Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q2 2019 Earnings Presentation
14 slides from Medpace's earnings presentation, Jul 29, 2019
Slide 1: Q2 2019 Financial Results
Q2 2019 FINANCIAL RESULTS JULY 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: Q2 2019 – Key Operating Highlights
Q 2 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) Second Quarter Year-to-Date 2019 2018 % Change 2019 2018 % Change Revenue, net $ 214.1 $ 170.1 25.8% $ 414.8 $ 333.2 24.5% Net New Business Awards $ 279.2 $ 239.9 16.4% $ 527.9 $ 440.7 19.8% Net Book-to-Bill (A) 1.30 1.41 n.m.
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 1.24x 1.30x 19.0% 1.23x 1.20x 18.7% 18.7% 18.8% 18.3% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Net New Business Awards Ending Backlog and Est. NTM Backlog Conversion(A) $1,171.
Slide 5: Q2 2019 – Key Financial Highlights
Q2 2019 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Second Quarter Year-to-Date 2019 2018 % Change 2019 2018 % Change Revenue, net $ 214.1 $ 170.1 25.8% $ 414.8 $ 333.2 24.5% EBITDA(A) (B) $ 40.2 $ 33.4 20.3% $ 73.7 $ 63.1 16.7% % Margin 18.8% 19.7% n.m. 17.8% 18.9% n.m. Adjust
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A)(B) $214.1 $40.7 $40.2 $192.1 $200.7 $37.1 $170.1 $179.3 $33.4 $33.4 $163.1 $29.7 20.7% 21.2% 19.7% 18.2% 18.8% 16.7% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Represents percent of Revenue ($ in millions) A
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 21% 25% 29% Mid-Sized 5% Biopharma YTD 2019 DEV 20% 2% Small Rest of CNS Biopharma Top 10 8% 75% All Other 10% MET 69% CV 16% 10% AVAI 10% (A
Slide 8: Leverage Position and Cash Flow
LEVERAGE POSITION AND CASH FLOW ($ in millions) ($ in millions) Second Quarter Year-to-Date Net Leverage(A) Trend (Quarterly) Free Cash Flow 2019 2018 2019 2018 EBITDA (LTM) Net Leverage Operating Cash Flow $ 46.6 $ 41.3 $ 80.6 $ 64.6 155 $151.2 $151.5 (GAAP) 2.x $144.7 1.8x 145 $138.9 135 Less: CAP
Slide 9: Full Year 2019 Guidance
FULL YEAR 2019 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (April 29, 2019) (July 29, 2019) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Revenue, net $813.0 - $837.0 15.4% - 18.8% $840.0 - $860.0 19.2% - 22.1% EBITDA $137.0 - $145.0 (2.8%) – 2.9%
Slide 10: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 11: Q2 2019 – Income Statement
Q 2 2 0 1 9 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 2Q19 vs. 2Q18 ($ in millions, except per share amounts) 2Q19 net 2Q18 net $ Change % Change Revenue, net $ 214.1 100.0% $ 170.1 100.0% 44.0 25.8% Operating Expenses: Direct service costs, excluding depreciation and amortization 79.3 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 YTD18 YTD19 12 Months Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 31.1 $ 46.7 $ 88.7 Income tax provision 3.1 4.9 6.2 6.6 5.5 7.0 8.1 12.5 25.2 Interest expense, net 2.3 2.3 1.9 1.
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 YTD18 YTD19 Net income as reported (GAAP) $ 14.6 $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 31.1 $ 46.7 Amortization 7.4 7.4 7.4 7.4 5.8 3.0 14.8 8.8 Corporate campus lease
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) $ 93.4 $ 97.4 $ 2.49 $ 2.60 Adjustments: Amortization 14.8 14.8 0.39 0.39 De