PRA Health Sciences, Inc. (“PRA,” "we," "us," or the “Company”)
(NASDAQ: PRAH) today reported financial results for the quarter and
year ended December 31, 2020.
"I am delighted to report fourth quarter revenue and earnings
that significantly outperformed the updated guidance we provided
back in November. I am also excited to report another quarter of
record gross and net new business awards" said Colin Shannon, PRA's
Chief Executive Officer. "We finished the year on a very positive
note and I believe we are extremely well positioned for the coming
year."
Net new business for our Clinical Research segment for the three
months ended December 31, 2020 was $872.4 million, representing a
net book-to-bill ratio of 1.42 for the period. Net new business for
our Clinical Research segment for the three months ended December
31, 2020 including reimbursement revenue was $1,437.8 million,
representing a net book-to-bill of 1.80 for the period. Net new
business, excluding reimbursement revenue, contributed to an ending
backlog at December 31, 2020 of $5.4 billion, an increase of 14.6%
year over year and 5.6% sequentially.
For the three months ended December 31, 2020, revenue was $873.5
million, which represents an increase of 9.1%, or $73.2 million,
compared to the fourth quarter of 2019 at actual foreign exchange
rates. On a constant currency basis, revenue increased $64.3
million, an increase of 8.0% compared to the fourth quarter of
2019. The Clinical Research segment generated revenues of $797.5
million, an increase of 10.0% year over year and 8.9% sequentially.
The Data Solutions segment generated revenues of $75.9 million, an
increase of 1.1% year over year and 18.3% sequentially.
Direct costs, exclusive of depreciation and amortization, were
$437.7 million during the three months ended December 31, 2020
compared to $386.1 million for the three months ended December 31,
2019 at actual foreign exchange rates. On a constant currency
basis, direct costs increased by $47.4 million compared to the
fourth quarter of 2019. The increase in direct costs continues to
be driven by increased labor costs in our Clinical Research segment
and increased data costs in our Data Solutions segment. Direct
costs were 50.1% of revenue during the fourth quarter of 2020
compared to 48.2% of revenue during the fourth quarter of 2019.
Selling, general and administrative expenses were $120.7 million
during the three months ended December 31, 2020 compared to $103.5
million for the three months ended December 31, 2019. Selling,
general and administrative costs were 13.8% of revenue during the
fourth quarter of 2020 compared to 12.9% of revenue during the
fourth quarter of 2019.
GAAP net income attributable to PRA was $51.3 million for the
three months ended December 31, 2020, or $0.78 per share on a
diluted basis, compared to $74.8 million for the three months ended
December 31, 2019, or $1.16 per share on a diluted basis.
EBITDA was $116.8 million for the three months ended December
31, 2020, representing a decrease of 6.5% compared to the three
months ended December 31, 2019. Adjusted EBITDA was $152.5 million
for the three months ended December 31, 2020, representing an
increase of 2.7% compared to the three months ended December 31,
2019.
Adjusted net income was $101.2 million for the three months
ended December 31, 2020, representing an increase of 2.5% compared
to the three months ended December 31, 2019. Adjusted net income
per diluted share was $1.55 for the three months ended December 31,
2020, representing an increase of 0.6% compared to the three months
ended December 31, 2019.
Full Year 2020 Financial Highlights
For the twelve months ended December 31, 2020, revenue was
$3,183.4 million, which represents an increase of 3.8%, or $117.1
million, compared to the twelve months ended December 31, 2019 at
actual foreign exchange rates. On a constant currency basis,
revenue grew $112.7 million, representing growth of 3.7% compared
to the twelve months ended December 31, 2019.
GAAP income from operations was $328.1 million, GAAP net income
was $197.0 million, or $3.04 per share on a diluted basis, for the
twelve months ended December 31, 2020.
Adjusted net income was $307.8 million for the twelve months
ended December 31, 2020, a decrease of 9.7% compared to the same
period in 2019. Adjusted net income per diluted share was
$4.75 for the twelve months ended December 31, 2020, a decrease of
8.1% compared to the same period in 2019.
Conference Call Details
PRA will not hold its previously scheduled fourth quarter and
full year 2020 earnings conference call on Friday, February 26,
2021 at 9:00 a.m. (ET).
