Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q1 2018 Earnings Presentation
17 slides from Medpace's earnings presentation, Apr 30, 2018
Slide 1: Q1 2018 Financial Results
Q1 2018 April 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: Q1 2018 – Key Operating Highlights
Q1 2018 – Key Operating Highlights ($ in millions – ASC 605 unless otherwise noted) First Quarter 2018 2017 % Change Revenue, net (ASC 606) $ 163.1 n.a. n.a. Service Revenue, net $ 108.4 $ 93.8 15.6% Net New Business Awards $ 128.2 $ 93.9 36.6% Net Book-to-Bill (A) 1.18 1.00 n.m. Net Book-to-Bill (L
Slide 4: Backlog and New Award Trends under ASC 605
Backlog and New Award Trends under ASC 605 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 20.7% 20.7% 1.21x 1.18x 20.4% 1.15x 1.11x 1.14x 1.15x 19.9% 19.9% 1.05x 1.00x 19.4% 19.5% 19.5% 1.x .5x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Net New Business Awards
Slide 5: Q1 2018 – Key Financial Highlights
Q1 2018 – Key Financial Highlights ($ in millions, except per share data) ASC 606 ASC 605 1Q18 1Q18 1Q17 % Change Revenue, net $ 163.1 n.a. n.a. n.a. Service Revenue, net n.a. $ 108.4 $ 93.8 15.6% EBITDA(A) $ 29.7 $ 31.9 $ 27.2 17.6% Adj. EBITDA(A) $ 28.7 $ 31.0 $ 26.2 18.2% % Margin 17.6% 28.6% 28.
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) Revenue(A) ($ in millions) Adjusted EBITDA(B) 180.0 $163.1 $31.0 33.1% 31.1% 130.0 28.8% 28.0% 28.3% 28.4% 27.2% 28.6% 80.0 $30.7 $29.5 $28.0 $28.7 $27.5 $26.2 $26.8 $27.0 17.6% $95.4 $98.7 $99.4 $108.4 $92.6 $94.8 $93.8 $94.6 30.0 (20.0) 2Q16 3Q16 4Q16 1Q17 2Q17
Slide 7: Q1 2018 - Revenue Composition under ASC 606
Q1 2018 - Revenue Composition under ASC 606 Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 21% 27% Large 22% Pharma DEV 9% Q1 2018 2% END Mid-Sized Small 4% Biopharma Biopharma 31% 60% CNS All Rest of 8% CV Other Top 10 15% 65% 13%
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) ASC 606 ASC 605 Net Leverage(A) Trend (Quarterly) Free Cash Flow 1Q18 1Q18 1Q17 120 Adjusted EBITDA (LTM) Net Leverage 115 $112.8 Operating Cash Flow (GAAP) $ 23.3 $ 23.3 ($0.7) $109.9 110 $108.5 $108.0 Less: CAPEX 4.0 4.0 4.4 105 1.8x
Slide 9: Full Year 2018 Guidance under ASC 605
Full Year 2018 Guidance under ASC 605 ($ in millions, except per share data) Previous Guidance Current Guidance (February 26, 2018) (April 30, 2018) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $412.0 - $428.0 6.6% - 10.7% $421.0 - $435.0 8.9% - 12.6% Adjusted EBI
Slide 10: Appendix
Appendix
Slide 11: Q1 2018 – Income Statement
Q1 2018 – Income Statement 1Q18 1Q18 1Q17 1Q18 vs. 1Q17 As Reported % Revenue, As Revised % Service As Reported % Service under ASC 605 ($ 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 605 ($ in millions) 1Q18 1Q18 1Q17 LTM 2018 LTM 2017 Net income as reported (GAAP) $ 14.6 $ 16.3 $ 8.4 $ 47.0 $ 18.4 Income tax provision 3.1 3.6 5.3 16.1 11.4 Interest expense, net 2.3 2.3 1.8 8.1 15.2 Depreciation 2.3 2.3 2.1 8.8 7.8 Amortizati
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ASC 606 ASC 605 ($ in millions) 1Q18 1Q18 1Q17 Net income as reported (GAAP) $ 14.6 $ 16.3 $ 8.4 Amortization 7.4 7.4 9.4 Corporate campus lease payments-principal portion (A) (0.5) (0.5) (0.4) Deferred financing fees (B) 0.2 0.2 0.2 Income tax effect of adjustm
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ASC 605 ASC 606 ($ in millions) 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q18 Net income (loss) as reported (GAAP) $ 5.0 $ 5.0 $ ( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 14.6 Income tax provision 3.2 2.5 0.2 5.3 4.8 5.3 2.4 3.6 3.1 Interest expense, net 5.9 4.7 2.
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ASC 605 ASC 606 ($ in millions, expect per share amounts) 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q18 Net income (loss) as reported (GAAP) $ 5.0 $ 5.0 $( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 14.6 Amortization 12.7 12.7 12.7 9.4 9.5 9.5 9.5 7.4 7.4 Stock ba
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) $ 46.2 $ 50.4 $ 1.27 $ 1.38 Adjustments: Amortization 29.6 29.6 0.81 0.81 Corporate ca
Slide 17: Medpace
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