PRA Health Sciences (PRAH)

Timothy McClain VP, Legal Affairs
Colin Shannon Chairman, CEO & President
Michael Bonello EVP & CFO
Donald Hooker KeyBanc Capital Markets
Ross Muken Evercore ISI
David Windley Jefferies
Jack Meehan Barclays Bank
Daniel Brennan UBS Investment Bank
Juan Avendano Bank of America Merrill Lynch
John Kreger William Blair & Company
Erin Wright Crédit Suisse
Alexander Draper SunTrust Robinson Humphrey
Call transcript
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Good day, ladies and gentlemen, and welcome to PRA Health Sciences Third Quarter 2018 Earnings Call. [Operator Instructions].

As a reminder, this conference call may be recorded. I would now like to turn the conference over to Senior Vice President of Legal Affairs, Tim McClain. Please go ahead.

Timothy McClain

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

be Following for questions. available our we remarks, prepared will

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

results like associated due to XX-K risks and our XX, include begin, XXXX are and I'd forward-looking Factors to February our on differ Actual uncertainties discussed responses Risk in Form forward-looking this section -- SEC we that of by remarks with the February which remind XXXX. those the Before with our filed business, from may during XX, teleconference statements. implied stated may materially you or statements

Investor Our be results. consistent press release CEO, presented and financial GAAP risk financial discuss we over any with believe measure, portion available to our gain Colin the the like call earnings management providing in we financial our to and filings are note time understanding Relations that in to the A of would measures. no views measures the now results time a our calculated accordance the investor most forward-looking obligation reconciliation investors financial included how of in non-GAAP measures and to website. these from our is that are turn measures comparable of with Shannon. SEC. I in GAAP, supplement these and non-GAAP to this update complete call helpful Please Certain our assume factors with more helps We updated statements. on may will

Colin Shannon

a impact received new for quarter our for adjusted for to revenue growth and $XX that covering approximately the The income Organic XXXX robust and our excludes X% when XXXX. net diluted approximately was in growth, terms million, year-over-year quarter income of Thank rates. thank book-to-bill exchange of foreign the net produced to income RFP was Adjusted quarter XXX, increased of growth. for at of by conference delighted growth, foreign financial versus quarter which of clients. $XXX offerings net revenue the per quarter quarter represents XX% was third million, share $XXX quarter actual a business backdrop solid PRA, of net adoption third the XXXX. increase of million was business an joining XXXX. We awards, industry had $X.XX, compared acquisitions, representing approximately third new net third approximately X.XXx. Tim. Revenue business and approximately of call remains you, another new XX% well was third actual quite report at double-digit an XX% results. I of our the which the am of reimbursement Adjusted year-over-year service XX% revenue rates. morning, increase Net ASC net the approximately increase exchange the and be Good and versus third strong which our to you continued quarter

increasing Data has business resulted excludes of year-over-year, basis a new XXX, excludes our sequential reimbursement the approximately ASC finishing and revenue book-to-bill of impact addition on Our $X.X adopting from revenue of new awards excludes and XX% our X% net awards approximately revenue ratio our and segment. at calculation in billion. Solutions backlog The

previously our Data our Solutions backlog not segment. As we've does include disclosed,

from approximately sector the coming new revenue The pass-through or including the consistent not sector. from awards XX% our XX% previous and mix with pharmaceutical new are be of investigator we coming addition, in continues awards our with biotech business In backlog. to quarters, approximately of

representing be revenue impact of approximately well client our the revenue. our also for exclude quarter, addition, largest metrics client adopting X the to XXX. of approximately clients continues XX% Both representing with of X% top ASC In base diversified, with our

our quarter Solutions Regarding I Data and integration third results. segment's segment, am the with the pleased with

we half Sciences. pick tracking staff last of I up are and thank the our our we like In are commitment sales year, seeing anticipated, PRA continued to the meet forecast. for clients would to in well As our and closing, entire to Health their

the more results We XXXX. are remainder delighted detail. I with through positioned for would believe go hand well Mike the now our we who to will Chief Bonello, our of financial Financial results our over and in strong call financial to like Officer, are quarterly

