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PRA Health Sciences (PRAH)

Participants
Mike Bonello SVP and Corporate Controller
Colin Shannon CEO
Linda Baddour CFO
Dave Windley Jefferies
Tim Evans Wells Fargo Securities
John Kreger William Blair
Hong Tran Credit Suisse
Michael Baker Raymond James
Rohan Abrol KeyBanc Capital Markets Inc.
Michael Polark Robert W. Baird
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the PRA Health Sciences, Incorporated 2017 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to turn the conference over to Mike Bonello, Senior Vice President and Corporate Controller.

begin. may You

Mike Bonello

Chief thank Health and Colin joining for Baddour, us our third discuss Good financial quarter third you quarter PRA results. our Linda and Sciences Executive Today, Officer XXXX the will Chief our morning, Officer; for Financial earnings Shannon, teleconference.

opening comments, questions. be available will our Following for we

available press Relations portion Investor our to supplement addition the an investor with our in website. additional In release, financial information is of

SEC Investor included now call the Colin GAAP, in would the available turn in the are with financial our accordance may results. like portion earnings this I'd understanding stated responses on XXrd, to call measures remind factors forward-looking Factors our financial from helpful website. may in that are measure, A results forward-looking and and our teleconference our GAAP be obligation over of forward-looking Risk most section complete providing or is time-to-time gain statements we with a those begin, February presented you during release investor due updated our and remarks financial differ non-GAAP may this and business, CEO, any to our helps comparable update Risk supplement views to in no on filings measures. discussed more statements. and that We we of calculated We of on with assume of Certain and these which non-GAAP SEC. results include Shannon. these how by from the measures with like press to Form I to in the our Actual discuss management measures consistent statements. risks believe Before Report XXXX. materially investors associated the reconciliation with are uncertainties financial to Relation implied our Annual XX-K filed will the

Colin Shannon

Adjusted actual XX% of last -- to growth. revenues PRA the included of approximately date year. guidance. quarter $XXX XXXX actual foreign the over rates at XXXX. represents quarter you, conference PRA XX% rates on the net rates pleased once report in income quarter Solutions used exchange currency million, Mike. approximately third $XX approximately per basis. quarter strong was at diluted Adjusted XXXX were the financial joining results. another net new for double-digit with financial XX% I'm exchange same net thank again, call XX% PRA, actual million, Adjusted Health on for XX% sorry, the for Service year-over-year Legacy the of was a $X.XX exchange discuss and And rates $X.XX, increase Thank versus acquisition. was constant impact a our foreign exchange everyone. basis. third increase XX% foreign currency unfavorable Sciences compared to year-over-year net of you an the to for revenue Health increase a the preparing for income earnings, increased and approximately when revenue, Good of per quarter period of of and share acquisition business income our third share third that -- growth comparing foreign an Revenue Symphony includes quarter constant from which the morning, quarter

Health In impact date Solutions from of Symphony addition, these included results acquisition. the the of

basis addition compared $X.X awards at and finishing resulted recorded of a $XXX of XXXX. representing to year-over-year, of a revenue. when third new The our increasingly X.XX of XX% XX% new net net We approximately increased business has times on the service billion. approximately million our X% business backlog -- in New awards, quarter approximately book-to-bill sequential

will awards the process be and acquisition approximately with new used with Symphony we're the previous of methodologies awards continues that of our exclude business awards biotechnology quarters, our our Health be consistent and and coming new still approximately of finalizing awards new Solutions, business as sector. backlog. pharmaceutical XX% record sector backlog business to new to diversity from impact report and in coming both reported the XX% Our the The of of from the

Our client to XX% representing base five top our well continues XX% approximately diversified, with also total our with for largest of the revenue. client clients total revenue be approximately representing quarter, of

biotech to serve the to steady. pleased to be development-stage small process. we biopharma Solutions and of during activity that biotech a integration the amongst Symphony range acquisition continue clinical completed we large announce clients started I'm have Health from quarter to our We customer trial and the of broad continues