Additional Information
A reconciliation of our non-GAAP measures, EBITDA, adjusted
EBITDA, adjusted net income, adjusted net income per share, to the
corresponding GAAP measures is included in this press release.
A financial supplement with fourth quarter 2020 results,
which should be read in conjunction with this press release, may be
found in the Investor Relations section of our website at
investor.prahs.com in a document titled “Q4 2020 Earnings
Presentation.”
About PRA Health Sciences
PRA (NASDAQ: PRAH) is one of the world’s leading global contract
research organizations by revenue, providing outsourced clinical
development and data solution services to the biotechnology and
pharmaceutical industries. PRA’s global clinical development
platform includes more than 70 offices across North America,
Europe, Asia, Latin America, South Africa, Australia and the Middle
East and more than 18,100 employees worldwide. Since 2000, PRA has
participated in approximately 4,200 clinical trials worldwide. In
addition, PRA has participated in the pivotal or supportive trials
that led to U.S. Food and Drug Administration or international
regulatory approval of more than 100 drugs.
PRA has therapeutic expertise in areas that are among the
largest in pharmaceutical development, including oncology,
immunology, central nervous system, inflammation and infectious
diseases. PRA believes that it provides its clients with flexible
clinical development service offerings, which include both
traditional, project-based Phase I through Phase IV services, as
well as embedded, functional outsourcing and data solution
services. The Company has invested in medical informatics and
clinical technologies designed to enhance efficiencies, improve
study predictability and provide better transparency to clients
throughout their clinical development processes. To learn more
about PRA, please visit www.prahs.com.
Internet Posting of Information: The Company routinely posts
information that may be important to investors in the ‘Investor
Relations’ section of the Company’s website at www.prahs.com. The
Company encourages investors and potential investors to consult the
Company’s website regularly for important information about the
Company.
Contacts:
Kevin Doherty Solebury Trout Managing Director
InvestorRelations@prahs.com or kdoherty@soleburytrout.com
Forward-Looking Statements
This press release contains forward-looking statements that
reflect, among other things, the Company’s current expectations and
anticipated results of operations, all of which are subject to
known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements, market trends or
industry results to differ materially from those expressed or
implied by such forward-looking statements. For this purpose, any
statements contained herein that are not statements of historical
fact may constitute forward-looking statements. Without limiting
the foregoing, words such as “anticipates,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “may,” “plans,”
“projects,” “should,” “targets,” “will” and the negative thereof
and similar words and expressions are intended to identify
forward-looking statements. Actual results may differ materially
from the Company’s expectations due to a number of factors,
including that most of the Company’s contracts may be terminated on
short notice and that the Company may be unable to maintain large
customer contracts or to enter into new contracts; the Company may
underprice contracts, overrun its cost estimates, or fail to
receive approval for, or experience delays in, documenting change
orders; the historical indications of the relationship of backlog
to revenues may not be indicative of their future relationship; the
Company may be unable to attract suitable investigators and
patients for its clinical trials; the Company could be subject to
employment liability with its embedded and functional outsourcing
solutions as it places employees at the physical workplaces of its
clients; the Company may lose key personnel or be unable to recruit
and retain experienced personnel; the Company may be unable to
maintain information systems or effectively update them; a failure
or breach of the Company’s IT systems could result in customer
information being compromised or otherwise significantly disrupt
the Company’s business operations; client or therapeutic
concentration or competition among clients could harm the Company’s
business; if the Company does not keep pace with rapid
technological changes, its services may become less competitive or
obsolete; the Company may be unable to successfully identify,
acquire and integrate businesses, services and technologies or to
manage joint ventures; the Company’s business is subject to
economic, political and other risks associated with international
operations, including foreign currency exchange rate fluctuations;
the Company may be exposed to liabilities under anti-corruption
laws due to the global nature of its business; the Company’s
failure to perform services in accordance with contractual
requirements, certain laws and regulatory standards, and ethical
considerations may subject it to significant costs or liability,
damage its reputation and cause it to lose existing business or not
receive new business; the Company’s services are related to
treatment of human patients, and it could face liability if a
patient is harmed; the Company’s relationships with existing or
potential clients who are in competition with each other may
adversely impact the degree to which other clients or potential
clients use its services; the Company may be unable to compete
effectively with other players in the biopharmaceutical services
industry; changes in accounting standards may adversely affect the
Company’s financial statements; the Company’s effective income tax
