Market Overview

ICON Reports Q3 Revenue of $286 Million, EPS of 29c and Net New Business of $450 Million. (NASDAQ: ICLR) (ISIN:IE0005711209)

Share:
DUBLIN--(BUSINESS WIRE)--

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 third quarter ended September 30, 2012.

Net revenues for the quarter grew 19% to $286 million compared to $241 million in the same quarter last year.

Income from operations, before restructuring and other non-recurring charges, for the quarter was $20.9 million or 7.3% of net revenue, compared with $1.1 million or 0.5% of net revenue for the same period last year. Net income before restructuring and other non-recurring charges was $17.7 million or 29 cents per share compared to $1.5 million or 2 cents per share in Q3 2011.

US GAAP income from operations for the quarter was $20.9 million or 7.3% of net revenue, compared with US GAAP losses from operations of $3.7 million or 1.5% of net revenue in the same period last year. US GAAP net income for the quarter was $17.7 million or 29 cents per share compared to a loss of $2.7 million or 4 cents per share last year.

Year-to-date net revenues were $815 million representing a 16% increase over the same period last year.

Year to date income from operations, before restructuring and other non-recurring charges recorded in the second quarter, was $49.3 million or 6.0% of net revenue compared to $32.6 million or 4.6% of net revenue in the same period last year. Net income year to date, excluding restructuring and other non-recurring charges recorded in the second quarter, was $39.6 million or 66 cents per share. In the same period last year, net income year to date, before restructuring and other non-recurring charges was $27.4 million or 45 cents per share.

Year to date US GAAP income from operations was $43.6 million or 5.3% of net revenue, compared to $22.8 million or 3.2% of net revenue for the same period last year. US GAAP net income year to date was $34.7 million or 57 cents per share compared to $18.8 million or 31 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 38 days at September 30, 2012, compared to 52 days at September 30, 2011.

For the quarter ended September 30, 2012, cash generated from operating activities was $29.3 million and capital expenditure was $6.6 million. Cash paid in respect of acquisitions was $17.4 million for the quarter. The company's net cash amounted to $180 million at September 30, 2012 compared with net cash of $168 million at June 30, 2012.

In our Annual Report for 2011 it was noted that ICON has been considering the structure of its share listings due to its international operations and profile. ICON now plans, subject to finalising the necessary details and arrangements, to proceed with a full listing of shares on NASDAQ and terminate the current NASDAQ ADR programme. It is the company's view that this change will provide benefits to shareholders, including removing some barriers to ownerships and also the potential for further index inclusion for the stock. As a result of this change, ICON believes the Irish Stock Exchange listing will no longer be necessary and accordingly it is the company's plan to withdraw from the Irish Stock Exchange. Once the necessary details and arrangements are finalised, we will announce a date for a shareholder meeting to vote on the resolutions required to implement these listing changes.

CEO Ciaran Murray commented, “I am happy with our progress so far in 2012. We have recorded $1.5bn of gross bookings in the first three quarters of the year, produced 16% growth in revenue year to date and our margin recovery continues to go to plan. We continue to strive to be the CRO partner of choice for the biopharma industry and to differentiate our company through our people, industry leading innovation and expanding value added service offerings.”

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, November 1, 2012 at 9:00 EST [13:00 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 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 82 locations in 40 countries and has approximately 9,280 employees. Further information is available at www.iconplc.com.

Source: ICON plc

ICON/ICLR-F

 
ICON plc
         
Consolidated Income Statements (Unaudited)

(Before restructuring and other non-recurring charges)

 
Three and Nine Months ended September 30, 2012 and September 30, 2011
(Dollars, in thousands, except share and per share data)
 
Three Months Ended Nine Months Ended

September
30,

September
30,

September
30,

September
30,

2012 2011 2012 2011
 
Gross Revenue 374,965 335,332 1,097,640 958,575
 
Reimbursable expenses 89,463 94,560 282,798 255,461
       
Net Revenue 285,502 240,772 814,842 703,114
 
Costs and expenses
Direct costs 183,332 158,343 525,743 453,679
Selling, general and administrative 70,690 71,629 207,615 188,856
Depreciation and amortization 10,601 9,667 32,233 27,969
       
Total costs and expenses 264,623 239,639 765,591 670,504
 
Income from operations 20,879 1,133 49,251 32,610
 
Net interest (expense)/income (252) 131 (518) 303
       
Income before provision for income taxes 20,627 1,264 48,733 32,913
 
Provision for income taxes 2,889 (202) 9,129 5,559
       
 
Net income 17,738 1,466 39,604 27,354
 
Net income per ordinary share
Basic $0.30 $0.02 $0.66 $0.45
 
Diluted $0.29 $0.02 $0.66 $0.45
 
Weighted average number of ordinary shares
Basic 59,754,010 60,471,985 59,939,570 60,381,814
 
Diluted 60,366,137 61,063,020 60,391,199 61,096,464
 

  ICON plc
         
Consolidated Income Statements (Unaudited) (US GAAP)
 
Three and Nine Months ended September 30, 2012 and September 30, 2011
(Dollars, in thousands, except share and per share data)
 
Three Months Ended Six Months Ended

September
30,

September
30,

September 30,

September
30,

2012 2011 2012 2011
 
Gross Revenue 374,965 335,332 1,097,640 958,575
 
Reimbursable expenses 89,463 94,560 282,798 255,461
       
Net Revenue 285,502 240,772 814,842 703,114
 
Costs and expenses
Direct costs 183,332 158,343 525,743 453,679
Selling, general and administrative 70,690 71,629 207,615 188,856
Depreciation and amortization 10,601 9,667 32,233 27,969
Restructuring and other non-recurring charges - 4,815 5,636 9,817
Total costs and expenses 264,623 244,454 771,227 680,321
 
Income/(loss) from operations 20,879 (3,682) 43,615 22,793
 
Net interest (expense)/income (252) 131 (518) 303
       
Income/(loss) before provision for income taxes 20,627 (3,551) 43,097 23,096
 
Provision for income taxes 2,889 (888) 8,424 4,329
       
 
Net income/(loss) 17,738 (2,663) 34,673 18,767
 
Net income/(loss) per ordinary share
Basic $0.30 ($0.04) $0.58 $0.31
 
Diluted $0.29 ($0.04) $0.57 $0.31
 
Weighted average number of ordinary shares
Basic 59,754,010 60,471,985 59,939,570 60,381,814
 
Diluted 60,366,137 61,063,020 60,391,199 61,096,464
 

ICON plc
           
Summary Balance Sheet Data
 
 
September 30, 2012 and December 31, 2011
(Dollars, in thousands)
 
September 30, December 31,
2012 2011
(Unaudited) (Audited)
 
 
Net cash 179,913 174,177
 
Accounts receivable 231,097 201,338
Unbilled revenue 114,356 126,850
Payments on account (185,835) (150,792)
Total 159,618 177,396
 
Working Capital 209,148 253,514
 
Total Assets 1,135,229 1,035,467
 
Shareholder's Equity 719,041 681,544
 

ICON
Investor Relations, 1-888-381-7923
or
Brendan Brennan, Chief Financial Officer
+ 353 –1-291-2000
or
Sam Farthing, VP Investor Relations
+ 353 –1-291-2000

View Comments and Join the Discussion!