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 Second Quarter 2023 Results By: ICON plc via Business Wire July 26, 2023 at 16:15 PM EDT Highlights Net business wins in the quarter of $2,419 million; a net book to bill of 1.20 or 1.21 on a trailing twelve month basis. Closing backlog of $21.7 billion, an increase of 2.2% on quarter one 2023 or an increase of 8.5% on quarter two 2022. Quarter two revenue of $2,020.3 million representing an increase of 4.4% on prior year revenue and 4.3% on a constant currency organic basis. YTD revenue of $3,998.8 million representing a year on year increase of 4.2% and 4.7% on a constant currency basis. Quarter two adjusted EBITDA of $414.2 million or 20.5% of revenue, an increase of 16.9% on quarter two 2022. YTD adjusted EBITDA of $813.4 million or 20.3% of revenue, representing a year on year increase of 17.0%. GAAP net income attributable to the Group for the quarter of $115.6 million or $1.40 per diluted share. YTD GAAP net income of $232.3 million or $2.81 per diluted share, an increase of 1.8% on the prior year. Quarter two adjusted net income attributable to the Group was $256.9 million or $3.11 per diluted share, an increase of 8.7% on quarter two 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $496.7 million or $6.01 per diluted share, an increase of 6.9% year on year. Days sales outstanding reduced to 52 days from 54 days at March 31, 2023. $150 million repayment made on Term Loan B debt. Net debt balance of $4.0 billion with Net Debt to adjusted EBITDA ratio of 2.5x. Quarter two effective tax rate of 15.2%. Updated estimate for full year 2023 effective tax rate of 15.5%, a decrease from prior estimated effective tax rate of 16.5%. Updated full-year 2023 financial guidance for revenue by narrowing the revenue range to $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%. This is an increase of $.04 at the midpoint from our previous adjusted earnings per share guidance range. Adjusted earnings per share to exclude amortization, stock compensation, 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 second quarter ended June 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered positive results in the second quarter, with revenue growth of 4.4% year over year and excellent adjusted EBITDA performance resulting in 17% year over year growth. We are encouraged by the positive customer demand trends across our business and have confidence in our long-term growth trajectory. We now expect revenue in the range of $8,070 - $8,210 million for the full-year 2023, representing growth of 4.3 to 6.1% on a year over year basis. Given our strong margin performance, as well as a more favorable tax position, we are revising our adjusted earnings per share* range to $12.63 - $12.91, reflecting a year over year increase of 7.5 to 9.9%, an increase of $.04 at the midpoint from our previous guidance range.” Second Quarter 2023 Results Gross business wins in the second quarter were $2,860 million and cancellations were $441 million. This resulted in net business wins of $2,419 million and a book to bill of 1.20. Revenue for the second quarter was $2,020.3 million. This represents an increase of 4.4% on prior year revenue or 4.3% on a constant currency organic basis. GAAP net income attributable to the Group was $115.6 million resulting in $1.40 diluted earnings per share in quarter two 2023 compared to $1.41 diluted earnings per share in quarter two 2022. Adjusted net income attributable to the Group for the quarter was $256.9 million resulting in an adjusted diluted earnings per share of $3.11 compared to $2.86 per share for the second quarter 2022. Adjusted EBITDA for the second quarter was $414.2 million or 20.5% of revenue, a year on year increase of 16.9%. The effective tax rate in quarter two was 15.2%. Cash generated from operating activities for the quarter was $203.9 million. During the quarter $32.1 million was spent on capital expenditure. At June 30, 2023, the Group had cash and cash equivalents of $270.2 million, compared to cash and cash equivalents of $279.9 million at March 31, 2023 and $614.9 million at June 30, 2022. $50 million of the revolving credit facility was drawn down in April 2023 and $80 million was repaid in June 2023. Additionally, $150 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $4.0 billion at June 30, 2023. Year to date 2023 Results Gross business wins year to date were $5,718 million and cancellations were $884 million. This resulted in net business wins of $4,834 million and a book to bill of 1.21. Year to date GAAP revenue was $3,998.8 million. This represents a year on year increase of 4.2% or 4.7% on a constant currency basis. GAAP net income attributable to the Group year to date was $232.3 million resulting in $2.81 diluted earnings per share. Adjusted net income attributable to the Group was $496.7 million resulting in an adjusted diluted earnings per share of $6.01 compared to $5.