Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries ICON Reports Third Quarter 2023 Results By: ICON plc via Business Wire October 25, 2023 at 16:15 PM EDT Highlights Net business wins in the quarter of $2,581 million; a net book to bill of 1.26 or 1.22 on a trailing twelve month basis and an increase of 10% on quarter three 2022. Closing backlog of $22.2 billion, an increase of 2.6% on quarter two 2023 and an increase of 10.0% on quarter three 2022. Quarter three revenue of $2,055.1 million representing an increase of 5.8% on prior year revenue. YTD revenue of $6,053.9 million representing a year on year increase of 4.8%. Quarter three adjusted EBITDA of $432.5 million or 21.0% of revenue, an increase of 13.9% on quarter three 2022. YTD adjusted EBITDA of $1,245.9 million or 20.6% of revenue, representing a year on year increase of 16.0%. GAAP net income attributable to the Group for the quarter of $163.7 million or $1.97 per diluted share. YTD GAAP net income of $395.9 million or $4.79 per diluted share. Quarter three adjusted net income attributable to the Group was $273.9 million or $3.30 per diluted share, an increase of 10.0% on quarter three 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $770.7 million or $9.31 per diluted share, an increase of 8.0% on the prior year adjusted earnings per share. Days sales outstanding decreased from 52 days at June 30, 2023 to 49 days at September 30, 2023. $300.0 million repayment made on Term Loan B debt. Net debt balance of $3.7 billion with net debt to adjusted EBITDA ratio of 2.3x. In October 2023, ICON acquired Philips Pharma Solutions, a leading provider of medical imaging and cardiac safety monitoring services. In October 2023, S&P Global Ratings upgraded ICON to an investment grade credit rating. Re-affirming full-year 2023 financial guidance of revenue of $8,070 - $8,210 million, representing a year over year increase of 4.3 to 6.1%, and adjusted earnings per share* in the range of $12.63 - $12.91, representing a year over year increase of 7.5 to 9.9%. Adjusted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange and transaction-related / integrated-related adjustments. ICON plc (NASDAQ: ICLR), a world-leading healthcare intelligence and clinical research organization, today reported its financial results for the third quarter ended September 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered impressive results in the third quarter, with revenue growth of 6% year over year, as well as double digit adjusted EBITDA and adjusted earnings per share growth of 14% and 10%, respectively, over quarter three 2022. Our net book to bill improved to 1.26x in the quarter, reflective of the healthy demand for our market-leading offering across the customer segments we serve. We remain well positioned as a critical partner with new and existing customers to play a long-term role in accelerating their development portfolios.” Third Quarter 2023 Results Gross business wins in the third quarter were $3,055 million and cancellations were $474 million. This resulted in net business wins of $2,581 million and a book to bill of 1.26. Revenue for the third quarter was $2,055.1 million. This represents an increase of 5.8% on prior year revenue or 4.8% on a constant currency organic basis. GAAP net income attributable to the Group was $163.7 million resulting in $1.97 diluted earnings per share in quarter three 2023 compared to $1.94 diluted earnings per share in quarter three 2022. Adjusted net income attributable to the Group for the quarter was $273.9 million resulting in an adjusted diluted earnings per share of $3.30 compared to $3.00 per share for the third quarter 2022. Adjusted EBITDA for the third quarter was $432.5 million or 21.0% of revenue, a year-on-year increase of 13.9%. The effective tax rate on adjusted net income in quarter three was 15.2%. Cash generated from operating activities for the quarter was $341.5 million. During the quarter $29.1 million was spent on capital expenditure. At September 30, 2023, the Group had cash and cash equivalents of $313.1 million, compared to cash and cash equivalents of $270.2 million at June 30, 2023 and $609.2 million at September 30, 2022. $75 million of the revolving credit facility was drawn down in the quarter and $50 million was repaid. Additionally, $300.0 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $3.7 billion at September 30, 2023. Year to date 2023 Results Gross business wins year to date were $8,773 million and cancellations were $1,358 million. This resulted in net business wins of $7,415 million and a book to bill of 1.22. Year to date revenue was $6,053.9 million. This represents a year on year increase of 4.8% on a reported and on a constant currency basis. GAAP net income attributable to the Group year to date was $395.9 million resulting in $4.79 diluted earnings per share. Adjusted net income attributable to the Group was $770.7 million resulting in an adjusted diluted earnings per share of $9.31 compared to $8.