rate may fluctuate which may adversely affect its operations,
earnings, and earnings per share; the Company may not realize the
full value of its goodwill and intangible assets, and may be unable
to use net operating loss carry-forwards; the Company’s suppliers
may increase its costs to obtain, restrict its use of or refuse to
license its data, or the Company may otherwise be unable to
continue to obtain products, services and licenses from third
parties; the Company may be unable to protect its intellectual
property; patent and other intellectual property litigation could
be time-consuming and costly; biopharmaceutical industry
outsourcing trends could change and adversely affect the Company’s
operations and growth rate; government regulators or customers may
limit the scope of prescriptions or withdraw products from the
market; the U.S. and international healthcare industry is subject
to political, economic and/or regulatory influences and changes,
such as healthcare reform; current and proposed laws and
regulations regarding the protection of personal data could result
in increased risks of liability or increased cost or could limit
the Company’s service offerings; the Company has substantial
indebtedness, some of which have interest rates pricing using a
spread over LIBOR, and may incur additional indebtedness in the
future, which could adversely affect the Company’s financial
condition; circumstances beyond the Company’s control could cause
industry-wide reduction in demand for its services; and other
factors that are set forth in the Company’s filings with the
Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K filed with the SEC on February 21, 2020.
The forward-looking statements in this release speak only as of the
date hereof, and the Company undertakes no obligation to update any
such statement after the date of this release, whether as a result
of new information, future developments or otherwise, except as may
be required by applicable law.
Use of Non-GAAP Financial Measures
This press release includes EBITDA, adjusted EBITDA, adjusted
net income and adjusted net income per diluted share, each of which
are financial measures not prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”).
Management believes that these measures provide useful supplemental
information to management and investors regarding our operating
results as they exclude certain items whose fluctuation from
period- to- period do not necessarily correspond to changes in the
operating results of our business. As a result, management and our
board of directors regularly use EBITDA and adjusted EBITDA as a
tool in evaluating our operating and financial performance and in
establishing discretionary annual bonuses. Adjusted EBITDA is also
the basis for covenant compliance EBITDA, which is used in certain
covenants in the credit agreement governing our senior secured
credit facilities. In addition, management believes that EBITDA,
adjusted EBITDA and adjusted net income (including adjusted net
income per share on a diluted basis) facilitate comparisons of our
operating results with those of other companies by backing out of
GAAP net income items relating to variations in capital structures
(affecting interest expense), taxation, and the age and book
depreciation of facilities and equipment (affecting relative
depreciation expense), which may vary for different companies for
reasons unrelated to operating performance. We believe that EBITDA,
adjusted EBITDA and adjusted net income (including adjusted net
income per share on a diluted basis) are frequently used by
securities analysts, investors, and other interested parties in the
evaluation of issuers, many of which also present EBITDA, adjusted
EBITDA and adjusted net income (including adjusted net income per
share on a diluted basis) when reporting their results in an effort
to facilitate an understanding of their operating results.
These non-GAAP financial measures have limitations as analytical
tools, and you should not consider these measures in isolation, or
as a substitute for analysis of our results as reported under GAAP.
Additionally, because not all companies use identical calculations,
these presentations of EBITDA, adjusted EBITDA and adjusted net
income (including adjusted net income per share on a diluted basis)
may not be comparable to similarly titled measures of other
companies.
EBITDA represents net income before interest, taxes,
depreciation and amortization. Adjusted EBITDA and adjusted net
income (including adjusted net income per share on a diluted basis)
represent EBITDA and net income (including diluted net income per
share), respectively, adjusted to exclude stock-based
compensation expense, loss (gain) on disposal of fixed assets, loss
on modification or extinguishment of debt, foreign currency
losses (gains), other non-operating expense (income),
transaction-related costs, acquisition-related costs, severance
costs and restructuring charges, lease termination expense,
non-cash rent adjustment, adjustment to reflect amounts
attributable to noncontrolling interest and other charges. Adjusted
net income is also adjusted to exclude amortization of intangible
assets, amortization of terminated interest rate swaps, and
amortization of deferred financing costs. EBITDA, adjusted EBITDA
and adjusted net income are not measurements of our financial
performance under GAAP and should not be considered as alternatives
to net income or other performance measures derived in accordance
with GAAP or as alternatives to cash flow from operating activities
as measures of our liquidity. EBITDA, adjusted EBITDA and adjusted
net income have limitations as analytical tools, and you should not
consider such measures either in isolation or as substitutes for
analyzing our results as reported under GAAP.
