Highlights
- Record net business wins in the quarter of $1,106 million, an
increase of 21.6% year on year; a net book to bill of 1.27.
- Record closing backlog of $10.2 billion, an increase of 12.7%
year on year.
- Quarter 2 reported revenue of $871.2 million representing a
year on year increase of 40.5% and 1.5% increase on Quarter 1
2021.
- Adjusted income from operations* amounted to $132.9 million or
15.3% of revenue, a year on year increase of 77.1%. Adjusted net
income attributable to the Group* was $113.2 million or $2.12 per
diluted share, compared to $1.20 per share for the equivalent prior
year period, an increase of 76.8%.
- US GAAP income from operations amounted to $112.9 million or
13.0% of revenue, a year on year increase of 98.2%. US GAAP net
income attributable to the Group was $73.9 million or $1.38 per
diluted share, compared to $0.90 per share for the equivalent prior
year period, an increase of 53.3%.
- Strong cash generation resulting in a record gross cash
position of $1,057 million. Days sales outstanding reduced to 35
days from 53 days at June 30, 2020.
- Net business wins for PRA’s Clinical Research segment for
Quarter 2 including reimbursement revenue was approximately $1,191
million; a net book to bill of 1.21. Quarter 2 revenue was
approximately $1,047 million, a year on year increase of
43.5%.
- Following completion of our acquisition of PRA Health Sciences
on July 1, 2021, new revenue and EPS guidance is issued including
PRA Health Sciences for quarters 3 and 4. Full year 2021 revenue
guidance issued in the range of $5,300 - $5,500 million,
representing a year over year increase of 89.5% - 96.6%. Full year
2021 adjusted earnings per share guidance issued in the range of
$9.10 - $9.50, representing a year over year increase of 39.4% -
45.5%. Adjusted earnings per share to exclude amortization, stock
compensation and transaction-related / integration-related
costs.
*before transaction-related costs and integration-related
costs.
ICON plc (NASDAQ: ICLR), a world-leading
healthcare intelligence and clinical research organisation, today
reported its financial results for the second quarter ended June
30, 2021.
CEO Dr. Steve Cutler commented, “ICON’s quarter 2 results show
continuing progress and represent a strong platform for sustained
future growth. During the quarter, ICON’s net business wins were a
record $1,106 million, representing a robust book to bill of 1.27.
We grew our backlog 13% year over year to $10.2 billion, revenue
grew 40.5% to $871 million and adjusted earnings per share
increased 76.8% year over year to $2.12.
As announced on 1st July, ICON’s acquisition of PRA brings
together two complementary organisations to create a world leading
healthcare intelligence and clinical CRO. We expect to create
significant long-term shareholder value by combining revenue growth
from enhanced service offerings, innovative solutions and increased
scale with our best in class global support services model. As a
result of this acquisition we are updating our 2021 outlook with
revenue guidance in the range of $5,300 - $5,500 million and
adjusted earnings per share guidance in the range of $9.10 -
$9.50.”
Second Quarter 2021 Results
Gross business wins in the second quarter were $1,316 million
and cancellations were $210 million. This resulted in net business
wins of $1,106 million and a book to bill of 1.27.
Reported revenue for Quarter 2 was $871.2 million. This
represents a year on year increase of 40.5% or 37.5% on a constant
currency basis.
US GAAP income from operations amounted to $112.9 million or
13.0% of revenue, a year on year increase of 98.2%. Adjusted income
from operations* in the quarter was $132.9 million or 15.3% of
revenue compared to $75.0 million or 12.1% of revenue for Quarter 2
2020. This represents a year on year increase of 77.1%.
US GAAP net income attributable to the Group was $73.9 million
or 8.5% of revenue. Adjusted net income* attributable to the Group
for the quarter was $113.2 million or 13.0% of revenue compared
with $63.6 million or 10.3% of revenue in Quarter 2 2020. This
represents year on year growth of 78.0%.