Michael Bonello

good morning. Thank Colin, you, and

at constant our XXXX, third and of third quarter a on of third We excluding reimbursement Research Symphony actual the the acquisition $XXX.X X.X% a XX.X% in basis. for adoption quarter X.X% revenue the of of million million and million the foreign currency million impact Data quarter exchange currency of was $XXX third rates by to compared consolidated of grew of foreign the reported Revenue in segment quarter the revenues for of the actual $XXX and XXXX For XXXX. basis. Solutions the Revenue, XXXX. ASC XXX, constant and segment on XX% Health, $XX.X exchange rates Clinical for segment increased at revenue the

the compared Solutions third XX% costs currency we companies companies, Research which costs Regarding revenue. million the $X.X quarter increase increase direct metrics included concentration labor-related the large costs of in labor from expectations. of large hiring direct XXXX also companies, in costs increase $XX.X our pharmaceutical costs third from our $XXX.X segment, favorable in our direct Most quarter business. exclude in quarter our segment reimbursement handle small XX% in all $XXX.X the and incremental Unit pharmaceutical foreign generally million was companies. XXXX of XXXX. biotechnology other segment, Total increases adoption our of mid-sized included were to in reflect our XXX direct in revenue labor-related of with an of quarter from million to of derived in in million. and Data new to third concentration results. The the increase XXXX, Data a XX% for related were from line third biotechnology not The from our to our These and XX% Solutions of primarily effect costs Clinical were revenue

expense increase SG&A ASC the compared Excluding for service XXX costs expenses of to of reimbursement reimbursement the direct increase of revenue, the total and adoption revenue quarter an increase XXX stock-based ASC exchange related percentage year. revenue annual a is stock excluding the purchase of current in compensation XX.X% impact percentage XXXX of rate the SG&A for the of quarter of XXXX. during primarily is favorable related in quarter XX.X% employee expenses costs revenue, to in as in direct primarily the service adoption to and or of were as The the decrease of in third grant of fluctuations due our compared and XX.X% the a utilization of our million primarily impact were to increase plan. to stock-based the revenue of of of XX% an our program quarter revenue $XX.X third currency is and initiation in The slight compensation XXXX XXXX. the adoption of The third in third staff.

to the transaction-related of associated $XX.X costs with contingent During expense secondary These of vested stock-based August connection and estimated of XXXX, value offering. million expenses of million XXXX Symphony compensation $X.X incurred incurred of we with in the Health acquisition, transfer the release related options million. the restriction portion consideration related the consisted million third fair $X.X quarter our $XX.X increase to of of the of remaining expenses in our an on

XX.X% to we incurred increased the an the September and capital. for XXXX, per excludes XX.X% months XX, does XXXX, operating third Adjusted increase correspond diluted expenses third working to net million During $XXX.X whose for $X.XX Cash to transaction-related primarily XXXX. per optimization third September share the million quarter in our in million operational performance to of increase quarter operating in the The $XX.X of in changes compared necessarily ended in by to million. cash $XXX.X from period-to-period $XX.X of share results, flow the result the certain the income, X per was X of income our items share $X.XX quarter Adjusted XXXX. of which compared net XXXX our the was XXXX. in XX, months ended third of operations of fluctuation provided not grew quarter

third net XX XXXX quarter $XX.X days quarter the outstanding were XXXX. of days $XX.X Capital Our was sales at XX, expenditures third September million in compared million to the XXXX. of in

of continue to reflect support the and in Our our expansion our infrastructure capital our technology the information growth. expenditures to investment

less our compared debt cash cash million the XX, third foreign the was XXXX, outstanding, to Net as was cash total $X.X defined September $X.X debt quarter, by billion billion subsidiaries. at at $XXX.X of XXXX. equivalents, XX, Our was at million end of September $XX.X and which balance held