Some of these limitations are:
- EBITDA and adjusted EBITDA do not reflect changes in, or cash
requirements for, our working capital needs;
- EBITDA and adjusted EBITDA do not reflect our interest expense,
or the cash requirements necessary to service interest or principal
payments, on our debt;
- EBITDA and adjusted EBITDA do not reflect our tax expense or
the cash requirements to pay our taxes;
- EBITDA and adjusted EBITDA do not reflect historical capital
expenditures or future requirements for capital expenditures or
contractual commitments;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA and adjusted EBITDA do not
reflect any cash requirements for such replacements; and
- other companies in our industry may calculate EBITDA and
adjusted EBITDA differently, limiting their usefulness as
comparative measures.
Because of these limitations, EBITDA and adjusted EBITDA should
not be considered as discretionary cash available to us to reinvest
in the growth of our business or as a measure of cash that will be
available to us to meet our obligations.
Constant Currency
Constant currency comparisons are based on translating local
currency amounts in the current year period at actual foreign
exchange rates for the prior year. The Company routinely evaluates
its financial performance on a constant currency basis in order to
facilitate period- to- period comparisons without regard to the
impact of changing foreign currency exchange rates.
|
PRA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
$ |
873,458 |
|
|
|
$ |
800,240 |
|
|
|
$ |
3,183,365 |
|
|
|
$ |
3,066,262 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Direct costs (exclusive of depreciation and amortization) |
|
437,723 |
|
|
|
386,099 |
|
|
|
1,649,001 |
|
|
|
1,539,541 |
|
|
Reimbursable expenses |
|
184,264 |
|
|
|
178,398 |
|
|
|
665,761 |
|
|
|
650,080 |
|
|
Selling, general and administrative expenses |
|
120,686 |
|
|
|
103,486 |
|
|
|
453,032 |
|
|
|
394,925 |
|
|
Transaction-related costs |
|
— |
|
|
|
1,263 |
|
|
|
(44,465 |
) |
|
|
1,835 |
|
|
Depreciation and amortization expense |
|
33,552 |
|
|
|
29,435 |
|
|
|
131,630 |
|
|
|
114,898 |
|
|
Loss on disposal of fixed assets |
|
110 |
|
|
|
158 |
|
|
|
317 |
|
|
|
1,058 |
|
|
Income from operations |
|
97,123 |
|
|
|
101,401 |
|
|
|
328,089 |
|
|
|
363,925 |
|
|
Interest expense, net |
|
(7,028 |
) |
|
|
(14,154 |
) |
|
|
(43,130 |
) |
|
|
(51,987 |
) |
|
Loss on modification or
extinguishment of debt |
|
(450 |
) |
|
|
(2,073 |
) |
|
|
(450 |
) |
|
|
(3,928 |
) |
|
Foreign currency losses,
net |
|
(13,463 |
) |
|
|
(4,121 |
) |
|
|
(25,499 |
) |
|
|
(2,257 |
) |
|
Other income (expense),
net |
|
— |
|
|
|
239 |
|
|
|
(1 |
) |
|
|
174 |
|
|
Income before income
taxes |
|
76,182 |
|
|
|
81,292 |
|
|
|
259,009 |
|
|
|
305,927 |
|
|
Provision for income taxes |
|
24,925 |
|
|
|
6,491 |
|
|
|
61,966 |
|
|
|
62,808 |
|
|
Net income |
|
51,257 |
|
|
|
74,801 |
|
|
|
197,043 |
|
|
|
243,119 |
|
|
Net income attributable to
noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99 |
) |
|
Net income attributable to PRA
Health Sciences, Inc. |
|
$ |
51,257 |
|
|
|
$ |
74,801 |
|
|
|
$ |
197,043 |
|
|
|
$ |
243,020 |
|
|
Net income per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.80 |
|
|
|
$ |
1.19 |
|
|
|
$ |
3.11 |
|
|
|
$ |
3.77 |
|
|
Diluted |