Health on helped discussed and ability of we cloud-based integrated using been XX analytics As delivered for to years, provider has our equipment. PRA leading insights a has our Solutions the as data data Symphony a last and access solution. trial is data patient clinical optimize almost into call, their patient identify health clients

family. nimbleness many actually is new able am PRA. to sources, agility acquiring of if variety Symphony first-class delighted built. investment to in Health PRA and Health, that they've our that data our makes Symphony a would data confident pleased our obtained with reaching to than be have expertise in-house Health's can Symphony them provide more referenced state-of-the-art, would perfect from I we the capacity was data mention and outside Symphony and required still quarter, therapeutic an we're also to at As we just I'm support to substantial business areas fit prior platform, which including do have we platform I Health welcome to it solutions them Health was its last a source. team's to officially and and Symphony customized we'll leverage now the platform

movements guidance of of result in of foreign a our billion XXXX Health exchange the year service and Symphony to acquisition billion. range we of $X.XXX raising a to in are rates, full $X.XXX As the revenue

to our commitment guidance to Sciences. of per in Linda increasing I per would the additional about entire closing, range guidance also like to continued and their share In staff will are adjusted share. PRA to our clients call. $X.XX We Health $X.XX diluted year later current thank our revised provide the for a our earnings for details

We are delighted quarter over our who I hand remainder this call Officer review to of quarterly well-propositioned Linda financial for financial Chief results the Financial like our the with in Baddour, detail. will would and now to XXXX. strong more results we're

Linda Baddour

Good Colin. you, morning Thank everyone.

at currency year. For revenue compared of of for service the on constant to million XXXX, quarter We've third for the XX% $XXX.X million our XX.X% revenues grew service consolidated quarter quarter rate a foreign reported and last $XXX.X exchange basis. same the actual

as other slight to a compared percentage quarter XX% unfavorable of companies, service last from revenue XX% concentration year-over-year. for companies. support our Solutions' current excluding service XXXX increase pharmaceutical $XXX.X base at On basis. included and XXXX were from growth. XX.X% We consistent million was companies, related XX.X% as the revenue in revenue our third compared related foreign to of constant our Revenue all XX% our second quarter to the million costs biotechnology Symphony increased the and costs quarter quarter million inclusion not of service approximately currency percentage of third effectively is to revenue legacy same year-over-year of in approximately of in revenue of as functions. constant our of in costs hiring quarter a have mid-sized of from the SG&A basis, direct large year. with cost currency our staff from expenses $X.X As efforts $XXX.X $XX.X is PRA Health million. actual last service revenue pharmaceutical in This The large rates a billable to and an XX.X% in primarily portfolio of percentage leverage approximately were million revenues earlier, revenue. XX% of third XX% direct derived or year. for Health the same effect decrease small XX% our continued Colin to increased studies XX.X% administrative of quarter last mentioned quarters. and foreign Solutions The companies, service on Direct XXXX the same of The XXXX to our the were year. revenue prior biotechnology selling SG&A in of Direct an of costs $XX.X in impact approximately a Symphony costs on compared did to future quarter direct exchange increase by currency service a

in million for the interest million During quarter million income $XX.X adjusted to Adjusted vested share quarter compared XXXX. other not not to $X.X incurred did operations to we an per expenses of third days should performance, net per does grew same expenses of year. in by of operating in of in to quarter a third-party noted income of the diluted transaction-related sales XX.X% compensation transaction-related $XXX.X to increase XXXX. lower the $X.X to cash operational related to whose release same ended our transfer related million months stock-based necessarily our XXXX. our revenues last of the XXXX by XXXX, net in operations driven capital on in increased expense three related growth increase $X XX.X% per XXXX, provided It third the of consisted period were share of changes the year-over-year expenses certain in expense, we Contributing costs compared an from the XX, million Cash income, quarter of secondary and September fluctuation flow $X.XX to our outstanding. in Symphony decrease be service $XX.X provided items and in quarter interest and was XXXX working improvement correspond cash incurred of September restrictions offering. Solutions, $X.XX results, any result options by which share of was the Adjusted increased million third The third million. Health of of incurred acquisition the excludes of the to expense. $XX.X incur fees for reduced that net our operating These period-to-period

compared June compared million at days $X.X and versus facilities, information $XX.X September September the million our and Our expanding period days in enhancing of during were sales our to current same our outstanding capital our to expenditures increase The to our technology, as support XX, Capital reflects infrastructure investment XXXX. at continued XXXX, XX XX, XXXX. growth. the in days XXXX, XXXX net expenditures XX XX at quarter for was XX, days

and versus was $XXX.X third Net by September balance million debt to less debt cash million cash as $X.XX the was compared million of XX, our in billion XX, Our variable increase debt. shift defined quarter September debt at our borrowings our total debt the in at is outstanding, end was overall a $XX.X debt amount at of acquisition to $XXX.X Symphony which there equivalents of held to position, Health XXXX net related been the XXXX. cash our-- of Because in of attributable The increase the Solutions. fixed has

