Highlights
- Record net business wins in the quarter of $1,100 million, an
increase of 27% year on year; a net book to bill of 1.28.
- Record closing backlog of $10 billion, an increase of 14.0%
year on year.
- Quarter 1 reported revenue of $858.2 million representing a
year on year increase of 20.0% and 12.9% increase on Quarter 4
2020.
- Adjusted earnings per share* attributable to the Group for the
quarter of $2.06, an increase of 21.0% over Quarter 1 2020.
- US GAAP income from operations amounted to $116.0 million or
13.5% of revenue. US GAAP net income attributable to the Group was
$97.1 million or $1.82 per diluted share, compared to $1.62 per
share for the equivalent prior year period.
- Strong cash generation resulting in a record net cash position
of $595.6 million. Days sales outstanding reduced to 39 days from
55 days at March 31, 2020.
- Standalone full year 2021 revenue guidance increased from a
range of $3,200 - $3,300 million to a range of $3,400 - $3,500
million, representing a year over year increase of 21.6% - 25.1%.
Standalone full year 2021 earnings per share guidance (before
transaction-related costs) increased from a range of $8.10 - $8.50
to a range of $8.40 - $8.80, representing a year over year increase
of 28.6% - 34.8%.
*before transaction-related costs of $12.9 million.
ICON plc (NASDAQ: ICLR), a global provider
of outsourced drug and device development and commercialisation
services to pharmaceutical, biotechnology, medical device and
government and public health organisations, today reported its
financial results for the first quarter ended March 31, 2021.
CEO Dr. Steve Cutler commented, “I am very pleased with the
strong start ICON has made to 2021 which builds on our momentum
from last year. During the quarter ICON produced a record net
business wins of $1.1 billion, an increase of 27% year on year,
growing our backlog to $10 billion, an increase of 14% year on
year. Revenue grew to $858 million, a 20% year on year increase,
and adjusted earnings per share increased by 21% to $2.06.
Given our strong progress this year we are increasing our
standalone 2021 revenue guidance from a range of $3,200 - $3,300
million to a range of $3,400 - $3,500 million, an increase of 21.6%
- 25.1% year over year. And we are increasing standalone adjusted
earnings per share guidance from a range of $8.10 - $8.50 to $8.40
- $8.80, representing an increase of 28.6% - 34.8% year over
year.
Our planning for the acquisition of PRA continues and we remain
on track for closing in July. We believe our strong new business
performance in Q1 demonstrates our customers’ confidence in our
continued operational performance and our commitment to deliver
enhanced and innovative patient centred solutions. We look forward
to the union of two high quality organisations to form the world's
leading healthcare intelligence and clinical CRO.”
First Quarter 2021 Results
Gross business wins in the first quarter were $1,295 million and
cancellations were $195 million. This resulted in net business wins
of $1,100 million and a book to bill of 1.28.
Reported revenue for Quarter 1 was $858.2 million. This
represents a year on year increase of 20.0% or 17.9% on a constant
currency basis.
US GAAP income from operations amounted to $116.0 million or
13.5% of revenue. Adjusted income from operations* in the quarter
was $128.5 million or 15.0% of revenue compared to $106.3 million
or 14.9% of revenue for Quarter 1 2020. This represents a year on
year increase of 20.9%.
US GAAP net income attributable to the Group was $97.1 million
or 11.3% of revenue. Adjusted net income* attributable to the Group
for the quarter was $109.7 million or 12.8% of revenue compared
with $91.7 million or 12.8% of revenue in Quarter 1 2020. This
represents year on year growth of 19.6%.
US GAAP earnings per share attributable to the Group on a
diluted basis was $1.82 compared to $1.62 per share for the
equivalent prior year period. Adjusted earnings per share*
attributable to the Group on a diluted basis was $2.06, compared to
$1.70 per share for Quarter 1 2020. This represents a year on year
increase of 21.0%.
During the quarter the company recorded $12.9m of
transaction-related costs. On a comparative basis, non-GAAP days
sales outstanding were 39 days at March 31, 2021, compared with 41
days at the end of December 2020 and 55 days at the end of March
2020.
Cash generated from operating activities for the quarter was
$111.9 million. During the quarter, $8.7 million was spent on
capital expenditure. As a result, at March 31, 2021, the Group had
net cash of $595.6 million, compared to net cash of $493.6 million
at December 31, 2020 and $134.4 million at the end of March
2020.
* before transaction-related costs.
Other Information
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. Non-GAAP operating and net income and non-GAAP diluted
earnings per share exclude transaction-related costs. 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.
Adjusted earnings per share attributable to the Group (Non-GAAP)
has been computed by dividing non-GAAP net income attributable to
the Group by the weighted average number of shares outstanding.
GAAP earnings per share attributable to the Group has been computed
by dividing net income attributable to the Group plus a GAAP charge
associated with non-controlling interest in MeDiNova Research
(“MeDiNova”) by the weighted average number of shares outstanding.
ICON purchased a majority shareholding in MeDiNova on May 23, 2019.
ICON exercised its call on the outstanding shares in MeDiNova and
derecognized the non-controlling interest effective from March
2020.
ICON will hold a conference call tomorrow, April 29th, 2021 at
10:00 EDT [15:00 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, the impact of
COVID-19 on our business, as well as other 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.
As announced on February 24th, 2021, ICON and PRA Health
Sciences (“PRA”) have entered into a definitive merger agreement.
This communication does not constitute an offer to sell or buy or
the solicitation of any offer to buy or sell any securities, nor
shall there be any sale of securities in a jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities law of any such
jurisdiction. No offering of securities shall be made except by
means of a prospectus meeting regulatory requirements of Section 10
of the Securities Act of 1933. In connection with the proposed
transaction, ICON has filed a registration statement on Form F-4
(File No. 333-254891) with the SEC containing a prospectus of ICON
that also constitutes a proxy statement of each of ICON and
PRA.
