March 02, 2015 10:55 PM ET

Health Care Technology

Company Overview of IMS Health Holdings, Inc.

Company Overview

IMS Health Holdings, Inc. provides information and technology services to healthcare industry worldwide. Its principal products include national information offerings that provide performance metrics related to the sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity through multiple channels; and sub-national offerings, which offer information related to the measurement of sales at the regional, zip code, and individual prescriber level. The company also provides workflow analytics, a set of strategic, analytic, and support services for life sciences companies; and real-world evidence solutions, which integrate information from medical claims, pr...

83 Wooster Heights Road

Danbury, CT 06810

United States

Founded in 1954

10,200 Employees

Phone:

203-448-4600

Key Executives for IMS Health Holdings, Inc.

Chairman, Chief Executive Officer and President
Age: 53
Total Annual Compensation: $1.4M
Chief Financial Officer and Senior Vice President
Age: 53
Total Annual Compensation: $412.5K
Senior Vice President of Global Technology & Operations
Age: 50
Total Annual Compensation: $391.9K
Senior Vice President of Supply Management
Age: 53
Total Annual Compensation: $402.0K
Senior Vice President of Strategy & Global Product Management
Age: 49
Total Annual Compensation: $400.3K
Compensation as of Fiscal Year 2013.

IMS Health Holdings, Inc. Key Developments

IMS Health Holdings, Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014 ; Provides Earnings Guidance for 2015

IMS Health Holdings, Inc. reported unaudited earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company's revenue increased 6.2% on a constant currency basis, or 0.6% on a reported basis, to $678 million, compared with $674 million for the fourth quarter of 2013. The company's strong revenue performance in the fourth quarter was driven by a 13.6% increase in technology services revenue on a constant currency basis, or 8.8% on a reported basis. Adjusted EBITDA improved 8.5% on a constant currency basis, or 1.1% reported, to $214 million, compared with $211 million for the fourth quarter of 2013. This reflected both the drop-through from revenue growth to adjusted EBITDA and the impact of continued cost-reduction initiatives. Net income was $8 million, compared with $82 million in last year's fourth quarter. Adjusted net income was $125 million, up $46 million from $79 million for the prior-year's quarter due to lower interest expense. Diluted earnings per share were $0.03 compared with $0.29 per share in the fourth quarter of 2013. Adjusted diluted earnings per share were $0.36 compared with $0.28 in the prior-year period, a 40% increase on a constant currency basis and 31% on a reported basis. Reported results for the quarter were tempered by the continued strengthening of the USD against key foreign currencies and the lower USD results from the company's Venezuelan operations due to the significant revaluation of the Venezuelan Bolivar effective June 30, 2014. Net cash provided by operating activities was $147 million compared to $78 million reported a year ago. Capital expenditures were $13 million compared to $16 million reported a year ago. Additions to computer software were $25 million compared to $28 million reported a year ago. Unlevered free cash flow was $182 million compared to $140 million reported a year ago. Free cash flow was $109 million compared to $34 million reported a year ago. Operating income was $87 million compared to $78 million reported a year ago. Income before income taxes was $53 million compared to a loss of $42 million reported a year ago. Revenue for the twelve months ended December 31, 2014 increased 5.9% on a constant currency basis compared with last year. On a reported basis, revenue increased 3.8% to $2,641 million compared to $2,544 million reported a year ago. Adjusted EBITDA of $878 million increased 9.5% on a constant currency basis, or 5.9% reported compared with $829 million for 2013. The 2014 net loss was $189 million, compared with net income of $82 million in 2013, with the decline due to one-time IPO-related charges. Adjusted net income was $454 million, up 24% on a constant currency basis or 18% on a reported basis compared to $385 million reported a year ago. The full-year diluted loss per share was $0.59 compared with diluted earnings per share of $0.29 for 2013. Adjusted diluted earnings per share were $1.37 for 2014, up three cents from $1.34 for 2013. As of December 31, 2014, net debt was $3,426 million. Net cash provided by operating activities was $110 million, with the full-year results reflecting significant IPO-related expenditures compared to $414 million reported a year ago. Capital expenditures and additions to deferred software were up $45 million against the prior year due to $31 million of expenditures for its new global delivery center in Bangalore, India, as well as increased investment for future growth. Unlevered free cash flow was $576 million compared to $631 million reported a year ago. Capital expenditures were $72 million compared to $41 million reported a year ago. Additions to computer software were $95 million compared to $81 million reported a year ago. Free cash flow was a negative of $57 million compared to free cash flow of $292 million reported a year ago. Operating income was $208 million compared to $354 million reported a year ago. Loss before income taxes was $285 million compared to $48 million reported a year ago. The company expects core IMS Health (excluding the impact of the pending acquisition of Cegedim's CRM and Strategic Data businesses) to have full-year 2015 constant currency growth of 5% to 6% in revenue, 7.5% to 8.5% in adjusted EBITDA, 16% to 19% in adjusted net income, and 11% to 14% in adjusted diluted earnings per share. Including the acquisition of Cegedim's CRM and Strategic Data businesses, which it will close in April, it expects IMS Health to have full-year 2015 constant currency growth of 19% to 20% in revenue, 13% to 14% in adjusted EBITDA, 20% to 23% in adjusted net income, and 15% to 18% in adjusted diluted earnings per share; on a reported basis, and assuming current foreign exchange rates hold constant through the end of the year, these growth rates would be 11% to 12% for revenue, 5% to 6% for adjusted EBITDA, 8% to 11% for adjusted net income, and 4% to 6% for adjusted diluted earnings per share.

IMS Health Holdings, Inc. Announces Executive Changes

On January 27, 2015, Andr Bourbonnais, a Class I director reported IMS Health Holdings, Inc. of his intention to resign from the Board of Directors of the company, effective January 30, 2015. On January 30, 2015, the Board elected James Fasano, also designated for nomination by CPPIB-PHI, to fill the vacancy created by Mr. Bourbonnais' resignation as a Class I director on the Board. Additionally, the Board has appointed Mr. Fasano to serve on the Leadership Development and Compensation Committee and the Nominating and Corporate Governance Committee.

IMS Health Holdings, Inc. to Report Q4, 2014 Results on Feb 03, 2015

IMS Health Holdings, Inc. announced that they will report Q4, 2014 results at 9:00 AM, Eastern Standard Time on Feb 03, 2015

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
June 24, 2014
Cegedim SA, Information Solutions and Customer Relationship Management Business
Merger/Acquisition
May 8, 2014
Forcea NV/SA
 

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