Highlights
- Record net business wins of $502
million, a net book to bill of 1.22.
- Backlog of business grows 8.6% year on
year to surpass $4 billion for the first time.
- Net revenue increases 5.7% to $411
million in the quarter.
- Income from operations increases 14.5%
to $78 million, before non-recurring charges.
- Earnings per share increases 20% to
$1.14, before non-recurring charges.
- Announces share repurchase programme of
up to c$400 million.
- Earnings guidance for 2016 re-affirmed
in the range of $4.60 - $4.80 and revenue guidance revised to be in
the range of $1,665 - $1,680 million.
ICON plc (NASDAQ:ICLR), a global provider
of drug development solutions and services to the pharmaceutical,
biotechnology and medical device industries, today reported its
financial results for the second quarter ended June 30, 2016.
Gross business wins in the second quarter were a record $622
million and cancellations in the quarter were $120 million,
resulting in record net business wins of $502 million, a net book
to bill of 1.22.
In the second quarter net revenue grew 5.7% year on year to
$410.6 million from $388.7 million in the same quarter last
year.
Income from operations, before non-recurring charges in the
quarter, increased by 14.5% to $78.0 million or 19.0% of revenue,
compared to $68.1 million or 17.5% for the same quarter last
year.
Net income before non-recurring charges in the quarter increased
by 10.4% to $64.7 million or $1.14 per share on a diluted basis,
compared with $58.6 million or $0.95 per share for the same quarter
last year.
Revenue in the first half of 2016 increased by 4.4% to $811.2
million from $776.9 million in 2015.
Income from operations in the first half of 2016, before
non-recurring charges, increased by 14.3% to $154.0 million or
19.0% of revenue compared with $134.8 million or 17.4% of revenue
in the previous year.
Net income in the first half of 2016, before non-recurring
charges, increased by 11.5% to $127.6 million compared with $114.5
million last year. Year to date earnings increased by 22% to $2.26
per share on a diluted basis compared to $1.85 per diluted share
last year.
Guidance for the full year 2016 has been updated with earnings
reaffirmed in the range of $4.60 - $4.80 and revenue revised to a
range of $1,665 - $1,680 million.
Day’s sales outstanding, comprising accounts receivable and
unbilled revenue less payments on account, were 46 days at June 30,
2016, compared with 47 days at the end of March 31, 2016 and 45
days at the end of June 2015.
Cash generated from operating activities for the quarter was
$17.9 million. Capital expenditure for the quarter was $12.2
million. As a result, at June 30, 2016, the company had net debt of
$97 million, compared to net debt of $100 million at March 31, 2016
and net cash of $132 million at end of June 2015.
At the company’s recent AGM we received shareholder approval to
repurchase shares. We will implement a share repurchase programme
of up to c$400m to be completed over the next 18-24 months.
During the quarter the company recorded a charge of $4.1 million
in relation to restructuring costs. US GAAP income from operations
after these items amounted to $73.9 million or 18% of revenue. US
GAAP net income for the quarter was $61.0 million or $1.08 per
diluted share.
CEO Ciaran Murray commented “Through a consistent focus on our
strategic plan we achieved a record level of net business awards of
$502 million and grew our backlog by almost 9% over last year. We
delivered record revenue of $411 million and grew earnings per
share by 20% to $1.14. We are reaffirming our 2016 earnings
guidance to be in the range of $4.60 to $4.80 and revising our
revenue guidance to be in the range of $1,665 - $1,680
million.”
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this press
release contains certain non-GAAP financial measures, including
non-GAAP operating and net income and non-GAAP diluted earnings per
share. While non-GAAP financial measures are not superior to or a
substitute for the comparable GAAP measures, ICON believes certain
non-GAAP information is useful to investors for historical
comparison purposes.
ICON will hold its second quarter conference call today, July
26, 2016 at 9:00 EDT [14:00 Ireland & UK]. This call and linked
slide presentation can be accessed live from our website at
http://investor.iconplc.com. A recording will also be available on
the website for 90 days following the call. In addition, a calendar
of company events, including upcoming conference presentations, is
available on our website, under “Investors”. This calendar will be
updated regularly.
This press release contains forward-looking statements. These
statements are based on management's current expectations and
information currently available, including current economic and
industry conditions. These statements are not guarantees of future
performance or actual results, and actual results, developments and
business decisions may differ from those stated in this press
release. The forward-looking statements are subject to future
events, risks, uncertainties and other factors that could cause
actual results to differ materially from those projected in the
statements, including, but not limited to, the ability to enter
into new contracts, maintain client relationships, manage the
opening of new offices and offering of new services, the
integration of new business mergers and acquisitions, as well as
economic and global market conditions and other risks and
uncertainties detailed from time to time in SEC reports filed by
ICON, all of which are difficult to predict and some of which are
beyond our control. For these reasons, you should not place undue
reliance on these forward-looking statements when making investment
decisions. The word "expected" and variations of such words and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are only as of the date they
are made and we do not undertake any obligation to update publicly
any forward-looking statement, either as a result of new
information, future events or otherwise. More information about the
risks and uncertainties relating to these forward-looking
statements may be found in SEC reports filed by ICON, including its
Form 20-F, F-1, S-8 and F-3, which are available on the SEC's
website at http://www.sec.gov.
