Highlights
- Record net business wins in the quarter of $1,080 million; a
book to bill of 1.42. Full year net business wins of $3.8 billion;
a net book to bill of 1.38.
- Record closing backlog of $9.7 billion, an increase of 13.4%
year on year.
- Quarter 4 reported revenue of $760.2 million representing a
year on year increase of 4.8% and 8.3% increase on Quarter 3 2020.
Full year reported revenue of $2,797 million representing a 0.3%
year on year decrease.
- Adjusted earnings per share attributable to the Group for the
quarter of $1.90, compared to $1.83 in Quarter 4 2019. Full year
adjusted earnings per share* attributable to the group of $6.53,
compared to $6.88 in 2019.
- Strong cash generation resulting in a record net cash position
of $494 million. Days sales outstanding reduced to 41 days from 54
days at December 31, 2019.
- Full year 2021 revenue guidance in the range of $3,200 - $3,300
million, a year over year increase of 14.4% - 18.0%. Full Year 2021
earnings per share guidance in the range of $8.10 - $8.50, a year
over year increase of 24.0% - 30.2%.
- ICON announces that it will acquire PRA Health Sciences to
create a world leading healthcare intelligence and clinical CRO.
(details covered in separate press release)
*before non-recurring charges.
ICON plc (NASDAQ: ICLR), a global provider
of outsourced drug and device development and commercialisation
services to pharmaceutical, biotechnology, medical device and
government and public health organisations, today reported its
financial results for the fourth quarter ended December 31,
2020.
CEO Dr. Steve Cutler commented, “Quarter 4 represented a very
strong end to 2020 with ICON securing record net business wins of
$1,080 million, delivering a quarterly book to bill of 1.42 and
growing our backlog to over $9.7 billion, an increase of 13% year
on year. As a result, revenue grew 5% to $760 million compared to
the same quarter last year and earnings per share increased by 4%
to $1.90.
On a standalone company basis, we expect 2021 to be another year
of robust revenue and earnings growth with revenue guidance in the
range of $3,200 - $3,300 million, a year over year increase of 14%
- 18% and earnings per share guidance in the range of $8.10 -
$8.50, a year over year increase of 24% - 30%.
I am incredibly proud of our entire workforce and would like to
thank them for their tireless efforts and resilience throughout
this challenging year. I want to reiterate my continued
appreciation for their dedication and commitment as we look forward
to another year of strong progress during 2021.”
Fourth Quarter 2020 Results
Gross business wins in the fourth quarter were $1.3 billion and
cancellations were $205 million. This resulted in net business wins
of $1,080 million and a book to bill of 1.42.
Reported revenue for Quarter 4 was $760.2 million. This
represents a year on year increase of 4.8% or 3.3% on a constant
currency basis.
Reported income from operations in the quarter was $119.9
million or 15.8% of revenue compared to $115.3 million or 15.9% of
revenue for Quarter 4 2019. This represents a year on year increase
of 3.9%.
Reported net income attributable to the Group for the quarter
was $101.2 million or 13.3% of revenue compared with $99.0 million
or 13.6% of revenue in Quarter 4 2019. This represents year on year
growth of 2.2%.
Adjusted earnings per share attributable to the Group on a
diluted basis was $1.90, compared to $1.83 per share for Quarter 4
2019. This represents a year on year increase of 4.0%.
On a comparative basis, non-GAAP days sales outstanding were 41
days at December 31, 2020, compared with 45 days at the end of
September 2020 and 54 Days at the end of December 2019.
Full Year 2020 Results
Gross business wins were $4.6 billion and cancellations were
$725 million. This resulted in net business wins of $3.8 billion
and a book to bill of 1.38.
Full year reported revenue was $2,797 million. This represents a
year on year decrease of 0.3% or 0.5% on a constant currency
basis.
Full year reported income from operations* was $409.6 million or
14.6% of revenue compared to $433.4 million or 15.4% of revenue for
the equivalent prior year period.
Full year reported net income* attributable to the Group was
$348.2 million or 12.4% of revenue compared with $374.0 million or
13.3% of revenue for the equivalent prior year period.