We the are reduce this that having and by ensure fourth the rate currently our of end working interest quarter. we to exposure anticipate resolved

geographic dollars consistent denominated in our the with North XX% denominated our XX% XXXX, revenues our of America. concentration total is revenues XX% dollars, XXXX service of were expenses Regarding in in consistent quarterly of our XX, September At earned which with revenue, prior were were and service of U.S. levels. U.S. and quarters

exposure continues to hedged. euro be Our naturally

to remainder of rate. an our guidance acquisition, of to rates of effective annual impact exchange Health updating the for XXXX, we on Moving and our current tax the the foreign our the adjustment impacts are Symphony

$XX includes updating between service service revenue to update and This our $XX million and $X.XXX million Health. $X.XXX between estimates are We revenue related of billion Symphony billion.

and are per share between earnings $X.XX diluted GAAP share updating share. share per to $X.XX and per net estimate between $X.XX and adjusted per $X.XX We to per diluted share our our income per also share

euro a September foreign British X.XX. rate assumes exchange pound other XXXX. currency X.XX exchange are a guidance XX, as Our and All exchange rates of rate of of

from tax XX% Operator? your effective be are remarks. our prepared questions. That concludes happy XX%. we now annual our to take And Finally, updating we'd rate to

Operator

Jefferies. Instructions] Our Thank line comes question of Windley Dave you. first of [Operator from the

now open. Your line is

Dave Windley

questions. Thanks my good taking Hi morning. for

were had management data how your kind mentioned and you that talk running prepared that those about in that Symphony into -- -- Colin, you come Could just about of there. talked you capacity solve kind completed how constraint? So, that Symphony constraint the helps buildout a of and things around remarks to how you that together,

Colin Shannon

all And data acquiring to the a really that significant volume becoming constraint and hold amount that adding to that capacity, look it the overwhelming. capacity. starting retaining quite of And we're as reach just Well, of was was you other need infrastructure it just servers wasn't more data. or actually at is

and investment whole the structure really a very, go it's and a it's at new And and all You very and structure expensive. relook have rebuild. very, move very to cloud-based to significant into

so product had, it different They it's a so their Symphony lines. know actually don't can huge base. could that much what have a then for -- in made very one that in data few synergy last so They us. they way. years, agile us So, got have platform that investment use of they a the capacity all you over one and use more allows or and And they've it significant silos resources, all got in to their much, combine have

Dave Windley

Super. And data a years. was for XX also there or about -- patient you then I think eight using comment

use just think is use you has years the provided over of that What that important data. data? duration what years. you In have to words, learned but us is understand? not I data, -- XX do for to the how the you you said think perhaps that how XX What about you about experience for other

Colin Shannon

I to I It's probably the than growth is reflected that's mean next important numbers. really double more Well, the our think in best the CROs. attributed

data to So, would -- single just very sure many the but traditional there's the It's information out journey. optimize, that way old and that as obviously and that oncology. the approaching we're don't our that. appropriately. evidence using the only the off want like -- using a what pleased we're spend just money support -- the it's we're we're make thoughts. that to go source, we perceive can what been in factors challenging and started we really they growth and into doing I data their It to long we We clients timelines, sustaining

And we've and data lot to still continued different We we'd needed the analysts in therapeutic of the Symphony some we're couple which and expand and support the data. quite new that into that on really of we're sources our we early really of understand analyses areas. it's Solutions There's sources, lot time spend at other looking taken group we're to with all do worked a really while master so a more very is can the of a for And years that data using us Health before lot we to And a a more acquisition. that data expanded data nuances help really excited ways of why the really think stages. doing. about

really because things to of future. us us doing that forward lot take we've experience now help accelerate got in will that we the now think just a can to I -- some experience and of we're the need continue to use that