|
$ |
0.78 |
|
|
|
$ |
1.16 |
|
|
|
$ |
3.04 |
|
|
|
$ |
3.68 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
63,845 |
|
|
|
62,754 |
|
|
|
63,352 |
|
|
|
64,506 |
|
|
Diluted |
|
65,350 |
|
|
|
64,213 |
|
|
|
64,758 |
|
|
|
66,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands,
except share amounts)(unaudited) |
|
|
|
December 31, |
|
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
506,303 |
|
|
|
$ |
236,232 |
|
|
Restricted cash |
|
— |
|
|
|
38 |
|
|
Accounts receivable and unbilled services, net of allowance for
credit losses of $3,064 as of December 31, 2020 |
|
843,905 |
|
|
|
658,517 |
|
|
Prepaid expenses and other current assets |
|
99,006 |
|
|
|
88,141 |
|
|
Income taxes receivable |
|
11,300 |
|
|
|
2,639 |
|
|
Total current assets |
|
1,460,514 |
|
|
|
985,567 |
|
|
Fixed assets, net |
|
194,620 |
|
|
|
180,716 |
|
|
Operating lease right-of-use
assets |
|
178,144 |
|
|
|
186,343 |
|
|
Goodwill |
|
1,691,007 |
|
|
|
1,502,756 |
|
|
Intangible assets, net |
|
599,885 |
|
|
|
638,577 |
|
|
Deferred tax assets |
|
14,725 |
|
|
|
10,282 |
|
|
Deferred financing fees |
|
2,677 |
|
|
|
3,377 |
|
|
Other assets |
|
36,929 |
|
|
|
36,812 |
|
|
Total assets |
|
$ |
4,178,501 |
|
|
|
$ |
3,544,430 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Current portion of borrowings under credit facilities |
|
$ |
91,300 |
|
|
|
$ |
88,800 |
|
|
Current portion of long-term debt |
|
25,000 |
|
|
|
25,000 |
|
|
Accounts payable |
|
56,935 |
|
|
|
55,293 |
|
|
Accrued expenses and other current liabilities |
|
317,183 |
|
|
|
302,705 |
|
|
Income taxes payable |
|
3,192 |
|
|
|
2,094 |
|
|
Current portion of operating lease liabilities |
|
39,631 |
|
|
|
37,603 |
|
|
Advanced billings |
|
732,782 |
|
|
|
505,714 |
|
|
Total current liabilities |
|
1,266,023 |
|
|
|
1,017,209 |
|
|
Deferred tax liabilities |
|
63,451 |
|
|
|
78,511 |
|
|
Long-term debt, net |
|
1,158,668 |
|
|
|
1,140,178 |
|
|
Long-term portion of operating
lease liabilities |
|
158,983 |
|
|
|
172,370 |
|
|
Other long-term
liabilities |
|
52,191 |
|
|
|
46,171 |
|
|
Total liabilities |
|
2,699,316 |
|
|
|
2,454,439 |
|
|
Commitments and
contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock (100,000,000 authorized shares; $0.01 par
value) |
|
|
|
|
Issued and outstanding -- none |
|
— |
|
|
|
— |
|
|
Common stock (1,000,000,000 authorized shares; $0.01 par
value) |
|
|
|
|
Issued and outstanding -- 64,538,729 and 63,491,550 at December 31,
2020 and 2019, respectively |
|
645 |
|
|
|
635 |
|
|
Additional paid-in
capital |
|
1,137,028 |
|
|
|
1,006,182 |
|
|
Accumulated other
comprehensive loss |
|
(98,813 |
) |
|
|
(160,108 |
) |
|
Retained earnings |
|
440,325 |
|
|
|
243,282 |
|
|
Total stockholders' equity |
|
1,479,185 |
|
|
|
1,089,991 |
|
|
Total liabilities and stockholders' equity |
|
$ |
4,178,501 |
|
|
|
$ |
3,544,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands)(unaudited) |
|
|
|
Years Ended December 31, |
|
|
2020 |
|
2019 |
Cash flows from operating
activities: |
|
|
|
|
Net income |
|
$ |
197,043 |
|
|
|
$ |
243,119 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization expense |
|
131,630 |
|
|
|
114,898 |
|
|
Amortization of debt issuance costs and discount |
|
1,691 |
|
|
|
1,814 |
|
|
Amortization of terminated interest rate swaps |
|
4,559 |
|
|
|
6,538 |