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $1,245.9 million or 20.6% of revenue, a year on year increase of 16.0%. 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 attributable to the Group and adjusted diluted earnings per share attributable to the Group. 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 October 26, 2023 at 08:00 EDT [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, the impact of COVID-19 on our business, 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 2023 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 41,150 employees in 106 locations in 53 countries as at September 30, 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 NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Revenue $ 2,055,099 $ 1,942,427 $ 6,053,928 $ 5,779,384 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,449,136 1,375,837 4,274,222 4,146,366 Selling, general and administrative expense 185,187 166,787 572,999 552,000 Depreciation and amortization 146,032 141,861 436,217 427,285 Transaction and integration-related expenses 10,433 8,001 34,516 28,970 Restructuring — 6,197 45,390 32,890 Total costs and expenses 1,790,788 1,698,683 5,363,344 5,187,511 Income from operations 264,311 243,744 690,584 591,873 Interest income 1,273 1,434 3,294 1,727 Interest expense (83,908) (63,010) (255,665) (154,546) Income before provision for income taxes 181,676 182,168 438,213 439,054 Provision for income taxes (18,011) (21,012) (41,913) (48,552) Income before share of earnings from equity method investments 163,665 161,156 396,300 390,502 Share of losses in equity method investments — (1,002) (383) (2,643) Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Net income per Ordinary Share attributable to the Group: Basic $ 1.99 $ 1.96 $ 4.83 $ 4.76 Diluted $ 1.97 $ 1.94 $ 4.79 $ 4.70 Weighted average number of Ordinary Shares outstanding: Basic 82,215,627 81,582,375 82,001,500 81,481,686 Diluted 82,972,888 82,493,211 82,737,073 82,473,521 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) September 30, 2023 December 31, 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 313,065 $ 288,768 Available for sale investments 1,954 1,713 Accounts receivable, net of allowance for credit losses 1,850,362 1,731,388 Unbilled revenue 941,884 957,655 Other receivables 121,687 63,658 Prepayments and other current assets 150,193 137,094 Income taxes receivable 42,039 48,790 Total current assets 3,421,184 3,229,066 Non-current Assets: Property, plant and equipment, net 342,262 350,320 Goodwill 8,982,896 8,971,670 Intangible assets 3,934,673 4,278,659 Operating right-of-use assets 132,319 153,832 Other receivables 52,797 70,790 Income taxes receivable 40,481 21,380 Deferred tax asset 83,095 76,930 Investments in equity- long term 41,790 32,631 Total Assets $ 17,031,497 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 87,317 $ 81,194 Unearned revenue 1,663,183 1,507,449 Other liabilities 948,829 1,005,025 Income taxes payable 41,518 41,783 Current bank credit lines and loan facilities 130,150 55,150 Total current liabilities 2,870,997 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 3,911,522 4,599,037 Lease liabilities 121,424 131,644 Non-current other liabilities 41,661 38,260 Non-current income taxes payable 242,972 239,188 Deferred tax liability 883,887 988,585 Total Liabilities 8,072,463 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,326,976 shares issued and outstanding at September 30, 2023 and 6,688 6,649 81,723,555 shares issued and outstanding at December 31, 2022 Additional paid‑in capital 6,924,073 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (190,190) (171,538) Retained earnings 2,217,301 1,821,384 Total Shareholders' Equity 8,959,034 8,497,963 Total Liabilities and Equity $ 17,031,497 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Nine Months Ended September 30, 2023 September 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 395,917 $ 387,859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 436,217 427,285 Impairment of long lived assets 8,845 27,727 Reduction in carrying value of operating right-of-use assets 33,979 35,238 Loss on equity method investments 383 2,643 Acquisition related gain (6,160) — Charge on cash flow hedge 3,335 — Amortization of financing costs and debt discount 12,485 13,544 Stock compensation expense 47,303 55,703 