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $813.4 million or 20.3% of revenue, a year on year increase of 17.0%. 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 July 27, 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 41,160 employees in 108 locations in 53 countries as at June 30, 2023. For further information about ICON, visit: www.iconplc.com. ICON/ICLR-F ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Revenue $ 2,020,251 $ 1,935,193 $ 3,998,829 $ 3,836,957 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,429,540 1,392,062 2,825,086 2,770,529 Selling, general and administrative expense 187,806 189,953 387,812 385,214 Depreciation and amortization 145,059 144,019 290,185 285,424 Transaction and integration-related expenses 12,701 8,884 24,083 20,969 Restructuring 35,661 22,486 45,390 26,693 Total costs and expenses 1,810,767 1,757,404 3,572,556 3,488,829 Income from operations 209,484 177,789 426,273 348,128 Interest income 949 166 2,021 293 Interest expense (85,206) (47,111) (171,757) (91,536) Income before provision for income taxes 125,227 130,844 256,537 256,885 Provision for income taxes (9,629) (14,254) (23,902) (27,540) Income before share of earnings from equity method investments 115,598 116,590 232,635 229,345 Share of equity method investments — (856) (383) (1,641) Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Net income per Ordinary Share attributable to the Group: Basic $ 1.41 $ 1.42 $ 2.84 $ 2.80 Diluted $ 1.40 $ 1.41 $ 2.81 $ 2.76 Weighted average number of Ordinary Shares outstanding: Basic 81,999,746 81,398,071 81,892,662 81,430,507 Diluted 82,627,933 82,312,946 82,617,391 82,462,842 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) June 30, 2023 December, 31 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 270,176 $ 288,768 Available for sale investments 1,653 1,713 Accounts receivable, net of allowance for credit losses 1,759,111 1,731,388 Unbilled revenue 985,034 957,655 Other receivables 129,101 63,658 Prepayments and other current assets 152,774 137,094 Income taxes receivable 70,021 48,790 Total current assets 3,367,870 3,229,066 Non-current Assets: Property, plant and equipment, net 346,521 350,320 Goodwill 8,993,583 8,971,670 Intangible assets 4,049,793 4,278,659 Operating right-of-use assets 144,514 153,832 Other receivables 64,140 70,790 Income taxes receivable 25,169 21,380 Deferred tax asset 80,772 76,930 Investments in equity- long term 35,298 32,631 Total Assets $ 17,107,660 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 46,920 $ 81,194 Unearned revenue 1,573,311 1,507,449 Other liabilities 994,883 1,005,025 Income taxes payable 39,885 41,783 Current bank credit lines and loan facilities 105,150 55,150 Total current liabilities 2,760,149 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 4,206,936 4,599,037 Lease liabilities 129,079 131,644 Non-current other liabilities 39,438 38,260 Non-current income taxes payable 241,410 239,188 Deferred tax liability 934,208 988,585 Total Liabilities 8,311,220 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,151,049 shares issued and outstanding at June 30, 2023 and 81,723,555 shares issued and outstanding at December 31, 2022. 6,676 6,649 Additional paid‑in capital 6,891,494 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (156,528) (171,538) Retained earnings 2,053,636 1,821,384 Total Shareholders' Equity 8,796,440 8,497,963 Total Liabilities and Equity $ 17,107,660 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Six Months Ended June 30, 2023 June 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 232,252 $ 227,704 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 290,185 285,424 Impairment of long lived assets 8,613 20,749 Reduction in carrying value of operating right-of-use assets 23,607 23,570 Loss on equity method investments 383 1,641 Acquisition related gain (6,160) — Charge on cash flow hedge 