Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2016 Earnings Presentation
17 slides from Medpace's earnings presentation, Feb 27, 2017
Slide 1: Q4 2016 Financial Results
Q4 2016 February 27, 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: Q4 2016 – Key Operating Highlights
Q4 2016 – Key Operating Highlights ($ in millions) Fourth Quarter Full Year 2016 2015 % Change 2016 2015 % Change Service Revenue, net $95.4 $85.7 11.3% $370.6 $320.1 15.8% Net New Business Awards 99.7 95.5 4.4% 427.0 359.5 18.8% Net Book-to-Bill (A) 1.05 1.11 n.m. 1.15 1.12 n.m. Ending Backlog $483
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.24x 20.7% 20.4% 1.20x 1.21x 1.21x 1.15x 20.4% 20.3% 20.4% 1.11x 1.05x 19.9% 0.93x 19.3% 1.x 18.9% .5x .x 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net New Business Awards Ending Bac
Slide 5: Q4 2016 – Key Financial Highlights
Q4 2016 – Key Financial Highlights ($ in millions, except per share data) Fourth Quarter Full Year 2016 2015 % Change 2016 2015 % Change Service Revenue, net $95.4 $85.7 11.3% $370.6 $320.1 15.8% Adjusted EBITDA(A) 27.5 26.8 2.6% 113.4 101.2 12.0% Adjusted EBITDA % Margin 28.8% 31.3% n.m. 30.6% 31.6
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Service Revenue, net Adjusted EBITDA(A) 100.0 $94.8 $95.4 $92.6 90.0 $87.8 $85.7 $81.6 $30.7 $29.5 $26.1 $26.8 $25.8 $27.5 80.0 $76.0 $76.8 $23.4 $24.9 70.0 30.8% 32.5% 31.9% 31.3% 33.1% 31.1% 60.0 29.3% 28.8% 50.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q
Slide 7: Full Year - Customer Composition by Revenue
Full Year - Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) ONC OTH 21% Top 5 19% Large 23% Pharma DEV 12% 5% 2016 Mid-Sized Small CNS END Biopharma Biopharma 8% 12% 23% 65% All Rest of Other Top 10 63% 14% CV AVAI
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) Fourth Quarter Full Year Net Leverage(A) Trend (Quarterly) Free Cash Flow 2016 2015 2016 2015 130.0 Adjusted EBITDA (LTM) 4.5x Net Leverage Operating Cash 4.0x 125.0 3.5x $29.0 $27.2 $91.7 $85.9 3.3x Flow (GAAP) 120.0 3.5x 115.0 $112.7
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ in millions, except per share data) As of February 27, 2017 Guidance Range Growth Rate(A) Service Revenue, net $390.0 - $406.0 5.2% - 9.6% Adjusted EBITDA $122.0 - $126.0 7.6% - 11.1% Adjusted Net Income $66.0 - $70.0 18.5% - 25.7% Adjusted Net Income per diluted $1.58 - $
Slide 10: Appendix
Appendix MEDPWCE
Slide 11: Q4 2016 – Income Statement
Q4 2016 – Income Statement Q4 % Service Q4 % Service Q4-2016 vs. Q4-2015 ($ in millions, except per share amounts) 2016 Revenue 2015 Revenue $ Change % Change Revenue: Service revenue, net $ 95.4 100.0% $ 85.7 100.0% $ 9.7 11.3% Reimbursed out-of-pocket revenue 12.8 10.3 Total revenue 108.2 96.0 Ope
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Fourth Quarter Full Year (S in millions) 2016 2015 2016 2015 Net income (loss) (GAAP) $ (-) $ (8.6) $ 13.4 $ (8.7) Income tax provision (benefit) 0.2 0.9 8.5 0.8 Interest expense, net 2.8 6.6 19.4 27.3 Depreciation 2.0 1.7 7.5 6.4 Amortization 12.7 13.1 50.7 63.1 EB
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Fourth Quarter Full Year ($ in millions) 2016 2015 2016 2015 Net income (loss) as reported (GAAP) $ (-) $ (8.6) $ 13.4 $ (8.7) Amortization 12.7 13.1 50.7 63.1 Stock based compensation expense: liability awards mark-to-market and CEO award (A) - 4.7 5.7 9.8 Corp
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net income (loss) (GAAP) $ (0.1) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) Income tax provision (benefit) (1.6) 0.9 0.6 0.9 2.5 3.2 2.5 0.2 Interest expense, net 7.1 6.9 6.7 6.6 6.0 5.9 4.7 2.8 Deprec
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net income (loss) as reported (GAAP) $ (0.1) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) - - Amortization 17.2 17.0 15.8 13.1 12.7 12.7 12.7 12.7 Stock based compensation e
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) $ 43.9 $ 47.5 $ 1.06 $ 1.14 Adjustments: Amortization 37.8 37.8 0.90 0.91 Corporate campus lease pay
Slide 17: Medpace
MEDPACE