Deferred taxes (114,487) (126,620) Foreign exchange movements (7,670) (52,334) Other non-cash items 21,966 18,595 Changes in assets and liabilities: Accounts receivable (139,096) (140,760) Unbilled revenue 14,370 (221,104) Unearned revenue 158,269 28,352 Other net assets (144,760) 166,613 Net cash provided by operating activities 720,896 622,741 Cash flows from investing activities: Purchase of property, plant and equipment (87,980) (85,145) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity - long term (10,829) (1,840) Sale of available for sale investments 1,611 — Purchase of available for sale investments (1,852) — Net cash used in investing activities (104,150) (86,985) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 305,000 25,000 Repayment of bank credit lines and loan facilities (930,000) (625,000) Proceeds from exercise of equity compensation 36,517 28,967 Share issue costs (14) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (588,497) (671,036) Effect of exchange rate movements on cash (3,952) (7,775) Net increase/(decrease) in cash and cash equivalents 24,297 (143,055) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 313,065 $ 609,158 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Share of equity method investments — 1,002 383 2,643 Provision for income taxes 18,011 21,012 41,913 48,552 Net interest expense 82,635 61,576 252,371 152,819 Depreciation and amortization 146,032 141,861 436,217 427,285 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Oncacare (gain) (g) — — (6,160) — Restructuring (c) — 6,197 45,390 32,890 Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Adjusted EBITDA $ 432,535 $ 379,600 $ 1,245,904 $ 1,074,466 Adjusted net income attributable to the Group and adjusted diluted net income per Ordinary Share attributable to the Group Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Provision for income taxes 18,011 21,012 41,913 48,552 Amortization 114,573 114,991 343,868 348,118 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Restructuring (c) — 6,197 45,390 32,890 Oncacare (gain) (g) — — (6,160) — Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Transaction-related financing costs (e) 4,587 4,356 12,486 13,609 Adjusted tax expense (f) (49,100) (47,284) (142,617) (142,492) Adjusted net income attributable to the Group $ 273,928 $ 247,224 $ 770,670 $ 710,954 Diluted weighted average number of Ordinary Shares outstanding 82,972,888 82,493,211 82,737,073 82,473,521 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.30 $ 3.00 $ 9.31 $ 8.62 (a) Stock-based compensation expense represents the amount of recurring non-cash 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 charges incurred relate to charges incurred in connection with the termination of leases at locations that are no longer being used and amounts incurred in connection with the elimination of redundant positions within the organization. (d) Transaction-related / 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 http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20231025382191/en/Contacts 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 All at ICON Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
ICON Reports Third Quarter 2023 Results By: ICON plc via Business Wire October 25, 2023 at 16:15 PM EDT Highlights Net business wins in the quarter of $2,581 million; a net book to bill of 1.26 or 1.22 on a trailing twelve month basis and an increase of 10% on quarter three 2022. Closing backlog of $22.2 billion, an increase of 2.6% on quarter two 2023 and an increase of 10.0% on quarter three 2022. Quarter three revenue of $2,055.1 million representing an increase of 5.8% on prior year revenue. YTD revenue of $6,053.9 million representing a year on year increase of 4.8%. Quarter three adjusted EBITDA of $432.5 million or 21.0% of revenue, an increase of 13.9% on quarter three 2022. YTD adjusted EBITDA of $1,245.9 million or 20.6% of revenue, representing a year on year increase of 16.0%. GAAP net income attributable to the Group for the quarter of $163.7 million or $1.97 per diluted share. YTD GAAP net income of $395.9 million or $4.79 per diluted share. Quarter three adjusted net income attributable to the Group was $273.9 million or $3.30 per diluted share, an increase of 10.0% on quarter three 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $770.7 million or $9.31 per diluted share, an increase of 8.0% on the prior year adjusted earnings per share. Days sales outstanding decreased from 52 days at June 30, 2023 to 49 days at September 30, 2023. $300.0 million repayment made on Term Loan B debt. Net debt balance of $3.7 billion with net debt to adjusted EBITDA ratio of 