ICON Reports First Quarter 2013 Revenue of $317 Million, up 26% year on year and non-GAAP EPS of 36c.

Highlights — First Quarter Fiscal 2013.

  • Quarter 1 net revenue increased 26% year on year to $317 million.
  • Income from operations, excluding restructuring and other items, was $27.4 million or 8.7% of revenue.
  • Earnings per share, excluding restructuring and other items, was 36 cents.
  • Gross Business wins were $481 million, representing a gross book to bill of 1.52, Net business wins were $422 million, representing a net book to bill of 1.33.

DUBLIN-- 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 first quarter ended March 31, 2013.

For the first quarter, net revenues grew 26% year on year to $316.8 million from $252.3 million in Q1 2012.

Income from operations, excluding restructuring and other items, was $27.4 million or 8.7% of revenue, compared to $11.7 million or 4.7% for the same quarter last year. Net income, excluding restructuring and other items, was $22.2 million or 36 cents per share on a diluted basis, compared with $8.9 million or 15 cents per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 33 days at March 31, 2013, compared with 40 days at the end of December 2012.

For the quarter ended March 31, 2013, cash generated from operating activities was $69.4 million and capital expenditure was $9.4 million. The company's net cash amounted to $201 million at March 31, 2013, compared to net cash of $190 million at December 31, 2012.

During the quarter the company recorded a charge of $4.4 million in relation to restructuring costs and other items. US GAAP income from operations after these items amounted to $23 million or 7.3% of revenue. US GAAP net income for the quarter was $19 million or 31 cents per share.

CEO Ciaran Murray commented, "Q1 represents an encouraging start to 2013. Revenue increased year on year by 26%, and we continued to make progress in expanding our operating margins, reaching 8.7% in the quarter. We reported net new business of $422 million, a book to bill of 1.3, giving us a solid foundation upon which to build during the remainder of 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 first quarter conference call today, April 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 79 locations in 37 countries and has approximately 10,200 employees. Further information is available at www.iconplc.com.

ICON plc

Consolidated Income Statements (Unaudited)

(Before restructuring and other items)

Three Months ended March 31, 2013 and March 31, 2012

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

 

                                             

Three Months Ended

     
                                                March 31,               March 31,      
                                                2013               2012      
                                                                       
Gross Revenue                                               419,059               343,055      
                                                                       
Reimbursable expenses                                               102,270               90,722      
                                                                       
Net Revenue                                               316,789               252,333      
                                                                       
Costs and expenses                                                                      
Direct costs                                               202,361               162,284      
Selling, general and administrative                                               75,564               67,515      
Depreciation and amortization                                               11,456               10,802      
                                                                       
Total costs and expenses                                               289,381               240,601      
                                                                       
Income from operations                                               27,408               11,732      
                                                                       
Net interest expense                                               (185)               (35)      
                                                                       
Income before provision for income taxes                                               27,223               11,697      
                                                                       
Provision for income taxes                                               (5,021)               (2,726)      
                                                                       
                                                                       
Net income                                               22,202               8,971      
                                                                       
Net income per ordinary share                                                                      
Basic                                               $0.37               $0.15      
                                                                       
Diluted                                               $0.36               $0.15      
                                                                       
Weighted average number of ordinary shares                                                                      
Basic                                               60,404,242               60,086,104      
                                                                       
Diluted                                               61,323,594               60,708,469      
                                                                       

 

ICON plc

Consolidated Income Statements (Unaudited)

(US GAAP)

Three Months ended March 31, 2013 and March 31, 2012

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

 

     

Three Months Ended

             
                                        March 31,               March 31,              
                                        2013               2012              
                                                                       
Gross Revenue                                       419,059               343,055              
                                                                       
Reimbursable expenses                                       102,270               90,722              
                                                                       
Net Revenue                                       316,789               252,333              
                                                                       
Costs and expenses                                                                      
Direct costs                                       202,361               162,284              
Selling, general and administrative                                       75,564               67,515              
Depreciation and amortization                                       11,456               10,802              
Restructuring and other items                                       4,412               -              
                                                                       
Total costs and expenses                                       293,793               240,601              
                                                                       
Income from operations                                       22,996               11,732              
                                                                       
Net interest expense                                       (185)               (35)              
                                                                       
Income before provision for income taxes                                       22,811               11,697              
                                                                       
Provision for income taxes                                       (3,766)               (2,726)              
                                                                       
                                                                       
Net income                                       19,045               8,971              
                                                                       
Net income per ordinary share                                                                      
Basic                                       $0.32               $0.15              
                                                                       
Diluted                                       $0.31               $0.15              
                                                                       
Weighted average number of ordinary shares                                                                      
Basic                                       60,404,242               60,086,104              
                                                                       
Diluted                                       61,323,594               60,708,469              
                                                                       

 

ICON plc

Summary Balance Sheet Data

March 31, 2013 and December 31, 2012

(Dollars, in thousands)

                                                March 31,                                                               December 31,              
                                                2013                                                               2012              
                                                (Unaudited)                                                               (Audited)              
                                                                                                                               
                                                                                                                               
Net cash                                               200,506                                                               190,230              
                                                                                                                               
Accounts receivable                                               261,062                                                               285,419              
Unbilled revenue                                               115,431                                                               112,483              
Payments on account                                               (221,720)                                                               (219,467)              
Total                                               154,773                                                               178,435              
                                                                                                                               
Working Capital                                               228,340                                                               250,326              
                                                                                                                               
Total Assets                                               1,231,220                                                               1,202,108              
                                                                                                                               
Shareholder's Equity                                               767,932                                                               754,575              
                                                                                                                               

 

 

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