XXXX, principal quarter million. $XXX.X made third the we of voluntary During payments additional of

currency XX, excluding and expenses total reimbursement adoption denominated at the U.S. revenue, of Regarding ASC dollars. of our concentration of XXX the our September and XX% impact were revenues XX% of XXXX, in

be have are of in less in our GBP X% continues exposure Our X% expenses of hedged. GBP. than naturally euro to We denominated of denominated currently revenue

of ways reducing on exposure. work to continue GBP We our

updating As discussed guidance. release, in our our are XXXX we press

and of XX% constant growth We the growth billion, are to adopting reimbursement and constant impact to $X.XX and of to revenue. as-reported XX% XX%, maintaining $X.XX our between organic currency and excluding XX%, growth of reimbursement XX% excluding XXX of XXX adopting representing of estimated impact revenue the revenue billion currency of XX%,

net recognize $X.XX remind income XXX. create requires income updating Tax be net are $X.XX and annual inclusion XXXX, costs and to of per Act. that income entitled U.S. receive out-of-pocket expected $X.XX between to our I amount amount of between we XXX implemented reimbursable of share We We diluted share fees difference and per guidance $X.XX tax our expected per from will our the share. diluted the Cuts statements. to customers from of financial beginning we the in a rate our we calculation share XX%, are and adoption updating approximately adjusted the to Jobs ASC The anticipate and timing want may changes the in investigator the per our effective which ASC between and that of revenue everyone revenue the and in incorporates GAAP

from Act. there what related pretax geographic or additional the changes have and Our may Jobs differ if guidance changes Tax we if estimated of effective analysis to interpretation, if Cuts or tax from our in is are this rate U.S. the the earnings estimate issued distribution

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

a moment Finally, color little business. take Solutions more like Data a I'd to the to provide on

to $XXX approximately plans our the mentioned, of amount XXXX. progress, our is and the remain to hand we and our revenue for in of for revenue we'd XX, Colin our hit at this That XXXX segment prepared continue your given about Included will potential integration are that we million now September And be remarks, As business. happy guidance in take optimistic Solutions confident the concludes Data questions. target.


Donald first of [Operator line comes Instructions]. Hooker the And from question KeyBanc. our from

Donald Hooker

just I'll Symphony So realize the that seasonal. to all go that's the We acquisition. Health right data, very

like So business quarter. can for about that 'XX how and can some -- synergies as Colin, Maybe qualitatively, the of synergies. of talk in revenues a and more energy more potential I for cost synergies, big you early Is to part has going it fourth expect Maybe too kind the of cost performed company? forward? XXXX assume about potential there's talk kind you maybe

Colin Shannon

starting that would cetera. remain opportunities, that, Yes, they some some at see a do advantage we there. would infrastructure with coming over immediately. seasonal In built. up the planning a as We that that a with the and end the expertise see know, them the of updated let year. towards almost next number pick our We've, have months, don't we of for clarification had intend the any closely that, We therapeutic we to and lot have take of get the our year of and clarity lot absence like to history, modeling, typically some business, on be and to we you as look we'll we -- a analysts like faithful et to provided but of to working that

for we we that were so rest they where make sure the to pretty tracking that the And of be understood year. much expected we

for for are to do we own yes, we lot more future, course, opportunities see of excited So using a and our opportunity of sales the create additional teams.

Donald Hooker

your year next segment, earlier maybe I then, playing this about revenues. side And there my where I'll Can with those that your to there. staffing. kind is you perspective business utilization talk margins commentary are cancellations about that from forward? switch question, I maybe to the were of reallocate you of some able Okay. -- going now just staff CRO And a the helpful? you can are staffing larger some into to the suspect you Are see from regards talk from cancellations, of in gross are some up that

