ICON reports net revenues of $227.4M for fourth-quarter 2009

ICON (NASDAQ:ICLR) (ISIN:IE0005711209), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the fourth quarter ended December 31, 2009.

Net revenues for the quarter were $227.4 million, representing a 3% increase over net revenues of $220.1 million for the comparative quarter last year.

Income from operations increased by 12% to $29.6 million, compared to $26.5 million for the same quarter last year. Operating margin increased to 13.0% from 12.0%. Net income was $23.9 million, compared with $21.0 million last year an increase of 14%. Diluted EPS of 40 cents per share represented an increase of 14% over 35 cents per share last year.

Full year net revenues were $887.6 million, representing a 3% increase over last year. Income from operations was $116.3 million or 13.1% of revenue, compared to $99.5 million or 11.5% last year; a 17% increase. Net income also increased 17% to $91.6 million compared with $78.1 million last year. Diluted EPS of $1.53 per share represented an increase of 18% over $1.30 last year.

After one time restructuring charges, net of tax credits, of $4.2 million in Q2 and a release of restructuring charges plus exceptional tax credits of $7.0 million in Q4, US GAAP income from operations was $107.5 million, compared to $99.5 million for 2008. US GAAP net income was $94.3 million or $1.57 per share on a diluted basis, compared with $78.1 million or $1.30 per share last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 33 days at December 31, 2009, on a like for like basis compared to 69 days at December 31, 2008.

For the quarter ended December 31, 2009, cash provided by operating activities was $56.7 million and capital expenditure was $7.8 million. Full year 2009 cash flow from operating activities was $255 million and capital expenditure was $33.8 million. As a result, the company’s net cash, amounted to $194 million at December 31, 2009, compared to $4.3 million of net debt at December 31, 2008.

Commenting on the results, CEO Peter Gray said “We are pleased with our performance in what has been a challenging year. Revenues increased by 3%, margins improved significantly from 11.5% to 13.1% and EPS was up 18%. With our backlog at $1.84bn and with a strong balance sheet, we have entered 2010 in a good position. While external factors are challenging, and many governments are endeavouring to reduce healthcare costs, including pharmaceutical prices, we remain positive, though cautious, as 2010 commences. As a result we are issuing revenue guidance for 2010 in the range of $890 - $940 million and EPS guidance in the range of $1.44 - $1.60.”