Dave Windley

influences that carve next have or One you'll Is able Appreciate -- And XXXX. treat separately? and your that out an there be reimbursement that that. understanding Mike. recognition It or pass-through It's ruling report does kind we starting to of to or for won't starting be you'll year? that impact might revenue clarification how even reimbursement PRA might be reimbursement understanding last is revenue my question: the in accounting of that Linda for

Linda Baddour

You're to them. discuss there just audit we had yesterday to -- that basically meeting is correct. committee with our a and out ruling There

when call we'll certainly how ready guidance to are recognition that's And revenue of we how we're prepared in believing be to everyone be our X. clarification January but is managed. as give evaluating going is to our going to report systems fall modified you on we're to that's to and to We happen We've that to according still for go going XXXX that more now, going exactly you out, revenues. in service February include have will year, our announce about what next

as revenues. be out pull think I the you'll it to, service be an analyst, true -- still able that

going complication. it's going the it's think our change just little a business, give way look don't at you to So, it to more

So, in we actually way those the those have that historically managed advising. the forecasted and is pronouncement

a just around. it's us, moving for of it So, matter

think I be we're So, going okay. to

Dave Windley

All great. Thank you. right,

Operator

Thank you.

comes line question next Our of Tim Evans the Securities. Fargo from Wells of

is Your now open. line

Tim Evans

account not? to secondly-- it then you're sounds you're going business. why And where on different make fairly a Linda, question, Because segment. quick a it's I a to separate Symphony. And Just Like, it going not for like guess,

Linda Baddour

Yes.

you call for research, have We'll of is two that and XX-Q course, the for solutions. that footnote a -- clinical answer and a you first shortly are filing be our is disclosure. service have reports segments. the you'll me describes business on. We segment this going to actually the Let before other move the which is revenue data PRA One after legacy

further gross will SG&A reporting we're not profit, not but and of how or We direct that's revenue managing costs business. anything and the be because course,

Tim Evans

each, gross each. So, get get just we'll we'll for then clear, to profit for revenue be and

Linda Baddour

That's correct.

Tim Evans

made side, Is a going on me the made were that kind the the all that you read that? Okay. comment to booking of that remarks the of bookings on that -- was you roll And right think then prepared together.

Linda Baddour

disclosed you've we've evaluating today, that Currently, when next for how that any bookings in we have Symphony months. February, have we're backlog account -- for in reported. our certainly we'll announcing going do what not three forward. be any call or we And be over moving the to We'll

we've not so weeks, for completely on clear had that. going so only a few we're the how to And do we're acquisition

Tim Evans

be look overall synergies we -- that Okay. your XXXX, talked, last us can accretive And PRA Symphony had it before dilutive or a is when was Symphony margin? some the just and business. finer margin can thing point that sense you the of But into I general -- kind anything, whether a would last what then would we give quarter, cost any sense as to or you affect whether of put how the of margin

Linda Baddour

much [Indiscernible]. on PRA now, margin the with par right pretty It's bit a

Colin Shannon

Accretive.

Linda Baddour

Accretive, yes.

Colin Shannon

in just And session next planning process. just we about few do integration the We're started a the actually to weeks.

next for our we'll really -- obviously for some finishing at and guys year. be really actually and [Indiscernible] more know the allow not little investment higher call, looking PRAs, we're certainly showing growth but haven't still you -- to too in off bit We're Symphony than XXXX -- get so it for the focus we're working -- little to hoping a give on in next be margins, what first it's because the working with bit a going year. really -- a We budget closely nice to still you ourselves. It's but margins We'll probably them. much the what, the there's of looking for leverage, through sort finalized color to we're

Linda Baddour

be we mentioned, be because to And that because merging we're forward be the cost. visibility basically disclosing we'll line, of we're to lot a their gross going profit -- to really going what you as we margin have into able is actual operating manage won't won't but

Tim Evans

Yes.

Okay, got very you. Thank much. you

Operator

And comes Blair. of you. Kreger Thank line John the from our question next of William

Your line now open. is

John Kreger

Hey. plays that kind will addition Symphony same maybe very your us early sticking on you much. theme, XXXX of out Thanks can of it? kind the with impact and how maybe Colin, perspective give any from thinking how just Thanks.

