Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2019 Earnings Presentation
14 slides from Medpace's earnings presentation, Oct 28, 2019
Slide 1: Q3 2019 Financial Results
Q3 2019 FINANCIAL RESULTS OCTOBER 28, 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: Q3 2019 – Key Operating Highlights
Q 3 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) Third Quarter Year-to-Date 2019 2018 % Change 2019 2018 % Change Revenue, net $ 216.2 $ 179.3 20.6% $ 631.1 $ 512.5 23.1% Net New Business Awards $ 285.4 $ 227.6 25.4% $ 813.3 $ 668.3 21.7% Net Book-to-Bill (A) 1.32 1.27 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 18.7% 18.7% 18.8% 18.5% 18.3% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Net New Business Awards Ending Backlog and Est. NTM Backlog
Slide 5: Q3 2019 – Key Financial Highlights
Q3 2019 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2019 2018 % Change 2019 2018 % Change Revenue, net $ 216.2 $ 179.3 20.6% $ 631.1 $ 512.5 23.1% EBITDA(A) (B) $ 34.8 $ 37.1 (6.4%) $ 108.4 $ 100.2 8.2% % Margin 16.1% 20.7% n.m. 17.2% 19.6% n.m. Adjus
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A)(B) $214.1 $216.2 $40.7 $40.2 $192.1 $200.7 $37.1 $179.3 $33.4 $33.4 $34.8 $163.1 $170.1 $29.7 20.7% 21.2% 19.7% 18.2% 18.8% 16.7% 16.1% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Represents percent
Slide 7: YTD 2019 – Revenue Composition
YTD 2019 – REVENUE COMPOSITION Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH Large Top 5 ONC Pharma 20% 25% 29% Mid-Sized 6% Biopharma YTD 2019 19% Small Rest of CNS Top 10 Biopharma 8% 10% 75% All Other AVAI MET 70% 11% 16% CV 11% (A) OTH O
Slide 8: Leverage Position and Cash Flow
LEVERAGE POSITION AND CASH FLOW ($ in millions) ($ in millions) Third Quarter Year-to-Date Net Leverage(A) Trend (Quarterly) Free Cash Flow 2019 2018 2019 2018 EBITDA (LTM) Net Leverage Operating Cash Flow $ 64.3 $ 52.5 $ 144.9 $ 117.1 155 $151.2 $151.5 $149.1 (GAAP) 2.x $144.7 1.8x 145 135 Less: CA
Slide 9: Full Year 2019 Guidance
FULL YEAR 2019 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (July 29, 2019) (October 28, 2019) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Revenue, net $840.0 - $860.0 19.2% - 22.1% $840.0 - $860.0 19.2% - 22.1% EBITDA $144.0 - $150.0 2.2% – 6.5%
Slide 10: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 11: Q3 2019 – Income Statement
Q 3 2 0 1 9 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 3Q19 vs. 3Q18 ($ in millions, except per share amounts) 3Q19 net 3Q18 net $ Change % Change Revenue, net $ 216.2 100.0% $ 179.3 100.0% 37.0 20.6% Operating Expenses: Direct service costs, excluding depreciation and amortization 81.1 37.
Slide 12: EBITDA Reconciliation
E B I T D A R E C O N C I L I AT I O N Last ($ in millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 YTD18 YTD19 12 Months Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 50.4 $ 70.6 $ 93.4 Income tax provision 3.1 4.9 6.2 6.6 5.5 7.0 5.5 14.2 18.0 24.5 Interest expense, n
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 ($ in millions, expect per share amounts) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 YTD18 YTD19 Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 50.4 $ 70.6 Amortization 7.4 7.4 7.4 7.4 5.8 3.0 3.0 22.2 11.8 Corpor
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) $ 94.9 $ 99.7 $ 2.51 $ 2.64 Adjustments: Amortization 14.8 14.8 0.40 0.39 De