FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 under
the Securities Exchange Act of 1934
For the quarterly period ended November 30, 2004
ICON plc
(Registrant's name)
0-29714
(Commission file number)
South County Business Park, Leopardstown, Dublin 18, Ireland.
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Yes X No
Indicate by check mark whether the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X
Indicate by check mark whether the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82 N/A
Other Events.
The registrant hereby incorporates by reference the press release attached
hereto as Exhibit 99.1 into this report.
Financial Statements and Exhibits.
(c) The following Exhibits are filed as part of this report:
EXHIBIT NO. DESCRIPTION
99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ICON plc
January 6, 2005 /s/ Sean Leech
- ------------------------ -------------------------------
Date Sean Leech
Chief Financial Officer
Exhibit 99.1
ICON reports a 9% increase in net revenues, EPS of $0.41 and net new business
awards of $120 million for the Second Quarter FY 2005 (NASDAQ:ICLR)
Highlights - Second Quarter Fiscal 2005
* Second quarter net revenues increased 9% over the second quarter of fiscal
2004 to $79.5 million and increased 11% on a year-to-date basis.
* Income from operations decreased 16% over the second quarter of fiscal 2004
to $7.0 million and increased 3% in the six months to November 30, 2004.
* Diluted earnings per share decreased 9% for the second quarter to 41 cents
compared to 45 cents in same quarter last year. Year-to-date diluted
earnings per share was 93 cents compared to 92 cents for the comparable
period last year.
* $120 million of net new business awarded to ICON during the quarter.
Dublin, Ireland, January 6, 2005 - ICON plc (NASDAQ: ICLR), a global contract
clinical research organisation, which has approximately 2,600 employees
providing services to the pharmaceutical, biotech and medical device industries
from 37 locations in 23 countries worldwide, today reported the financial
results for its second quarter ended November 30, 2004.
Net revenues for the quarter were $79.5 million, representing a 9% increase over
net revenues of $73.2 million for the same quarter last year. Excluding the
impact of acquisitions, revenue growth for the quarter was 6% over the same
quarter last year.
Income from operations for the quarter was $7.0 million, which represents a
decrease of 16% from the $8.4 million reported for the second quarter last year.
Operating margin for the quarter was 8.8% compared with 11.4% for the equivalent
period last year. Net income for the quarter was $5.8 million or 41 cents per
share, on a diluted basis, compared with $6.3 million or 45 cents per share for
the second quarter last year.
In the six months to November 30, 2004, net revenues were $157.8 million,
representing an 11% increase over net revenues of $142.1 million reported for
the first six months of last year. Excluding the impact of acquisitions, revenue
growth was 7% for the six months ending November 30, 2004.
Income from operations for the six months to November 30, 2004 was $16.5
million, representing an increase of 3% from the $16.0 million reported for the
same period last year. Operating margin for the six months to November 30, 2004
was 10.4%, compared with 11.2% in the same period last year. Net income was
$13.1 million or 93 cents per share, on a diluted basis compared with $11.9
million or 92 cents per share reported for the same period last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 69 days at November 30, 2004 compared with 60 days at
May 31, 2004.
Capital expenditure in the quarter ended November 30, 2004, was $2.9 million and
year to date was $7.5 million. As a result, the company's net cash, short-term
debt and short-term investments were $61.0 million at November 30, 2004,
compared to $65.6 million at August 31, 2004 and $78.8 million at May 31, 2004.
"The quarter ended November 30, 2004 was the first quarter in over 5 years in
which our earnings declined, but was in line with our expectations following the
exceptionally high level of cancellations we suffered in the previous quarter",
commented Chairman, Dr John Climax. " As predicted, this high cancellation
experience appears to have been an anomaly. With strong gross wins of $122
million, and cancellations of only $2 million in our most recent quarter, we
believe we have a solid foundation for a return to growth in Fiscal 2006
although we will need
further quarters of solid business wins to consolidate this. Nevertheless we are
revising our EPS guidance for Fiscal 2005 to between $1.68 - $1.70. The
rationale for this revision will be discussed in more detail on our conference
call today"
The company will hold its second quarter conference call today, January 6, 2005
at 8:00 EST [13:00 GMT / 14:00 CET]. This call and linked slide presentation can
be accessed live from our website at http://www.iconclinical.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 "shareholders services". 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.
Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or Sean Leech CFO + 353 -1-291-2000
Both at ICON.
http://www.iconclinical.com
ICON plc
Consolidated Income Statements
(Unaudited)
Three and Six Months ended November 30, 2004 and 2003
(Dollars, in thousands, except share and per share data)
Three Months Ended Six Months Ended
November 30, November 30, November 30, November 30,
2004 2003 2004 2003
Gross Revenue 117,068 113,173 234,263 219,350
Subcontractor costs 37,573 39,966 76,429 77,208
---------------- ---------------- ---------------- ----------------
Net Revenue 79,495 73,207 157,834 142,142
Costs and expenses
Direct costs 43,671 40,070 86,124 77,769
Selling, general and administrative 25,520 22,041 48,859 43,066
Depreciation and amortization 3,296 2,732 6,358 5,321
---------------- ---------------- ---------------- ----------------
Total costs and expenses 72,487 64,843 141,341 126,156
Income from operations 7,008 8,364 16,493 15,986
Interest income (net) 179 75 343 122
---------------- ---------------- ---------------- ----------------
Income before provision of income taxes 7,187 8,439 16,836 16,108
Provision for income taxes 1,310 2,174 3,632 4,239
Minority Interest 58 - 80 -
---------------- ---------------- ---------------- ----------------
Net income 5,819 6,265 13,124 11,869
================ ================ ================ ================
Net income per ordinary share
Basic $0.42 $0.46 $0.95 $0.96
---------------- ---------------- ---------------- ----------------
Diluted $0.41 $0.45 $0.93 $0.92
---------------- ---------------- ---------------- ----------------
Weighted average number of ordinary shares
Basic 13,847,689 13,578,859 13,839,857 12,346,147
Diluted 14,067,079 14,040,419 14,088,030 12,849,374
ICON plc
Summary Balance Sheet Data
November 30, 2004 and May 31, 2004
(Dollars, in thousands)
November 30, May 31,
2004 2004
(unaudited) (audited)
Cash and short-term investments 71,020 78,763
Short-term debt (10,000) -
Net cash 61,020 78,763
Accounts receivable 91,324 74,079
Unbilled revenue 71,246 59,861
Payments on account (74,186) (61,960)
Total 88,384 71,980
Working Capital 120,020 113,813
Total assets 370,369 335,323
Shareholder's equity 236,254 216,760
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Sean Leech CFO + 353 1 291 2000
both at ICON.
http://www.iconclinical.com