Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — William Blair 37th Annual Growth Stock Conference 2017
19 slides from Medpace's conference presentation, Jun 13, 2017
Slide 1: William Blair 37th Annual Growth Stock Conference
William Blair 37th Annual Growth Stock Conference June 13, 2017 Jesse J. Geiger CFO & COO, Laboratory Operations
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: The Medpace Way: Scientifically-Driven, Full-Service CRO
The Medpace Way: Scientifically-Driven, Full-Service CRO Disciplined and Integrated Full-Service Operating Model Full-service approach (avoids functional or partial outsourcing services) delivers timely, efficient, and high-quality results for our customers, enabling us to maintain robust margin
Slide 4: High-Science Approach with Deep Therapeutic Expertise
High-Science Approach with Deep Therapeutic Expertise Entry into, and growth within, target areas 1Q17 Revenue by Therapeutic Area hinges on team and training built around 1Q17 Revenue:$93.8 million highly-qualified physician leads with strong Other (1) clinical, scientific, and regulatory experti
Slide 5: Diversified Customer Base
Diversified Customer Base o Focus on customers utilizing a full-service outsourcing model (more prevalent outside top 20 pharma) These customers often do not have required development expertise and infrastructure in-house These customers represent an attractive R&D growth segment o Customer Dive
Slide 6: Attractive Core Addressable Market
Attractive Core Addressable Market Large Pharmaceutical CRO Addressable Market(1)(3) $16 billion Addressable Phase Core I-IV Clinical Addressable Estimated Medpace Small and Development Spend Market(3) Mid-Sized Biopharmaceutical Medpace Core Market Market Share(4) $50 billion $23 billion Small- and
Slide 7: Small and Mid-Sized Biopharmaceutical Focus
Small and Mid-Sized Biopharmaceutical Focus Risks Rewards o Funding challenges could result in uncertain o Attractive opportunity for continued timing of award decisions and ultimately growth revenue o Core customer segment firmly at the o Potential bad debt exposure forefront of medical innovation
Slide 8: Global Platform with Scalable Infrastructure
Global Platform with Scalable Infrastructure Overview Clinical Operations Employee Breakdown by Geography(1) Asia/Pacific South America o Global, full-service CRO with requisite scale to support large, multi-national studies 4% and Africa 1% o Operations in 35 countries, 30 offices in 25 countries E
Slide 9: Backlog & New Award Trend
Backlog & New Award Trend 2.x Net Book-to-Bill Backlog Conversion Rate 1.5x 1.24x 20.7% 20.4% 1.21x 1.21x 1.15x 20.4% 20.3% 20.4% 1.11x 1.05x 19.9% 0.93x 1.00x 19.4% 1.x 18.9% .5x .x 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net New Business Awards Ending Backlo
Slide 10: Key Financial Trends
Key Financial Trends ($ in millions) ($ in millions) Service Revenue, net Adjusted EBITDA(A) 100.0 $94.8 $95.4 $93.8 $92.6 $87.8 90.0 $85.7 $30.7 $29.5 $81.6 $26.1 $26.8 $25.8 $27.5 $26.2 $76.8 $24.9 80.0 70.0 32.5% 31.9% 31.3% 33.1% 31.1% 29.3% 28.8% 28.0% 60.0 50.0 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q
Slide 11: Robust Margins with Demonstrated Consistency
Robust Margins with Demonstrated Consistency o Consistently produced attractive Adjusted EBITDA margins since founding: Key drivers are business mix and organically grown, full-service model (avoids functional or partial outsourcing services) o Maintained average Adjusted EBITDA margins in excess
Slide 12: Attractive Free Cash Flow Profile
Attractive Free Cash Flow Profile ($ in millions) $225 120% 110% 77% $150 74% 80% 68% $113 $101 $94 $92 $85 $78 $77 $75 $69 40% $0 0% 2013 2014 2015 2016 Adjusted EBITDA (1) Free Cash Flow (2) FCF Conversion (3) Net Debt / Adj. 1.7x 4.9x 3.7x 1.1x EBITDA Capital $4.6 $5.3 $6.5 $13.5 Expenditures % o
Slide 13: Confidence in Future Growth
Confidence in Future Growth Small and Mid-Sized Biopharma continues to be a growing and 1 innovative segment of the market 2 We have a good reputation in this segment as a leader in drug development 3 Our full-service therapeutic-led approach positions us well to add value to our customers’ programs
Slide 14: Appendix
Appendix
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (S in millions) 2013 2014 2015 2016 Net income (loss) (GAAP) $ 24.8 $ (15.6) $ (8.7) $ 13.4 Income tax provision (benefit) 14.3 (5.7) 0.8 8.5 Interest expense, net 18.0 26.5 27.3 19.4 Depreciation 6.7 6.4 6.4 7.5 Amortization 23.9 61.6 63.1 50.7 EBITDA (non-GAAP) $ 87.
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (S in millions) 2013 2014 2015 2016 Operating Cash Flow (GAAP) $ 98.1 $ 75.3 $ 85.9 $ 91.7 Less: CAPEX (4.6) (5.3) (6.5) (13.5) Less: Campus Lease (A) - (1.4) (1.3) (1.5) Free Cash Flow (non-GAAP) $ 93.6 $ 68.6 $ 78.1 $ 76.7 Adjusted EBITDA - (non-GAAP) $ 85.4 $ 92.2 $
Slide 17: Adjusted EBITDA Reconciliation Trends
Adjusted EBITDA Reconciliation Trends (S in millions) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net income (loss) as reported (GAAP) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) 8.4 Income tax provision 0.9 0.6 0.9 2.5 3.2 2.5 0.2 5.3 Interest expense, net 6.9 6.7 6.6 6.0 5.9 4.7 2.8 1.8 Depreciati
Slide 18: Adjusted Net Income Reconciliation Trends
Adjusted Net Income Reconciliation Trends ($ in millions, expect per share amounts) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net income (loss) as reported (GAAP) $ 0.1 $ (0.1) $ (8.6) $ 3.4 $ 5.0 $ 5.0 $ ( - ) 8.4 - - - Amortization 17.0 15.8 13.1 12.7 12.7 12.7 12.7 9.4 Stock based compensation expe
Slide 19: Glossary
Glossary 1) Adjusted EBITDA is defined as EBITDA, adjusted to exclude non-cash liability-based stock awards, mark-to-market adjustments and CEO 2015 award only, private equity transaction-related cost, corporate campus lease payments, non-recurring litigation matters, goodwill impairment charges, an
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