2.3x. In October 2023, ICON acquired Philips Pharma Solutions, a leading provider of medical imaging and cardiac safety monitoring services. In October 2023, S&P Global Ratings upgraded ICON to an investment grade credit rating. Re-affirming full-year 2023 financial guidance of revenue of $8,070 - $8,210 million, representing a year over year increase of 4.3 to 6.1%, and adjusted earnings per share* in the range of $12.63 - $12.91, representing a year over year increase of 7.5 to 9.9%. Adjusted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange and transaction-related / integrated-related adjustments. ICON plc (NASDAQ: ICLR), a world-leading healthcare intelligence and clinical research organization, today reported its financial results for the third quarter ended September 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered impressive results in the third quarter, with revenue growth of 6% year over year, as well as double digit adjusted EBITDA and adjusted earnings per share growth of 14% and 10%, respectively, over quarter three 2022. Our net book to bill improved to 1.26x in the quarter, reflective of the healthy demand for our market-leading offering across the customer segments we serve. We remain well positioned as a critical partner with new and existing customers to play a long-term role in accelerating their development portfolios.” Third Quarter 2023 Results Gross business wins in the third quarter were $3,055 million and cancellations were $474 million. This resulted in net business wins of $2,581 million and a book to bill of 1.26. Revenue for the third quarter was $2,055.1 million. This represents an increase of 5.8% on prior year revenue or 4.8% on a constant currency organic basis. GAAP net income attributable to the Group was $163.7 million resulting in $1.97 diluted earnings per share in quarter three 2023 compared to $1.94 diluted earnings per share in quarter three 2022. Adjusted net income attributable to the Group for the quarter was $273.9 million resulting in an adjusted diluted earnings per share of $3.30 compared to $3.00 per share for the third quarter 2022. Adjusted EBITDA for the third quarter was $432.5 million or 21.0% of revenue, a year-on-year increase of 13.9%. The effective tax rate on adjusted net income in quarter three was 15.2%. Cash generated from operating activities for the quarter was $341.5 million. During the quarter $29.1 million was spent on capital expenditure. At September 30, 2023, the Group had cash and cash equivalents of $313.1 million, compared to cash and cash equivalents of $270.2 million at June 30, 2023 and $609.2 million at September 30, 2022. $75 million of the revolving credit facility was drawn down in the quarter and $50 million was repaid. Additionally, $300.0 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $3.7 billion at September 30, 2023. Year to date 2023 Results Gross business wins year to date were $8,773 million and cancellations were $1,358 million. This resulted in net business wins of $7,415 million and a book to bill of 1.22. Year to date revenue was $6,053.9 million. This represents a year on year increase of 4.8% on a reported and on a constant currency basis. GAAP net income attributable to the Group year to date was $395.9 million resulting in $4.79 diluted earnings per share. Adjusted net income attributable to the Group was $770.7 million resulting in an adjusted diluted earnings per share of $9.31 compared to $8.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $1,245.9 million or 20.6% of revenue, a year on year increase of 16.0%. 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 attributable to the Group and adjusted diluted earnings per share attributable to the Group. 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 October 26, 2023 at 08:00 EDT [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, the impact of COVID-19 on our business, 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 2023 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 41,150 employees in 106 locations in 53 countries as at September 30, 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 NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Revenue $ 2,055,099 $ 1,942,427 $ 6,053,928 $ 5,779,384 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,449,136 1,375,837 4,274,222 4,146,366 Selling, general and administrative expense 185,187 166,787 572,999 552,000 Depreciation and amortization 146,032 141,861 436,217 427,285 Transaction and integration-related expenses 10,433 8,001 34,516 28,970 Restructuring — 6,197 45,390 32,890 Total costs and expenses 1,790,788 1,698,683 5,363,344 5,187,511 Income from operations 264,311 