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 Full-Year 2008 revenue growth of 37% operating income growth of 44% and EPS growth of 38% (NASDAQ:ICLR) (ISIN:IE0005711209)

February 23, 2009

DUBLIN, Ireland, Feb 23, 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 fourth quarter ended December 31, 2008.

Full year, net revenues were $865 million, representing a 37.2% increase over last year. Income from operations, after taking non-cash stock compensation charge of $6.1 million, was $99.5 million or 11.5% of revenue, compared to $69.2 million or 11.0% last year. Net income was $78.1 million or $1.30 per share, compared with $56.0 million or $0.94 per share, last year.

Net revenues for the quarter were $220.1 million, representing a 21.8% increase over net revenues of $180.7 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.6 million, was $26.5 million or 12.0% of revenue, compared to $19.8 million or 11.0% for the same quarter last year. Net income was $21.0 million or 35 cents per share on a diluted basis, compared with $15.9 million or 26 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 69 days at December 31, 2008, on a like for like basis compared to 66 days at December 31, 2007.

For the quarter ended December 31, 2008, cash used in operating activities was $4.8 million and capital expenditure was $14.3 million. Full year 2008 cash flow from operating activities was $81.3 million and capital expenditure was $67.9 million. In addition, Healthcare Discoveries was acquired in February 2008 for consideration of $11.8 million and Prevalere Life Sciences was acquired in November for a consideration of $37.6 million. As a result, net debt amounted to $4.3 million at December 31, 2008, compared to $23.8 million of net cash at December 31, 2007.

"2008 has been another outstanding year for ICON," commented Chairman Dr. John Climax. "With year on year revenue growth of 37% and operating income growth of 44%, 2008 represents the second consecutive year of such exceptional performance."

Commenting on the quarter, CEO Peter Gray said "We are very satisfied with our performance in quarter four. Revenues were up 22%, margins held strong at 12% and EPS was up 35%. With our backlog at $1.74bn we have entered 2009 in a good position, although the difficult economic climate has put some customers under pressure and has created a degree of uncertainty. We remain positive, though cautious, as 2009 commences."

The company will hold its fourth quarter conference call today, February 23, 2009 at 9:00 EST [14:00 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.

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 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.

ICON/ICLR-F

ICON plc
Consolidated Income Statements
Three and Twelve Months ended December 31, 2008 and December 31, 2007
(Dollars, in thousands, except share and per share data)
Three Months EndedTwelve Months Ended
December 31,December 31,December 31,December 31,
2008200720082007
Gross Revenue 295,370 241,531 1,209,451 867,473
Reimbursable expenses 75,277 60,861 344,203 236,751
Net Revenue 220,093 180,670 865,248 630,722
Costs and expenses
Direct costs 125,125 100,372 489,238 354,479
Selling, general and administrative 61,450 55,129 248,778 187,993
Depreciation and amortization 7,052 5,382 27,728 19,008
Total costs and expenses 193,627 160,883 765,744 561,480
Income from operations 26,466 19,787 99,504 69,242
Interest (expense)/income (481) 659 (1,224) 2,738
Income before provision of income taxes 25,985 20,446 98,280 71,980
Provision for income taxes 5,474 4,486 19,967 15,830
Minority Interest (514) 79 193 187
Net income 21,025 15,881 78,120 55,963
Net income per ordinary share
Basic $0.36 $0.28 $1.34 $0.97
Diluted $0.35 $0.26 $1.30 $0.94
Weighted average number of ordinary shares
Basic 58,509,852 57,623,388 58,245,240 57,410,544
Diluted 59,902,857 59,950,100 60,221,587 59,495,928
ICON plc
Summary Balance Sheet Data
December 31, 2008 and December 31, 2007
(Dollars, in thousands)
December 31,December 31,
20082007
(audited)(audited)
Cash and short-term investments 101,104 118,633
Debt 105,379 94,829
Net (debt)/cash (4,275) 23,804
Accounts receivable 210,535 129,865
Unbilled revenue 141,727 144,661
Payments on account (121,935) (96,553)
Total 230,327 177,973
Working Capital 185,957 193,271
Total assets 867,285 693,138
Shareholders' equity 456,366 388,400
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

SOURCE: ICON plc

ICON plc
Investor Relations 1-888-381-7923
or
Ciaran Murray CFO
+ 353 -1-291-2000

Copyright Business Wire 2009



Search Investor