnings per share attributable to the Group has been computed by dividing net income attributable to the Group plus a GAAP charge associated with non-controlling interest in
ICON will hold its first quarter conference call tomorrow,
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, the impact of COVID-19 on our business, as well as other economic and global market conditions and other risks and uncertainties detailed from time to time in
Source:
Contact: Investor Relations +1888 381 7923 or
Brendan Brennan Chief Financial Officer +353 1 291 2000
All at ICON.
Condensed Consolidated Statements of Operations
(Non-GAAP)
Three Months ended
(Dollars, in thousands, except share and per share data)
(Unaudited)
|
|
|
|
Three Months Ended |
||||||
|
|
|
|
|
|
March |
March |
|||
|
|
|
|
|
|
31, 2020 |
31, 2019 |
|||
|
Revenue |
|
|
|
|
715,102 |
674,852 |
|||
|
|
|
|
|
|
|
|
|||
|
Costs and expenses: |
|
|
|
|
|
|
|||
|
Direct costs |
|
|
|
|
(505,293) |
(475,497) |
|||
|
Selling, general and administrative expense |
|
|
|
|
(87,196) |
(81,912) |
|||
|
Depreciation and amortization |
|
|
|
|
(16,322) |
(15,497) |
|||
|
|
|
|
|
|
|
|
|||
|
Total costs and expenses |
|
|
|
|
(608,811) |
(572,906) |
|||
|
|
|
|
|
|
|
|
|||
|
Income from operations |
|
|
|
|
106,291 |
101,946 |
|||
|
|
|
|
|
|
|
|
|||
|
Net interest expense |
|
|
|
|
(1,372) |
(1,609) |
|||
|
|
|
|
|
|
|
|
|||
|
Income before provision for income taxes |
|
|
|
|
104,919 |
100,337 |
|||
|
|
|
|
|
|
|
|
|||
|
Provision for income taxes |
|
|
|
|
(12,590) |
(12,040) |
|||
|
|
|
|
|
|
|
|
|||
|
Net income |
|
|
|
|
92,329 |
88,297 |
|||
|
|
|
|
|
|
|
|
|||
|
Net income attributable to non-controlling interest |
|
|
|
|
(633) |
- |
|||
|
|
|
|
|
|
|
|
|||
|
Net income attributable to the Group |
|
|
|
|
91,696 |
88,297 |
|||
|
|
|
|
|
|
|
|
|||
|
Adjusted net income per Ordinary Share attributable to the Group: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Adjusted basic (non-GAAP) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Adjusted diluted (non-GAAP) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Weighted average number of Ordinary Shares outstanding: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Basic |
|
|
|
|
53,348,355 |
53,845,407 |
|||
|
|
|
|
|
|
|
|
|||
|
Diluted |
|
|
|
|
53,905,022 |
54,142,510 |
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
Condensed Consolidated Statements of Operations
(US GAAP)
Three Months ended
(Dollars, in thousands, except share and per share data)
(Unaudited)
|
|
|
|
Three Months Ended |
||||||
|
|
|
|
|
|
March |
March |
|||
|
|
|
|
|
|
31, 2020 |
31, 2019 |
|||
|
Revenue |
|
|
|
|
715,102 |
674,852 |
|||
|
|
|
|
|
|
|
|
|||
|
Costs and expenses: |
|
|
|
|
|
|
|||
|
Direct costs |
|
|
|
|
(505,293) |
(475,497) |
|||
|
Selling, general and administrative expense |
|
|
|
|
(87,196) |
(81,912) |
|||
|
Depreciation and amortization |
|
|
|
|
(16,322) |
(15,497) |
|||
|
|
|
|
|
|
|
|
|||
|
Total costs and expenses |
|
|
|
|
(608,811) |
(572,906) |
|||
|
|
|
|
|
|
|
|
|||
|
Income from operations |
|
|
|
|
106,291 |
101,946 |
|||
|
|
|
|
|
|
|
|
|||
|
Net interest expense |
|
|
|
|
(1,372) |
(1,609) |
|||
|
|
|
|
|
|
|
|
|||
|
Income before provision for income taxes |
|
|
|
|
104,919 |
100,337 |
|||
|
|
|
|
|
|
|
|
|||
|
Provision for income taxes |
|
|
|
|
(12,590) |
(12,040) |
|||
|
|
|
|
|
|
|
|
|||
|
Net income |
|
|
|
|
92,329 |
88,297 |
|||
|
|
|
|
|
|
|
|
|||
|
Net income attributable to non-controlling interest |
|
|
|
|
(633) |
- |
|||
|
|
|
|
|
|
|
|
|||
|
Net income attributable to the Group |
|
|
|
|
91,696 |
88,297 |
|||
|
|
|
|
|
|
|
|
|||
|
Net income per Ordinary Share attributable to the Group: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Basic |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Diluted |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Weighted average number of Ordinary Shares outstanding: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Basic |
|
|
|
|
53,348,355 |
53,845,407 |
|||
|
|
|
|
|
|
|
|
|||
|
Diluted |
|
|
|
|
53,905,022 |
54,142,510 |
|||
|
|
|
||||||||
Summary Consolidated Balance Sheet Data
(Dollars, in thousands)
|
|
|
|
|
|
2020 |
2019 |
|
|
(Unaudited) |
(Audited) |
|
|
|
|
|
|
|
|
|
Cash and short-term investments |
484,099 |
569,937 |
|
Debt |
(349,734) |
(349,640) |
|
Net cash/(debt) |
134,365 |
220,297 |
|
|
|
|
|
Net Accounts Receivable |
585,865 |
583,489 |
|
|
|
|
|
Working Capital |
346,326 |
493,728 |
|
|
|
|
|
Total Assets |
2,841,332 |
2,907,512 |
|
|
|
|
|
Shareholder's Equity |
1,513,852 |
1,618,055 |
|
|
|
|
ICON/ICLR-F
View source version on businesswire.com: https://www.businesswire.com/news/home/20200422005956/en/
Investor Relations +1 888 381 7923 or
Brendan Brennan Chief Financial Officer +353 1 291 2000
http://www.iconplc.com
Source: