Full Press Release Details
Reports Third-Quarter 2017 Results
Diluted Earnings per Share $0.38; Adjusted Diluted Earnings per Share
billion of share repurchase completed post-merger, $557 million
completed during the third quarter
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--October
26, 2017--Quintiles IMS Holdings, Inc. (NYSE:Q), a leading global
provider of information, technology solutions and contract research
services to the healthcare and life sciences industries, today reported
financial results for the quarter ended September 30, 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.
Third-Quarter 2017 Operating Results
Revenue for the third quarter of $2,019 million increased 4.8 percent on
a reported basis, and 4.3 percent on a constant currency basis, compared
to the third quarter of 2016.
Combined company Research & Development Solutions revenue of $938
million grew 7.3 percent reported and 6.9 percent on a constant currency
basis, compared to the third quarter of 2016. Growth was impacted by a
year-over-year decline in the early clinical development business, due
to a facility closing in Europe during 2016. Excluding the early
clinical development business, reported growth for Research &
Development Solutions would have been 7.8 percent.
Combined company Commercial Solutions revenue of $887 million grew 4.0
percent reported and 2.9 percent at constant currency. Growth was
partially offset by the divestiture of the Encore business during the
quarter, a legacy Quintiles provider business. Excluding Encore,
reported growth for Commercial Solutions would have been 5.6 percent.
Combined company Integrated Engagement Services revenue of $194 million
was down 2.3 percent reported and down 1.1 percent at constant currency.
Third-quarter 2017 Adjusted EBITDA was $512 million. GAAP net income was
$84 million and GAAP diluted earnings per share was $0.38. Adjusted Net
Income was $260 million and Adjusted Diluted Earnings per Share was
"We delivered strong financial performance in the quarter," said Ari
Bousbib, chairman and CEO, QuintilesIMS. "Our innovative offerings
integrate rich information, advanced analytics, new technologies, and
domain expertise on a global basis, driving significant client wins."
Year-to-Date 2017 Operating Results
Revenue of $5,899 million for the first nine months of 2017 increased
2.1 percent reported and 2.7 percent on a constant currency basis,
compared to the first nine months of 2016. Under purchase accounting
rules, a portion of IMS Health's deferred revenue, which would have
otherwise been realized as revenue during the first and second quarters
of 2017 was eliminated. Excluding this $8 million deferred revenue
adjustment, and on a combined company basis, revenue for the first nine
months of 2017 increased 2.3 percent at actual FX rates and 2.9 percent
on a constant currency basis, compared with the first nine months of
Combined company Research & Development Solutions revenue of $2,700
million for the first nine months of 2017 grew 3.6 percent at actual FX
rates and 4.3 percent on a constant currency basis, compared with the
first nine months of 2016. Research & Development Solutions contracted
net new business totaled $4.37 billion for the 12 months ended September
30, 2017. The last twelve months book-to-bill ratio was 1.22 and
contracted backlog was $10.32 billion at September 30, 2017. The company
expects approximately $3.0 billion of this backlog to convert to revenue
in the next twelve months.
Combined company Commercial Solutions revenue of $2,611 million for the
first nine months of 2017 increased 2.1 percent on a reported basis and
2.5 percent on a constant currency basis, compared with the first nine
Combined company Integrated Engagement Services revenue of $596 million
for the first nine months of 2017 was down 2.3 percent at actual FX
rates and down 1.2 percent at constant currency, compared with the first
nine months of 2016.
For the first nine months of 2017 Adjusted EBITDA was $1,465 million.
GAAP net income was $233 million and GAAP diluted earnings per share was
$1.04. Adjusted Net Income was $739 million and Adjusted Diluted
Earnings per Share was $3.28.
As of September 30, 2017, cash and cash equivalents were $1,103 million
and the principal amount of debt was $9,800 million, resulting in net
debt of $8,697 million. At the end of the third quarter of 2017,
QuintilesIMS's Gross Leverage Ratio was 4.9 times, and Net Leverage
Ratio was 4.3 times trailing 12-month combined company Adjusted EBITDA.
On September 19, 2017, the company repurchased $380 million of stock
from the company's private equity sponsors. The company also repurchased
$177 million of its stock in the open market, for a total repurchase of
$557 million during the third quarter. QuintilesIMS had $295 million of
share repurchase authorization remaining at September 30, 2017.
Fourth-Quarter 2017 Guidance
For the fourth quarter, QuintilesIMS expects revenue between $2,120
million and $2,160 million, Adjusted EBITDA between $560 million and
$585 million and Adjusted Diluted Earnings per Share between $1.28 and
This financial guidance assumes current foreign currency exchange rates
remain in effect for the remainder of the year. Revenue guidance
excludes reimbursed expenses for the Research & Development Solutions
Webcast & Conference Call Details
QuintilesIMS will host a conference call at 9:00 a.m. Eastern Time today
to discuss its third-quarter 2017 financial results and 2017 guidance.
To participate, please dial 1-800-410-4983 in the United States and
Canada or +1-303-223-4375 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