Colin Shannon

awarded, from shuffled that we of opportunities a of these noticing a detailed staff and more to is Well, are a we're but some been protocol, some little on, earlier of have that we've we into the discussions regard our just bit. has our seeing revenue, about modification lot clients program been what trend some getting and projects with -- and actually new that of there the slip with

team say actual staff the carefully. of organization getting and it did too managing is though to ahead to far immediate typical a elongating. so got great the And staffing award from not the that, very I've that start the definitely and -- start job managing time

the got And we of projects why cautious also careful We benefit some were of so about hiring. and were way very we these that bit. intended a start sliding the were little to were

position, seeing we're forward, these we move and projects very hiring aggressively are a So again. nice as


Ross And ISI. line next comes question of our from the with Muken Evercore

Ross Muken

So maybe, very put strong to terms business the environment continue and of then, just up book-to-bill. new you in

about full sort color track? So of the coming of RFP changes side anything environment. some the little the flavor win we to maybe, you sequentially of terms color in and FSP, just revenue awards and terms us I rate mix service give the of some or some the activity any give on are in a general, consistent, of on of business but versus differences sort can continues you or the or new the level think how as of from, mix think was know in of where

Colin Shannon

and Well, different, across pretty of not large would we're seeing anything mid-sized we're biotech, steady care, Sure. seeing much the that's sectors it pharma, all be pharma. of health whether

RFP with partly I that really definitely part seeing our on environment. registration feeling traditional deterioration faster it's project-based mentioned reason conversion a past of elongating strong slight certainly It's the the been think in the time. causing we're our last over from a business. that's I've product rate that's the seeing the strategic backlog of We're conversion, period But business a lot solutions been economic robust we're than flow. growing good actually

strong pretty So about the we're at moment. things feeling

Ross Muken

on given And guess, a Novartis trying I outsourced. a some opportunities, major terms of the pharma at of the the coming of of being just in like largest here as pharma, margin, some they guys new do opportunities. fact, some on all while change uncertainty kind the A big as environment cases the push in utilizers are some talking for big day changes are than just maybe pharma them biotech figure these some -- also how of changes, looks of a at still there's new you think different strategy you seen not their you had side, U.S. of about environment been the other CEO to regime sometimes R&D albeit out time, some in and although for we've operating biosimilars, programs. about large innovation out their get with of the it the there's for cuts a had you for bit of the to

more degree that wasn't you're and a So dialogue, previously? you to the active and come where may degree them how help maybe be a where someone of greater maybe outsourcing same translating in to in places thinking can about some into be

Colin Shannon

And of to constantly these an team have relationships, the very a colleagues our companies, are discussions we happens in and at [indiscernible] when active therapeutic of their large the discussion business no relationships change start prior to still But lot it's many in. months anything created pipeline. development lot difficult development pharma experts with who having with break and A happening. about many, of course,

always we're communication. So in

change our that's obviously we're client delivering about good And well sort ways multiple creates advantage and many know to, of we we state to do course, with always what look we But We new into individual We've and enough take see that very can of, we very what's diversification business in don't any for course, that particularly that clients. there. opportunity. going And growth, client of feel of opportunity always our have never we the diversified. tried rely of Of why of our because of getting things. mix.


And our comes Jefferies. the with next question line of from Windley David

David Windley

and kind point the like service, around the Colin, appreciate activity the your some -- of full understand I on what consultative comments on detail more your clients. your sounds some growth with about elongation, of around

Your the X you very is being little are quarters to you of the potential each have well? related conversion than you some impact this comment quarters mostly view rate in by has that on coming past? Would still more recent last dropped normal. has thinking bit as as your the Or a what seen

Colin Shannon

new have and Dave, folks, our possible. important Actually, as no. be have help program if there's they've therapeutic But help obviously thing as saying clients I part or we and whether of want the clients, that of optimization done mean, input it that, from the aid our the deliver trial, discussions we get the input, any quickly process. and them to need to we to -- best that's our operational protocol with most is we operational

we record that we're before awards. record as take that really, of consultative We and our -- our just and starts. have finding more it period not way business the It's changed that new really our

looked but spot and but are I really a as continue see might with But account at new the us trend. there's year if a certainly clients things, our mix just therapeutic a single not areas, to it's So noticed can't few. it moment, every been different I've and it for to look it's well. certain -- pattern at but for in modeling we'll next certainly help of a

