Icon PLC
ICON reports 49% increase in revenue and 52% increase in operating income and
raises 2008 guidance (NASDAQ:ICLR) (ISIN:IE0005711209)
Highlights - Second Quarter Fiscal 2008
* Second quarter net revenues increased 48.5%, to $218.3 million.
* Income from operations increased by 51.9%, to $24.4 million.
* Diluted earnings per share increased to 62 cents from 45 cents.
* Net new business wins of $337 million, a book-to-bill of 1.5x.
* 2008 guidance for revenue and EPS increases to $870 - $890 million and $2.46 -
$2.52 respectively.
ICON (NASDAQ:ICLR), a global provider of outsourced development services to the
pharmaceutical, biotechnology and medical device industries, today reported its
financial results for its second quarter ended June 30, 2008.
Net revenues for the quarter were $218.3 million, representing a 48.5% increase
over net revenues of $147 million for the comparative quarter last year.
Year-to-date, net revenues were $419.6 million, representing a 48.2% increase
over the same period last year.
Income from operations was $24.4 million, compared to $16.1 million for the same
quarter last year. Operating margin increased to 11.2% from 10.9%. Net income
was $18.8 million or 62 cents per share on a diluted basis, compared with $13.3
million or 45 cents per share last year.
Year-to-date income from operations was $45.9 million, compared to $30.7 million
last year representing a margin of 10.9% in both periods. Net income was $35.7
million or $1.19 per share, compared with $25.6 million or 86 cents last year.
Days sales outstanding were 58 days at June 30, 2008, compared to 66 days at
December 31, 2007.
For the quarter ended June 30, 2008, cash provided by operating activities was
$40.7 million and capital expenditure was $18.9 million. As a result, the
company's net cash amounted to $6.9 million at June 30, 2008, compared to net
debt of $20.2 million at March 31, 2008.
'We are delighted with ICON's second quarter performance', commented Chairman
Dr. John Climax. 'Revenue growth was very strong and operating margins showed
good progress.'
'It was another quarter of excellent bookings, which were $393 million gross and
$337 million net' said CEO Peter Gray. 'As a result of these strong business
wins we continue to expand our global capability through opening new offices and
hiring new staff and we now have in excess of 6500 staff working in 71 offices
in 38 countries. The strength of demand for our global services has led us to
increase our revenue guidance for 2008 to $870 - $890 million, and our EPS
guidance to $2.46 - $2.52.'
The company will hold its second quarter conference call today, July 22, 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.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 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. With headquarters in Dublin, Ireland, ICON currently,operates
from 71 locations in 38 countries and has approximately 6,500 employees. Further
information is available at www.iconplc.com.
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 (Unaudited)
Three and Six Months ended June 30, 2008 and June 30, 2007
(Dollars, in thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Gross Revenue 316,592 207,383 600,445 394,123
Subcontractor costs 98,292 60,336 180,801 110,987
----------- ----------- ----------- --------------
Net Revenue 218,300 147,047 419,644 283,136
Costs and expenses
Direct costs 122,976 83,875 236,165 162,432
Selling, general and administrative 64,289 42,662 124,834 81,346
Depreciation and amortization 6,641 4,450 12,739 8,606
----------- ----------- ----------- --------------
Total costs and expenses 193,906 130,987 373,738 252,384
Income from operations 24,394 16,060 45,906 30,752
Interest (expense) income (476) 1,019 (519) 2,063
----------- ----------- ----------- --------------
Income before provision of income
taxes 23,918 17,079 45,387 32,815
Provision for income taxes 4,891 3,758 9,138 7,186
Minority interest 206 6 534 48
----------- ----------- ----------- --------------
Net income 18,821 13,315 35,715 25,581
=========== =========== =========== ==============
Net income per ordinary share
Basic $0.65 $0.46 $1.23 $0.89
----------- ----------- ----------- --------------
Diluted $0.62 $0.45 $1.19 $0.86
----------- ----------- ----------- --------------
Weighted average number of ordinary
shares
Basic 29,106,694 28,684,201 29,004,662 28,624,350
Diluted 30,156,563 29,685,489 30,083,989 29,597,671
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ICON plc
Summary Balance Sheet Data
June 30, 2008 and December 31, 2007
(Dollars, in thousands)
June 30, December 31,
2008 2007
(Unaudited) (Audited)
Cash and short-term investments 114,389 118,633
Debt (107,400) (94,829)
Net cash 6,989 23,804
Accounts receivable 221,480 129,865
Unbilled revenue 146,152 144,661
Payments on account (165,218) (96,553)
Total 202,414 177,973
Working Capital 201,862 193,271
Total Assets 843,968 693,138
Shareholder's Equity 447,157 388,400
Source: ICON plc
Contact: Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 1 291 2000
both at ICON.
http://www.iconplc.com
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