243,744 690,584 591,873 Interest income 1,273 1,434 3,294 1,727 Interest expense (83,908) (63,010) (255,665) (154,546) Income before provision for income taxes 181,676 182,168 438,213 439,054 Provision for income taxes (18,011) (21,012) (41,913) (48,552) Income before share of earnings from equity method investments 163,665 161,156 396,300 390,502 Share of losses in equity method investments — (1,002) (383) (2,643) Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Net income per Ordinary Share attributable to the Group: Basic $ 1.99 $ 1.96 $ 4.83 $ 4.76 Diluted $ 1.97 $ 1.94 $ 4.79 $ 4.70 Weighted average number of Ordinary Shares outstanding: Basic 82,215,627 81,582,375 82,001,500 81,481,686 Diluted 82,972,888 82,493,211 82,737,073 82,473,521 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) September 30, 2023 December 31, 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 313,065 $ 288,768 Available for sale investments 1,954 1,713 Accounts receivable, net of allowance for credit losses 1,850,362 1,731,388 Unbilled revenue 941,884 957,655 Other receivables 121,687 63,658 Prepayments and other current assets 150,193 137,094 Income taxes receivable 42,039 48,790 Total current assets 3,421,184 3,229,066 Non-current Assets: Property, plant and equipment, net 342,262 350,320 Goodwill 8,982,896 8,971,670 Intangible assets 3,934,673 4,278,659 Operating right-of-use assets 132,319 153,832 Other receivables 52,797 70,790 Income taxes receivable 40,481 21,380 Deferred tax asset 83,095 76,930 Investments in equity- long term 41,790 32,631 Total Assets $ 17,031,497 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 87,317 $ 81,194 Unearned revenue 1,663,183 1,507,449 Other liabilities 948,829 1,005,025 Income taxes payable 41,518 41,783 Current bank credit lines and loan facilities 130,150 55,150 Total current liabilities 2,870,997 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 3,911,522 4,599,037 Lease liabilities 121,424 131,644 Non-current other liabilities 41,661 38,260 Non-current income taxes payable 242,972 239,188 Deferred tax liability 883,887 988,585 Total Liabilities 8,072,463 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,326,976 shares issued and outstanding at September 30, 2023 and 6,688 6,649 81,723,555 shares issued and outstanding at December 31, 2022 Additional paid‑in capital 6,924,073 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (190,190) (171,538) Retained earnings 2,217,301 1,821,384 Total Shareholders' Equity 8,959,034 8,497,963 Total Liabilities and Equity $ 17,031,497 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Nine Months Ended September 30, 2023 September 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 395,917 $ 387,859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 436,217 427,285 Impairment of long lived assets 8,845 27,727 Reduction in carrying value of operating right-of-use assets 33,979 35,238 Loss on equity method investments 383 2,643 Acquisition related gain (6,160) — Charge on cash flow hedge 3,335 — Amortization of financing costs and debt discount 12,485 13,544 Stock compensation expense 47,303 55,703 Deferred taxes (114,487) (126,620) Foreign exchange movements (7,670) (52,334) Other non-cash items 21,966 18,595 Changes in assets and liabilities: Accounts receivable (139,096) (140,760) Unbilled revenue 14,370 (221,104) Unearned revenue 158,269 28,352 Other net assets (144,760) 166,613 Net cash provided by operating activities 720,896 622,741 Cash flows from investing activities: Purchase of property, plant and equipment (87,980) (85,145) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity - long term (10,829) (1,840) Sale of available for sale investments 1,611 — Purchase of available for sale investments (1,852) — Net cash used in investing activities (104,150) (86,985) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 305,000 25,000 Repayment of bank credit lines and loan facilities (930,000) (625,000) Proceeds from exercise of equity compensation 36,517 28,967 Share issue costs (14) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (588,497) (671,036) Effect of exchange rate movements on cash (3,952) (7,775) Net increase/(decrease) in cash and cash equivalents 24,297 (143,055) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 313,065 $ 609,158 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Share of equity method investments — 1,002 383 2,643 Provision for income taxes 18,011 21,012 41,913 48,552 Net interest expense 82,635 61,576 252,371 152,819 Depreciation and amortization 146,032 141,861 436,217 427,285 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Oncacare (gain) (g) — — (6,160) — Restructuring (c) — 