Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Medpace Holdings, Inc. Reports Third Quarter 2021 Results By: Medpace Holdings, Inc. via Business Wire October 25, 2021 at 16:15 PM EDT Revenue of $295.6 million in the third quarter of 2021 increased 28.3% from revenue of $230.4 million for the comparable prior-year period, representing a backlog conversion rate of 17.0%. Net new business awards were $408.0 million in the third quarter of 2021, representing an increase of 29.4% from net new business awards of $315.4 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.38x. Third quarter of 2021 GAAP net income was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the comparable prior-year period. Net income margin was 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA was $60.1 million for the third quarter of 2021, an increase of 15.7% from EBITDA of $51.9 million for the comparable prior-year period, resulting in an EBITDA margin of 20.3%. Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial Results Revenue for the three months ended September 30, 2021 increased 28.3% to $295.6 million, compared to $230.4 million for the comparable prior-year period. On a constant currency organic basis, revenue for the third quarter of 2021 increased 28.1% compared to the third quarter of 2020. Backlog as of September 30, 2021 grew 29.0% to $1.8 billion from $1.4 billion as of September 30, 2020. Net new business awards were $408.0 million, representing a net book-to-bill ratio of 1.38x for the third quarter of 2021, as compared to $315.4 million for the comparable prior-year period. The Company calculates the net book-to-bill ratio by dividing net new business awards by revenue. For the third quarter of 2021, total direct costs were $208.5 million, compared to total direct costs of $156.2 million in the third quarter of 2020. Selling, general and administrative (SG&A) expenses were $28.0 million in the third quarter of 2021, compared to SG&A expenses of $22.8 million in the third quarter of 2020. GAAP net income for the third quarter of 2021 was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the third quarter of 2020. This resulted in a net income margin of 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA for the third quarter of 2021 increased 15.7% to $60.1 million, or 20.3% of revenue, compared to $51.9 million, or 22.5% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the third quarter of 2021 increased 16.3% from the third quarter of 2020. A reconciliation of the Company’s non-GAAP financial measures, including EBITDA and EBITDA margin to the corresponding GAAP measures is provided below. Balance Sheet and Liquidity The Company’s Cash and cash equivalents were $398.4 million at September 30, 2021, and the Company generated $72.4 million in cash flow from operating activities during the third quarter of 2021. During the third quarter of 2021, the Company repurchased approximately 35,000 shares at an average price of $171.50 per share for a total of $5.9 million. The Company had $190.5 million remaining under its authorized share repurchase program at the end of the quarter. 2021 Financial Guidance The Company forecasts 2021 revenue in the range of $1.135 billion to $1.145 billion, representing growth of 22.6% to 23.7% over 2020 revenue of $925.9 million. GAAP net income for full year 2021 is forecasted in the range of $176.0 million to $180.0 million. Additionally, full year 2021 EBITDA is expected in the range of $216.0 million to $222.0 million. Based on forecasted 2021 revenue of $1.135 billion to $1.145 billion and GAAP net income of $176.0 million to $180.0 million, diluted earnings per share (GAAP) is forecasted in the range of $4.66 to $4.77. This guidance assumes a full year 2021 tax rate of 9.5% to 10.5% and does not reflect the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after September 30, 2021. 2022 Financial Guidance The Company forecasts 2022 revenue in the range of $1.400 billion to $1.460 billion. Full year 2022 EBITDA is expected in the range of $262.0 million to $278.0 million. Conference Call Details Medpace will host a conference call at 9:00 a.m. ET, Tuesday, October 26, 2021, to discuss its third quarter 2021 results. To participate in the conference call, dial 800-219-7113 (domestic) or 574-990-1030 (international) using the passcode 5177474. To access the conference call via webcast, visit the “Investors” section of Medpace’s website at medpace.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call. A supplemental slide presentation will also be available at the “Investors” section of Medpace’s website prior to the start of the call. A recording of the call will be available until Tuesday, November 2, 2021. To hear this recording, dial 855-859-2056(domestic) or 404-537-3406 (international) using the passcode 5177474. About Medpace Medpace is a scientifically-driven, global, full-service clinical contract research organization (CRO) providing Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s mission is to accelerate the global development of safe and effective medical therapeutics through its high-science and disciplined operating approach that leverages regulatory and therapeutic expertise across all major areas including oncology, cardiology, metabolic disease, endocrinology, central nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 4,400 people across 40 countries as of September 30, 2021. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results, the anticipated impact of the coronavirus pandemic on our business, and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “likely,” “anticipate,” “project,” “goal,” “objective,” “potential,” “range,” “estimate,” “preliminary,” similar expressions, and variations or negatives of these words. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our financial condition, actual results, performance (including share price performance), or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the potential loss, delay or non-renewal of our contracts, or the non-payment by customers for services we have performed; the failure to convert backlog to revenue at our present or historical conversion rate(s); the failure to maintain or generate new business awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as coronavirus disease COVID-19; decreased operating margins due to increased pricing pressure or other factors; our failure to perform our services in accordance with contractual requirements, government regulations and ethical considerations; the impact of underpricing our contracts, overrunning our cost estimates or failing to receive approval for or experiencing delays with documentation of change orders; our failure to increase our market share, grow our business, successfully execute our growth strategies or manage our growth effectively; the impact of a failure to retain key executives or other personnel or recruit experienced personnel; the risks associated with our information systems infrastructure, including potential cybersecurity breaches and other disruptions which could compromise patient information or our information; adverse results from customer or therapeutic area concentration; the risks associated with doing business internationally, including the effects of tariffs and trade wars; the risks associated with the Foreign Corrupt Practices Act and other anti-corruption laws; future net losses; the impact of changes in tax laws and regulations; our failure to attract suitable investigators and patients to our clinical trials; the liability risks associated with our research and development services, including risks of liability resulting from harm to patients; inadequate insurance coverage for our operations and indemnification obligations; fluctuations in exchange rates; general economic conditions in the markets in which we operate, including financial market conditions; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and research and development budgets; our inability to compete effectively with other CROs; the impact of healthcare reform; the impact of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the effect of current and proposed laws and regulations regarding the protection of personal data; our potential involvement in costly intellectual property lawsuits; actions by regulatory authorities or customers to limit the scope of indications related to or withdraw an approved drug, biologic or medical device from the market; the impact of industry-wide reputational harm to CROs; and the effect of the U.K.’s withdrawal from the EU, which could have implications on our research, commercial and general business operations in the U.K. and the EU. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. We cannot guarantee that any forward-looking statement will be realized. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions. If known or unknown risks or uncertainties materialize or if underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events, developments or circumstances cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures Certain financial measures presented in this press release, such as EBITDA and EBITDA margin, are not recognized under generally accepted accounting principles in the United States of America, or U.S. GAAP. Management uses EBITDA and EBITDA margin or comparable metrics as a measurement used in evaluating our operating performance on a consistent basis, as a consideration to assess incentive compensation for our employees, for planning purposes, including the preparation of our internal annual operating budget, and to evaluate the performance and effectiveness of our operational strategies. EBITDA and EBITDA margin have important limitations as analytical tools and you should not consider them in isolation, or as a substitute for, analysis of our results as reported under U.S. GAAP. See the condensed consolidated financial statements included elsewhere in this release for our U.S. GAAP results. Additionally, for reconciliations of EBITDA and EBITDA margin to our closest reported U.S. GAAP measures, refer to the appendix of this press release. We believe that EBITDA and EBITDA margin are useful to provide additional information to investors about certain material non-cash and non-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, because not all companies use identical calculations, this presentation of EBITDA and EBITDA margin may not be comparable to other similarly titled measures of other companies and should not be considered as an alternative to performance measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income attributable to Medpace Holdings, Inc. before income tax expense, interest expense, net, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by Revenue, net for each period. Our presentation of EBITDA and EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue, net $ 295,567 $ 230,373 $ 833,825 $ 666,247 Operating expenses: Direct service costs, excluding depreciation and amortization 112,540 87,577 322,160 262,997 Reimbursed out-of-pocket expenses 95,934 68,637 271,494 207,376 Total direct costs 208,474 156,214 593,654 470,373 Selling, general and administrative 28,046 22,796 80,757 69,775 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 Total operating expenses 241,854 183,951 690,065 554,193 Income from operations 53,713 46,422 143,760 112,054 Other income, net: Miscellaneous income, net 1,064 584 2,253 1,440 Interest (expense) income, net (41 ) (16 ) (82 ) 336 Total other income, net 1,023 568 2,171 1,776 Income before income taxes 54,736 46,990 145,931 113,830 Income tax provision 6,162 5,530 14,117 19,312 Net income $ 48,574 $ 41,460 $ 131,814 $ 94,518 Net income per share attributable to common shareholders: Basic $ 1.35 $ 1.16 $ 3.67 $ 2.64 Diluted $ 1.29 $ 1.09 $ 3.49 $ 2.50 Weighted average common shares outstanding: Basic 35,816 35,552 