US GAAP earnings per share attributable to the Group on a
diluted basis was $1.38 compared to $0.90 per share for the
equivalent prior year period, an increase of 53.3%. Adjusted
earnings per share* attributable to the Group on a diluted basis
was $2.12, compared to $1.20 per share for Quarter 2 2020. This
represents a year on year increase of 76.8%. Quarter 2 earnings per
share excluding amortization, stock compensation and
transaction-related / integration-related costs was $2.27.
During the quarter the company recorded $42.1 million of
transaction-related/ integration-related costs. On a comparative
basis, non-GAAP days sales outstanding were 35 days at June 30,
2021, compared with 39 days at the end of March 2021 and 53 days at
the end of June 2020.
Cash generated from operating activities for the quarter was
$128.4 million. During the quarter, $12.9 million was spent on
capital expenditure. As a result, at June 30, 2021 the Group had
net cash of $707.2 million, compared to net cash of $595.6 million
at March 31, 2021 and $244.0 million at the end of June 2020.
Year to date 2021 Results
Gross business wins year to date were $2,611 million and
cancellations were $404 million. This resulted in net business wins
of $2,206 billion and a book to bill of 1.28.
Year to date reported revenue was $1,729.4 million. This
represents a year on year increase of 29.5% or 27.0% on a constant
currency basis.
US GAAP income from operations year to date amounted to $228.9
million or 13.2% of revenue. Adjusted income from operations* year
to date was $261.4 million or 15.1% of revenue compared to $181.3
million or 13.6% of revenue for Quarter 2 2020. This represents a
year on year increase of 44.2%.
US GAAP net income attributable to the Group year to date was
$171.0 million or 9.9% of revenue. Adjusted net income*
attributable to the Group year to date was $222.8 million or 12.9%
of revenue compared with $155.3 million or 11.6% of revenue in
Quarter 2 2020. This represents year on year growth of 43.5%.
US GAAP earnings per share attributable to the Group on a
diluted basis year to date was $3.21 compared to $2.51 per share
for the equivalent prior year period. Adjusted earnings per share*
attributable to the Group on a diluted basis year to date was
$4.18, compared to $2.89 per share for Quarter 2 2020. This
represents a year on year increase of 44.6%. Year to date earnings
per share excluding amortization, stock compensation and
transaction-related / integration-related costs was $4.46.
* before transaction-related costs and integration-related
costs.
Second Quarter 2021 Results for PRA Health Sciences, Inc. and
Subsidiaries
Net new business for PRA’s Clinical Research segment for the
three months ended June 30, 2021 including reimbursement revenue
was approximately $1,191 million, representing a net book-to-bill
of 1.21 for the period.
For the three months ended June 30, 2021, revenue was
approximately $1,047 million, which represents an increase of 43.5%
compared to the three months ended June 30, 2020.
GAAP net income was approximately $71 million for the three
months ended June 30, 2021, or $1.06 per share on a diluted basis,
compared to GAAP net income of $13.9 million for the three months
ended June 30, 2020, or $0.22 per share on a diluted basis.
Adjusted net income was approximately $96 million for the three
months ended June 30, 2021, representing an increase of 73.6%
compared to the three months ended June 30, 2020. Adjusted earnings
per share was approximately $1.43 for the three months ended June
30, 2021, representing an increase of 66.6% compared to the three
months ended June 30, 2020.
Days sales outstanding (DSO) was approximately 14 days at June
30, 2021.
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. Non-GAAP operating and net income and non-GAAP diluted
earnings per share exclude transaction-related costs. 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.
For guidance purposes adjusted earnings per share excludes
amortization, stock compensation and transaction-related /
integration-related costs.
ICON will hold a conference call tomorrow, July 22nd, 2021 at
09:00 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, 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,
F-4, S-8 and F-3, which are available on the SEC's website at
http://www.sec.gov.
ICON plc is a world-leading healthcare intelligence and clinical
research organisation. From molecule to medicine, we advance
clinical research providing outsourced services to pharmaceutical,
biotechnology, medical device and government and public health
organisations. We develop new innovations, drive emerging therapies
forward and improve patient lives. With headquarters in Dublin,
Ireland, ICON employed approximately 16,480 employees in 89
locations in 45 countries as at June 30, 2021. For further
information about ICON, visit: www.iconplc.com and
www.iconplc.com/pra.
