Full Press Release Details
Reports Third Quarter 2015
business wins of $518 million, representing a gross book to bill of
1.31. Net business wins of $475 million, representing a net book to
3 net revenue of $395 million, a 1.8% increase year on year and a 4.1%
increase on a constant dollar organic basis.
from operations up 20.1% year on year to $71.4 million or 18.1% of
per share of $1.02, up 29% year on year.
DUBLIN--(BUSINESS WIRE)--October 27, 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 third quarter
ended September 30, 2015.
In the third quarter net revenue grew 1.8% year on year to $394.7
million from $387.6 million in the same quarter last year. This
represented 7.5% constant currency growth and 4.1% constant dollar
organic growth year on year.
Income from operations increased by 20.1% to $71.4 million or 18.1% of
revenue compared to $59.4 million or 15.3% for the same quarter last
Net income increased by 22% to $61.5 million or $1.02 per share on a
diluted basis, compared with $50.3 million or $0.79 per share for the
same quarter last year.
Year to date revenue for 2015 increased by 5.2% to $1,171.6 million from
$1,113.2 million in 2014. This represented 9.3% constant currency growth
and 4.4% constant dollar organic growth year on year.
Year to date income from operations for 2015, increased by 37% to $206.2
million or 17.6% of revenue, compared with $150.9 million or 13.5% of
revenue in the previous year.
Year to date net income for 2015 increased by 38% to $176 million,
compared with $127.3 million last year. Year to date earnings increased
by 43% from $2.87 per share on a diluted basis compared to $2.01 per
diluted share last year.
Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account were 46 days at September 30, 2015,
compared with 45 days at the end of June 2015.
For the quarter ended September 30, 2015, cash generated from operating
activities was $74 million, capital expenditure was $12.2 million and
$230 million of shares were repurchased as part of the $400 million
share repurchase programme announced in July 2015. As a result, at
September 30, 2015, the company had net debt of $33 million, compared to
net cash of $132 million at June 30, 2015.
CEO, Ciaran Murray commented " Quarter three was another
strong quarter for ICON. We achieved net new business wins of $475
million, which represented a book to bill of 1.2 and grew our backlog by
8% over last year. Revenue grew sequentially to $395 million
representing 4.1% constant dollar organic growth over the same period
last year. Our operating margin expanded to 18.1% and as a result
earnings per share increased 29% year over year to $1.02."
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 27, 2015
at 9:00 EDT [13:00 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 drug development solutions and 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 77 locations in 38 countries and
has approximately 11,700 employees. Further information is available at www.iconplc.com.
| ICON plc Consolidated Income Statements (Unaudited) Three and Nine Months ended September 30, 2015 and September 30, 2014 (Dollars, in thousands, except share and per share data) | |||||||
| Three Months Ended | Nine Months Ended | ||||||
| September 30, | September 30, | September 30, | September 30, | ||||
| 2015 | 2014 | 2015 | 2014 | ||||
| Revenue: | |||||||
| Gross revenue | $557,095 | $519,127 | $1,584,559 | $1,502,075 | |||
| Reimbursable expenses | (162,354) | (131,538) | (412,930) | (388,832) | |||
| Net revenue | 394,741 | 387,589 | 1,171,629 | 1,113,243 | |||
| Costs and expenses: | |||||||
| Direct costs | 226,555 | 229,963 | 679,593 | 673,291 | |||
| Selling, general and administrative expense | 82,435 | 84,466 | 243,310 | 251,036 | |||
| Depreciation and amortization | 14,366 | 13,737 | 42,535 | 38,207 | |||
| Total costs and expenses | 323,356 | 328,166 | 965,438 | 962,534 | |||
| Income from operations | |||||||
| 71,385 | 59,423 | 206,191 | 150,709 | ||||
| Net interest expense | (647) | 109 | (660) | 162 | |||
| Income before provision for income taxes | |||||||
| 70,738 | 59,532 | 205,531 | 150,871 | ||||
| Provision for income taxes | (9,196) | (9,216) | (29,534) | (23,577) | |||
| Net income | $61,542 | $50,316 | $175,997 | $127,294 | |||
| Net income per Ordinary Share: | |||||||
| Basic | $1.05 | $0.81 | $2.95 | $2.06 | |||
| Diluted | $1.02 | $0.79 | $2.87 | $2.01 | |||
| Weighted average number of Ordinary Shares outstanding: | |||||||
| Basic | 58,681,332 | 61,878,429 | 59,735,791 | 61,863,332 | |||
| Diluted | 60,391,448 | 63,442,607 | 61,349,827 | 63,434,260 |
| ICON plc Summary Balance Sheet Data September 30, 2015 and June 30, 2015 (Dollars, in thousands) | ||||||||||
| September 30, | June 30, | |||||||||
| 2015 | 2015 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||
| Cash and short-term investments | 316,987 | 192,196 | ||||||||
| Debt | (350,000) | (60,000) | ||||||||
| Net (debt)/cash | (33,014) | 132,196 | ||||||||
| Accounts receivable | 386,590 | 358,008 | ||||||||
| Unbilled revenue | 195,646 | 173,614 | ||||||||
| Payments on account | (294,774 ) | (268,494) | ||||||||
| Total | 287,462 | 263,128 | ||||||||
| Working Capital | 107,377 | 260,485 | ||||||||
| Total Assets | 1,812,792 | 1,636,254 | ||||||||
| Shareholder's Equity | 863,266 | 1,022,212 |
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