Full Press Release Details
Reports First-Quarter 2018 Results and Raises Full-Year 2018 Revenue
$2,563 million, up 8.6 percent reported and 5.2 percent at constant
EBITDA $547 million, up 8.5 percent reported and 7.4 percent at
Diluted Earnings per Share $0.32
Diluted Earnings per Share $1.34, up 19.6 percent
revenue guidance raised by $50 million to reflect first-quarter
currency benefit and organic operational strength
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--May 2,
2018--IQVIA Holdings Inc. ("IQVIA") (NYSE: IQV), a leading global
provider of advanced analytics, technology solutions, and contract
research services to the life sciences industry, today reported
financial results for the quarter ended March 31, 2018. On January 1,
2018, IQVIA adopted ASC 606 "Revenue from Contracts with Customers" as
required by the Financial Accounting Standards Board. Under this new
standard, IQVIA recognizes revenue in the Research & Development
Solutions segment on a percentage of completion basis. Additionally, ASC
606 requires that service revenue and reimbursed expense revenue be
consistently presented as one line on the income statement. Unless
stated otherwise, all financial information that follows has been
provided under ASC 606. For comparability, IQVIA provided a
reconciliation from ASC 605 to ASC 606 for 2017 actual results and 2018
guidance in its fourth-quarter and full-year 2017 earnings release.
Further, IQVIA is now providing recast 2017 financial results on a
First-Quarter 2018 Operating Results
Revenue for the first quarter of $2,563 million increased 8.6 percent on
a reported basis, and 5.2 percent on a constant currency basis, compared
to the first quarter of 2017. Commercial Solutions revenue of $985
million grew 14.1 percent reported and 9.3 percent at constant currency,
compared to the first quarter of 2017. Research & Development Solutions
revenue of $1,365 million grew 8.1 percent reported and 5.8 percent on a
constant currency basis. Research & Development Solutions had
approximately $390 million of reimbursed expenses in the quarter, some
of which was phased in earlier in the year than originally anticipated.
Contracted backlog including reimbursed expenses was $15.16 billion at
March 31, 2018, and the company expects approximately $4.6 billion of
this backlog to convert to revenue in the next twelve months. At
December 31, 2017, contracted backlog including reimbursed expenses was
$14.84 billion. For comparability, the company is reporting Research &
Development Solutions last twelve months net new business on a
contracted basis excluding reimbursed expenses. Under this approach,
Research & Development Solutions contracted net new business of $4.72
billion for the twelve months ended March 31, 2018, grew 15.7 percent
compared to the twelve months ended March 31, 2017. Integrated
Engagement Services revenue of $213 million declined 9.0 percent
reported and 12.8 percent at constant currency.
First-quarter 2018 Adjusted EBITDA of $547 million increased 8.5 percent
reported and 7.4 percent at constant currency. GAAP net income was $69
million and GAAP diluted earnings per share was $0.32. Adjusted Net
Income of $285 million grew 8.0 percent, and Adjusted Diluted Earnings
per Share of $1.34 grew 19.6 percent.
"We started the year with strong financial and operational performance,"
said Ari Bousbib, chairman and CEO of IQVIA. "Both our Commercial
Solutions and Research & Development Solutions businesses exceeded our
expectations; Integrated Engagement Services was in line with
expectations, and we are committed to turning this business around."
As of March 31, 2018, cash and cash equivalents were $960 million and
debt was $10,446 million, resulting in net debt of $9,486 million. At
the end of the first quarter of 2018, IQVIA's Gross Leverage Ratio was
5.1 times, and Net Leverage Ratio was 4.6 times, trailing twelve month
Adjusted EBITDA. At the beginning of the second quarter, IQVIA increased
its revolver capacity from $1.0 billion to $1.5 billion.
Toward the end of the first quarter, the company repurchased $86 million
of its stock in the open market, bringing total post-merger repurchases
to $3.7 billion. IQVIA had $1.6 billion of share repurchase
authorization remaining as of March 31, 2018.
Full-Year 2018 and Second-Quarter 2018 Guidance
The company is raising its full-year 2018 revenue guidance range to
$10,050 million to $10,250 million from $10,000 million to $10,200
million to reflect first-quarter currency benefit and organic
operational strength. Full-year 2018 guidance is reaffirmed for Adjusted
EBITDA of $2,150 million to $2,220 million and Adjusted Diluted Earnings
per Share of $5.20 to $5.45.
For the second quarter, IQVIA provides guidance in the table below.
| ($ millions, except per share data) | Second-Quarter 2017 Recast (1) | Second-Quarter 2018 Guidance | VPY % | |||||||||
| Revenue | $2,355 | $2,470 - $2,520 | 4.9% - 7.0% | |||||||||
| Adjusted EBITDA | $467 | $510 - $530 | 9.2% - 13.5% | |||||||||
| Adjusted Diluted EPS | $1.03 | $1.17 - $1.24 | 13.6% - 20.4% | |||||||||
| 1. Recast under ASC 606 "Revenue from Contracts with Customers." |
This financial guidance assumes current foreign currency exchange rates
remain in effect for the remainder of the year.
Webcast & Conference Call Details
IQVIA will host a conference call at 9:00 a.m. Eastern Time today to
discuss its first-quarter 2018 financial results. To participate, please
dial 1-800-704-8312 in the United States and Canada or +1-303-223-4369
outside the United States approximately 15 minutes before the scheduled
start of the call. The conference call and a presentation will be
accessible live via webcast on the Investors section of the IQVIA
website at http://ir.iqvia.com. An archived replay of the webcast
will be available online at http://ir.iqvia.com after 1:00 p.m.
IQVIA (NYSE:IQV) is a leading global provider of advanced analytics,
technology solutions, and contract research services to the life
sciences industry. Formed through the merger of IMS Health and
Quintiles, IQVIA applies human data science - leveraging the analytic
rigor and clarity of data science to the ever-expanding scope of human
science - to enable companies to reimagine and develop new approaches to
clinical development and commercialization, speed innovation, and
accelerate improvements in healthcare outcomes. Powered by the IQVIA
CORE , IQVIA delivers unique and actionable insights at the intersection
of large-scale analytics, transformative technology and extensive domain
expertise, as well as execution capabilities. With more than 55,000
employees, IQVIA conducts operations in more than 100 countries.
Cautionary Statements Regarding Forward Looking Statements
This press release contains "forward-looking statements" within the
meaning of the federal securities laws, including Section 27A of the