3,646 — Amortization of financing costs and debt discount 7,899 9,188 Stock compensation expense 31,357 38,186 Deferred taxes (59,177) (75,265) Foreign exchange movements (3,345) (37,421) Other non-cash items 18,202 9,159 Changes in assets and liabilities: Accounts receivable (40,675) (41,032) Unbilled revenue (27,210) (33,187) Unearned revenue 65,266 (176,904) Other net assets (165,462) 157,154 Net cash provided by operating activities 379,381 408,966 Cash flows from investing activities: Purchase of property, plant and equipment (58,880) (47,840) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity (4,733) (799) Sale of available for sale investments 482 — Purchase of available for sale investments (422) — Net cash used in investing activities (68,653) (48,639) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 230,000 25,000 Repayment of bank credit lines and loan facilities (580,000) (425,000) Proceeds from exercise of equity compensation 20,177 15,140 Share issue costs (9) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (329,832) (484,863) Effect of exchange rate movements on cash 512 (12,759) Net decrease in cash and cash equivalents (18,592) (137,295) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 270,176 $ 614,918 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Share of equity method investments — 856 383 1,641 Provision for income taxes 9,629 14,254 23,902 27,540 Net interest expense 84,257 46,945 169,736 91,243 Depreciation and amortization 145,059 144,019 290,185 285,424 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted EBITDA $ 414,246 $ 354,254 $ 813,369 $ 694,910 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 $ 115,598 $ 115,734 $ 232,252 $ 227,704 Provision for income taxes 9,629 14,254 23,902 27,540 Amortization 114,617 118,325 229,295 233,127 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Transaction-related financing costs (e) 3,401 3,504 7,899 9,255 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted tax expense (g) (46,048) (48,465) (93,517) (95,238) Adjusted net income attributable to the Group $ 256,900 $ 235,798 $ 496,742 $ 463,746 Diluted weighted average number of Ordinary Shares outstanding 82,627,933 82,312,946 82,617,391 82,462,842 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.11 $ 2.86 $ 6.01 $ 5.62 (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 or settlement 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) 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. (g) Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate. http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20230726452737/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. 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ICON Reports Second Quarter 2023 Results By: ICON plc via Business Wire July 26, 2023 at 16:15 PM EDT Highlights Net business wins in the quarter of $2,419 million; a net book to bill of 1.20 or 1.21 on a trailing twelve month basis. Closing backlog of $21.7 billion, an increase of 2.2% on quarter one 2023 or an increase of 8.5% on quarter two 2022. Quarter two revenue of $2,020.3 million representing an increase of 4.4% on prior year revenue and 4.3% on a constant currency organic basis. YTD revenue of $3,998.8 million representing a year on year increase of 4.2% and 4.7% on a constant currency basis. Quarter two adjusted EBITDA of $414.2 million or 20.5% of revenue, an increase of 16.9% on quarter two 2022. YTD adjusted EBITDA of $813.4 million or 20.3% of revenue, representing a year on year increase of 17.0%. GAAP net income attributable to the Group for the quarter of $115.6 million or $1.40 per diluted share. YTD GAAP net income of $232.3 million or $2.81 per diluted share, an increase of 1.8% on the prior year. Quarter two adjusted net income attributable to the Group was $256.9 million or $3.11 per diluted share, an increase of 8.7% on quarter two 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $496.7 million or $6.01 per diluted share, an increase of 6.9% year on year. Days sales outstanding reduced to 52 days from 54 days at March 31, 2023. $150 million repayment made on Term Loan B debt. Net debt balance of $4.0 billion with Net Debt to adjusted EBITDA ratio of 2.5x. Quarter two effective tax rate of 15.2%. Updated estimate for full year 2023 effective tax rate of 15.5%, a decrease from prior estimated effective tax rate of 16.5%. Updated full-year 2023 financial