Full Press Release Details
Reports Third Quarter 2017 Results
gross and net business wins of $691 million and $581 million
respectively; gross book to bill of 1.57 and net book to bill of 1.32.
Backlog of business grew 13% year on year to $4.78 billion.
revenue increased 4.8% to $440 million compared to the same quarter
last year, 3.2% on a constant currency basis.
customer revenue concentration reduced from 25.2% of revenue in Q3
2016 to 16.6% in Q3 2017. Outside our top customer revenue growth over
the last twelve months increased by 17%.
from operations in the quarter increased by 4.6% to $84.9 million, or
19.3% of revenue, compared to $81.2 million or 19.3% for the same
per share increased by 13.4% to $1.35 per share on a diluted basis
compared to a pro-forma $1.19 per diluted share for the same quarter
guidance for 2017 increased from a range of $5.18 - $5.38 to $5.30 -
$5.40 and revenue guidance re-affirmed in the range of $1,740 - 1,770
DUBLIN--(BUSINESS WIRE)--October 26, 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 third quarter ended
Gross business wins in the third quarter were $691 million and
cancellations in the quarter were $110 million, resulting in net
business wins of $581 million, a net book to bill of 1.32.
In the third quarter net revenue grew 4.8% year on year to $440 million
from $420 million in the same quarter last year. This represented 3.2%
constant currency growth with revenue outside of our top customer
growing 17% year over year.
Income from operations in the quarter increased by 4.6% to $84.9
million, or 19.3% of revenue, compared to $81.2 million or 19.3% on a
non GAAP basis for the same quarter last year.
Net income in the quarter increased by 10% to $74.2 million compared
with $67.4 million on a non GAAP basis in the same quarter last year.
Earnings per share increased to $1.35 per share on a diluted basis, from
$1.19 per share on a non GAAP basis for the same quarter last year, an
Year to date revenue for 2017 increased by 5.8% to $1,303.3 million from
$1,231.4 million in 2016.
Year to date income from operations for 2017, before non-recurring
charges, increased by 9.0% to $256.3 million or 19.7% of revenue
compared with $235.2 million or 19.1% of revenue in the previous year.
Year to date net income for 2017, before non-recurring charges,
increased by 11.3% to $217.2 million compared with $195.1 million last
Year to date earnings per share, before non-recurring charges, increased
to $3.96 per share on a diluted basis from $3.45 per diluted share last
year, an increase of 14.8%.
Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 50 days at September 30, 2017,
compared with 53 days at the end of June 2017 and 50 days at the end of
Cash generated from operating activities for the quarter was $108.8
million. Capital expenditure for the quarter was $8.5 million and the
acquisition of Mapi Group was completed for an initial cash
consideration of $144.1 million. As a result, at September 30, 2017, the
company had net debt of $56 million, compared to net debt of $34 million
at June 30, 2017 and net debt of $98 million at the end of September
CEO Dr. Steve Cutler commented, "We continue to execute well on our
strategic plans, and quarter three represented another very strong
quarter for ICON. We achieved record gross and net business wins of $691
million and $581 million respectively, resulting in a gross book to bill
of 1.57 and a net book to bill of 1.32. We grew our backlog by 13% year
on year to nearly $5 billion, revenues grew 4.8% to $440 million and our
top customer concentration reduced further to 16.6% from 25.2% last
year. Revenue growth outside our top customer was 17% year over year. In
addition, earnings per share grew 13.4% year over year to $1.35. Levels
of business opportunity continue to be strong and we remain optimistic
for the future as we continue to strive to be the CRO partner of choice
for the biopharma industry. We are therefore increasing our 2017
earnings guidance from a range of $5.18 - $5.38 to $5.30 - $5.40 and
reaffirming our revenue guidance to be in the range of $1,740 - $1,770
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 26, 2017
at 10:00 EDT [15:00 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