ICON (NASDAQ: ICLR) (ISIN:IE0005711209), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the first quarter ended March 31, 2011.

Net revenue for the quarter was $229 million, an increase of 4.6% on the prior year, a constant currency increase year on year of 5.5%.

Before restructuring charges, income from operations was $16 million or 7% of revenue, compared to $26.8 million or 12.2% for the same quarter last year. Excluding restructuring charges, net income was $12.8 million or 21 cents per share on a diluted basis, compared with $22.2 million or 37 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 49 days at March 31, 2011, compared to 37 days at December 31, 2010.

For the quarter ended March 31, 2011, cash used in operating activities was $5.3 million and capital expenditure was $6 million. In addition ICON paid an initial cash consideration of $27.7m for the acquisition of Oxford Outcomes. As a result, the company’s net cash amounted to $232 million at March 31, 2011, compared to net cash of $256 million at December 31, 2010.

“2011 has started in line with expectations.” commented CEO Peter Gray. “With strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we are on track for a return to growth in the second half.”

During the quarter the company undertook a number of cost reduction steps which led to restructuring costs of $5 million. US GAAP income from operations after these items amounted to $11 million or 4.8% of revenue. US GAAP net income for the quarter is $8.3 million or 14 cents per share.

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.

The company will hold its first quarter conference call today, April 21, 2011 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at http://www.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.

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.

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 77 locations in 39 countries and has approximately 7,700 employees. Further information is available at www.iconplc.com.

Source: ICON plc

ICON/ICLR-F
   
 
ICON plc
 
Consolidated Income Statements (Unaudited) (Before Restructuring Charges)
 
Three Months ended March 31, 2011 and March 31, 2010
(Dollars, in thousands, except share and per share data)
 
 
Three Months Ended
March 31, March 31,
2011 2010
 
Gross Revenue 305,547 309,551
 
Reimbursable expenses 76,250 90,439
   
Net Revenue 229,297 219,112
 
Costs and expenses
Direct costs 144,470 131,318
Selling, general and administrative 59,883 52,294
Depreciation and amortization 8,973 8,722
   
Total costs and expenses 213,326 192,334
 
Income from operations 15,971 26,778
 
Net interest income/(expense) 66 (192)
   
Income before provision for income taxes 16,037 26,586
 
Provision for income taxes 3,231 4,387
Net income 12,806 22,199
 
Net income per ordinary share
Basic $0.21 $0.38
 
Diluted $0.21 $0.37
 
Weighted average number of ordinary shares
Basic 60,283,078 59,122,650
 
Diluted 60,982,948 60,313,774

   
 
ICON plc
 
Consolidated Income Statements (Unaudited) (US GAAP)
 
Three Months ended March 31, 2011 and March 31, 2010
(Dollars, in thousands, except share and per share data)
 
 
Three Months Ended
March 31, March 31,
2011 2010
 
Gross Revenue 305,547 309,551
 
Reimbursable expenses 76,250 90,439
   
Net Revenue 229,297 219,112
 
Costs and expenses
Direct costs 144,470 131,318
Selling, general and administrative 59,883 52,294
Depreciation and amortization 8,973 8,722
Restructuring charges 5,002 -
Total costs and expenses 218,328 192,334
 
Income from operations 10,969 26,778
 
Net interest income/(expense) 66 (192)
   
Income before provision for income taxes 11,035 26,586
 
Provision for income taxes 2,687 4,387
Net income 8,348 22,199
 
Net income per ordinary share
Basic $0.14 $0.38
 
Diluted $0.14 $0.37
 
Weighted average number of ordinary shares
Basic 60,283,078 59,122,650
 
Diluted 60,982,948 60,313,774

         

 

 

 

ICON plc
 
Summary Balance Sheet Data
 
 
March 31, 2011 and December 31, 2010
(Dollars, in thousands)
 
March 31, December 31,
2011 2010
(Unaudited) (Audited)
Cash and short-term investments 231,813 255,706
 
Accounts receivable 188,097 164,907
Unbilled revenue 121,998 101,431
Payments on account (143,024) (134,240)
Total 167,071 132,098
 
Working Capital 304,053 329,350
 
Total Assets 1,013,685 949,538
 
Shareholder's Equity 693,119 669,999
 
 
Source: ICON plc
 
Contact: Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 1 291 2000
Brendan Brennan Snr VP Corp Fin + 353 1 291 2000
Sam Farthing VP IR +353 1 291 2000

All at ICON.
 

http://www.iconplc.com

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