David Windley

so Right, final moving it. on the point to

the basis that little because way more. conversion relative of bit in describe in to through now those -- go And stayed dropped last that where years the couple kind to for is of falls couple some to a a or XXX a as the Are the maybe revenue booked maybe have important you're for you of we've bookings this in are has points in situations we rate the fourth Our part, -- a of gotten a kind what way think of of or quarters, backlog, consultative quarters, where if conservatism you XX% of first studies about of I reversal to you rates expectation out CRA -- versus XXXX, ready seen had several revenue next should I range your the the in thinking row. in clinical a specific the the think normalization this in think quarter I'm the part relative in quarter. of even that conversion

Colin Shannon

change the We had couple pathway start year, bit XXXX. larger the little adjustments we're see be that to I And and There's where them. been going been pickup are beginning is up. than process. more the lot we've want awful the to little up of ever to pieces had it's studies of did part because saying really client, we've wave but of things certainly through in different scenarios lot can bit QX ramping to getting cancellations. a adhere that's of we're We that understand situations and moving. them done help to that a information. -- pricing it of think delay looking getting think the in got proposing an assist these XXXX, unpredictable our a any you'll in to that we've more of sometimes they I before more of a that and we We rebids in a And we've

before the little there. a sometime full and slide up see these we backed it would and of in when bit seeing normality in just position. probably to studies -- conversion stronger we're of obviously, really are see it when definitely, a by get to flow XXXX back But that So we're lot to again, it be get looking gets

David Windley

technology, qualitatively, things you quickly. 'XX. things more marketplace XXXX? has In feeling Last and in in half hopes in you were your that investments for in how selling some of changed and efficiency question, maybe second Externally, -- all the I your and think technology deliver at your investments some some resonating in to were are internally, are approach, capabilities clients there your the your with but that

Colin Shannon

is just helping it to of us things better do lot quicker. information internally and A clients better to our get

and technology then here advocates very into a clinical you can with to are using data help quicker that. work And know, as the we great so And the one been believer have for we much patient how closely journey help to of XX a patients help trials. biggest all understand of and optimize processes years, strong our we are our is and the clients done have get are and in trials

some better to continue and them we've is way type over derived it internal of only our the see dashboard of better will visibility actually doing, client a things where lot streamlines we things of implementation our helping on time. information give actual value have use and that used bit we the assistance been the more constructed and yes, that the we get that are And underway. the processes, So and that there and will and activity clients, a from maximum data amount focus

not year. the next it's we're true until this So to see year, started really certainly benefits but going

we for excited XXXX. are So


Barclays. question next our line Jack comes from Meehan of And the with

Jack Meehan

I was Symphony, area with just in surprised the quarter. I was because wanted positively to starting focus specifically. the margins that on Maybe gross on the

you're in of deal thinking landscape that platform? that in onto there, you things leverage terms and -- what of of set. other the the is an potential in terms terms give us Just to about to that, you can in the seeing wondering if you leverage And ability the similarly product as of could what in are terms growth update expansion way

Colin Shannon

of the firstly, out in cost first very year, mean, Well, it's picking lot it's I we've through a in we as slower, new see the pretty the and support And QX a the get we're opportunities various that pointed as starting up the of new strongly part at see that, and participated potentials and and seasonal, business, into fixed not closer it half opportunities starts lot moving of see it's various integration markets into go obviously, data well, opportunities you've provide our your leverage fixed real-world its past. in lot we Symphony a process, like the And stronger assessing once stronger. looking margins to we're Group. then to of quarter to a to start and covered collaboration is perform clients, of really as do QX. can and We actually cost, where We using things that other good in, opportunities. and we've really

where to ahead margins right on So got strong with at in for we carefully, are got lot the were that. of early. we've operations. productivity really it team's fact getting and overlook and I I we our managing we want clinical asset, of they've the staffing that think mean potential a great managed assessing higher that I studies do making see slightly very time done that all, to too the onboard and to and fact that our And the staff appropriately, curve, we're not going all obviously, the Again, just was right this while it but we was of the future. our in are job managing and within in when sure focusing a course, was the start

