WILMINGTON, N.C.--(BUSINESS WIRE)-- PPD, Inc. (NASDAQ: PPD), a leading global contract research organization, today reported its financial results for the fourth quarter and full year ended December 31, 2019. “Our fourth quarter and full year results reflect solid commercial and financial success enabled by effective execution of our growth strategy,” said David Simmons, PPD’s chairman and CEO. “We continue to progress our mission to help customers bring life-changing therapies to patients. Our record net authorizations and ending backlog combined with our stable backlog conversion rate, position us well for continued growth in 2020.” Highlights Fourth quarter revenue of $1,046.9 million, representing 7.0% growth over the fourth quarter of 2018 Full year revenue of $4,031.0 million, representing 7.5% growth over the prior year Full year segment revenues of $3,143.7 million, representing 10.8% growth over the prior year Net authorizations and a net book-to-bill ratio of $1,012.9 million and 1.24x for the fourth quarter; $3,827.3 million and 1.22x for the full year Ending backlog of $7.1 billion, an increase of 11.9% over the prior year end Net income attributable to common stockholders of $6.8 million for the fourth quarter; $54.7 million for the full year Adjusted EBITDA of $213.6 million for the fourth quarter; $776.9 million for the full year Full year 2020 guidance for revenue of $4.353 billion to $4.474 billion; Adjusted EBITDA of $855 million to $870 million “Our financial performance in 2019, ending backlog and healthy net authorizations to close out the year give us confidence in our ability to continue delivering solid results,” said Chris Scully, PPD’s executive vice president and CFO. “As a result, based on the current outlook, we expect to land in the top half of our full year 2020 guidance range for revenue and adjusted EBITDA.” Fourth Quarter 2019 Results Revenue for the three months ended December 31, 2019 increased by 7.0% to $1,046.9 million, compared to $978.6 million for the three months ended December 31, 2018. For the three months ended December 31, 2019, Clinical Development Services segment revenue of $657.7 million grew 4.4% and Laboratory Services segment revenue of $161.0 million grew 22.2%, resulting in segment revenues of $818.7 million and growth of 7.5% over the same period of the prior year. Other revenue not allocated to segments, which includes third party pass-through and out-of-pocket revenue, was $228.2 million for the three months ended December 31, 2019, compared to $216.7 million for the same period of the prior year. Net income attributable to common stockholders for the three months ended December 31, 2019 was $6.8 million, or $0.02 per diluted share, compared to $36.6 million, or $0.13 per diluted share, for the three months ended December 31, 2018. Adjusted net income for the three months ended December 31, 2019 was $92.2 million, or $0.33 per diluted share, compared to adjusted net income of $75.8 million, or $0.27 per diluted share, for the three months ended December 31, 2018. Adjusted EBITDA for the three months ended December 31, 2019 was $213.6 million, compared to $212.9 million for the three months ended December 31, 2018. Important disclosures about and reconciliations of non-GAAP measures to their most directly comparable GAAP measures, including segment revenues, adjusted net income, adjusted diluted earnings per share and adjusted EBITDA are provided below in this press release. Full Year 2019 Results Revenue for the year ended December 31, 2019 increased by 7.5% to $4,031.0 million, compared to $3,749.0 million for the prior year. For the year ended December 31, 2019, Clinical Development Services segment revenue of $2,545.0 million grew 8.9% and Laboratory Services segment revenue of $598.7 million grew 19.3%, resulting in segment revenues of $3,143.7 million and growth of 10.8% over the same period of the prior year. Other revenue not allocated to segments, which includes third party pass-through and out-of-pocket revenue, was $887.3 million for the year ended December 31, 2019, compared to $911.2 million for the same period of the prior year. Net income attributable to common stockholders for the year ended December 31, 2019 was $54.7 million, or $0.19 per diluted share, compared to $96.3 million, or $0.34 per diluted share, for the prior year. Adjusted net income for the year ended December 31, 2019 was $286.8 million, or $1.02 per diluted share, compared to adjusted net income of $257.6 million, or $0.92 per diluted share, for the prior year. Adjusted EBITDA for the year ended December 31, 2019 was $776.9 million, compared to $707.4 million for the year ended December 31, 2018. Net Authorizations and Backlog Net authorizations were $1,012.9 million for the three months ended December 31, 2019, resulting in a net book-to-bill ratio of 1.24x. As of December 31, 2019, backlog was $7.1 billion, an increase of 11.9% from backlog of $6.3 billion at December 31, 2018. Net authorizations were $3,827.3 million for the year ended December 31, 2019, resulting in a net book-to-bill ratio of 1.22x. For the year ended December 31, 2019, quarterly average backlog conversion was 11.9%. Financial Position As of December 31, 2019, cash and cash equivalents were $345.2 million, gross debt was $5,705.9 million and net debt was $5,360.7 million, resulting in a net leverage ratio of 6.9x trailing twelve month adjusted EBITDA. In February 2020, PPD completed its initial public offering (“IPO”) of its stock at a price of $27.00 per share and issued 69.0 million shares, including 9.0 million shares issued pursuant to the full exercise of the underwriters option to purchase additional shares. The IPO raised net proceeds of approximately $1.77 billion for PPD. PPD used a portion of the net proceeds from the IPO to redeem (i) $550.0 million in aggregate principal amount of 7.625%/8.375% Senior PIK Toggle Notes due 2022 and (ii) $900.0 million in aggregate principal amount of 7.75%/8.50% Senior PIK Toggle Notes due 2022 (collectively, the “PIK Notes Redemption”). PPD’s adjusted net leverage ratio as of December 31, 2019 was 4.7x trailing twelve month adjusted EBITDA after giving effect to the IPO and the PIK Notes Redemption, as if each had occurred on such date. Click the headline for more.