ICON Reports Second Quarter 2013 Revenue Of $334 Million, Up 21% Year On Year, Non-GAAP EPS Of 43c And Raises FY 2013 Guidance.

ICON plc, (NASDAQ: ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the second quarter ended June 30, 2013.

Net revenues grew 21% year on year to $334.2 million from $277.0 million in Q2 2012.

Income from operations, excluding restructuring charges of $4.6 million, was $30.9 million or 9.3% of revenue, compared to $16.6 million or 6.0% for the same quarter last year.

Net income, excluding restructuring charges, was $26.5 million or 43 cents per share on a diluted basis, compared with $12.9 million or 21 cents per share last year.

Revenue in the first half of 2013 increased 23% to $651 million from $529 million in 2012.

Income from operations in the first half of 2013, excluding restructuring charges, was $58.3 million or 9.0% of revenue, compared with $28.4m or 5.4% of revenue in the previous year.

Net income, in the first half of 2013, excluding restructuring charges, was $48.7 million or 79 cents per share on a diluted basis, compared with $21.9 million or 36 cents per diluted share last year.

Guidance for the full year 2013 has been updated with revenue expected to be in the range of $1.3 billion - $1.32 billion and EPS guidance in the range of $1.54 - $1.64.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 33 days at June 30, 2013, compared with 40 days at the end of December 2012.

For the quarter ended June 30, 2013, cash generated from operating activities was $10.8 million after expenditure of $26 million on prior period acquisition earn outs and capital expenditure of $7.8 million. The company’s net cash amounted to $184 million at June 30, 2013, compared to net cash of $190 million at December 31, 2012.

During the quarter the company recorded a charge of $4.6 million in relation to various restructuring costs. US GAAP income from operations after these items amounted to $26 million or 7.9% of revenue. US GAAP net income for the quarter was $22 million or 36 cents per share.

CEO Ciaran Murray commented, “I am happy that Q2 was another strong quarter for ICON. We reported revenue growth of 21% year on year and operating margins of 9.3%. We have continued to book satisfactory levels of new business and our trailing twelve month book to bill now stands at 1.3. Consequently we are raising our revenue guidance to the range of $1.3-$1.32 billion and our EPS guidance to the range of $1.54-$1.64 for the financial year 2013.”

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 today, July 25, 2013 at 9:00 EST [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.

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 reports filed with the US Securities and Exchange Commission 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 78 locations in 37 countries and has approximately 10,170 employees. Further information is available at www.iconplc.com.

Source: ICON plc

Contact: Investor Relations 1-888-381-7923 or

Brendan Brennan Chief Financial Officer + 353 –1-291-2000 or

Simon Holmes EVP Investor Relations and Corporate Development + 353 –1-291-2000

All at ICON.

ICON/ICLR-F

ICON plc

Consolidated Income Statements (Unaudited)

(Before restructuring and other items)

Three and Six Months ended June 30, 2013 and June 30, 2012

(Dollars, in thousands, except share and per share data)

 
 

Three Months Ended
 

Six Months Ended

 

June 30,
  June 30, June 30,   June 30,

 

2013
2012 2013 2012
 
Gross Revenue 469,626 379,620 888,685 722,675
 
Reimbursable expenses 135,407 102,613 237,677 193,335
       
Net Revenue 334,219 277,007 651,008 529,340
 
Costs and expenses
Direct costs 214,231 180,127 416,592 342,411
Selling, general and administrative 77,548 69,410 153,112 136,925
Depreciation and amortization 11,520 10,830 22,976 21,632
       
Total costs and expenses 303,299 260,367 592,680 500,968
 
Income from operations 30,920 16,640 58,328 28,372
 
Net interest expense (100) (231) (285) (266)
       
Income before provision for income taxes 30,820 16,409 58,043 28,106
 
Provision for income taxes 4,315 3,514 9,336 6,240
       
 
Net income 26,505 12,895 48,707 21,866
 
Net income per ordinary share
Basic $0.44 $0.21 $0.80 $0.36
 
Diluted $0.43 $0.21 $0.79 $0.36
 
Weighted average number of ordinary shares
Basic 60,724,296 59,978,509 60,555,945 60,032,306
 
Diluted 61,898,903 60,630,891 61,607,757 60,607,635
 

ICON plc

Consolidated Income Statements (Unaudited)

(US GAAP)

Three and Six Months ended June 30, 2013 and June 30, 2012

(Dollars, in thousands, except share and per share data)

 
 

Three Months Ended
 

Six Months Ended

 

June 30,
  June 30, June 30,   June 30,

 

2013
2012 2013 2012
 
Gross Revenue 469,626 379,620 888,685 722,675
 
Reimbursable expenses 135,407 102,613 237,677 193,335
       
Net Revenue 334,219 277,007 651,008 529,340
 
Costs and expenses
Direct costs 214,231 180,127 416,592 342,411
Selling, general and administrative 77,548 69,410 153,112 136,925
Depreciation and amortization 11,520 10,830 22,976 21,632
Restructuring and other items 4,621 5,636 9,033 5,636
       
Total costs and expenses 307,920 266,003 601,713 506,604
 
Income from operations 26,299 11,004 49,295 22,736
 
Net interest expense (100) (231) (285) (266)
       
Income before provision for income taxes 26,199 10,773 49,010 22,470
 
Provision for income taxes 3,720 2,809 7,486 5,535
       
 
Net income 22,479 7,964 41,524 16,935
 
Net income per ordinary share
Basic $0.37 $0.13 $0.69 $0.28
 
Diluted $0.36 $0.13 $0.67 $0.28
 
Weighted average number of ordinary shares
Basic 60,724,296 59,978,509 60,555,945 60,032,306
 
Diluted 61,898,903 60,630,891 61,607,757 60,607,635
 

ICON plc

Summary Balance Sheet Data

June 30, 2013 and December 31, 2012

(Dollars, in thousands)
  June 30,   December 31,
2013 2012
(Unaudited) (Audited)
 
 
Net cash 183,903 190,230
 
Accounts receivable 305,805 285,419
Unbilled revenue 140,145 112,483
Payments on account (272,019) (219,467)
Total 173,931 178,435
 
Working Capital 253,507 250,326
 
Total Assets 1,293,122 1,202,108
 
Shareholder's Equity 801,708 754,575

Copyright Business Wire 2010

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