Full Press Release Details
Reports First Quarter 2011 Revenue up 5% to $229 Million and EPS of 21c
- First Quarter Fiscal 2011
revenue of $229 million, a 5% increase year on year, 6% at constant
from operations was $16m, before restructuring charges.
Operating margin before the restructuring charges was 7% and EPS on the
same basis was 21 cents.
restructuring charge of $5 million was taken in the quarter.
business wins were $329 million representing a gross book to bill of
1.43, net business wins were $257 million representing a net book to
DUBLIN--(BUSINESS WIRE)--April 21, 2011--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 the first quarter
ended March 31, 2011.
Net revenue for the quarter was $229 million, an increase of 4.6% on the
prior year, a constant currency increase year on year of 5.5%.
Before restructuring charges, income from operations was $16 million or
7% of revenue, compared to $26.8 million or 12.2% for the same quarter
last year. Excluding restructuring charges, net income was $12.8 million
or 21 cents per share on a diluted basis, compared with $22.2 million or
37 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 49 days at March 31, 2011,
compared to 37 days at December 31, 2010.
For the quarter ended March 31, 2011, cash used in operating activities
was $5.3 million and capital expenditure was $6 million. In addition
ICON paid an initial cash consideration of $27.7m for the acquisition of
Oxford Outcomes. As a result, the company's net cash amounted to $232
million at March 31, 2011, compared to net cash of $256 million at
"2011 has started in line with expectations." commented CEO Peter Gray.
"With strong gross bookings of $329m, a strengthening pipeline of new
opportunities and the Central Lab progressing as planned, we believe we
are on track for a return to growth in the second half."
During the quarter the company undertook a number of cost reduction
steps which led to restructuring costs of $5 million. US GAAP income
from operations after these items amounted to $11 million or 4.8% of
revenue. US GAAP net income for the quarter is $8.3 million or 14 cents
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.
The company will hold its first quarter conference call today, April 21,
2011 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
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.
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 39 countries and has
approximately 7,700 employees. Further information is available at www.iconplc.com.
| ICON plc | |||||
| Consolidated Income Statements (Unaudited) (Before Restructuring Charges) | |||||
| Three Months ended March 31, 2011 and March 31, 2010 | |||||
| (Dollars, in thousands, except share and per share data) | |||||
| Three Months Ended | |||||
| March 31, | March 31, | ||||
| 2011 | 2010 | ||||
| Gross Revenue | 305,547 | 309,551 | |||
| Reimbursable expenses | 76,250 | 90,439 | |||
| Net Revenue | 229,297 | 219,112 | |||
| Costs and expenses | |||||
| Direct costs | 144,470 | 131,318 | |||
| Selling, general and administrative | 59,883 | 52,294 | |||
| Depreciation and amortization | 8,973 | 8,722 | |||
| Total costs and expenses | 213,326 | 192,334 | |||
| Income from operations | 15,971 | 26,778 | |||
| Net interest income/(expense) | 66 | (192) | |||
| Income before provision for income taxes | 16,037 | 26,586 | |||
| Provision for income taxes | 3,231 | 4,387 | |||
| Net income | 12,806 | 22,199 | |||
| Net income per ordinary share | |||||
| Basic | $0.21 | $0.38 | |||
| Diluted | $0.21 | $0.37 | |||
| Weighted average number of ordinary shares | |||||
| Basic | 60,283,078 | 59,122,650 | |||
| Diluted | 60,982,948 | 60,313,774 |
| ICON plc | |||||
| Consolidated Income Statements (Unaudited) (US GAAP) | |||||
| Three Months ended March 31, 2011 and March 31, 2010 | |||||
| (Dollars, in thousands, except share and per share data) | |||||
| Three Months Ended | |||||
| March 31, | March 31, | ||||
| 2011 | 2010 | ||||
| Gross Revenue | 305,547 | 309,551 | |||
| Reimbursable expenses | 76,250 | 90,439 | |||
| Net Revenue | 229,297 | 219,112 | |||
| Costs and expenses | |||||
| Direct costs | 144,470 | 131,318 | |||
| Selling, general and administrative | 59,883 | 52,294 | |||
| Depreciation and amortization | 8,973 | 8,722 | |||
| Restructuring charges | 5,002 | - | |||
| Total costs and expenses | 218,328 | 192,334 | |||
| Income from operations | 10,969 | 26,778 | |||
| Net interest income/(expense) | 66 | (192) | |||
| Income before provision for income taxes | 11,035 | 26,586 | |||
| Provision for income taxes | 2,687 | 4,387 | |||
| Net income | 8,348 | 22,199 | |||
| Net income per ordinary share | |||||
| Basic | $0.14 | $0.38 | |||
| Diluted | $0.14 | $0.37 | |||
| Weighted average number of ordinary shares | |||||
| Basic | 60,283,078 | 59,122,650 | |||
| Diluted | 60,982,948 | 60,313,774 |
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| March 31, 2011 and December 31, 2010 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Cash and short-term investments | 231,813 | 255,706 | |||||||||
| Accounts receivable | 188,097 | 164,907 | |||||||||
| Unbilled revenue | 121,998 | 101,431 | |||||||||
| Payments on account | (143,024) | (134,240) | |||||||||
| Total | 167,071 | 132,098 | |||||||||
| Working Capital | 304,053 | 329,350 | |||||||||
| Total Assets | 1,013,685 | 949,538 | |||||||||
| Shareholder's Equity | 693,119 | 669,999 | |||||||||
| Source: | ICON plc | ||||||||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||||||||
| Ciaran Murray CFO + 353 1 291 2000 | |||||||||||
| Brendan Brennan Snr VP Corp Fin + 353 1 291 2000 | |||||||||||
| Sam Farthing VP IR +353 1 291 2000 All at ICON. | |||||||||||
| http://www.iconplc.com |
Chief Financial Officer
VP Investor Relations