Linda Baddour

to prepared really about John. XXXX now, not talk revenue right We're growth

again that in be providing February. will We

best Symphony you're to when is the for Health-- your it think relates I looking do models to So, at thing you when

Colin Shannon

next mean I sort I would of teens them as to think revenue they base with low growth and start for always a year. just -- about like start-off something good off

expect the do together situation. and advantage to like of low-teen -- pretty really I But together XXXX to not that. give We give looking think have way we've still idea too going that's like us like. We're looking we working to a as accelerate growth to of at to it's yet. what that early done is take how mentioned, And go plans we're conservative. them

are consistent a million Although, up awards, new for so looking you $XXX us. backlog, from our can very business substantial pretty solid building like net we're it things see

John Kreger

of teens the PRA? comment That's kind just you or for Symphony that made, helpful. is low And legacy for

Linda Baddour

That's for Symphony.

you Symphony that If you forward, want look at Health I would at low to look moving the would say teens.

John Kreger

of Got mid-teens? to you would of feel it. about -- kind your And sort do legacy sustain PRA ability how

Linda Baddour

at going this point. to on that comment not We're

John Kreger

last then one And Okay. one.

your versus reported, the If at of just you Did for you would interesting of clients? strategic just traditional kind FSP awards thinking about and that think the you relationships quarter versus those any and characterize about see awards the looking new other you how in patterns sort quarter?

Colin Shannon

Overall, I previous It was very No. how are it they all measure out, -- -- the similar it to -- relationships, flushed you two do We've We've nice as variable awards a they -- mean quarters. -- a it's quarter. obviously, clients kind got awards were new starting new not know, new this about did very, have Europe we but very lot but of well. we client mix. was steady. very actually closely. very

pleased. very were we So,

across that EDS sector We strong part our smaller has business, perform good really we're also pretty a know and started pleased. very, saw our but of it's I and to Board, quarter. very the

John Kreger

Thank great. Okay, you.

Operator

Thank you.

Erin line of the Our Credit question next of Suisse. comes from Wright

Your line is now open.

Hong Tran

Hong last for actually is currently of And year? One like-- Symphony How since you've Symphony. closed embedded for the contribution surprised on This this much Symphony is guide Erin. question on about in sort quick Hi. you your anything has acquisition,

Linda Baddour

I'm It's understand-- to hard sorry.

Colin Shannon

to we're [Indiscernible] not I'm you. sorry. hear able

Hong Tran

now? me hear you Can

Colin Shannon

better. much That's

Hong Tran

about Symphony. the Sorry for any potential to question guidance attributable year? surprise you've business your the One is And for opportunities? you How that. since additional completed the about last much like synergy acquisition, Symphony [Indiscernible] currently

Linda Baddour

between did has in and my information. I $XX were business Health. far we revenue forward that about been itself. update Symphony We're very have so service but for pleasant revenue the as integration pleasant far includes Those business the in surprises, million the we've the to of our seen any that And my related $XX so have the like still guidance and was very everything remarks million optimistic Health surprises, comments. evaluating as going we're Symphony

We per to business. commenting will not earnings be share related that on

revenue measuring costs. and be mentioned, direct I As we'll only

Hong Tran

great. like Any soon the And conversion biotech think Do about backlog we future? should question. last the cancellation or it's environment normalizing on funding in moving forward? one comments then How underlying quarter? anytime this think Okay, you. Thank you [Indiscernible]

Colin Shannon

points, it to some studies converting actually mean can been on as enable growth. I startup showing startup. It the very our -- doesn't very, conversion rate. we're we're convert with I lot causing depending it of very really percentage and fast. high study And is vary think that it's a growth more pleased mix that good backlog which

So, see you rate, again. a the pick more normalized little start maybe book-to-bills conversion a see to the you'll up when up start slow bit maybe and to back

that differently it obviously And we we we formulaic by hard building it's model very to study a but it study. look do so every model we because to not so and single And number try work know at we -- revenue up, it make to into sure is see you're looking can catch. -- you the that converting is because into while from not backlog that and is and it converting story our coming coming

Hong Tran

Okay, Thank great. you.

