ICON Reports Third Quarter 2013 Revenue of $340 Million, up 19% Year on Year, EPS of 45C and Raises FY 2013 Guidance.

Highlights – Third Quarter Fiscal 2013.

  • Quarter 3 net revenue increased 19% year on year to $340 million.
  • Income from operations was $33.2 million or 9.8% of revenue.
  • Earnings per share was 45 cents.
  • Gross business wins were $471 million, representing a gross book to bill of 1.4. Net business wins were $415 million, representing a net book to bill of 1.2.
  • FY 2013 Guidance updated: Revenue in the range of $1,325 million - $1,330 million and EPS in the range of $1.67 - $1.70.

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 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  

 

 

 

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