6,197 45,390 32,890 Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Adjusted EBITDA $ 432,535 $ 379,600 $ 1,245,904 $ 1,074,466 Adjusted net income attributable to the Group and adjusted diluted net income per Ordinary Share attributable to the Group Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Provision for income taxes 18,011 21,012 41,913 48,552 Amortization 114,573 114,991 343,868 348,118 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Restructuring (c) — 6,197 45,390 32,890 Oncacare (gain) (g) — — (6,160) — Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Transaction-related financing costs (e) 4,587 4,356 12,486 13,609 Adjusted tax expense (f) (49,100) (47,284) (142,617) (142,492) Adjusted net income attributable to the Group $ 273,928 $ 247,224 $ 770,670 $ 710,954 Diluted weighted average number of Ordinary Shares outstanding 82,972,888 82,493,211 82,737,073 82,473,521 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.30 $ 3.00 $ 9.31 $ 8.62 (a) Stock-based compensation expense represents the amount of recurring non-cash 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 charges incurred relate to charges incurred in connection with the termination of leases at locations that are no longer being used and amounts incurred in connection with the elimination of redundant positions within the organization. (d) Transaction-related / 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 http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20231025382191/en/Contacts 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 All at ICON
Highlights Net business wins in the quarter of $2,581 million; a net book to bill of 1.26 or 1.22 on a trailing twelve month basis and an increase of 10% on quarter three 2022. Closing backlog of $22.2 billion, an increase of 2.6% on quarter two 2023 and an increase of 10.0% on quarter three 2022. Quarter three revenue of $2,055.1 million representing an increase of 5.8% on prior year revenue. YTD revenue of $6,053.9 million representing a year on year increase of 4.8%. Quarter three adjusted EBITDA of $432.5 million or 21.0% of revenue, an increase of 13.9% on quarter three 2022. YTD adjusted EBITDA of $1,245.9 million or 20.6% of revenue, representing a year on year increase of 16.0%. GAAP net income attributable to the Group for the quarter of $163.7 million or $1.97 per diluted share. YTD GAAP net income of $395.9 million or $4.79 per diluted share. Quarter three adjusted net income attributable to the Group was $273.9 million or $3.30 per diluted share, an increase of 10.0% on quarter three 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $770.7 million or $9.31 per diluted share, an increase of 8.0% on the prior year adjusted earnings per share. Days sales outstanding decreased from 52 days at June 30, 2023 to 49 days at September 30, 2023. $300.0 million repayment made on Term Loan B debt. Net debt balance of $3.7 billion with net debt to adjusted EBITDA ratio of 2.3x. In October 2023, ICON acquired Philips Pharma Solutions, a leading provider of medical imaging and cardiac safety monitoring services. In October 2023, S&P Global Ratings upgraded ICON to an investment grade credit rating. Re-affirming full-year 2023 financial guidance of revenue of $8,070 - $8,210 million, representing a year over year increase of 4.3 to 6.1%, and adjusted earnings per share* in the range of $12.63 - $12.91, representing a year over year increase of 7.5 to 9.9%. Adjusted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange and transaction-related / integrated-related adjustments.
ICON plc (NASDAQ: ICLR), a world-leading healthcare intelligence and clinical research organization, today reported its financial results for the third quarter ended September 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered impressive results in the third quarter, with revenue growth of 6% year over year, as well as double digit adjusted EBITDA and adjusted earnings per share growth of 14% and 10%, respectively, over quarter three 2022. Our net book to bill improved to 1.26x in the quarter, reflective of the healthy demand for our market-leading offering across the customer segments we serve. We remain well positioned as a critical partner with new and existing customers to play a long-term role in accelerating their development portfolios.” Third Quarter 2023 Results Gross business wins in the third quarter were $3,055 million and cancellations were $474 million. This resulted in net business wins of $2,581 million and a book to bill of 1.26. Revenue for the third quarter was $2,055.1 million. This represents an increase of 5.8% on prior year revenue or 4.8% on a constant currency