|
|
Stock-based compensation expense |
|
69,413 |
|
|
|
45,834 |
|
|
Unrealized foreign currency losses (gains) |
|
30,858 |
|
|
|
(6,467 |
) |
|
Loss on modification or extinguishment of debt |
|
450 |
|
|
|
519 |
|
|
Loss on disposal of fixed assets |
|
317 |
|
|
|
1,058 |
|
|
Change in fair value of acquisition-related contingent
consideration |
|
(44,500 |
) |
|
|
— |
|
|
Deferred income taxes |
|
(20,294 |
) |
|
|
(23,907 |
) |
|
Other reconciling items |
|
8,953 |
|
|
|
606 |
|
|
Changes in operating assets and liabilities, net of acquired assets
and assumed liabilities: |
|
|
|
|
Accounts receivable and unbilled services |
|
(172,222 |
) |
|
|
(89,304 |
) |
|
Prepaid expenses and other assets |
|
(6,443 |
) |
|
|
(13,660 |
) |
|
Accounts payable and other liabilities |
|
11,089 |
|
|
|
21,584 |
|
|
Income taxes |
|
(61 |
) |
|
|
(31,029 |
) |
|
Advanced billings |
|
214,695 |
|
|
|
65,213 |
|
|
Payment of acquisition-related contingent consideration |
|
— |
|
|
|
(83,249 |
) |
|
Net cash provided by operating activities |
|
427,178 |
|
|
|
253,567 |
|
|
Cash flows from investing
activities: |
|
|
|
|
Purchase of fixed assets |
|
(66,808 |
) |
|
|
(74,294 |
) |
|
Proceeds from the sale of fixed assets |
|
32 |
|
|
|
26 |
|
|
Cash (paid) received for interest on interest rate swap |
|
(8,300 |
) |
|
|
667 |
|
|
Return of joint venture capital contribution |
|
— |
|
|
|
418 |
|
|
Acquisition of Care Innovations, Inc., net of cash acquired |
|
(158,824 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
(233,900 |
) |
|
|
(73,183 |
) |
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
1,300,000 |
|
|
Repayment of long-term debt |
|
(25,000 |
) |
|
|
(1,216,533 |
) |
|
Proceeds from accounts receivable financing agreement |
|
42,500 |
|
|
|
30,000 |
|
|
Repayment on accounts receivable financing agreement |
|
— |
|
|
|
(30,000 |
) |
|
Borrowings on line of credit |
|
100,000 |
|
|
|
233,800 |
|
|
Repayments of line of credit |
|
(97,500 |
) |
|
|
(145,000 |
) |
|
Payment for debt issuance costs |
|
(920 |
) |
|
|
(4,541 |
) |
|
Acquisition of noncontrolling interest |
|
— |
|
|
|
(4,138 |
) |
|
Proceeds from stock issued under employee stock purchase plan and
stock option exercises |
|
58,349 |
|
|
|
45,819 |
|
|
Taxes paid related to net shares settlement of equity awards |
|
— |
|
|
|
(114 |
) |
|
Repurchase and retirement of common stock |
|
— |
|
|
|
(300,000 |
) |
|
Net cash provided by (used in) financing activities |
|
77,429 |
|
|
|
(90,707 |
) |
|
Effects of foreign exchange
changes on cash, cash equivalents, and restricted cash |
|
(674 |
) |
|
|
1,884 |
|
|
Change in cash, cash
equivalents, and restricted cash |
|
270,033 |
|
|
|
91,561 |
|
|
Cash, cash equivalents, and
restricted cash, beginning of year |
|
236,270 |
|
|
|
144,709 |
|
|
Cash, cash equivalents, and
restricted cash, end of year |
|
$ |
506,303 |
|
|
|
$ |
236,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRA HEALTH SCIENCES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (in
thousands, except per share amounts)
(unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income attributable to PRA Health Sciences,
Inc. |
|
$ |
51,257 |
|
|
|
$ |
74,801 |
|
|
|
$ |
197,043 |
|
|
|
$ |
243,020 |
|
|
Depreciation and amortization
expense |
|
33,552 |
|
|
|
29,435 |
|
|
|
131,630 |
|
|
|
