Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2016 Earnings Presentation
18 slides from Medpace's earnings presentation, Nov 3, 2016
Slide 1: Q3 2016 Financial Results
Q3 2016 November 3, 2016 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 2016 – Key Operating Highlights
Q3 2016 – Key Operating Highlights ($ in millions) Third Quarter Year-to-Date 2016 2015 % Change 2016 2015 % Change Service Revenue, net $94.8 $81.6 16.1% $275.2 $234.4 17.4% Net New Business Awards 109.1 101.4 7.6% 327.2 264.0 23.9% Net Book-to-Bill (A) 1.15 1.24 n.m. 1.19 1.13 n.m. Net Book-to-Bil
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.24x 20.7% 20.4% 1.20x 1.21x 1.21x 1.15x 20.4% 20.3% 20.4% 1.11x 1.00x 0.93x 19.3% 1.x 18.8% 18.9% .5x .x 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Net New Business Awards Ending Bac
Slide 5: Q3 2016 – Key Financial Highlights
Q3 2016 – Key Financial Highlights ($ in millions, except per share data) Third Quarter Year-to-Date 2016 2015 % Change 2016 2015 % Change Service Revenue, net $ 94.8 $ 81.6 16.1% $ 275.2 $ 234.4 17.4% (A) Adj. EBITDA 29.5 26.1 13.0% 85.9 74.4 15.5% % Margin 31.1% 31.9% n.m. 31.2% 31.8% n.m. Adj. Ne
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Net Service Revenue Adjusted EBITDA(A) 100.0 $94.8 $92.6 90.0 $87.8 $85.7 $81.6 $30.7 $29.5 $76.8 $26.1 $26.8 $25.8 80.0 $76.0 $24.0 $23.4 $24.9 $74.5 70.0 32.2% 30.8% 32.5% 31.9% 31.3% 33.1% 31.1% 60.0 29.3% 50.0 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q1
Slide 7: Q3 2016 - Customer Composition by Revenue
Q3 2016 - Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) ONC OTH (A) 22% Top 5 20% Large Pharma 25% DEV 14% Q3 2016 4% Mid-Sized Biopharma Small CNS CV Biopharma All 13% 19% Other 8% 67% 58% Rest of MET Top 10 10% AVAI
Slide 8: YTD 2016 - Customer Composition by Revenue
YTD 2016 - Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC 19% 20% Top 5 Large 24% Pharma 12% YTD 2016 DEV 5% Mid-Sized MET Biopharma Small CNS 12% 22% Biopharma 66% All 9% Other Rest of 62% Top 10 AVAI END
Slide 9: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) Third Quarter Year-to-Date Net Leverage(A) Trend (Quarterly) Free Cash Flow 2016 2015 2016 2015 130.0 Adj. EBITDA (LTM) 4.5x 125.0 3.7x 3.5x Net Leverage 4.0xOperating Cash $42.2 $31.1 $62.2 $57.4 3.3x Flow (GAAP) 120.0 3.5x 115.0 $112.
Slide 10: Full Year 2016 Guidance
Full Year 2016 Guidance ($ in millions, except per share data) As of November 3, 2016 Guidance Range Growth Rate(A) Net Service Revenue $368.0 - $371.0 15.0% - 15.9% Adjusted EBITDA $112.0 - $114.0 10.7% - 12.6% Adjusted Net Income $54.5 - $56.5 34.9% - 39.9% Adjusted Net Income per diluted $1.51 -
Slide 11: Appendix
Appendix MEDPACE
Slide 12: Q3 2016 – Income Statement
Q3 2016 – Income Statement QTD % Service QTD % Service Q3-2016 vs. Q3-2015 ($ in millions, except per share amounts) 2016 Revenue 2015 Revenue $ Change % Change Revenue: Service revenue, net $ 94.8 100.0% $ 81.6 100.0% $ 13.2 16.1% Reimbursed out-of-pocket revenue 13.0 10.5 Total revenue 107.8 92.1
Slide 13: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Third Quarter Year-to-Date Last 12 Months (S in millions) 2016 2015 2016 2015 2016 2015 Net income (loss) (GAAP) $ 5.0 $ (0.1) $ 13.4 $ (0.1) $ 4.8 $ (1.8) Income tax provision (benefit) 2.5 0.6 8.3 (0.1) 9.1 (1.3) Interest expense, net 4.7 6.7 16.6 20.7 23.2 27.8 D
Slide 14: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Third Quarter Year-to-date Last 12 months ($ in millions) 2016 2015 2016 2015 2016 2015 Net income (loss) as reported (GAAP) $ 5.0 $ (0.1) $ 13.4 $ (0.1) $ 4.8 $ (1.8) Amortization 12.7 15.8 38.0 50.0 51.2 68.9 Stock based compensation expense: liability awards
Slide 15: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ($ in millions) 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Net income (loss) (GAAP) $ (1.7) $ (0.1) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 Income tax provision (benefit) (1.2) (1.6) 0.9 0.6 0.9 2.5 3.2 2.5 Interest expense, net 7.2 7.1 6.9 6.7 6.6 6.0 5.9 4.7 Depr
Slide 16: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, except per share amounts) 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Net income (loss) as reported (GAAP) $ (1.7) $ (0.1) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 Amortization 18.9 17.2 17.0 15.8 13.1 12.7 12.7 12.7 Stock based compensation expen
Slide 17: FY2016 Guidance Reconciliation
FY2016 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) $ 18.7 $ 20.2 $ 0.52 $ 0.56 Adjustments: Amortization 50.7 50.7 1.40 1.40 Stock based compensation e
Slide 18: MEDPACE
MEDPACE