Full Press Release Details
icon6k-010605ex991.txt
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
* $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
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
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
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
Contact : Investor Relations 1-888-381-7923 or Sean Leech CFO + 353 -1-291-2000
Consolidated Income Statements
Three and Six Months ended November 30, 2004 and 2003
(Dollars, in thousands, except share and per share data)
Summary Balance Sheet Data
November 30, 2004 and May 31, 2004
(Dollars, in thousands)
November 30, May 31,
(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)
Working Capital 120,020 113,813
Total assets 370,369 335,323
Shareholder's equity 236,254 216,760
Contact: Investor Relations 1-888-381-7923 or
Sean Leech CFO + 353 1 291 2000