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
All at ICON.
ICON plc Condensed Consolidated Statements
of Operations (US GAAP) Three and Six Months ended June 30, 2021
and June 30, 2020 (Dollars, in thousands, except share and per
share data) (Unaudited)
Three Months Ended
Six Months Ended
June
June
June
June
30, 2021
30, 2020
30, 2021
30, 2020
Revenue
871,155
620,228
1,729,353
1,335,330
Costs and expenses:
Direct costs
(631,123)
(445,833)
(1,257,367)
(951,126)
Selling, general and administrative
expense
(109,884)
(83,499)
(208,419)
(170,695)
Depreciation and amortization
(17,276)
(15,858)
(34,681)
(32,180)
Restructuring costs
-
(18,089)
-
(18,089)
Total costs and expenses
(758,283)
(563,279)
(1,500,467)
(1,172,090)
Income from operations
112,872
56,949
228,886
163,240
Net interest expense
(24,365)
(2,779)
(26,835)
(4,151)
Income before provision for income
taxes
88,507
54,170
202,051
159,089
Provision for income taxes
(14,133)
(6,410)
(30,281)
(19,000)
Income before share of earnings from
equity method investments
74,374
47,760
171,770
140,089
Share of equity method investments
(509)
-
(783)
-
Net income
73,865
47,760
170,987
140,089
Net income attributable to non-controlling
interest
-
-
-
(633)
Net income attributable to the
Group
73,865
47,760
170,987
139,456
Net income per Ordinary Share attributable
to the Group:
Basic
$1.40
$0.91
$3.23
$2.55
Diluted
$1.38
$0.90
$3.21
$2.51
Weighted average number of Ordinary Shares
outstanding:
Basic
52,909,368
52,570,104
52,860,414
52,959,229
Diluted
53,381,501
53,028,567
53,294,435
53,691,138
(Non-GAAP) Three and Six Months ended June
30, 2021 and June 30, 2020 (Dollars, in thousands, except share and
per share data) (Unaudited)
Three Months Ended
Six Months Ended
June
June
June
June
30, 2021
30, 2020
30, 2021
30, 2020
Revenue
871,155
620,228
1,729,353
1,335,330
Costs and expenses:
Direct costs
(631,123)
(445,833)
(1,257,367)
(951,126)
Selling, general and administrative
expense
(89,867)
(83,499)
(175,901)
(170,695)
Depreciation and amortization
(17,276)
(15,858)
(34,681)
(32,180)
Total costs and expenses
(738,266)
(545,190)
(1,467,949)
(1,154,001)
Income from operations
132,889
75,038
261,404
181,329
Net interest expense
(2,240)
(2,779)
(4,357)
(4,151)
Income before provision for income
taxes
130,649
72,259
257,047
177,178
Provision for income taxes
(16,984)
(8,671)
(33,416)
(21,261)
Income before share of earnings from
equity method investments
113,665
63,588
223,631
155,917
Share of equity method investments
(509)
-
(783)
-
Net income
113,156
63,588
222,848
155,917
Net income attributable to non-controlling
interest
-
-
-
(633)
Net income attributable to the
Group
113,156
63,588
222,848
155,284
Adjusted net income per Ordinary Share
attributable to the Group:
Adjusted basic (non-GAAP)
$2.14
$1.21
$4.22
$2.93
Adjusted diluted (non-GAAP)
$2.12
$1.20
$4.18
$2.89
Weighted average number of Ordinary Shares
outstanding:
Basic
52,909,368
52,570,104
52,860,414
52,959,229
Diluted
53,381,501
53,028,567
53,294,435
53,691,138
ICON plc Summary Consolidated Balance Sheet
Data June 30, 2021 and March 31, 2021 (Dollars, in
thousands)
June 30,
March 31,
2021
2021
(Unaudited)
(Unaudited)
Cash and short-term investments
1,057,225
944,184
Debt
(350,000)
(348,592)
Net cash/(debt)
707,225
595,592
Net Accounts Receivable
417,403
465,585
Working Capital
1,180,347
1,088,833
Total Assets
3,584,464
3,466,576
Shareholder's Equity
2,027,943
1,934,171
PRA Health Sciences, Inc. and Subsidiaries
Reconciliation of non-GAAP measures Three and Six Months ended June
30, 2021 and June 30, 2020 (Dollars, in thousands, except share and
per share data) (Unaudited)
Three Months Ended
Six Months Ended
June
30,
2021
June
30,
2020
June
30,
2021
June
30,
2020
Net income attributable to PRA Health
Sciences, Inc.
