EX-99.1 2 q42023pressrelease.htm EX-99.1 Document
Exhibit 99.1
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ICON Reports Fourth Quarter and Full Year 2023 Results

Highlights

Net business wins in the quarter of $2,531 million; a net book to bill of 1.22. Full year net business wins of $9,946 million; a net book to bill of 1.22.

Closing backlog of $22.8 billion, an increase of 2.4% on quarter three 2023 and an increase of 10.0% on quarter four 2022.

Quarter four revenue of $2,066.2 million representing an increase of 5.3% on prior year revenue. Full year revenue of $8,120.2 million representing a year on year increase of 4.9%.

Quarter four adjusted EBITDA of $448.2 million or 21.7% of revenue, an increase of 10.7% on quarter four 2022. Full year adjusted EBITDA of $1,694.1 million or 20.9% of revenue, representing a year on year increase of 14.5%.

GAAP net income for the quarter of $216.4 million or $2.60 per diluted share. Full year GAAP net income of $612.3 million or $7.40 per diluted share.

Quarter four adjusted net income was $287.5 million or $3.46 per diluted share, an increase of 10.5% on quarter four 2022 adjusted earnings per share. Full year adjusted net income of $1,058.2 million or $12.79 per diluted share, an increase of 8.9% on the prior year adjusted earnings per share.

Days sales outstanding decreased from 49 days at September 30, 2023 to 47 days at December 31, 2023.

$250.0 million repayment made on Term Loan B debt in quarter four bringing full year Term Loan B debt repayments to $950 million. Net debt balance of $3.4 billion at December 31, 2023 with net debt to adjusted EBITDA ratio of 2.0x.

In quarter four 2023, S&P Global Ratings and Moody's both upgraded ICON's debt instruments to an investment grade credit rating, providing the opportunity to reduce full-year interest expense by circa $100 million year over year in 2024.

Board of Directors authorized a share repurchase program up to $500 million to be opportunistically deployed.

Re-affirming full-year 2024 financial guidance of revenue of $8,400 - $8,800 million, representing a year over year increase of 3.4% to 8.4%, and adjusted earnings per share* in the range of $14.50 - $15.30, representing a year over year increase of 13.4% to 19.6%. Adjusted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange and transaction-related / integrated-related adjustments.


Dublin, Ireland, February 21, 2024 – ICON plc (NASDAQ: ICLR), a world-leading healthcare intelligence and clinical research organization, today reported its financial results for the fourth quarter and year ended December 31, 2023.

CEO, Dr. Steve Cutler commented, “With our focus on delivering innovative clinical development solutions, ICON’s solid performance in quarter four and the full year 2023 reflects continued market leadership across the customer segments we serve. Our team delivered strong financial results despite challenging macroeconomic conditions, resulting in full year adjusted EBITDA growth of 15% and adjusted EPS growth of 9% over full year 2022.

We remain encouraged by the positive demand environment as we enter this year, and as such, reaffirm our previously issued financial guidance for the full year 2024, with revenue in the range of $8,400 - $8,800 million, and adjusted earnings per share in the range of $14.50 - $15.30.

Fourth Quarter 2023 Results

Gross business wins in the fourth quarter were $2,992 million and cancellations were $461 million. This resulted in net business wins of $2,531 million and a book to bill of 1.22.

Revenue for the fourth quarter was $2,066.2 million. This represents an increase of 5.3% on prior year revenue or 4.1% on a constant currency basis.

GAAP net income was $216.4 million resulting in $2.60 diluted earnings per share in quarter four 2023 compared to $1.42 diluted earnings per share in quarter four 2022. Adjusted net income for the quarter was $287.5 million resulting in an adjusted diluted earnings per share of $3.46 compared to $3.13 per share for the fourth quarter 2022.

Adjusted EBITDA for the fourth quarter was $448.2 million or 21.7% of revenue, a year-on-year increase of 10.7%.

The effective tax rate on adjusted net income in quarter four was 15.2%.




