Icon PLC
ICON reports Full-Year 2007 revenue growth of 38% operating income growth of 45%
and EPS growth of 41% (NASDAQ:ICLR)
Highlights - Full Year Fiscal 2007 and Fourth Quarter
-- Full year net revenues increased 38% to $631 million. Fourth quarter net
revenues increased 40% over the comparative quarter, to $181 million.
-- Full year operating income increased by 44.8% to $69.2 million. For the
quarter income from operations increased by 43%, to $19.8 million.
-- Full year diluted earnings per share increased to $1.88, a 41% increase
over last year. Diluted earnings per share increased by 36% for the
fourth quarter to 53 cents.
-- Full year net business awards totalled $1.027 billion, a 54% increase on
last year. Record net new business wins of $344 million awarded to ICON
during the quarter, producing a book to bill of 1.9.
ICON (NASDAQ:ICLR), a global provider of outsourced development services to the
pharmaceutical, biotechnology and medical device industries, today reported its
financial results for the fourth quarter ended December 31, 2007.
Full year, net revenues were $630.7 million, representing a 38.4% increase over
last year. Income from operations, after taking non-cash stock compensation
charge of $5.7 million was $69.2 million or 11% of revenue, compared to $47.8
million or 10.5% last year. Net income was $55.9 million or $1.88 per share,
compared with $38.3 million or $1.33 per share, last year.
Net revenues for the quarter were $180.7 million, representing a 40.1% increase
over net revenues of $128.9 million for the same quarter last year. Income from
operations, after taking non-cash stock compensation charge of $1.8 million, was
$19.8 million or 11.0% of revenue, compared to $13.8 million or 10.7%for the
same quarter last year. Net income was $15.8 million or 53 cents per share on a
diluted basis, compared with $11.4 million or 39 cents per share last year.
Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 66 days at December 31, 2007, compared to 65 days at
September 30, 2007.
For the quarter ended December 31, 2007, cash provided by operating activities
was $23 million and capital expenditure was $25.7 million. Full year 2007, cash
flow from operating activities was $42.9million and capital expenditure was
$75.4 million. In addition, DOCS International was acquired in July 2007 for
consideration of $40.6 million. As a result, cash and short-term investments,
net of debt, amounted to $23.8million at December 31, 2007, compared to $97.9
million at December 31, 2006.
'2007 has been another outstanding year for ICON', commented Chairman Dr. John
Climax. 'Revenue growth continued to be strong and operating margins expanded.
Record net bookings of $344m in the fourth quarter led to bookings for the full
year of over $1billion, another major milestone for ICON. As a consequence, we
have a record backlog of $1.3 billion, which gives us confidence as we enter our
new fiscal year'
The company will hold its fourth quarter conference call today, February 21,
2008 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation
can be accessed live from our website at http://www.iconclinical.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.
The financial information presented herein has been prepared in accordance with
U.S. GAAP.
ICON plc is a global provider of outsourced development services to the
pharmaceutical, biotechnology and medical device industries. The Company
specializes in the strategic development, management and analysis of programs
that support clinical development - from compound selection to Phase I-IV
clinical studies. ICON teams have successfully conducted over 1,900 development
projects and over 2,300 consultancy engagements across all major therapeutic
areas. ICON currently has approximately 5,600 employees, operating from 68
locations in 36 countries. Further information is available at
www.iconclinical.com.
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Source: ICON plc
Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 -1-291-2000
Both at ICON.
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ICON plc
Consolidated Income Statements
Three and Twelve Months ended December 31, 2007 and December 31, 2006
(Dollars, in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
Gross Revenue 241,531 184,329 867,476 649,826
Subcontractor costs 60,861 55,377 236,751 194,229
------------ ------------ ------------ --------------
Net Revenue 180,670 128,952 630,722 455,597
Costs and expenses
Direct costs 100,372 73,117 354,479 256,263
Selling, general and administrative 55,129 38,092 187,993 136,569
Depreciation and amortization 5,382 3,940 19,008 14,949
------------ ------------ ------------ --------------
Total costs and expenses 160,883 115,149 561,480 407,781
Income from operations 19,787 13,803 69,242 47,816
Interest income (net) 659 1,104 2,738 3,640
------------ ------------ ------------ --------------
Income before provision of income
taxes 20,446 14,907 71,980 51,456
Provision for income taxes 4,486 3,428 15,830 12,924
Minority Interest 79 107 187 228
------------ ------------ ------------ --------------
Net income 15,881 11,372 55,963 38,304
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Net income per ordinary share
Basic $0.55 $0.40 $1.95 $1.35
------------ ------------ ------------ --------------
Diluted $0.53 $0.39 $1.88 $1.33
------------ ------------ ------------ --------------
Weighted average number of ordinary
shares
Basic 28,811,694 28,493,566 28,705,272 28,314,985
Diluted 29,975,050 29,427,297 29,747,964 28,863,334
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ICON plc
Summary Balance Sheet Data
December 31, 2007 and December 31, 2006
(Dollars, in thousands)
December 31, December 31,
2007 2006
(audited) (audited)
Cash and short-term investments 118,633 102,861
Debt 94,829 5,000
Net cash 23,804 97,861
Accounts receivable 129,865 108,216
Unbilled revenue 144,611 89,977
Payments on account (96,553) (90,394)
Total 177,923 107,799
Working Capital 193,271 160,321
Total assets 693,138 476,341
Shareholder's equity 388,400 302,738
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 1 291
2000
both at ICON.
http://www.iconclinical.com
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