organic basis. GAAP net income attributable to the Group was $163.7 million resulting in $1.97 diluted earnings per share in quarter three 2023 compared to $1.94 diluted earnings per share in quarter three 2022. Adjusted net income attributable to the Group for the quarter was $273.9 million resulting in an adjusted diluted earnings per share of $3.30 compared to $3.00 per share for the third quarter 2022. Adjusted EBITDA for the third quarter was $432.5 million or 21.0% of revenue, a year-on-year increase of 13.9%. The effective tax rate on adjusted net income in quarter three was 15.2%. Cash generated from operating activities for the quarter was $341.5 million. During the quarter $29.1 million was spent on capital expenditure. At September 30, 2023, the Group had cash and cash equivalents of $313.1 million, compared to cash and cash equivalents of $270.2 million at June 30, 2023 and $609.2 million at September 30, 2022. $75 million of the revolving credit facility was drawn down in the quarter and $50 million was repaid. Additionally, $300.0 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $3.7 billion at September 30, 2023. Year to date 2023 Results Gross business wins year to date were $8,773 million and cancellations were $1,358 million. This resulted in net business wins of $7,415 million and a book to bill of 1.22. Year to date revenue was $6,053.9 million. This represents a year on year increase of 4.8% on a reported and on a constant currency basis. GAAP net income attributable to the Group year to date was $395.9 million resulting in $4.79 diluted earnings per share. Adjusted net income attributable to the Group was $770.7 million resulting in an adjusted diluted earnings per share of $9.31 compared to $8.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $1,245.9 million or 20.6% of revenue, a year on year increase of 16.0%. 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 attributable to the Group and adjusted diluted earnings per share attributable to the Group. 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 October 26, 2023 at 08:00 EDT [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, the impact of COVID-19 on our business, 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 2023 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 41,150 employees in 106 locations in 53 countries as at September 30, 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 NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Revenue $ 2,055,099 $ 1,942,427 $ 6,053,928 $ 5,779,384 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,449,136 1,375,837 4,274,222 4,146,366 Selling, general and administrative expense 185,187 166,787 572,999 552,000 Depreciation and amortization 146,032 141,861 436,217 427,285 Transaction and integration-related expenses 10,433 8,001 34,516 28,970 Restructuring — 6,197 45,390 32,890 Total costs and expenses 1,790,788 1,698,683 5,363,344 5,187,511 Income from operations 264,311 243,744 690,584 591,873 Interest income 1,273 1,434 3,294 1,727 Interest expense (83,908) (63,010) (255,665) (154,546) Income before provision for income taxes 181,676 182,168 438,213 439,054 Provision for income taxes (18,011) (21,012) (41,913) (48,552) Income before share of earnings from equity method investments 163,665 161,156 396,300 390,502 Share of losses in equity method investments — (1,002) (383) (2,643) Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Net income per Ordinary Share attributable to the Group: Basic $ 1.99 $ 1.96 $ 4.83 $ 4.76 Diluted $ 1.97 $ 1.94 $ 4.79 $ 4.70 Weighted average number of Ordinary Shares outstanding: Basic 82,215,627 81,582,375 82,001,500 81,481,686 Diluted 82,972,888 82,493,211 82,737,073 82,473,521 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) September 30, 2023 December 31, 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 313,065 $ 288,768 Available for sale investments 1,954 1,713 Accounts receivable, net of allowance for credit losses 1,850,362 1,731,388 Unbilled revenue 941,884 957,655 Other receivables 121,687 63,658 Prepayments and other current assets 150,193 137,094 Income taxes receivable 42,039 48,790 Total current assets 3,421,184 3,229,066 Non-current Assets: Property, plant and equipment, net 342,262 350,320 Goodwill 8,982,896 8,971,670 Intangible assets 3,934,673 4,278,659 Operating right-of-use assets 132,319 153,832 Other receivables 52,797 70,790 Income taxes receivable 40,481 21,380 Deferred tax asset 83,095 76,930 Investments in equity- long term 41,790 32,631 Total Assets $ 17,031,497 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 87,317 $ 81,194 Unearned revenue 1,663,183 1,507,449 Other liabilities 