Full Press Release Details
Reports 3rd Quarter 2014 Results
consolidated service revenue growth - Integrated Healthcare Services
segment grew service revenues by 32.6% compared to the third quarter
book-to-bill ratio of 1.42 results from 12.8% growth in net new
business compared to the third quarter of 2013
quarter diluted adjusted EPS increased 22.6% to $0.65 per share
compared to the third quarter of 2013
quarter GAAP reported diluted EPS increased 42.0% to $0.71 per share
compared to the third quarter of 2013
full year 2014 service revenue guidance of $4.16 billion - $4.19
billion and increased diluted adjusted EPS guidance to $2.61 - $2.68
per share, representing diluted adjusted EPS growth of 26.7% to 30.1%
compared to full year 2013
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--October 30,
2014--Quintiles Transnational Holdings Inc. ("Quintiles" or the
"Company") (NYSE: Q) today reported its financial results for the third
quarter ended September 30, 2014.
For the three months ended September 30, 2014, the Company's service
revenues were $1.06 billion which represents growth of 13.8%, or $128.3
million compared to the same period last year at actual foreign exchange
rates. The Company's growth in service revenues, excluding the impact of
foreign currency fluctuations ("constant currency"), was 14.0% with 7.9%
growth in the Product Development segment and 33.9% growth in the
Integrated Healthcare Services segment.
Adjusted income from operations was $150.9 million in the third quarter
of 2014, representing growth of 13.9% compared to the same period last
year. The adjusted income from operations margin was 14.2%, which is
consistent with the same period last year. Adjusted net income was $85.0
million in the third quarter of 2014, representing growth of 20.2%
compared to the same period last year. Diluted adjusted earnings per
share was $0.65 in the quarter ended September 30, 2014, representing
growth of 22.6% compared to the same period last year.
Reported GAAP income from operations was $149.1 million, reported GAAP
net income was $92.7 million and reported GAAP diluted earnings per
share was $0.71 for the three months ended September 30, 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.
Net new business grew 12.8% compared to the same period last year to
$1.51 billion representing a book-to-bill ratio of 1.42 in the quarter
ended September 30, 2014. This net new business contributed to an ending
backlog of $10.75 billion at September 30, 2014.
"Quintiles is a story of consistent performance with a focus on industry
leadership, and I am proud to report that this story continued in the
third quarter of 2014," said Chief Executive Officer Tom Pike. "For the
third quarter, our consolidated revenue increased by 13.8% compared to
the same period last year."
"Further, I am pleased to report that net new business, revenues, and
EPS for the third-quarter grew at double-digit rates," Pike said. "We
finished the quarter with revenue growth of 32.6% in our IHS segment,
showcasing significant progress. The third quarter net new business
allowed Quintiles to keep its industry-leading backlog of $10.75
billion. Our strong performance continues to strengthen our platform
which allows us to capitalize on strategic priorities and create value
for our customers and investors," Pike explained.
The Product Development segment net new business totaled $1.27 billion
in the quarter ended September 30, 2014 which translates to a
book-to-bill ratio of 1.64. The net new business increased 47% compared
to the same period in 2013, led by the five-year renewal of a
significant contract in our clinical and data management functional
resourcing services businesses. Product Development's service revenues
grew 8.0% compared to the same period last year to $771.4 million at
actual foreign exchange rates. At constant currency exchange rates,
Product Development's service revenues grew 7.9%, or $56.3 million
during the third quarter of 2014 compared to the same period last year.
The service revenue growth resulted from volume-related increases in
global laboratory services, clinical trial support services, services
provided on a functional resource basis and from the Novella acquisition
in 2013, partially offset by the conclusion of a large clinical
solutions project which was delivered throughout 2013. Product
Development's income from operations margin was 20.5% for the third
quarter, representing an improvement of 80 basis points compared to the
same period last year, including 30 basis points from favorable currency
The Integrated Healthcare Services segment net new business totaled $244
million which translates to a book-to-bill ratio of .84 for the quarter
ended September 30, 2014. At actual foreign exchange rates, Integrated
Healthcare Services' service revenues increased 32.6%, or $71.1 million,
during the third quarter of 2014 compared to the same period last year
to $289.6 million including $19.2 million from the Encore acquisition,
partially offset by $2.8 million of unfavorable foreign currency
impacts. On a constant currency basis, Integrated Healthcare Services'
service revenues increased 33.9% during the third quarter of 2014
compared to the same period last year, primarily due to increases in
commercial solutions in Japan and North America as well as growth in
real-world and late phase research services partially offset by a
decline in commercial solutions in Europe. Integrated Healthcare
Services' income from operations margin was 6.9% for the third quarter,
representing an improvement of 160 basis points compared to the same
period last year, including unfavorable currency fluctuations of 30
General corporate and unallocated expenses were $27.2 million during the
quarter ended September 30, 2014 compared to $19.8 million for the same
Interest expense was $25.1 million during the quarter ended September
30, 2014 compared to $28.8 million for the same period last year.
Interest expense was lower than the same period in 2013 due to a
decrease in the average rate of interest.
Other income, net was $7.8 million during the quarter ended September
30, 2014 compared to $3.2 million of net expenses for the same period
last year. Other income, net was higher than the same period in 2013 due
to a change in fair value of contingent consideration payable for an
acquisition, partially offset by other expenses.