Slide 1: Q3 2017 Financial Results
Q3 2017 October 30, 2017 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: Q3 2017 – Key Operating Highlights
Q3 2017 – Key Operating Highlights ($ in millions) Third Quarter Year-to-Date 2017 2016 % Change 2017 2016 % Change Service Revenue, net $ 98.7 $ 94.8 4.1% $ 287.0 $ 275.2 4.3% Net New Business Awards $ 112.1 $ 109.1 2.7% $ 311.3 $ 327.2 (4.9%) Net Book-to-Bill (A) 1.14 1.15 n.m. 1.08 1.19 n.m. Net
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 20.7% 20.4% 1.21x 1.21x 1.15x 1.14x 20.3% 20.4% 1.11x 1.05x 1.11x 19.9% 19.9% 1.00x 19.4% 19.5% 1.x .5x .x 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net New Business Awards Ending Bac
Slide 5: Q3 2017 – Key Financial Highlights
Q3 2017 – Key Financial Highlights ($ in millions, except per share data) Third Quarter Year-to-Date 2017 2016 % Change 2017 2016 % Change Service Revenue, net $ 98.7 $ 94.8 4.1% $ 287.0 $ 275.2 4.3% Adj. EBITDA $ 28.0 $ 29.5 (4.8%) $ 81.0 $ 85.9 (5.6%) % Margin 28.4% 31.1% n.m. 28.2% 31.2% n.m. Adj
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Service Revenue, net Adjusted EBITDA(A) $98.7 $30.7 $29.5 100.0 $94.8 $95.4 $93.8 $94.6 $26.8 $27.5 $26.8 $28.0 $92.6 $25.8 $26.2 $85.7 $87.8 90.0 80.0 31.3% 33.1% 31.1% 70.0 29.3% 28.8% 28.0% 28.3% 28.4% 60.0 50.0 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q
Slide 7: YTD 2017 - Customer Composition by Revenue
YTD 2017- Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) OTH (A) ONC Top 5 21% 24% Large 20% Pharma 12% YTD 2017 DEV Mid-Sized 5% Biopharma Small CNS 23% Biopharma 65% Rest of 7% MET Top 10 14% All 12% END Other 7% 68%
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) Third Quarter Year-to-Date Net Leverage(A) Trend (Quarterly) Free Cash Flow 2017 2016 2017 2016 120 3.5x Adjusted EBITDA (LTM) $113.4 $113.9 Net Leverage Operating Cash 3.0x 115 $39.0 $42.2 $68.7 $62.7 $109.9 Flow (GAAP) 110 $108.5 2.5x
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ in millions, except per share data) Previous Guidance Current Guidance (July 31, 2017) (October 30, 2017) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $373.0 - $385.0 0.6% - 3.9% $381.0 - $386.0 2.8% - 4.2% Adjusted EBITDA $104.0 - $108.
Slide 10: Appendix
Appendix
Slide 11: Q3 2017 – Income Statement
Q3 2017 – Income Statement Q3 % Service Q3 % Service Q3-2017 vs. Q3-2016 ($ in millions, except per share amounts) 2017 Revenue 2016 Revenue $ Change % Change Revenue: Service revenue, net $ 98.7 100.0% $ 94.8 100.0% $ 3.9 4.1% Reimbursed out-of-pocket revenue 12.0 13.0 Total revenue 110.6 107.8 Ope
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Third Quarter Year-to-Date Last 12 Months (S in millions) 2017 2016 2017 2016 2017 2016 Net income as reported (GAAP) $ 9.8 $ 5.0 $ 27.8 $ 13.4 $ 27.8 $ 4.9 Income tax provision 5.3 2.5 15.4 8.3 15.7 9.2 Interest expense, net 1.9 4.7 5.5 16.6 8.3 23.1 Depreciation 2
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Third Quarter Year-to-Date ($ in millions) 2017 2016 2017 2016 Net income as reported (GAAP) $ 9.8 $ 5.0 $ 27.8 $ 13.4 Amortization 9.5 12.7 28.4 38.0 Stock based compensation expense: liability awards mark-to-market (A) - 3.1 - 5.7 Corporate campus lease paymen
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net income (loss) as reported (GAAP) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) $ 8.4 $ 9.6 $ 9.8 Income tax provision 0.9 2.5 3.2 2.5 0.2 5.3 4.8 5.3 Interest expense, net 6.5 6.0 5.9 4.7 2.8 1.8 1.8 1.9 Depreciati
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net income (loss) as reported (GAAP) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $( - ) $ 8.4 $ 9.6 $ 9.8 Amortization 13.1 12.7 12.7 12.7 12.7 9.4 9.5 9.5 Stock based compensation expense: liab
Slide 16: FY2017 Guidance Reconciliation
FY2017 Guidance Reconciliation ($ 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) $ 35.5 $ 37.2 $ 0.87 $ 0.92 Adjustments: Amortization 37.9 37.9 0.95 0.95 Corporate campus lease pay
Slide 17: Medpace
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