Operator

Thank Our Michael line next you. comes from [Operator of James. the of Instructions] Raymond Baker question

open. now is line Your

Michael Baker

thanks Yes, a lot.

comments around is the when they that. earlier like in and the your we customers some what talk of execution pointed clinical the to of One conversation, And we operational your get what if is consistency to the trial could that the some in to are give what business? us as you curious of side. -- your of you've I'm believe the you done on you approach differentiators terms you data

Colin Shannon

and and what of mean with of more very aspect. I our client. our set [Indiscernible] we our We sure value we've it's -- pleased and done. It's a our company try are we We're thing. [Indiscernible] we about [ph] much the closely. I way the our done. express team a line with a want. a because things staff care the and -- get can number it the shoes that's that we mentioned testament created make was clients staff people want data it type that The a attitude get development top we It's do differentiates asking have patients. we and in And is how current together. culture to and company we we very our great the mindset, say fit work we culture -- tools, use but a always mentality can one approach, much our achieve others to that we that built clients feel and lot it reason is was is and to the that And to how We're their hear and that very align of build a to the culture is then compare team of do very of we the our for our Actually tone ourselves is it's our our only particularly we of then us deliver and culture because hard a of we choose because that way us they difficult thinking by against and a you're of so we a our all more patient-centric. best that of they answer put that how executive needs we me to demand It's try we clients. question to to can good

Michael Baker

that thank to us level, then an the the give you inflation? response you specifically CRA on comment, what first is can I another seeing? overall update for and one at I labor and question also on the And had you're --

Colin Shannon

almost the part bad market our quite little. Actually, has on of the hiring bit. to resting we've actually. I extraordinary is growth tight. we're year. X,XXX not is CRA not a we And as in monitoring, been little actually The hiring as been people too more them of the mean I hiring adaptive A that be this to is lot CRA industry it's move are a but that going seen CRAs, burden maybe resting certainly think

wage for that has not is with quite and inflation as not therefore been as actually bad range years. -- previous the as it's tight So, inflation

the because does been a that. we to new we about meet So, about have ahead. We pleased trials cutting actually forecasted lot to we're impact more are pleasantly still of It our cost us have they're is hire start. to but that And trials, than we've these of weeks part the idle -- in we when start enrolled number you new patient until trials. we of getting a got really place, a start when the in for hiring demands issue

So, on trials little that's starting there's causing brand that. of bit ongoing a lot of a pressure new

pretty actually of doing lots that at costs there's we're are fair we to feel. So, things the the moment --

Michael Baker

the color. Appreciate Thanks.

Operator

you. Thank

from of Our America. Bank of next of comes question line De Bruin Derik the

open. now is line Your

Unidentified Analyst

expect behalf I the on wondering Hi. to first whether color see gross question or are in wanted Thank This the you not -- I as on continued was cycle, you. is on is compression. quarter. provide far And Congratulations if little could you a gross My as margin. ramp as the the would and [Indiscernible] hiring where margin of Derik. you to

Linda Baddour

but get thank we've had to our pace is So, has keep which our on to ahead gross margins. And excellent your some and of for With challenge it. a you contractors, growth, to also hiring it affecting the we've of not ahead ourselves, question. had hire been get

so to I we're hurricanes CRO visit the could and other Puerto and the QX, fact but Rico bit some enormous, in same did won. weren't still maybe like did then QX. expansion it's we see around -- mentioned, have were effect I of and little great Texas. -- know have say good as every the business that new around affected in of had there. struggle in all a those move hopefully we're like Florida I have, with hire have able but we But disasters in that QX. that would that's turn because going thing, from different bit a in to And bit to also ahead we headwind XXXX, we a a in FX around U.S. in of to $X.XXX a sites. as a be for FX, into So, It And it wasn't the -- problem of problem to we'll we the that we've we probably There's a see that but

Unidentified Analyst

gross the to continue SG&A has better leverage expectations you the estimates. attribute that? than to unlike our operational achieve you you. been than do control if order in you as of Got and it. could you've the you're able operational line, been what some And better to To SG&A grow. costs that Thank margin our undertaking then initiatives share And line

Colin Shannon

we're producing. to to is Well, hire the we growth. the nice area they're need not revenue leverage don't thing It's about the with from ahead SG&A one able because it

got costs further Symphony they've our -- some was see leverage optimize We a that. good try So, really SG&A. want business. we're room but an we about -- off we to and continue integration for never to are integration and obviously We've we so pleased savings improvement and we [Indiscernible], do this And with SG&A. that

expecting not to expect the but our second to synergies do we your of sorry, leverage SG&A. huge continue we're question? I'm So, there, what was part