Adjusted earnings per share* attributable to the Group on a
diluted basis was $6.53, compared to $6.88 per share for the
equivalent prior year period.
During the year the company recorded a charge of $18.1 million
in relation to restructuring costs. Full year US GAAP income from
operations amounted to $391.5 million or 14.0% of revenue. Full
year US GAAP net income attributable to the Group was $332.3
million or $6.15 per diluted share, compared to $6.79 per share for
the equivalent prior year period.
Cash generated from operating activities for the year was $568.0
million. During the year, $37.8 million was spent on acquisitions
(net of cash acquired), $43.9 million on purchasing non-controlling
interests, $51.1 million on capital expenditure and $175.0 million
worth of stock was repurchased at an average price of $141.68. As a
result, at December 31, 2020, the Group had net cash of $493.6
million, compared to net cash of $220.3 million at the end of
December 2019.
*before non-recurring charges.
COVID-19 Update
ICON continues to closely monitor and assess the evolving
pandemic situation. The welfare and safety of ICON’s employees,
customers and patients remains the Company’s highest priority. ICON
is taking guidance from global health authorities, such as World
Health Organisation (WHO) and Centers for Disease Control and
Prevention (CDC), as well as regional health authorities and
governments to ensure that ICON protects the safety and welfare of
employees and abides by government directives in various
jurisdictions.
COVID-19 continues to affect our global business. However, the
impact continues to be lower than experienced at the peak in Q2
2020. Where on-site monitoring is not possible we continue to use
alternative approaches including remote and risk based monitoring
and ‘at home’ services delivered through our Symphony Clinical
Research group.
Since February 2020, ICON has mobilised its vaccine resources to
address the COVID-19 global threat, including its ability to
conduct home-based trials to minimise infection. The company is
currently providing clinical monitoring and safety oversight on
more than 120 COVID-19 trials for both the private and government
sectors.
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.
Adjusted earnings per share attributable to the Group (Non-GAAP)
has been computed by dividing non-GAAP net income attributable to
the Group by the weighted average number of shares outstanding.
GAAP earnings per share attributable to the Group has been computed
by dividing net income attributable to the Group plus a GAAP charge
associated with non-controlling interest in MeDiNova Research
(“MeDiNova”) by the weighted average number of shares outstanding.
ICON purchased a majority shareholding in MeDiNova on May 23, 2019.
ICON exercised its call on the outstanding shares in MeDiNova and
derecognized the non-controlling interest effective from March
2020.
ICON will hold a conference call today, February 24th, 2021 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, the impact of
COVID-19 on our business, as well as other 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.
In addition, as announced, ICON and PRA Health Services (“PRA”)
have entered into a definitive merger agreement. This communication
does not constitute an offer to sell or buy or the solicitation of
any offer to buy or sell any securities, nor shall there be any
sale of securities in a jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities law of any such jurisdiction. No
offering of securities shall be made except by means of a
prospectus meeting regulatory requirements of Section 10 of the
Securities Act of 1933. In connection with the proposed
transaction, ICON expects to file a registration statement on Form
F-4 with the SEC containing a preliminary prospectus of ICON that
also constitutes a preliminary proxy statement of each of ICON and
PRA. ICON and PRA will file other documents regarding the proposed
transaction with the SEC.
Before making any voting or investment decisions, investors and
security holders of ICON and PRA stock are encouraged to carefully
read the entire registration statement and proxy statement
prospectus when filed and made available on each of our websites
and at sec.gov.
