Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2020 Earnings Presentation
14 slides from Medpace's earnings presentation, Oct 26, 2020
Slide 1: Q3 2020 Financial Results
Q3 2020 FINANCIAL RESULTS OCTOBER 26, 2020
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: Q3 2020 – Key Operating Highlights
Q 3 2 0 2 0 – K E Y O P E R AT I N G H I G H L I G H T S ($ in millions) Third Quarter Year-to-Date 2020 2019 % Change 2020 2019 % Change Revenue, net $ 230.4 $ 216.2 6.5% $ 666.2 $ 631.1 5.6% Net New Business Awards 315.4 285.4 10.5% 816.4 813.3 0.4% Net Book-to-Bill (A) 1.37 1.32 n.m. 1.23 1.29 n.
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 19.3% 1.37x 18.8% 19.0% 18.7% 1.30x 1.32x 18.5% 1.20x 1.24x 1.22x 1.24x 18.0% 1.07x 17.2% 15.8% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net New Business Awards Ending Backlo
Slide 5: Q3 2020 – Key Financial Highlights
Q3 2020 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2020 2019 % Change 2020 2019 % Change Revenue, net $ 230.4 $ 216.2 6.5% $ 666.2 $ 631.1 5.6% EBITDA(A) 51.9 34.8 49.4% 127.5 108.4 17.6% % Margin 22.5% 16.1% n.m. 19.1% 17.2% n.m. Net Income 41.5 24.
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $51.9 $229.9 $230.9 $230.4 $40.7 $40.2 $41.1 $40.6 $214.1 $216.2 $33.4 $34.8 $35.0 $200.7 $205.0 $192.1 22.5% 21.2% 18.8% 17.9% 17.6% 16.7% 17.1% 16.1% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q
Slide 7: YTD 2020 – Revenue Composition
YTD 2020 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration(B) Concentration (C) Concentration (D) (A) Large Top 5 OTH ONC Pharma 17% 23% 31% Mid-Sized 9% Rest of Biopharma Top 10 YTD 2020 15% 8% CNS Small 10% Biopharma 76% CV MET All Other 11% 14% 75% AVAI 11% OTH(A)
Slide 8: Q3 2020 – Cash Position
Q3 2020 – CASH POSITION ($ in millions) ($ in millions) Third Quarter Year-to-Date Free Cash Flow and Free Cash Flow Conversion(A) Free Cash Flow 2020 2019 2020 2019 Operating Cash Flow Free Cash Flow Free Cash Flow Conversion % (A) $ 59.8 $ 64.3 $ 153.2 $ 144.9 (GAAP) 65 $58.1 55 $51.2 $51.1 Less:
Slide 9: Full Year 2020 Guidance
FULL YEAR 2020 GUIDANCE ($ in millions, except per share data) As of October 26, 2020 Guidance Range Growth Rate Revenue, net $880.0 - $920.0 2.2% - 6.9% EBITDA $180.0 - $190.0 20.3% - 27.0% GAAP Net Income $136.0 - $144.0 35.4% - 43.4% GAAP Net Income per diluted share $3.62 - $3.83 35.6% - 43.4% N
Slide 10: Full Year 2021 Guidance
FULL YEAR 2021 GUIDANCE ($ in millions) As of October 26, 2020 Guidance Range Revenue, net $1,050.0 - $1,125.0 EBITDA $200.0 - $220.0 10 MAKING THE COMPLEX SEAMLESS
Slide 11: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 12: Q3 2020 – Income Statement
Q 3 2 0 2 0 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 3Q20 vs. 3Q19 ($ in millions, except per share amounts) 3Q20 net 3Q19 net $ Change % Change Revenue, net $ 230.4 100.0% $ 216.2 100.0% 14.1 6.5% Operating Expenses: Direct service costs, excluding depreciation and amortization 87.6 38.0
Slide 13: EBITDA Reconciliation
E B I T D A R E C O N C I L I AT I O N ($ in millions) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net income as reported (GAAP) $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 29.8 $ 29.0 $ 24.1 $ 41.5 Income tax provision 6.6 5.5 7.0 5.5 6.4 7.5 6.3 5.5 Interest expense (income), net 1.6 1.0 0.7 0.3 (0.4) (0.4) 0.0 0.0
Slide 14: FY2020 Guidance Reconciliation
F Y 2 0 2 0 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) $ 136.0 $ 144.0 $ 3.62 $ 3.83 Income tax provision 24.9 26.9 Interest income, net (0.4) (0.4)