ICON plc is a global provider of drug development solutions and
services to the pharmaceutical, biotechnology and medical device
industries. The company specialises in the strategic development,
management and analysis of programs that support clinical
development - from compound selection to Phase I-IV clinical
studies. With headquarters in Dublin, Ireland, ICON currently,
operates from 89 locations in 37 countries and has approximately
12,300 employees. Further information is available at
www.iconplc.com.
Source: ICON plc
ICON/ICLR-F
ICON plc
Consolidated Income Statements
(Unaudited)
(Before restructuring costs)
Three and Six Months ended June 30,
2016 and June 30, 2015
(Dollars, in thousands, except share
and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
June 30, June 30,
2016 2015
2016 2015 Revenue: Gross
revenue $589,647 $524,098 $1,132,230 $1,027,464 Reimbursable
expenses (179,017) (135,441) (321,078)
(250,576)
Net revenue 410,630 388,657 811,152 776,888
Costs and expenses: Direct costs 237,984 224,961
466,587 453,039 Selling, general and administrative expense 80,168
81,321 160,957 160,875 Depreciation and amortization 14,457
14,244 29,577 28,169
Total costs and
expenses 332,609 320,526 657,121 642,083
Income from operations 78,021 68,131 154,031 134,805
Net interest expense (2,839) (10) (5,720)
(13)
Income before provision for income taxes
75,182 68,121 148,311 134,792 Provision for income taxes
(10,525) (9,537) (20,690) (20,338)
Net income $64,657 $58,584 $127,621
$114,454 Net income per Ordinary Share: Basic $1.17
$0.97 $2.31 $1.90 Diluted $1.14
$0.95 $2.26 $1.85 Weighted average number of
Ordinary Shares outstanding: Basic 55,318,923
60,244,982 55,164,971 60,263,021 Diluted
56,580,799 61,801,687 56,427,516 61,849,326
Consolidated Income Statements
(Unaudited)
(US GAAP including restructuring
costs)
Three and Six Months ended June 30,
2016 and June 30, 2015
(Dollars, in thousands, except share
and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
June 30, June 30,
2016 2015
2016 2015 Revenue: Gross
revenue $589,647 $524,098 $1,132,230 $1,027,464 Reimbursable
expenses (179,017) (135,441) (321,078)
(250,576)
Net revenue 410,630 388,657 811,152 776,888
Costs and expenses: Direct costs 237,984 224,961
466,587 453,039 Selling, general and administrative expense 80,168
81,321 160,957 160,875 Depreciation and amortization 14,457 14,244
29,577 28,169 Restructuring costs 4,094 - 4,094
-
Total costs and expenses 336,703
320,526 661,215 642,083
Income from
operations 73,927 68,131 149,937 134,805 Net interest
expense (2,839) (10) (5,720) (13)
Income before provision for income taxes 71,088 68,121
144,217 134,792
Provision for income taxes
(10,014)
(9,537)
(20,179)
(20,338)
Net income $61,074 $58,584 $124,038
$114,454 Net income per Ordinary Share: Basic
$1.10 $0.97 $2.25 $1.90 Diluted $1.08
$0.95 $2.20 $1.85 Weighted average
number of Ordinary Shares outstanding: Basic 55,318,923
60,244,982 55,164,971 60,263,021
Diluted 56,580,799 61,801,687 56,427,516
61,849,326
ICON plc
Summary Balance Sheet Data
June 30, 2016 and March, 2016
(Dollars, in thousands)
June 30, March 31, 2016
2016 (Unaudited) (Unaudited)
Cash and short-term investments 250,951 247,857 Debt (348,322)
(348,278) Net (debt)/cash (97,371) (100,421) Accounts
receivable 366,903 362,322 Unbilled revenue 190,025 238,645
Payments on account (257,714) (318,061) Total 299,214 282,906
Working Capital 452,073 372,775 Total Assets
1,750,240 1,796,135 Shareholder's Equity 909,969 843,685
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726005678/en/
ICONInvestor Relations1-888-381-7923orBrendan BrennanChief
Financial Officer+ 353 –1-291-2000orSimon HolmesEVP Investor
Relations and Corporate Development+ 353
–1-291-2000http://www.iconplc.com
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