News Release

Highlights — Third Quarter Fiscal 2013.

• Quarter 3 net revenue increased 19% year on year to $340 million.
• Income from operations was $33.2 million or 9.8% of revenue.
• Earnings per share was 45 cents.
• Gross business wins were $471 million, representing a gross book to bill of 1.4. Net business wins were $415 million, representing a net book to bill of 1.2.
• FY 2013 Guidance updated: Revenue in the range of $1,325 million - $1,330 million and EPS in the range of $1.67 - $1.70.

DUBLIN--(BUSINESS WIRE)-- ICON plc, (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, 2013.

Net revenues grew 19% year on year to $339.8 million from $285.5 million in Q3 2012.

Income from operations was $33.2 million or 9.8% of revenue, compared to $20.9 million or 7.3% for the same quarter last year.

Net income was $27.8 million or 45 cents per share on a diluted basis, compared with $17.7 million or 29 cents per share last year.

Year to date net revenues for 2013 increased 22% to $991 million from $815 million in 2012.

Year to date income from operations, excluding restructuring charges, was $91.5 million or 9.2% of revenue, compared with $49.3m or 6.0% of revenue in the previous year.

Year to date net income, excluding restructuring charges, was $76.5 million or $1.23 per share on a diluted basis, compared with $39.6 million or 66 cents per diluted share last year.

Year to date income from operations on a GAAP basis was $82.5 million, and year to date net income on a GAAP basis was $69.3 million or $1.12 per share.

Guidance for the full year 2013 has been updated with revenue expected to be in the range of $1.325 billion - $1.33 billion and EPS guidance in the range of $1.67 - $1.70.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 40 days at September 30, 2013, compared with 40 days at the end of December 2012.

For the quarter ended September 30, 2013, cash generated from operating activities was $43.6 million, after expenditure of $15.1 million on prior period acquisition earn outs and capital expenditure of $6.2 million. The company's net cash amounted to $218.6 million at September 30, 2013, compared to net cash of $190 million at December 31, 2012.

CEO Ciaran Murray commented, "For the quarter we are reporting revenue growth of 19% year on year and operating margins of 9.8%. We booked $415 million of net new business wins or a book to bill of 1.2, leaving us with a closing backlog of $2.97 billion. Consequently we are raising our revenue guidance to the range of $1.325 -$1.330 billion and our earnings per share guidance to the range of $1.67-$1.70 for the financial year 2013."

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 third quarter conference call today, October 24, 2013 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.

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 reports filed with the US Securities and Exchange Commission 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 77 locations in 38 countries and has approximately 10,300 employees. Further information is available at www.iconplc.com.

Source: ICON plc

All at ICON.

ICON/ICLR-F

ICON plc

Consolidated Income Statements (Unaudited)

(Before restructuring and other items)

Three and Nine Months ended September 30, 2013 and September 30, 2012

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

			Three Months Ended				Nine Months Ended
			September 30,		September 30,		September 30,		September 30,
			2013		2012		2013		2012
	Gross Revenue		445,598		374,965		1,334,283		1,097,640
	Reimbursable expenses		105,788		89,463		343,465		282,798
	Net Revenue		339,810		285,502		990,818		814,842
	Costs and expenses
	Direct costs		213,666		183,332		630,258		525,743
	Selling, general and administrative		81,408		70,690		234,520		207,615
	Depreciation and amortization		11,575		10,601		34,551		32,233
	Total costs and expenses		306,649		264,623		899,329		765,591
	Income from operations		33,161		20,879		91,489		49,251
	Net interest expense		(56)		(252)		(341)		(518)
	Income before provision for income taxes		33,105		20,627		91,148		48,733
	Provision for income taxes		5,297		2,889		14,633		9,129
	Net income		27,808		17,738		76,515		39,604
	Net income per ordinary share
	Basic		$0.46		$0.30		$1.26		$0.66
	Diluted		$0.45		$0.29		$1.23		$0.66
	Weighted average number of ordinary shares
	Basic		61,069,260		59,754,010		60,732,605		59,939,570
	Diluted		62,473,645		60,366,137		61,977,026		60,391,199

ICON plc

Consolidated Income Statements (Unaudited)

(US GAAP)

Three and Nine Months ended September 30, 2013 and September 30, 2012

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

		Three Months Ended				Nine Months Ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012
Gross Revenue		445,598		374,965		1,334,283		1,097,640
Reimbursable expenses		105,788		89,463		343,465		282,798
Net Revenue		339,810		285,502		990,818		814,842
Costs and expenses
Direct costs		213,666		183,332		630,258		525,743
Selling, general and administrative		81,408		70,690		234,520		207,615
Depreciation and amortization		11,575		10,601		34,551		32,233
Restructuring and other items		-		-		9,033		5,636
Total costs and expenses		306,649		264,623		908,362		771,227
Income from operations		33,161		20,879		82,456		43,615
Net interest expense		(56)		(252)		(341)		(518)
Income before provision for income taxes		33,105		20,627		82,115		43,097
Provision for income taxes		5,297		2,889		12,783		8,424
Net income		27,808		17,738		69,332		34,673
Net income per ordinary share
Basic		$0.46		$0.30		$1.14		$0.58
Diluted		$0.45		$0.29		$1.12		$0.57
Weighted average number of ordinary shares
Basic		61,069,260		59,754,010		60,732,605		59,939,570
Diluted		62,473,645		60,366,137		61,977,026		60,391,199

ICON plc   Summary Balance Sheet Data   September 30, 2013 and December 31, 2012   (Dollars, in thousands)
		September 30,		December 31,
		2013		2012
		(Unaudited)		(Audited)
Net cash		218,598		190,230
Accounts receivable		360,129		285,419
Unbilled revenue		119,766		112,483
Payments on account		(282,549)		(219,467)
Total		197,346		178,435
Working Capital		299,709		250,326
Total Assets		1,362,068		1,202,108
Shareholder's Equity		854,519		754,575

ICON plc
Investor Relations
1-888-381-7923
or
Brendan Brennan, CFO
+ 353 1 291 2000
or
Simon Holmes, EVP IR & Corporate Development
+3531 291 2000
http://www.iconplc.com

Source: ICON plc

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