ICON Reports Third Quarter 2013 Revenue Of $340 Million, Up 19% Year On Year, EPS Of 45C 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 third quarter ended September 30, 2013.

Net revenues grew 19% year on year to $339.8 million from $285.5 million in Q3 2012.

Income from operations was $33.2 million or 9.8% of revenue, compared to $20.9 million or 7.3% for the same quarter last year.

Net income was $27.8 million or 45 cents per share on a diluted basis, compared with $17.7 million or 29 cents per share last year.

Year to date net revenues for 2013 increased 22% to $991 million from $815 million in 2012.

Year to date income from operations, excluding restructuring charges, was $91.5 million or 9.2% of revenue, compared with $49.3m or 6.0% of revenue in the previous year.

Year to date net income, excluding restructuring charges, was $76.5 million or $1.23 per share on a diluted basis, compared with $39.6 million or 66 cents per diluted share last year.

Year to date income from operations on a GAAP basis was $82.5 million, and year to date net income on a GAAP basis was $69.3 million or $1.12 per share.

Guidance for the full year 2013 has been updated with revenue expected to be in the range of $1.325 billion - $1.33 billion and EPS guidance in the range of $1.67 - $1.70.

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

For the quarter ended September 30, 2013, cash generated from operating activities was $43.6 million, after expenditure of $15.1 million on prior period acquisition earn outs and capital expenditure of $6.2 million. The company’s net cash amounted to $218.6 million at September 30, 2013, compared to net cash of $190 million at December 31, 2012.

CEO Ciaran Murray commented, “For the quarter we are reporting revenue growth of 19% year on year and operating margins of 9.8%. We booked $415 million of net new business wins or a book to bill of 1.2, leaving us with a closing backlog of $2.97 billion. Consequently we are raising our revenue guidance to the range of $1.325 -$1.330 billion and our earnings per share guidance to the range of $1.67-$1.70 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 third quarter conference call today, October 24, 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 77 locations in 38 countries and has approximately 10,300 employees. Further information is available at www.iconplc.com.

Source: ICON plc

All at ICON.

ICON/ICLR-F

ICON plc

Consolidated Income Statements (Unaudited)

(Before restructuring and other items)

Three and Nine Months ended September 30, 2013 and September 30, 2012

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

 
 

Three Months Ended
 

Nine Months Ended
 
September 30,   September 30, September 30,   September 30,
2013 2012 2013 2012
 
Gross Revenue 445,598 374,965 1,334,283 1,097,640
 
Reimbursable expenses 105,788 89,463 343,465 282,798
       
Net Revenue 339,810 285,502 990,818 814,842
 
Costs and expenses
Direct costs 213,666 183,332 630,258 525,743
Selling, general and administrative 81,408 70,690 234,520 207,615
Depreciation and amortization 11,575 10,601 34,551 32,233
       
Total costs and expenses 306,649 264,623 899,329 765,591
 
Income from operations 33,161 20,879 91,489 49,251
 
Net interest expense (56) (252) (341) (518)
       
Income before provision for income taxes 33,105 20,627 91,148 48,733
 
Provision for income taxes 5,297 2,889 14,633 9,129
       
 
Net income 27,808 17,738 76,515 39,604
 
Net income per ordinary share
Basic $0.46 $0.30 $1.26 $0.66
 
Diluted $0.45 $0.29 $1.23 $0.66
 
Weighted average number of ordinary shares
Basic 61,069,260 59,754,010 60,732,605 59,939,570
 
Diluted 62,473,645 60,366,137 61,977,026 60,391,199

ICON plc

Consolidated Income Statements (Unaudited)

(US GAAP)

Three and Nine Months ended September 30, 2013 and September 30, 2012

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

 
 

Three Months Ended
 

Nine Months Ended
 
September 30,   September 30, September 30,   September 30,
2013 2012 2013 2012
 
Gross Revenue 445,598 374,965 1,334,283 1,097,640
 
Reimbursable expenses 105,788 89,463 343,465 282,798
       
Net Revenue 339,810 285,502 990,818 814,842
 
Costs and expenses
Direct costs 213,666 183,332 630,258 525,743
Selling, general and administrative 81,408 70,690 234,520 207,615
Depreciation and amortization 11,575 10,601 34,551 32,233
Restructuring and other items - - 9,033 5,636
       
Total costs and expenses 306,649 264,623 908,362 771,227
 
Income from operations 33,161 20,879 82,456 43,615
 
Net interest expense (56) (252) (341) (518)
       
Income before provision for income taxes 33,105 20,627 82,115 43,097
 
Provision for income taxes 5,297 2,889 12,783 8,424
       
 
Net income 27,808 17,738 69,332 34,673
 
Net income per ordinary share
Basic $0.46 $0.30 $1.14 $0.58
 
Diluted $0.45 $0.29 $1.12 $0.57
 
Weighted average number of ordinary shares
Basic 61,069,260 59,754,010 60,732,605 59,939,570
 
Diluted 62,473,645 60,366,137 61,977,026 60,391,199

 

ICON plc

 

Summary Balance Sheet Data

 

September 30, 2013 and December 31, 2012

 

(Dollars, in thousands)
   
September 30, December 31,
2013 2012
(Unaudited) (Audited)
 
 
Net cash 218,598 190,230
 
Accounts receivable 360,129 285,419
Unbilled revenue 119,766 112,483
Payments on account (282,549) (219,467)
Total 197,346 178,435
 
Working Capital 299,709 250,326
 
Total Assets 1,362,068 1,202,108
 
Shareholder's Equity 854,519 754,575

Copyright Business Wire 2010

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