ICON Reports Another Strong Quarter With a 42% Increase in
Operating Income and EPS of $0.47 for the Third Quarter FY 2004
DUBLIN, Ireland, April 1 /PRNewswire-FirstCall/ -- - Highlights - Third Quarter
Fiscal 2004 * Third quarter net revenues increased 30% over the third quarter of fiscal 2003
to $76.9 million and increased 37% on a year-to-date basis.
* Income from operations increased 42% over the third quarter of fiscal 2003 to
$8.8 million and increased 40% in the nine months to February 29, 2004.
* Diluted earnings per share increased 24% for the third quarter to 47 cents
compared to 38 cents in the same quarter last year. Year-to-date diluted
earnings per share was 139 cents compared to 107 cents for the comparable period
last year.
* $91 million of net new business awarded to ICON during the quarter.
ICON plc (NASDAQ:ICLR), a global contract clinical research organisation, which
has approximately 2,450 employees providing services to the pharmaceutical and
biotech industries from 33 locations in 20 countries worldwide, today reported
the financial results for its third quarter ended February 29, 2004.
Net revenues for the quarter were $76.9 million, representing a 30% increase
over net revenues of $59.3 million for the same quarter last year. Excluding the
impact of acquisitions, revenue growth for the quarter was 22% over the same
quarter last year.
Income from operations was $8.8 million, which represents an increase of 42%
from the $6.2 million reported for the third quarter last year. Operating margin
for the quarter was 11.4% compared to 10.4% for the equivalent period last year. Net income for the quarter was $6.7 million or 47 cents per share, on a diluted
basis, compared with $4.6 million or 38 cents per share for the third quarter
last year.
In the nine months to February 29, 2004, net revenues were $219.0 million,
representing a 37% increase over net revenues of $159.7 million reported for the
first nine months of last year. Excluding the impact of acquisitions, revenue
growth was 24% for the nine months ending February 29, 2004.
Income from operations was $24.7 million, representing an increase of 40% from
the $17.7 million reported for the same period last year. Operating margin for
the nine months to February 29, 2004 was 11.3%, compared to the 11.1% in the
same period last year. Net income was $18.5 million or 139 cents per share, on a
diluted basis, compared with $13.0 million or 107 cents per share reported for
the same period last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 57 days at February 29, 2004 compared to 69 days at
November 30, 2003 and 64 days at May 31, 2003.
For the quarter ending February 29, 2004, cash generated from operations was
$24.5 million, and capital expenditure was $2.0 million. For the nine months to
February 29, 2004, cash generated from operations was $30.8 million, capital
expenditure was $9.7 million and payments of $12.8 million were made in relation
to acquisitions. As a result of these factors the company's net cash, short-term
debt and short-term investments were $67.1 million at February 29, 2004,
compared to $44.0 million at November 30, 2003 and $11.2 million at May 31,
2003.
"This has been very good quarter for ICON", commented Chairman, Dr John Climax. "Our clinical business again performed well and our laboratory business showed
good improvement. We achieved a very good level of new business wins and made
excellent progress with our working capital management, which resulted in strong
cash flows".
Commenting on the outlook, Dr Climax said "Net new business wins in the quarter
were $91 million, which was a substantial increase over the previous quarter and
ourbacklog has benefited from this. Nonetheless, we continue to be focused on
our business development efforts to ensure that momentum will be maintained into
our new fiscal year".
The company will hold its third quarter conference call today, April 1, 2004 at
10:00 EST [16:00 Ireland & UK / 17:00 CET]. This call and linked slide
presentation can be accessed live from our website at
http://www.iconclinical.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
"shareholders services". This calendar will be updated regularly.
The statements made in this Press Release may contain forward-looking statements
that involve a number of risks and uncertainties. In addition to the matters
described in this Press Release, the ability to maintain large client contracts
or enter into new contracts, maintain client relationships and the ability to
manage the opening of new offices, the integration of new business mergers and
acquisitions, as well as other risks and uncertainties detailed from time to
time in SEC reports filed by ICON, including its Form 20-F, F-1, S-8 and F-3,
may affect the actual results achieved by ICON. ICON disclaims any intent or
obligation to update these forward-looking statements.
The financial information presented herein has been prepared in accordance with
U.S. GAAP.
http://www.iconclinical.com/
ICON plc
Consolidated Income Statements
(Unaudited) Three and Nine Months ended February 29, 2004 and February 28, 2003
(Dollars, in thousands, except share and per share data) Three Months Ended Nine Months Ended
February 29, February 28, February 29, February 28,
2004 2003 2004 2003 Gross Revenue 112,831 79,205 332,181 236,270 Subcontractor
costs 35,969 19,894 113,177 76,565 Net Revenue 76,862 59,311 219,004 159,705 Costs and
expenses
Direct costs 42,502 33,366 120,271 87,507
Selling,
general and
administrative 22,708 17,890 65,774 49,481
Depreciation
and
amortization 2,894 1,869 8,215 5,017 Total costs
and expenses 68,104 53,125 194,260 142,005 Income from
operations 8,758 6,186 24,744 17,700 Interest
income (net) 75 120 197 379 Income before
provision of
income taxes 8,833 6,306 24,941 18,079 Provision for
income taxes 2,182 1,709 6,421 5,090 Net income 6,651 4,597 18,520 12,989 Net income per
ordinary share
Basic $0.49 $0.39 $1.45 $1.10 Diluted $0.47 $0.38 $1.39 $1.07 Weighted
average number
of ordinary
shares
Basic 13,622,514 11,818,704 12,797,089 11,804,576 Diluted 14,070,194 12,220,266 13,288,688 12,169,875
ICON plc
Summary Balance Sheet Data
February 29, 2004 and May 31, 2003
(Dollars, in thousands) February 29, May 31,
2004 2003
(unaudited) (audited) Cash and short-term investments 67,114 18,311
Short-term debt - (7,126)
Net cash 67,114 11,185 Accounts receivable 73,888 74,645
Unbilled revenue 56,340 44,783
Payments on account (59,979) (45,763)
Total 70,249 73,665 Working Capital 104,518 53,827 Total assets 320,116 235,014 Shareholder's equity 207,036 136,910
http://www.iconclinical.com/ DATASOURCE: Icon PLC CONTACT: Contact: Investor Relations +1-888-381-7923 or Sean Leech CFO + 353-1-291-2000 both at ICON. |