35,822 35,654 Diluted 37,519 37,763 37,641 37,715 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands, except share amounts) As Of September 30, December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 398,387 $ 277,766 Accounts receivable and unbilled, net 186,378 160,962 Prepaid expenses and other current assets 56,455 34,923 Total current assets 641,220 473,651 Property and equipment, net 87,703 85,017 Operating lease right-of-use assets 125,428 113,809 Goodwill 662,396 662,396 Intangible assets, net 42,639 46,474 Deferred income taxes 1,272 536 Other assets 16,485 8,794 Total assets $ 1,577,143 $ 1,390,677 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,052 $ 26,552 Accrued expenses 158,211 134,367 Advanced billings 303,848 255,664 Other current liabilities 30,071 23,527 Total current liabilities 517,182 440,110 Operating lease liabilities 128,211 115,143 Deferred income tax liability 17,604 13,551 Other long-term liabilities 16,061 16,094 Total liabilities 679,058 584,898 Commitments and contingencies Shareholders’ equity: Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively - - Common stock - $0.01 par-value; 250,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 35,939,191 and 35,519,989 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 359 355 Treasury stock - 185,000 shares at September 30, 2021 and December 31, 2020, respectively (5,578 ) (5,578 ) Additional paid-in capital 721,597 695,904 Retained earnings 184,950 115,229 Accumulated other comprehensive loss (3,243 ) (131 ) Total shareholders’ equity 898,085 805,779 Total liabilities and shareholders’ equity $ 1,577,143 $ 1,390,677 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 131,814 $ 94,518 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 11,819 8,118 Amortization 3,835 5,927 Stock-based compensation expense 10,488 10,823 Noncash lease expense 11,878 9,968 Deferred income tax provision 3,299 6,911 Amortization and adjustment of deferred credit (501 ) (531 ) Other 213 (85 ) Changes in assets and liabilities: Accounts receivable and unbilled, net (25,046 ) 21,400 Prepaid expenses and other current assets (22,049 ) (9,820 ) Accounts payable 2,150 (5,611 ) Accrued expenses 24,691 7,619 Advanced billings 48,184 10,355 Lease liabilities (11,335 ) (7,507 ) Other assets and liabilities, net 2,993 1,093 Net cash provided by operating activities 192,433 153,178 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment expenditures (19,155 ) (23,554 ) Other (3,093 ) 74 Net cash used in investing activities (22,248 ) (23,480 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from stock option exercises 15,212 8,753 Repurchases of common stock (62,096 ) (50,827 ) Net cash used in financing activities (46,884 ) (42,074 ) EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (2,680 ) (317 ) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 120,621 87,307 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 277,766 131,920 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 398,387 $ 219,227 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 RECONCILIATION OF GAAP NET INCOME TO EBITDA Net income (GAAP) $ 48,574 $ 41,460 $ 131,814 $ 94,518 Interest expense (income), net 41 16 82 (336 ) Income tax provision 6,162 5,530 14,117 19,312 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 EBITDA (Non-GAAP) $ 60,111 $ 51,947 $ 161,667 $ 127,539 Net income margin (GAAP) 16.4 % 18.0 % 15.8 % 14.2 % EBITDA margin (Non-GAAP) 20.3 % 22.5 % 19.4 % 19.1 % FY 2021 GUIDANCE RECONCILIATION (UNAUDITED) (Amounts in millions, except per share amounts) Forecast 2021 Net Income Net income per 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 - - Depreciation 16.4 16.4 Amortization 5.1 5.1 EBITDA (Non-GAAP) $ 216.0 $ 222.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005640/en/Contacts Investor Contact: Lauren Morris 513.579.9911 x11994 l.morris@medpace.com Media Contact: Julie Hopkins 513.579.9911 x12627 j.hopkins@medpace.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Medpace Holdings, Inc. Reports Third Quarter 2021 Results By: Medpace Holdings, Inc. via Business Wire October 25, 2021 at 16:15 PM EDT Revenue of $295.6 million in the third quarter of 2021 increased 28.3% from revenue of $230.4 million for the comparable prior-year period, representing a backlog conversion rate of 17.0%. Net new business awards were $408.0 million in the third quarter of 2021, representing an increase of 29.4% from net new business awards of $315.4 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.38x. Third quarter of 2021 GAAP net income was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the comparable prior-year period. Net income margin was 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA was $60.1 million for the third quarter of 2021, an increase of 15.7% from EBITDA of $51.9 million for the comparable prior-year period, resulting in an EBITDA margin of 20.3%. Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial Results Revenue for the three months ended September 30, 2021 increased 28.3% to $295.6 million, compared to $230.4 million for the comparable prior-year period. On a constant currency organic basis, revenue for the third quarter of 2021 increased 28.1% compared to the third quarter of 2020. Backlog as of September 30, 2021 grew 29.0% to $1.8 billion from $1.4 billion as of September 30, 2020. Net new business awards were $408.0 million, representing a net book-to-bill ratio of 1.38x for the third quarter of 2021, as compared to $315.4 million for the comparable prior-year period. The Company calculates the net book-to-bill ratio by dividing net new business awards by revenue. For the third quarter of 2021, total direct costs were $208.5 million, compared to total direct costs of $156.2 million in the third quarter of 2020. Selling, general and administrative (SG&A) expenses were $28.0 million in the third quarter of 2021, compared to SG&A expenses of $22.8 million