Full Press Release Details
Reports Third-Quarter 2016 Results, Combined Company Guidance and
Additional Merger Details
Third-Quarter 2016 Results
revenue up 3.9 percent reported, 3.6 percent constant currency;
Product Development revenue up 7.9 percent, 8.6 percent constant
GAAP Earnings Per Share: $0.82 reported, down 7.9 percent; Diluted
Adjusted Earnings per Share: $1.00, up 6.4 percent
Development net new business now reported on an as-contracted LTM
basis: $4.4 billion during the last 12 months
now reported on an as-contracted basis: $9.4 billion as of September
30, 2016 of which approximately $2.7
expected to convert to revenue over the next 12 months
Health Third-Quarter 2016 Results
up 7.5 percent reported, 6.8 percent constant currency
EBITDA up 9.0 percent reported, 5.0 percent constant currency
Net Income: $54 million; Adjusted Net Income: $132 million, up 2.2
percent reported and up 4.7 percent constant currency
Diluted Earnings per Share: $0.16; Adjusted Diluted Earnings per
Share: $0.39, up 2.5 percent and up 4.9 percent constant currency
Combined Company Guidance
2016 revenue guidance of $1,950 to $1,990 million, Adjusted EBITDA of
$500 to $515 million, and Adjusted Diluted EPS of $1.04 to $1.08 per
synergies doubled from previous guidance of $100 million annualized
savings exiting 2019 to $200 million
billion share repurchase authorization expected to be completed by end
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--November
2, 2016--Quintiles IMS Holdings, Inc. (NYSE:Q) today reported financial
results for the quarter ended September 30, 2016 for Quintiles
Transnational Holdings, Inc. on a standalone basis, the last quarter
prior to its merger with IMS Health Holdings, Inc. on October 3, 2016,
with QuintilesIMS continuing as the surviving corporation. While the
separate corporate existence of IMS Health ceased following the merger,
as did its reporting obligations with the Securities and Exchange
Commission, today the company also provides financial results for IMS
Health on a standalone basis for the quarter ended September 30, 2016.
Quintiles Transnational Holdings Inc. Results
For the three months ended September 30, 2016, Quintiles' service
revenues were $1.14 billion, up 3.9 percent, or $43 million, versus last
year. At constant currency, Quintiles' service revenues grew 3.6
percent, with 8.6 percent growth in the Product Development segment and
a decline of 10.6 percent in the Integrated Healthcare Services segment.
Reported GAAP income from operations was $168 million in the third
quarter, an increase of 0.4 percent compared with the prior year, and
adjusted income from operations was $199 million, up 11.2 percent
compared with last year. Income from operations margin was 14.8 percent,
50 basis points below last year, and the adjusted income from operations
margin was 17.5 percent, 110 basis points higher compared with last
year, including 70 basis points of benefit from currency fluctuations.
Reported GAAP net income attributable to Quintiles was $99 million in
the third quarter of 2016, down 10.9 percent compared with the same
period last year, and adjusted net income was $121 million, 2.5 percent
higher than last year. Reported GAAP diluted earnings per share was
$0.82 for the third quarter, down 7.9 percent compared with the same
period last year and negatively affected by impairment and
merger-related charges. Diluted adjusted earnings per share was $1.00,
6.4 percent higher than the prior year.
Beginning with the third quarter of 2016, we are now reporting net new
business and backlog on an as-contracted basis for Product Development
only, with net new business reported on a rolling basis for the last
twelve months. Previously, net new business included non-binding written
awards, which was consistent with industry practice. Net new business
totaled $4.4 billion for the 12 months ended September 30, 2016 as
compared to $4.0 billion in the prior year. Ending Product Development
contracted backlog was $9.4 billion at September 30, 2016, and we expect
approximately $2.7 billion of this backlog to convert to revenue in the
Product Development's service revenues of $874 million grew 8.6 percent
at constant currency and 7.9 percent at actual foreign exchange rates
during the third quarter of 2016 compared with the same period last
year. Product Development's income from operations margin was 23.7
percent for the third quarter, 130 basis points improved versus the same
period last year, including 70 basis points of benefit from currency
Integrated Healthcare Services' service revenues of $262 million
declined 10.6 percent on a constant currency basis and 7.5 percent at
actual foreign exchange rates. The constant currency revenue decline
resulted from a decrease in commercial services, partially offset by
growth in real-world and late phase research services. Integrated
Healthcare Services' income from operations margin was 8.7 percent for
the third quarter, up 20 basis points compared with the same period last
General corporate and unallocated expenses were $31 million during the
quarter, compared with $26 million for the same period last year. In the
third quarter, Quintiles recognized $4 million of expenses related to
the merger with IMS Health. Interest expense was $25 million during the
quarter and $25 million for the same period last year.
The GAAP effective income tax rate was 27.1 percent for the third
quarter of 2016, compared with 28.0 percent for the same period in 2015.
During the third quarter of 2016, Quintiles recognized $28 million of
impairment losses in its Encore reporting unit.
For the nine months ended September 30, 2016, Quintiles' constant
currency service revenue of $3.4 billion grew 6.6 percent at constant
currency, including constant currency growth of 11.4 percent for Product
Development and 6.7 percent reported, compared with the same period in
2015. For the nine months ended September 30, 2016, reported GAAP income
from operations was $497 million, up 6.1 percent compared with the same
period in 2015, and adjusted income from operations was $566 million,
14.9 percent higher than the same period in 2015. Income from operations
margin was 14.6 percent, down 10 basis points, and the adjusted income
from operations margin was 16.6 percent, up 120 basis points versus last
year, including 120 basis points of benefit from currency fluctuations.
Reported GAAP net income was $293 million for the third quarter, 3.5
percent higher than the same period in 2015, and Adjusted Net Income was