Full Press Release Details
Reports 35% Increase in Revenue and 45% Increase in Operating Income
Third Quarter Fiscal 2008
revenues increased 35%, to $225.5 million
from operations increased by 45%, to $27.1 million
margin increased to 12% from 11.2%
earnings per share increased by 46% to 35 cents
business wins were $350 million, a book-to-bill of 1.6x
DUBLIN, Ireland--(BUSINESS WIRE)--October 21, 2008--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 its third
quarter ended September 30, 2008.
Net revenues for the quarter were $225.5 million, representing a 35.1%
increase over net revenues of $166.9 million for the comparative quarter
last year. Year-to-date, net revenues were $645.2 million, representing
a 43.4% increase over the same period last year.
Income from operations was $27.1 million, compared to $18.7 million for
the same quarter last year. Operating margin increased to 12.0% from
11.2%. Net income was $21.4 million or 35 cents per share on a diluted
basis, compared with $14.5 million or 24 cents per share last year.
Year-to-date income from operations was $73.0 million, compared to $49.5
million last year representing an operating margin increase to 11.3%
from 11.0%. Net income was $57.1 million or 93 cents per share, compared
with $40.1 million or 67 cents last year.
Days sales outstanding were 54 days at September 30, 2008, compared to
66 days at December 31, 2007.
For the quarter ended September 30, 2008, cash provided by operating
activities was $58 million and capital expenditure was $18.1 million. As
a result, the company's net cash amounted to $55.6 million at September
30, 2008, compared to net cash of $6.9 million at June 30, 2008.
"We are pleased with our continued strong progress" said Chairman, Dr.
John Climax, " Revenues and operating profits for the first nine months
of 2008, at $645 million and $73 million respectively, already exceed
those achieved in all of 2007. Year-to-date new business bookings, at
over $1bn, have also surpassed those of the full year 2007 "
Commenting on the quarter, CEO Peter Gray said " With revenues for the
quarter up 35%, margins up to 12%, EPS up 46%, and strong operating cash
generation, we are very satisfied with our performance in the quarter.
ICON's strategy of listening to its customers and delivering the
services they need, where and when they need them, continues to be
validated. With net new business awarded in the quarter of $350 million
and our backlog now at over $1.74 billion, we are confident in the
outlook for the remainder of 2008 and view 2009 with optimism"
The company will hold its third quarter conference call today, October
21, 2008 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
specializes 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 6,600 employees. Further information is available at www.iconplc.com.
| ICON plc | |||||||||
| Consolidated Income Statements (Unaudited) | |||||||||
| Three and Nine Months ended September 30, 2008 and September 30, 2007 | |||||||||
| (Dollars, in thousands, except share and per share data) | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||
| 2008 | 2007 | 2008 | 2007 | ||||||
| Gross Revenue | 313,637 | 231,819 | 914,082 | 625,942 | |||||
| Subcontractor costs | 88,126 | 64,903 | 268,927 | 175,890 | |||||
| Net Revenue | 225,511 | 166,916 | 645,155 | 450,052 | |||||
| Costs and expenses | |||||||||
| Direct costs | 127,948 | 91,675 | 364,113 | 254,107 | |||||
| Selling, general and administrative | 62,494 | 51,518 | 187,328 | 132,864 | |||||
| Depreciation and amortization | 7,937 | 5,020 | 20,676 | 13,626 | |||||
| Total costs and expenses | 198,379 | 148,213 | 572,117 | 400,597 | |||||
| Income from operations | 27,132 | 18,703 | 73,038 | 49,455 | |||||
| Interest (expense) income | (224) | 16 | (743) | 2,079 | |||||
| Income before provision for income taxes | 26,908 | 18,719 | 72,295 | 51,534 | |||||
| Provision for income taxes | 5,355 | 4,158 | 14,493 | 11,344 | |||||
| Minority interest | 173 | 60 | 707 | 108 | |||||
| Net income | 21,380 | 14,501 | 57,095 | 40,082 | |||||
| Net income per ordinary share | |||||||||
| Basic | $0.37 | $0.25 | $0.98 | $0.70 | |||||
| Diluted | $0.35 | $0.24 | $0.93 | $0.67 | |||||
| Weighted average number of ordinary shares | |||||||||
| Basic | 58,451,960 | 57,521,452 | 58,156,869 | 57,339,596 | |||||
| Diluted | 61,847,265 | 59,652,914 | 61,357,893 | 59,429,170 |
| ICON plc | ||||||
| Summary Balance Sheet Data | ||||||
| September 30, 2008 and December 31, 2007 | ||||||
| (Dollars, in thousands) | ||||||
| September 30, | December 31, | |||||
| 2008 | 2007 | |||||
| (Unaudited) | (Audited) | |||||
| Cash and short-term investments | 135,154 | 118,633 | ||||
| Debt | (79,547) | (94,829) | ||||
| Net cash | 55,607 | 23,804 | ||||
| Accounts receivable | 179,553 | 129,865 | ||||
| Unbilled revenue | 138,864 | 144,661 | ||||
| Payments on account | (129,030) | (96,553) | ||||
| Total | 189,387 | 177,973 | ||||
| Working Capital | 204,755 | 193,271 | ||||
| Total Assets | 808,656 | 693,138 | ||||
| Shareholder's Equity | 452,077 | 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 |
Investor Relations 1-888-381-7923