ICON Reports Fourth Quarter 2013 Revenue Of $345 Million, Up 15% Year On Year And EPS Of 53c, Up 56% Year On Year. Full Year 2013 Revenue Was $1.34 Billion, Up 20% Year On Year, EPS Was $1.77 Up 77% Year On Year. Guidance Issued For 2014.

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 full year and fourth quarter ended December 31, 2013.

For the fourth quarter net revenue grew 15% year on year to $345 million. Operating income was $38.7 million compared to $24.4 million in the same quarter last year. Operating margin was 11.2% of revenue, compared to 8.1% of revenue for the same quarter last year.

Net income was $33.5 million compared with $20.7 million last year representing growth of 62%, or $0.53 per share compared to $0.34 in the same quarter last year.

For the full year revenue grew 20% to $1.34 billion. Operating income before restructuring and other items was $130.2 million compared to $73.7 million last year an increase of 77%. Operating margin for the full year 2013 was 9.7% of revenue compared with 6.6% of revenue in 2012.

On a US GAAP basis, income from operations was $121.2 million or 9.1% compared with $68.0 million or 6.1% in the prior year.

For the full year net income before restructuring and other items was $110.0 million, compared to $60.4 million last year and net margin was 8.2% of revenue, compared with 5.4% in 2012.

EPS before restructuring and other items for 2013 was $1.77 per share compared with $1.00 in 2012.

On a US GAAP basis net income for the full year was $102.8 million, compared to $55.4 million last year. Net margin for the full year 2013 was 7.7% of revenue, up from 5.0% in 2012. EPS on a US GAAP basis for 2013 was $1.65 per share compared with $0.92 in 2012.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account were 32 days at December 31, 2013 compared with 40 days at December 31, 2012.

For the quarter ended December 31, 2013, cash provided by operating activities was $97.4 million and capital expenditure was $6.1 million. For the full year 2013 cash flow from operating activities was $221.2 million and capital expenditure was $29.5 million. In addition $92.5 million was invested on acquisitions. As a result the company’s net cash amounted to $321 million at December 31, 2013 compared to $190 million of net cash at December 31, 2012.

CEO Ciaran Murray commented, “ICON made significant progress in 2013. Revenue grew 20% to $1.34 billion and earnings per share increased by 77% to $1.77. During the quarter we booked $446 million of net new business, a book to bill of 1.29x. As a result we enter 2014 with a backlog in excess of $3 billion and consequently we are guiding revenue in the range of $1,415 – 1,465 million an increase of 6-10% and for earnings to increase by 16-24% in the range $2.05 - $2.20.”

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 fourth quarter conference call today, February 20, 2014 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.

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, as well as 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.

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

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

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

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 Twelve Months ended December 31, 2013 and December 31, 2012
 
(Dollars, in thousands, except share and per share data)
 

 

Three Months Ended

Twelve Months Ended
    December 31,   December 31, December 31,   December 31,
2013 2012 2013 2012
 
Gross Revenue 450,062 406,353 1,784,345 1,503,993
 
Reimbursable expenses 104,821 106,190 448,287 388,987
             
Net Revenue 345,241 300,163 1,336,058 1,115,006
 
Costs and expenses
Direct costs 215,155 192,007 845,413 717,750
Selling, general and administrative 79,412 73,165 313,931 280,780
Depreciation and amortization 11,963 10,590 46,514 42,823
             
Total costs and expenses 306,530 275,762 1,205,858 1,041,353
 
Income from operations 38,711 24,401 130,200 73,653
 
Net interest income/(expense) 39 (278) (302) (796)
             
Income before provision for income taxes 38,750 24,123 129,898 72,857
 
Provision for income taxes (5,270) (3,377) (19,902) (12,506)
             
 
Net income 33,480   20,746   109,996   60,351
 
Net income per ordinary share
Basic $0.54   $0.35   $1.81   $1.00
 
Diluted $0.53   $0.34   $1.77   $1.00
 
Weighted average number of ordinary shares
Basic 61,431,281 60,053,987 60,907,274 59,968,174
 
Diluted 62,828,079 60,813,483 62,253,251 60,450,706
 

   
ICON plc
 
Consolidated Income Statements (Audited)
(US GAAP)
 
Three and Twelve Months ended December 31, 2013 and December 31, 2012
 
(Dollars, in thousands, except share and per share data)
 

 

Three Months Ended

Twelve Months Ended
    December 31,   December 31, December 31,   December 31,
2013 2012 2013 2012
 
Gross Revenue 450,062 406,353 1,784,345 1,503,993
 
Reimbursable expenses 104,821 106,190 448,287 388,987
             
Net Revenue 345,241 300,163 1,336,058 1,115,006
 
Costs and expenses
Direct costs 215,155 192,007 845,413 717,750
Selling, general and administrative 79,412 73,165 313,931 280,780
Depreciation and amortization 11,963 10,590 46,514 42,823
Restructuring and other items - - 9,033 5,636
             
Total costs and expenses 306,530 275,762 1,214,891 1,046,989
 
Income from operations 38,711 24,401 121,167 68,017
 
Net interest income/(expense) 39 (278) (302) (796)
             
Income before provision for income taxes 38,750 24,123 120,865 67,221
 
Provision for income taxes (5,270) (3,377) (18,053) (11,801)
             
 
Net income 33,480   20,746   102,812   55,420
 
Net income per ordinary share
Basic $0.54   $0.35   $1.69   $0.92
 
Diluted $0.53   $0.34   $1.65   $0.92
 
Weighted average number of ordinary shares
Basic 61,431,281 60,053,987 60,907,274 59,968,174
 
Diluted 62,828,079 60,813,483 62,253,251 60,450,706
 

       
ICON plc
 
Summary Balance Sheet Data
 
December 31, 2013 and December 31, 2012
 
(Dollars, in thousands)
 
December 31, December 31,
2013 2012
(Audited) (Audited)
 
 
Net cash 320,836 190,230
 
Accounts receivable 342,581 285,419
Unbilled revenue 113,239 112,483
Payments on account (297,347) (219,467)
Total 158,473 178,435
 
Working Capital 352,259 250,326
 
Total Assets 1,442,460 1,202,108
 
Shareholder's Equity 910,579 754,575
 

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