Full Press Release Details
Reports Third Quarter 2014 and Increases Earnings Guidance
- Third Quarter Fiscal 2014
revenue increased 14.1% year on year to $388 million.
from operations was $59.4 million or 15.3% of revenue.
per share were 79 cents.
business wins were $504 million, representing a gross book to bill of
1.3. Net business wins were $468 million, representing a net book to
guidance increased from a range of $2.62 - $2.68 to a range of $2.74 -
$2.79 and revenue guidance updated to a range of $1,495 million -
DUBLIN--(BUSINESS WIRE)--October 22, 2014--ICON plc,
(NASDAQ: ICLR), a global provider of outsourced development services
to the pharmaceutical, biotechnology and medical device industries,
today reported its financial results for the third quarter ended
Net revenue grew 14.1% year on year to $388 million from $339.8 million
Income from operations, was $59.4 million or 15.3% of revenue, compared
to $33.2 million or 9.8% for the same quarter last year.
Net income, was $50.3 million or 79 cents per share on a diluted basis,
compared with $27.8 million or 45 cents per share for the same quarter
Year to date net revenues for 2014 increased 12.4% to $1,113 million
from $991 million in 2013.
Year to date income from operations was $150.7 million or 13.5% of
revenue, compared with income from operations, excluding restructuring
charges, of $91.5 million or 9.2% of revenue in the previous year.
Year to date net income for 2014 was $127.3 million or $2.01 per share
on a diluted basis, compared with net income, excluding restructuring
charge, of $76.5 million or $1.23 per share on a diluted basis last year.
Guidance for the full year 2014 has been updated, with EPS guidance
increased from a range of $2.62 - $2.68 to a range of $2.74 - $2.79 and
revenue guidance, updated for fx, from a range of $1,490 million -
$1,530 to a range of $1,495 million - $1,515 million.
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 38 days at September 30, 2014,
compared with 40 days at the end of June 2014.
For the quarter ended September 30, 2014, cash generated from operating
activities was $111 million and capital expenditure was $9.6 million. In
addition we completed $33m of share repurchases during the quarter.
Consequently the company's net cash amounted to $249 million at
September 30, 2014, compared to net cash of $175 million at June 30,
CEO Ciaran Murray commented, "Quarter three represented further
progress in the execution of our strategic plan. Net new business wins
in the quarter of $468m delivered a book to bill of 1.21. We further
expanded our gross and operating margins which reached 40.7% and 15.3%
respectively and as a result earnings per share increased 76% year over
year to 79c. Consequently we are increasing our full year EPS guidance
from a range of $2.62 - $2.68 to a range of $2.74 - $2.79. In addition,
given the recent strength of the dollar against the euro we are updating
our revenue guidance from a range of $1.490 billion-$1.530 billion to a
range of $1.495 billion - $1.515 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 third quarter conference call today, October 22, 2014
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.
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 83 locations in 38 countries and has
approximately 10,700 employees. Further information is available at www.iconplc.com.