guidance for revenue by narrowing the revenue range to $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%. This is an increase of $.04 at the midpoint from our previous adjusted earnings per share guidance range. Adjusted earnings per share to exclude amortization, stock compensation, 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 second quarter ended June 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered positive results in the second quarter, with revenue growth of 4.4% year over year and excellent adjusted EBITDA performance resulting in 17% year over year growth. We are encouraged by the positive customer demand trends across our business and have confidence in our long-term growth trajectory. We now expect revenue in the range of $8,070 - $8,210 million for the full-year 2023, representing growth of 4.3 to 6.1% on a year over year basis. Given our strong margin performance, as well as a more favorable tax position, we are revising our adjusted earnings per share* range to $12.63 - $12.91, reflecting a year over year increase of 7.5 to 9.9%, an increase of $.04 at the midpoint from our previous guidance range.” Second Quarter 2023 Results Gross business wins in the second quarter were $2,860 million and cancellations were $441 million. This resulted in net business wins of $2,419 million and a book to bill of 1.20. Revenue for the second quarter was $2,020.3 million. This represents an increase of 4.4% on prior year revenue or 4.3% on a constant currency organic basis. GAAP net income attributable to the Group was $115.6 million resulting in $1.40 diluted earnings per share in quarter two 2023 compared to $1.41 diluted earnings per share in quarter two 2022. Adjusted net income attributable to the Group for the quarter was $256.9 million resulting in an adjusted diluted earnings per share of $3.11 compared to $2.86 per share for the second quarter 2022. Adjusted EBITDA for the second quarter was $414.2 million or 20.5% of revenue, a year on year increase of 16.9%. The effective tax rate in quarter two was 15.2%. Cash generated from operating activities for the quarter was $203.9 million. During the quarter $32.1 million was spent on capital expenditure. At June 30, 2023, the Group had cash and cash equivalents of $270.2 million, compared to cash and cash equivalents of $279.9 million at March 31, 2023 and $614.9 million at June 30, 2022. $50 million of the revolving credit facility was drawn down in April 2023 and $80 million was repaid in June 2023. Additionally, $150 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $4.0 billion at June 30, 2023. Year to date 2023 Results Gross business wins year to date were $5,718 million and cancellations were $884 million. This resulted in net business wins of $4,834 million and a book to bill of 1.21. Year to date GAAP revenue was $3,998.8 million. This represents a year on year increase of 4.2% or 4.7% on a constant currency basis. GAAP net income attributable to the Group year to date was $232.3 million resulting in $2.81 diluted earnings per share. Adjusted net income attributable to the Group was $496.7 million resulting in an adjusted diluted earnings per share of $6.01 compared to $5.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $813.4 million or 20.3% of revenue, a year on year increase of 17.0%. 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 July 27, 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 41,160 employees in 108 locations in 53 countries as at June 30, 2023. For further information about ICON, visit: www.iconplc.com. ICON/ICLR-F ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Revenue $ 2,020,251 $ 1,935,193 $ 3,998,829 $ 3,836,957 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,429,540 1,392,062 2,825,086 2,770,529 Selling, general and administrative expense 187,806 189,953 387,812 385,214 Depreciation and amortization 145,059 144,019 290,185 285,424 Transaction and integration-related expenses 12,701 8,884 24,083 20,969 Restructuring 35,661 22,486 45,390 26,693 Total costs and expenses 1,810,767 1,757,404 3,572,556 3,488,829 Income from operations 209,484 177,789 426,273 348,128 Interest income 949 166 2,021 293 Interest expense (85,206) (47,111) (171,757) (91,536) Income before provision for income taxes 125,227 130,844 256,537 256,885 Provision for income taxes (9,629) (14,254) (23,902) (27,540) Income before share of earnings from equity