ICON Reports First Quarter 2021 Results

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 D