ICON Reports 46% Increase in Operating Income, 56% Increase in EPS and Raises Guidance for 2007
ICON (NASDAQ:ICLR), a global provider of outsourced development
services to the pharmaceutical, biotechnology and medical device
industries, today reported its financial results for the first quarter
ended March 31, 2007.
Net revenues for the quarter were $136.1 million, representing a
38.2% increase over net revenues of $98.5 million for the comparative
quarter last year.
Income from operations, after taking non-cash stock compensation
charge of $1.2 million calculated in accordance with SFAS 123(R), was
$14.7 million or 10.8% of revenue, compared to $10.1 million or 10.2%
for the same quarter last year. Net income was $12.3 million or 42
cents per share on a diluted basis, compared with $7.5 million or 27
cents per share last year.
Days sales outstanding, comprising accounts receivable and
unbilled revenue less payments on account, were 59 days at March 31,
2007, an increase from 53 days at December 31, 2006.
For the quarter ended March 31, 2007, cash used in operating
activities was $2.8 million and capital expenditure was $12.5 million.
As a result, the company's cash and short-term investments, net of
debt, amounted to $84.4 million at March 31, 2007, compared to $97.9
million at December 31, 2006.
"It has been an excellent start to 2007", commented Chairman Dr.
John Climax. "Business authorisations have been strong with $223
million of net business awarded to ICON in the quarter, and both
operating income and EPS again tracked ahead of revenue growth.
Business flows continue to be positive and we look forward with
confidence to the remainder of 2007. Accordingly we have raised our
2007 revenue guidance to $560 - $580 million"
The company will hold its first quarter conference call today,
April 24, 2007 at 09:00 EST (14:00 Ireland & UK). 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 "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. ICON teams have successfully
conducted over 1,900 development projects and over 2,300 consultancy
engagements across all major therapeutic areas. ICON currently has
approximately 4,500 employees, operating from 52 locations in 30
countries. Further information is available at www.iconclinical.com.
-0-
*T
ICON plc
Consolidated Income Statements (Unaudited)
Three Months ended March 31, 2007 and March 31, 2006
(Dollars, in thousands, except share and per share data)
Three Months Ended
March 31, March 31,
2007 2006
Gross Revenue 186,740 140,644
Subcontractor costs 50,651 42,149
----------- -----------
Net Revenue 136,089 98,495
Costs and expenses
Direct costs 78,557 54,704
Selling, general and administrative 38,684 30,280
Depreciation and amortization 4,156 3,445
----------- -----------
Total costs and expenses 121,397 88,429
Income from operations 14,692 10,066
Interest income (net) 1,044 647
----------- -----------
Income before provision of income taxes 15,736 10,713
Provision for income taxes 3,428 3,130
Minority interest 42 42
----------- -----------
Net income 12,266 7,541
=========== ===========
Net income per ordinary share
Basic $0.43 $0.27
----------- -----------
Diluted $0.42 $0.27
----------- -----------
Weighted average number of ordinary shares
Basic 28,564,498 28,084,034
Diluted 29,508,662 28,219,068
*T
-0-
*T
ICON plc
Summary Balance Sheet Data
March 31, 2007 and December 31, 2006
(Dollars, in thousands)
March 31, December 31,
2007 2006
(Unaudited) (Audited)
Cash and short-term investments 89,434 102,861
Short-term debt (5,000) (5,000)
Net cash 84,434 97,861
Accounts receivable 110,211 108,216
Unbilled revenue 90,065 89,977
Payments on account (77,454) (90,394)
Total 122,822 107,799
Working Capital 167,716 160,321
Total Assets 476,131 476,341
Shareholder's Equity 319,851 302,738
*T