Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q1 2017 Earnings Presentation
17 slides from Medpace's earnings presentation, May 1, 2017
Slide 1: Q1 2017 Financial Results
Q1 2017 May 1, 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: Q1 2017 – Key Operating Highlights
Q1 2017 – Key Operating Highlights ($ in millions) First Quarter 2017 2016 % Change Service Revenue, net $93.8 $87.8 6.8% Net New Business Awards 93.9 106.4 (11.8%) Net Book-to-Bill (A) 1.00 1.21 n.m. Net Book-to-Bill (LTM) 1.10 1.13 n.m. Ending Backlog $483.8 $448.1 8.0% Backlog Conversion Rate (B)
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.24x 20.7% 20.4% 1.21x 1.21x 1.15x 20.4% 20.3% 20.4% 1.11x 1.05x 19.9% 0.93x 1.00x 19.4% 1.x 18.9% .5x .x 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net New Business Awards Ending Bac
Slide 5: Q1 2017 – Key Financial Highlights
Q1 2017 – Key Financial Highlights ($ in millions, except per share data) First Quarter 2017 2016 % Change Service Revenue, net $93.8 $87.8 6.8% Adjusted EBITDA(A) 26.2 25.8 1.8% Adjusted EBITDA % Margin 28.0% 29.3% n.m. Adjusted Net Income(A) 14.1 11.6 21.7% Adjusted Net Income per diluted $0.34 $0
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Service Revenue, net Adjusted EBITDA(A) 100.0 $94.8 $95.4 $93.8 $92.6 $87.8 90.0 $85.7 $30.7 $29.5 $81.6 $26.1 $26.8 $25.8 $27.5 $26.2 $76.8 $24.9 80.0 70.0 32.5% 31.9% 31.3% 33.1% 31.1% 29.3% 28.8% 28.0% 60.0 50.0 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q
Slide 7: Q1 2017 - Customer Composition by Revenue
Q1 2017- Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 20% 22% Large 21% Pharma 15% Q1 2017 CNS 6% Mid-Sized Biopharma Small DEV MET 19% Biopharma 14% 66% Rest of 6% All Top 10 Other 13% END 66% 8% A
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) First Quarter Net Leverage(A) Trend (Quarterly) Free Cash Flow 2017 2016 130.0 Adjusted EBITDA (LTM) 4.5x 125.0 Net Leverage 4.0x Operating Cash Flow (GAAP) ($0.7) $12.6 3.3x 120.0 3.5x 115.0 $112.7 $113.4 $113.9 3.0x Less: CAPEX 4.4 3.
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ in millions, except per share data) Original Guidance Current Guidance (February 27, 2017) (May 1, 2017) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $390.0 - $406.0 5.2% - 9.6% $373.0 - $385.0 0.6% - 3.9% Adjusted EBITDA $122.0 - $126.0
Slide 10: Appendix
Appendix MEDPWCE
Slide 11: Q1 2017 – Income Statement
Q1 2017 – Income Statement Q1 % Service Q1 % Service Q1-2017 vs. Q1-2016 ($ in millions, except per share amounts) 2017 Revenue 2016 Revenue $ Change % Change Revenue: Service revenue, net $ 93.8 100.0% $ 87.8 100.0% $ 6.0 6.8% Reimbursed out-of-pocket revenue 12.8 11.8 Total revenue 106.6 99.6 Oper
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA First Quarter Last 12 Months (S in millions) 2017 2016 2017 2016 Net income (loss) as reported (GAAP) $ 8.4 $ 3.4 $ 18.4 $ (5.2) Income tax provision 5.3 2.5 11.2 4.9 Interest expense, net 1.8 6.0 15.2 26.2 Depreciation 2.1 1.8 7.8 6.6 Amortization 9.4 12.7 47.5 58.
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income First Quarter Last 12 months ($ in millions) 2017 2016 2017 2016 Net income (loss) as reported (GAAP) $ 8.4 $ 3.4 $ 18.4 $ (5.2) Amortization 9.4 12.7 47.5 58.6 Stock based compensation expense: liability awards and CEO award (A) - - 5.7 9.6 Corporate campus lea
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net income (loss) as reported (GAAP) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) 8.4 Income tax provision 0.9 0.6 0.9 2.5 3.2 2.5 0.2 5.3 Interest expense, net 6.9 6.7 6.6 6.0 5.9 4.7 2.8 1.8 Depreciati
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net income (loss) as reported (GAAP) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) 8.4 - - - Amortization 17.0 15.8 13.1 12.7 12.7 12.7 12.7 9.4 Stock based compensation expe
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) $ 32.0 $ 35.4 $ 0.77 $ 0.85 Adjustments: Amortization 37.8 37.8 0.91 0.91 Corporate campus lease pay
Slide 17: Medpace
MEDPACE