Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q2 2018 Earnings Presentation
16 slides from Medpace's earnings presentation, Jul 30, 2018
Slide 1: Q2 2018 Financial Results
Q2 2018 July 30, 2018 Financial Results
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of histori
Slide 3: Q2 2018 – Key Operating Highlights
Q2 2018 – Key Operating Highlights ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 2Q18 2Q18 2Q17 % Change YTD18 YTD18 YTD17 % Change Revenue, net $170.1 -- -- -- $333.2 -- -- -- Service Revenue, net -- $117.8 $94.6 24.6% -- $226.2 $188.3 20.1% Net New Business Awards 239.9 155.9 105.4 47.9% 440.7 2
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 21.5% 1.41x 1.5x 20.7% 1.23x 20.4% 19.9% 19.9% 1.32x 19.4% 19.5% 19.5% 1.x 1.15x 1.14x 1.15x 1.18x 1.05x 1.11x 1.00x 18.7% 18.7% .5x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Under ASC 606
Slide 5: Q2 2018 – Key Financial Highlights
Q2 2018 – Key Financial Highlights ($ in millions, except per share data) ASC 606 ASC 605 ASC 606 ASC 605 2Q18 2Q18 2Q17 % Change(B) YTD18 YTD18 YTD17 % Change(B) Revenue, net $ 170.1 -- -- -- $ 333.2 -- -- -- Service Revenue, net -- $ 117.8 $ 94.6 24.6% -- $ 226.2 $ 188.3 20.1% EBITDA(A) 33.4 36.3
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) Revenue(A) ($ in millions) Adjusted EBITDA(B) 180.0 $170.1 $163.1 $35.8 $31.0 130.0 31.1% 30.4% 28.8% 28.0% 28.3% 28.4% 27.2% 28.6% 80.0 $32.9 $29.5 $27.5 $26.2 $26.8 $28.0 $27.0 $28.7 $117.8 $94.8 $95.4 $93.8 $94.6 $98.7 $99.4 $108.4 17.6% 19.4% 30.0 (20.0) 3Q16
Slide 7: YTD 2018 - Revenue Composition under ASC 606
YTD 2018- Revenue Composition under ASC 606 Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 21% 26% Large 22% Pharma DEV 8% YTD 2018 2% Mid-Sized Small END Biopharma Biopharma 4% 32% 60% CNS Rest of CV All 8% Top 10 14% Other 11% AVA
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 Net Leverage(A) Trend (Quarterly) Free Cash Flow 2Q18 2Q18 2Q17 YTD18 YTD18 YTD17 130 Adjusted EBITDA (LTM) Net Leverage $121.8 Operating Cash 125 $ 41.3 $ 41.3 $30.4 $ 64.6 $ 64.6 $29.7 Flow (GAAP) 120 1
Slide 9: Full Year 2018 Guidance under ASC 605
Full Year 2018 Guidance under ASC 605 ($ in millions, except per share data) Previous Guidance Current Guidance (April 30, 2018) (July 30, 2018) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $421.0 - $435.0 8.9% - 12.6% $461.0 - $473.0 19.3% - 22.4% Adjusted EBITDA
Slide 10: Appendix
Appendix
Slide 11: Q2 2018 – Income Statement
Q2 2018 – Income Statement 2Q18 2Q18 2Q17 2Q18 vs. 2Q17 As Reported % Revenue, As Revised % Service As Reported % Service under ASC 605 ($ in millions, except per share amounts) under ASC 606 net Adjustments under ASC 605 Revenue, net under ASC 605 Revenue, net $ Change % Change Revenue: Revenue, ne
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ASC 606 ASC 605 ASC 606 ASC 605 ASC 605 ($ in millions) 2Q18 2Q18 2Q17 YTD18 YTD18 YTD17 LTM 2018 LTM 2017 Net income as reported (GAAP) $ 16.6 $ 18.8 $ 9.6 $ 31.1 $ 35.1 $ 18.0 $ 56.2 $ 23.0 Income tax provision 4.9 5.6 4.8 8.1 9.2 10.1 16.9 12.9 Interest expense,
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ASC 606 ASC 605 ASC 606 ASC 605 ($ in millions) 2Q18 2Q18 2Q17 YTD18 YTD18 YTD17 Net income as reported (GAAP) $ 16.6 $ 18.8 $ 9.6 $ 31.1 $ 35.1 $ 18.0 Amortization 7.4 7.4 9.5 14.8 14.8 18.9 Corporate campus lease payments-principal portion (A) (0.5) (0.5) (0.4
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ASC 605 ASC 606 ($ in millions) 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q18 2Q18 Net income (loss) as reported (GAAP) $ 5.0 $ ( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 14.6 $ 16.6 Income tax provision 2.5 0.2 5.3 4.8 5.3 2.4 3.6 5.6 3.1 4.9 Interest expens
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ASC 605 ASC 606 ($ in millions, expect per share amounts) 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q18 2Q18 Net income (loss) as reported (GAAP) $ 5.0 $( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 14.6 $ 16.6 Amortization 12.7 12.7 9.4 9.5 9.5 9.5 7.4 7.4
Slide 16: FY2018 Guidance Reconciliation under ASC 605
FY2018 Guidance Reconciliation under ASC 605 ($ in millions, except per share amounts) Adjusted Net Income Adjusted Net Income per diluted share Low High Low High Net Income and Net Income per diluted share (GAAP) $ 69.8 $ 73.9 $ 1.90 $ 2.01 Adjustments: Amortization 29.6 29.6 0.81 0.81 Other transa