in the third quarter of 2020. GAAP net income for the third quarter of 2021 was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the third quarter of 2020. This resulted in a net income margin of 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA for the third quarter of 2021 increased 15.7% to $60.1 million, or 20.3% of revenue, compared to $51.9 million, or 22.5% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the third quarter of 2021 increased 16.3% from the third quarter of 2020. A reconciliation of the Company’s non-GAAP financial measures, including EBITDA and EBITDA margin to the corresponding GAAP measures is provided below. Balance Sheet and Liquidity The Company’s Cash and cash equivalents were $398.4 million at September 30, 2021, and the Company generated $72.4 million in cash flow from operating activities during the third quarter of 2021. During the third quarter of 2021, the Company repurchased approximately 35,000 shares at an average price of $171.50 per share for a total of $5.9 million. The Company had $190.5 million remaining under its authorized share repurchase program at the end of the quarter. 2021 Financial Guidance The Company forecasts 2021 revenue in the range of $1.135 billion to $1.145 billion, representing growth of 22.6% to 23.7% over 2020 revenue of $925.9 million. GAAP net income for full year 2021 is forecasted in the range of $176.0 million to $180.0 million. Additionally, full year 2021 EBITDA is expected in the range of $216.0 million to $222.0 million. Based on forecasted 2021 revenue of $1.135 billion to $1.145 billion and GAAP net income of $176.0 million to $180.0 million, diluted earnings per share (GAAP) is forecasted in the range of $4.66 to $4.77. This guidance assumes a full year 2021 tax rate of 9.5% to 10.5% and does not reflect the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after September 30, 2021. 2022 Financial Guidance The Company forecasts 2022 revenue in the range of $1.400 billion to $1.460 billion. Full year 2022 EBITDA is expected in the range of $262.0 million to $278.0 million. Conference Call Details Medpace will host a conference call at 9:00 a.m. ET, Tuesday, October 26, 2021, to discuss its third quarter 2021 results. To participate in the conference call, dial 800-219-7113 (domestic) or 574-990-1030 (international) using the passcode 5177474. To access the conference call via webcast, visit the “Investors” section of Medpace’s website at medpace.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call. A supplemental slide presentation will also be available at the “Investors” section of Medpace’s website prior to the start of the call. A recording of the call will be available until Tuesday, November 2, 2021. To hear this recording, dial 855-859-2056(domestic) or 404-537-3406 (international) using the passcode 5177474. About Medpace Medpace is a scientifically-driven, global, full-service clinical contract research organization (CRO) providing Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s mission is to accelerate the global development of safe and effective medical therapeutics through its high-science and disciplined operating approach that leverages regulatory and therapeutic expertise across all major areas including oncology, cardiology, metabolic disease, endocrinology, central nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 4,400 people across 40 countries as of September 30, 2021. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results, the anticipated impact of the coronavirus pandemic on our business, and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “likely,” “anticipate,” “project,” “goal,” “objective,” “potential,” “range,” “estimate,” “preliminary,” similar expressions, and variations or negatives of these words. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our financial condition, actual results, performance (including share price performance), or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the potential loss, delay or non-renewal of our contracts, or the non-payment by customers for services we have performed; the failure to convert backlog to revenue at our present or historical conversion rate(s); the failure to maintain or generate new business awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as coronavirus disease COVID-19; decreased operating margins due to increased pricing pressure or other factors; our failure to perform our services in accordance with contractual requirements, government regulations and ethical considerations; the impact of underpricing our contracts, overrunning our cost estimates or failing to receive approval for or experiencing delays with documentation of change orders; our failure to increase our market share, grow our business, successfully execute our growth strategies or manage our growth effectively; the impact of a failure to retain key executives or other personnel or recruit experienced personnel; the risks associated with our information systems infrastructure, including potential cybersecurity breaches and other disruptions which could compromise patient information or our information; adverse results from customer or therapeutic area concentration; the risks associated with doing business internationally, including the effects of tariffs and trade wars; the risks associated with the Foreign Corrupt Practices Act and other anti-corruption laws; future net losses; the impact of changes in tax laws and regulations; our failure to attract suitable investigators and patients to our clinical trials; the liability risks associated with our research and development services, including risks of liability resulting from harm to patients; inadequate insurance coverage for our operations and indemnification obligations; fluctuations in exchange rates; general economic conditions in the markets in which we operate, including financial market conditions; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and research and development budgets; our inability to compete effectively with other CROs; the impact of healthcare reform; the impact of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the effect of current and proposed laws and regulations regarding the protection of personal data; our potential involvement in costly intellectual property lawsuits; actions by regulatory authorities or customers to limit the scope of indications related to or withdraw an approved drug, biologic or medical device from the market; the impact of industry-wide reputational harm to CROs; and the effect of the U.K.’s withdrawal from the EU, which could have implications on our research, commercial and general business operations in the U.K. and the EU. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. We cannot guarantee that any forward-looking statement will be realized. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions. If known or unknown risks or uncertainties materialize or if underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events, developments or circumstances cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures Certain financial measures presented in this press release, such as EBITDA and EBITDA margin, are not recognized under generally accepted accounting principles in the United States of America, or U.S. GAAP. Management uses EBITDA and EBITDA margin or comparable metrics as a measurement used in evaluating our operating performance on a consistent basis, as a consideration to assess incentive compensation for our employees, for planning purposes, including the preparation of our internal annual operating budget, and to evaluate the performance and effectiveness of our operational strategies. EBITDA and EBITDA margin have important limitations as analytical tools and you should not consider them in isolation, or as a substitute for, analysis of our results as reported under U.S. GAAP. See the condensed consolidated financial statements included elsewhere in this release for our U.S. GAAP results. Additionally, for reconciliations of EBITDA and EBITDA margin to our closest reported U.S. GAAP measures, refer to the appendix of this press release. We believe that EBITDA and EBITDA margin are useful to provide additional information to investors about certain material non-cash and non-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, because not all companies use identical calculations, this presentation of EBITDA and EBITDA margin may not be comparable to other similarly titled measures of other companies and should not be considered as an alternative to performance measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income attributable to Medpace Holdings, Inc. before income tax expense, interest expense, net, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by Revenue, net for each period. Our presentation of EBITDA and EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue, net $ 295,567 $ 230,373 $ 833,825 $ 666,247 Operating expenses: Direct service costs, excluding depreciation and amortization 112,540 87,577 322,160 262,997 Reimbursed out-of-pocket expenses 95,934 68,637 271,494 207,376 Total direct costs 208,474 156,214 593,654 470,373 Selling, general and administrative 28,046 22,796 80,757 69,775 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 Total operating expenses 241,854 183,951 690,065 554,193 Income from operations 53,713 46,422 143,760 112,054 Other income, net: Miscellaneous income, net 1,064 584 2,253 1,440 Interest (expense) income, net (41 ) (16 ) (82 ) 336 Total other income, net 1,023 568 2,171 1,776 Income before income taxes 54,736 46,990 145,931 113,830 Income tax provision 6,162 5,530 14,117 19,312 Net income $ 48,574 $ 41,460 $ 131,814 $ 94,518 Net income per share attributable to common shareholders: Basic $ 1.35 $ 1.16 $ 3.67 $ 2.64 Diluted $ 1.29 $ 1.09 $ 3.49 $ 2.50 Weighted average common shares outstanding: Basic 35,816 35,552 35,822 35,654 Diluted 37,519 37,763 37,641 37,715 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands, except share amounts) As Of September 30, December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 398,387 $ 277,766 Accounts receivable and unbilled, net 186,378 160,962 Prepaid expenses and other current assets 56,455 34,923 Total current assets 641,220 473,651 Property and equipment, net 87,703 85,017 Operating lease right-of-use assets 125,428 113,809 Goodwill 662,396 662,396 Intangible assets, net 42,639 46,474 Deferred income taxes 1,272 536 Other assets 16,485 8,794 Total assets $ 1,577,143 $ 1,390,677 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,052 $ 26,552 Accrued expenses 158,211 134,367 Advanced billings 303,848 255,664 Other current liabilities 30,071 23,527 Total current liabilities 517,182 440,110 Operating lease liabilities 128,211 115,143 Deferred income tax liability 17,604 13,551 Other long-term liabilities 16,061 16,094 Total liabilities 679,058 584,898 Commitments and contingencies Shareholders’ equity: Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively - - Common stock - $0.01 par-value; 250,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 35,939,191 and 35,519,989 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 359 355 Treasury stock - 185,000 shares at September 30, 2021 and December 31, 2020, respectively (5,578 ) (5,578 ) Additional paid-in capital 721,597 695,904 Retained earnings 184,950 115,229 Accumulated other comprehensive loss (3,243 ) (131 ) Total shareholders’ equity 898,085 805,779 Total liabilities and shareholders’ equity $ 1,577,143 $ 1,390,677 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 131,814 $ 94,518 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 11,819 8,118 Amortization 3,835 5,927 Stock-based compensation expense 10,488 10,823 Noncash lease expense 11,878 9,968 Deferred income tax provision 3,299 6,911 Amortization and adjustment of deferred credit (501 ) (531 ) Other 213 (85 ) Changes in assets and liabilities: Accounts receivable and unbilled, net (25,046 ) 21,400 Prepaid expenses and other current assets (22,049 ) (9,820 ) Accounts payable 2,150 (5,611 ) Accrued expenses 24,691 7,619 Advanced billings 48,184 10,355 Lease liabilities (11,335 ) (7,507 ) Other assets and liabilities, net 2,993 1,093 Net cash provided by operating activities 192,433 153,178 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment expenditures (19,155 ) (23,554 ) Other (3,093 ) 74 Net cash used in investing activities (22,248 ) (23,480 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from stock option exercises 15,212 8,753 Repurchases of common stock (62,096 ) (50,827 ) Net cash used in financing activities (46,884 ) (42,074 ) EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (2,680 ) (317 ) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 120,621 87,307 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 277,766 131,920 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 398,387 $ 219,227 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 RECONCILIATION OF GAAP NET INCOME TO EBITDA Net income (GAAP) $ 48,574 $ 41,460 $ 131,814 $ 94,518 Interest expense (income), net 41 16 82 (336 ) Income tax provision 6,162 5,530 14,117 19,312 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 EBITDA (Non-GAAP) $ 60,111 $ 51,947 $ 161,667 $ 127,539 Net income margin (GAAP) 16.4 % 18.0 % 15.8 % 14.2 % EBITDA margin (Non-GAAP) 20.3 % 22.5 % 19.4 % 19.1 % FY 2021 GUIDANCE RECONCILIATION (UNAUDITED) (Amounts in millions, except per share amounts) Forecast 2021 Net Income Net income per 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 - - Depreciation 16.4 16.4 Amortization 5.1 5.1 EBITDA (Non-GAAP) $ 216.0 $ 222.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005640/en/Contacts Investor Contact: Lauren Morris 513.579.9911 x11994 l.morris@medpace.com Media Contact: Julie Hopkins 513.579.9911 x12627 j.hopkins@medpace.com
Revenue of $295.6 million in the third quarter of 2021 increased 28.3% from revenue of $230.4 million for the comparable prior-year period, representing a backlog conversion rate of 17.0%. Net new business awards were $408.0 million in the third quarter of 2021, representing an increase of 29.4% from net new business awards of $315.4 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.38x. Third quarter of 2021 GAAP net income was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the comparable prior-year period. Net income margin was 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA was $60.1 million for the third quarter of 2021, an increase of 15.7% from EBITDA of $51.9 million for the comparable prior-year period, resulting in an EBITDA margin of 20.3%.
Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial Results Revenue for the three months ended September 30, 2021 increased 28.3% to $295.6 million, compared to $230.4 million for the comparable prior-year period. On a constant currency organic basis, revenue for the third quarter of 2021 increased 28.1% compared to the third quarter of 2020. Backlog as of September 30, 2021 grew 29.0% to $1.8 billion from $1.4 billion as of September 30, 2020. Net new business awards were $408.0 million, representing a net book-to-bill ratio of 1.38x for the third quarter of 2021, as compared to $315.4 million for the comparable prior-year period. The Company calculates the net book-to-bill ratio by dividing net new business awards by revenue. For the third quarter of 2021, total direct costs were $208.5 million, compared to total direct costs of $156.2 million in the third quarter of 2020. Selling, general and administrative (SG&A) expenses were $28.0 million in the third quarter of 2021, compared to SG&A expenses of $22.8 million in the third quarter of 2020. GAAP net income for the third quarter of 2021 was $48.6 million, or $1.29 per diluted share, versus GAAP net income of $41.5 million, or $1.09 per diluted share, for the third quarter of 2020. This resulted in a net income margin of 16.4% and 18.0% for the third quarter of 2021 and 2020, respectively. EBITDA for the third quarter of 2021 increased 15.7% to $60.1 million, or 20.3% of revenue, compared to $51.9 million, or 22.5% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the third quarter of 2021 increased 16.3% from the third quarter of 2020. A reconciliation of the Company’s non-GAAP financial measures, including EBITDA and EBITDA margin to the corresponding GAAP measures is provided below. Balance Sheet and Liquidity The Company’s Cash and cash equivalents were $398.4 million at September 30, 2021, and the Company generated $72.4 million in cash flow from operating activities during the third quarter of 2021. During the third quarter of 2021, the Company repurchased approximately 35,000 shares at an average price of $171.50 per share for a total of $5.9 million. The Company had $190.5 million remaining under its authorized share repurchase program at the end of the quarter. 2021 Financial Guidance The Company forecasts 2021 revenue in the range of $1.135 billion to $1.145 billion, representing growth of 22.6% to 23.7% over 2020 revenue of $925.9 million. GAAP net income for full year 2021 is forecasted in the range of $176.0 million to $180.0 million. Additionally, full year 2021 EBITDA is expected in the range of $216.0 million to $222.0 million. Based on forecasted 2021 revenue of $1.135 billion to $1.145 billion and GAAP net income of $176.0 million to $180.0 million, diluted earnings per share (GAAP) is forecasted in the range of $4.66 to $4.77. This guidance assumes a full year 2021 tax rate of 9.5% to 10.5% and does not reflect the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after September 30, 2021. 