948,829 1,005,025 Income taxes payable 41,518 41,783 Current bank credit lines and loan facilities 130,150 55,150 Total current liabilities 2,870,997 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 3,911,522 4,599,037 Lease liabilities 121,424 131,644 Non-current other liabilities 41,661 38,260 Non-current income taxes payable 242,972 239,188 Deferred tax liability 883,887 988,585 Total Liabilities 8,072,463 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,326,976 shares issued and outstanding at September 30, 2023 and 6,688 6,649 81,723,555 shares issued and outstanding at December 31, 2022 Additional paid‑in capital 6,924,073 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (190,190) (171,538) Retained earnings 2,217,301 1,821,384 Total Shareholders' Equity 8,959,034 8,497,963 Total Liabilities and Equity $ 17,031,497 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Nine Months Ended September 30, 2023 September 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 395,917 $ 387,859 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 436,217 427,285 Impairment of long lived assets 8,845 27,727 Reduction in carrying value of operating right-of-use assets 33,979 35,238 Loss on equity method investments 383 2,643 Acquisition related gain (6,160) — Charge on cash flow hedge 3,335 — Amortization of financing costs and debt discount 12,485 13,544 Stock compensation expense 47,303 55,703 Deferred taxes (114,487) (126,620) Foreign exchange movements (7,670) (52,334) Other non-cash items 21,966 18,595 Changes in assets and liabilities: Accounts receivable (139,096) (140,760) Unbilled revenue 14,370 (221,104) Unearned revenue 158,269 28,352 Other net assets (144,760) 166,613 Net cash provided by operating activities 720,896 622,741 Cash flows from investing activities: Purchase of property, plant and equipment (87,980) (85,145) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity - long term (10,829) (1,840) Sale of available for sale investments 1,611 — Purchase of available for sale investments (1,852) — Net cash used in investing activities (104,150) (86,985) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 305,000 25,000 Repayment of bank credit lines and loan facilities (930,000) (625,000) Proceeds from exercise of equity compensation 36,517 28,967 Share issue costs (14) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (588,497) (671,036) Effect of exchange rate movements on cash (3,952) (7,775) Net increase/(decrease) in cash and cash equivalents 24,297 (143,055) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 313,065 $ 609,158 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Share of equity method investments — 1,002 383 2,643 Provision for income taxes 18,011 21,012 41,913 48,552 Net interest expense 82,635 61,576 252,371 152,819 Depreciation and amortization 146,032 141,861 436,217 427,285 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Oncacare (gain) (g) — — (6,160) — Restructuring (c) — 6,197 45,390 32,890 Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Adjusted EBITDA $ 432,535 $ 379,600 $ 1,245,904 $ 1,074,466 Adjusted net income attributable to the Group and adjusted diluted net income per Ordinary Share attributable to the Group Net income attributable to the Group $ 163,665 $ 160,154 $ 395,917 $ 387,859 Provision for income taxes 18,011 21,012 41,913 48,552 Amortization 114,573 114,991 343,868 348,118 Stock-based compensation expense (a) 16,465 16,730 47,822 54,843 Foreign currency losses (gains), net (b) (4,706) (36,933) (2,465) (61,395) Restructuring (c) — 6,197 45,390 32,890 Oncacare (gain) (g) — — (6,160) — Transaction-related / integration-related costs (d) 10,433 8,001 34,516 28,970 Transaction-related financing costs (e) 4,587 4,356 12,486 13,609 Adjusted tax expense (f) (49,100) (47,284) (142,617) (142,492) Adjusted net income attributable to the Group $ 273,928 $ 247,224 $ 770,670 $ 710,954 Diluted weighted average number of Ordinary Shares outstanding 82,972,888 82,493,211 82,737,073 82,473,521 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.30 $ 3.00 $ 9.31 $ 8.62 (a) Stock-based compensation expense represents the amount of recurring non-cash 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 charges incurred relate to charges incurred in connection with the termination of leases at locations that are no longer being used and amounts incurred in connection with the elimination of redundant positions within the organization. (d) Transaction-related / 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 http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20231025382191/en/
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 All at ICON