ICON Public : plc Q4 2019 Presentation.pdf

ICON

Q4 and Full Year Results

Period Ended December 31st, 2019

Dr. Steve Cutler, CEO

Brendan Brennan, CFO

Jonathan Curtain, VP Corporate Finance & Investor Relations

Accountability & Delivery | Collaboration | Partnership | Integrity

Forward Looking Statement

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 discuss 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 statement headed Condensed Consolidated Statements of Operations (US GAAP) (Unaudited). 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.

Backlog Metrics

+11.4%

7.7

7.9

8.2

8.48.6

$bn	8.8%	8.8%	8.7%	8.7%

Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019
			Closing Backlog		Burn rate

Revenue (quarterly)

+6.8%*

679675

$m

695

710

725

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

* +7.5% Constant Currency year over year growth

Revenue (annual)

+8.1%*

2,806

2,596

$m

FY 2018

FY 2019

* +9.6% Constant Currency year over year growth

Client Concentration

				Percentage of Revenue
FY 2018		13.6%			14.9%		17.8%
		25.9%
FY 2019		12.5%		25.1%		12.4%	18.9%				Largest Customer
						Top 2-5 Customers
												Top 6-10 Customers
Q3 2019		11.4%		24.9%		12.8%	18.9%
						Top 11-25 Customers
Q4 2019		11.0%		26.8%		14.2%	18.6%
	0%	20%	40%	60%	80%

Gross Margin (quarterly)

Percentage of Revenue

679675

695710725

$m	29.4%	29.5%	29.4%	29.7%	29.9%	+50 bps YoY

Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019
			Revenue		Gross Margin %

Gross Margin (annual)

		Percentage of Revenue
	2,596	2,806
$m	30.0%	29.6%

FY 2018		FY 2019
		Revenue		Gross Margin %

SG&A (quarterly)

Percentage of Revenue

679675

$m

695710725

12.2%

12.1%

12.0%

12.0%

11.9%

-30 bps YoY

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Revenue SG&A %

SG&A (annual)

Percentage of Revenue

2,806

2,596

$m

12.6%

12.0%

-60 bps YoY

FY 2018

FY 2019

Revenue SG&A %

Operating Margin (quarterly)

Percentage of Revenue

679675

$m

695710725

15.0%

15.1%

15.3%

15.5%

15.9%

+90 bps YoY

Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019
			Revenue		Operating Margin %

Operating Margin (annual)

Percentage of Revenue

2,806

2,596

$m

14.9%*

15.4%

+50 bps YoY

FY 2018		FY 2019
		Revenue		Operating Margin %

* Before non-recurring charges

Earnings per Share attributable to the Group (quarterly)

+12.8%

169

162 163

¢

183

174

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Earnings per Share attributable to the Group (annual)

+13.0%

6.88

6.09*

$

FY 2018

FY 2019

* Before non-recurring charges

Balance Sheet

	Q4 2019	Q3 2019	Q4 2018
	31-Dec-19	30-Sep-19	31-Dec-18
DSO*	54	56	57
Capital Expenditure	$18.7m	$13.7m	$20.0m
Cash from Operating Activities	$134.4m	$160.7m	$60.9m
Net Cash Balance	$220.3m	$121.7m	$106.5m

* Calculated on a comparative non-GAAP basis

Share Repurchases

	Q1 2019	Q2 2019	Q3 2019	Q4 2019	YTD 2019
Number of shares	200,253	295,982	503,765	35,100	1,035,100
Average price per share ($)	124.84	135.48	151.80	152.66	141.95
Share repurchases ($'m)	$25.0m	$40.1m	$76.5m	$5.4m	$146.9m

Q4 Year-on-Year Comparison Summary

	Q4 2019	Q4 2018
Revenue	$725m	$679m
Gross Margin	29.9%	29.4%
SG&A (percentage of revenue)	11.9%	12.2%
Operating Margin	15.9%	15.0%
Net Income Margin attributable to Group	13.6%	13.0%
EPS attributable to Group	183c	162c

Variance

6.8%

+ 7.5% constant currency basis

50 bps

30 bps

90 bps

60 bps

12.8%

FY Year-on-Year Comparison Summary

	FY 2019	FY 2018
Revenue	$2,806m	$2,596m
Gross Margin	29.6%	30.0%
SG&A (percentage of revenue)	12.0%	12.6%
Operating Margin	15.4%	14.9%*
Net Income Margin attributable to Group	13.3%	12.9%*
EPS attributable to Group	$6.88	$6.09*

Variance

8.1%

+ 9.6% constant currency basis

40 bps

60 bps

50 bps

40 bps

13.0%

* Before non-recurring charges

FY 2020 Guidance

	FY 2019		FY 2020			% Increase
		Low	Mid Point	High	Low	Mid Point	High
Revenue	$2,806m	$2,972m	$3,032m	$3,092m	5.9%	8.1%	10.2%
EPS	$6.88	$7.55	$7.70	$7.85	9.7%	11.9%	14.1%

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