Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Baird Global Healthcare Conference 2018
18 slides from Medpace's conference presentation, Sep 5, 2018
Slide 1: Baird Global Healthcare Conference
Baird Global Healthcare Conference September 5, 2018 August J. Troendle President & CEO Jesse J. Geiger CFO & COO, Laboratory Operations
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: The Medpace Way: Scientifically-Driven, Full-Service CRO
The Medpace Way: Scientifically-Driven, Full-Service CRO Disciplined and Integrated Full-Service Operating Model Full-service approach (avoids functional or partial outsourcing services) delivers timely, efficient, and high-quality results for our customers, enabling us to maintain robust margin
Slide 4: High-Science Approach with Deep Therapeutic Expertise
High-Science Approach with Deep Therapeutic Expertise Entry into, and growth within, target areas YTD Revenue by Therapeutic Area (ASC 606) hinges on team and training built around 2Q18 YTD Revenue highly-qualified physician leads with strong (1) under ASC 606: Other $333.2 million clinical, scien
Slide 5: Diversified Customer Base
Diversified Customer Base o Focus on customers utilizing a full-service outsourcing model (more prevalent outside top 20 pharma) These customers often do not have required development expertise and infrastructure in-house These customers represent an attractive R&D growth segment o Customer Dive
Slide 6: Attractive Core Addressable Market
Attractive Core Addressable Market Large Pharmaceutical CRO Addressable Market(1)(3) $22 billion Addressable Phase Core I-IV Clinical Addressable Estimated Medpace Small and Development Spend Market(3) Mid-Sized Biopharmaceutical Medpace Core Market Market Share(4) $55 billion $30 billion Small- and
Slide 7: Small and Mid-Sized Biopharmaceutical Focus
Small and Mid-Sized Biopharmaceutical Focus Risks Rewards o Funding challenges could result in uncertain o Attractive opportunity for continued timing of award decisions and ultimately growth revenue o Core customer segment firmly at the o Potential bad debt exposure forefront of medical innovation
Slide 8: Global Platform with Scalable Infrastructure
Global Platform with Scalable Infrastructure o Global, full-service CRO with requisite scale to support large, multi-national studies o Operations in 36 countries, 30 offices in 25 countries(1) (1) As of June 30, 2018. 8 Therapeutically-Focused | Scientifically-Driven
Slide 9: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 21.5% 1.41x 1.5x 20.7% 1.23x 20.4% 19.9% 19.9% 1.32x 19.4% 19.5% 19.5% 1.x 1.15x 1.14x 1.15x 1.18x 1.05x 1.11x 1.00x 18.7% 18.7% .5x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Under ASC 606
Slide 10: Key Financial Trends
Key Financial Trends ($ in millions) Revenue(A) ($ in millions) Adjusted EBITDA(B) 180.0 $170.1 $163.1 $35.8 $31.0 130.0 31.1% 30.4% 28.8% 28.0% 28.3% 28.4% 27.2% 28.6% 80.0 $32.9 $29.5 $27.5 $26.2 $26.8 $28.0 $27.0 $28.7 $117.8 $94.8 $95.4 $93.8 $94.6 $98.7 $99.4 $108.4 17.6% 19.4% 30.0 (20.0) 3Q16
Slide 11: Attractive Free Cash Flow Profile
Attractive Free Cash Flow Profile ($ in millions) $180 90% 77% 78% $160 74% 80% 68% $140 70% $120 $113 60% $108 $101 $100 $92 50% $84 $78 $77 $80 $68 40% $60 30% $40 20% $20 10% $0 0% 2014 2015 2016 2017 Adjusted EBITDA (1) Free Cash Flow (2) FCF Conversion (3) Net Debt / LTM 4.9x 3.7x 1.1x 1.8x Adj
Slide 12: Confidence in Future Growth
Confidence in Future Growth 1 Small and Mid-Sized Biopharma continues to be a growing and innovative segment of the market 2 We have a good reputation in this segment as a leader in drug development 3 Our full-service approach positions us well to add value to our customers’ programs 12 Therapeutica
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (S in millions) 2014 2015 2016 2017 Net income (loss) (GAAP) $ (15.6) $ (8.7) $ 13.4 $ 39.1 Income tax provision (benefit) (5.7) 0.8 8.5 17.8 Interest expense, net 26.5 27.3 19.4 7.6 Depreciation 6.4 6.4 7.5 8.6 Amortization 61.6 63.1 50.7 37.9 EBITDA (non-GAAP) $ 73.3
Slide 15: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (S in millions) 2014 2015 2016 2017 Operating Cash Flow (GAAP) $ 75.2 $ 85.9 $ 91.7 $ 97.4 Less: CAPEX (5.3) (6.5) (13.5) (11.7) Less: Campus Lease (A) (1.4) (1.3) (1.5) (1.7) Free Cash Flow (non-GAAP) $ 68.4 $ 78.1 $ 76.7 $ 84.0 Adjusted EBITDA - (non-GAAP) $ 92.2 $ 10
Slide 16: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ASC 605 ASC 606 ($ in millions) 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q18 2Q18 Net income (loss) as reported (GAAP) $ 5.0 $ ( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 14.6 $ 16.6 Income tax provision 2.5 0.2 5.3 4.8 5.3 2.4 3.6 5.6 3.1 4.9 Interest expens
Slide 17: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ASC 605 ASC 606 ($ in millions, expect per share amounts) 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q18 2Q18 Net income (loss) as reported (GAAP) $ 5.0 $( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 14.6 $ 16.6 Amortization 12.7 12.7 9.4 9.5 9.5 9.5 7.4 7.4
Slide 18: Glossary
Glossary 1) Adjusted EBITDA is defined as EBITDA, adjusted to exclude non-cash liability-based stock awards, mark-to-market adjustments and CEO 2015 award, private equity transaction-related cost, corporate campus lease payments, non-recurring litigation matters, goodwill impairment charges, a loss
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