Full Press Release Details
Reports Second Quarter 2017 Results
net business wins of $563 million; net book to bill of 1.31. Backlog
of business grew 10% year on year to $4.44 billion.
revenue increased 5.0% to $431 million compared to the same quarter
last year, 6.0% on a constant currency basis.
customer revenue concentration reduced from 28% of revenue in Q2 2016
to 19.9% in Q2 2017.
from operations, before non-recurring charges, increased 10% to 19.9%
of revenue compared to the same quarter last year.
per share, before non-recurring charges, increased 15% to $1.31 year
increased to reflect the acquisition of Mapi Group and revised tax
rate for the second half of 2017. Earnings guidance increased from a
range of $5.06 - $5.26 to $5.18 - $5.38. Revenue guidance increased
from a range of $1.70 - $1.75 billion to $1.74 - $1.77 billion.
DUBLIN--(BUSINESS WIRE)--July 27, 2017--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,
Gross business wins in the second quarter were $649 million and
cancellations in the quarter were $86 million, resulting in net business
wins of $563 million, a net book to bill of 1.31.
In the second quarter net revenue grew 5.0% year on year to $431.0
million from $410.6 million in the same quarter last year. This
represented 6.0% constant currency growth and 2.6% constant dollar
organic growth year on year. Revenue outside of ICON's top customer grew
Income from operations, before non-recurring charges, in the quarter
increased by 9.9% to $85.8 million, or 19.9% of revenue, compared to
$78.0 million or 19.0% for the same quarter last year.
The effective tax rate in quarter 2 was 14% and the company now expects
the full year 2017 effective tax rate to be 12%.
Net income, before non-recurring charges, in the quarter increased by
10.7% to $71.6 million compared with $64.7 million in the same quarter
Earnings per share, before non-recurring charges, increased to $1.31 per
share on a diluted basis, from $1.14 per share for the same quarter last
year, an increase of 14.9%.
Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 53 days at June 30, 2017,
compared with 47 days at the end of March 31, 2017 and 46 days at the
Cash generated from operating activities for the quarter was $9.1
million. Capital expenditure for the quarter was $6.9 million.
Additionally, as part of ICON's share buy-back program, $11.7 million
was spent on share repurchases in quarter two. As a result, at June 30,
2017, the company had net debt of $34 million, compared to net debt of
$30 million at March 31, 2017 and net debt of $97 million at end of June
During the quarter the company recorded a charge of $7.8 million in
relation to restructuring costs. US GAAP income from operations after
these items amounted to $78.0 million or 18.1% of revenue. US GAAP net
income for the quarter was $64.8 million or $1.19 per diluted share.
CEO Dr. Steve Cutler commented, "During the quarter we
delivered a record $563 million of new business, representing a book to
bill of 1.31. Supported by a strong trailing twelve month book to bill
excluding our top customer of 1.42x, our backlog grew to over $4.4
billion, an increase of 10% year over year. In Quarter 2 revenues grew
5% over the same period in 2016, with our top customer concentration
reducing to less than 20% from 28% last year and revenue growth
excluding this customer increasing by nearly 17%. In addition, we
expanded our market leading service offering in the fast growing late
phase market by completing the acquisition of Mapi Group. This
acquisition, along with our revised tax rate, means we are increasing
both our full year EPS guidance to a range of $5.18 - $5.38 and our
revenue guidance to a range of $1.740 billion - $1.770 billion."
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 27, 2017
at 9:00 EDT [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.