Syneos Health, Inc. (NASDAQ:SYNH) Q4 2018 Earnings Conference Call - Final Transcript

Mar 18, 2019 • 05:30 pm ET


Syneos Health, Inc. (NASDAQ:SYNH) Q4 2018 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Syneos Health Fourth Quarter and Full Year 2018 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Ronnie Speight, Senior Vice President of Investor Relations. Please go ahead, sir.

Ronnie Speight

Good afternoon, everyone. With me on the call today are Alistair Macdonald, our Chief Executive Officer; Jason Meggs, our Chief Financial Officer; Michelle Keefe, our President of Commercial Solutions; and Paul Colvin, our President of Clinical Solutions. In addition to the press release, a slide presentation corresponding to our prepared remarks is available on our website at

Remarks that we make about future expectations, plans, growth, anticipated financial results and prospects for the Company constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities and Litigation Reform Act of 1995, and we disclaim any obligation to update them. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including the impact of the changes to the revenue recognition accounting standard. These factors are discussed in the Risk Factors section of our Form 10-K for the year ended December 31, 2018 and our other SEC filings.

During this call, we will discuss certain non-GAAP financial measures, which exclude the effects of events and transactions we consider to be outside of our core operations. These non-GAAP measures should be considered as supplement to and not a replacement for measures prepared in accordance with GAAP. For a reconciliation of non-GAAP financial measures with the most directly comparable GAAP measures, please refer to the appendix of our presentation.

I would now like to turn the call over to Alistair Macdonald. Alistair?

Alistair Macdonald

Thank you, Ronnie. Good day, everyone, and thank you for joining us. Before we get into our results, I want to thank our board, analysts, investors, customers and employees who have supported us these past two weeks as we've moved through the 10-K filing extension process. I specifically want to take a moment to thank our internal teams for their tremendous effort, fortitude and patience as we have worked through the independent review of our revenue accounting and related internal controls. I am proud of our team's continued commitment and support, and we are pleased to have filed our 10-K today.

With that, let me turn to our earnings. Syneos Health had a strong finish to 2018 as we delivered accelerated revenue growth and improved profitability in our fourth quarter and full year results. We believe customers continue to recognize the value of our Biopharmaceutical Acceleration Model as evidenced by healthiness awards across both our clinical and commercial segments for 2018. Our integration efforts also continued to progress ahead of schedule as we achieved our updated synergy targets for the full year.

Let me begin by reviewing some key performance highlights. First, we had a strong overall sales performance, resulting in total net awards of $3.9 billion under ASC 605 and a book-to-bill ratio of 1.22