Jack Meehan

your of adding terms business? aspirations thoughts deal any just then, to that and continue And just the to in environment

Colin Shannon

There's certainly things the we anything, and -- we've overseas a few of looking and got opportunities for We're some looking ready at number where to and -- We're yet assessing contemplating. to lot been few searching solidifying on. been but proceed have we're and we've not do maybe more in we a are way from like a deal. we'd long fact we've type areas it any But year. all focus a identified doing of now, on quite

Jack Meehan

my the it's curious quarter a understandable backlog just growth with have your the I look margin in of of amount If the the Clinical year on Research as as of another on And folded, Great. you certainly hiring, side we the XX%. into I was of think commentary follow-up, -- terms over hear do pull it's we commentary expansion Data you that as XXXX? I side, together gross that Solutions can of

Colin Shannon

Well, said expand we given, look I've to that XX year around always target efficiencies. look for slightly we a we've and with always points basis as margins our

that helps just Sometimes, step the and when of we get help lot may with overachieve we appropriately. changes A bidding function manage times, us. it that new maybe systems tools clients like us

meet the pricing environment. just it retain So sure doesn't we making balance market that got to out fact and the with making the you're internally synergies that mean that we all. And we've


And Brennan UBS. question Daniel our line from of the next with comes

Daniel Brennan

and of of quarter, of in that if you terms But if just that in back there on seasonal. the the step I maybe color provide of said outlook in Colin some have you to anticipated number? Symphony, just know wondering more fourth you was gets the seasonality it's Mike, normal visibility color you that could any terms don't growth some you up that or So, to kind just mind, the go you for I

Colin Shannon

be. above how what in It's know one revenue don't it total could could more given ever the year fact. given before. quite color clear We than we I I've mean, be. I I've you told

Daniel Brennan

step-up, just it a that's big Right, all. implied Okay.

Okay. expect Symphony kind even take integrate basics use get kind differentiate the into offering of around offering beyond to clinical in ahead to really as don't further to we Maybe share? you around clinical back more of to your your XXXX terms possibly offering Symphony look an kind if of mind, stepping Symphony, the and more could ability we you discuss just opportunity to enhanced would and/or visibility of

Colin Shannon

we Yes, the reasons the well, we to of needed felt continue our one actually on process. become we could clinical very source as really part that That of using data. We've data why major was so reliant of data. this data, needed whole acquire that the we

data anybody to look we We we a started after weren't our backup history, initially realized you look using data source, had to offer us If we a going the the a it acquire as for Quinto capability on need Symphony. and a very together, we using did. realized looking of else the got get was data Mason before ago became we lot could we XX to when of reliant we've data and that and the be to source, been And it to all I and we but acquire made years using did we sense it. way company, and

data So there fancy been established and and tools evidence into we it's of become out. decisions based we We've in culture advocates we context. or anything, sure put based on our big on got offerings and any of that it appropriately make supporting used We've to make our as evidence, company use we've integrated data. not our we created within and the that data understand processes the part always we our

doing any we've the of growing been what So acquisition, working that that the past. applying just at in hard helpful to see we've we'll been because allowing don't and company. continue doing that us changes certainly be it's major lately in I it's the been --

Daniel Brennan

the such environment. maybe, how seems get just we on then And biotech as just is economic slipping. get It been also kind risk there's my the maybe kind but biotech some concern of the on one companies of today overall more is that there's it's -- there speculative getting robust like biotech that science a while, one other, of funded any weaker we big question great. robust that with are of those more the a environment some as picture Okay, The maybe is? is, if in just pullback kind funding if --

biotech types robust guess, it's the it to science, you of Is kind the Or I company possible going So customers. companies that's high-level the be of lot do way a of of of types to more there? is booking just quantify in very of of a it's kind of speculative saying, a you're seeing, sound that feel there funded? the type robustness

