Highlights
- Record net business wins of $521
million; net book to bill of 1.21.
- Backlog of business grew 9.1% year on
year to $4.31 billion.
- Net revenue increased 7.8% to $432
million compared to the same quarter last year.
- Top customer revenue concentration
reduced from 29% of revenue in Q1 2016 to 24% in Q1 2017.
- Income from operations increased 12.7%
to 19.8% of revenue compared to the same quarter last year.
- Earnings per share increased 15.2% to
$1.29 year on year.
- Earnings guidance increased by $0.06 to
reflect Q1 share repurchases to $5.06 - $5.26. Revenue guidance
reconfirmed in the range of $1.70 - $1.75 billion.
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 first quarter ended March 31, 2017.
Gross business wins in the first quarter were $580 million and
cancellations in the quarter were $59 million, resulting in net
business wins of $521 million, a net book to bill of 1.21.
In the first quarter net revenue grew 7.8% year on year to $432
million from $400.5 million in the same quarter last year.
Income from operations increased by 12.7% to $85.7 million, or
19.8% of revenue, compared to $76 million or 19% for the same
quarter last year.
Net income in the quarter increased by 13.4% to $71.4 million
compared with $63 million in the same quarter last year.
Earnings per share increased to $1.29 per share on a diluted
basis, from $1.12 per share for the same quarter last year, an
increase of 15.2%.
Day’s sales outstanding, comprising accounts receivable and
unbilled revenue less payments on account, were 47 days at March
31, 2017, compared with 50 days at the end of December 31, 2016 and
47 days at the end of March 2016.
Cash generated from operating activities for the quarter was
$159.3 million. Capital expenditure for the quarter was $8.3
million. Additionally, as part of ICON’s share buy-back program,
$96 million was spent on share repurchases in quarter one, with a
further $12 million to date in quarter two. As a result, at March
31, 2017, the company had net debt of $30 million, compared to net
debt of $88 million at December 31, 2016 and net debt of $100
million at end of March 2016.
CEO Dr. Steve Cutler commented, “I’m pleased with our results in
quarter one which represent a very solid start to 2017. We achieved
a net book to bill of 1.21, increased revenue by 8%, grew earnings
per share by 15% year on year and reduced the concentration of our
top customer by 500 basis points over the same period. We have now
completed over half of our current share repurchase program and as
a result we are increasing our earnings guidance by $0.06 to $5.06
- $5.26, and reconfirming our revenue in the range of $1.70 - $1.75
billion. Overall, ICON is well positioned to grow organically
supplemented by our M&A strategy which will enable us to
capitalize on the long term growth within the CRO market."
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 first quarter conference call today, April
27, 2017 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 87 locations in 38 countries and has approximately
12,300 employees. Further information is available at
www.iconplc.com.
ICON/ICLR-F
ICON plc
Consolidated Income Statements
(Unaudited)
(Before restructuring and other
items)
Three Months ended March 31, 2017 and
March 31, 2016
(Dollars, in thousands, except share
and per share data)
Three Months Ended
March31,
March31,
2017
2016
Revenue: Gross revenue 578,066 542,583 Reimbursable
expenses (146,112 ) (142,061 )
Net revenue 431,954 400,522
Costs and
expenses: Direct costs 250,459 228,603 Selling, general and
administrative expense 81,389 80,789 Depreciation and amortization
14,448 15,120
Total costs and expenses 346,296
324,512
Income from operations 85,658
76,010 Net interest expense (2,624 )
(2,881 )
Income before provision for income
taxes 83,034 73,129 Provision for income taxes
(11,625 ) (10,165 )
Net income
71,409 62,964 Net
income per Ordinary Share: Basic
$1.31
$1.14
Pro forma Diluted
$1.29
$1.12
Weighted average number of Ordinary Shares
outstanding: Basic 54,372,931
55,011,019 Pro forma Diluted 55,371,826
56,242,164
Consolidated Income Statements
(Unaudited)
(US GAAP)
Three Months ended March 31, 2017 and
March 31, 2016
(Dollars, in thousands, except share
and per share data)
Three Months Ended
March31,
March
31,
2017
2016
Revenue: Gross revenue 578,066 542,583 Reimbursable
expenses (146,112 ) (142,061 )
Net revenue 431,954 400,522
Costs and
expenses: Direct costs 250,459 228,603 Selling, general and
administrative expense 81,389 80,789 Depreciation and amortization
14,448 15,120 Restructuring and other items 0
0
Total costs and expenses
346,296 324,512
Income from operations 85,658 76,010 Net interest
expense (2,624 ) (2,881 )
Income before provision for income taxes 83,034 73,129
Provision for income taxes (11,625 )
(10,165 )
Net income 71,409
62,964 Net income per Ordinary
Share: Basic
$1.31
$1.14
Diluted
$1.29
$1.12
Weighted average number of Ordinary Shares
outstanding: Basic 54,372,931
55,011,019 Diluted 55,371,826
56,242,164
ICON plc
Summary Balance Sheet Data
March 31, 2017 and December 31,
2016
(Dollars, in thousands)
March 31,
December 31,
2017 2016 (Unaudited) (Audited)
Cash and short-term investments 318,966 260,587 Debt
(348,604 ) (348,511 ) Net (debt)/cash (29,638 ) (87,924 )
Accounts receivable 340,540 416,229 Unbilled revenue 226,152
192,687 Payments on account (266,704 ) (272,757 ) Total 299,988
336,159 Working Capital 466,662 463,552 Total Assets
1,855,215 1,825,843 Shareholder's Equity 944,509 945,174
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170427005746/en/
ICON plcInvestor Relations, 1-888-381-7923orBrendan Brennan,
+353–1-291-2000Chief Financial OfficerorJonathan Curtain,
+353–1-291-2000Vice President Corporate Finance and Investor
Relationshttp://www.iconplc.com
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