Full Press Release Details
Reports First Quarter 2018 Results
the impact of ASC 606, net business wins in the quarter were $590
million; a book to bill of 1.28.
the impact of ASC 606, closing backlog of $5,053 million, an increase
of 17.2% year on year.
1 reported revenue of $620.1 million. Excluding the impact of ASC 606,
quarter 1 revenue was $462.6 million, representing a 7.1% increase
income from operations was $91.7 million, or 14.8% of revenue.
Excluding the impact of ASC 606 income from operations was $92.8
million or 20.1% of revenue.
earnings per share of $1.42. Excluding the impact of ASC 606, earnings
per share of $1.44, an 11.6% increase year on year.
guidance increased by $0.02 to reflect quarter 1 share repurchases to
$5.91 - $6.11. Revenue guidance reconfirmed in the range of $2,520 -
DUBLIN--(BUSINESS WIRE)--May 2, 2018--ICON plc (NASDAQ: ICLR),
a global provider of drug development solutions and services to the
pharmaceutical, biotechnology and medical device industries, today
reported its financial results for the first quarter ended March 31,
CEO Dr. Steve Cutler commented, "I am very pleased with the solid
start we have made to 2018. The strong market demand for all CRO
services seen throughout 2017 has continued into this year. During
the first quarter we were awarded net business wins of $590 million, a
book to bill of 1.28. Revenue grew by over 7% year on year and, along
with the continued leverage of our best in industry support departments,
we delivered further value to our shareholders with earnings per share
increasing by 11.6% to $1.44. During the quarter we completed a further
$38 million of our share repurchase program and as a result we are
increasing our earnings guidance by $0.02 to $5.91 - $6.11, and
reconfirming our revenue in the range of $2,520 - $2,640 million."
First Quarter 2018 Results
Excluding the impact of ASC 606, gross business wins in the first
quarter were $703 million and cancellations were $113 million. This
resulted in net business wins of $590 million, a book to bill of 1.28.
Reported revenue for quarter 1 was $620.1 million. Excluding the impact
of ASC 606, quarter 1 revenue increased to $462.6 million from $432.0
million in the same quarter last year, an increase of 7.1%.
Income from operations in the quarter was $91.7 million or 14.8% of
revenue. Excluding the impact of ASC 606, income from operations
increased by 8.3% to $92.8 million, or 20.1% of revenue, compared to
$85.7 million or 19.8% for the same quarter last year.
Reported net income for the quarter was $78.1 million or 12.6% of
revenue. Excluding the impact of ASC 606, net income increased by 10.7%
to $79.0 million, compared with $71.4 million in the same quarter last
Reported earnings per share on a diluted basis was $1.42. Excluding the
impact of ASC 606, diluted earnings per share in the quarter increased
by 11.6% to $1.44, compared to $1.29 per share for the same quarter last
We continued our share repurchase program in the quarter, buying $38.2
million worth of stock at an average price of $110.71 per share.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 51 days at March 31, 2018,
compared with 49 days at the end of December 2017 and 47 days at the end
Cash generated from operating activities for the quarter was $40.5
million. Capital expenditure for the quarter was $8.3 million. As a
result, at March 31, 2018, the company had net cash of $4.6 million,
compared to net cash of $11.6 million at December 31, 2017 and net debt
of $29.6 million at the end of March 2017.
The new revenue recognition standard (ASU No. 2014-09) Revenue from
Contracts with Customers') is effective for ICON plc from January 1,
2018. ICON has elected to adopt the new standard under the cumulative
effect transition method. Under this transition method, the new standard
is applied from January 1, 2018 without restatement of comparative
period amounts. The cumulative effect of initially applying the new
standard is reflected as an adjustment to opening equity at the date of
application. Results for the three months ended March 2017 are therefore
presented under the previous revenue recognition accounting principles.
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.
ICON will hold its first quarter conference call tomorrow, May 3, 2018
at 09:00 EDT [14:00 Ireland & UK]. This call and linked slide
presentation can be accessed live from our website at http://investor.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.
This press release contains forward-looking statements. These statements
are based on management's current expectations and information currently
available, including current economic and industry conditions. These
statements are not guarantees of future performance or actual results,
and actual results, developments and business decisions may differ from
those stated in this press release. The forward-looking statements are
subject to future events, risks, uncertainties and other factors that
could cause actual results to differ materially from those projected in
the statements, including, but not limited to, the ability to enter into
new contracts, maintain client relationships, manage the opening of new
offices and offering of new services, the integration of new business
mergers and acquisitions, as well as economic and global market
conditions and other risks and uncertainties detailed from time to time
in SEC reports filed by ICON, all of which are difficult to predict and
some of which are beyond our control. For these reasons, you should not
place undue reliance on these forward-looking statements when making
investment decisions. The word "expected" and variations of such words
and similar expressions are intended to identify forward-looking
statements. Forward-looking statements are only as of the date they are
made and we do not undertake any obligation to update publicly any
forward-looking statement, either as a result of new information, future