114,898 |
|
|
Interest expense, net |
|
7,028 |
|
|
|
14,154 |
|
|
|
43,130 |
|
|
|
51,987 |
|
|
Provision for income
taxes |
|
24,925 |
|
|
|
6,491 |
|
|
|
61,966 |
|
|
|
62,808 |
|
|
EBITDA |
|
116,762 |
|
|
|
124,881 |
|
|
|
433,769 |
|
|
|
472,713 |
|
|
Stock-based compensation
expense (a) |
|
18,800 |
|
|
|
15,427 |
|
|
|
69,413 |
|
|
|
45,834 |
|
|
Loss on disposal of fixed
assets, net (b) |
|
110 |
|
|
|
158 |
|
|
|
317 |
|
|
|
1,058 |
|
|
Loss on modification or
extinguishment of debt (c) |
|
450 |
|
|
|
2,073 |
|
|
|
450 |
|
|
|
3,928 |
|
|
Foreign currency losses, net
(d) |
|
13,463 |
|
|
|
4,121 |
|
|
|
25,499 |
|
|
|
2,257 |
|
|
Other non-operating (income)
expense, net (e) |
|
— |
|
|
|
(239 |
) |
|
|
1 |
|
|
|
(174 |
) |
|
Transaction-related costs
(f) |
|
— |
|
|
|
1,263 |
|
|
|
(44,465 |
) |
|
|
1,835 |
|
|
Acquisition-related costs
(g) |
|
1,429 |
|
|
|
448 |
|
|
|
3,006 |
|
|
|
4,782 |
|
|
Lease termination expense
(h) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(266 |
) |
|
Non-cash rent adjustment
(i) |
|
(883 |
) |
|
|
(342 |
) |
|
|
(953 |
) |
|
|
(21 |
) |
|
Other charges |
|
2,372 |
|
|
|
702 |
|
|
|
5,013 |
|
|
|
702 |
|
|
Non-operating income
attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
190 |
|
|
Adjusted
EBITDA |
|
$ |
152,503 |
|
|
|
$ |
148,492 |
|
|
|
$ |
492,050 |
|
|
|
$ |
532,838 |
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to PRA Health Sciences, Inc. |
|
$ |
51,257 |
|
|
|
$ |
74,801 |
|
|
|
$ |
197,043 |
|
|
|
$ |
243,020 |
|
|
Provision for income
taxes |
|
24,925 |
|
|
|
6,491 |
|
|
|
61,966 |
|
|
|
62,808 |
|
|
Amortization of intangible
assets |
|
19,072 |
|
|
|
17,156 |
|
|
|
76,262 |
|
|
|
68,590 |
|
|
Amortization of deferred
financing costs |
|
425 |
|
|
|
450 |
|
|
|
1,691 |
|
|
|
1,814 |
|
|
Amortization of terminated
interest rate swaps |
|
— |
|
|
|
1,579 |
|
|
|
4,559 |
|
|
|
6,538 |
|
|
Stock-based compensation
expense (a) |
|
18,800 |
|
|
|
15,427 |
|
|
|
69,413 |
|
|
|
45,834 |
|
|
Loss on disposal of fixed
assets, net (b) |
|
110 |
|
|
|
158 |
|
|
|
317 |
|
|
|
1,058 |
|
|
Loss on modification or
extinguishment of debt (c) |
|
450 |
|
|
|
2,073 |
|
|
|
450 |
|
|
|
3,928 |
|
|
Foreign currency losses, net
(d) |
|
13,463 |
|
|
|
4,121 |
|
|
|
25,499 |
|
|
|
2,257 |
|
|
Other non-operating (income)
expense, net (e) |
|
— |
|
|
|
(239 |
) |
|
|
1 |
|
|
|
(174 |
) |
|
Transaction-related costs
(f) |
|
— |
|
|
|
1,263 |
|
|
|
(44,465 |
) |
|
|
1,835 |
|
|
Acquisition-related costs
(g) |
|
1,429 |
|
|
|
448 |
|
|
|
3,006 |
|
|
|
4,782 |
|
|
Lease termination expense
(h) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(266 |
) |
|
Non-cash rent adjustment
(i) |
|
(883 |
) |
|
|
(342 |
) |
|
|
(953 |
) |
|
|
(21 |
) |
|
Other charges |
|
2,372 |
|
|
|
702 |
|
|
|
5,013 |
|
|
|
702 |
|
|
Non-operating income
attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
190 |
|
|
Adjusted pre-tax income |
|
131,420 |
|
|
|
124,088 |
|
|
|
399,802 |
|
|
|
442,895 |
|
|
Adjusted tax expense (j) |
|
(30,226 |
) |
|
|
(25,352 |
) |
|
|
(91,955 |
) |
|
|
(101,866 |
) |
|
Adjusted net
income |
|
$ |
101,194 |
|
|
|
$ |
98,736 |
|
|
|
$ |
307,847 |
|
|
|
$ |
341,029 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares outstanding |
|
65,350 |
|
|
|
64,213 |
|
|
|
64,758 |
|
|
|
66,004 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
