Full Press Release Details
Reports Fourth Quarter and Full Year 2018 Results
net business wins* in the quarter of $607 million, a book to bill of
1.25. Full year net business wins* of $2.4 billion, a net book to bill
closing backlog* of $5.4 billion, an increase of 9.7% year on year.
4 reported revenue of $679.0 million. Full year reported revenue of
$2,596 million. This represents a 6.5% increase year on year for
Quarter 4* and a full year revenue increase of 7.9%*.
4 reported income from operations was $101.8 million, or 15.0% of
revenue. Full year reported income from operations before
non-recurring charges was $385.8 million or 14.9% of revenue. This
represents an increase* for the quarter and full year of 14.2% and
4 reported earnings per share of $1.62. Full year reported earnings
per share before non-recurring charges of $6.09. This represents an
increase* for the quarter and full year of 13.8% and 14.2%
January 2019, ICON signed an agreement to acquire MolecularMD, a
specialist laboratory, which expands our current lab capabilities into
molecular testing, immunohistochemistry and companion diagnostics for
precision medicine research.
extension of ICON's master services agreement with Pfizer Inc.
outlook reaffirmed with revenue guidance in the range of $2,735 -
$2,835 million and earnings per share guidance in the range of $6.69 -
$6.89 a year over year increase of 9.9% - 13.1%.
the impact of ASC 606
DUBLIN--(BUSINESS WIRE)--February 20, 2019--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, 2018.
CEO Dr. Steve Cutler commented, "During 2018, ICON's
operational excellence and market leading service offerings resulted in
net business bookings of over $2.4 billion and the expansion of our
backlog by 10% to $5.4 billion. Our revenues grew by 8% year over year
and our continued focus on pro-active cost saving efficiencies enabled
us to grow EPS by over 14% to $6.16.
Today we are delighted to announce the acquisition of MolecularMD.
MolecularMD enhances our laboratory offering in molecular diagnostic
testing, a key area in oncology research, and also brings to ICON
expanded testing platforms, including next generation sequencing and
immunohistochemistry. MolecularMD's services also include companion
diagnostic development which will further enhance the competitiveness of
our overall lab offering.
We are also delighted to announce the extension of ICON's master
services agreement with Pfizer. The extension of the agreement reflects
our strong working relationship with Pfizer and we look forward to
continuing to help Pfizer advance its development pipeline rapidly and
As we look forward, we expect 2019 to be another year of robust
revenue and earnings growth and we reaffirm our outlook with revenue
guidance in the range of $2,735 - $2,835 million and earnings per share
guidance in the range of $6.69 - $6.89, a year over year increase of 10%
Fourth Quarter 2018 Results
Excluding the impact of ASC 606, gross business wins in the fourth
quarter were $722 million and cancellations were $115 million. This
resulted in net business wins of $607 million, a book to bill of 1.25.
Reported revenue for quarter 4 was $679.0 million. Excluding the impact
of ASC 606, quarter 4 revenue increased to $484.7 million from $455.1
million in the same quarter last year, an increase of 6.5%.
Reported income from operations in the quarter was $101.8 million or
15.0% of revenue. Excluding the impact of ASC 606, income from
operations increased by 14.2% to $102.4 million, or 21.1% of revenue,
compared to $89.7 million or 19.7% for the same quarter last year.
Reported net income for the quarter was $88.2 million or 13.0% of
revenue. Excluding the impact of ASC 606, net income increased by 13.0%
to $88.7 million, compared with $78.5 million in the same quarter last
Reported earnings per share on a diluted basis was $1.62. Excluding the
impact of ASC 606, diluted earnings per share increased by 13.8% to
$1.63, compared to $1.43 per share for the same quarter last year.
Days sales outstanding on a 605 basis, comprising accounts receivable
and unbilled revenue less payments on account, were 57 days at December
31, 2018, compared with 49 days at the end of December 2017.
Cash generated from operating activities for the quarter was $60.9
million. During the quarter, capital expenditure was $20.0 million and
$72 million worth of stock was repurchased at an average price of
$137.66. As a result, at December 31, 2018, the company had net cash of
$106.5 million, compared to net cash of $142.3 million at September 30,
2018 and net cash of $11.6 million at the end of December 2017.
Full Year 2018 Results
Excluding the impact of ASC 606, full year gross business wins were
$2,860 million and cancellations were $459 million. This resulted in net
business wins of $2,401 million, a book to bill of 1.27.
Full year reported revenue was $2,595.8 million. Excluding the impact of
ASC 606, full year revenue increased to $1,897.6 million from $1,758.4
million in 2017, an increase of 7.9%.
Full year reported income from operations before non-recurring charges
was $385.8 million or 14.9% of revenue. Excluding the impact of ASC 606,
income from operations before non-recurring charges increased by 12.7%
to $390.0 million, or 20.6% of revenue, compared to $346.1 million or
19.7% of revenue in the previous year.
Full year reported net income before non-recurring charges was $333.7
million or 12.9% of revenue. Excluding the impact of ASC 606, net income
before non-recurring charges increased by 14.1% to $337.4 million,
compared with $295.7 million last year.
Full year reported earnings per share on a diluted basis before
non-recurring charges was $6.09. Excluding the impact of ASC 606,
diluted earnings per share before non-recurring charges increased by
14.2% to $6.16, compared to $5.39 per share last year.
Pfizer Master Services Agreement extension
The extension extends the term of the agreement signed in June 2016 from
a 3 year term with Pfizer having the right to extend the term by a
further 2 years, to a term of 4 years with Pfizer retaining the right to
extend the term by a further 2 years.