Full Press Release Details
Reports Fourth-Quarter and Full-Year 2016 Results, Issues First-Quarter
and Full-Year 2017 Guidance
of $1,953 million, up 74.2 percent constant currency, 73.1 percent
reported; on a combined company basis up 4.2 percent constant
currency, 3.5 percent at actual FX rates when adjusting for $55
million of deferred revenue for the fourth quarter
EBITDA of $541 million, up 129.2 percent constant currency, 133.7
percent reported; on a combined company basis up 14.5 percent constant
currency, 16.7 percent reported for the fourth quarter
GAAP Loss per Share of $0.74; Adjusted Diluted Earnings per Share of
$1.09 for the fourth quarter
share repurchase authorization increased to $2.5 billion from $1.5
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--February
14, 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 and full-year ended December 31, 2016. 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
providing combined company financial information, which 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, 2015,
with conforming adjustments to the current year presentation.
Fourth-Quarter 2016 Operating Results
Revenue for the fourth quarter of $1,953 million increased 74.2 percent
on a constant currency basis and 73.1 percent on a reported basis,
compared to the fourth quarter of 2015. 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 deferred revenue adjustment, and on a combined company
basis, revenue for the fourth quarter increased 4.2 percent on a
constant currency basis and 3.5 percent at actual FX rates.
Commercial Solutions revenue increased 927.4 percent in the fourth
quarter on a constant currency basis and 921.0 percent on a reported
basis versus the same period last year. Excluding the $55 million
deferred revenue adjustment, the legacy IMS Commercial business had
revenues of $860 million and grew 6.9 percent at constant currency and
6.1 percent at actual FX rates. The legacy Quintiles Commercial business
had revenues of $74 million and declined 14.0 percent at constant
currency and 14.2 percent at actual FX rates. Combined company
Commercial Solutions revenue of $934 million grew 4.9 percent in the
fourth quarter at constant currency and 4.2 percent at actual FX rates.
Combined company Research & Development Solutions revenue of $882
million grew 6.6 percent on a constant currency basis and 5.4 percent at
Combined company Integrated Engagement Services revenue of $192 million
declined 8.4 percent at constant currency and 6.7 percent at actual FX
Adjusted EBITDA of $541 million improved 129.2 percent on a constant
currency basis and 133.7 percent on a reported basis, compared to the
fourth quarter of 2015. On a combined company basis, Adjusted EBITDA
improved 14.5 percent at constant currency and 16.7 percent at actual FX
rates compared to the fourth quarter of 2015.
Fourth-quarter 2016 net loss was $178 million and loss per share was
0.74. This loss was primarily due to a one-time deferred tax charge
relating to certain changes in our assertion regarding reinvestment of
foreign earnings. Adjusted Net Income was $266 million and Adjusted
Diluted Earnings per Share was $1.09 in the fourth quarter.
"For our first quarter as a combined company, we delivered a strong
operational performance and achieved financial results in line with or
above our targets," said Ari Bousbib, chairman and CEO, QuintilesIMS.
"The post-merger integration process is advancing well and we are
pleased with our progress to date."
Full-Year 2016 Operating Results
Revenue of $5,364 million for the full year of 2016 increased 24.2
percent on a constant currency basis and 24.0 percent reported, compared
to the full year of 2015. On a full-year combined company basis, and
excluding the deferred revenue adjustment, revenue of $7,783 million for
the full year of 2016 increased 7.8 percent on a constant currency basis
and 7.4 percent at actual FX rates.
Commercial Solutions revenue increased 241.6 percent on a constant
currency basis and 239.8 percent on a reported basis. On a combined
company basis, and excluding the deferred revenue adjustment, the legacy
IMS Commercial business had revenues of $3,224 million and grew 11.3
percent at constant currency and 10.5 percent at actual FX rates. The
legacy Quintiles Commercial business had revenues of $291 million and
declined 9.6 percent on a constant currency basis and 9.8 percent at
actual FX rates. Combined company Commercial Solutions revenue of $3,515
million increased 9.1 percent at constant currency and 8.5 percent at
Research & Development Solutions revenue of $3,472 million grew 10.6
percent on a constant currency basis and 9.9 percent at actual FX rates.
Research & Development Solutions contracted net new business totaled
approximately $4.3 billion for the 12 months ended December 31, 2016.
Contracted backlog was approximately $9.5 billion at December 31, 2016,
stated at end of period exchange rates. The company expects
approximately $2.9 billion of this backlog to convert to revenue in the
Integrated Engagement Services revenue of $796 million declined 7.9
percent at constant currency and 5.8 percent at actual FX rates.
Adjusted EBITDA of $1,244 million increased 40.5 percent on a constant
currency basis and 46.3 percent on a reported basis, compared to the
full year of 2015. On a full-year combined company basis, Adjusted
EBITDA of $1,956 million increased 9.1 percent on a constant currency
basis and 12.6 percent at actual FX rates.
As of December 31, 2016, cash and cash equivalents were $1,198 million
and the principal amount of debt was $7,219 million, resulting in net
debt of $6,021 million. At the end of the fourth quarter, QuintilesIMS's
Gross Leverage Ratio was 3.7 times, and net Leverage Ratio was 3.1 times
trailing 12-month combined company Adjusted EBITDA.
QuintilesIMS repurchased $1.0 billion of its stock during the fourth
quarter of 2016. On February 12, 2017, the QuintilesIMS board authorized
an increase of the post-merger share repurchase authorization by $1.0