2022 Financial Guidance The Company forecasts 2022 revenue in the range of $1.400 billion to $1.460 billion. Full year 2022 EBITDA is expected in the range of $262.0 million to $278.0 million. Conference Call Details Medpace will host a conference call at 9:00 a.m. ET, Tuesday, October 26, 2021, to discuss its third quarter 2021 results. To participate in the conference call, dial 800-219-7113 (domestic) or 574-990-1030 (international) using the passcode 5177474. To access the conference call via webcast, visit the “Investors” section of Medpace’s website at medpace.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call. A supplemental slide presentation will also be available at the “Investors” section of Medpace’s website prior to the start of the call. A recording of the call will be available until Tuesday, November 2, 2021. To hear this recording, dial 855-859-2056(domestic) or 404-537-3406 (international) using the passcode 5177474. About Medpace Medpace is a scientifically-driven, global, full-service clinical contract research organization (CRO) providing Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s mission is to accelerate the global development of safe and effective medical therapeutics through its high-science and disciplined operating approach that leverages regulatory and therapeutic expertise across all major areas including oncology, cardiology, metabolic disease, endocrinology, central nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 4,400 people across 40 countries as of September 30, 2021. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results, the anticipated impact of the coronavirus pandemic on our business, and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “likely,” “anticipate,” “project,” “goal,” “objective,” “potential,” “range,” “estimate,” “preliminary,” similar expressions, and variations or negatives of these words. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our financial condition, actual results, performance (including share price performance), or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the potential loss, delay or non-renewal of our contracts, or the non-payment by customers for services we have performed; the failure to convert backlog to revenue at our present or historical conversion rate(s); the failure to maintain or generate new business awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as coronavirus disease COVID-19; decreased operating margins due to increased pricing pressure or other factors; our failure to perform our services in accordance with contractual requirements, government regulations and ethical considerations; the impact of underpricing our contracts, overrunning our cost estimates or failing to receive approval for or experiencing delays with documentation of change orders; our failure to increase our market share, grow our business, successfully execute our growth strategies or manage our growth effectively; the impact of a failure to retain key executives or other personnel or recruit experienced personnel; the risks associated with our information systems infrastructure, including potential cybersecurity breaches and other disruptions which could compromise patient information or our information; adverse results from customer or therapeutic area concentration; the risks associated with doing business internationally, including the effects of tariffs and trade wars; the risks associated with the Foreign Corrupt Practices Act and other anti-corruption laws; future net losses; the impact of changes in tax laws and regulations; our failure to attract suitable investigators and patients to our clinical trials; the liability risks associated with our research and development services, including risks of liability resulting from harm to patients; inadequate insurance coverage for our operations and indemnification obligations; fluctuations in exchange rates; general economic conditions in the markets in which we operate, including financial market conditions; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and research and development budgets; our inability to compete effectively with other CROs; the impact of healthcare reform; the impact of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the effect of current and proposed laws and regulations regarding the protection of personal data; our potential involvement in costly intellectual property lawsuits; actions by regulatory authorities or customers to limit the scope of indications related to or withdraw an approved drug, biologic or medical device from the market; the impact of industry-wide reputational harm to CROs; and the effect of the U.K.’s withdrawal from the EU, which could have implications on our research, commercial and general business operations in the U.K. and the EU. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. We cannot guarantee that any forward-looking statement will be realized. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions. If known or unknown risks or uncertainties materialize or if underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events, developments or circumstances cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures Certain financial measures presented in this press release, such as EBITDA and EBITDA margin, are not recognized under generally accepted accounting principles in the United States of America, or U.S. GAAP. Management uses EBITDA and EBITDA margin or comparable metrics as a measurement used in evaluating our operating performance on a consistent basis, as a consideration to assess incentive compensation for our employees, for planning purposes, including the preparation of our internal annual operating budget, and to evaluate the performance and effectiveness of our operational strategies. EBITDA and EBITDA margin have important limitations as analytical tools and you should not consider them in isolation, or as a substitute for, analysis of our results as reported under U.S. GAAP. See the condensed consolidated financial statements included elsewhere in this release for our U.S. GAAP results. Additionally, for reconciliations