IMS Health 200IMS Health revenue for the second quarter of $742 million was up 24.6 percent on a constant currency basis and 12.0 percent on a reported basis, compared with the second quarter of 2014. Early in the second quarter, the company closed the acquisition of Cegedim’s CRM and Strategic Data businesses (“the Cegedim Acquisition”). Excluding the impact of the Cegedim Acquisition, revenue was up 5.2 percent on a constant currency basis and down 4.6 percent on a reported basis, with the difference entirely due to the year-over-year strengthening of the U.S. dollar versus key currencies in which the company transacts business.

The company’s strong revenue growth in the second quarter included a 45.6 percent increase in technology services revenue on a constant currency basis, up 33.3 percent on a reported basis, versus the same period last year. Information offerings revenue was up 9.4 percent on a constant currency basis and down 3.2 percent reported.  Emerging markets revenue increased 29.4 percent in the second quarter on a constant currency basis and 8.8 percent on a reported basis. Developed markets revenue grew 23.5 percent on a constant currency basis and 12.7 percent reported.

Excluding the Cegedim Acquisition, technology services revenue increased 11.7 percent on a constant currency basis and 3.8 percent reported, and information offerings revenue increased 0.5 percent on a constant currency basis and declined 10.7 percent on a reported basis.

Adjusted EBITDA of $220 million improved 9.5 percent on a constant currency basis, and decreased 2.3 percent reported, compared with the second quarter of 2014. Adjusted EBITDA margin of 29.7 percent of revenue was impacted by approximately four percentage points during the quarter, reflecting the addition of the Cegedim Acquisition’s revenues at lower margins.

Second-quarter 2015 net income was $47 million compared with a net loss of $220 million in last year’s second quarter, which included significant one-time charges primarily related to the company’s initial public offering. Adjusted Net Income for the second quarter was $125 million, up 3.9 percent on a constant currency basis due to increased Adjusted EBITDA, partially offset by higher cash taxes. Adjusted Net Income was down 6.3 percent on a reported basis, reflecting the strengthening of the U.S. dollar versus the prior year.

First-Half 2015 Operating Results

Revenue for the six months ended June 30, 2015 of $1,374 million increased 15.9 percent on a constant currency basis and 5.1 percent reported, compared with the first half of 2014. Excluding the impact of the Cegedim Acquisition, revenue for the six months ended June 30, 2015 was up 6.1 percent on a constant currency basis and down 3.3 percent on a reported basis. Adjusted EBITDA of $436 million increased 9.7 percent on a constant currency basis and declined 1.5 percent on a reported basis, compared with the first half of 2014. First-half net income was $345 million, compared with a net loss of $244 million in last year’s first half, which included one-time IPO related charges. Adjusted Net Income was $261 million, up 28.2 percent from $204 million in the prior-year period. Diluted earnings per share was $1.01 in the first half of 2015, compared with a loss of $0.80 per share in the prior-year period. Adjusted Diluted Earnings per Share increased 29.8 percent on a constant currency basis and increased 17.4 percent on a reported basis to $0.76 in the first half, compared with $0.65 in the prior-year period.

2015 Full-Year Guidance:  IMS Health reaffirms all full-year 2015 guidance on both a reported and a constant currency basis.

Source:  Benzinga