Full Press Release Details
icon6k092804ex99-1.txt
ICON Reports Strong Results with 24% increase in operating income in First
Quarter FY 2005 (NASDAQ:ICLR)
Highlights - First Quarter Fiscal 2005
* First Quarter net revenues increased 14% over the first quarter of fiscal
2004 to $78.3 million.
* Income from operations increased by 24% over the first quarter of fiscal
2004 to $9.5 million.
* Diluted earnings per share increased 18% for the first quarter to 52 cents
compared to 44 cents for the same quarter last year.
* $93 million of gross ($46 million net) new business awarded to ICON during
Dublin, Ireland, September 28, 2004 - ICON plc (NASDAQ: ICLR), a global contract
clinical research organisation, which has over 2,550 employees providing
services to the pharmaceutical, biotech and medical device industries from 35
locations in 21 countries worldwide, today reported the financial results for
its first quarter ended August 31, 2004.
Net revenues for the quarter were $78.3 million, representing a 14% increase
over net revenues of $68.9 million for the same quarter last year. Excluding the
impact of acquisitions, revenue growth was 8% over the same quarter last year.
Income from operations was $9.5 million, which represents an increase of 24%
from the $7.6 million reported for the first quarter last year. Operating margin
for the quarter was 12.1%, compared with 11.1% for the equivalent period last
year. Net income for the quarter was $7.3 million or 52 cents per share, on a
diluted basis, compared with $5.6 million or 44 cents per share for the first
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 59 days at August 31, 2004, a decrease from the 60
days reported at May 31, 2004.
For the quarter ending August 31, 2004, capital expenditure was $4.5 million and
$9.9 million was paid in relation to the acquisition of 70% of the common stock
of Beacon Biosciences Inc, on July 1, 2004. As a result, the company's net cash,
short-term debt and short-term investments were $65.6 million at August 31,
2004, compared to $78.8 million at May 31, 2004.
"We are pleased with the performance in our first quarter of fiscal 2005",
commented Chairman Dr. John Climax. "Our operating margins were strong, earnings
per share increased by 18% and we made further progress on our strategic
development with the acquisition of a 70% interest in Beacon Biosciences, Inc".
Commenting on the outlook, Dr Climax said "As previously indicated, due to the
high level of recent delays and cancellations we expect a small sequential
decline in revenues for our second quarter of Fiscal 2005. We remain confident
in the outlook for the business and anticipate a re-establishment of revenue
growth in the second half of the year."
The company will hold its first quarter conference call today, September 28,
2004 at 08:00 EST [13:00 Ireland & UK / 14:00 CET]. This call and linked slide
presentation can be accessed live from our website at
http://www.iconclinical.com. A recording will also be available on the website
for 90 days following the call. In addition, a calendar of company events,
upcoming conference presentations, is available on our website, under
"shareholders services". 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.
The financial information presented herein has been prepared in accordance with
Contact : Investor Relations 1-888-381-7923 or Sean Leech CFO + 353 -1-291-2000
Consolidated Income Statements
Three months ended August 31, 2004 and 2003
(Dollars, in thousands, except share and per share data)
Gross Revenue $117,195 106,177
Subcontractor costs 38,856 37,242
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Net Revenue 78,339 68,935
Direct costs 42,453 37,699
Selling, general and administrative 23,339 21,025
Depreciation 3,062 2,589
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Total costs and expenses 68,854 61,313
Income from operations 9,485 7,622
Interest income (net) 164 47
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Income before provision of income taxes 9,649 7,669
Provision for income taxes 2,322 2,065
Minority Interest 22 -
------------ -------------
Net income 7,305 5,604
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Net income per ordinary share
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Weighted average number of ordinary shares
Basic 13,837,986 12,153,772
Diluted 14,105,288 12,606,971
Summary Balance Sheet Data
August 31, 2004 and May 31, 2004
(Dollars, in thousands)
(unaudited) (audited)
Cash and short-term investments 72,573 78,763
Short-term debt (7,000) -
Net cash 65,573 78,763
Accounts receivable 70,125 74,079
Unbilled revenue 66,984 59,861
Payments on account (61,376) (61,960)
Working Capital 110,411 113,813
Total assets 341,016 335,323
Shareholder's equity 222,454 216,760