EX-99.1 2 ex99_1.htm EXHIBIT 99.1 - PRESS RELEASE Exhibit 99.1 - Press Release
ICON reports record net new business awards of $140 million and a 20% increase in EPS for the Second Quarter FY 2006 (NASDAQ:ICLR)

Highlights - Second Quarter Fiscal 2006, ending November 30, 2005.

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Record $140 million of net new business ($165 million gross) awarded to ICON during the quarter.

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Diluted earnings per share increased by 20% for the second quarter to 49 cents compared to 41 cents in same quarter last year. Year-to-date diluted earnings per share was 94 cents compared to 93 cents for the comparable period last year.

*
Income from operations increased by 29% over the comparable period last year to $9.0 million and increased by 5% for the six months to November 30, 2006.

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Second quarter net revenues increased 11% over the same period last year to $88.1 million and increased 10% on a year-to-date basis.

Dublin, Ireland, January 10, 2006 - ICON plc (NASDAQ: ICLR), a global contract clinical research organisation, which has approximately 3,000 employees providing services to the pharmaceutical, biotech and medical device industries from 39 locations in 25 countries worldwide, today reported the financial results for its second quarter ended November 30, 2005.

Net revenues for the quarter were $88.1 million, representing an 11% increase over net revenues of $79.5 million for the same quarter last year. Income from operations for the quarter was $9.0 million, which represents an increase of 29% from the $7.0 million reported for the second quarter last year. Operating margin for the quarter was 10.2% compared with 8.8% for the equivalent period last year. Net income for the quarter was $7.0 million or 49 cents per share, on a diluted basis, compared with $5.8 million or 41 cents per share for the second quarter last year, an increase of 20%.
 
In the six months to November 30, 2005, net revenues were $174.0 million, representing a 10% increase over net revenues of $157.8 million reported for the first six months of last year. Income from operations for the six months to November 30, 2005 was $17.4 million, representing an increase of 5% from the $16.5 million reported for the same period last year. Operating margin for the six months to November 30, 2005 was 10.0%, compared with 10.4% in the same period last year. Net income was $13.3 million or 94 cents per share, on a diluted basis compared with $13.1 million or 93 cents per share reported for the same period last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 67 days at November 30, 2005 compared with 70 days at August 31, 2005.

For the quarter ended November 30, 2005, cash generated from operations was $11.7 million, and capital expenditure was $7.8 million. For the six months to November 30, 2005, cash generated from operations was $14.5 million, capital expenditure was $11.0 million and net payments of $3.4 million were made in relation to prior year acquisitions. As a result of these factors the company’s net cash, short-term debt and short-term investments were $79.2 million at November 30, 2005, compared to $75.4 million at August 31, 2005 and $78.4 million at May 31, 2005.

"We are very pleased with our performance in the second quarter", commented Chairman, Dr John Climax. "Revenue growth accelerated, operating margin continued to improve and we booked record levels of new business, continuing the momentum built up over the past few quarters."

Commenting on the outlook, Dr Climax said “At the end of November, our total backlog was $633 million and business flows continued to be good. Based on this strong position, we expect that our net revenues for the 12 months ended December 31, 2006 will be between $380 - $400 million and we estimate that approximately $296 million, or 76% of these forecasts are currently


in booked and awarded business. We will provide more detailed guidance on our conference call to be held today”.

The company will hold its second quarter conference call today, January 10, 2006 at 8:00 EST [13:00 GMT / 14:00 CET]. 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 “shareholders services”. 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.

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





               
ICON plc
               
Consolidated Income Statements
(Unaudited)
               
Three and Six Months ended November 30, 2005 and 2004
(Dollars, in thousands, except share and per share data)
               
               
 
Three Months Ended
 
Six Months Ended
 
November 30,
  
November 30,
  
November 30,
  
November 30,
 
2005
  
2004
  
2005
  
2004
               
Gross Revenue
120,344
  
117,068
  
235,696
  
234,263
               
Subcontractor costs
32,272
  
37,573
  
61,703
  
76,429
 
 
  
 
  
 
  
 
Net Revenue
88,072
  
79,495
  
173,993
  
157,834
               
Costs and expenses
             
Direct costs
48,721
  
43,671
  
96,031
  
86,124
Selling, general and administrative
26,824
  
25,520
  
53,633
  
48,859
Depreciation and amortization
3,509
  
3,296
  
6,943
  
6,358
 
 
  
 
  
 
  
 
Total costs and expenses
79,054
  
72,487
  
156,607
  
141,341
               
Income from operations
9,018
  
7,008
  
17,386
  
16,493
               
Interest income (net)
603
  
179
  
1,018
  
343
 
 
  
 
  
 
  
 
Income before provision of income taxes
9,621
  
7,187
  
18,404
  
16,836
               
Provision for income taxes
2,618
  
1,310
  
5,077
  
3,632
Minority Interest
50
  
58
  
(9)
  
80
               
Net income
6,953
  
5,819
  
13,336
  
13,124
               
Net income per ordinary share
              
Basic
$0.50
  
$0.42
  
$0.95
  
$0.95
               
Diluted
$0.49
  
$0.41
  
$0.94
  
$0.93
               
Weighted average number of ordinary shares
              
Basic
14,005,454
  
13,847,689
  
14,027,564
  
13,839,857
               
Diluted
14,261,734
  
14,067,079
  
14,234,326
  
14,088,030




           
ICON plc
           
Summary Balance Sheet Data
November 30, 2005 and May 31, 2005
(Dollars, in thousands)
           
     
November 30,
  
May 31,
     
2005
  
2005
     
(unaudited)
  
(audited)
         
Cash and short-term investments
  
82,242
  
78,375
Short-term debt
    
(3,000)
  
-
Net cash
    
79,242
  
78,375
           
Accounts receivable
    
63,727
  
80,486
Unbilled revenue
    
75,589
  
56,762
Payments on account
    
(50,926)
  
(52,583)
Total
    
88,390
  
84,665
           
Working Capital
    
133,406
  
125,288
           
Total assets
   
354,872
  
347,553
           
Shareholder's equity
    
241,959
  
233,066
           
           
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