Cash generated from operating activities for the quarter was $440.1 million. During the quarter $52.7 million was spent on capital expenditure. At December 31, 2023, the Group had cash and cash equivalents of $378.1 million, compared to cash and cash equivalents of $313.1 million at September 30, 2023 and $288.8 million at December 31, 2022. $65 million of the revolving credit facility was drawn down in the quarter and $85 million was repaid. Additionally, $250.0 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $3.4 billion at December 31, 2023.

Full Year 2023 Results

Gross business wins were $11,765 million and cancellations were $1,819 million. This resulted in net business wins of $9,946 million and a book to bill of 1.22.

Full year revenue was $8,120.2 million. This represents a year on year increase of 4.9% on a reported basis and 4.6% on a constant currency basis.

GAAP net income was $612.3 million resulting in $7.40 diluted earnings per share for the full year 2023. Adjusted net income was $1,058.2 million resulting in an adjusted diluted earnings per share of $12.79 compared to $11.75 per share for the equivalent prior year period.

Adjusted EBITDA was $1,694.1 million or 20.9% of revenue, a year on year increase of 14.5%.

The effective tax rate on adjusted net income in 2023 was 15.5%.

Cash generated from operating activities in 2023 was $1,161.0 million. $140.7 million was spent on capital expenditure. $370 million of the revolving credit facility was drawn down and $315 million was repaid. Additionally, $950.0 million of Term Loan B payments were made in the year.

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 adjusted EBITDA, adjusted net income and adjusted diluted earnings per share. Adjusted EBITDA, adjusted net income and adjusted diluted earnings per share exclude amortization, stock compensation, foreign exchange gains and losses, restructuring and transaction-related / integration-related adjustments. 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 a conference call on February 22, 2024 at 08:00 EST [13:00 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, including statements about our financial guidance. 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 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, F-4, S-8, F-3 and certain other reports, which are available on the SEC's website at http://www.sec.gov.

* Our full-year 2024 guidance adjusted earnings per share measures are provided on a non-GAAP basis because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information.




ICON plc is a world-leading healthcare intelligence and clinical research organization. From molecule to medicine, we advance clinical research providing outsourced services to pharmaceutical, biotechnology, medical device and government and public health organizations. We develop new innovations, drive emerging therapies forward and improve patient lives. With headquarters in Dublin, Ireland, ICON employed approximately 41,100 employees in 106 locations in 53 countries as at December 31, 2023. For further information about ICON, visit: www.iconplc.com.

Source: ICON plc

ICON/ICLR-F



ICON plc
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND DECEMBER 31, 2022
(UNAUDITED)

Three Months EndedTwelve Months Ended
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
(in thousands except share and per share data)
Revenue$2,066,248 $1,962,002 $8,120,176 $7,741,386 
Costs and expenses:
Direct costs (excluding depreciation and amortization)1,445,727 1,380,679 5,719,949 5,527,045 
Selling, general and administrative195,560 226,753 768,559 778,753 
Depreciation and amortization149,733 142,228 585,950 569,513 
Transaction and integration related9,660 10,725 44,176 39,695 
Restructuring— (1,747)45,390 31,143 
Total costs and expenses1,800,680 1,758,638 7,164,024 6,946,149 
Income from operations265,568 203,364 956,152 795,237 
Interest income1,720 618 5,014 2,345 
Interest expense(81,034)(75,185)(336,699)(229,731)
Income before income tax expense186,254 128,797 624,467 567,851 
Income tax expense30,164 (10,859)(11,749)(59,411)
Income before share of losses from equity method investments216,418 117,938 612,718 508,440 
Share of losses from equity method investments— (493)(383)(3,136)
Net income$216,418$117,445$612,335$505,304
Net income per Ordinary Share: 
Basic$2.63 $1.44 $7.46 $6.20 
Diluted$2.60 $1.42 $7.40 $6.13 
Weighted average number of Ordinary Shares outstanding:  
Basic82,399,478 81,683,430 82,101,813 81,532,320 
Diluted83,112,757 82,452,097 82,717,640 82,468,363 





