Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2019 Earnings Presentation
14 slides from Medpace's earnings presentation, Feb 24, 2020
Slide 1: Q4 2019 Financial Results
Q4 2019 FINANCIAL RESULTS FEBRUARY 24, 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: Q4 2019 – Key Operating Highlights
Q 4 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) Fourth Quarter Full Year 2019 2018 % Change 2019 2018 % Change Revenue, net $ 229.9 $ 192.1 19.7% $ 861.0 $ 704.6 22.2% Net New Business Awards $ 281.1 $ 231.2 21.6% $ 1,094.4 $ 899.4 21.7% Net Book-to-Bill (A) 1.22 1.20 n.m. 1
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 19.3% 1.27x 1.30x 1.32x 19.0% 1.23x 1.20x 1.24x 1.22x 18.7% 18.7% 18.8% 18.7% 18.5% 18.3% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Net New Business Awards Ending Backlo
Slide 5: Q4 2019 – Key Financial Highlights
Q4 2019 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Fourth Quarter Full Year 2019 2018 % Change 2019 2018 % Change Revenue, net $ 229.9 $ 192.1 19.7% $ 861.0 $ 704.6 22.2% EBITDA(A) (B) $ 41.1 $ 40.7 1.2% $ 149.6 $ 140.9 6.2% % Margin 17.9% 21.2% n.m. 17.4% 20.0% n.m. Net Incom
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A)(B) $229.9 $40.7 $40.2 $41.1 $214.1 $216.2 $37.1 $192.1 $200.7 $33.4 $33.4 $34.8 $179.3 $163.1 $170.1 $29.7 20.7% 21.2% 19.7% 18.2% 18.8% 17.9% 16.7% 16.1% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Slide 7: 2019 – Revenue Composition
2019 – REVENUE COMPOSITION Therapeutic Area Customer Tier (B) (D) Top 10 Customer Concentration Concentration Concentration (C) (A) Large Top 5 OTH ONC 19% Pharma 26% 30% 10% Mid-Sized Rest of Biopharma 2019 Top 10 19% 10% Small CNS Biopharma 8% 71% All Other AVAI MET 71% 10% 16% CV 10% (A) OTH ONC
Slide 8: Leverage Position and Cash Flow
LEVERAGE POSITION AND CASH FLOW ($ in millions) ($ in millions) Fourth Quarter Full Year Net Leverage(A) Trend (Quarterly) Free Cash Flow 2019 2018 2019 2018 EBITDA (LTM) Net Leverage Operating Cash Flow $ 56.9 $ 39.4 $ 201.9 $ 156.6 155 $151.5 $149.1 $149.6 (GAAP) 2.x $144.7 1.8x 145 135 Less: CAPE
Slide 9: Full Year 2020 Guidance
FULL YEAR 2020 GUIDANCE ($ in millions, except per share data) As of February 24, 2020 Guidance Range Growth Rate Revenue, net $975.0 - $1,005.0 13.2% - 16.7% EBITDA $170.0 - $178.0 13.6% – 19.0% GAAP Net Income $123.4 - $127.4 22.9% – 26.8% GAAP Net Income per diluted share $3.24 - $3.34 21.3% – 25
Slide 10: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 11: Q4 2019 – Income Statement
Q 4 2 0 1 9 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 4Q19 vs. 4Q18 ($ in millions, except per share amounts) 4Q19 net 4Q18 net $ Change % Change Revenue, net $ 229.9 100.0% $ 192.1 100.0% 37.8 19.7% Operating Expenses: Direct service costs, excluding depreciation and amortization 85.5 37.
Slide 12: EBITDA Reconciliation
E B I T D A R E C O N C I L I AT I O N Full Year Full Year ($ in millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 29.8 $ 73.2 $ 100.4 Income tax provision 3.1 4.9 6.2 6.6 5.5 7.0 5.5 6.4 20.8 24.4 Interest (i
Slide 13: Adjusted Net Income Reconciliation
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 Full Year Full Year ($ in millions, except per share amounts) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 29.8 $ 73.2 $ 100.4 Amortization 7.4 7.4 7.4 7
Slide 14: FY 2020 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) $ 123.4 $ 127.4 $ 3.24 $ 3.34 Amortization 7.9 7.9 Depreciation 11.4 11.4 Income tax provision