Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q2 2017 Earnings Presentation
17 slides from Medpace's earnings presentation, Jul 31, 2017
Slide 1: Q2 2017 Financial Results
Q2 2017 July 31, 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: Q2 2017 – Key Operating Highlights
Q2 2017 – Key Operating Highlights ($ in millions) Second Quarter Year-to-Date 2017 2016 % Change 2017 2016 % Change Service Revenue, net $94.6 $92.6 2.1% $188.3 $180.4 4.4% Net New Business Awards 105.4 111.7 (5.7%) 199.2 218.1 (8.6%) Net Book-to-Bill (A) 1.11 1.21 n.m. 1.06 1.21 n.m. Net Book-to-B
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.24x 20.7% 20.4% 1.21x 1.21x 1.15x 20.4% 20.3% 20.4% 1.11x 1.05x 1.11x 19.9% 1.00x 19.4% 19.5% 1.x .5x .x 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net New Business Awards Ending Bac
Slide 5: Q2 2017 – Key Financial Highlights
Q2 2017 – Key Financial Highlights ($ in millions, except per share data) Second Quarter Year-to-Date 2017 2016 % Change 2017 2016 % Change Service Revenue, net $ 94.6 $ 92.6 2.1% $ 188.3 $ 180.4 4.4% Adj. EBITDA 26.8 30.7 (12.7%) 53.0 56.4 (6.1%) % Margin 28.3% 33.1% n.m. 28.1% 31.3% n.m. Adj. Net
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 $94.6 $30.7 $92.6 $29.5 $87.8 $26.1 $26.8 $27.5 $26.2 $26.8 90.0 $85.7 $25.8 $81.6 80.0 70.0 31.9% 31.3% 29.3% 33.1% 31.1% 28.8% 28.0% 28.3% 60.0 50.0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q
Slide 7: YTD 2017 - Customer Composition by Revenue
YTD 2017- Customer Composition by Revenue Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) OTH (A) ONC Top 5 20% 24% Large 20% Pharma 12% YTD 2017 DEV Mid-Sized 5% Biopharma Small 23% Biopharma CNS Rest of MET 65% 8% Top 10 13% All Other 13% END 67% 8%
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) Second Quarter Year-to-Date Net Leverage(A) Trend (Quarterly) Free Cash Flow 2017 2016 2017 2016 125 Adjusted EBITDA (LTM) 3.5x Net Leverage Operating Cash 120 3.0xFlow (GAAP) $30.4 $7.9 $29.7 $20.5 $112.7 $113.4 $113.9 115 2.5x $109.9
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ in millions, except per share data) Previous Guidance Current Guidance (May 1, 2017) (July 31, 2017) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $373.0 - $385.0 0.6% - 3.9% $373.0 - $385.0 0.6% - 3.9% Adjusted EBITDA $104.0 - $108.0 (8.
Slide 10: Appendix
Appendix MEDPWCE
Slide 11: Q2 2017 – Income Statement
Q2 2017 – Income Statement Q2 % Service Q2 % Service Q2-2017 vs. Q2-2016 ($ in millions, except per share amounts) 2017 Revenue 2016 Revenue $ Change % Change Revenue: Service revenue, net $ 94.6 100.0% $ 92.6 100.0% $ 1.9 2.1% Reimbursed out-of-pocket revenue 11.7 13.3 Total revenue 106.2 106.0 Ope
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Second Quarter Year-to-Date Last 12 Months (S in millions) 2017 2016 2017 2016 2017 2016 Net income (loss) as reported (GAAP) $ 9.6 $ 5.0 $ 18.0 $ 8.4 $ 23.0 $ (0.3) Income tax provision 4.8 3.2 10.1 5.7 12.9 7.3 Interest expense, net 1.8 5.9 3.6 11.9 11.1 25.2 Depr
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Second Quarter Year-to-Date ($ in millions) 2017 2016 2017 2016 Net income as reported (GAAP) $ 9.6 $ 5.0 $ 18.0 $ 8.4 Amortization 9.5 12.7 18.9 25.3 Stock based compensation expense: liability awards mark-to-market (A) - 2.6 - 2.6 Corporate campus lease paymen
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net income (loss) as reported (GAAP) $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) $ 8.4 9.6 Income tax provision 0.6 0.9 2.5 3.2 2.5 0.2 5.3 4.8 Interest expense, net 6.7 6.6 6.0 5.9 4.7 2.8 1.8 1.8 Depreciati
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net income (loss) as reported (GAAP) $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) $ 8.4 9.6 - - - - Amortization 15.8 13.1 12.7 12.7 12.7 12.7 9.4 9.5 Stock based compensation exp
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) $ 33.2 $ 36.6 $ 0.80 $ 0.89 Adjustments: Amortization 37.9 37.9 0.92 0.92 Corporate campus lease pay
Slide 17: Medpace
MEDPACE