Colin Shannon

a get whether any Well, when conduct we can take assess We get completed. it RFPs, carefully to just and got we don't trial study. actually we've

of that don't some If because then a possibilities there's trial, achieving have disappointing maybe you're a as undertaking client. it no mentioning strong biotechs point you're

bid data the important on how assessing to science, least don't is use be particular we'll able thing at trial not. So do delivery. really it's is proceed the to at look can the client conducted, the trial. or we help want can part the to And analytics would If operational we of we at we the be we a whether feel then that, information not successful the we look


next And our De comes from question Bank line Derik of Bruin America. of with the

Juan Avendano

opportunities runway of In cost, also behalf are where may doing company the you seems the on tell specifics of on This to couple the Can Derik. and from last benefited been have the focusing much is about the more of Juan some quarters, how have that reduce systems. margins may you like you've it there? on us internal things more

Colin Shannon

a Well, lot systems helping alleviate our manual of of labor. a are lot

labor use And of lot awful we'll of on manual actually next spending to hours labor a to extra avoid then, the extra be incurring. and situation. stronger we're that have working incurring We that's the we're one be so systems we're we'll still over that in that And an lot area still looking the really improvement year.

choose we our work still -- faster form a the that streamline they a while and in So using lot to reduce of much and opportunity see processes doing more to manual lines help and way. helping work

Juan Avendano

business. on Solutions And the then, Data

Symphony annualized. you this normalized standalone business Can long-term on basis? that -- acquisition for growth has revenue us what now expectations your the Now a remind organic are Symphony that

Colin Shannon

being we that that adding [indiscernible] and was looked acquired, actually the that minus and at when company. modeled some it and organic. I when I and we that a beat saw mentioned growth how see even with business it the acquired acquisitions line normalized opportunity typically certainly the But we growth it was with along can feel felt We our track little that match of current current We or business. maybe the Well, did that we help maybe our with in to bit. this would


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

John Kreger

on up that. follow to just Colin,

you Symphony your think back revenue of core I growth bought mid-teens. was when in clinical business organic your sort

mid-teens I'm be So do right? you grower, Symphony kind that a feel like like if remembering of -- still feel can

Colin Shannon

could digits, We be certainly feel sure. it double for

I that's correct. think absolutely was that way John, to, I alluding

John Kreger

cancellations similar then, roll Excellent, the of of some sort in it a okay. And to growth -- your forward year. the bit clinical of slowed if you earlier the think the business, has given organic

of the business out years, about of sort think in next the double you that, couple settle are that you can digits? comfortable low As

Colin Shannon

solutions that to low so just we they a But we camps one have and trying the obviously continue business. Well, sort and partnerships, that -- to expand to which of registration the we X and we we high of business it assess to what was because expand do our to look out can that's client when kicked I mean, seeing we're we pharma we a effects in to to part provided of of strategic still already. trying acquired down lot teens, in to continue how new want strong the that. in we're that's continue looking bring that difficult might -- to see are just that's double. But goal starting element see there. we're yet product happening. course, explore our is big quite We're to new year. business not But even And to forward -- that

up in very, couple time, disappear. very It's got next I the positive. for anything seeing backlog, of strong this things years, start some are So we're seeing not looking we've mean We're elongation the are conduct we studies finding shouldn't leading basically about they're rather way optimal doable discussion. like at -- It's done after all. to be have trial than not a not to it actually very all

and So we're them of fact an added But continuing just that the lot through some changes these we're helping we've new processes process. we're that seeing maybe on clients awful and there.

