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 period ended August 4, 2005
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
August 4, 2005 /s/ Sean Leech
- ------------------------ --------------------------
Date Sean Leech
Chief Financial Officer
Exhibit 99.1.
ICON reports 10% increase in net revenues and EPS of 42 cents. (NASDAQ:ICLR)
Highlights - Fourth Quarter and Full Year Fiscal 2005
* Fourth quarter net revenues increased 10% over the fourth quarter of fiscal
2004 to $86.0 million and also increased 10% on a full year basis.
* Income from operations decreased 24% over the fourth quarter of fiscal 2004
to $7.4 million and decreased 13% on a full year basis, excluding the
impact of one-time charges taken in the third quarter.
* Diluted earnings per share decreased by 18% for the fourth quarter to 42
cents compared to 51 cents in the same quarter last year. Full year pro
forma diluted earnings per share was $1.70 compared to $1.88 for the
comparable period last year.
* $101 million of net new business awarded to ICON during the quarter.
Dublin, Ireland, August 2, 2005 - ICON plc (NASDAQ: ICLR), a global contract
clinical research organisation, which has approximately 2,700 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 fourth quarter and full year ended May 31, 2005.
Net revenues for the quarter were $86.0 million, representing an 10% increase
over net revenues of $77.9 million for the same quarter last year. Excluding the
impact of acquisitions, revenue growth for the quarter was 8% over the same
quarter last year.
Income from operations was $7.4 million, which represents a decrease of 24% from
the $9.6 million reported for the fourth quarter last year. Operating margin for
the quarter was 8.6% compared to 12.4% for the equivalent period last year. Net
income for the quarter was $5.9 million or 42 cents per share, on a diluted
basis, compared with $7.2 million or 51 cents per share for the fourth quarter
last year.
In the twelve months to May 31, 2005, net revenues were $326.7 million,
representing a 10% increase over net revenues of $296.9 million reported for the
twelve months of last year. Excluding the impact of acquisitions, revenue growth
was 7% for the twelve months ending May 31, 2005.
Pro forma income from operations for fiscal 2005, excluding the impact of the
one-time charges announced last quarter, was $29.9 million, representing a
decrease of 13% from the $34.4 million reported for the same period last year.
Pro forma operating margin for the twelve months to May 31, 2005 was 9.1%,
compared to 11.6% for the comparative period. Pro forma net income was $24.1
million or $1.70 per share, on a diluted basis, compared with $25.7 million or
$1.88 per share reported for the same period last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 63 days at May 31, 2005 compared to 67 days at
February 28, 2005 and 60 days at May 31, 2004.
For the quarter ended May 31, 2005, cash generated from operations was $13.2
million, and capital expenditure was $5.3 million. For the twelve months to May
31, 2005, cash generated from operations was $23.8 million, capital expenditure
was $15.6 million and net payments of $9.8 million were made in relation to
acquisitions. As a result of these factors the company's net cash, short-term
debt and short-term investments were $78.4 million at May 31, 2005, compared to
$70.9 million at February 28, 2005 and $78.8 million at May 31, 2004.
The company also announced that it intends to change its year end date from May
31 to December 31. Accordingly, the current accounting period for the company
will end on December 31, 2005. The change has been implemented in order to align
the company's year end more conveniently with the calendar year for reporting
purposes. "The results for the quarter were in line with our expectations and
represented a good improvement over the previous quarter", commented Chairman,
Dr John Climax. "We had solid net new business awards of $101 million in the
quarter and we completed fiscal 2005 with a total backlog of over $525 million".
Commenting on the outlook, Dr Climax said "We expect growth in all divisions as
the year progresses and we expect our lab business to return to profitability
during the first half of calendar 2006. With approximately $262 million of
backlog which will be earned in the next twelve months, we expect overall net
revenues for the coming four quarters to be in the $370 - $380 million range. We
will provide more detailed guidance on our conference call to be held today".
