Highlights
- Net business wins (including pass-through) in the quarter of
$901 million; a book to bill of 1.30.
- Quarter 2 reported revenue of $695.1 million. This represents a
year on year increase of 8.3% or 10.5% on a constant currency
basis.
- Reported earnings per share attributable to the Group of $1.69,
an increase of 11.6% over Q2 2018*. Year to date earnings per share
attributable to the Group of $3.31, a 13.0% increase over prior
year*.
- Reaffirming revenue guidance range of $2,760 - $2,840 million
and earnings per share guidance range of $6.75 – $6.95. *before
non-recurring charges.
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, 2019.
CEO Dr. Steve Cutler commented, “Quarter two represented another
strong quarter for ICON. We continue to execute well on our
Patient, Site and Data delivery strategy which was enhanced further
by the acquisition of a majority shareholding in MeDiNova Research
in May. During the quarter we recorded $901 million of net business
wins, representing a quarterly book to bill of 1.30x and our
backlog grew by 11.1% over last year to $8.2 billion. As a result
revenue grew by 10.5% on a constant currency basis to $695 million
compared to the same quarter last year and earnings per share
increased by 12% to $1.69. Market demand fundamentals continue to
remain healthy and consequently we are reaffirming our 2019 revenue
guidance to be in the range of $2,760 – 2,840 million and our
earnings guidance to be in the range of $6.75 - $6.95.”
Second Quarter 2019 Results
Gross business wins (including pass-through) in the second
quarter were $1.04 billion and cancellations were $135 million.
This resulted in net business wins of $901 million and a book to
bill of 1.30.
Reported revenue for quarter 2 was $695.1 million. This
represents a year on year increase of 8.3% or 10.5% on a constant
currency basis.
Reported income from operations in the quarter was $106.1
million or 15.3% of revenue compared to $94.4 million or 14.7% of
revenue for Q2 2018*.
Reported net income attributable to the Group for the quarter
was $91.9 million or 13.2% of revenue compared with $82.9 million
or 12.9% of revenue in Q2 2018*.
Reported earnings per share attributable to the Group on a
diluted basis was $1.69, an increase of 11.6%, compared to $1.51
per share for Q2 2018*.
On a comparative basis, non-GAAP days sales outstanding were 61
days at June 30, 2019, compared with 59 days at the end of March
2019.
Cash generated from operating activities for the quarter was
$22.7 million. During the quarter, the Group completed the purchase
of a majority shareholding in MeDiNova for an initial payment of
$39.3 million, capital expenditure was $11.2 million and $40.1
million worth of stock was repurchased at an average price of
$135.48. As a result, at June 30, 2019, the company had net cash of
$81.8 million, compared to net cash of $128.6 million at March 31,
2019 and net cash of $23.9 million at the end of June 2018.
Year to date 2019 Results
Gross business wins (including pass-through) year to date were
$2.08 billion and cancellations were $291 million. This resulted in
net business wins of $1,786 million and a book to bill of 1.30.
Year to date reported revenue was $1,370 million. This
represents a year on year increase of 8.6% or 10.8% on a constant
currency basis.
Reported income from operations year to date was $208.0 million
or 15.2% of revenue compared to $186.1 million or 14.8% of revenue
for the equivalent prior year period*.
Reported net income attributable to the Group year to date was
$180.2 million or 13.2% of revenue compared with $161.0 million or
12.8% of revenue for the equivalent prior year period*.
Reported earnings per share on a diluted basis attributable to
the Group was $3.31, an increase of 13.0%, compared to $2.93 per
share for the equivalent prior year period*.
*before non-recurring charges.
Other Information
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 tomorrow, July
25th, 2019 at 10:00 EDT [15:00 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 employed
approximately 14,400 employees in 98 locations in 40 countries as
at June 30, 2019. Further information is available at
www.iconplc.com.
All at ICON.
