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12% Revenue Rise for IMS Health
IMS Health has reported a successful 2005, with revenues increasing by 12% and earnings per share 17% higher than in 2004. The company has also announced a $750m share repurchase, and plans to increase the annual dividend by 50%.
David Carlucci, IMS CEO and President stated: 'We turned in another strong performance in the fourth quarter, with each of our regions again posting double-digit constant-dollar revenue gains. Our 2005 performance was exceptional, at the high end of our full-year guidance, reflecting strong client relationships worldwide and excellent execution by our teams. We expect to continue building momentum throughout 2006.'
The results for the fourth quarter of 2005 and the full year are as follows.
Three months to 31 December 2005
Revenues $477.7m (+8%, +12% at constant dollar values)
Adjusted diluted earnings per share $0.40 (+18%)
Adjusted net income $94.1m (+19%)
Full year to 31 December 2005
Revenues $1,754.8m (+12%)
Adjusted diluted earnings per share $1.38 (+17%)
Adjusted net income $320.6m (+14%)
The percentage figures indicate growth compared with the same period in the previous year.
The adjusted results exclude a charge of $2.1m associated with the terminated merger of IMS and VNU, as well as certain net pre-tax income items (including $15m payment from VNU to reimburse merger-related fees) and certain net tax provisions.
The company announced today that its Board of Directors has authorised the company to buy 30m IMS shares under a new stock repurchase program. It has already repurchased 25m IMS shares today through an accelerated share repurchase program. This is in addition to 4m shares purchased earlier this month through an open market program. After both repurchases, IMS has approximately 11 million shares remaining under its current Board authorisation. It may repurchase these remaining shares from time to time in the open market, subject to market conditions.
In addition, the company announced today that it plans to increase its annual dividend by 5%, from $0.08 to $0.12 per share.
Carlucci stated: 'Our business continues to perform well, and today's actions reflect our confidence in IMS's long-term growth and profitability. The share repurchase and dividend increase represent a balanced approach to returning cash to our shareholders, while maintaining our ability to invest in our business.'
The company is online at www.imshealth.com
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