Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — Q1 2020 Earnings Presentation
20 slides from Iqvia's earnings presentation, Apr 28, 2020
Slide 1: Q1 2020 Earnings Call
Q1 2020 Earnings Call April 28, 2020 © 2020. All rights reserved. IQVIA® is a registered trademark of IQVIA Inc. in the United States, the European Union, and various other countries.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with IQVIA’s Q1 2020 earnings call Safe Harbor Statement for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 19
Slide 3: Legal: Non-GAAP Information and Estimated COVID-19 Impact
Legal Non-GAAP Information and Estimated COVID-19 Impact This presentation includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings pe
Slide 4: Organizational priorities
Organizational priorities Mitigating Disruption to Clinical Safety First Trials • No international travel, essential domestic • Accessing patients and HCP’s remotely travel only • Remote monitoring • 95% of employees working remotely with • Virtual trials enabled by StudyHub adequate VPN • Televisit
Slide 5: Operational Impact Summary
Operational Impact Summary R&DS TAS CSMS R&DS TAS CSMS (+) Data collections and related activities (+) Data network access, extraction and (+) Customers reluctant in the short term largely on track processing fully operational to modify commercial footprint on recovery expectations (+) Remote monito
Slide 6: 1st Quarter Results
1st Quarter Results $M, except per share data Revenue Adjusted EBITDA(1) Adjusted Diluted EPS(1) +3.7% CFx (4.3)% AFx (2.0)% AFx +2.6% AFx $1.53 $2,754 $1.50 $2,684 $587 $562 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is
Slide 7: 1st Quarter Revenue
1st Quarter Revenue $M 2020 2019 VPY% AFx VPY% CFx Technology & Analytics $ 1,117 $1,075 3.9% 5.5% Solutions Research & Development $ 1,441 $1,416 1.8% 2.4% Solutions Contract Sales & Medical $ 196 $193 1.6% 2.6% Solutions Total Revenue $ 2,754 $2,684 2.6% 3.7% Dollars are at actual foreign exchange
Slide 8: 1st Quarter Profit
1st Quarter Profit $M, except per share data 2020 2019 Adjusted EBITDA (1) $562 $587 Net Income $82 $58 Diluted Earnings per Share $0.42 $0.29 Adjusted Net Income (1) $294 $309 Adjusted Diluted Earnings per $1.50 $1.53 Share (1) Dollars are at actual foreign exchange rates. (1) See reconciliations o
Slide 9: R&D Solutions Backlog
R&D Solutions Backlog $B as of March 31 19.6 17.2 * 15.2 13.7* Q1 17 Q1 18 Q1 19 Q1 20 8 * Estimated to reflect adoption of ASC 606
Slide 10: 1st Quarter Balance Sheet and Cash Flow Items and Metrics
1st Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $927 Gross Debt $12,033 Net Debt $11,106 Gross Leverage Ratio (1) 5.1x Net Leverage Ratio (1) 4.7x Net Cash Provided by Operating Activities $163 Capital Expenditures $141 Free Cash Flow $22 Dollars are at actual fo
Slide 11: Strong liquidity
Strong liquidity Debt Maintenance Covenants Requirement Actual at 3/31/2020 Senior Secured Net Leverage ≤ 4.00x 2.17x Interest Coverage ≥ 3.50x 5.92x $1.4 billion of capacity on $1.5 billion revolver as of March 31, 2020 Well laddered debt maturities, with first maturity (TLA and revolver) due 2023
Slide 12: China case study
China case study • Jan 23 - lockdown of Hubei • Schools in 3 of 26 • Most schools • Hubei schools • Feb 12 - new cases reach peak provinces reopen outside Hubei re- re-open • Mar 17 - no new domestic • ~90% manufacturing opened • 70% of Hubei cases opened outside Hubei, • 100% of hospitals hospitals
Slide 13: Proprietary model predicts virus peaks
Proprietary model predicts virus peaks Number of predicted active* COVID-19 Cases per 100k population 260 US: Early May 240 220 200 Spain: Mid Apr 180 160 UK: Mid - May 140 Italy: Late Apr 120 100 France: Late Apr 80 60 40 Germany: Early Apr Japan: End May 20 China: Mid Feb 0 1-Feb 1-Mar 1-Apr 1-May
Slide 14: Full-Year 2020 Guidance
Full-Year 2020 Guidance $M, except per share data Revenue $10,600 - $10,925 Adjusted EBITDA $2,200 - $2,300 Adjusted Diluted EPS $5.75 - $6.10 . Guidance assumes foreign currency rates at April 24, 2020 remain in effect for the rest of the year 13
Slide 15: Q2 2020 Guidance
Q2 2020 Guidance $M, except per share data Revenue $2,365 - $2,440 Adjusted EBITDA $445 - $470 Adjusted Diluted EPS $1.00 - $1.09 Guidance assumes foreign currency rates at April 24, 2020 remain in effect for the remainder of the quarter 14
Slide 16: Q&A
Q&A 15
Slide 17: Appendix
SSIQVIA Appendix
Slide 18: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation $M Three Months Ended March 31, 2020 2019 Net Income Attributable to IQVIA Holdings Inc. $ 82 $ 58 Provision for income taxes 17 41 Depreciation and amortization 316 295 Interest expense, net 104 108 (Income) loss in unconsolidated affiliates (6) 1 Income
Slide 19: Net Income to Adj. Net Income and Per Share Data Reconciliation
Net Income to Adj. Net Income and Per Share Data Reconciliation $M, except per share data Three Months Ended March 31, 2020 2019 Net Income attributable to IQVIA Holdings, Inc. $ 82 $ 58 Provision for income taxes 17 41 Purchase accounting amortization (1) 239 225 (Income) loss in unconsolidated aff
Slide 20: Leverage Ratios
Leverage Ratios $M (in millions) Gross Debt, net of Original Issue Discount, as of March 31, 2020 $ 12,033 Net Debt as of March 31, 2020 $ 11,106 Adjusted EBITDA for the twelve months ended March 31, 2020 $ 2,375 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 5.1x Net Leverage Ratio (Net Debt