Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q1 2019 Earnings Presentation
14 slides from Medpace's earnings presentation, Apr 29, 2019
Slide 1: Q1 2019 Financial Results
Q1 2019 FINANCIAL RESULTS APRIL 29, 2019
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: Q1 2019 – Key Operating Highlights
Q 1 2 0 1 9 – K E Y O P E R AT I N G H I G H L I G H T S ($ in millions) First Quarter 2019 2018 % Change Revenue, net $ 200.7 $ 163.1 23.1% Net New Business Awards $ 248.7 $ 200.7 23.9% Net Book-to-Bill (A) 1.24 1.23 n.m. Net Book-to-Bill (LTM) 1.28 n.a. n.m. Ending Backlog $ 1,108.1 $ 909.5 21.8%
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 1.41x 19.0% 1.27x 1.24x 18.7% 18.7% 18.8% 1.23x 1.20x 18.3% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Net New Business Awards Ending Backlog and Est. NTM Backlog Conversion(A) $1,108.1 $248.7 $1,024.5 $1,0
Slide 5: Q1 2019 – Key Financial Highlights
Q1 2019 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) First Quarter 2019 2018 % Change Revenue, net $ 200.7 $ 163.1 23.1% EBITDA(A) (B) $ 33.4 $ 29.7 12.7% % Margin 16.7% 18.2% n.m. Adjusted Net Income(A) $ 23.8 $ 20.0 18.9% Adjusted Net Income per diluted $ 0.64 $ 0.55 16.4% sha
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A)(B) $40.7 $192.1 $200.7 $37.1 $170.1 $179.3 $33.4 $33.4 $163.1 $29.7 20.7% 21.2% 19.7% 18.2% 16.7% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Represents percent of Revenue ($ in millions) Adjusted Net Income(A) Adjuste
Slide 7: Q1 2019 – Revenue Composition
Q1 2019 – REVENUE COMPOSITION Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Large Top 5 26% 28% Pharma 21% Mid-Sized 4% Biopharma Q1 2019 21% DEV 2% Small Rest of Biopharma CNS All Other Top 10 75% 7% MET 68% 11% AVAI 17% 10% CV 10% (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 2019 2018 EBITDA (LTM) Net Leverage Operating Cash Flow (GAAP) $ 34.0 $ 23.3 155 $151.2 6.x $144.7 145 $138.9 5.x 135 $124.3 Less: CAPEX 2.5 4.0 125 4.x 115 3.x 105 (F) 1.1x
Slide 9: Full Year 2019 Guidance
FULL YEAR 2019 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (February 25, 2019) (April 29, 2019) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Revenue, net $783.0 - $807.0 11.1% - 14.5% $813.0 - $837.0 15.4% - 18.8% EBITDA n.a. n.a. $137.0 - $145.0
Slide 10: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 11: Q1 2019 – Income Statement
Q 1 2 0 1 9 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 1Q19 vs. 1Q18 ($ in millions, except per share amounts) 1Q19 net 1Q18 net $ Change % Change Revenue, net $ 200.7 100.0% $ 163.1 100.0% 37.7 23.1% Operating Expenses: Direct service costs, excluding depreciation and amortization 75.1 37.
Slide 12: EBITDA Reconciliation Trends
E B I T D A R E C O N C I L I AT I O N T R E N D S Last ($ in millions) 1Q18 2Q18 3Q18 4Q18 1Q19 12 Months Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 77.8 Income tax provision 3.1 4.9 6.2 6.6 5.5 23.1 Interest expense, net 2.3 2.3 1.9 1.6 1.0 6.8 Depreciation 2.3 2.2 2.3 2.4
Slide 13: Adjusted Net Income Reconciliation Trends
A D J U S T E D N E T I N C O M E R E C O N C I L I AT I O N T R E N D S ($ in millions, expect per share amounts) 1Q18 2Q18 3Q18 4Q18 1Q19 Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 Amortization 7.4 7.4 7.4 7.4 5.8 Corporate campus lease payments-principal portion (A) (0.5) (0
Slide 14: FY 2019 Guidance Reconciliation
F Y 2 0 1 9 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) 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 De