ICLR ICON PLC

Highlights – First Quarter Fiscal 2014.

• Quarter 1 net revenue increased 10% year on year to $350 million.
• Income from operations was $43.0 million or 12.3% of revenue.
• Earnings per share were 57 cents.
• Gross Business wins were $494 million, representing a gross book to bill of 1.41, Net business wins were $427 million, representing a net book to bill of 1.22
• FY 2014 Guidance updated: Revenue in the range of $1,480 million - $1,540 million and EPS in the range of $2.30 - $2.40.

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, 2014.

For the first quarter, net revenue grew 10% year on year to $349.6 million from $316.8 million in Q1 2013.

Income from operations, excluding restructuring and other items, was $43.0 million or 12.3% of revenue, compared to $27.4 million or 8.7% for the same quarter last year.

Net income, excluding restructuring and other items, was $36.2 million or 57 cents per share on a diluted basis, compared with $22.2 million or 36 cents per share for the same quarter last year.

Guidance for the full year 2014 has been updated with revenue expected to be in the range of $1.48 billion - $1.54 billion and EPS guidance in the range of $2.30 - $2.40.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 35 days at March 31, 2014, compared with 32 days at the end of December 2013.

For the quarter ended March 31, 2014, cash generated from operating activities was $38.7 million and capital expenditure was $6.2 million. The company’s net cash amounted to $364 million at March 31, 2014, compared to net cash of $321 million at December 31, 2013.

CEO Ciaran Murray commented, “We have made an encouraging start to 2014. Revenue for Q1 increased 10% year on year and we continue to make good progress in expanding our operating margins which reached 12.3% in the quarter. The $427 million in net new business that we reported represents a book to bill of 1.22 and gives us a solid foundation upon which to build during the remainder of 2014. In addition in the quarter we have agreed to acquire Aptiv Solutions, a leader in the design and execution of adaptive and medical device trials. As a consequence of this acquisition and our continuing margin progression we are updating our full year 2014 guidance to revenue in the range of $1,480 - $1,540 and EPS in the range of $2.30 - $2.40.”

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 30, 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 76 locations in 37 countries and has approximately 10,300 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, 2014 and March 31, 2013

 

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

 

 

 

Three Months Ended

March 31,   March 31, 2014 2013   Gross Revenue 476,544 419,059   Reimbursable expenses 126,910 102,270       Net Revenue 349,634 316,789   Costs and expenses Direct Costs 216,140 202,361 Selling, general and administrative 78,948 75,564 Depreciation and amortisation 11,548 11,456       Total costs and expenses 306,636 289,381   Income from operations 42,998 27,408   Net interest income / (expense) 91 (185 )       Income before provision for income taxes 43,089 27,223   Provision for income taxes (6,894 ) (5,021 )         Net Income   36,195       22,202     Net income per ordinary share Basic $ 0.59     $ 0.37     Diluted $ 0.57     $ 0.36     Weighted average number of ordinary shares Basic 61,776,643 60,404,242   Diluted 63,225,797 61,323,594  

ICON plc

 

Consolidated Income Statements (Unaudited)

(US GAAP)

 

Three Months ended March 31, 2014 and March 31, 2013

 

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

 

 

 

Three Months Ended

March 31,   March 31, 2014 2013   Gross Revenue 476,544 419,059   Reimbursable expenses 126,910 102,270       Net Revenue 349,634 316,789   Costs and expenses Direct costs 216,140 202,361 Selling, general and administrative 78,948 75,564 Depreciation and amortization 11,548 11,456 Restructuring and other items - 4,412       Total costs and expenses 306,636 293,793   Income from operations 42,998 22,996   Net interest expense 91 (185 )       Income before provision for income taxes 43,089 22,811   Provision for income taxes (6,894 ) (3,766 )         Net income   36,195       19,045     Net income per ordinary share Basic $ 0.59     $ 0.32     Diluted $ 0.57     $ 0.31     Weighted average number of ordinary shares Basic 61,776,643 60,404,242   Diluted 63,225,797 61,323,594  

ICON plc

Summary Balance Sheet Data

March 31, 2014 and December 31, 2013

(Dollars, in thousands)

    March 31,   December 31, 2014 2013 (Unaudited) (Audited)     Net cash 363,521 320,836   Accounts receivable 337,600 342,581 Unbilled revenue 116,653 113,239 Payments on account (269,771 ) (297,347 ) Total 184,482 158,473   Working Capital 405,923 352,259   Total Assets 1,484,541 1,442,460   Shareholder's Equity 960,785 910,579

ICON/ICLR-F

ICON plcInvestor Relations, 1-888-381-7923orBrendan Brennan, +353-1-291-2000CFOSimon Holmes, +3531-291-2000EVP IR & Corporate Developmenthttp://www.iconplc.com