Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2018 Earnings Presentation
16 slides from Medpace's earnings presentation, Feb 25, 2019
Slide 1: Q4 2018 Financial Results
Q4 2018 February 25, 2019 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: Q4 2018 – Key Operating Highlights
Q4 2018 – Key Operating Highlights ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 4Q18 4Q18 4Q17 % Change 2018 2018 2017 % Change Revenue, net $192.1 -- -- -- $704.6 -- -- -- Service Revenue, net -- $127.9 $99.4 28.6% -- $478.1 $386.5 23.7% Net New Business Awards 231.2 146.7 114.7 27.9% 899.4 581.
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 21.5% 1.41x 21.2% 21.0% 1.5x 1.27x 20.7% 1.23x 1.20x 19.9% 1.32x 19.4% 19.5% 19.5% 1.15x 1.18x 1.21x 1.15x 1.x 1.11x 1.14x 1.00x 18.7% 18.7% 18.8% 18.3% .5x 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Slide 5: Q4 2018 – Key Financial Highlights
Q4 2018 – Key Financial Highlights ($ in millions, except per share data) ASC 606 ASC 605 ASC 606 ASC 605 4Q18 4Q18 4Q17 % Change(B) 2018 2018 2017 % Change(B) Revenue, net $ 192.1 -- -- -- $ 704.6 -- -- -- Service Revenue, net -- $ 127.9 $ 99.4 28.6% -- $ 478.1 $ 386.5 23.7% EBITDA(A) 40.7 39.6 27.
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) Revenue(A) ($ in millions) Adjusted EBITDA(B) $192.1 $42.7 $39.7 200.0 $179.3 $163.1 $170.1 $35.8 150.0 $31.0 34.4% 28.0% 28.3% 28.4% 28.6% 30.4% 30.2% 100.0 27.2% $32.9 $36.4 $127.9 $26.8 $28.0 $27.0 $28.7 $38.6 50.0 $93.8 $94.6 $98.7 $99.4 $108.4 $117.8 $124.0
Slide 7: 2018 - Revenue Composition under ASC 606
2018 - Revenue Composition under ASC 606 Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 23% Large 27% 22% Pharma Mid-Sized 7% DEV Biopharma 2018 2% 24% END Small 4% Biopharma 69% Rest of CNS MET All Top 10 7% 13% Other 11% 67% AVAI
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 Net Leverage(A) Trend (Quarterly) Free Cash Flow 4Q18 4Q18 4Q17 2018 2018 2017 Adjusted EBITDA (LTM) Net Leverage Operating Cash 155 $148.0 $ 39.4 $ 39.4 $ 28.7 $ 156.6 $ 156.6 $ 97.4 Flow (GAAP) 145 $136
Slide 9: Full Year 2019 Guidance under ASC 606
Full Year 2019 Guidance under ASC 606 ($ in millions, except per share data) As of February 25, 2019 Guidance Range Growth Rate(A) Revenue, net $783.0 - $807.0 11.1% - 14.5% Adjusted EBITDA $137.0 - $145.0 (0.6%) – 5.2% Adjusted Net Income $97.0 - $101.0 1.6% – 5.8% Adjusted Net Income per diluted $
Slide 10: Appendix
Appendix
Slide 11: Q4 2018 – Income Statement
Q4 2018 – Income Statement 4Q18 4Q18 4Q17 4Q18 vs. 4Q17 As Reported % Revenue, As Revised % Service As Reported % Service under ASC 605 ($ in millions, except per share amounts) under ASC 606 net Adjustments under ASC 605 Revenue, net under ASC 605 Revenue, net $ Change % Change Revenue: Revenue, ne
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ASC 606 ASC 605 ASC 606 ASC 605 ($ in millions) 4Q18 4Q18 4Q17 2018 2018 2017 Net income as reported (GAAP) $ 22.8 $ 22.5 $ 11.3 $ 73.2 $ 81.6 $ 39.1 Income tax provision 6.6 5.8 2.4 20.8 22.6 17.8 Interest expense, net 1.6 1.6 2.1 8.2 8.2 7.6 Depreciation 2.4 2.4 2
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ASC 606 ASC 605 ASC 606 ASC 605 ($ in millions) 4Q18 4Q18 4Q17 2018 2018 2017 Net income as reported (GAAP) $ 22.8 $ 22.5 $ 11.3 $ 73.2 $ 81.6 $ 39.1 Amortization 7.4 7.4 9.5 29.6 29.6 37.9 Corporate campus lease payments-principal portion (A) (0.5) (0.5) (0.4)
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ASC 605 ASC 606 ($ in millions) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 Net income as reported (GAAP) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 24.0 $ 22.5 $ 14.6 $ 16.6 $ 19.3 $ 22.8 Income tax provision 5.3 4.8 5.3 2.4 3.6 5.6 7.7 5.8 3.1 4.
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ASC 605 ASC 606 ($ in millions, expect per share amounts) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 Net income as reported (GAAP) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 24.0 $ 22.5 $ 14.6 $ 16.6 $ 19.3 $ 22.8 Amortization 9.4 9.5 9.5 9.5
Slide 16: FY2019 Guidance Reconciliation under ASC 606
FY2019 Guidance Reconciliation under ASC 606 ($ 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) $ 85.2 $ 89.2 $ 2.27 $ 2.38 Adjustments: Amortization 14.8 14.8 0.39 0.39 Deferred fin