Full Press Release Details
Reports Third Quarter 2018 Results
the impact of ASC 606, record net business wins in the quarter of $605
million, a book to bill of 1.27.
the impact of ASC 606, closing backlog of $5.3 billion, an increase of
3 reported revenue of $655.0 million. Excluding the impact of ASC 606,
quarter 3 revenue was $476.4 million, representing an 8.2% increase
income from operations was $97.9 million, or 15.0% of revenue.
Excluding the impact of ASC 606, income from operations was $98.8
million, a 16.4% increase year on year.
earnings per share of $1.54. Year to date earnings per share before
non-recurring charges of $4.47. Excluding the impact of ASC 606,
earnings per share was $1.55, a 14.8% increase year on year.
DUBLIN--(BUSINESS WIRE)--October 24, 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 third quarter ended
CEO Dr. Steve Cutler commented, "Quarter 3 was another strong quarter
for ICON. Net business wins were a record $605 million,
representing a book to bill of 1.27 and our backlog grew by 11% over
last year to $5.3 billion. As a result, revenue grew over 8% to $476
million compared to the same quarter last year and earnings per share
increased by 15% to $1.55. I am very pleased with our continued ability
to execute our strategic plans which position us well for sustainable
revenue and EPS growth."
Third Quarter 2018 Results
Excluding the impact of ASC 606, gross business wins in the third
quarter were $716 million and cancellations were $111 million. This
resulted in net business wins of $605 million, a book to bill of 1.27.
Reported revenue for quarter 3 was $655.0 million. Excluding the impact
of ASC 606, quarter 3 revenue increased to $476.4 million from $440.3
million in the same quarter last year, an increase of 8.2%.
Reported income from operations in the quarter was $97.9 million or
15.0% of revenue. Excluding the impact of ASC 606, income from
operations increased by 16.4% to $98.8 million, or 20.7% of revenue,
compared to $84.9 million or 19.3% for the same quarter last year.
Reported net income for the quarter was $84.5 million or 12.9% of
revenue. Excluding the impact of ASC 606, net income increased by 15.1%
to $85.3 million, compared with $74.2 million in the same quarter last
Reported earnings per share on a diluted basis was $1.54. Excluding the
impact of ASC 606, diluted earnings per share increased by 14.8% to
$1.55, compared to $1.35 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
$2,139 million and cancellations were $344 million. This resulted in net
business wins of $1,795 million, a book to bill of 1.27.
Year to date reported revenue was $1,916.8 million. Excluding the impact
of ASC 606, year to date revenue increased to $1,412.9 million from
$1,303.3 million in the same quarter last year, an increase of 8.4%.
Reported income from operations year to date, before non-recurring
charges was $284.1 million or 14.8% of revenue. Excluding the impact of
ASC 606, income from operations before non-recurring charges increased
by 12.2% to $287.6 million, or 20.4% of revenue, compared to $256.3
million or 19.7% for the same quarter last year.
Reported net income year to date, before non-recurring charges was
$245.5 million or 12.8% of revenue. Excluding the impact of ASC 606, net
income before non-recurring charges increased by 14.5% to $248.7
million, compared with $217.2 million in the same quarter last year.
Reported earnings per share year to date on a diluted basis before
non-recurring charges was $4.47. Excluding the impact of ASC 606,
diluted earnings per share before non-recurring charges increased by
14.4% to $4.53, compared to $3.96 per share for the same quarter last
Days sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 49 days at September 30, 2018,
compared with 49 days at the end of June 2018 and 50 days at the end of
Cash generated from operating activities for the quarter was $128.1
million. Capital expenditure for the quarter was $11.2 million. As a
result, at September 30, 2018, the company had net cash of $142.3
million, compared to net cash of $23.9 million at June 30, 2018 and net
debt of $56.3 million at the end of September 2017.
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 nine months ended September 2017
are therefore presented under the previous revenue recognition
accounting principles.
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 tomorrow, October 25th,
2018 at 09:00 EDT [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
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