News Column

ICON Reports Second Quarter 2014 and Increases Earnings Guidance

July 30, 2014

Highlights – Second Quarter Fiscal 2014

  • Quarter 2 net revenue increased 12.5% year on year to $376 million.
  • Income from operations was $48.3 million or 12.8% of revenue.
  • Earnings per share were 64 cents.
  • Gross business wins were $521 million, representing a gross book to bill of 1.38. Net business wins were $458 million, representing a net book to bill of 1.22.
  • Earnings guidance increased from a range of $2.30 - $2.40 to a range of $2.62 - $2.68 and revenue guidance narrowed to a range of $1,490 million - $1,530 million.

    DUBLIN--(BUSINESS WIRE)-- ICONplc, (NASDAQ:ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the second quarter ended June 30, 2014.

    For the second quarter, net revenue grew 12.5% year on year to $376 million from $334.2 million in Q2 2013.

    Income from operations, excluding restructuring and other items, was $48.3 million or 12.8% of revenue, compared to $30.9 million or 9.3% for the same quarter last year.

    Net income, excluding restructuring and other items, was $40.8 million or 64 cents per share on a diluted basis, compared with $26.5 million or 43 cents per share for the same quarter last year.

    Revenue in the first half of 2014 increased 11.5% to $726 million from $651 million in 2013.

    Income from operations in the first half of 2014, excluding restructuring charges, was $91.3 million or 12.6% of revenue, compared with $58.3 million or 9% of revenue in the previous year.

    Net income in the first half of 2014, excluding restructuring charges, was $77 million or $1.22 per share on a diluted basis, compared with $48.7 million or 79 cents per diluted share last year.

    Guidance for the full year 2014 has been updated with EPS guidance increased from a range of $2.30 - $2.40 to a range of $2.62 - $2.68 and revenue narrowed to a range of $1.490 billion - $1.530 billion.

    Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 40 days at June 30, 2014, compared with 35 days at the end of March 2014.

    For the quarter ended June 30, 2014, cash used in operating activities was $54.9 million and capital expenditure was $6.8 million. In addition during the quarter the acquisition of Aptiv Solutions was completed for an initial cash consideration of $143.5m. The company’s net cash amounted to $175 million at June 30, 2014, compared to net cash of $364 million at March 31, 2014.

    CEO Ciaran Murray commented, “We continue to make progress in line with our strategic plan delivering $458 million of new business in the quarter, representing a book to bill of 1.22. In Quarter 2 revenues grew 12.5% over 2013 and operating margins expanded to 12.8%.Consequently we are increasing our full year EPS guidance from a range of $2.30 - $2.40 to a range of $2.62 - $2.68 and narrowing our revenue guidance to a range of $1.490 billion - $1.530 billion.”

    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 30, 2014 at 8:30 EST [13:30 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 outsourced development 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 83 locations in 38 countries and has approximately 11,000 employees. Further information is available at www.iconplc.com.

    Source: ICON plc

    Contact: Investor Relations 1-888-381-7923 or

    Brendan Brennan Chief Financial Officer + 353 –1-291-2000

    Simon Holmes EVP Investor Relations and Corporate Development + 353 –1-291-2000

    All at ICON.

    ICON/ICLR-F

     

    ICON plc

     

    Consolidated Income Statements (Unaudited)

    (Before restructuring and other items)

     

    Three and Six Months ended June 30, 2014 and June 30, 2013

     

    (Dollars, in thousands, except share and per share data)

     
            Three Months Ended     Six Months Ended
    June 30,     June 30,June 30,     June 30,
    2014201320142013
     
    Gross Revenue 506,404 469,626

    982,948

    888,685
     
    Reimbursable expenses 130,384 135,407 257,294 237,677
                       
    Net Revenue 376,020 334,219 725,654 651,008
     
    Costs and expenses
    Direct Costs 227,188 214,231 443,328 416,592
    Selling, general and administrative 87,622 77,548 166,570 153,112
    Depreciation and amortisation 12,922 11,520 24,470 22,976
                       
    Total costs and expenses 327,732 303,299 634,368 592,680
     
    Income from operations 48,288 30,920 91,286 58,328
     
    Net interest income / (expense) (38) (100) 53 (285)
                       
    Income before provision for income taxes 48,250 30,820 91,339 58,043
     
    Provision for income taxes 7,467 4,315 14,361 9,336
                       
     
    Net Income 40,783     26,505     76,978     48,707
     
    Net income per ordinary share
    Basic $0.66     $0.44     $1.24     $0.80
     
    Diluted $0.64     $0.43     $1.22     $0.79
     
    Weighted average number of ordinary shares
    Basic 61,934,923 60,724,296 61,855,783 60,555,945
     
    Diluted 63,343,269 61,898,903 63,290,292 61,607,757
     


     

    ICON plc

     

    Consolidated Income Statements (Unaudited)

    (US GAAP)

     

    Three and Six Months ended June 30, 2014 and June 30, 2013

     

    (Dollars, in thousands, except share and per share data)

     
            Three Months Ended     Six Months Ended
    June 30,     June 30,June 30,     June 30,
    2014201320142013
     
    Gross Revenue 506,404 469,626

    982,948

    888,685
     
    Reimbursable expenses 130,384 135,407 257,294 237,677
                       
    Net Revenue 376,020 334,219 725,654 651,008
     
    Costs and expenses
    Direct costs 227,188 214,231 443,328 416,592
    Selling, general and administrative 87,622 77,548 166,570 153,112
    Depreciation and amortization 12,922 11,520 24,470 22,976
    Restructuring and other items - 4,621 - 9,033
                       
    Total costs and expenses 327,732 307,920 634,368 601,713
     
    Income from operations 48,288 26,299 91,286 49,295
     
    Net interest expense (38) (100) 53 (285)
                       
    Income before provision for income taxes 48,250 26,199 91,339 49,010
     
    Provision for income taxes 7,467 3,720 14,361 7,486
                       
     
    Net income 40,783     22,479     76,978     41,524
     
    Net income per ordinary share
    Basic $0.66     $0.37     $1.24     $0.69
     
    Diluted $0.64     $0.36     $1.22     $0.67
     
    Weighted average number of ordinary shares
    Basic 61,934,923 60,724,296 61,855,783 60,555,945
     
    Diluted 63,343,269 61,898,903 63,290,292 61,607,757
     


     

    ICON plc

     

    Summary Balance Sheet Data

     

    June 30, 2014 and March 31, 2014

     

    (Dollars, in thousands)

     
            June 30,     March 31,
    20142014
    (Unaudited)(Unaudited)
     
     
    Net cash 175,372 363,521
     
    Accounts receivable 382,924 337,600
    Unbilled revenue 139,739 116,653
    Payments on account (290,754) (269,771)
    Total 231,909 184,482
     
    Working Capital 295,511 405,923
     
    Total Assets 1,525,740 1,484,541
     
    Shareholder's Equity 998,333 960,785
     





    ICON plc

    Investor Relations

    1-888-381-7923

    or

    Brendan Brennan, + 353 1 291 2000

    CFO

    or

    Simon Holmes, +3531 291 2000

    EVP IR & Corporate Development

    http://www.iconplc.com


    Source: ICON plc


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