71,068
13,874
128,008
54,534
(Benefit from) provision for income
taxes
(12,995)
7,112
6,702
23,983
Amortization of intangible assets
17,775
19,030
35,714
38,157
Amortization of deferred financing
costs
422
421
842
842
Amortization of terminated interest rate
swaps
-
1,562
-
3,127
Stock-based compensation expense (a)
18,732
15,845
37,504
31,270
Loss (gains) on disposal of fixed assets,
net (b)
14
194
138
175
Foreign currency losses (gains), net
(c)
6,116
10,768
(6,272)
2,926
Other non-operating expense, net (d)
(87)
(23)
(42)
(18)
Transaction-related costs (e)
23,415
-
36,852
609
Acquisition-related costs (f)
-
406
-
1,245
Non-cash rent adjustment (g)
(652)
1,087
(1,573)
579
Other charges (h)
764
1,469
3,028
1,750
Adjusted pre-tax income
124,572
71,745
240,901
159,179
Adjusted tax expense (i)
28,651
16,501
55,407
36,611
Adjusted net income
95,921
55,244
185,494
122,568
Diluted weighted average common shares
outstanding
67,166
64,457
66,670
64,398
Adjusted net income per diluted share
1.43
0.86
2.78
1.90
a
Stock-based compensation expense
represents the amount of recurring non-cash expense related to the
Company’s equity compensation programs.
b
Loss (gains) on disposal of fixed assets
represents the costs incurred in connection with the sale or
disposition of fixed assets, primarily IT equipment and furniture
and fixtures. We exclude these losses from adjusted EBITDA and
adjusted net income because they result from investing decisions
rather than from decisions made related to our ongoing
operations.
c
Foreign currency losses (gains), net
primarily relates to gains or losses that arise in connection with
the revaluation of short-term inter-company balances between our
domestic and international subsidiaries. In addition, this amount
includes gains or losses from foreign currency transactions, such
as those resulting from the settlement of third-party accounts
receivable and payables denominated in a currency other than the
local currency of the entity making the payment. We exclude these
gains and losses from adjusted EBITDA and adjusted net income
because they result from financing decisions rather than from
decisions made related to our ongoing operations and because
fluctuations from period- to- period do not necessarily correspond
to changes in our operating results.
d
Other non-operating expense, net
represents income and expense that are non-operating and whose
fluctuations from period- to- period do not necessarily correspond
to changes in our operating results.
e
Transaction-related costs include fees
associated with costs associated with acquisition related earn-out
liabilities, our secondary offerings, stock-based compensation
expense related to the transfer restrictions on vested options, the
amendment to our accounts receivable financing agreement, and
expenses associated with our acquisitions.
f
Acquisition-related costs primarily
consist of professional fees, rebranding costs, the elimination of
redundant facilities and any other costs incurred directly related
to the integration of these acquisitions.
g
We have escalating leases that require the
amortization of rent expense on a straight-line basis over the life
of the lease. The non-cash rent adjustment represents the
difference between rent expense recorded in the consolidated
statement of operations and the amount of cash actually paid.
h
Represents charges incurred that are not
considered part of our core operating results.
i
Represents the tax effect of adjusted
pre-tax income at our estimated effective tax rate.
ICON/ICLR-F
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210721005902/en/
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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