method investments 115,598 116,590 232,635 229,345 Share of equity method investments — (856) (383) (1,641) Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Net income per Ordinary Share attributable to the Group: Basic $ 1.41 $ 1.42 $ 2.84 $ 2.80 Diluted $ 1.40 $ 1.41 $ 2.81 $ 2.76 Weighted average number of Ordinary Shares outstanding: Basic 81,999,746 81,398,071 81,892,662 81,430,507 Diluted 82,627,933 82,312,946 82,617,391 82,462,842 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) June 30, 2023 December, 31 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 270,176 $ 288,768 Available for sale investments 1,653 1,713 Accounts receivable, net of allowance for credit losses 1,759,111 1,731,388 Unbilled revenue 985,034 957,655 Other receivables 129,101 63,658 Prepayments and other current assets 152,774 137,094 Income taxes receivable 70,021 48,790 Total current assets 3,367,870 3,229,066 Non-current Assets: Property, plant and equipment, net 346,521 350,320 Goodwill 8,993,583 8,971,670 Intangible assets 4,049,793 4,278,659 Operating right-of-use assets 144,514 153,832 Other receivables 64,140 70,790 Income taxes receivable 25,169 21,380 Deferred tax asset 80,772 76,930 Investments in equity- long term 35,298 32,631 Total Assets $ 17,107,660 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 46,920 $ 81,194 Unearned revenue 1,573,311 1,507,449 Other liabilities 994,883 1,005,025 Income taxes payable 39,885 41,783 Current bank credit lines and loan facilities 105,150 55,150 Total current liabilities 2,760,149 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 4,206,936 4,599,037 Lease liabilities 129,079 131,644 Non-current other liabilities 39,438 38,260 Non-current income taxes payable 241,410 239,188 Deferred tax liability 934,208 988,585 Total Liabilities 8,311,220 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,151,049 shares issued and outstanding at June 30, 2023 and 81,723,555 shares issued and outstanding at December 31, 2022. 6,676 6,649 Additional paid‑in capital 6,891,494 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (156,528) (171,538) Retained earnings 2,053,636 1,821,384 Total Shareholders' Equity 8,796,440 8,497,963 Total Liabilities and Equity $ 17,107,660 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Six Months Ended June 30, 2023 June 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 232,252 $ 227,704 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 290,185 285,424 Impairment of long lived assets 8,613 20,749 Reduction in carrying value of operating right-of-use assets 23,607 23,570 Loss on equity method investments 383 1,641 Acquisition related gain (6,160) — Charge on cash flow hedge 3,646 — Amortization of financing costs and debt discount 7,899 9,188 Stock compensation expense 31,357 38,186 Deferred taxes (59,177) (75,265) Foreign exchange movements (3,345) (37,421) Other non-cash items 18,202 9,159 Changes in assets and liabilities: Accounts receivable (40,675) (41,032) Unbilled revenue (27,210) (33,187) Unearned revenue 65,266 (176,904) Other net assets (165,462) 157,154 Net cash provided by operating activities 379,381 408,966 Cash flows from investing activities: Purchase of property, plant and equipment (58,880) (47,840) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity (4,733) (799) Sale of available for sale investments 482 — Purchase of available for sale investments (422) — Net cash used in investing activities (68,653) (48,639) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 230,000 25,000 Repayment of bank credit lines and loan facilities (580,000) (425,000) Proceeds from exercise of equity compensation 20,177 15,140 Share issue costs (9) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (329,832) (484,863) Effect of exchange rate movements on cash 512 (12,759) Net decrease in cash and cash equivalents (18,592) (137,295) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 270,176 $ 614,918 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Share of equity method investments — 856 383 1,641 Provision for income taxes 9,629 14,254 23,902 27,540 Net interest expense 84,257 46,945 169,736 91,243 Depreciation and amortization 145,059 144,019 290,185 285,424 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted EBITDA $ 414,246 $ 354,254 $ 813,369 $ 694,910 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 $ 115,598 $ 115,734 $ 232,252 $ 227,704 Provision for income