of EBITDA and EBITDA margin to our closest reported U.S. GAAP measures, refer to the appendix of this press release. We believe that EBITDA and EBITDA margin are useful to provide additional information to investors about certain material non-cash and non-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, because not all companies use identical calculations, this presentation of EBITDA and EBITDA margin may not be comparable to other similarly titled measures of other companies and should not be considered as an alternative to performance measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income attributable to Medpace Holdings, Inc. before income tax expense, interest expense, net, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by Revenue, net for each period. Our presentation of EBITDA and EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue, net $ 295,567 $ 230,373 $ 833,825 $ 666,247 Operating expenses: Direct service costs, excluding depreciation and amortization 112,540 87,577 322,160 262,997 Reimbursed out-of-pocket expenses 95,934 68,637 271,494 207,376 Total direct costs 208,474 156,214 593,654 470,373 Selling, general and administrative 28,046 22,796 80,757 69,775 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 Total operating expenses 241,854 183,951 690,065 554,193 Income from operations 53,713 46,422 143,760 112,054 Other income, net: Miscellaneous income, net 1,064 584 2,253 1,440 Interest (expense) income, net (41 ) (16 ) (82 ) 336 Total other income, net 1,023 568 2,171 1,776 Income before income taxes 54,736 46,990 145,931 113,830 Income tax provision 6,162 5,530 14,117 19,312 Net income $ 48,574 $ 41,460 $ 131,814 $ 94,518 Net income per share attributable to common shareholders: Basic $ 1.35 $ 1.16 $ 3.67 $ 2.64 Diluted $ 1.29 $ 1.09 $ 3.49 $ 2.50 Weighted average common shares outstanding: Basic 35,816 35,552 35,822 35,654 Diluted 37,519 37,763 37,641 37,715 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands, except share amounts) As Of September 30, December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 398,387 $ 277,766 Accounts receivable and unbilled, net 186,378 160,962 Prepaid expenses and other current assets 56,455 34,923 Total current assets 641,220 473,651 Property and equipment, net 87,703 85,017 Operating lease right-of-use assets 125,428 113,809 Goodwill 662,396 662,396 Intangible assets, net 42,639 46,474 Deferred income taxes 1,272 536 Other assets 16,485 8,794 Total assets $ 1,577,143 $ 1,390,677 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,052 $ 26,552 Accrued expenses 158,211 134,367 Advanced billings 303,848 255,664 Other current liabilities 30,071 23,527 Total current liabilities 517,182 440,110 Operating lease liabilities 128,211 115,143 Deferred income tax liability 17,604 13,551 Other long-term liabilities 16,061 16,094 Total liabilities 679,058 584,898 Commitments and contingencies Shareholders’ equity: Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively - - Common stock - $0.01 par-value; 250,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 35,939,191 and 35,519,989 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 359 355 Treasury stock - 185,000 shares at September 30, 2021 and December 31, 2020, respectively (5,578 ) (5,578 ) Additional paid-in capital 721,597 695,904 Retained earnings 184,950 115,229 Accumulated other comprehensive loss (3,243 ) (131 ) Total shareholders’ equity 898,085 805,779 Total liabilities and shareholders’ equity $ 1,577,143 $ 1,390,677 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) Nine Months Ended September 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 131,814 $ 94,518 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 11,819 8,118 Amortization 3,835 5,927 Stock-based compensation expense 10,488 10,823 Noncash lease expense 11,878 9,968 Deferred income tax provision 3,299 6,911 Amortization and adjustment of deferred credit (501 ) (531 ) Other 213 (85 ) Changes in assets and liabilities: Accounts receivable and unbilled, net (25,046 ) 21,400 Prepaid expenses and other current assets (22,049 ) (9,820 ) Accounts payable 2,150 (5,611 ) Accrued expenses 24,691 7,619 Advanced billings 48,184 10,355 Lease liabilities (11,335 ) (7,507 ) Other assets and liabilities, net 2,993 1,093 Net cash provided by operating activities 192,433 153,178 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment expenditures (19,155 ) (23,554 ) Other (3,093 ) 74 Net cash used in investing activities (22,248 ) (23,480 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from stock option exercises 15,212 8,753 Repurchases of common stock (62,096 ) (50,827 ) Net cash used in financing activities (46,884 ) (42,074 ) EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (2,680 ) (317 ) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 120,621 87,307 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 277,766 131,920 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 398,387 $ 219,227 MEDPACE HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 RECONCILIATION OF GAAP NET INCOME TO EBITDA Net income (GAAP) $ 48,574 $ 41,460 $ 131,814 $ 94,518 Interest expense (income), net 41 16 82 (336 ) Income tax provision 6,162 5,530 14,117 19,312 Depreciation 4,056 2,991 11,819 8,118 Amortization 1,278 1,950 3,835 5,927 EBITDA (Non-GAAP) $ 60,111 $ 51,947 $ 161,667 $ 127,539 Net income margin (GAAP) 16.4 % 18.0 % 15.8 % 14.2 % EBITDA margin (Non-GAAP) 20.3 % 22.5 % 19.4 % 19.1 % FY 2021 GUIDANCE RECONCILIATION (UNAUDITED) (Amounts in millions, except per share amounts) Forecast 2021 Net Income Net income per 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 - - Depreciation 16.4 16.4 Amortization 5.1 5.1 EBITDA (Non-GAAP) $ 216.0 $ 222.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005640/en/
Investor Contact: Lauren Morris 513.579.9911 x11994 l.morris@medpace.com Media Contact: Julie Hopkins 513.579.9911 x12627 j.hopkins@medpace.com
