Full Press Release Details
Reports Q3 revenue growth of 7% to $241 million and net new business of
$431 million. (NASDAQ:ICLR) (ISIN:IE0005711209)
- Third Quarter Fiscal 2011
revenue of $241 million, a 7% increase year on year.
EPS of -4c after restructuring charges of $4.8m. Excluding these
restructuring charges EPS was 2c.
business wins of $431 million representing a net book to bill of 1.8.
Backlog grew 16% year on year to $2.2 billion.
Central laboratory achieves breakeven.
revenue expected to grow 15%-20% generating EPS in the range of $0.90 -
of Directors approve a $50m share buy-back.
DUBLIN--(BUSINESS WIRE)--October 27, 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 third
quarter ended September 30, 2011.
Net revenues for the quarter grew 7% to $241 million compared to $225
million in the same quarter last year. Year-to-date, net revenues were
$703 million, representing a 5% increase over the same period last year.
In Q3 US GAAP losses from operations were $3.6 million. During the
quarter the company undertook a number of cost reduction steps which led
to restructuring costs of $4.8 million. Before restructuring charges
operating income was $1.1 million or 0.5% of revenue compared to $17.6
million or 7.8% of revenue for the same period last year. The year to
date income from operations before restructuring charges was $32.6
million or 4.6% of revenue compared to $70 million or 10.5% of revenue
US GAAP net loss in the quarter was $2.7 million or 4c per share.
Excluding restructuring charges net income was $1.5 million or 2 cents
per share on a diluted basis, compared to $19.9 million or 33 cents per
share last year. Year to date net income before restructuring charges
was 27.4 million or 45c per share compared to $65 million or $1.07 per
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 52 days at September 30, 2011,
compared to 49 days at June 30 2011.
Net cash at September 30 2011 amounted to $166 million, compared to net
cash of $215 million at the end of June 2011. During the quarter ICON
acquired Firecrest Clinical Ltd for an initial cash consideration of
$24.4 million. Firecrest Clinical provides a comprehensive site
performance management system that is used to improve compliance,
consistency and execution of activities at investigative sites.
The Board of Directors have approved a share buy-back programme of up to
$50 million to commence in Q4.
CEO Ciaran Murray commented, "Our success in developing significant
strategic partnerships has resulted in a milestone quarter of record net
new business of $431m. To position ourselves for the future growth that
will result from our backlog increasing by 16% over last year we have
added circa 500 staff during the quarter which has impacted
profitability. Looking forward, we will continue to invest in both our
existing business and in our strategic relationships to provide
quality services to our customers. For 2012, we expect revenue growth to
be in the region of 15% to 20% and EPS to be in the range of $0.90 to
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 third quarter conference call today, October
27, 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
conference 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 79 locations in 39 countries and has
approximately 8,350 employees. Further information is available at www.iconplc.com.
| ICON plc | ||||||||||||
| Consolidated Income Statements (Unaudited) (Before restructuring charges) | ||||||||||||
| Three and Nine Months ended September 30, 2011 and September 30, 2010 | ||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Gross Revenue | 335,332 | 323,230 | 958,575 | 945,868 | ||||||||
| Reimbursable expenses | 94,560 | 98,135 | 255,461 | 277,910 | ||||||||
| Net Revenue | 240,772 | 225,095 | 703,114 | 667,958 | ||||||||
| Costs and expenses | ||||||||||||
| Direct costs | 158,343 | 139,460 | 453,679 | 401,647 | ||||||||
| Selling, general and administrative | 71,629 | 60,008 | 188,856 | 171,225 | ||||||||
| Depreciation and amortization | 9,667 | 8,002 | 27,969 | 25,005 | ||||||||
| Total costs and expenses | 239,639 | 207,470 | 670,504 | 597,877 | ||||||||
| Income from operations | 1,133 | 17,625 | 32,610 | 70,081 | ||||||||
| Net interest income /(expense) | 131 | 276 | 303 | 145 | ||||||||
| Income before provision for income taxes | 1,264 | 17,901 | 33,913 | 70,226 | ||||||||
| Provision for income taxes | 202 | 1,998 | (5,559) | (5,255) | ||||||||
| Net income | 1,466 | 19,899 | 27,354 | 64,971 | ||||||||
| Net income per ordinary share | ||||||||||||
| Basic | $0.02 | $0.33 | $0.45 | $1.09 | ||||||||
| Diluted | $0.02 | $0.33 | $0.45 | $1.07 | ||||||||
| Weighted average number of ordinary shares | ||||||||||||
| Basic | 60,471,985 | 59,940,045 | 60,381,814 | 59,576,777 | ||||||||
| Diluted | 61,063,020 | 60,743,403 | 61,096,464 | 60,576,058 |
| ICON plc | ||||||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | ||||||||||||
| Three and Nine Months ended September 30, 2011 and September 30, 2010 | ||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Gross Revenue | 335,332 | 323,230 | 958,575 | 945,868 | ||||||||
| Reimbursable expenses | 94,560 | 98,135 | 255,461 | 277,910 | ||||||||
| Net Revenue | 240,772 | 225,095 | 703,114 | 667,958 | ||||||||
| Costs and expenses | ||||||||||||
| Direct costs | 158,343 | 139,460 | 453,679 | 401,647 | ||||||||
| Selling, general and administrative | 71,629 | 60,008 | 188,856 | 171,225 | ||||||||
| Depreciation and amortization | 9,667 | 8,002 | 27,969 | 25,005 | ||||||||
| Restructuring Charges | 4,815 | - | 9,817 | - | ||||||||
| Total costs and expenses | 244,454 | 207,470 | 680,321 | 597,877 | ||||||||
| (Loss)/Income from operations | (3.682) | 17,625 | 22,793 | 70,081 | ||||||||
| Net interest income /(expense) | 131 | 276 | 303 | 145 | ||||||||
| (Loss) /Income before provision for income taxes | (3,551) | 17,901 | 23,096 | 70,226 | ||||||||
| Provision for income taxes | 888 | 1,998 | (4,329) | (5,255) | ||||||||
| Net income | (2,663) | 19,899 | 18,767 | 64,971 | ||||||||
| Net income per ordinary share | ||||||||||||
| Basic | ($0.04) | $0.33 | $0.31 | $1.09 | ||||||||
| Diluted | ($0.04) | $0.33 | $0.31 | $1.07 | ||||||||
| Weighted average number of ordinary shares | ||||||||||||
| Basic | 60,471,985 | 59,940,045 | 60,381,814 | 59,576,777 | ||||||||
| Diluted | 61,063,020 | 60,743,403 | 61,096,464 | 60,576,058 |
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| September 30, 2011 and December 31, 2010 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| September 30, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Net cash | 166,087 | 255,706 | |||||||||
| Accounts receivable | 196,810 | 164,907 | |||||||||
| Unbilled revenue | 133,211 | 101,431 | |||||||||
| Payments on account | (137,460) | (134,240) | |||||||||
| Total | 192,561 | 132,098 | |||||||||
| Working Capital | 277,078 | 329,350 | |||||||||
| Total Assets | 1,045,655 | 949,538 | |||||||||
| Shareholder's Equity | 697,442 | 669,999 | |||||||||
| Source: | ICON plc | ||||||||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||||||||
| Brendan Brennan CFO + 353 1 291 2000 | |||||||||||
| Sam Farthing VP IR +353 1 291 2000 | |||||||||||
| http://www.iconplc.com |
Investor Relations 1-888-381-7923
Brennan Chief Financial Officer + 353 -1-291-2000
Farthing VP Investor Relations + 353 -1-291-2000