taxes 9,629 14,254 23,902 27,540 Amortization 114,617 118,325 229,295 233,127 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Transaction-related financing costs (e) 3,401 3,504 7,899 9,255 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted tax expense (g) (46,048) (48,465) (93,517) (95,238) Adjusted net income attributable to the Group $ 256,900 $ 235,798 $ 496,742 $ 463,746 Diluted weighted average number of Ordinary Shares outstanding 82,627,933 82,312,946 82,617,391 82,462,842 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.11 $ 2.86 $ 6.01 $ 5.62 (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 or settlement 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) 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. (g) Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate. http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20230726452737/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 $2,419 million; a net book to bill of 1.20 or 1.21 on a trailing twelve month basis. Closing backlog of $21.7 billion, an increase of 2.2% on quarter one 2023 or an increase of 8.5% on quarter two 2022. Quarter two revenue of $2,020.3 million representing an increase of 4.4% on prior year revenue and 4.3% on a constant currency organic basis. YTD revenue of $3,998.8 million representing a year on year increase of 4.2% and 4.7% on a constant currency basis. Quarter two adjusted EBITDA of $414.2 million or 20.5% of revenue, an increase of 16.9% on quarter two 2022. YTD adjusted EBITDA of $813.4 million or 20.3% of revenue, representing a year on year increase of 17.0%. GAAP net income attributable to the Group for the quarter of $115.6 million or $1.40 per diluted share. YTD GAAP net income of $232.3 million or $2.81 per diluted share, an increase of 1.8% on the prior year. Quarter two adjusted net income attributable to the Group was $256.9 million or $3.11 per diluted share, an increase of 8.7% on quarter two 2022 adjusted earnings per share. Year to date adjusted net income attributable to the Group of $496.7 million or $6.01 per diluted share, an increase of 6.9% year on year. Days sales outstanding reduced to 52 days from 54 days at March 31, 2023. $150 million repayment made on Term Loan B debt. Net debt balance of $4.0 billion with Net Debt to adjusted EBITDA ratio of 2.5x. Quarter two effective tax rate of 15.2%. Updated estimate for full year 2023 effective tax rate of 15.5%, a decrease from prior estimated effective tax rate of 16.5%. Updated full-year 2023 financial guidance for revenue by narrowing the revenue range to $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%. This is an increase of $.04 at the midpoint from our previous adjusted earnings per share guidance range. Adjusted earnings per share to exclude amortization, stock compensation, 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 second quarter ended June 30, 2023. CEO, Dr. Steve Cutler commented, “ICON delivered positive results in the second quarter, with revenue growth of 4.4% year over year and excellent adjusted EBITDA performance resulting in 17% year over year growth. We are encouraged by the positive customer demand trends across our business and have confidence in our long-term growth trajectory. We now expect revenue in the range of $8,070 - $8,210 million for the full-year 2023, representing growth of 4.3 to 6.1% on a year over year basis. Given our strong margin performance, as well as a more favorable tax position, we are revising our adjusted earnings per share* range to $12.63 - $12.91, reflecting a year over year increase of 7.5 to 9.9%, an increase of $.04 at the midpoint from our previous guidance range.” Second Quarter 2023 Results Gross business wins in the second quarter were $2,860 million and cancellations were $441 million. This resulted in net business wins of $2,419 million and a book to bill of 1.20. Revenue for the second quarter was $2,020.3 million. This represents an increase of 4.4% on prior year revenue or 4.3% on a constant currency organic basis. GAAP net income attributable to the Group was $115.6 million resulting in $1.40 diluted earnings per share in quarter two 2023 compared to $1.41 diluted earnings per share in quarter two 2022. Adjusted net income attributable to the Group for the quarter was $256.9 million resulting in an adjusted diluted earnings per share of $3.11 compared to $2.86 per share for the second quarter 