The company will hold its fourth quarter conference call today, August 2nd, 2005
at 08:00 EST [13:00 BST / 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
(Audited)
Three and Twelve Months ended May 31, 2005 and May 31, 2004
(Dollars, in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
May 31, May 31, May 31, May 31,
2005 2004 2005 2004
Gross Revenue 121,979 111,694 469,583 443,875
Subcontractor costs 36,010 33,775 142,925 146,952
--------------------- ---------------------------------------------
Net Revenue 85,969 77,919 326,658 296,923
Costs and expenses
Direct costs 47,529 42,291 179,661 162,562
Selling, general and administrative 27,540 23,033 103,784 88,807
Depreciation and amortization 3,549 2,956 13,331 11,171
One-time charges - - 11,275 -
--------------------- ---------------------------------------------
Total costs and expenses 78,618 68,280 308,051 262,540
Income from operations 7,351 9,639 18,607 34,383
Interest income (net) 381 91 979 288
--------------------- ---------------------------------------------
Income before provision of income taxes 7,732 9,730 19,586 34,671
Provision for income taxes 1,699 2,508 5,852 8,929
Minority Interest 84 - 189 -
--------------------- ---------------------------------------------
Net income 5,949 7,222 13,545 25,742
===================== =============================================
Net income per ordinary share
Basic $0.43 $0.53 $0.98 $1.94
--------------------- ---------------------------------------------
Diluted $0.42 $0.51 $0.96 $1.88
--------------------- ---------------------------------------------
Weighted average number of ordinary shares
Basic 13,887,989 13,714,899 13,860,203 13,267,531
Diluted 14,100,098 14,080,617 14,153,445 13,703,163
ICON plc
Proforma Consolidated Income Statements *
(Unaudited)
Three and Twelve Months ended May 31, 2005 and May 31, 2004
(Dollars, in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
May 31, May 31, May 31, May 31,
2005 2004 2005 2004
Gross Revenue 121,979 111,694 469,583 443,875
Subcontractor costs 36,010 33,775 142,925 146,952
---------------- ----------------- ---------------- ----------------
Net Revenue 85,969 77,919 326,658 296,923
Costs and expenses
Direct costs 47,529 42,291 179,661 162,562
Selling, general and administrative 27,540 23,033 103,784 88,807
Depreciation and amortization 3,549 2,956 13,331 11,171
---------------- ----------------- ---------------- ----------------
Total costs and expenses 78,618 68,280 296,776 262,540
Income from operations 7,351 9,639 29,882 34,383
Interest income (net) 381 91 979 288
---------------- ----------------- ---------------- ----------------
Income before provision of income taxes 7,732 9,730 30,861 34,671
Provision for income taxes 1,699 2,508 6,577 8,929
Minority Interest 84 - 189 -
---------------- ----------------- ---------------- ----------------
Net income * 5,949 7,222 24,095 25,742
================ ================= ================ ================
Net income per ordinary share
Basic * $0.43 $0.53 $1.74 $1.94
---------------- ----------------- ---------------- ----------------
Diluted * $0.42 $0.51 $1.70 $1.88
---------------- ----------------- ---------------- ----------------
Weighted average number of ordinary shares
Basic 13,887,989 13,714,899 13,860,203 13,267,531
Diluted 14,100,098 14,080,617 14,153,445 13,703,163
* Excludes a one-time charge of $10.6 million relating to the recognition of an
impairment of the goodwill associated with the Central Laboratory business,
certain assets, lease termination costs and exit costs, net of the tax deduction
thereon.
ICON plc
Summary Balance Sheet Data
May 31, 2005 and May 31, 2004
(Dollars, in thousands)
May 31, May 31,
2005 2004
(audited)
(audited)
Cash and short-term investments 78,375 78,763
Short-term debt - -
Net cash 78,375 78,763
Accounts receivable 83,909 74,079
Unbilled revenue 86,098 59,861
Payments on account (85,342) (61,960)
Total 84,665 71,980
Working Capital 125,288 113,813
Total assets 380,312 335,323
Shareholders' equity 233,066 216,760
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