ICON Public Limited Company (NASDAQ:ICLR) Q4 2017 Earnings Conference Call - Preliminary Transcript

Oct 26, 2017 • 10:00 am ET


ICON Public Limited Company (NASDAQ:ICLR) Q4 2017 Earnings Conference Call - Preliminary Transcript


Loading Event

Loading Transcript


Good day and welcome to the ICON plc Q4 and Full-Year 2017 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jonathan Curtain. Please go ahead. Jonathan Curtain Thank you, Paul.

Jonathan Curtain

Thank you, Paul.Good day, ladies and gentlemen. Thank you for joining us on this call covering the quarter and full-year ended December 31, 2017. Also on the call today, we have our CEO, Dr. Steve Cutler; and our CFO, Mr. Brendan Brennan. I would like to note that this call is webcast and that there are slides available to download on our website to accompany today's call. Certain statements in today's call will be forward-looking statements. Actual results may differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with the Company's business, and listeners are cautioned that forward-looking statements are not guarantees of future performance.

The Company's filings with the Securities and Exchange Commission discusses the risks and uncertainties associated with the Company's business. This presentation includes selected non-GAAP financial measures. For a presentation of the most directly comparable GAAP financial measures, please refer to the press release statements headed Consolidated Income Statements Unaudited U.S. GAAP. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, we believe certain non-GAAP information is more useful to investors for historical comparison purposes.

We'll be limiting the call today to one hour and will therefore ask participants to keep their questions to one each with an opportunity to ask one related follow-up question. I would now like to hand over the call to our CFO, Mr. Brendan Brennan.

Brendan Brennan

Thank you, Jonathan. In quarter four, we achieved a new high of $718 million of gross business awards incurred $119 million of cancellations. As a result, net awards in the quarter were a record $599 million and net book to bill of 1.32 times. Full-year gross business awards were $2.6 billion cancellations of $300 million results of net awards of $2.3 billion and a net book to bill of 1.29 times. Year-over-year backlog has grown by 17% to $4.93 billion. Our top customer now represents 11% of ICON's backlog down from 15% at the end of quarter four of last year. Net revenue in quarter four was $455 million. This represents year-on-year growth of 4.6% or 2.3% on constant currency basis.

During 2017 we transition well to the bococizumab cancellation and what is the year-on-year group revenue on a constant dollar organic basis was 3.9% lower outside our top account year-on-year constant dollar organic growth was close to 10%. For the full-year 2017 net revenue grew 5.5% to $1.758 billion. This represents 4.8% constant currency growth and remind flat on a CEO basis. We introduced guidance on the ASC 606 on this earnings call, this new treatment will have an effect on the timing of revenue recognition. We estimated less than 1% of revenue in 2018. Accordingly, we are satisfied that the