Source: ICON plc
Contact: Investor Relations +1888 381 7923 or
Brendan Brennan Chief Financial Officer +353 1 291 2000
Jonathan Curtain Vice President Corporate Finance and Investor
Relations +353 1 291 2000
ICON plc
Condensed Consolidated
Statements of Operations
(Before restructuring and
other items)
Three and Six Months ended
June 30, 2019 and June 30, 2018
(Dollars, in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Six Months Ended
June
June
June
June
30, 2019
30, 2018
30, 2019
30, 2018
Revenue
695,137
641,610
1,369,989
1,261,735
Costs and expenses:
Direct costs
(490,656)
(449,226)
(966,153)
(879,818)
Selling, general and administrative
expense
(83,203)
(80,936)
(165,115)
(161,851)
Depreciation and amortization
(15,188)
(17,046)
(30,685)
(33,944)
Total costs and expenses
(589,047)
(547,208)
(1,161,953)
(1,075,613)
Income from operations
106,090
94,402
208,036
186,122
Net interest expense
(1,419)
(2,285)
(3,028)
(5,257)
Income before provision for income
taxes
104,671
92,117
205,008
180,865
Provision for income taxes
(12,456)
(9,212)
(24,496)
(19,862)
Net income
92,215
82,905
180,512
161,003
Net income attributable to non-controlling
interest
(358)
-
(358)
-
Net income attributable to the
Group
91,857
82,905
180,154
161,003
Net income per Ordinary Share attributable
to the Group:
Basic
$1.70
$1.53
$3.34
$2.98
Diluted
$1.69
$1.51
$3.31
$2.93
Weighted average number of Ordinary Shares
outstanding:
Basic
53,957,446
54,109,702
53,901,427
54,017,631
Diluted
54,449,117
54,852,453
54,355,705
54,875,451
ICON plc
Condensed Consolidated
Statements of Operations
(US GAAP)
Three and Six Months ended
June 30, 2019 and June 30, 2018
(Dollars, in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Six Months Ended
June
June
June
June
30, 2019
30, 2018
30, 2019
30, 2018
Revenue
695,137
641,610
1,369,989
1,261,735
Costs and expenses:
Direct costs
(490,656)
(449,226)
(966,153)
(879,818)
Selling, general and administrative
expense
(83,203)
(80,936)
(165,115)
(161,851)
Depreciation and amortization
(15,188)
(17,046)
(30,685)
(33,944)
Restructuring costs
-
(12,490)
-
(12,490)
Total costs and expenses
(589,047)
(559,698)
(1,161,953)
(1,088,103)
Income from operations
106,090
81,912
208,036
173,632
Net interest expense
(1,419)
(2,285)
(3,028)
(5,257)
Income before provision for income
taxes
104,671
79,627
205,008
168,375
Provision for income taxes
(12,456)
(7,759)
(24,496)
(18,409)
Net income
92,215
71,868
180,512
149,966
Net income attributable to non-controlling
interest
(358)
-
(358)
-
Net income attributable to the
Group
91,857
71,868
180,154
149,966
Net income per Ordinary Share attributable
to the Group:
Basic
$1.70
$1.33
$3.34
$2.78
Diluted
$1.69
$1.31
$3.31
$2.73
Weighted average number of Ordinary Shares
outstanding:
Basic
53,957,446
54,109,702
53,901,427
54,017,631
Diluted
54,449,117
54,852,453
54,355,705
54,875,451
ICON plc
Summary Balance Sheet
Data
June 30, 2019 and March 31,
2019
(Dollars, in
thousands)
June 30,
March 31,
2019
2019
(Unaudited)
(Unaudited)
Cash and short-term investments
431,279
477,937
Debt
(349,451)
(349,357)
Net cash/(debt)
81,828
128,580
Net Accounts Receivable
602,345
537,626
Working Capital
762,992
728,251
Total Assets
2,708,323
2,607,258
Shareholder's Equity
1,495,923
1,422,185
ICON/ICLR-F
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version on businesswire.com: https://www.businesswire.com/news/home/20190724005747/en/
ICON plc Contact: Investor Relations +1 888 381 7923 or Brendan
Brennan Chief Financial Officer +353 1 291 2000 Jonathan Curtain
Vice President Corporate Finance & Investor Relations +353 1
291 2000 http://www.iconplc.com
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