Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q2 2022 Earnings Presentation
15 slides from Medpace's earnings presentation, Jul 25, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 FINANCIAL RESULTS JULY 25, 2022
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
F O RWA R D L O O K I N G S TAT E M E N T S & 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 m
Slide 3: Q2 2022 – Key Operating Highlights
Q 2 2 0 2 2 – K E Y O P E R AT I N G H I G H L I G H T S ($ in millions) Second Quarter Year-to-Date 2022 2021 % Change 2022 2021 % Change Revenue, net $ 351.2 $ 278.3 26.2% $ 682.2 $ 538.3 26.7% Net New Business Awards 450.6 387.6 16.3% 873.6 743.7 17.5% Net Book-to-Bill (A) 1.28 1.39 n.m. 1.28 1.3
Slide 4: Backlog and New Award Trends
B A C K L O G A N D N E W AWA R D T R E N D S Net Book-to-Bill Backlog Conversion Rate 1.49x 18.1% 1.37x 1.38x 1.37x 1.39x 1.38x 17.1% 1.28x 1.28x 17.2% 16.9% 17.0% 16.7% 16.6% 16.8% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Net New Business Awards Ending Backlo
Slide 5: Q2 2022 – Key Financial Highlights
Q2 2022 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Second Quarter Year-to-Date 2022 2021 % Change 2022 2021 % Change Revenue, net $ 351.2 $ 278.3 26.2% $ 682.2 $ 538.3 26.7% EBITDA(A) 68.1 47.9 42.0% 138.5 101.6 36.3% % Margin 19.4% 17.2% n.m. 20.3% 18.9% n.m. Net Income 49.4
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $70.4 $68.1 $351.2 $61.4 $330.9 $60.2 $60.1 $51.9 $53.6 $295.6 $308.6 $47.9 $278.3 $259.7 $260.0 22.5% 23.2% $230.4 21.3% 20.6% 20.3% 19.9% 19.4% 17.2% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue +23.0% - 25.6% YOY +23.4% YOY +22.2% YOY +7.5% YOY Guidance Range $1,142.4 $1,405 - $1,435 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 ($ in millions) EBITDA(A) +20.1% - 25.5% YOY +18.8% YOY +25.5% YOY +6.2% YOY Guidance Range $268 - $280 $223.1 $187.8
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income +12.7% - 18.2% YOY +25.1% YOY +44.7% YOY +37.2% YOY Guidance Range $181.8 $205 - $215 $145.4 $100.4 $73.2 2018 2019 2020 2021 2022 Net Income per diluted share +26.2% - 32.2% YOY +25.3% YOY +43.8% YOY +35.5% YOY Guidance Range $4.81 $6.07 - $6.36 $3.84
Slide 9: YTD 2022 – Revenue Composition
YTD 2022 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) OTH (A) Large Top 5 22% Pharma 17% ONC Mid-Sized 32% 6% Rest of Biopharma Top 10 YTD 2022 15% 8% AVAI Small 8% Biopharma 79% CNS 11% MET All Other 15% 75% CV 12% (A) Large To
Slide 10: Q2 2022 – Cash Position
Q2 2022 – CASH POSITION ($ in millions) ($ in millions) Second Quarter Year-to-Date Free Cash Flow and Free Cash Flow Conversion(A) Free Cash Flow 2022 2021 2022 2021 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash $ 96.6 $ 62.8 $ 142.9 $ 120.1 118.4% 125.4% Flow (GAAP) 109.3% 100.6% 1
Slide 11: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (April 25, 2022) (July 25, 2022) Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $1,400.0 - $1,460.0 22.6% - 27.8% $1,405.0 - $1,435.0 23.0% - 25.6% EBITDA $262.0 - $278.0 17.4% - 24.
Slide 12: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 13: Q2 2022 – Income Statement
Q 2 2 0 2 2 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 2Q22 vs. 2Q21 ($ in millions, except per share amounts) 2Q22 net 2Q21 net $ Change % Change Revenue, net $ 351.2 100.0% $ 278.3 100.0% 72.9 26.2% Operating Expenses: Direct service costs, excluding depreciation and amortization 132.1 37
Slide 14: EBITDA Reconciliation
E B I T D A R E C O N C I L I AT I O N YTD YTD Last 12 ($ in millions) 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2021 2022 Months Net income as reported (GAAP) $ 41.5 $ 50.9 $ 43.3 $ 39.9 $ 48.6 $ 50.0 $ 61.3 $ 49.4 $ 83.2 $ 110.7 $ 209.3 Income tax provision 5.5 3.8 5.2 2.8 6.2 5.9 4.0 12.6 8.0 16.7
Slide 15: FY2022 Guidance Reconciliation
F Y 2 0 2 2 G U I D A N C E R E C O N C I L I AT I O N ($ in millions, except per share amounts) Net Income per diluted Net Income share Low High Low High Net Income and Net Income per diluted share (GAAP) $ 205.0 $ 215.0 $ 6.07 $ 6.36 Income tax provision 35.9 37.9 Interest expense, net 4.3 4.3 Dep