This communication is not a substitute for the joint proxy
statement/prospectus or registration statement or for any other
document that ICON or PRA have filed or may file with the SEC in
connection with the potential transaction. INVESTORS AND SECURITY
HOLDERS OF ICON AND PRA ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE
FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO
THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors and security holders will be able to obtain free copies
of the joint proxy statement/prospectus and other documents filed
with the SEC by ICON or PRA through the website maintained by the
SEC at http://www.sec.gov. Copies of the documents filed with the
SEC by ICON will be available free of charge on ICON’s website at
https://www.iconplc.com and copies of the documents filed with the
SEC by PRA will be available free of charge on PRA’s website at
https://www.prahs.com/. Additionally, copies may be obtained by
contacting the investor relations departments of ICON or PRA.
ICON and PRA and certain of their respective directors, certain
of their respective executive officers and other members of
management and employees may be considered participants in the
solicitation of proxies with respect to the potential transaction
under the rules of the SEC. Information about the directors and
executive officers of ICON is set forth in its annual report on
Form 20-F, which was filed with the SEC on February 24, 2021.
Information about the directors and executive officers of PRA is
set forth in its Amendment to Annual Report on Form 10-K/A for the
fiscal year ended December 31, 2020, which was filed with the SEC
on March 30, 2021. These documents can be obtained free of charge
from the sources indicated above. Additional information regarding
the interests of such participants in the solicitation of proxies
in respect of the potential transaction are included in the
registration statement and joint proxy statement/prospectus and
other relevant materials filed with the SEC.
ICON plc is a global provider of outsourced drug and device
development and commercialisation services to pharmaceutical,
biotechnology, medical device and government and public health
organisations. 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
employed approximately 16,070 employees in 89 locations in 43
countries as at March 31, 2021. For further information about ICON,
visit: www.iconplc.com and www.iconplc.com/pra.
Source: ICON plc Contact: Investor Relations +1888 381 7923 or
Brendan Brennan Chief Financial Officer +353 1 291 2000 Jonathan
Curtain Vice President Corporate Finance and Investor Relations
+353 1 291 2000 All at ICON.
ICON plc Condensed Consolidated Statements
of Operations (US GAAP) Three Months ended March 31, 2021 and March
31, 2020 (Dollars, in thousands, except share and per share data)
(Unaudited)
Three Months Ended
March
March
31,
2021
31,
2020
Revenue
858,198
715,102
Costs and expenses:
Direct costs
(626,244)
(505,293)
Selling, general and administrative
expense
(98,535)
(87,196)
Depreciation and amortization
(17,405)
(16,322)
Total costs and expenses
(742,184)
(608,811)
Income from operations
116,014
106,291
Net interest expense
(2,470)
(1,372)
Income before provision for income
taxes
113,544
104,919
Provision for income taxes
(16,148)
(12,590)
Income before share of earnings from
equity method investments
97,396
92,329
Share of equity method investments
(274)
-
Net income
97,122
92,329
Net income attributable to non-controlling
interest
-
(633)
Net income attributable to the
Group
97,122
91,696
Net income per Ordinary Share attributable
to the Group:
Basic
$1.84
$1.63
Diluted
$1.82
$1.62
Weighted average number of Ordinary Shares
outstanding:
Basic
52,811,460
53,348,355
Diluted
53,310,453
53,905,022
ICON plc Condensed Consolidated Statements
of Operations (Non-GAAP) Three Months ended March 31, 2021 and
March 31, 2020 (Dollars, in thousands, except share and per share
data) (Unaudited)
Three Months Ended
March
March
31,
2021
31,
2020
Revenue
858,198
715,102
Costs and expenses:
Direct costs
(626,244)
(505,293)
Selling, general and administrative
expense
(86,034)
(87,196)
Depreciation and amortization
(17,405)
(16,322)
Total costs and expenses
(729,683)
(608,811)
Income from operations
128,515
106,291
Net interest expense
(2,117)
(1,372)
Income before provision for income
taxes
126,398
104,919
Provision for income taxes
(16,432)
(12,590)
Income before share of earnings from
equity method investments
109,966
92,329
Share of equity method investments
(274)
-
Net income
109,692
92,329
Net income attributable to non-controlling
interest
-
(633)
Net income attributable to the
Group
109,692
91,696
Adjusted net income per Ordinary Share
attributable to the Group:
Adjusted basic (non-GAAP)
$2.08
$1.72
Adjusted diluted (non-GAAP)
$2.06
$1.70
Weighted average number of Ordinary Shares
outstanding:
Basic
52,811,460
53,348,355
Diluted
53,310,453
53,905,022
ICON plc Summary Consolidated Balance Sheet
Data March 31, 2021 and December 31, 2020 (Dollars, in
thousands)
March 31,
December 31,
2021
2020
(Unaudited)
(Audited)
Cash and short-term investments
944,184
842,034
Debt
(348,592)
(348,477)
Net cash/(debt)
595,592
493,557
Net Accounts Receivable
465,585
483,072
Working Capital
1,088,833
979,035
Total Assets
3,466,576
3,435,606
Shareholder's Equity
1,934,171
1,850,236
ICON/ICLR-F
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428006018/en/
ICON plc Contact: Investor Relations +1 888 381 7923 or Brendan
Brennan Chief Financial Officer +353 1 291 2000 Jonathan Curtain
Vice President Corporate Finance & Investor Relations +353 1
291 2000 http://www.iconplc.com
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