2022. Adjusted EBITDA for the second quarter was $414.2 million or 20.5% of revenue, a year on year increase of 16.9%. The effective tax rate in quarter two was 15.2%. Cash generated from operating activities for the quarter was $203.9 million. During the quarter $32.1 million was spent on capital expenditure. At June 30, 2023, the Group had cash and cash equivalents of $270.2 million, compared to cash and cash equivalents of $279.9 million at March 31, 2023 and $614.9 million at June 30, 2022. $50 million of the revolving credit facility was drawn down in April 2023 and $80 million was repaid in June 2023. Additionally, $150 million of Term Loan B payments were made during the quarter resulting in a net indebtedness of $4.0 billion at June 30, 2023. Year to date 2023 Results Gross business wins year to date were $5,718 million and cancellations were $884 million. This resulted in net business wins of $4,834 million and a book to bill of 1.21. Year to date GAAP revenue was $3,998.8 million. This represents a year on year increase of 4.2% or 4.7% on a constant currency basis. GAAP net income attributable to the Group year to date was $232.3 million resulting in $2.81 diluted earnings per share. Adjusted net income attributable to the Group was $496.7 million resulting in an adjusted diluted earnings per share of $6.01 compared to $5.62 per share for the equivalent prior year period. Adjusted EBITDA year to date was $813.4 million or 20.3% of revenue, a year on year increase of 17.0%. 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 July 27, 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 41,160 employees in 108 locations in 53 countries as at June 30, 2023. For further information about ICON, visit: www.iconplc.com. ICON/ICLR-F ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Revenue $ 2,020,251 $ 1,935,193 $ 3,998,829 $ 3,836,957 Costs and expenses: Direct costs (excluding depreciation and amortization) 1,429,540 1,392,062 2,825,086 2,770,529 Selling, general and administrative expense 187,806 189,953 387,812 385,214 Depreciation and amortization 145,059 144,019 290,185 285,424 Transaction and integration-related expenses 12,701 8,884 24,083 20,969 Restructuring 35,661 22,486 45,390 26,693 Total costs and expenses 1,810,767 1,757,404 3,572,556 3,488,829 Income from operations 209,484 177,789 426,273 348,128 Interest income 949 166 2,021 293 Interest expense (85,206) (47,111) (171,757) (91,536) Income before provision for income taxes 125,227 130,844 256,537 256,885 Provision for income taxes (9,629) (14,254) (23,902) (27,540) Income before share of earnings from equity method investments 115,598 116,590 232,635 229,345 Share of equity method investments — (856) (383) (1,641) Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Net income per Ordinary Share attributable to the Group: Basic $ 1.41 $ 1.42 $ 2.84 $ 2.80 Diluted $ 1.40 $ 1.41 $ 2.81 $ 2.76 Weighted average number of Ordinary Shares outstanding: Basic 81,999,746 81,398,071 81,892,662 81,430,507 Diluted 82,627,933 82,312,946 82,617,391 82,462,842 ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2023 AND DECEMBER 31, 2022 (Unaudited) (Audited) June 30, 2023 December, 31 2022 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 270,176 $ 288,768 Available for sale investments 1,653 1,713 Accounts receivable, net of allowance for credit losses 1,759,111 1,731,388 Unbilled revenue 985,034 957,655 Other receivables 129,101 63,658 Prepayments and other current assets 152,774 137,094 Income taxes receivable 70,021 48,790 Total current assets 3,367,870 3,229,066 Non-current Assets: Property, plant and equipment, net 346,521 350,320 Goodwill 8,993,583 8,971,670 Intangible assets 4,049,793 4,278,659 Operating right-of-use assets 144,514 153,832 Other receivables 64,140 70,790 Income taxes receivable 25,169 21,380 Deferred tax asset 80,772 76,930 Investments in equity- long term 35,298 32,631 Total Assets $ 17,107,660 $ 17,185,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 46,920 $ 81,194 Unearned revenue 1,573,311 1,507,449 Other liabilities 994,883 1,005,025 Income taxes payable 39,885 41,783 Current bank credit lines and loan facilities 105,150 55,150 Total current liabilities 2,760,149 2,690,601 Non-current Liabilities: Non-current bank credit lines and loan facilities 4,206,936 4,599,037 Lease liabilities 129,079 131,644 Non-current other liabilities 39,438 38,260 Non-current income taxes payable 241,410 239,188 Deferred tax liability 934,208 988,585 Total Liabilities 8,311,220 8,687,315 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 82,151,049 shares issued and outstanding at June 30, 2023 and 81,723,555 shares issued and outstanding at December 31, 2022. 