Full Press Release Details
Reports Second Quarter 2018 Results
the impact of ASC 606, record net business wins in the quarter of $600
million; a book to bill of 1.27.
the impact of ASC 606, closing backlog of $5.2 billion, an increase of
2 reported revenue of $641.6 million. Excluding the impact of ASC 606,
quarter 2 revenue was $473.9 million, representing a 10% increase year
income from operations before non-recurring charges was $94.4 million,
or 14.7% of revenue. Excluding the impact of ASC 606 income from
operations before non-recurring charges was $96.0 million or 20.2% of
revenue, a 12% increase year on year.
earnings per share before non-recurring charges of $1.51. Year to date
earnings per share before non-recurring charges of $2.93, an increase
of 13% on 2017. Excluding the impact of ASC 606, earnings per share
before non-recurring items was $1.54, an 18% increase year on year.
guidance increased from a range of $2,520 - $2,640 million to a range
of $2,560 - $2,640 million. Earnings guidance increased from a range
of $5.91 - $6.11 to a range of $5.98 - $6.12.
DUBLIN--(BUSINESS WIRE)--July 25, 2018--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,
CEO Dr. Steve Cutler commented, "During the quarter we delivered a
new record $600 million of net business wins, representing a quarterly
book to bill of 1.27. Market demand fundamentals continue to remain
positive and supported by a strong trailing twelve month book to bill of
1.29, our backlog grew to $5.2 billion, an increase of 16% year over
year. In quarter 2 revenues grew 10% over the same period in 2017 and
along with continued efficient cost management and a quarterly effective
tax rate of 10%, we delivered further value to our shareholders with
earnings per share increasing by 18%. We are increasing our revenue
guidance to a range of $2,560 - $2,640 million and our earnings guidance
to a range of $5.98 - $6.12."
Second Quarter 2018 Results
Excluding the impact of ASC 606, gross business wins in the second
quarter were $720 million and cancellations were $120 million. This
resulted in net business wins of $600 million, a book to bill of 1.27.
Reported revenue for quarter 2 was $641.6 million. Excluding the impact
of ASC 606, quarter 2 revenue increased to $473.9 million from $431.0
million in the same quarter last year, an increase of 10.0%.
Reported income from operations in the quarter before non-recurring
charges was $94.4 million or 14.7% of revenue. Excluding the impact of
ASC 606, income from operations before non-recurring charges increased
by 11.9% to $96.0 million, or 20.2% of revenue, compared to $85.8
million or 19.9% for the same quarter last year.
Reported net income for the quarter before non-recurring charges was
$82.9 million or 12.9% of revenue. Excluding the impact of ASC 606, net
income before non-recurring charges increased by 17.7% to $84.3 million,
compared with $71.6 million in the same quarter last year.
Reported earnings per share on a diluted basis before non-recurring
charges was $1.51. Excluding the impact of ASC 606, diluted earnings per
share before non-recurring charges increased by 17.6% to $1.54, compared
to $1.31 per share for the same quarter last year.
Year to date 2018 Results
Excluding the impact of ASC 606, gross business wins year to date were
$1,423 million and cancellations were $233 million. This resulted in net
business wins of $1,190 million, a book to bill of 1.27.
Year to date reported revenue was $1,261.7 million. Excluding the impact
of ASC 606, year to date revenue increased to $936.5 million from $863.0
million in the same quarter last year, an increase of 8.5%.
Reported income from operations year to date, before non-recurring
charges was $186.1 million or 14.7% of revenue. Excluding the impact of
ASC 606, income from operations before non-recurring charges increased
by 10.1% to $188.7 million, or 20.2% of revenue, compared to $171.4
million or 19.9% for the same quarter last year.
Reported net income year to date, before non-recurring charges was
$161.0 million or 12.8% of revenue. Excluding the impact of ASC 606, net
income before non-recurring charges increased by 14.2% to $163.3
million, compared with $143.0 million in the same quarter last year.
Reported earnings per share on a diluted basis before non-recurring
charges was $2.93. Excluding the impact of ASC 606, diluted earnings per
share before non-recurring charges increased by 14.6% to $2.98, compared
to $2.60 per share for the same quarter last year.
We continued our share repurchase program in the quarter, buying $16.0
million worth of stock at an average price of $134.22 per share.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 49 days at June 30, 2018,
compared with 51 days at the end of March 2018 and 53 days at the end of
Cash generated from operating activities for the quarter was $39.2
million. Capital expenditure for the quarter was $8.9 million. As a
result, at June 30, 2018, the company had net cash of $23.9 million,
compared to net cash of $4.6 million at March 31, 2018 and net debt of
$33.8 million at the end of June 2017.
During the quarter the company recorded a charge of $12.5 million in
relation to restructuring costs. US GAAP income from operations after
these items amounted to $81.9 million or 12.8% of revenue. US GAAP net
income for the quarter was $71.9 million or $1.31 per diluted share.
The new revenue recognition standard (ASU No. 2014-09) Revenue from
Contracts with Customers' was effective for ICON plc from January 1,
2018. ICON has elected to adopt the new standard under the cumulative
effect transition method. Under this transition method, the new standard
is applied from January 1, 2018 without restatement of comparative
period amounts. The cumulative effect of initially applying the new
standard is reflected as an adjustment to opening equity at the date of
application. Results for the three and six months ended June 2017 are
therefore presented under the previous revenue recognition accounting
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