ICON plc is a global provider of outsourced drug and device
development and commercialisation services to pharmaceutical,
biotechnology, medical device and government and public health
organisations. 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 16,000 employees in 93 locations in 41
countries as at December 31, 2020. For further information about
ICON, visit: www.iconplc.com and www.iconplc.com/pra
ICON/ICLR-F
ICON plc
Condensed Consolidated
Statements of Operations
(Non-GAAP)
Three and Twelve Months ended
December 31, 2020 and December 31, 2019
(Dollars, in thousands, except
share and per share data)
(Unaudited)
Three
Months Ended
Twelve
Months Ended
December
December
December
December
31,
2020
31,
2019
31,
2020
31,
2019
Revenue
760,229
725,409
2,797,288
2,805,839
Costs and expenses:
Direct costs
(535,347)
(508,191)
(1,979,883)
(1,974,135)
Selling, general and administrative
expense
(87,878)
(86,184)
(341,690)
(336,748)
Depreciation and amortization
(17,145)
(15,708)
(66,126)
(61,550)
Total costs and expenses
(640,370)
(610,083)
(2,387,699)
(2,372,433)
Income from operations
119,859
115,326
409,589
433,406
Net interest expense
(3,173)
(1,848)
(10,295)
(6,417)
Income before provision for income
taxes
116,686
113,478
399,294
426,989
Provision for income taxes
(15,169)
(13,617)
(50,136)
(51,133)
Income before share of earnings from
equity method investments
101,517
99,861
349,158
375,856
Share of equity method investments
(283)
-
(366)
-
Net income
101,234
99,861
348,792
375,856
Net income attributable to non-controlling
interest
-
(854)
(633)
(1,870)
Net income attributable to the
Group
101,234
99,007
348,159
373,986
Adjusted net income per Ordinary Share
attributable to the Group:
Adjusted basic (non-GAAP)
$1.92
$1.85
$6.59
$6.94
Adjusted diluted (non-GAAP)
$1.90
$1.83
$6.53
$6.88
Weighted average number of Ordinary Shares
outstanding:
Basic
52,783,886
53,630,331
52,859,911
53,859,537
Diluted
53,291,849
54,219,975
53,283,585
54,333,461
ICON plc
Condensed Consolidated
Statements of Operations
(US GAAP)
Three and Twelve Months ended
December 31, 2020 and December 31, 2019
(Dollars, in thousands, except
share and per share data)
(Unaudited)
Three
Months Ended
Twelve
Months Ended
December
December
December
December
31,
2020
31,
2019
31,
2020
31,
2019
Revenue
760,229
725,409
2,797,288
2,805,839
Costs and expenses:
Direct costs
(535,347)
(508,191)
(1,979,883)
(1,974,135)
Selling, general and administrative
expense
(87,878)
(86,184)
(341,690)
(336,748)
Depreciation and amortization
(17,145)
(15,708)
(66,126)
(61,550)
Restructuring costs
-
-
(18,089)
-
Total costs and expenses
(640,370)
(610,083)
(2,405,788)
(2,372,433)
Income from operations
119,859
115,326
391,500
433,406
Net interest expense
(3,173)
(1,848)
(10,295)
(6,417)
Income before provision for income
taxes
116,686
113,478
381,205
426,989
Provision for income taxes
(15,169)
(13,617)
(47,875)
(51,133)
Income before share of earnings from
equity method investments
101,517
99,861
333,330
375,856
Share of equity method investments
(283)
-
(366)
-
Net income
101,234
99,861
332,964
375,856
Net income attributable to non-controlling
interest
-
(854)
(633)
(1,870)
Net income attributable to the
Group
101,234
99,007
332,331
373,986
Net income per Ordinary Share attributable
to the Group:
Basic
$1.92
$1.78
$6.20
$6.85
Diluted
$1.90
$1.76
$6.15
$6.79
Weighted average number of Ordinary Shares
outstanding:
Basic
52,783,886
53,630,331
52,859,911
53,859,537
Diluted
53,291,849
54,219,975
53,283,585
54,333,461
ICON plc
Summary Consolidated Balance
Sheet Data
December 31, 2020 and December
31, 2019
(Dollars, in
thousands)
December 31,
December 31,
2020
2019
(Unaudited)
(Audited)
Cash and short-term investments
842,034
569,937
Debt
(348,477)
(349,640)
Net cash/(debt)
493,557
220,297
Net Accounts Receivable
483,072
583,489
Working Capital
979,035
493,728
Total Assets
3,435,606
2,907,512
Shareholder's Equity
1,850,236
1,618,055
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005487/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 All at ICON. http://www.iconplc.com
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