Full Press Release Details
Reports Second Quarter 2011 Net New Business of $310 million, Revenue of
$233 million and EPS of 21c (NASDAQ:ICLR) (ISIN:IE0005711209)
- Second Quarter Fiscal 2011
revenue of $233 million, a 4% increase year on year.
from operations was $15.5m.
Operating margin was 7%
business wins were $357 million representing a gross book to bill of
1.53, net business wins were $310 million representing a net book to
exceeds $2 billion for the first time
guidance for 2011 unchanged at $945 - $980 million and adjusted EPS
guidance lowered to 50c - 70c as resource build-up for Pfizer
partnership increases costs.
DUBLIN--(BUSINESS WIRE)--July 20, 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 second quarter
ended June 30, 2011.
Net revenue for the quarter was $233 million, an increase of 4.2% on the
prior year. Year-to-date, net revenues were $462 million, representing a
4.4% increase over the same period last year.
Income from operations was $15.5 million or 6.7% of revenue, compared to
$25.7 million or 11.5% for the same quarter last year. Net income was
$13 million or 21 cents per share on a diluted basis, compared with
$22.9 million or 38 cents per share last year.
Year-to-date income from operations was $31.5 million (before
restructuring charges), compared to $52.5 million last year representing
a margin of 6.8% in 2011 and a margin of 11.8% in 2010. Net income was
$25.9 million or 42 cents per share (before restructuring charges),
compared with $45 million or 74 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 49 days at June 30, 2011, the
same as at March 31, 2011.
For the quarter ended June 30, 2011, cash used in operating activities
was $6.4 million and capital expenditure was $7 million. The company's
net cash amounted to $215 million at June 30, 2011, compared to net cash
of $232 million at March 31, 2011.
"Our second quarter was in line with our guidance, and new business
bookings continued to strengthen, leading to our order backlog exceeding
$2bn for the first time" commented CEO Peter Gray. "The investments we
have been making in developing the business are progressing
"The major achievement of the quarter was our selection by Pfizer as one
of their two partners for clinical development", he continued.
"Significant work will be transitioned to ICON over the next two years
as this partnership develops which should drive an acceleration in our
growth over that time. We are thus increasing our hiring drive and
expect to add significant cost in the next two quarters as we gear up to
handle work which will be transitioned to us in Q4 and throughout 2012.
As a result, while we are not changing our revenue guidance for 2011, we
are lowering our EPS guidance to 50c-70c, reflecting significantly
increased costs in Q3 without compensating revenue, followed by further
cost growth in Q4 with revenues beginning to build".
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 20,
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 77 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 restructuring charges) | |||||||||||||
| Three and Six Months ended June 30, 2011 and June 30, 2010 | |||||||||||||
| (Dollars, in thousands, except share and per share data) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Gross Revenue | 317,696 | 313,087 | 623,243 | 622,638 | |||||||||
| Reimbursable expenses | 84,651 | 89,336 | 160,901 | 179,775 | |||||||||
| Net Revenue | 233,045 | 223,751 | 462,342 | 442,863 | |||||||||
| Costs and expenses | |||||||||||||
| Direct costs | 150,866 | 130,869 | 295,336 | 262,187 | |||||||||
| Selling, general and administrative | 57,344 | 58,923 | 117,227 | 111,217 | |||||||||
| Depreciation and amortization | 9,329 | 8,281 | 18,302 | 17,003 | |||||||||
| Total costs and expenses | 217,539 | 198,073 | 430,865 | 390,407 | |||||||||
| Income from operations | 15,506 | 25,678 | 31,477 | 52,456 | |||||||||
| Net interest income /(expense) | 106 | 61 | 172 | (131) | |||||||||
| Income before provision for income taxes | 15,612 | 25,739 | 31,649 | 52,325 | |||||||||
| Provision for income taxes | 2,530 | 2,866 | 5,761 | 7,253 | |||||||||
| Net income | 13,082 | 22,873 | 25,888 | 45,072 | |||||||||
| Net income per ordinary share | |||||||||||||
| Basic | $0.22 | $0.38 | $0.43 | $0.76 | |||||||||
| Diluted | $0.21 | $0.38 | $0.42 | $0.74 | |||||||||
| Weighted average number of ordinary shares | |||||||||||||
| Basic | 60,390,788 | 59,667,635 | 60,336,933 | 59,395,142 | |||||||||
| Diluted | 61,114,996 | 60,768,374 | 61,056,232 | 60,557,687 |
| ICON plc | |||||||||||||
| Consolidated Income Statements (Unaudited) (US GAAP) | |||||||||||||
| Three and Six Months ended June 30, 2011 and June 30, 2010 | |||||||||||||
| (Dollars, in thousands, except share and per share data) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Gross Revenue | 317,696 | 313,087 | 623,243 | 622,638 | |||||||||
| Reimbursable expenses | 84,651 | 89,336 | 160,901 | 179,775 | |||||||||
| Net Revenue | 233,045 | 223,751 | 462,342 | 442,863 | |||||||||
| Costs and expenses | |||||||||||||
| Direct costs | 150,866 | 130,869 | 295,336 | 262,187 | |||||||||
| Selling, general and administrative | 57,344 | 58,923 | 117,227 | 111,217 | |||||||||
| Depreciation and amortization | 9,329 | 8,281 | 18,302 | 17,003 | |||||||||
| Restructuring Charges | - | - | 5,002 | - | |||||||||
| Total costs and expenses | 217,539 | 198,073 | 435,867 | 390,407 | |||||||||
| Income from operations | 15,506 | 25,678 | 26,475 | 52,456 | |||||||||
| Net interest income /(expense) | 106 | 61 | 172 | (131) | |||||||||
| Income before provision for income taxes | 15,612 | 25,739 | 26,647 | 52,325 | |||||||||
| Provision for income taxes | 2,530 | 2,866 | 5,217 | 7,253 | |||||||||
| Net income | 13,082 | 22,873 | 21,430 | 45,072 | |||||||||
| Net income per ordinary share | |||||||||||||
| Basic | $0.22 | $0.38 | $0.36 | $0.76 | |||||||||
| Diluted | $0.21 | $0.38 | $0.35 | $0.74 | |||||||||
| Weighted average number of ordinary shares | |||||||||||||
| Basic | 60,390,788 | 59,667,635 | 60,336,933 | 59,395,142 | |||||||||
| Diluted | 61,114,996 | 60,768,374 | 61,056,232 | 60,557,687 |
| ICON plc | |||||||||||
| Summary Balance Sheet Data | |||||||||||
| June 30, 2011 and December 31, 2010 | |||||||||||
| (Dollars, in thousands) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Net cash | 215,564 | 255,706 | |||||||||
| Accounts receivable | 171,014 | 164,907 | |||||||||
| Unbilled revenue | 143,323 | 101,431 | |||||||||
| Payments on account | (142,345) | (134,240) | |||||||||
| Total | 171,992 | 132,098 | |||||||||
| Working Capital | 324,779 | 329,350 | |||||||||
| Total Assets | 1,014,249 | 949,538 | |||||||||
| Shareholder's Equity | 711,800 | 669,999 | |||||||||
| http://www.iconplc.com |
Murray, Chief Financial Officer
Brennan, Snr VP Corp Fin
Farthing, VP Investor Relations