IQVIA Holdings, Inc. · NYSE:IQV
IQVIA — Q3 2019 Earnings Presentation
15 slides from IQVIA's earnings presentation, Oct 30, 2019
Slide 1: Q3 2019 Earnings Call
Q3 2019 Earnings Call October 30, 2019 Copyright © 2019 IQVIA. All rights reserved.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with IQVIA’s Q3 2019 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(1) Adjusted Diluted EPS(1) +7.9% CFx +5.0% CFx +12.7% AFx +6.7% AFx +5.7% AFx $1.60 $2,769 $593 $2,594 $561 $1.42 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Dollars are at actual foreign exchange rates. AFx is actual currency
Slide 4: 3rd Quarter and Year-to-Date Revenue
3rd Quarter and Year-to-Date Revenue $M Q3 YTD VPY% VPY% VPY% VPY% 2019 2018 2019 2018 AFx CFx AFx CFx Technology & Analytics $1,095 $1,014 8.0% 10.0% $3,272 $3,010 8.7% 11.4% Solutions Research & $1,466 $1,382 6.1% 6.8% $4,317 $4,097 5.4% 6.5% Development Solutions Contract Sales & $208 $198 5.1% 5
Slide 5: 3rd Quarter and Year-to-Date Profit
3rd Quarter and Year-to-Date Profit $M, except per share data Q3 YTD 2019 2018 2019 2018 Adjusted EBITDA (1) $593 $561 $1,758 $1,641 Net Income $57 $60 $175 $190 Diluted Earnings per Share $0.29 $0.29 $0.87 $0.91 Adjusted Net Income (1) $318 $294 $933 $849 Adjusted Diluted Earnings $1.60 $1.42 $4.65
Slide 6: R&D Solutions Backlog and NTM Revenue
R&D Solutions Backlog and NTM Revenue $B Backlog Next Twelve Months Revenue 18.03 18.30 17.13 17.19 5.1 16.40 4.8 4.9 4.9 4.6 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Dollars are at actual foreign exchange rates. NTM: Next twelve months. 5
Slide 7: 3rd Quarter Balance Sheet and Cash Flow Items and Metrics
3rd Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $863 Gross Debt $11,542 Net Debt $10,679 Gross Leverage Ratio (1) 4.9x Net Leverage Ratio (1) 4.6x Net Cash Provided by Operating Activities $330 Capital Expenditures $149 Free Cash Flow $181 Dollars are at actual f
Slide 8: Full-Year 2019 Revenue Guidance
Full-Year 2019 Revenue Guidance $M Feb 2019 July 2019 Oct 2019 CFx Revenue Growth 5.8% - 7.9% 6.7% - 8.2% 7.3% - 7.7% FX Impact ~(110 bps) ~(110 bps) ~(160 bps) AFx Revenue Growth 4.7% - 6.8% 5.6% - 7.1% 5.6% - 6.1% Guidance assumes current exchange rates remain unchanged from September 30, 2019 to
Slide 9: Full-Year 2019 Guidance
Full-Year 2019 Guidance $M, except per share data Revenue $11,000 - $11,050 VPY% 5.6% - 6.1% Adjusted EBITDA $2,393 - $2,407 7.6% - 8.2% VPY% Adjusted Diluted EPS $6.30 - $6.40 VPY% 13.5% - 15.3% Adjusted Book Tax rate (1) ~22% Adjusted Cash Tax rate (1) ~15% Dollars are at actual foreign exchange r
Slide 10: Q4 2019 Guidance
Q4 2019 Guidance $M, except per share data Guidance VPY% Revenue $2,807 - $2,857 4.4% - 6.3% Adjusted EBITDA $635 - $649 8.9% - 11.3% Adjusted Diluted EPS $1.65 - $1.75 10.0% - 16.7% Dollars are at actual foreign exchange rates. 9 Guidance assumes current exchange rates remain unchanged from Septemb
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 Reconciliation
Net Income to Adjusted EBITDA Reconciliation $M Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Income Attributable to IQVIA Holdings Inc. $ 57 $ 60 $ 175 $ 190 (Benefit from) provision for income taxes (1) (14) 48 29 Depreciation and amortization 299 283 888
Slide 14: Net Income to Adj. Net Income and Per Share Data Reconciliation
Net Income to Adj. Net Income and Per Share Data Reconciliation $M, except per share data Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Income Attributable to IQVIA Holdings Inc. $ 57 $ 60 $ 175 $ 190 (Benefit from) provision for income taxes (1) (14) 48 29
Slide 15: Leverage Ratios
Leverage Ratios $M Gross Debt, net of Original Issue Discount, as of September 30, 2019 $ 11,542 Net Debt as of September 30, 2019 $ 10,679 Adjusted EBITDA for the twelve months ended September 30, 2019 $ 2,341 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 4.9x Net Leverage Ratio (Net Debt/L