Revenue of $1,953 million, up 74.2 percent constant currency, 73.1 percent reported; on a combined company basis up 4.2 percent constant currency, 3.5 percent at actual FX rates when adjusting for $55 million of deferred revenue for the fourth quarter
- Adjusted EBITDA of $541 million, up 129.2 percent constant currency, 133.7 percent reported; on a combined company basis up 14.5 percent constant currency, 16.7 percent reported for the fourth quarter
- Diluted GAAP Loss per Share of $0.74; Adjusted Diluted Earnings per Share of $1.09 for the fourth quarter
- Post-merger share repurchase authorization increased to $2.5 billion from $1.5 billion
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)-- Quintiles IMS Holdings, Inc. (NYSE:Q), a leading global provider of information, technology services and contract research to the healthcare and life sciences industries, today reported financial results for the quarter and full-year ended December 31, 2016. On October 3, 2016, the merger of Quintiles Transnational Holdings Inc. and IMS Health Holdings, Inc. was completed. To aid investors and analysts with year-over-year comparability for the merged business, we are providing combined company financial information, which combines the stand-alone Quintiles and IMS Health financial information for revenue and Adjusted EBITDA as if the merger had taken place on January 1, 2015, with conforming adjustments to the current year presentation.
Fourth-Quarter 2016 Operating Results
Revenue for the fourth quarter of $1,953 million increased 74.2 percent on a constant currency basis and 73.1 percent on a reported basis, compared to the fourth quarter of 2015. Under purchase accounting rules, a portion of IMS Health’s deferred revenue, which would have otherwise been realized as revenue in future periods, must be eliminated. Excluding this deferred revenue adjustment, and on a combined company basis, revenue for the fourth quarter increased 4.2 percent on a constant currency basis and 3.5 percent at actual FX rates.
Commercial Solutions revenue increased 927.4 percent in the fourth quarter on a constant currency basis and 921.0 percent on a reported basis versus the same period last year. Excluding the $55 million deferred revenue adjustment, the legacy IMS Commercial business had revenues of $860 million and grew 6.9 percent at constant currency and 6.1 percent at actual FX rates. The legacy Quintiles Commercial business had revenues of $74 million and declined 14.0 percent at constant currency and 14.2 percent at actual FX rates. Combined company Commercial Solutions revenue of $934 million grew 4.9 percent in the fourth quarter at constant currency and 4.2 percent at actual FX rates.
Combined company Research & Development Solutions revenue of $882 million grew 6.6 percent on a constant currency basis and 5.4 percent at actual FX rates.
Combined company Integrated Engagement Services revenue of $192 million declined 8.4 percent at constant currency and 6.7 percent at actual FX rates.
Adjusted EBITDA of $541 million improved 129.2 percent on a constant currency basis and 133.7 percent on a reported basis, compared to the fourth quarter of 2015. On a combined company basis, Adjusted EBITDA improved 14.5 percent at constant currency and 16.7 percent at actual FX rates compared to the fourth quarter of 2015.
Fourth-quarter 2016 net loss was $178 million and loss per share was 0.74. This loss was primarily due to a one-time deferred tax charge relating to certain changes in our assertion regarding reinvestment of foreign earnings. Adjusted Net Income was $266 million and Adjusted Diluted Earnings per Share was $1.09 in the fourth quarter.
"For our first quarter as a combined company, we delivered a strong operational performance and achieved financial results in line with or above our targets," said Ari Bousbib, chairman and CEO, QuintilesIMS. "The post-merger integration process is advancing well and we are pleased with our progress to date."
Full-Year 2016 Operating Results
Revenue of $5,364 million for the full year of 2016 increased 24.2 percent on a constant currency basis and 24.0 percent reported, compared to the full year of 2015. On a full-year combine...
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