Full Press Release Details
Reports First-Quarter 2017 Results and Raises Full-Year 2017 Adjusted
Diluted EPS Guidance
million GAAP revenue; $1,917 million before merger-related deferred
million Adjusted EBITDA
Diluted Earnings per Share $0.31; Adjusted Diluted Earnings per Share
billion in share repurchases completed during the first quarter
guidance reaffirmed for Revenue and Adjusted EBITDA; raised for
Adjusted Diluted Earnings Per Share
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--May 3,
2017--Quintiles IMS Holdings, Inc. (NYSE: Q), a leading global provider
of information, technology services and contract research to the
healthcare and life sciences industries, today reported financial
results for the quarter ended March 31, 2017. On October 3, 2016, the
merger of Quintiles Transnational Holdings Inc. and IMS Health Holdings,
Inc. was completed. To aid investors and analysts with year-over-year
comparability for the merged business, we are including company
financial information that combines the stand-alone Quintiles and IMS
Health financial information for revenue and Adjusted EBITDA as if the
merger had taken place on January 1, 2016, with conforming adjustments
to the current year presentation.
First-Quarter 2017 Operating Results
Revenue for the first quarter of $1,911 million increased 74.4 percent
on a constant currency basis and 72.5 percent on a reported basis,
compared to the first quarter of 2016. Under purchase accounting rules,
a portion of IMS Health's deferred revenue, which would have otherwise
been realized as revenue in future periods, must be eliminated.
Excluding this $6 million of deferred revenue adjustment, and on a
combined company basis, revenue for the first quarter of $1,917
increased 3.1 percent on a constant currency basis and 2.0 percent at
Combined company Research & Development Solutions revenue of $866
million grew 4.3 percent on a constant currency basis and 3.0 percent at
actual FX rates. Growth was offset by the closing of an early clinical
development facility in Europe during 2016. Research & Development
Solutions contracted net new business totaled $4.08 billion for the 12
months ended March 31, 2017. Contracted backlog was $9.66 billion at
March 31, 2017. The company expects approximately $2.9 billion of this
backlog to convert to revenue in the next twelve months.
Combined company Commercial Solutions revenue of $854 million grew 2.4
percent in the first quarter at constant currency and 1.3 percent at
actual FX rates. Growth was offset by a more than 50 percent
year-over-year decline in the Encore business, a legacy Quintiles
provider business that was acquired in 2014.
Combined company Integrated Engagement Services revenue of $198 million
was down 0.2 percent at constant currency and down 0.9 percent reported.
"We continue to deliver on our targets, with another quarter of steady
financial performance," said Ari Bousbib, chairman and CEO,
QuintilesIMS. "We are pleased with our progress in R&D Solutions as the
Next-Gen clinical offering is gaining traction and driving significant
First-quarter 2017 Adjusted EBITDA was $467 million. GAAP net income was
$74 million and GAAP diluted earnings per share was $0.31. Adjusted Net
Income was $238 million. Adjusted Diluted Earnings per Share of $1.01 in
the first quarter was above the company's previous guidance, driven by
operational performance. Share repurchases and financings completed
during the quarter had no net impact on first-quarter Adjusted Diluted
During the first quarter, QuintilesIMS issued 1.425 billion of senior
notes due 2025 with an interest rate of 3.25 percent. In addition, the
company also refinanced its term B loan in which the maturity was
As of March 31, 2017, cash and cash equivalents were $862 million and
the principal amount of debt was $8,383 million, resulting in net debt
of $7,520 million. At the end of the first quarter, QuintilesIMS's Gross
Leverage Ratio was 4.3 times, and Net Leverage Ratio was 3.8 times
trailing 12-month combined company Adjusted EBITDA.
On March 3, 2017, QuintilesIMS settled a transaction to repurchase $750
million of stock from two of the company's private equity sponsors, and
the founder of the legacy Quintiles organization. The company also
repurchased $550 million of its stock in the open market toward the end
of the quarter, for a total repurchase of $1.3 billion during the first
quarter of 2017. QuintilesIMS has $231 million of share repurchase
authorization remaining.
2017 Full-Year and Second-Quarter 2017 Guidance
Full-year 2017 guidance is reaffirmed for revenue of $8,000 million to
$8,100 million and reaffirmed for Adjusted EBITDA of $2,000 million to
$2,100 million. Adjusted Diluted Earnings per Share is raised to $4.45
to $4.60, reflecting the benefit of incremental first-quarter share
repurchases offset by the cost of incremental financings.
For the second quarter, QuintilesIMS expects revenue between $1,930
million and $1,970 million, Adjusted EBITDA between $470 million and
$490 million and Adjusted Diluted Earnings per Share between $1.02 and
This financial guidance assumes current foreign currency exchange rates
remain in effect for the remainder of the year. Revenue guidance
excludes reimbursed expenses.
Webcast & Conference Call Details
QuintilesIMS will host a conference call at 9:00 a.m. Eastern Time today
to discuss its first-quarter 2017 financial results and 2017 guidance.
To participate, please dial 1-800-408-6335 in the United States and
Canada or +1-303-223-2686 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 QuintilesIMS website at http://ir.quintilesims.com.
An archived replay of the webcast will be available online at http://ir.quintilesims.com
after 1:00 p.m. Eastern Time today.
QuintilesIMS (NYSE: Q) is a leading integrated information and
technology-enabled healthcare service provider worldwide, dedicated to
helping its clients improve their clinical, scientific and commercial
results. Formed through the merger of Quintiles Transnational and IMS
Health, QuintilesIMS's approximately 50,000 employees conduct operations
in more than 100 countries. Companies seeking to improve real-world
patient outcomes through treatment innovations, care provision and
access can leverage QuintilesIMS's broad range of healthcare
information, technology and service solutions to drive new insights and