Unidentified Analyst

contribution in -- SG&A then initial the the we better the in no, in bigger either revenue Symphony was you expected what Symphony: or that calculations, run it revenue before? the if a potentially In what you quarter I to having you And but if quarter. was so in did annualize essentially say, on annualized for run since than Or you mean I revenue it -- to were $XXX Symphony, Based yes. -- to thereabouts, with lastly, rate the from, communicated a that you Symphony -- operationally closed it. leverage, can let's higher you previous Symphony than answered expectation seems in may saw Yes third Is had order get seems those stabilize third like but our close that the you weeks million XXXX doing or past, the are PX expected. the or about deal anything three could like case? and

Colin Shannon

piece. through Well, we're the still Symphony working

timing issues. seasonal -- they've got like, more, and are We

parts of for are few and last the the quarter So, quarter -- year last the revenue. a weeks of traditionally the of a better

Linda Baddour

going -- my actually the I to service $XX And revenue our is when rest around Health. million that in -- guidance file for was Symphony then the take to between solutions segment only comments, be million weeks few and owned the our related we XXXX. $XX opening of in includes XX-Q, million afternoon data see that's which for And Symphony is comments update you'll So, it would this to you revenue we the our that of of back QX. $XX.X

Unidentified Analyst

mid growing teens it. before, got Symphony to attenuation Any conservative. growth? you qualitative based prior And being might Okay, high mean, on it acquired a XXXX, to as for teens. And lastly, like, in low be the to seems was comment commentary I the the by

Linda Baddour

guidance what evaluation teens. looking mentioned, but more at we our on we we that currently February, further, XXXX give be in move will. can But would we're early at and for in we we're you business, that for as low of As if update

Unidentified Analyst

Thank right. you. All

Operator

Thank you.

the from comes Capital question Abrol next Rohan Markets. of line KeyBanc of Our

Your line is now open.

Rohan Abrol

hi. Yes,

[Indiscernible] question there? of a FSP. color just trends not, versus commented seeing if And you they're on how proclivity kind share a oncology some of such areas you seeing on the me. therapeutic towards some Are quick maybe similar can from as kind day, bit breakdown? Just other some certain therapeutic show a programmatic of

Linda Baddour

therapeutic they've we as basically in previous with a haven't periods. areas, our of So, seen lot consistent been movement really

you'll change. to you disease not for our strong always there's area so a XX-Q, And and also really Oncology when lot basically, see also are that infectious afternoon, been CNS for us of mix be, look -- has strong very continues you as a areas. get this our at been and but the

Colin Shannon

not seeing client [Indiscernible] index of any Certainly have sort changed.

part maybe different we So, we're can't haven't observed really answer of it's question. just clients. that and set that a something of dealing the I with

Rohan Abrol

I that. appreciate you. Thank

Linda Baddour

Thank you.

Operator

Thank question next of Baird. from of Instructions] Michael Our you. comes Polark line the [Operator

Your now is line open.

Michael Polark

morning. to from Hey crystal million to the $XX want thanks. $XX Good million I clear be Symphony. on

include You quarter; the $XX million to said is million $XX in the that does million Or $XX that-- million? $XX

Linda Baddour

It does not.

Michael Polark

XX $XX this Symphony million fair? so the the so Is Okay, really million $XX fourth $XX is year to million. is whole that to quarter, million

Linda Baddour

correct. That's

Michael Polark

good. Okay,

tax the benefit now. that? technically, in the one think drove I that we then just what And quarter, got

Mike Bonello

income, just Michael. pretax dispersion of geographical the It's our

end be nine and us We of we obviously, have of quarter had a we obviously, where thought continue look it at out going the at months was it the year, but to the with we data to helps that. throughout view

move lower to pretax able some been just income we've tax to So, jurisdictions.

Michael Polark

you. Thank Good.

Operator

call no And at like I'm the to Colin for hand you. Thank back questions closing time. showing I'd this further over Shannon, CEO to remarks.

Colin Shannon

for you in thank our call participating today. Well, everyone

any -- please to If us. questions, contact free additional you feel feel have

day So, everyone. Thank you. have great a

Operator

gentlemen, That program. does thank Ladies today's conclude you today's in and participating conference. for

great have disconnect. day. all Everyone may a You