Full Press Release Details
Reports Second Quarter 2015
business wins of $571 million, representing a gross book to bill of
1.47. Net business wins of $486 million, representing a net book to
2 net revenue of $389 million, a 3.4% increase year on year and a 4%
increase on a constant dollar organic basis.
from operations up 41% year on year to $68.1 million or 17.5% of
per share of 95 cents, up 48% year on year.
guidance revised up 8% from a range of $3.60 - $3.70 to a range of
$3.90 - $4.00 and revenue revised from a range of $1,600 - $1,650
million to a range of $1,570 - $1,600 million.
expanded share repurchase programme of up to $400 million.
DUBLIN--(BUSINESS WIRE)--July 28, 2015--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 second quarter ended June 30,
In the second quarter net revenue grew 3.4% year on year to $388.7
million from $376 million in the same quarter last year. This
represented 9% constant currency growth and 4% constant dollar organic
growth year on year.
Income from operations increased by 41% to $68.1 million or 17.5% of
revenue compared to $48.3 million or 12.8% for the same quarter last
Net income increased by 44% to $58.6 million or 95 cents per share on a
diluted basis, compared with $40.8 million or 64 cents per share for the
same quarter last year.
Revenue in the first half of 2015 increased by 7.1 % to $776.9 million
from $725.7 million in 2014. This represented 12.4% constant currency
growth and 6.7% constant dollar organic growth year on year.
Income from operations in the first half of 2015, increased by 48% to
$134.8 million or 17.4% of revenue, compared with $91.3 million or 12.6%
of revenue in the previous year.
Net income in the first half of 2015 increased by 49% to $114.5 million,
compared with $77 million last year. Year to date earnings increased by
52% from $1.85 per share on a diluted basis compared to $1.22 per
diluted share last year.
Guidance for the full year 2015 has been updated with earnings increased
from a range of $3.60 - $3.70 to a range of $3.90 - $4.00 and revenue
reduced from a range $1,600 - $1,650 million to a range of $1,570 -
Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account were 45 days at June 30, 2015, compared
with 47 days at the end of March 2015.
For the quarter ended June 30, 2015, cash generated from operating
activities was $28.1 million and capital expenditure was $13.4 million
and $58 million of shares were repurchased. As a result, the company's
net cash amounted to $132 million at June 30, 2015, compared to net cash
of $172 million at March 31, 2015.
In addition to the $58 million of shares repurchased year to date, the
company's board has approved a further expansion of the share repurchase
programme of up to $400 million which will be funded using committed
financing and cash on hand.
CEO, Ciaran Murray commented "In quarter two we achieved a record
level of net new business awards of $486 million, a book to bill of 1.25
and grew our backlog by 8% over last year. Our operating margin expanded
to 17.5% and EPS was 95c an increase of 48% over last year. We expect
this margin performance to continue, and are raising 2015 earnings
guidance by 8%, from a range of $3.60 - $3.70 to a range of $3.90 -
$4.00. Our backlog conversion is lower than forecast so we expect 2015
revenue to be in the range of $1,570 - $1,600 million compared with our
previous range of $1,600 - $1,650 million. With our balance sheet
capacity we will continue our recent policy of increasing shareholder
value through the use of share buyback programmes and we are expanding
our share repurchase programme by up to $400 million".
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.
ICON will hold its second quarter conference call today, July 28, 2015
at 9:00 EST [14:00 Ireland & UK]. This call and linked slide
presentation can be accessed live from our website at http://investor.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.
This press release contains forward-looking statements. These statements
are based on management's current expectations and information currently
available, including current economic and industry conditions. These
statements are not guarantees of future performance or actual results,
and actual results, developments and business decisions may differ from
those stated in this press release. The forward-looking statements are
subject to future events, risks, uncertainties and other factors that
could cause actual results to differ materially from those projected in
the statements, including, but not limited to, the ability to enter into
new contracts, maintain client relationships, manage the opening of new
offices and offering of new services, the integration of new business
mergers and acquisitions, as well as economic and global market
conditions and other risks and uncertainties detailed from time to time
in SEC reports filed by ICON, all of which are difficult to predict and
some of which are beyond our control. For these reasons, you should not
place undue reliance on these forward-looking statements when making
investment decisions. The word "expected" and variations of such words
and similar expressions are intended to identify forward-looking
statements. Forward-looking statements are only as of the date they are
made and we do not undertake any obligation to update publicly any
forward-looking statement, either as a result of new information, future
events or otherwise. More information about the risks and uncertainties
relating to these forward-looking statements may be found in SEC reports
filed by ICON, including its Form 20-F, F-1, S-8 and F-3, which are
available on the SEC's website at http://www.sec.gov.