Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2017 Earnings Presentation
17 slides from Medpace's earnings presentation, Feb 26, 2018
Slide 1: Q4 2017 Financial Results
Q4 2017 February 26, 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: Q4 2017 – Key Operating Highlights
Q4 2017 – Key Operating Highlights ($ in millions) Fourth Quarter Full Year 2017 2016 % Change 2017 2016 % Change Service Revenue, net $ 99.4 $ 95.4 4.3% $ 386.5 $ 370.6 4.3% Net New Business Awards $ 114.7 $ 99.7 15.1% $ 426.1 $ 427.0 (0.2%) Net Book-to-Bill (A) 1.15 1.05 n.m. 1.10 1.15 n.m. Ending
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.21x 1.21x 1.15x 1.15x 20.4% 20.7% 20.4% 1.11x 1.14x 19.9% 19.9% 1.05x 1.00x 19.4% 19.5% 19.5% 1.x .5x .x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net New Business Awards Ending Bac
Slide 5: Q4 2017 – Key Financial Highlights
Q4 2017 – Key Financial Highlights ($ in millions, except per share data) Fourth Quarter Full Year 2017 2016 % Change 2017 2016 % Change Service Revenue, net $ 99.4 $ 95.4 4.3% $ 386.5 $ 370.6 4.3% Adj. EBITDA $ 27.0 $ 27.5 (1.7%) $ 108.0 $ 113.4 (4.7%) % Margin 27.2% 28.8% n.m. 28.0% 30.6% n.m. Adj
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Service Revenue, net Adjusted EBITDA(A) $98.7 $99.4 $30.7 $29.5 100.0 $94.8 $95.4 $93.8 $94.6 $27.5 $26.8 $28.0 $27.0 $92.6 $25.8 $26.2 $87.8 90.0 80.0 33.1% 31.1% 70.0 29.3% 28.8% 28.0% 28.3% 28.4% 27.2% 60.0 50.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q
Slide 7: Full Year - Customer Composition by Revenue
Full Year - Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 21% 24% Large 20% Pharma 11% DEV 2017 Mid-Sized Small 4% Biopharma Biopharma END 25% 64% Rest of 7% MET Top 10 14% All CNS 12% Other 7% 68% A
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) Fourth Quarter Full Year Net Leverage(A) Trend (Quarterly) Free Cash Flow 2017 2016 2017 2016 120 Adjusted EBITDA (LTM) 3.5x $113.9 Net Leverage Operating Cash 115 3.0x $28.7 $29.0 $97.4 $91.7 $109.9 Flow (GAAP) 110 $108.5 $108.0 2.5x 1
Slide 9: Full Year 2018 Guidance under ASC 605
Full Year 2018 Guidance under ASC 605 ($ in millions, except per share data) As of February 26, 2018 Guidance Range Growth Rate(A) Service Revenue, net $412.0 - $428.0 6.6% - 10.7% Adjusted EBITDA $102.0 - $108.0 (5.6%) – 0.0% Adjusted Net Income $66.0 - $70.0 9.2% – 15.8% Adjusted Net Income per di
Slide 10: Appendix
Appendix
Slide 11: Q4 2017 – Income Statement
Q4 2017 – Income Statement Q4 % Service Q4 % Service Q4-2017 vs. Q4-2016 ($ in millions, except per share amounts) 2017 Revenue 2016 Revenue $ Change % Change Revenue: Service revenue, net $ 99.4 100.0% $ 95.4 100.0% $ 4.1 4.3% Reimbursed out-of-pocket revenue 13.2 12.9 Total revenue 112.7 108.2 Ope
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Fourth Quarter Full Year (S in millions) 2017 2016 2017 2016 Net income (loss) as reported (GAAP) $ 11.3 $ (-) $ 39.1 $ 13.4 Income tax provision 2.4 0.2 17.8 8.5 Interest expense, net 2.1 2.8 7.6 19.4 Depreciation 2.1 2.0 8.6 7.4 Amortization 9.5 12.7 37.9 50.7 EBI
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Fourth Quarter Full Year ($ in millions) 2017 2016 2017 2016 Net income (loss) as reported (GAAP) $ 11.3 $ (-) $ 39.1 $ 13.4 Amortization 9.5 12.7 37.9 50.7 Stock based compensation expense: liability awards mark-to-market (A) - - - 5.7 Corporate campus lease pa
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net income (loss) as reported (GAAP) $ 3.4 $ 5.0 $ 5.0 $ ( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 Income tax provision 2.5 3.2 2.5 0.2 5.3 4.8 5.3 2.4 Interest expense, net 6.0 5.9 4.7 2.8 1.8 1.8 1.9 2.1 Depreciatio
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net income (loss) as reported (GAAP) $ 3.4 $ 5.0 $ 5.0 $( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 Amortization 12.7 12.7 12.7 12.7 9.4 9.5 9.5 9.5 Stock based compensation expense: liabil
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) $ 43.9 $ 48.1 $ 1.21 $ 1.33 Adjustments: Amortization 29.6 29.6 0.81 0.81 Corporate ca
Slide 17: Medpace
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