Full Press Release Details
Reports Fourth Quarter 2013 Results
billion of service revenues in the fourth quarter; First billion
dollar service revenue quarter in Quintiles' history
business wins of $1.3 billion representing a book-to-bill ratio of 1.29
quarter diluted adjusted EPS increased 41% to $0.58 and adjusted net
income increased 58% to $76.5 million compared to the fourth quarter
quarter GAAP reported diluted EPS increased 83% to $0.55 and GAAP
reported net income increased 109% to $73.0 million compared to the
fourth quarter of 2012
year 2014 diluted adjusted EPS guidance of $2.33 - $2.46 per share
representing growth of 11% to 17%
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--February 13,
2014--Quintiles Transnational Holdings Inc. ("Quintiles" or the
"Company") (NYSE: Q) today reported its financial results for the fourth
quarter ended December 31, 2013.
For the three months ended December 31, 2013, the Company's growth in
service revenues, excluding the impact of foreign currency fluctuations
("constant currency service revenue growth"), increased 7.7%, or $72.5
million compared to the same period last year. At actual foreign
exchange rates, service revenues grew $58.1 million to $1.0 billion,
representing growth of 6.2% compared to the same period last year
including an unfavorable foreign currency impact of 1.5%, or $14.4
million. Constant currency service revenue growth resulted from growth
in the Product Development segment including the acquisition of Novella
Clinical completed in September 2013, partially offset by a decrease in
the Integrated Healthcare Services segment.
Adjusted income from operations was $129.2 million in the fourth quarter
of 2013, representing growth of 12.8% compared to the prior year. The
adjusted income from operations margin was 12.9%, representing 80 basis
points of expansion compared to the same period last year. Adjusted net
income was $76.5 million in the fourth quarter of 2013, representing
growth of 58.2% compared to the same period last year. Diluted adjusted
earnings per share was $0.58 in the fourth quarter ended December 31,
2013, representing growth of 41.5% compared to the same period last
year. Reported GAAP income from operations was $127.0 million, reported
GAAP net income was $73.0 million and reported GAAP diluted earnings per
share was $0.55 for the three months ended December 31, 2013.
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, 2013, the Company's constant currency
service revenue growth was 5.1% or $186.6 million compared to 2012. At
actual foreign exchange rates, the Company's service revenues grew 3.1%
compared to 2012 to $3.8 billion, including an unfavorable foreign
currency impact of 2.0% or $70.6 million. Adjusted income from
operations for the year ended December 31, 2013 was $504.1 million,
representing growth of 13.2% and 110 basis points of margin expansion
compared to the same period last year. Adjusted net income was $268.9
million for the year ended December 31, 2013, representing growth of
28.7% compared to the same period last year. Diluted adjusted earnings
per share was $2.10 for the year ended December 31, 2013, representing
growth of 18.6% compared to the same period last year. Reported GAAP
income from operations was $462.3 million, reported GAAP net income was
$226.6 million and reported GAAP diluted earnings per share was $1.77
for the year ended December 31, 2013.
Net new business of $1.3 billion and $4.9 billion was recorded for the
quarter and twelve months ended December 31, 2013, respectively,
representing a book-to-bill ratio of 1.29 for both the fourth quarter
and year ended December 31, 2013. This net new business contributed to
an ending backlog of $9.9 billion on December 31, 2013.
"We enter 2014 positioned for growth with our strong 2013 performance,"
said Tom Pike, chief executive officer. "2013 was a year of entry into
the public markets punctuated by the strength of our leadership,
customer relationships, deepening scientific and therapeutic expertise,
and enhanced data and analytics capabilities, all coupled with
predictable service delivery. We made progress on our growth strategy,
concluding 2013 with another strong quarter in net new business
generating a book-to-bill ratio of 1.29 for the full year. In addition,
we expanded our best in industry income from operations margins and grew
our full year diluted adjusted earnings per share by 18.6%, compared to
the prior year. All of these achievements are enabled by the talented
and dedicated team of professionals working at Quintiles.
"We continue to see strong demand across all clinical phases of the
pipeline with a greater interest in end-to-end integrated solutions
underpinned with data analytics. We are well positioned entering 2014
with the largest backlog in the industry at $9.9 billion dollars which
will fuel 2014 constant currency service revenue and earnings growth. We
have one foot in today focused on delivery and another foot in tomorrow
focused on redefining our industry with innovations and valued solutions
that we believe will contribute to improving the healthcare landscape."
The Product Development segment net new business totaled $964.0 million
in the current quarter and $3.8 billion for the twelve months ended
December 31, 2013 which translates into a book-to-bill ratio of 1.24 for
the fourth quarter and 1.29 for the year ended December 31, 2013.
Product Development's constant currency service revenue growth was
10.7%, or $75.1 million during the fourth quarter of 2013 compared to
the same period last year. At actual foreign exchange rates, Product
Development's service revenues grew 10.2% compared to the same period
last year to $775.0 million. The constant currency service revenue
growth resulted from a volume-related increase in core clinical services
and global labs and the acquisition of Novella in 2013, partially offset
by the continuing wind down of two large projects. Product Development's
income from operations margin was 19.7% for the fourth quarter,
representing an improvement of 190 basis points compared to the same
The Integrated Healthcare Services segment net new business totaled
$335.0 million in the current quarter and $1.1 billion for the year
ended December 31, 2013 which translates into a book-to-bill ratio of
1.47 for the fourth quarter and 1.27 for the year ended December 31,
2013. On a constant currency basis, Integrated Healthcare Services'
service revenues declined 1.1% or $2.6 million during the fourth quarter