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Actionable news in PRXL: PAREXEL International Corporation,

Parexel International Reports First Quarter Fiscal Year 2016 Results

The following excerpt is from the company's SEC filing.

First Quarter Fiscal Year 2016 Results (compared with First Quarter Fiscal Year 2015)

Adjusted earnings per share of

; GAAP diluted earnings per share of

Adjusted operating margin of

; GAAP operating margin of

Gross new business wins of

$914 million

; net book-to-bill ratio of

; backlog at

$5.4 billion

Service revenue of

$512.1 million

; constant currency revenue growth of

Restructuring charge of

$14.8 million

related to Margin Acceleration Program, with majority of benefits expected to accrue in the second half of Fiscal Year 2016

PAREXEL International Corporation (NASDAQ: PRXL) today reported financial results for the first quarter of Fiscal Year 2016, which ended on September 30, 2015.

“PAREXEL’s results for the first quarter were in line with our expectations, and we believe we are on track toward meeting our profitability targets for the Fiscal Year,” said Chairman and Chief Executive Officer Josef H. von Rickenbach. “Our new business wins were strong, and we advanced our Margin Acceleration Program as planned. We made solid progress executing on our financial strategy, including launching a $200 million accelerated share repurchase program in the quarter.”

“In addition to enhancing productivity, we anticipate continued improvement in our labor mix and geographic footprint leverage,” Mr. von Rickenbach said. “Our recent acquisition, QSI, is performing well, and we are committed to completing the Margin Acceleration Program on schedule. We believe the market for our services continues to be attractive, and that PAREXEL is well-positioned to deliver increasingly profitable growth in the quarters ahead.”

For the three months ended September 30, 2015, PAREXEL’s consolidated service revenue increased by

, compared with

$491.7 million

in the prior year period. A restructuring charge of

was recorded in the quarter related to PAREXEL’s ongoing Margin Acceleration Program. Operating income as reported under Generally Accepted Accounting Principles (GAAP) totaled

$35.5 million

of service revenue, in the first quarter of Fiscal Year 2016, as compared with

$53.6 million

of service revenue, in the comparable quarter of the prior year. GAAP net income for the quarter totaled

$24.9 million

per diluted share, compared with

$37.1 million

per diluted share, for the quarter ended September 30, 2014. GAAP diluted earnings per share declined

year-over-year.

The financial results of the September quarter in the current and prior year period each included items outside of the Company’s normal operations, as detailed in the financial tables within this press release. Adjusted operating income in the first quarter of Fiscal Year 2016 was

$55.3 million

of service revenue. Adjusted operating income in the first quarter of Fiscal Year 2015 was

$52.8 million

of service revenue. Adjusted net income was

$39.0 million

per diluted share in the quarter ended September 30, 2015, and was

$36.3 million

per diluted share in the quarter ended September 30, 2014. Adjusted diluted earnings per share grew

On a segment basis, service revenue for the first quarter of Fiscal Year 2016 was

$410.2 million

in Clinical Research Services (CRS),

$39.3 million

in PAREXEL Consulting (PC), and

$62.6 million

in PAREXEL Informatics (PI). (Please see description later in this release regarding a reclassification that has occurred between segments.)

New Business and Backlog

Backlog at the end of September 2015 was

, an increase of

year-over-year. The reported backlog included gross new business wins in the first quarter of

$914 million,

cancellations of

$305 million

, and a negative impact from foreign currency exchange rates of

$0.8 million

. The net book-to-bill ratio was

in the quarter.

Forward-looking Guidance

The Company issued forward-looking guidance for the second quarter of Fiscal Year 2016 (ending December 31, 2015) and updated its guidance for revenue and EPS for Fiscal Year 2016 as detailed in the chart below. The guidance takes into account a number of factors, including recent foreign currency exchange rates, tax rates, and the Company’s updated overall outlook.

The Company’s guidance is:

Guidance Issued 10/28/15

Guidance Issued 8/05/15

Q2 FY 2016 Revenue

$518 - $528 million

Q2 FY 2016 GAAP EPS

$0.58 - $0.66

Q2 FY 2016 non-GAAP EPS*

$0.66 - $0.74

$2.120 - $2.160 billion

$2.160 - $2.210 billion

$2.86 - $3.06

$2.79 - $3.15

$3.19 - $3.39

$3.02 - $3.38

*Adjusted diluted EPS guidance for second quarter Fiscal Year 2016 and Fiscal Year 2016 excludes anticipated charges related to the Company’s ongoing restructuring program ("Margin Acceleration Program"), as detailed in a table contained within this release.

Reclassification...


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