Full Press Release Details
Reports Revenues of $225 Million up 2% on Prior Year (Nasdaq:ICLR)
DUBLIN--(BUSINESS WIRE)--October 21, 2010--
Highlights - Third Quarter 2010
* Net revenue of $225 million, a 2% increase vs. Q3 2009
* Operating margin of 12.0% before central lab and foreign exchange
* Operating margin of 7.8% on a GAAP basis
* GAAP EPS of 33 cent
* Net cash rises to $231 million
* Gross new business wins for the quarter of $317m (net $225m)
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, 2010.
Net revenues for the quarter were $225 million, representing a 2%
increase over net revenues of $220 million for the same quarter last
year. On a constant currency basis revenue grew by 7%. Year-to-date, net
revenues were $668 million, representing a 1% increase over the same
Income from operations was $17.6 million or 7.8% of revenue, after the
central lab incurred operating losses of approx $4.6 million and a
further $3.0 million of cost reduction and other non-recurring charges.
In addition, foreign exchange translation losses of $1.8 million were
incurred. Excluding these, operating income was $27 million compared to
$30.4 million for the same quarter last year.
The company recognised a tax gain in the current quarter of $2.0m,
compared to $5.8m of a charge in Q3 2009.
Net income was $19.9 million or 33 cents per share on a diluted basis,
compared to $23.9 million or 40 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 36 days at September 30, 2010,
compared to 33 days at December 31, 2009.
The company's net cash, amounted to $231 million at September 30, 2010,
compared to net cash of $221 million at the end of June 2010 and $194
million at December 31, 2009.
"Our clinical business had another solid quarter and gross new business
awards were in line with expectations at $317 million and net bookings
were $225 million." commented CEO Mr Peter Gray. "The expansion of our
central lab global footprint continues to be validated by another strong
quarter of business wins yielding a year-to-date net book to bill of
1.8. However, this growing backlog did not convert to revenue as quickly
as forecast. Cost reduction actions have already been taken and further
cost alignment measures are planned. Overall, ICON remains in a strong
position and continues to invest in its business in order to benefit
from the opportunities that are arising as our customers transition to
new development models."
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
21, 2010 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 71 locations in 39 countries and has
approximately 7,800 employees. Further information is available at www.iconplc.com.
| ICON plc | ||||||||||||
| Consolidated Income Statements (Unaudited) (Before one time net charges) | ||||||||||||
| Three and Nine Months ended September 30, 2010 and September 30, 2009 | ||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| Gross Revenue | 323,230 | 317,179 | 945,868 | 936,686 | ||||||||
| Reimbursable expenses | 98,135 | 96,818 | 277,910 | 276,493 | ||||||||
| Net Revenue | 225,095 | 220,361 | 667,958 | 660,193 | ||||||||
| Costs and expenses | ||||||||||||
| Direct costs | 139,460 | 127,179 | 401,647 | 376,493 | ||||||||
| Selling, general and administrative | 60,008 | 54,369 | 171,225 | 173,637 | ||||||||
| Depreciation and amortization | 8,002 | 8,404 | 25,005 | 23,420 | ||||||||
| Total costs and expenses | 207,470 | 189,952 | 597,877 | 573,550 | ||||||||
| Income from operations | 17,625 | 30,409 | 70,081 | 86,643 | ||||||||
| Net interest income/(expense) | 276 | (693) | 145 | (2,304) | ||||||||
| Income before provision for income taxes | 17,901 | 29,716 | 70,226 | 84,339 | ||||||||
| Provision for income taxes | 1,998 | (5,765) | (5,255) | (16,687) | ||||||||
| Net income | 19,899 | 23,951 | 64,971 | 67,652 | ||||||||
| Net income per ordinary share | ||||||||||||
| Basic | $0.33 | $0.41 | $1.09 | $1.15 | ||||||||
| Diluted | $0.33 | $0.40 | $1.07 | $1.13 | ||||||||
| Weighted average number of ordinary shares | ||||||||||||
| Basic | 59,940,045 | 58,624,028 | 59,576,777 | 58,579,402 | ||||||||
| Diluted | 60,743,403 | 59,953,574 | 60,576,058 | 59,781,092 |
| ICON plc | ||||||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | ||||||||||||
| Three and Nine Months ended September 30, 2010 and September 30, 2009 | ||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| Gross Revenue | 323,230 | 317,179 | 945,868 | 936,686 | ||||||||
| Reimbursable expenses | 98,135 | 96,818 | 277,910 | 276,493 | ||||||||
| Net Revenue | 225,095 | 220,361 | 667,958 | 660,193 | ||||||||
| Costs and expenses | ||||||||||||
| Direct costs | 139,460 | 127,179 | 401,647 | 376,493 | ||||||||
| Selling, general and administrative | 60,008 | 54,369 | 171,225 | 173,637 | ||||||||
| Depreciation and amortization | 8,002 | 8,404 | 25,005 | 23,420 | ||||||||
| One time net charges | 8,941 | |||||||||||
| Total costs and expenses | 207,470 | 189,952 | 597,877 | 582,491 | ||||||||
| Income from operations | 17,625 | 30,409 | 70,081 | 77,702 | ||||||||
| Net interest income/(expense) | 276 | (693) | 145 | (2,304) | ||||||||
| Income before provision for income taxes | 17,901 | 29,716 | 70,226 | 75,398 | ||||||||
| Provision for income taxes | 1,998 | (5,765) | (5,255) | (11,973) | ||||||||
| Net income | 19,899 | 23,951 | 64,971 | 63,425 | ||||||||
| Net income per ordinary share | ||||||||||||
| Basic | $0.33 | $0.41 | $1.09 | $1.08 | ||||||||
| Diluted | $0.33 | $0.40 | $1.07 | $1.06 | ||||||||
| Weighted average number of ordinary shares | ||||||||||||
| Basic | 59,940,045 | 58,624,028 | 59,576,777 | 58,579,402 | ||||||||
| Diluted | 60,743,403 | 59,953,574 | 60,576,058 | 59,781,092 |
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| September 30, 2010 and December 31, 2009 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| September 30, | December 31, | ||||||||||
| 2010 | 2009 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Net cash | 231,289 | 194,028 | |||||||||
| Accounts receivable | 174,375 | 191,924 | |||||||||
| Unbilled revenue | 97,218 | 92,080 | |||||||||
| Payments on account | (143,583) | (165,198) | |||||||||
| Total | 128,010 | 118,806 | |||||||||
| Working Capital | 306,478 | 235,906 | |||||||||
| Total Assets | 937,857 | 908,398 | |||||||||
| Shareholder's Equity | 647,163 | 572,246 | |||||||||
| Source: | ICON plc | ||||||||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||||||||
| Ciaran Murray CFO + 353 1 291 2000 | |||||||||||
| Brendan Brennan VP Corp Fin+353 12912000 All at ICON. | |||||||||||
| http://www.iconplc.com |
Murray Chief Financial Officer
Brennan VP Corp Finance