Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2021 Earnings Presentation
16 slides from Medpace's earnings presentation, Oct 25, 2021
Slide 1: Q3 2021 Financial Results
Q3 2021 FINANCIAL RESULTS OCTOBER 25, 2021
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 Metrics
COVID-19 METRICS L O W C O N C E N T R AT I O N R I S K F R O M C O V I D - 1 9 3Q21 YTD COVID-19 3Q21 YTD COVID-19 3Q21 COVID-19 Revenue Net Awards Ending Backlog $21.0M $10.1M $29.6M 3% of Total 1% of Total 2% of Total Revenue, net Net New Business Awards $9.7 $24.6 $8.6 $7.0 $6.2 $5.0 $5.2 $4.6 $
Slide 4: Q3 2021 – Key Operating Highlights
Q 3 2 0 2 1 – 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 2021 2020 % Change 2021 2020 % Change Revenue, net $ 295.6 $ 230.4 28.3% $ 833.8 $ 666.2 25.2% Net New Business Awards 408.0 315.4 29.4% 1,151.7 816.4 41.1% Net Book-to-Bill (A) 1.38 1.37 n.m. 1.38 1.
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 1.37x 1.38x 1.37x 1.39x 1.38x 18.7% 1.22x 1.24x 18.1% 18.0% 1.07x 17.2% 16.9% 17.1% 17.0% 15.8% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net New Business Awards Ending Backlo
Slide 6: Q3 2021 – Key Financial Highlights
Q3 2021 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2021 2020 % Change 2021 2020 % Change Revenue, net $ 295.6 $ 230.4 28.3% $ 833.8 $ 666.2 25.2% EBITDA(A) 60.1 51.9 15.7% 161.7 127.5 26.8% % Margin 20.3% 22.5% n.m. 19.4% 19.1% n.m. Net Income 48.6 4
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $295.6 $60.2 $60.1 $51.9 $53.6 $278.3 $47.9 $259.7 $260.0 $41.1 $40.6 $35.0 $229.9 $230.9 $230.4 23.2% $205.0 22.5% 20.6% 20.3% 17.9% 17.6% 17.1% 17.2% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue +22.6% - 23.7% YOY +7.5% YOY +22.2% YOY Guidance Range $925.9 $1,135 - $1,145 $861.0 $704.6 2018 2019 2020 2021 ($ in millions) EBITDA(A) +15.0% - 18.2% YOY +25.5% YOY +6.2% YOY Guidance Range $187.8 $216 - $222 $140.9 $149.6 2018 2019 2020 2021 A. See th
Slide 9: YTD 2021 – Revenue Composition
YTD 2021 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) Large Top 5 OTH (A) 17% 24% ONC Pharma Mid-Sized 7% Rest of 32% Top 10 Biopharma YTD 2021 16% 7% Small AVAI Biopharma 10% 77% CNS MET All Other 10% 14% 76% CV 10% (A) Large T
Slide 10: Q3 2021 – Cash Position
Q3 2021 – CASH POSITION ($ in millions) ($ in millions) Third Quarter Year-to-Date Free Cash Flow and Free Cash Flow Conversion(A) Free Cash Flow 2021 2020 2021 2020 Operating Cash Free Cash Flow Free Cash Flow Conversion % (A) $ 72.4 $ 59.8 $ 192.4 $ 153.2 Flow (GAAP) 140 162.3% Less: CAPEX 6.6 8.7
Slide 11: Full Year 2021 Guidance
FULL YEAR 2021 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (July 26, 2021) (October 25, 2021) Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $1,110.0 - $1,150.0 19.9% - 24.2% $1,135.0 - $1,145.0 22.6% - 23.7% EBITDA $205.0 - $215.0 9.2% - 14
Slide 12: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE ($ in millions) As of October 25, 2021 Guidance Range Revenue, net $1,400.0 - $1,460.0 EBITDA $262.0 - $278.0 12 MAKING THE COMPLEX SEAMLESS
Slide 13: Appendix
—=Q) ——0) —=0) 2) APPENDIX =O O A)
Slide 14: Q3 2021 – Income Statement
Q 3 2 0 2 1 – I N C O M E S TAT E M E N T % Revenue, % Revenue, 3Q21 vs. 3Q20 ($ in millions, except per share amounts) 3Q21 net 3Q20 net $ Change % Change Revenue, net $ 295.6 100.0% $ 230.4 100.0% 65.2 28.3% Operating Expenses: Direct service costs, excluding depreciation and amortization 112.5 38
Slide 15: 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 Full Year ($ in millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 2018 2019 2020 Net income as reported (GAAP) $ 29.8 $ 29.0 $ 24.1 $ 41.5 $ 50.9 $ 43.3 $ 39.9 $ 48.6 $ 73.2 $ 100.4 $ 145.4 Income tax provision 6.4 7.5 6.3 5.5 3.8 5.2 2.8 6.
Slide 16: FY 2021 Guidance Reconciliation
F Y 2 0 2 1 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 Net Income diluted share Low High Low High Net Income and Net Income per diluted share (GAAP) $ 176.0 $ 180.0 $ 4.66 $ 4.77 Income tax provision 18.5 20.5 Interest income, net - - Deprecia