Full Press Release Details
4th Quarter and Full Year 2015 Results and 2016 Guidance
constant currency service revenue growth compared to the fourth
diluted adjusted EPS representing 26.8% growth compared to the fourth
quarter of 2014, fourth quarter GAAP reported diluted EPS of $0.85
business of $1.49 billion in the fourth quarter of 2015, representing
a 1.32 book-to-bill ratio and increasing backlog to $12.04 billion as
of December 31, 2015
million of share repurchases during the fourth quarter of 2015
year 2016 service revenue guidance of 7.0% to 8.5% constant currency
growth compared to full year 2015 and diluted adjusted EPS guidance of
$3.70 to $3.85 per share, representing growth of 11.1% to 15.6%
compared to full year 2015
DURHAM, N.C. Research Triangle Park, N.C.--(BUSINESS WIRE)--February 11,
2016--Quintiles Transnational Holdings Inc. ("Quintiles" or the
"Company") (NYSE: Q) today reported its financial results for the
quarter and year ended December 31, 2015.
For the three months ended December 31, 2015, the Company's service
revenues were $1.13 billion which represents growth of 6.1%, or $64.6
million, including an unfavorable foreign currency impact of $35.5
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 9.4% with 12.1% growth in the Product
Development segment and 2.2% growth in the Integrated Healthcare
Adjusted income from operations was $187.7 million in the fourth quarter
of 2015, representing growth of 14.3% compared to the same period last
year. The adjusted income from operations margin was 16.6%, representing
120 basis points of expansion compared to the same period last year and
including 140 basis points of favorable currency fluctuations. Adjusted
net income was $111.4 million in the fourth quarter of 2015,
representing growth of 21.3% compared to the same period last year.
Diluted adjusted earnings per share was $0.90 in the fourth quarter of
2015, representing growth of 26.8% compared to the same period last year.
Reported GAAP income from operations was $178.0 million, reported GAAP
net income attributable to Quintiles was $104.6 million, and reported
GAAP diluted earnings per share was $0.85 for the three months ended
December 31, 2015. Reconciliations of the non-GAAP measures to the
corresponding GAAP measures, including adjusted income from operations,
adjusted net income, and diluted adjusted earnings per share, are
attached to this press release.
For the year ended December 31, 2015, the Company's service revenue
growth was 3.9%, or $160.6 million, including an unfavorable foreign
currency impact of $212.3 million compared to 2014. At constant
currency, the Company's service revenues grew 9.0% with 7.2% growth in
the Product Development segment and 14.0% growth in the Integrated
Healthcare Services segment. Adjusted income from operations for the
year ended December 31, 2015 was $679.8 million, representing growth of
13.4% and 130 basis points of margin expansion compared to the same
period last year, resulting from a constant currency improvement in
Integrated Healthcare Services and the benefit of 130 basis points of
favorable currency fluctuations across the Company. Adjusted net income
was $418.9 million for the year ended December 31, 2015, representing
growth of 18.5% compared to the same period last year. Diluted adjusted
earnings per share was $3.33 for the year ended December 31, 2015,
representing growth of 23.3% compared to 2014. Reported GAAP income from
operations was $646.6 million, reported GAAP net income attributable to
Quintiles was $387.2 million and reported GAAP diluted earnings per
share was $3.08 for the year ended December 31, 2015.
Net new business of $1.49 billion was recorded for the fourth quarter,
representing a book-to-bill ratio of 1.32. For the year ended December
31, 2015, net new business totaled $5.32 billion, representing a
book-to-bill ratio of 1.23. The fourth quarter net new business
contributed to an ending backlog of $12.04 billion at December 31, 2015.
"We are pleased to have achieved another year of consistent growth in
2015, having delivered 9.0% constant currency revenue growth, 23.3%
diluted adjusted earnings per share growth, and a consolidated
book-to-bill of 1.23," said Quintiles Chief Executive Officer Tom Pike.
"As expected, our Product Development segment delivered a strong fourth
quarter, with 12.1% constant currency revenue growth and a 1.30
book-to-bill ratio. We believe we are well-positioned for the long-term
with our $12.04 billion of backlog."
The Product Development segment net new business totaled $1.10 billion
in the quarter ended December 31, 2015, which translates to a
book-to-bill ratio of 1.30. Product Development's service revenues at
constant currency grew 12.1%, or $93.7 million, during the fourth
quarter of 2015 compared to the same period last year. At actual foreign
exchange rates, Product Development service revenues were negatively
impacted by $22.4 million of unfavorable foreign currency fluctuations,
resulting in service revenue growth of 9.2% compared to the same period
last year. The constant currency revenue growth resulted from Q2
Solutions and volume-related increases in core clinical services,
clinical solutions provided on a functional resourcing basis, and
clinical trial support services. Product Development's income from
operations margin was 23.7% for the fourth quarter, representing an
improvement of 200 basis points compared to the same period last year,
including a benefit of 190 basis points from favorable currency
The Integrated Healthcare Services segment net new business totaled $390
million in the quarter ended December 31, 2015, which translates to a
book-to-bill ratio of 1.38. On a constant currency basis, Integrated
Healthcare Services' service revenues increased 2.2%, or $6.4 million,
during the fourth quarter of 2015 compared to the same period last year.
At actual foreign exchange rates, Integrated Healthcare Services'
service revenues declined 2.3% to $282.9 million, negatively impacted by
$13.1 million from unfavorable foreign currency fluctuations. The
constant currency revenue growth resulted from increases in real-world
and late phase research services, offset by a decline in commercial
services in North America due to cancellations, and a decline in Europe
due primarily to the conclusion of an agreement to distribute
pharmaceutical products in Italy in the fourth quarter of 2014.
Integrated Healthcare Services' income from operations margin was 8.2%
for the fourth quarter, representing a decline of 20 basis points