Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q1 2020 Earnings Presentation
12 slides from Medpace's earnings presentation, Apr 28, 2020
Slide 1: Q1 2020 Financial Results
Q1 2020 FINANCIAL RESULTS APRIL 28, 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: COVID-19 Impact on Awarded Trials
C O V I D - 1 9 I M PA C T O N AWA R D E D T R I A L S • The operational and financial impact from the COVID-19 pandemic on our expected Q2-Q4 revenue roll-off for awarded trials is influenced by the stage of the trial. Portfolio of Awarded Trials by Stage of Trial Recruitment Complete Studies in Re
Slide 4: Q1 2020 – Key Operating Highlights
Q 1 2 0 2 0 – 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 2020 2019 % Change Revenue, net $ 230.9 $ 200.7 15.0% Net New Business Awards $ 246.9 $ 248.7 (0.7%) Net Book-to-Bill (A) 1.07 1.24 n.m. Net Book-to-Bill (LTM) 1.23 1.28 n.m. Ending Backlog $ 1,294.2 $ 1,108.1 16.
Slide 5: 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% 1.20x 1.24x 1.22x 18.8% 1.07x 18.7% 18.5% 18.7% 18.3% 18.0% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Net New Business Awards Ending Backlo
Slide 6: Q1 2020 – Key Financial Highlights
Q1 2020 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) First Quarter 2020 2019 % Change Revenue, net $ 230.9 $ 200.7 15.0% EBITDA(A) $ 40.6 $ 33.4 21.3% % Margin 17.6% 16.7% n.m. Net Income $ 29.0 $ 19.2 50.8% Net Income per diluted share $ 0.76 $ 0.51 49.0% A. See the appendix fo
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $229.9 $230.9 $40.7 $40.2 $41.1 $40.6 $214.1 $216.2 $37.1 $192.1 $200.7 $33.4 $33.4 $34.8 $170.1 $179.3 20.7% 21.2% 19.7% 18.8% 17.9% 17.6% 16.7% 16.1% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q
Slide 8: Q1 2020 – Revenue Composition
Q1 2020 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration (B) Concentration (C) Concentration (D) OTH (A) Large Top 5 22% ONC Pharma 17% 30% Mid-Sized 9% Rest of Biopharma Top 10 Q1 2020 16% 9% CNS Small 10% Biopharma 75% AVAI MET All Other 11% 16% 74% CV 11% (A) Lar
Slide 9: Leverage Position and Cash Flow
LEVERAGE POSITION AND CASH FLOW ($ in millions) ($ in millions) First Quarter Free Cash Flow and Free Cash Flow Conversion(A) Free Cash Flow 2020 2019 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash Flow (GAAP) $ 49.1 $ 34.0 70 60 $58.1 $51.2 Less: CAPEX 5.6 2.5 50 $43.2 $43.6 167.2% 4
Slide 10: Appendix
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Slide 11: Q1 2020 – Income Statement
Q 1 2 0 2 0 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 1Q20 vs. 1Q19 ($ in millions, except per share amounts) 1Q20 net 1Q19 net $ Change % Change Revenue, net $ 230.9 100.0% $ 200.7 100.0% 30.1 15.0% Operating Expenses: Direct service costs, excluding depreciation and amortization 88.8 38.
Slide 12: EBITDA Reconciliation
E B I T D A R E C O N C I L I AT I O N ($ in millions) 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Net income as reported (GAAP) $ 16.6 $ 19.3 $ 22.8 $ 19.2 $ 27.5 $ 24.0 $ 29.8 $ 29.0 Income tax provision 4.9 6.2 6.6 5.5 7.0 5.5 6.4 7.5 Interest (income) expense, net 2.3 1.9 1.6 1.0 0.7 0.3 (0.4) (0.4)