diluted share |
|
$ |
1.55 |
|
|
|
$ |
1.54 |
|
|
|
$ |
4.75 |
|
|
|
$ |
5.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRA HEALTH SCIENCES, INC. AND
SUBSIDIARIES RECONCILIATION OF NON-GAAP
MEASURES (in millions, except per share
amounts) (unaudited)
(a) |
Stock-based compensation expense represents the amount of recurring
non-cash expense related to the Company’s equity compensation
programs. |
(b) |
Loss on disposal of fixed assets
represents the costs incurred in connection with the sale or
disposition of fixed assets, primarily IT equipment and furniture
and fixtures. We exclude these losses from adjusted EBITDA and
adjusted net income because they result from investing decisions
rather than from decisions made related to our ongoing
operations. |
(c) |
Loss on modification or
extinguishment of debt relates to costs incurred in connection with
changes to our long-term debt. We exclude these losses from
adjusted EBITDA and adjusted net income because they result from
financing decisions rather than from decisions made related to our
ongoing operations. |
(d) |
Foreign currency losses, net
primarily relates to gains or losses that arise in connection with
the revaluation of short-term inter-company balances between our
domestic and international subsidiaries. In addition, this amount
includes gains or losses from foreign currency transactions, such
as those resulting from the settlement of third-party accounts
receivable and payables denominated in a currency other than the
local currency of the entity making the payment. We exclude these
gains and losses from adjusted EBITDA and adjusted net income
because they result from financing decisions rather than from
decisions made related to our ongoing operations and because
fluctuations from period- to- period do not necessarily correspond
to changes in our operating results. |
(e) |
Other non-operating (income)
expense, net represents income and expense that are non-operating
and whose fluctuations from period- to- period do not
necessarily correspond to changes in our operating results. |
(f) |
Transaction-related costs include
fees associated with our secondary offerings, stock-based
compensation expense related to the transfer restrictions on vested
options, costs associated with acquisition related earn-out
liabilities, and expenses associated with our acquisitions. |
(g) |
Acquisition-related costs
primarily consist of professional fees, rebranding costs, the
elimination of redundant facilities and any other costs incurred
directly related to the integration of these acquisitions. |
(h) |
Lease termination expense
represents charges incurred in connection with the termination of
leases at locations that are no longer being used. |
(i) |
We have escalating leases that
require the amortization of rent expense on a straight-line basis
over the life of the lease. The non-cash rent adjustment represents
the difference between rent expense recorded in the consolidated
statement of operations and the amount of cash actually paid. |
(j) |
Represents the tax effect of
adjusted pre-tax income at our estimated effective tax rate. |
Grafico Azioni PRA Health Sciences (NASDAQ:PRAH)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni PRA Health Sciences (NASDAQ:PRAH)
Storico
Da Set 2023 a Set 2024