EX-99.1 2 a50567640ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

ICON Reports Fourth Quarter 2012 Revenue of $300 Million, up 24% year on year, EPS of 34c and Full Year revenue of $1.12 billion, EPS of $1.00.

Highlights – Fourth Quarter and Full year ended December 31 2012.

  • Quarter 4 net revenue increased 24% year on year to $300 million. Full Year 2012 net revenue increased 18% to $1.12 billion.
  • Quarter 4 operating income was $24.4 million or 8.1% of revenue. Full Year 2012 operating income before non- recurring charges was $73.7 million or 6.6% of revenue.
  • Earnings per share for Quarter 4 were $0.34. EPS for the full year 2012 before non-recurring charges was $1.00.
  • Quarter 4 net business awards were $378 million, a book to bill of 1.26. Full Year net new business awards were $1.6 billion, a book to bill of 1.4.
  • Backlog increased 20% year on year to $2.8 billion.
  • Guidance increased to reflect the acquisition of the clinical trial service division of Cross Country Healthcare, Inc. to revenue in the range of $1,258 – $1,292 million and EPS in the range of $1.44 – $1.60.

DUBLIN--(BUSINESS WIRE)--February 19, 2013--ICON plc, (NASDAQ: ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the full year and fourth quarter ended December 31, 2012.

For the fourth quarter net revenue grew 24% year on year to $300 million. Operating income was $24.4 million compared to $6.6 million in the same quarter last year. Operating margin was 8.1% of revenue, compared to 2.7% of revenue for the same quarter last year.

Net income was $20.7 million compared with $4.1 million last year or $0.34 per share compared to $0.07 in the same quarter last year.

For the full year revenue grew 18% to $1.12 billion. Operating income before restructuring and other items was $73.7 million compared to $39.3 million last year. Operating margin for the full year 2012 was 6.6% of revenue compared with 4.2% of revenue in 2011.

On a US GAAP basis, income from operations was $68.0 million or 6.1% compared with $29.4 million or 3.1% in the prior year.

For the full year net income before restructuring and other items was $60.4 million, compared to $31.5 million last year and net margin was 5.4% of revenue, compared with 3.3% in 2011.

EPS before restructuring and other items for 2012 was $1.00 per share compared with $0.52 in 2011.

On a US GAAP basis net income was $55.4 million, compared to $22.8 million last year. Net margin for the full year 2012 was 5.0% of revenue, up from 2.4% in 2011. EPS on a US GAAP basis for 2012 was $0.92 per share compared with $0.37 in 2011.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account were 40 days at December 31, 2012 compared with 47 days at December 31, 2011.

For the quarter ended December 31, 2012, cash provided by operating activities was $12.0 million and capital expenditure was $8.4 million. For the full year 2012 cash flow from operating activities was $113.4 million and capital expenditure was $30.8 million. In addition $69.9 million was invested on acquisitions and $15.8 million was expended on a stock repurchase programme. As a result the company’s net cash amounted to $190 million at December 31, 2012 compared to $174 million of net cash at December 31, 2011.

On the 15th of February we completed the acquisition of the clinical trial service division of Cross Country Healthcare, Inc. This will be combined with our DOCS group to create a global leader in resourcing. Consequently we have increased our full year guidance to revenue in the range of $1,258- $1,292 and EPS in the range of $1.44 - $1.60.

CEO Ciaran Murray commented, “In 2012 we saw the validation of our investment strategy as we won a record $1.6 billion of new business and reported milestone revenue of $1.12 billion and EPS of $1.00. Backlog grew 20% to $2.8 billion, which along with continuing investment in capabilities, talent and innovation in drug development, provides a solid foundation for further growth in 2013.”

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. 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 its fourth quarter conference call today, February 19, 2013 at 9:00 EST [14:00 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.

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 reports filed with the US Securities and Exchange Commission 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.

ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. 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 currently, operates from 79 locations in 37 countries and has approximately 10,045 employees. Further information is available at www.iconplc.com.