| ICON plc Consolidated Income Statements (Unaudited) (Before restructuring and other items) Three and Nine Months ended September 30, 2014 and September 30, 2013 (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| Revenue: | ||||||||||||
| Gross revenue | $ | 519,127 | $ | 445,598 | $ | 1,502,075 | $ | 1,334,283 | ||||
| Reimbursable expenses | (131,538) | (105,788) | (388,832) | (343,465) | ||||||||
| Net revenue | 387,589 | 339,810 | 1,113,243 | 990,818 | ||||||||
| Costs and expenses: | ||||||||||||
| Direct costs | 229,963 | 213,666 | 673,291 | 630,258 | ||||||||
| Selling, general and administrative expense | 84,466 | 81,408 | 251,036 | 234,520 | ||||||||
| Depreciation and amortization | 13,737 | 11,575 | 38,207 | 34,551 | ||||||||
| Total costs and expenses | 328,166 | 306,649 | 962,534 | 899,329 | ||||||||
| Income from operations | 59,423 | 33,161 | 150,709 | 91,489 | ||||||||
| Net interest expense | 109 | (56) | 162 | (341) | ||||||||
| Income before provision for income taxes | 59,532 | 33,105 | 150,871 | 91,148 | ||||||||
| Provision for income taxes | (9,216) | (5,297) | (23,577) | (14,633) | ||||||||
| Net income | $ | 50,316 | $ | 27,808 | $ | 127,294 | $ | 76,515 | ||||
| Net income per Ordinary Share: | ||||||||||||
| Basic | $ | 0.81 | $ | 0.46 | $ | 2.06 | $ | 1.26 | ||||
| Diluted | $ | 0.79 | $ | 0.45 | $ | 2.01 | $ | 1.23 | ||||
| Weighted average number of Ordinary Shares outstanding: | ||||||||||||
| Basic | 61,878,429 | 61,069,260 | 61,863,332 | 60,732,605 | ||||||||
| Diluted | 63,442,607 | 62,473,645 | 63,434,260 | 61,977,026 |
| ICON plc Consolidated Income Statements (Unaudited) (US GAAP) Three and Nine Months ended September 30, 2014 and September 30, 2013 (Dollars, in thousands, except share and per share data) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| Revenue: | ||||||||||||
| Gross revenue | $ | 519,127 | $ | 445,598 | $ | 1,502,075 | $ | 1,334,283 | ||||
| Reimbursable expenses | (131,538) | (105,788) | (388,832) | (343,465) | ||||||||
| Net revenue | 387,589 | 339,810 | 1,113,243 | 990,818 | ||||||||
| Costs and expenses: | ||||||||||||
| Direct costs | 229,963 | 213,666 | 673,291 | 630,258 | ||||||||
| Selling, general and administrative expense | 84,466 | 81,408 | 251,036 | 234,520 | ||||||||
| Depreciation and amortization | 13,737 | 11,575 | 38,207 | 34,551 | ||||||||
| Restructuring and other items | - | - | - | 9,033 | ||||||||
| Total costs and expenses | 328,166 | 306,649 | 962,534 | 908,362 | ||||||||
| Income from operations | 59,423 | 33,161 | 150,709 | 82,456 | ||||||||
| Net interest expense | 109 | (56) | 162 | (341) | ||||||||
| Income before provision for income taxes | 59,532 | 33,105 | 150,871 | 82,115 | ||||||||
| Provision for income taxes | (9,216) | (5,297) | (23,577) | (12,783) | ||||||||
| Net income | $ | 50,316 | $ | 27,808 | $ | 127,294 | $ | 69,332 | ||||
| Net income per Ordinary Share: | ||||||||||||
| Basic | $ | 0.81 | $ | 0.46 | $ | 2.06 | $ | 1.14 | ||||
| Diluted | $ | 0.79 | $ | 0.45 | $ | 2.01 | $ | 1.12 | ||||
| Weighted average number of Ordinary Shares outstanding: | ||||||||||||
| Basic | 61,878,429 | 61,069,260 | 61,863,332 | 60,732,605 | ||||||||
| Diluted | 63,442,607 | 62,473,645 | 63,434,260 | 61,977,026 |
| ICON plc Summary Balance Sheet Data September 30, 2014 and June 30, 2014 (Dollars, in thousands) | ||||||||
| September 30, | June 30, | |||||||
| 2014 | 2014 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net cash | 248,612 | 175,372 | ||||||
| Accounts receivable | 372,953 | 382,924 | ||||||
| Unbilled revenue | 140,429 | 139,739 | ||||||
| Payments on account | (294,063) | (290,754) | ||||||
| Total | 219,319 | 231,909 | ||||||
| Working Capital | 323,727 | 295,511 | ||||||
| Total Assets | 1,572,726 | 1,525,740 | ||||||
| Shareholder's Equity | 1,011,158 | 998,333 |
Investor Relations, 1-888-381-7923
Brennan, + 353 -1-291-2000
Chief Financial Officer