PRA Health Sciences, Inc. (NASDAQ:PRAH) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 09:00 am ET


PRA Health Sciences, Inc. (NASDAQ:PRAH) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to the PRA Health Sciences First Quarter 2018 Earnings Conference Call. At this time all participants are in a listen only-mode. Later we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Mike Bonello, Senior Vice President and Corporate Controller. Sir, you may begin.

Mike Bonello

Thank you. Good morning and thank you for joining us for the PRA Health Sciences first quarter of 2018 earnings teleconference. Today Colin Shannon, our Chief Executive Officer; (technical difficulty) (ph) Linda Baddour, Chief Financial Officer

will discuss our first quarter financial results. Following our prepared remarks, we'll be available for questions. In addition to our press release, an investor supplement with additional financial information is available in the Investor Relations portion of our website.

Before we begin, I'd like to remind you that our remarks and responses during this teleconference may include forward-looking statements. Actual results may differ materially from the stated or implied by forward-looking statements due to risks and uncertainties associated with our business, which are discussed in the risk factors section of our Form 10-K filed with the SEC on February 22, 2018. Our risk factors may be updated from time-to-time in our filings with SEC. Please note that we assume no obligation to update any forward-looking statements.

Certain financial measures we will discuss on this call are non-GAAP financial measures. We believe that providing these measures helps investors gain a more helpful and complete understanding of our results and is consistent with how management views our financial results. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure calculated and presented in accordance with GAAP are available in the earnings press release and investor supplement included in the Investor Relation portion of our website.

I would now like to turn the call over to our CEO, Colin Shannon.

Colin Shannon

Thank you, Mike. Good morning. I'd like to thank you all, for joining the PRA Health Sciences conference call covering our first quarter of 2018 financial results. We're off to solid start and our first quarter results are in line with our expectations as we produce double-digit growth or revenue, adjusted net income and net new business. Revenue is approximately $702 million for the quarter which represents an increase of approximately 44% year-over-year at actual foreign exchange rates and 41% on a constant currency basis.

Organic revenue growth which excludes the impact of the adoption of ASC 606 and our 2017 acquisitions was approximately 18% year-over-year at actual foreign exchange rates and 15% on a constant currency basis. Adjusted net income for the quarter was approximately $56 million, an increase of approximately 39% versus the first quarter of 2017. Adjusted net income per diluted share was $0.85, a 37% increase versus first quarter of 2017.

Net new business increased approximately 15% when compared to the first quarter of 2017 with a record level of $650