6,676 6,649 Additional paid‑in capital 6,891,494 6,840,306 Other undenominated capital 1,162 1,162 Accumulated other comprehensive income (156,528) (171,538) Retained earnings 2,053,636 1,821,384 Total Shareholders' Equity 8,796,440 8,497,963 Total Liabilities and Equity $ 17,107,660 $ 17,185,278 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Six Months Ended June 30, 2023 June 30, 2022 (in thousands) Cash flows from operating activities: Net income $ 232,252 $ 227,704 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 290,185 285,424 Impairment of long lived assets 8,613 20,749 Reduction in carrying value of operating right-of-use assets 23,607 23,570 Loss on equity method investments 383 1,641 Acquisition related gain (6,160) — Charge on cash flow hedge 3,646 — Amortization of financing costs and debt discount 7,899 9,188 Stock compensation expense 31,357 38,186 Deferred taxes (59,177) (75,265) Foreign exchange movements (3,345) (37,421) Other non-cash items 18,202 9,159 Changes in assets and liabilities: Accounts receivable (40,675) (41,032) Unbilled revenue (27,210) (33,187) Unearned revenue 65,266 (176,904) Other net assets (165,462) 157,154 Net cash provided by operating activities 379,381 408,966 Cash flows from investing activities: Purchase of property, plant and equipment (58,880) (47,840) Purchase of subsidiary undertakings (5,100) — Purchase of investments in equity (4,733) (799) Sale of available for sale investments 482 — Purchase of available for sale investments (422) — Net cash used in investing activities (68,653) (48,639) Cash flows from financing activities: Drawdown of bank credit lines and loan facilities 230,000 25,000 Repayment of bank credit lines and loan facilities (580,000) (425,000) Proceeds from exercise of equity compensation 20,177 15,140 Share issue costs (9) (3) Repurchase of ordinary shares — (99,983) Share repurchase costs — (17) Net cash used in financing activities (329,832) (484,863) Effect of exchange rate movements on cash 512 (12,759) Net decrease in cash and cash equivalents (18,592) (137,295) Cash and cash equivalents at beginning of period 288,768 752,213 Cash and cash equivalents at end of period $ 270,176 $ 614,918 ICON plc RECONCILIATION OF NON-GAAP MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND JUNE 30, 2022 (UNAUDITED) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands except share and per share data) Adjusted EBITDA Net income attributable to the Group $ 115,598 $ 115,734 $ 232,252 $ 227,704 Share of equity method investments — 856 383 1,641 Provision for income taxes 9,629 14,254 23,902 27,540 Net interest expense 84,257 46,945 169,736 91,243 Depreciation and amortization 145,059 144,019 290,185 285,424 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted EBITDA $ 414,246 $ 354,254 $ 813,369 $ 694,910 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 $ 115,598 $ 115,734 $ 232,252 $ 227,704 Provision for income taxes 9,629 14,254 23,902 27,540 Amortization 114,617 118,325 229,295 233,127 Stock-based compensation expense (a) 16,598 18,893 31,357 38,113 Foreign currency losses (gains), net (b) 903 (17,817) 2,241 (24,417) Restructuring (c) 35,661 22,486 45,390 26,693 Transaction-related / integration-related costs (d) 12,701 8,884 24,083 20,969 Transaction-related financing costs (e) 3,401 3,504 7,899 9,255 Oncacare (gain) (f) (6,160) — (6,160) — Adjusted tax expense (g) (46,048) (48,465) (93,517) (95,238) Adjusted net income attributable to the Group $ 256,900 $ 235,798 $ 496,742 $ 463,746 Diluted weighted average number of Ordinary Shares outstanding 82,627,933 82,312,946 82,617,391 82,462,842 Adjusted diluted net income per Ordinary Share attributable to the Group $ 3.11 $ 2.86 $ 6.01 $ 5.62 (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 or settlement 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) 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. (g) Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate. http://www.iconplc.com View source version on businesswire.com: https://www.businesswire.com/news/home/20230726452737/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