John Kreger

just one last then, And Great. one.

what the of next through be, your flowing just priorities that about think you P&L? would CapEx the years, would or investment couple spending If either be of in terms

Colin Shannon

would we to our might data of capability We opportunities And see give of advantage market us like potentially be some solutions. to that the want of. take take acquisitions tuck-in could advantage there some that

our so value. I and that's see Asia, high done a lot certainly well like organic areas And of I looking be that of acquisitions, technology, to add can that more and internal in now. see to consider some lot something resources. see capabilities just organically. as And being that growth. in gap we're a in would in that streamlining out a we're expand do and expand to that still We're markets the we as functionality We're through still room that we're significantly as don't working continuing building our

our that they're trials want help the doing. We way can do something in out. of able we'll even from better to So of that clients to them. me to years couple we currently forward, be and client continue the the a you've become benefits long they actually -- we that faster I clients so get do oriented, to that derive than think give might, some to our more will sort actually future, the can And look -- visibility there, a go clinical enhance asked and at so really looking point


Erin Crédit next [Operator of question the with from line Instructions]. Wright And our comes Suisse.

Erin Wright

When out any news that comes seeing? seeing sourcing that saw potentially of they're you're more. you're environment in or instance, the terms outsourcing that trends outsourcing from I broader RFP it guess, for sort in there, there changes to of We

the you're Just standpoint. of noting outsourcing trends demand from curious what of an in terms broader kind

Colin Shannon

the we what think able what then, talk solutions really solution both want our our offer about objectives and clients to offering needs. the to about service a nice thing that we are. strategic -- And flexible a actually meets able their approach division our them flexible flexible I with we're understand to to product registration, we're with our that can to

have they to So there of does type outsourcing, but lot internally. them do then give thought I is time don't agree modifications. because to be of take can to cycle lot It process options longer a a what these it some all mean, options.

of as this discussions and cycle these very it actually a So onwards can very long time. a happen to some decision. long time at we've period and And -- anywhere conclude a typically or recognized senior levels year from take over of

that needs. to to there's meet for time, shift out So of it's a of our a there job is figure serve trend is so of all how best me say and that the client's -- variations because and lot to the hard here

them. they in look move advise look we to clients want and and how direction for best to help we continually our to see support what And so to us

Erin Wright

a any the broader great. or rationally? competitive in you Okay, pricing sort seeing are fairly environment And changes of behaving then, landscape

Colin Shannon

have in where that it's BD ask In as But said behaving pricing been always the they always said a few past, done. team a that there's saw I've and before I silly question quarter to occasions this my the rationally. last call, they some

an you the issue. hoping to do get the caused whole longer-term to to I'm want is because a pricing trend them these not industry it then trials, last So and that's thing

I'm So just my on data anecdotal are hoping team. of that. have sales these oneoffs, fact and It don't of from lot a I

question, you thought that some of a thoughts. with I'd I just just So share


question next SunTrust. with our comes from Draper Sandy of And the line

Alexander Draper

a I've on of asked, little questions Most been and my got have late.

just to that? revenue but synergies. literally this sales people Or I benefit leverage guys leaving of get access you addressed know I update sales for there you the to completely if because -- the got pretty have Colin, So, type the to trying much, were integrated then remember and cross-training don't Symphony, any to correctly, get start alone leaving around. wanted an cross-selling, you earnout, you've I it year trying is them if alone. can done your you and they've capital, this doing

Just what's that there? on how on wanted -- an update going

Colin Shannon

been are we more with You're much data we, started there's Sandy. absolutely or from new and we We've closely but they some that and need. supporting very in trying be functions And be The working them there do them lot to the working And when people our some closely areas, closer can go We're relatively getting there's right, see to actually seeing. other that we we we'll for these really and regarding them and support left good how learning see solutions we helping looking after. sales more that each just that alone, opportunities out IT the we're to a less flesh but and with plan, opportunities. fruit our group as in hands-off, optimize collaboration. of talented have people XXXX are the And other. on process, each low-hanging do synergies

the about next of we're quite beginning So optimistic year. actually


call back I And turn time. I CEO, questions to like over to would at no the closing further show for this Shannon, remarks. Colin

Colin Shannon

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

a any contact you free to additional much. have of very you If feel hope you other the day. We Thank rest us. great please have questions,


This you gentlemen, and all conclude participating you today's thank for day. in does may today's conference. Ladies a program, Everyone, great disconnect. and have