RALEIGH, N.C., Feb. 24, 2021 (GLOBE NEWSWIRE) -- PRA Health Sciences, Inc. (NASDAQ: PRAH) today reported financial results for the quarter and year ended December 31, 2020.

"I am delighted to report fourth quarter revenue and earnings that significantly outperformed the updated guidance we provided back in November. I am also excited to report another quarter of record gross and net new business awards" said Colin Shannon, PRA's Chief Executive Officer. "We finished the year on a very positive note and I believe we are extremely well positioned for the coming year."

Net new business for our Clinical Research segment for the three months ended December 31, 2020 was $872.4 million, representing a net book-to-bill ratio of 1.42 for the period. Net new business for our Clinical Research segment for the three months ended December 31, 2020 including reimbursement revenue was $1,437.8 million, representing a net book-to-bill of 1.80 for the period. Net new business, excluding reimbursement revenue, contributed to an ending backlog at December 31, 2020 of $5.4 billion, an increase of 14.6% year over year and 5.6% sequentially.

For the three months ended December 31, 2020, revenue was $873.5 million, which represents an increase of 9.1%, or $73.2 million, compared to the fourth quarter of 2019 at actual foreign exchange rates. On a constant currency basis, revenue increased $64.3 million, an increase of 8.0% compared to the fourth quarter of 2019. The Clinical Research segment generated revenues of $797.5 million, an increase of 10.0% year over year and 8.9% sequentially. The Data Solutions segment generated revenues of $75.9 million, an increase of 1.1% year over year and 18.3% sequentially.

Direct costs, exclusive of depreciation and amortization, were $437.7 million during the three months ended December 31, 2020 compared to $386.1 million for the three months ended December 31, 2019 at actual foreign exchange rates. On a constant currency basis, direct costs increased by $47.4 million compared to the fourth quarter of 2019. The increase in direct costs continues to be driven by increased labor costs in our Clinical Research segment and increased data costs in our Data Solutions segment. Direct costs were 50.1% of revenue during the fourth quarter of 2020 compared to 48.2% of revenue during the fourth quarter of 2019.

Selling, general and administrative expenses were $120.7 million during the three months ended December 31, 2020 compared to $103.5 million for the three months ended December 31, 2019. Selling, general and administrative costs were 13.8% of revenue during the fourth quarter of 2020 compared to 12.9% of revenue during the fourth quarter of 2019.

GAAP net income attributable to PRA was $51.3 million for the three months ended December 31, 2020, or $0.78 per share on a diluted basis, compared to $74.8 million for the three months ended December 31, 2019, or $1.16 per share on a diluted basis.

EBITDA was $116.8 million for the three months ended December 31, 2020, representing a decrease of 6.5% compared to the three months ended December 31, 2019. Adjusted EBITDA was $152.5 million for the three months ended December 31, 2020, representing an increase of 2.7% compared to the three months ended December 31, 2019.

Adjusted net income was $101.2 million for the three months ended December 31, 2020, representing an increase of 2.5% compared to the three months ended December 31, 2019. Adjusted net income per diluted share was $1.55 for the three months ended December 31, 2020, representing an increase of 0.6% compared to the three months ended December 31, 2019.

Full Year 2020 Financial Highlights

For the twelve months ended December 31, 2020, revenue was $3,183.4 million, which represents an increase of 3.8%, or $117.1 million, compared to the twelve months ended December 31, 2019 at actual foreign exchange rates. On a constant currency basis, revenue grew $112.7 million, representing growth of 3.7% compared to the twelve months ended December 31, 2019.

GAAP income from operations was $328.1 million, GAAP net income was $197.0 million, or $3.04 per share on a diluted basis, for the twelve months ended December 31, 2020.

Adjusted net income was $307.8 million for the twelve months ended December 31, 2020, a decrease of 9.7% compared to the same period in 2019. Adjusted net income per diluted share was $4.75 for the twelve months ended December 31, 2020, a decrease of 8.1% compared to the same period in 2019.

About PRA Health Sciences

PRA (NASDAQ: PRAH) is one of the world’s leading global contract research organizations by revenue, providing outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries. PRA’s global clinical development platform includes more than 70 offices across North America, Europe, Asia, Latin America, South Africa, Australia and the Middle East and more than 18,100 employees worldwide. Since 2000, PRA has participated in approximately 4,200 clinical trials worldwide. In addition, PRA has participated in the pivotal or supportive trials that led to U.S. Food and Drug Administration or international regulatory approval of more than 100 drugs.

PRA has therapeutic expertise in areas that are among the largest in pharmaceutical development, including oncology, immunology, central nervous system, inflammation and infectious diseases. PRA believes that it provides its clients with flexible clinical development service offerings, which include both traditional, project-based Phase I through Phase IV services, as well as embedded, functional outsourcing and data solution services. The Company has invested in medical informatics and clinical technologies designed to enhance efficiencies, improve study predictability and provide better transparency to clients throughout their clinical development processes. To learn more about PRA, please visit www.prahs.com.

Internet Posting of Information: The Company routinely posts information that may be important to investors in the ‘Investor Relations’ section of the Company’s website at www.prahs.com. The Company encourages investors and potential investors to consult the Company’s website regularly for important information about the Company.