ICON plc
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2023 AND DECEMBER 31, 2022
(UNAUDITED)
December 31, 2023December 31, 2022
ASSETS(in thousands)
Current Assets:
Cash and cash equivalents$378,102 $288,768 
Available for sale investments1,954 1,713 
Accounts receivable, net of allowance for credit losses1,790,322 1,731,388 
Unbilled revenue951,936 957,655 
Other receivables65,797 63,658 
Prepayments and other current assets132,105 137,094 
Income taxes receivable91,254 48,790 
Total current assets3,411,470 3,229,066 
Non-current Assets:
Property, plant and equipment, net361,184 350,320 
Goodwill9,022,075 8,971,670 
Intangible assets, net3,855,865 4,278,659 
Operating right-of-use assets140,333 153,832 
Other receivables78,470 70,790 
Income taxes receivable— 21,380 
Deferred tax asset73,662 76,930 
Investments in equity- long term 46,804 32,631 
Total Assets$16,989,863 $17,185,278 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable$131,584 $81,194 
Unearned revenue1,654,507 1,507,449 
Other liabilities915,399 1,005,025 
Income taxes payable13,968 41,783 
Current bank credit lines and loan facilities110,150 55,150 
Total current liabilities2,825,608 2,690,601 
Non-current Liabilities:
Non-current bank credit lines and loan facilities3,665,439 4,599,037 
Lease liabilities126,321 131,644 
Non-current other liabilities45,998 38,260 
Non-current income taxes payable186,654 239,188 
Deferred tax liability899,100 988,585 
Total Liabilities7,749,120 8,687,315 
Shareholders' Equity:
Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized,
82,495,086 shares issued and outstanding at December 31, 2023 and
81,723,555 shares issued and outstanding at December 31, 2022.
6,699 6,649 
Additional paid‑in capital6,942,669 6,840,306 
Other undenominated capital1,162 1,162 
Accumulated other comprehensive loss(143,506)(171,538)
Retained earnings2,433,719 1,821,384 
Total Shareholders' Equity9,240,743 8,497,963 
Total Liabilities and Shareholders' Equity$16,989,863 $17,185,278 



ICON plc
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023 AND DECEMBER 31, 2022
(UNAUDITED)

Twelve Months Ended
December 31, 2023December 31, 2022
(in thousands)
Cash flows from operating activities:
Net income$612,335 $505,304 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation and amortization expense585,950 569,513 
Impairment of long lived assets8,686 28,767 
Reduction in carrying value of operating right-of-use assets41,546 45,215 
Loss on equity method investments383 3,136 
Acquisition related gain(6,160)— 
Charge on cash flow hedge2,407 — 
Amortization of financing costs and debt discount16,402 17,749 
Stock compensation expense55,667 70,523 
Deferred tax benefit(85,403)(124,985)
Unrealized foreign exchange movements19,706 (13,009)
Other non-cash items24,332 11,324 
Changes in operating assets and liabilities:
Accounts receivable(83,296)(420,695)
Unbilled revenue4,716 (332,592)
Unearned revenue134,566 192,944 
Other net assets(170,810)10,121 
Net cash provided by operating activities1,161,027 563,315 
Cash flows from investing activities:
Purchase of property, plant and equipment(140,692)(142,160)
Purchase of subsidiary undertakings (net of cash acquired)(71,766)— 
Sale of available for sale investments2,616 481 
Purchase of available for sale investments(2,857)(482)
Proceeds from investments in equity - long term— 1,906 
Purchase of investments in equity - long term(13,954)(5,612)
Net cash used in investing activities(226,653)(145,867)
Cash flows from financing activities:
Drawdown of credit lines and facilities370,000 75,000 
Repayment of credit lines and facilities(1,265,000)(875,000)
Proceeds from exercise of equity compensation50,973 35,844 
Share issue costs(16)(17)
Repurchase of ordinary shares— (99,983)
Share repurchase costs— (17)
Net cash used in financing activities(844,043)(864,173)
Effect of exchange rate movements on cash(997)(16,720)
Net increase/(decrease) in cash and cash equivalents89,334 (463,445)
Cash and cash equivalents at beginning of year288,768 752,213 
Cash and cash equivalents at end of year$378,102 $288,768 



