Full Press Release Details
4th Quarter 2014 Results and 2015 Guidance
growth in net new business compared to the fourth quarter of 2013
representing a book-to-bill ratio of 1.49
constant currency service revenue growth compared to the fourth
quarter diluted adjusted EPS increased 29.1% to $0.71 per share
compared to the fourth quarter of 2013
quarter GAAP reported diluted EPS increased 25.5% to $0.69 per share
compared to the fourth quarter of 2013
year 2015 service revenue guidance of 7.5% to 9.0% constant currency
growth compared to full year 2014 and diluted adjusted EPS guidance of
$3.02 - $3.13 per share, representing diluted adjusted EPS growth of
12% to 16% compared to full year 2014
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--February 12,
2015--Quintiles Transnational Holdings Inc. ("Quintiles" or the
"Company") (NYSE: Q) today reported its financial results for the
quarter ended December 31, 2014.
For the three months ended December 31, 2014, the Company's service
revenues were $1.06 billion which represents growth of 6.0%, or $60.1
million including an unfavorable foreign currency impact of $33.4
million compared to the same period last year. The Company's growth in
service revenues, excluding the impact of foreign currency fluctuations
("constant currency"), was 9.3% with 2.3% growth in the Product
Development segment and 33.0% growth in the Integrated Healthcare
Adjusted income from operations was $164.2 million in the fourth quarter
of 2014, representing growth of 27.1% compared to the same period last
year. The adjusted income from operations margin was 15.4%, representing
250 basis points of expansion compared to the same period last year,
including 90 basis points from favorable currency fluctuations. Adjusted
net income was $91.8 million in the fourth quarter of 2014, representing
growth of 25.8% compared to the same period last year. Diluted adjusted
earnings per share was $0.71 in the quarter ended December 31, 2014,
representing growth of 29.1% compared to the same period last year.
Reported GAAP income from operations was $158.9 million, reported GAAP
net income was $88.4 million and reported GAAP diluted earnings per
share was $0.69 for the three months ended December 31, 2014.
Reconciliations of the non-GAAP measures, including adjusted income from
operations, adjusted net income and diluted adjusted earnings per share
to the corresponding GAAP measures are attached to this press release.
For the year ended December 31, 2014, the Company's service revenue
growth was 9.4% or $357.5 million including an unfavorable foreign
currency impact of $25.7 million compared to 2013. At constant currency,
the Company's service revenues grew 10.1% with 6.3% growth in the
Product Development segment and 22.5% growth in the Integrated
Healthcare Services segment. Adjusted income from operations for the
year ended December 31, 2014 was $599.4 million, representing growth of
18.9% and 120 basis points of margin expansion compared to the same
period last year, including 60 basis points of margin improvement from
favorable currency fluctuations. Adjusted net income was $353.4 million
for the year ended December 31, 2014, representing growth of 33.9%
compared to the same period last year. Diluted adjusted earnings per
share was $2.70 for the year ended December 31, 2014, representing
growth of 31.1% compared to the same period last year. Reported GAAP
income from operations was $590.4 million, reported GAAP net income was
$356.4 million and reported GAAP diluted earnings per share was $2.72
for the year ended December 31, 2014.
Net new business grew 22.2% compared to the same period last year to
$1.59 billion representing a book-to-bill ratio of 1.49 in the quarter
ended December 31, 2014. For the year ended December 31, 2014, net new
business grew 14.4% compared to 2013 to $5.60 billion representing a
book-to-bill ratio of 1.34. The fourth quarter net new business
contributed to an ending backlog of $11.24 billion at December 31, 2014.
"A year ago, we said Quintiles was entering 2014 positioned for growth
and we achieved that goal by delivering an additional $383 million of
constant currency service revenue during 2014 representing growth of
10.1%, net new business growth of 14.4%, and diluted adjusted earnings
per share growth of 31.1%. These metrics paint a picture of a strong
year for Quintiles," said Quintiles Chief Executive Officer Tom Pike.
"We are well positioned for the long term with our industry leading
backlog. As the leader in biopharmaceutical services, we continue to
bring innovative insights and superior delivery of results to the
industry to increase the probability of success of our customers. Our
32,000 people are committed to our vision of bringing people and
knowledge together for a healthier world."
The Product Development segment net new business increased 28.0% in the
quarter ended December 31, 2014 to $1.23 billion which translates into a
book-to-bill ratio of 1.59 for the quarter. Product Development's
service revenues at constant currency grew 2.3%, or $18.0 million during
the fourth quarter of 2014 compared to the same period last year. At
actual foreign exchange rates, Product Development service revenues were
negatively impacted by $18.6 million of unfavorable foreign currency
impact resulting in service revenues being flat compared to the same
period last year at $774.4 million. The constant currency revenue growth
resulted from volume-related increases in clinical solutions and
services in Asia and Japan, services provided on a functional resource
basis, and clinical trial support services, partially offset by the
conclusion of a large clinical solutions project which was delivered
throughout 2013. Product Development's income from operations margin was
21.7% for the fourth quarter, representing an improvement of 200 basis
points compared to the same period last year, including 70 basis points
from operations at constant currency rates.
The Integrated Healthcare Services segment net new business increased
5.6% in the quarter ended December 31, 2014 to $354 million which
translates to a book-to-bill ratio of 1.22 for the quarter. On a
constant currency basis, Integrated Healthcare Services' service
revenues increased 33.0% or $75.5 million during the fourth quarter of
2014 compared to the same period last year, including $16.2 million from
the Encore acquisition. At actual foreign exchange rates, Integrated
Healthcare Services' service revenues increased 26.5% to $289.6 million
inclusive of the negative impact of $14.8 million from unfavorable
foreign currency impacts. The constant currency revenue growth resulted