Full Press Release Details
Reports Revenues Up 2% And Strong New Business Wins
- Second Quarter 2010
revenue of $224 million a 2% increase on Q2 2009
Operating margin of 11.5% compared to 13.3% last year
38 cent, the same as last year
business wins of $320m represent a strong book-to-bill ratio of 1.4
cash of $221 million, up from $194 million at year end
DUBLIN--(BUSINESS WIRE)--July 27, 2010--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 second quarter
ended June 30, 2010.
Net revenues for the quarter were $224 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 3.1%. Year-to-date,
net revenues were $443 million, representing a 1% increase over the same
Income from operations was $25.7 million or 11.5% of revenue, compared
to $29.3 million (before one-time net charges) or 13.3% for the same
quarter last year. Constant currency operating margin was 11.8%. Net
income was $22.9 million or 38 cents per share on a diluted basis,
compared to $22.8 million or 38 cents per share last year.
Year-to-date income from operations was $52.5 million, compared to $56.2
million (before one-time net charges) last year representing a margin of
11.8% in 2010 and a margin of 12.8% in 2009. Net income was $45.1
million or 74 cents per share, compared with $43.7 million or 73 cents
per share last year.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 30 days at June 30, 2010,
compared to 33 days at December 31, 2009.
For the quarter ended June 30, 2010, cash provided from operating
activities was $35 million and capital expenditure was $7.5 million. As
a result, the company's net cash, amounted to $221 million at June 30,
2010, compared to net cash of $194 million at December 31, 2009.
"Overall, we are pleased with our second quarter," commented CEO Mr
Peter Gray. "Our net booking of $320m was particularly satisfying,
resulting in a strong book to bill of 1.4, and the growth in our backlog
to $1.9 bn. However, we are not expecting revenue growth to respond
quickly to these awards, and as a result we now anticipate that the
outcome for 2010 will be at the lower end of the guidance range given in
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 second quarter conference call today, July 27,
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 7,500 employees. Further information is available at www.iconplc.com.
| ICON plc | ||||||||||||||
| Consolidated Income Statements (Unaudited) (Before one time net charges) | ||||||||||||||
| Three and Six Months ended June 30, 2010 and June 30, 2009 | ||||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Gross Revenue | 313,087 | 300,969 | 622,638 | 619,507 | ||||||||||
| Reimbursable expenses | 89,336 | 80,968 | 179,775 | 179,675 | ||||||||||
| Net Revenue | 223,751 | 220,001 | 442,863 | 439,832 | ||||||||||
| Costs and expenses | ||||||||||||||
| Direct costs | 130,869 | 125,146 | 262,187 | 249,314 | ||||||||||
| Selling, general and administrative | 58,923 | 58,010 | 111,217 | 119,268 | ||||||||||
| Depreciation and amortization | 8,281 | 7,526 | 17,003 | 15,016 | ||||||||||
| Total costs and expenses | 198,073 | 190,682 | 390,407 | 383,598 | ||||||||||
| Income from operations | 25,678 | 29,319 | 52,456 | 56,234 | ||||||||||
| Net interest income /(expense) | 61 | (875) | (131) | (1,611) | ||||||||||
| Income before provision of income taxes | 25,739 | 28,444 | 52,325 | 54,623 | ||||||||||
| Provision for income taxes | 2,866 | 5,687 | 7,253 | 10,922 | ||||||||||
| Net income | 22,873 | 22,757 | 45,072 | 43,701 | ||||||||||
| Net income per ordinary share | ||||||||||||||
| Basic | $0.38 | $0.39 | $0.76 | $0.75 | ||||||||||
| Diluted | $0.38 | $0.38 | $0.74 | $0.73 | ||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| Basic | 59,667,635 | 58,576,384 | 59,395,142 | 58,557,089 | ||||||||||
| Diluted | 60,768,374 | 59,674,939 | 60,557,687 | 59,716,244 |
| ICON plc | ||||||||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | ||||||||||||||
| Three and Six Months ended June 30, 2010 and June 30, 2009 | ||||||||||||||
| (Dollars, in thousands, except share and per share data) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Gross Revenue | 313,087 | 300,969 | 622,638 | 619,507 | ||||||||||
| Reimbursable expenses | 89,336 | 80,968 | 179,775 | 179,675 | ||||||||||
| Net Revenue | 223,751 | 220,001 | 442,863 | 439,832 | ||||||||||
| Costs and expenses | ||||||||||||||
| Direct costs | 130,869 | 125,146 | 262,187 | 249,314 | ||||||||||
| Selling, general and administrative | 58,923 | 58,010 | 111,217 | 119,268 | ||||||||||
| Depreciation and amortization | 8,281 | 7,526 | 17,003 | 15,016 | ||||||||||
| One off items | 8,941 | 8,941 | ||||||||||||
| Total costs and expenses | 198,073 | 199,623 | 390,407 | 392,539 | ||||||||||
| Income from operations | 25,678 | 20,378 | 52,456 | 47,293 | ||||||||||
| Net interest income/(expense) | 61 | (875) | (131) | (1,611) | ||||||||||
| Income before provision of income taxes | 25,739 | 19,503 | 52,325 | 45,682 | ||||||||||
| Provision for income taxes | 2,866 | 973 | 7,253 | 6,208 | ||||||||||
| Net income | 22,873 | 18,530 | 45,072 | 39,474 | ||||||||||
| Net income per ordinary share | ||||||||||||||
| Basic | $0.38 | $0.32 | $0.76 | $0.67 | ||||||||||
| Diluted | $0.38 | $0.31 | $0.74 | $0.66 | ||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| Basic | 59,667,635 | 58,576,384 | 59,395,142 | 58,557,089 | ||||||||||
| Diluted | 60,768,374 | 59,674,939 | 60,557,687 | 59,716,244 |
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| June 30, 2010 and December 31, 2009 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2010 | 2009 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Net cash | 220,762 | 194,028 | |||||||||
| Accounts receivable | 157,303 | 191,924 | |||||||||
| Unbilled revenue | 86,631 | 92,080 | |||||||||
| Payments on account | (141,338) | (165,198) | |||||||||
| Total | 102,596 | 118,806 | |||||||||
| Working Capital | 280,122 | 235,906 | |||||||||
| Total Assets | 882,356 | 908,398 | |||||||||
| Shareholder's Equity | 598,127 | 572,246 | |||||||||
| Source: | ICON plc | ||||||||||
| Contact: | Investor Relations 1-888-381-7923 or | ||||||||||
| Ciaran Murray CFO + 353 1 291 2000 | |||||||||||
| Brendan Brennan VP Corp FP&A +353 12912000 All at ICON. | |||||||||||
| http://www.iconplc.com |
Investor Relations 1-888-381-7923
Murray Chief Financial Officer
Brennan Corporate VP Corp FP&A