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ICON Reports First Quarter 2017 Results

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ICON
plc
(NASDAQ:ICLR), a global provider of drug
development solutions and services to the pharmaceutical, biotechnology
and medical device industries, today reported its financial results for
the first quarter ended March 31, 2017.

Gross business wins in the first quarter were $580 million and
cancellations in the quarter were $59 million, resulting in net business
wins of $521 million, a net book to bill of 1.21.

In the first quarter net revenue grew 7.8% year on year to $432 million
from $400.5 million in the same quarter last year.

Income from operations increased by 12.7% to $85.7 million, or 19.8% of
revenue, compared to $76 million or 19% for the same quarter last year.

Net income in the quarter increased by 13.4% to $71.4 million compared
with $63 million in the same quarter last year.

Earnings per share increased to $1.29 per share on a diluted basis, from
$1.12 per share for the same quarter last year, an increase of 15.2%.

Day's sales outstanding, comprising accounts receivable and unbilled
revenue less payments on account, were 47 days at March 31, 2017,
compared with 50 days at the end of December 31, 2016 and 47 days at the
end of March 2016.

Cash generated from operating activities for the quarter was $159.3
million. Capital expenditure for the quarter was $8.3 million.
Additionally, as part of ICON's share buy-back program, $96 million was
spent on share repurchases in quarter one, with a further $12 million to
date in quarter two. As a result, at March 31, 2017, the company had net
debt of $30 million, compared to net debt of $88 million at December 31,
2016 and net debt of $100 million at end of March 2016.

CEO Dr. Steve Cutler commented, "I'm pleased with our results in
quarter one which represent a very solid start to 2017. We achieved a
net book to bill of 1.21, increased revenue by 8%, grew earnings per
share by 15% year on year and reduced the concentration of our top
customer by 500 basis points over the same period.
We have now
completed over half of our current share repurchase program and as a
result we are increasing our earnings guidance by $0.06 to $5.06 -
$5.26, and reconfirming our revenue in the range of $1.70 - $1.75
billion.
Overall, ICON is well positioned to grow organically
supplemented by our M&A strategy which will enable us to capitalize on
the long term growth within the CRO market."

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 first quarter conference call today, April 27, 2017
at 9:00 EDT [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 drug development solutions and 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 87 locations in 38 countries and
has approximately 12,300 employees. Further information is available at www.iconplc.com.

ICON/ICLR-F

ICON plc

Consolidated Income Statements (Unaudited)

(Before restructuring and other items)

Three Months ended March 31, 2017 and March 31, 2016

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

 
  Three Months Ended

March31,

 

 

March31,

 

2017

2016

Revenue:
Gross revenue   578,066   542,583
Reimbursable expenses     (146,112 )     (142,061 )
 
Net revenue 431,954 400,522
 
Costs and expenses:
Direct costs 250,459 228,603
Selling, general and administrative expense 81,389 80,789
Depreciation and amortization     14,448       15,120  
 
Total costs and expenses     346,296       324,512  
 
Income from operations 85,658 76,010
 
Net interest expense     (2,624 )     (2,881 )
 
Income before provision for income taxes 83,034 73,129
 
Provision for income taxes     (11,625 )     (10,165 )
 
Net income     71,409       62,964  
 
Net income per Ordinary Share:
Basic  

 

$1.31

   

 

$1.14

 
 
Pro forma Diluted  

 

$1.29

   

 

$1.12

 
 
Weighted average number of Ordinary Shares outstanding:
Basic     54,372,931       55,011,019  
 
Pro forma Diluted     55,371,826       56,242,164  
 

Consolidated Income Statements (Unaudited)

(US GAAP)

Three Months ended March 31, 2017 and March 31, 2016

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

 
  Three Months Ended

March31,

 

 

March 31,

 

2017

2016

Revenue:
Gross revenue   578,066   542,583
Reimbursable expenses     (146,112 )     (142,061 )
 
Net revenue 431,954 400,522
 
Costs and expenses:
Direct costs 250,459 228,603
Selling, general and administrative expense 81,389 80,789
Depreciation and amortization 14,448 15,120
Restructuring and other items     0       0  
 
Total costs and expenses     346,296       324,512  
 
Income from operations 85,658 76,010
 
Net interest expense     (2,624 )     (2,881 )
 
Income before provision for income taxes 83,034 73,129
 
Provision for income taxes     (11,625 )     (10,165 )
 
Net income     71,409       62,964  
 
Net income per Ordinary Share:
Basic  

 

$1.31

   

 

$1.14

 
 
Diluted  

 

$1.29

   

 

$1.12

 
 
Weighted average number of Ordinary Shares outstanding:
Basic     54,372,931       55,011,019  
 
Diluted     55,371,826       56,242,164  
 

ICON plc

Summary Balance Sheet Data

March 31, 2017 and December 31, 2016

(Dollars, in thousands)

 
 

March 31,

 

December 31,

2017 2016
(Unaudited) (Audited)
 
 
Cash and short-term investments 318,966 260,587
Debt (348,604 ) (348,511 )
Net (debt)/cash (29,638 ) (87,924 )
 
Accounts receivable 340,540 416,229
Unbilled revenue 226,152 192,687
Payments on account (266,704 ) (272,757 )
Total 299,988 336,159
 
Working Capital 466,662 463,552
 
Total Assets 1,855,215 1,825,843
 
Shareholder's Equity 944,509 945,174

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