• $55.7 million of Adjusted EBITDA in the first quarter; 40% growth compared to the first quarter of 2014
• First quarter Adjusted Net Income per share increased 86% to $0.41 per share and Adjusted Net Income increased 190% to $25.8 million compared to the first quarter of 2014
• First quarter GAAP Net Income was $17.2 million or $0.27 per share

PRA Health Sciences, Inc. (NASDAQ: PRAH) today reported financial results for the quarter ended March 31, 2015.

For the three months ended March 31, 2015, the company’s service revenues were $332.0 million, which represents growth of 7%, or $20.6 million, compared to the first quarter of 2014 at actual foreign exchange rates. On a constant currency basis, service revenue grew $30.6 million, an increase of 10% compared to the first quarter of 2014.

Net new business for the quarter ended March 31, 2015 was $398.0 million representing a book-to-bill ratio of 1.2 for the period. This net new business contributed to an ending backlog of $2.2 billion at March 31, 2015.

"We are off to a strong start in 2015 and I am pleased by our first quarter financial results that demonstrate a continuation of the solid momentum we achieved in 2014," said Colin Shannon, chief executive officer. "We continue to execute consistently across all of our businesses, which resulted in 10% revenue growth on a constant currency basis in the first quarter. We continue to win new business, as evidenced by our strong book-to-bill ratio and our $2.2 billion of backlog, the highest level in our company’s history.

"In addition, we were recently honored as the "International Clinical Company of the Year" by PharmaTimes, which is recognition of our dedication to our clients and the exceptional talent and caliber of our employees."

Direct costs were $219.0 million during the three months ended March 31, 2015 compared to $215.2 million for the first quarter of 2014. Direct costs were 66.0% of service revenue during the first quarter of 2015 compared to 69.1% of service revenue during the first quarter of 2014. The decrease in direct costs as a percentage of service revenue is primarily related to the favorable impact from foreign currency exchange rate fluctuations.

Selling, general and administrative expenses were $60.8 million during the three months ended March 31, 2015 and 2014. Selling, general and administrative costs were 18.3% of service revenue during the first quarter of 2015 compared to 19.5% of service revenue during the first quarter of 2014. The decrease in selling, general and administrative expenses is primarily related to our continued leveraging of our selling and administrative functions.

Reported EBITDA on a GAAP basis was $59.8 million, representing an increase of 99.3% compared to the first quarter of 2014. Adjusted EBITDA was $55.7 million for the three months ended March 31, 2015, representing growth of 40.3% compared to the first quarter of 2014.

Reported GAAP net income was $17.2 million and reported GAAP diluted net income per share was $0.27 for the three months ended March 31, 2015, increases of 272% and 208%, respectively, when compared to the first quarter of 2014.

Adjusted Net Income was $25.8 million for the three months ended March 31, 2015, representing growth of 190% compared to the first quarter of 2014. Adjusted Net Income per share was $0.41 for the three months ended March 31, 2015, representing growth of 86% compared to the first quarter of 2014.

Reconciliations of our non-GAAP measures, including Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share to the corresponding GAAP measures are attached to this press release.

2015 Guidance

For 2015, the company is updating its guidance taking into account the movement in current foreign exchange rates. As a result the company expects to achieve service revenues between $1.34 billion and $1.39 billion, diluted GAAP net income per share between $0.70 and $0.80 per share, diluted Adjusted Net Income per share of $1.62 to $1.72 per share, and annual effective income tax rate estimates at approximately 30%. This guidance assumes foreign currency rates as of April 2015.

Webcast & Conference Call Details

PRA will host a conference call at 9:00 a.m. EDT tomorrow to discuss its first quarter 2015 financial results. To participate, please dial +1 (877) 930-8062 or +1 (253) 336-7647 outside the United States approximately 10 minutes before the scheduled start of the call. The conference call ID for the call is 30431024. The conference call will also be accessible, live via webcast, on the Investors section of the PRA website at www.prahs.com/investors. An archived replay of the conference call will be available online at www.prahs.com/investors. In addition, an audio replay of the call will be available for one week following the call and can be accessed by dialing +1 (855) 859-2056 within the United States or +1 (404) 537-3406 outside the United States. The replay ID is 30431024.