Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2018 Earnings Presentation
16 slides from Medpace's earnings presentation, Oct 29, 2018
Slide 1: Q3 2018 Financial Results
Q3 2018 October 29, 2018 Financial Results
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & 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 matters of histori
Slide 3: Q3 2018 – Key Operating Highlights
Q3 2018 – Key Operating Highlights ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 3Q18 3Q18 3Q17 % Change YTD18 YTD18 YTD17 % Change Revenue, net $179.3 -- -- -- $512.5 -- -- -- Service Revenue, net -- $124.0 $98.7 25.6% -- $350.2 $287.0 22.0% Net New Business Awards 227.6 150.1 112.1 33.9% 668.3 4
Slide 4: Backlog and New Award Trends
Backlog and New Award Trends 2.x Net Book-to-Bill Backlog Conversion Rate 21.5% 1.41x 21.2% 1.5x 1.27x 20.7% 1.23x 19.9% 19.9% 1.32x 19.4% 19.5% 19.5% 1.15x 1.18x 1.21x 1.x 1.11x 1.14x 1.05x 1.00x 18.7% 18.7% 18.3% .5x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 U
Slide 5: Q3 2018 – Key Financial Highlights
Q3 2018 – Key Financial Highlights ($ in millions, except per share data) ASC 606 ASC 605 ASC 606 ASC 605 3Q18 3Q18 3Q17 % Change(B) YTD18 YTD18 YTD17 % Change(B) Revenue, net $ 179.3 -- -- -- $ 512.5 -- -- -- Service Revenue, net -- $ 124.0 $ 98.7 25.6% -- $ 350.2 $ 287.0 22.0% EBITDA(A) 37.1 43.3
Slide 6: Key Financial Trends
Key Financial Trends ($ in millions) Revenue(A) ($ in millions) Adjusted EBITDA(B) $179.3 $42.7 180.0 $163.1 $170.1 $35.8 $31.0 130.0 34.4% 28.8% 28.0% 28.3% 28.4% 28.6% 30.4% 27.2% 80.0 $32.9 $36.4 $124.0 $27.5 $28.0 $28.7 $95.4 $93.8 $94.6 $98.7 $99.4 $108.4 $117.8 $26.2 $26.8 $27.0 17.6% 19.4% 20
Slide 7: YTD 2018 - Revenue Composition under ASC 606
YTD 2018- Revenue Composition under ASC 606 Therapeutic Area Customer Tier (B) Top 10 Customer Concentration Concentration Concentration (C) (A) OTH ONC Top 5 22% Large 26% 22% Pharma 7% DEV YTD 2018 Mid-Sized 2% Biopharma END 25% Small 4% Biopharma 68% Rest of CNS CV All Top 10 8% 14% Other 11% 67%
Slide 8: Leverage Position and Cash Flow
Leverage Position and Cash Flow ($ in millions) ($ in millions) ASC 606 ASC 605 ASC 606 ASC 605 Net Leverage(A) Trend (Quarterly) Free Cash Flow 3Q18 3Q18 3Q17 YTD18 YTD18 YTD17 Adjusted EBITDA (LTM) Net Leverage Operating Cash 145 $136.4 Flow (GAAP) $ 52.5 $ 52.5 $39.0 $ 117.1 $ 117.1 $68.7 135 $12
Slide 9: Full Year 2018 Guidance under ASC 605
Full Year 2018 Guidance under ASC 605 ($ in millions, except per share data) Previous Guidance Current Guidance (July 30, 2018) (October 29, 2018) Guidance Range Growth Rate(A) Guidance Range Growth Rate(A) Service Revenue, net $461.0 - $473.0 19.3% - 22.4% $474.0 - $479.0 22.7% - 23.9% Adjusted EBI
Slide 10: Appendix
Appendix
Slide 11: Q3 2018 – Income Statement
Q3 2018 – Income Statement 3Q18 3Q18 3Q17 3Q18 vs. 3Q17 As Reported % Revenue, As Revised % Service As Reported % Service under ASC 605 ($ in millions, except per share amounts) under ASC 606 net Adjustments under ASC 605 Revenue, net under ASC 605 Revenue, net $ Change % Change Revenue: Revenue, ne
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ASC 606 ASC 605 ASC 606 ASC 605 ASC 605 ($ in millions) 3Q18 3Q18 3Q17 YTD18 YTD18 YTD17 LTM 2018 LTM 2017 Net income as reported (GAAP) $ 19.3 $ 24.0 $ 9.8 $ 50.4 $ 59.1 $ 27.8 $ 70.4 $ 27.8 Income tax provision 6.2 7.7 5.3 14.2 16.9 15.4 19.3 15.7 Interest expense
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ASC 606 ASC 605 ASC 606 ASC 605 ($ in millions) 3Q18 3Q18 3Q17 YTD18 YTD18 YTD17 Net income as reported (GAAP) $ 19.3 $ 24.0 $ 9.8 $ 50.4 $ 59.1 $ 27.8 Amortization 7.4 7.4 9.5 22.2 22.2 28.4 Corporate campus lease payments-principal portion (A) (0.5) (0.5) (0.4
Slide 14: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends ASC 605 ASC 606 ($ in millions) 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q18 2Q18 3Q18 Net income (loss) as reported (GAAP) $ ( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 24.0 $ 14.6 $ 16.6 $ 19.3 Income tax provision 0.2 5.3 4.8 5.3 2.4 3.6 5.6 7.7 3.1 4.9 6.
Slide 15: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ASC 605 ASC 606 ($ in millions, expect per share amounts) 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q18 2Q18 3Q18 Net income (loss) as reported (GAAP) $( - ) $ 8.4 $ 9.6 $ 9.8 $ 11.3 $ 16.3 $ 18.8 $ 24.0 $ 14.6 $ 16.6 $ 19.3 Amortization 12.7 9.4 9.5 9.5 9.5
Slide 16: FY2018 Guidance Reconciliation under ASC 605
FY2018 Guidance Reconciliation under ASC 605 ($ 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) $ 79.9 $ 82.1 $ 2.16 $ 2.22 Adjustments: Amortization 29.6 29.6 0.80 0.80 Other transa