Full Press Release Details
Reports Fourth Quarter and Full Year 2017 Results
4 gross business wins of $718 million, a gross book to bill of 1.58.
Net business wins of $599 million, a net book to bill of 1.32. Full
year gross business wins of $2.6 billion, a gross book to bill of
1.50, net business wins of $2.3 billion, a net book to bill of 1.29.
of business grew 16.9% year on year to $4.93 billion.
4 net revenue increased 4.6% year on year to $455 million. Full year
net revenue increased 5.5% to $1,758 million.
4 top customer revenue concentration reduced to 13.2% from 23.8% in
quarter 4 2016. In the quarter revenue outside our top customer,
increased by 19.2% year over year.
4 income from operations increased 6.0% year on year to $89.7 million,
or 19.7% of revenue. Full year 2017 income from operations increased
by 8.2% to $346.1 million.
per share for quarter 4 of $1.43, a 7.5% increase year on year. 2017
earnings per share on a pro forma full year basis were $5.39, an
increase of 13.0% on 2016.
year 2018 guidance updated to take account of ASC 606. Revenue to be
in the range of $2,520 -$2,640 million. Earnings per share guidance
unchanged in the range of $5.89 - $6.09 representing an increase of
DUBLIN--(BUSINESS WIRE)--February 15, 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 fourth quarter and full
year ended December 31, 2017.
CEO Dr. Steve Cutler commented, "2017 was another strong year for
ICON. Positive business win trends across all customer segments have
diversified our business, resulting in backlog growth of 17% year on
year and reducing our top customer concentration to 13% in quarter
4 from 24% in the same quarter last year. Full year revenues grew 5.5%
to $1.758 billion, and our proactive cost management has enabled us to
expand our operating margin to 19.7%. As a result we have grown EPS 13%
year on year to $5.39. We expect 2018 to be another robust year of
revenue and earnings growth and in accordance with the new accounting
standard we are updating our revenue guidance to a range of $2,520 -
$2,640 million. Earnings per share guidance remains in the range of
$5.89 - $6.09 representing an increase of 9.3% - 13.0%."
Fourth Quarter 2017 Results
The positive business environment was reflected in the gross business
wins in the fourth quarter of $718 million and cancellations in the
quarter were $119 million, resulting in net business wins of $599
million and a net book to bill of 1.32.
In the fourth quarter net revenue grew 4.6% year on year to $455 million
from $435 million in the same quarter last year. This represented 2.3%
constant currency growth with revenue outside of our top customer
growing 19.2% year over year. Concentration levels of ICON's largest
customer significantly reduced from 23.8% of revenue last year to 13.2%
this quarter. This customer now represents 11% of ICON's backlog down
An efficient operational model drove income from operations in the
quarter up by 6.0% to $89.7 million, or 19.7% of revenue, compared to
$84.6 million or 19.5% for the same quarter last year.
Net income in the quarter increased by 5.7% to $78.5 million on a
non-GAAP basis compared with $74.3 million in the same quarter last
year. This was helped by our industry leading underlying effective tax
rate of 12% and global business support model that brought SG&A costs
down to 18.0% of revenue.
Earnings per share increased to $1.43 per share on a diluted non-GAAP
basis, from $1.33 per share for the same quarter last year, an increase
of 7.5% reflecting a strong quarter for ICON.
We continued our share repurchase program in the quarter buying $25
million worth of stock at an average price of $113.08 per share.
The Company recorded a non-recurring tax expense of $7.4 million during
the quarter, principally as a result of the mandatory repatriation
provisions contained in the Tax Cuts and Jobs Act enacted during the
fourth quarter of 2017. Excluding the non-recurring tax expense the
pro-forma tax rate was 10% for the fourth quarter and 12% for the full
Full Year 2017 Results
Full year gross business wins were $2.6 billion and cancellations were
$0.3 billion, resulting in net business wins of $2.3 billion and a net
book to bill of 1.29. This led to strong backlog growth of 16.9% year on
Full year revenue increased by 5.5% to $1,758 million from $1,666
Income from operations for 2017, on a non-GAAP basis, increased by 8.2%
to $346 million or 19.7% of revenue compared with $320 million or 19.2%
of revenue in the previous year.
Net income for 2017, on a non-GAAP basis, increased by 9.8% to $296
million compared with $269 million last year.
Earnings per share for 2017, on a non-GAAP basis, increased to $5.39 per
diluted share from $4.77 per diluted share last year, an increase of
Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 49 days at December 31, 2017,
compared with 50 days at the end of September 2017 and 50 days at the
end of December 2016.
Cash generated from operating activities for the quarter was $105.9
million. Capital expenditure for the quarter was $21 million. As a
result, at December 31, 2017, the company had net cash of $11.6 million,
compared to net debt of $56 million at September 30, 2017 and net debt
of $88 million at the end of December 2016.
During the year we repurchased $133 million shares in total at an
average price of $83.76.
In July, ICON acquired the Mapi Group, a leading health outcomes
research and commercialisation company. Integration plans are underway
and progressing well. This combined division has in excess of 1,400
heads, operating throughout ICON's global network and enhances ICON's
key late stage service offerings. The additional scale and capabilities
means that ICON is the world's second largest provider of late phase
As of January 1, 2018 ICON has adopted the new revenue recognition
standard (ASC 606). As a result we are updating our full year 2018
revenue guidance to $2,520 -$2,640 million. Earnings per share guidance
remains unchanged in the range of $5.89 - $6.09 representing an increase
In addition to the financial measures prepared in accordance with