DUBLIN, Jul 27, 2010 (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 second quarter ended June 30, 2010.
Net revenues for the quarter were $224 million, representing a 2% increase over net revenues of $220 million for the same quarter last year. On a constant currency basis revenue grew by 3.1%. Year-to-date, net revenues were $443 million, representing a 1% increase over the same period last year.
Income from operations was $25.7 million or 11.5% of revenue, compared to $29.3 million (before one-time net charges) or 13.3% for the same quarter last year. Constant currency operating margin was 11.8%. Net income was $22.9 million or 38 cents per share on a diluted basis, compared to $22.8 million or 38 cents per share last year.
Year-to-date income from operations was $52.5 million, compared to $56.2 million (before one-time net charges) last year representing a margin of 11.8% in 2010 and a margin of 12.8% in 2009. Net income was $45.1 million or 74 cents per share, compared with $43.7 million or 73 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 30 days at June 30, 2010, compared to 33 days at December 31, 2009.
For the quarter ended June 30, 2010, cash provided from operating activities was $35 million and capital expenditure was $7.5 million. As a result, the company's net cash, amounted to $221 million at June 30, 2010, compared to net cash of $194 million at December 31, 2009.
"Overall, we are pleased with our second quarter," commented CEO Mr Peter Gray. "Our net booking of $320m was particularly satisfying, resulting in a strong book to bill of 1.4, and the growth in our backlog to $1.9 bn. However, we are not expecting revenue growth to respond quickly to these awards, and as a result we now anticipate that the outcome for 2010 will be at the lower end of the guidance range given in February".
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.
The company will hold its second quarter conference call today, July 27, 2010 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.
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 39 countries and has approximately 7,500 employees. Further information is available at www.iconplc.com.
| ICON plc | ||||||||||||||
| Consolidated Income Statements (Unaudited) (Before one time net charges) | ||||||||||||||
| Three and Six Months ended June 30, 2010 and June 30, 2009 | ||||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Gross Revenue | 313,087 | 300,969 | 622,638 | 619,507 | ||||||||||
| Reimbursable expenses | 89,336 | 80,968 | 179,775 | 179,675 | ||||||||||
| Net Revenue | 223,751 | 220,001 | 442,863 | 439,832 | ||||||||||
| Costs and expenses | ||||||||||||||
| Direct costs | 130,869 | 125,146 | 262,187 | 249,314 | ||||||||||
| Selling, general and administrative | 58,923 | 58,010 | 111,217 | 119,268 | ||||||||||
| Depreciation and amortization | 8,281 | 7,526 | 17,003 | 15,016 | ||||||||||
| Total costs and expenses | 198,073 | 190,682 | 390,407 | 383,598 | ||||||||||
| Income from operations | 25,678 | 29,319 | 52,456 | 56,234 | ||||||||||
| Net interest income /(expense) | 61 | (875) | (131) | (1,611) | ||||||||||
| Income before provision of income taxes | 25,739 | 28,444 | 52,325 | 54,623 | ||||||||||
| Provision for income taxes | 2,866 | 5,687 | 7,253 | 10,922 | ||||||||||
| Net income | 22,873 | 22,757 | 45,072 | 43,701 | ||||||||||
| Net income per ordinary share | ||||||||||||||
| Basic | $0.38 | $0.39 | $0.76 | $0.75 | ||||||||||
| Diluted | $0.38 | $0.38 | $0.74 | $0.73 | ||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| Basic | 59,667,635 | 58,576,384 | 59,395,142 | 58,557,089 | ||||||||||
| Diluted | 60,768,374 | 59,674,939 | 60,557,687 | 59,716,244 | ||||||||||
| ICON plc | ||||||||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | ||||||||||||||
| Three and Six Months ended June 30, 2010 and June 30, 2009 | ||||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Gross Revenue | 313,087 | 300,969 | 622,638 | 619,507 | ||||||||||
| Reimbursable expenses | 89,336 | 80,968 | 179,775 | 179,675 | ||||||||||
| Net Revenue | 223,751 | 220,001 | 442,863 | 439,832 | ||||||||||
| Costs and expenses | ||||||||||||||
| Direct costs | 130,869 | 125,146 | 262,187 | 249,314 | ||||||||||
| Selling, general and administrative | 58,923 | 58,010 | 111,217 | 119,268 | ||||||||||
| Depreciation and amortization | 8,281 | 7,526 | 17,003 | 15,016 | ||||||||||
| One off items | 8,941 | 8,941 | ||||||||||||
| Total costs and expenses | 198,073 | 199,623 | 390,407 | 392,539 | ||||||||||
| Income from operations | 25,678 | 20,378 | 52,456 | 47,293 | ||||||||||
| Net interest income/(expense) | 61 | (875) | (131) | (1,611) | ||||||||||
| Income before provision of income taxes | 25,739 | 19,503 | 52,325 | 45,682 | ||||||||||
| Provision for income taxes | 2,866 | 973 | 7,253 | 6,208 | ||||||||||
| Net income | 22,873 | 18,530 | 45,072 | 39,474 | ||||||||||
| Net income per ordinary share | ||||||||||||||
| Basic | $0.38 | $0.32 | $0.76 | $0.67 | ||||||||||
| Diluted | $0.38 | $0.31 | $0.74 | $0.66 | ||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| Basic | 59,667,635 | 58,576,384 | 59,395,142 | 58,557,089 | ||||||||||
| Diluted | 60,768,374 | 59,674,939 | 60,557,687 | 59,716,244 | ||||||||||
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| June 30, 2010 and December 31, 2009 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2010 | 2009 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Net cash | 220,762 | 194,028 | |||||||||
| Accounts receivable | 157,303 | 191,924 | |||||||||
| Unbilled revenue | 86,631 | 92,080 | |||||||||
| Payments on account | (141,338) | (165,198) | |||||||||
| Total | 102,596 | 118,806 | |||||||||
| Working Capital | 280,122 | 235,906 | |||||||||
| Total Assets | 882,356 | 908,398 | |||||||||
| Shareholder's Equity | 598,127 | 572,246 | |||||||||
| Source: | ICON plc | ||||||||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||||||||
| Ciaran Murray CFO + 353 1 291 2000 | |||||||||||
|
Brendan Brennan VP Corp FP&A +353 12912000
All at ICON. |
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ICON/ICLR-F
SOURCE: ICON plc
ICON
Investor Relations 1-888-381-7923
or
Ciaran Murray Chief Financial Officer
+ 353 -1-291-2000
or
Brendan Brennan Corporate VP Corp FP&A
+ 353 -1-291-2000
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