IQVIA Holdings, Inc. · NYSE:IQV
IQVIA — Q3 2018 Earnings Presentation
15 slides from IQVIA's earnings presentation, Oct 22, 2018
Slide 1: Q3 2018 Earnings Call
Q3 2018 Earnings Call October 22, 2018 Copyright © 2018 IQVIA. All rights reserved.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with IQVIA’s Q3 2018 earnings call Safe Harbor Statement for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 19
Slide 3: 3rd Quarter Results
3rd Quarter Results $M, except per share data Revenue Adjusted EBITDA Adjusted Diluted EPS +6.3% CFx +8.4% CFx +19.3% AFx +5.2% AFx +9.4% AFx $1.42 $2,594 $561 $2,466 $513 $1.19 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Dollars are at actual foreign exchange rates. AFx is actual currency, CFx
Slide 4: Year-to-Date Adjusted EBITDA Margin Expansion
Year-to-Date Adjusted EBITDA Margin Expansion CFx 140 bps 120 bps (190) bps 70 bps Revenue Integration/ Investments/ Margin Conversion Cost Synergy Acquisitions Expansion 3 CFx is constant currency.
Slide 5: 3rd Quarter and Year-to-Date Revenue
3rd Quarter and Year-to-Date Revenue $M Q3 YTD VPY% VPY% VPY% VPY% 2018 2017 2018 2017 AFx CFx AFx CFx Technology & Analytics $1,014 $898 12.9% 15.0% $3,010 $2,646 13.8% 12.5% Solutions Research & $1,382 $1,341 3.1% 3.5% $4,097 $3,836 6.8% 5.8% Development Solutions Contract Sales & $198 $227 (12.8)
Slide 6: 3rd Quarter and Year-to-Date Profit
3rd Quarter and Year-to-Date Profit $M, except per share data Q3 YTD 2018 2017 2018 2017 Adjusted EBITDA (1) $561 $513 $1,641 $1,484 Net Income $60 $88 $190 $250 Diluted Earnings per Share $0.29 $0.40 $0.91 $1.11 Adjusted Net Income (1) $294 $260 $849 $753 Adjusted Diluted Earnings $1.42 $1.19 $4.05
Slide 7: R&D Solutions LTM Contracted Services Net New Business
R&D Solutions LTM Contracted Services(1) Net New Business $B +21.1% 5.37 +22.9% 4.37 +15.7% +5.6% LTM Q3 2017 LTM Q3 2018 LTM: Last twelve months. 6 (1) Services Net New Business excludes reimbursed expenses (i.e. pass through).
Slide 8: R&D Solutions ASC 606 Contracted Backlog
R&D Solutions ASC 606 Contracted Backlog $B 16.40 15.73 15.16 14.84 Q4 2017 Q1 2018 Q2 2018 Q3 2018 LTM Backlog Coverage (1) as of 09/30/2018 3.06x NTM Backlog Estimated to be Converted to Revenue ~$4.6B Dollars are at actual foreign exchange rates. LTM: Last twelve months; NTM: Next twelve months.
Slide 9: 3rd Quarter Balance Sheet and Cash Flow Items and Metrics
3rd Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $827 Gross Debt $10,619 Net Debt $9,792 Gross Leverage Ratio (1) 4.9x Net Leverage Ratio (1) 4.5x Net Cash Provided by Operating Activities $344 Capital Expenditures $(123) Free Cash Flow $221 Dollars are at actual
Slide 10: Full-Year 2018 Guidance
Full-Year 2018 Guidance $M, except per share data Revenue $10,300 - $10,350 VPY% 6.2% - 6.7% Adjusted EBITDA $2,195 - $2,225 VPY% 9.2% - 10.7% Adjusted Diluted EPS $5.45 - $5.55 VPY% 19.8% - 22.0% Adjusted Book Tax rate (1) ~23% Adjusted Cash Tax rate (1) ~17% Dollars are at actual foreign exchange
Slide 11: IMS Health & Quintiles are now IQVIA
IMS Health & Quintiles are now VIA 10
Slide 12: Appendix
IMS Health & Quintiles are now VIA = Appendix a
Slide 13: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net Income $ 60 $ 88 $ 190 $ 250 Provision for income taxes (14) (3) 29 7 Depreciation and amortization 283 256 847 733 Interest expense, net 103 91 303 244 Income in unconsolidated
Slide 14: Net Income to Adjusted Net Income and Per Share Data
Net Income to Adjusted Net Income and Per Share Data $M, except per share data Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net Income $ 60 $ 88 $ 190 $ 250 Provision for income taxes (14) (3) 29 7 Purchase accounting amortization 216 193 651 553 Income in unc
Slide 15: Leverage Ratios
Leverage Ratios $M Gross Debt, net of Original Issue Discount, as of September 30, 2018 $ 10,619 Net Debt as of September 30, 2018 $ 9,792 Adjusted EBITDA for the twelve months ended September 30, 2018 $ 2,167 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 4.9x Net Leverage Ratio (Net Debt/LT