ICON plc
RECONCILIATION OF NON-GAAP MEASURES
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND DECEMBER 31, 2022
(UNAUDITED)
Three Months EndedTwelve Months Ended
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
(in thousands except share and per share data)
Adjusted EBITDA
Net income$216,418 $117,445 $612,335 $505,304 
Share of losses from equity method investments— 493 383 3,136 
Income tax expense(30,164)10,859 11,749 59,411 
Net interest expense
79,314 74,567 331,685 227,386 
Depreciation and amortization149,733 142,228 585,950 569,513 
Stock-based compensation expense (a)
7,845 15,047 55,667 69,889 
Foreign currency losses/(gains), net (b)
15,381 35,399 12,916 (25,997)
Oncacare (gain) (g)
— — (6,160)— 
Restructuring (c)
— (1,747)45,390 31,143 
Transaction and integration related costs (d)
9,660 10,725 44,176 39,695 
Adjusted EBITDA$448,187 $405,016 $1,694,091 $1,479,480 
Adjusted net income and adjusted diluted net income per Ordinary Share
Net income$216,418 $117,445 $612,335 $505,304 
Income tax expense(30,164)10,859 11,749 59,411 
Amortization115,986 114,969 459,854 463,087 
Stock-based compensation expense (a)
7,845 15,047 55,667 69,889 
Foreign currency losses/(gains), net (b)
15,381 35,399 12,916 (25,997)
Restructuring (c)
— (1,747)45,390 31,143 
Oncacare (gain) (g)
— — (6,160)— 
Transaction and integration related costs (d)
9,660 10,725 44,176 39,695 
Transaction-related financing costs (e)
3,916 4,205 16,402 17,814 
Adjusted tax expense (f)
(51,535)(49,174)(194,152)(191,667)
Adjusted net income $287,507 $257,728 $1,058,177 $968,679 
Diluted weighted average number of Ordinary Shares outstanding83,112,757 82,452,097 82,717,640 82,468,363 
Adjusted diluted net income per Ordinary Share
$3.46 $3.13 $12.79 $11.75 





(a)Stock-based compensation expense represents the amount of recurring expense related to the Company’s equity compensation programs (inclusive of employer related taxes).
(b)Foreign currency losses (gains), net relates to gains or losses that arise in connection with the revaluation of non-US dollar denominated assets and liabilities. We exclude these gains and losses from adjusted EBITDA and adjusted net income because fluctuations from period- to- period do not necessarily correspond to changes in our operating results.
(c)Restructuring relates to charges incurred in connection with the company's realignments of its workforce, with the elimination of redundant positions as well as reviewing its global office footprint and optimizing its locations to best fit the requirements of the company.
(d)Transaction and integration related costs include expenses/credits associated with our acquisitions and any other costs incurred directly related to the integration of these acquisitions.
(e)Transaction-related financing costs includes costs incurred in connection with changes to our long-term debt and amortization of financing fees. We exclude these costs from adjusted EBITDA and adjusted net income because they result from financing decisions rather than from decisions made related to our ongoing operations.
(f)Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate.
(g)On April 20, 2023, the Company completed the purchase of the majority investor’s 51% majority voting share capital of Oncacare Limited (“Oncacare”). This gave rise to an acquisition-related gain of $6.2 million. This gain was excluded from adjusted EBITDA and adjusted net income.


ICON plc

Contact:        Investor Relations +1 888 381 7923 or
        Brendan Brennan Chief Financial Officer +353 1 291 2000
        Kate Haven Vice President Investor Relations +1888 381 7923
        http://www.iconplc.com