ICON/ICLR-F

ICON plc
   
Consolidated Income Statements (Unaudited)
(Before restructuring and other items)
 
Three and Twelve Months ended December 31, 2012 and December 31, 2011
 
(Dollars, in thousands, except share and per share data)
 
 

 

Three Months Ended

 

Twelve Months Ended

December 31,   December 31, December 31,   December 31,
2012 2011 2012

2011

 
Gross Revenue 406,353 337,934 1,503,993 1,296,509
 
Reimbursable expenses 106,189 95,319 388,987 350,780
             
Net Revenue 300,164 242,615 1,115,006 945,729
 
Costs and expenses
Direct costs 192,007 158,244 717,750 611,923
Selling, general and administrative 73,165 67,008 280,780 255,864
Depreciation and amortization 10,590 10,713 42,823 38,682
             
Total costs and expenses 275,762 235,965 1,041,353 906,469
 
Income from operations 24,402 6,650 73,653 39,260
 
Net interest expense (278) (751) (796) (448)
             
Income before provision for income taxes 24,124 5,899 72,857 38,812
 
Provision for income taxes (3,377) (1,786) (12,506) (7,347)
             
 
Net income 20,747   4,113   60,351   31,465
 
Net income per ordinary share
Basic $0.35   $0.07   $1.00   $0.52
 
Diluted $0.34   $0.07   $1.00   $0.52
 
Weighted average number of ordinary shares
Basic 60,053,987 60,371,190 59,968,174 60,379,338
 
Diluted 60,813,483 60,759,588 60,450,706 61,070,686
 
ICON plc
 
Consolidated Income Statements (Audited)
(US GAAP)
 
Three and Twelve Months ended December 31, 2012 and December 31, 2011
 
(Dollars, in thousands, except share and per share data)
   

 

Three Months Ended

Twelve Months Ended

December 31,

  December 31, December 31,   December 31,
2012 2011 2012 2011
 
Gross Revenue 406,353 337,934 1,503,993 1,296,509
 
Reimbursable expenses 106,189 95,319 388,987 350,780
             
Net Revenue 300,164 242,615 1,115,006 945,729
 
Costs and expenses
Direct costs 192,007 158,244 717,750 611,923
Selling, general and administrative 73,165 67,008 280,780 255,864
Depreciation and amortization 10,590 10,713 42,823 38,682
Restructuring and other items - - 5,636 9,817
             
Total costs and expenses 275,762 235,965 1,046,989 916,286
 
Income from operations 24,402 6,650 68,017 29,443
 
Net interest expense (278) (751) (796) (448)
             
Income before provision for income taxes 24,124 5,899 67,221 28,995
 
Provision for income taxes (3,377) (1,786) (11,801) (6,115)
             
 
Net income 20,747   4,113   55,420   22,880
 
Net income per ordinary share
Basic $0.35   $0.07   $0.92   $0.38
 
Diluted $0.34   $0.07   $0.92   $0.37
 
Weighted average number of ordinary shares
Basic 60,053,987 60,371,190 59,968,174 60,379,338
 
Diluted 60,813,483 60,759,588 60,450,706 61,070,686
 
ICON plc
 
Summary Balance Sheet Data
 
December 31, 2012 and December 31, 2011
 
(Dollars, in thousands)
   

 

December 31, December 31,
2012 2011
(Audited) (Audited)
 
 
Net cash 190,230 174,177
 
Accounts receivable 285,419 201,338
Unbilled revenue 112,483 126,850
Payments on account (219,467) (150,792)
Total 178,435 177,396
 
Working Capital 239,791 253,514
 
Total Assets 1,211,330 1,035,467
 
Shareholder's Equity 754,575 681,544
 

CONTACT:
ICON plc
Investor Relations 1-888-381-7923 or
Brendan Brennan Chief Financial Officer +353–1-291-2000
Sam Farthing VP Investor Relations +353–1-291-2000
Simon Holmes EVP Investor Relations and Corporate Development +353–1-291-2000
All at ICON