Medpace Holdings, Inc. Reports Fourth Quarter and Full Year 2021 Results|||

  • Revenue of $308.6 million in the 4th quarter of 2021 increased 18.8% from acquirement of $259.7 million for the comparable prior-year menses, representing a backlog conversion charge per unit of xvi.7%; Full year 2021 revenue of $i,142.iv one thousand thousand increased 23.iv% from full year 2020.
  • Net new concern awards were $458.7 meg in the fourth quarter of 2021, representing an increase of 27.nine% from net new business awards of $358.6 million for the comparable prior-year period, which resulted in a net volume-to-bill ratio of 1.49x; Full year 2021 net new business concern awards of $one,610.4 meg increased 37.1% from the prior year.
  • Fourth quarter of 2021 GAAP net income was $50.0 million, or $ane.32 per diluted share, versus GAAP cyberspace income of $50.9 meg, or $one.35 per diluted share, for the comparable prior-year flow. GAAP net income for the full year 2021 was $181.eight million, or $4.81 per diluted share, versus GAAP net income of $145.four 1000000, or $3.84 per diluted share, for the full twelvemonth 2020. Cyberspace income margin was 16.ii% for the fourth quarter of 2021 and 15.9% for the full year 2021.
  • EBITDA was $61.4 million for the fourth quarter of 2021, an increase of ii.0% from EBITDA of $60.2 1000000 for the comparable prior-year period, resulting in an EBITDA margin of xix.9%. EBITDA of $223.i million for the full year 2021 increased 18.viii% from the prior year, resulting in an EBITDA margin of 19.5%.

CINCINNATI–(Business concern WIRE)–Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the fourth quarter and total year ended December 31, 2021.

Fourth Quarter and Full Twelvemonth 2021 Financial Results

Revenue for the 3 months ended December 31, 2021 increased 18.8% to $308.six one thousand thousand, compared to $259.7 1000000 for the comparable prior-yr period. Revenue for the year ended December 31, 2021 increased 23.4% to $ane,142.4 meg, compared to $925.ix 1000000 for the year ended December 31, 2020. On a constant currency organic basis, revenue for the fourth quarter of 2021 increased 19.two% compared to the quaternary quarter of 2020 and increased 22.9% for the year ended Dec 31, 2021 compared to the year ended December 31, 2020.

Backlog as of Dec 31, 2021 grew 29.5% to $one,997.ane one thousand thousand from $1,541.seven 1000000 as of December 31, 2020. Net new business organization awards were $458.vii one thousand thousand, representing a net book-to-bill ratio of one.49x for the quaternary quarter of 2021, equally compared to $358.6 1000000 for the comparable prior-year period. For the year ended December 31, 2021, net new concern awards were $1,610.4 meg, representing a net book-to-bill ratio of i.41x, compared to $i,175.0 meg for the year ended December 31, 2020. The Visitor calculates the net book-to-pecker ratio by dividing net new business awards by revenue.

For the fourth quarter of 2021, total directly costs were $220.6 one thousand thousand, compared to total direct costs of $176.8 1000000 in the fourth quarter of 2020. For the full yr 2021, total direct costs were $814.2 one thousand thousand, compared to $647.2 one thousand thousand in the full year 2020. Selling, general and administrative (SG&A) expenses were $27.7 million in the fourth quarter of 2021, compared to SG&A expenses of $22.iv meg in the 4th quarter of 2020. For the full year 2021, SG&A expenses were $108.iv million, compared to $92.2 million for the full year 2020.

GAAP net income for the fourth quarter of 2021 was $50.0 1000000, or $1.32 per diluted share, versus GAAP cyberspace income of $50.9 million, or $one.35 per diluted share, for the fourth quarter of 2020. This resulted in a net income margin of 16.2% and 19.6% for the fourth quarter of 2021 and 2020, respectively. GAAP cyberspace income for the full year 2021 was $181.8 meg, or $4.81 per diluted share, versus GAAP internet income of $145.4 million, or $3.84 per diluted share, for the full year 2020. This resulted in a net income margin of 15.ix% and fifteen.seven% for the full twelvemonth 2021 and 2020, respectively.

EBITDA for the fourth quarter of 2021 increased 2.0% to $61.4 one thousand thousand, or 19.9% of revenue, compared to $60.ii one thousand thousand, or 23.ii% of revenue, for the comparable prior-twelvemonth period. EBITDA for the full year 2021 increased 18.8% to $223.1 million, or 19.5% of acquirement, compared to $187.8 million, or 20.3% of revenue, for the prior year. On a constant currency basis, EBITDA for the fourth quarter of 2021 decreased 1.1% from the fourth quarter of 2020 and increased 19.3% for the full yr 2021 compared to the full yr 2020.

A reconciliation of the Visitor’southward non-GAAP fiscal measures, including EBITDA and EBITDA margin to the respective GAAP measures is provided below.

Balance Sheet and Liquidity

The Company’southward Greenbacks and cash equivalents were $461.3 million at December 31, 2021, and the Company generated $70.9 million in greenbacks period from operating activities during the fourth quarter of 2021. The Company did not repurchase any shares during the fourth quarter. The Visitor had $190.5 million remaining nether its authorized share repurchase program at the finish of the quarter.

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Additionally, as of February 10, 2022 the Company’south Lath of Directors approved an increase of $300 million to the Visitor’southward stock repurchase program. The timing, cost and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Dominion 10b5-i plan. The plan may be discontinued or amended at any fourth dimension without notice.

Financial Guidance

The Visitor forecasts 2022 revenue in the range of $i.400 billion to $one.460 billion, representing growth of 22.6% to 27.viii% over 2021 revenue of $1.142 billion. GAAP cyberspace income for total yr 2022 is forecasted in the range of $204.0 million to $216.0 1000000. Additionally, full year 2022 EBITDA is expected in the range of $262.0 one thousand thousand to $278.0 1000000. Based on forecasted 2022 revenue of $i.400 billion to $1.460 billion and GAAP net income of $204.0 million to $216.0 meg, diluted earnings per share (GAAP) is forecasted in the range of $5.35 to $5.67. This guidance assumes a full twelvemonth 2022 revenue enhancement rate of thirteen.5% to xiv.5% and does non reflect the potential bear upon of any share repurchases the Company may make pursuant to the share repurchase program after Dec 31, 2021.

Conference Call Details

Medpace will host a conference call at ix:00 a.m. ET, Tuesday, Feb fifteen, 2022, to discuss its fourth quarter and full year 2021 results.

To participate in the briefing telephone call, dial 800-219-7113 (domestic) or 574-990-1030 (international) using the passcode 9164466.

To access the briefing call via webcast, visit the “Investors” department of Medpace’due south website at medpace.com. The webcast replay of the call volition exist available at the aforementioned site approximately one hour afterward the end of the phone call.

A supplemental slide presentation will also be bachelor at the “Investors” section of Medpace’s website prior to the get-go of the phone call.

A recording of the call will be available until Tuesday, February 22, 2022. To hear this recording, dial
855-859-2056 (domestic) or 404-537-3406 (international) using the passcode 9164466.

Well-nigh Medpace

Medpace is a scientifically-driven, global, full-service clinical contract enquiry organization (CRO) providing Phase I-4 clinical evolution services to the biotechnology, pharmaceutical and medical device industries. Medpace’due south mission is to advance the global development of safety 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, cardinal nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 4,500 people across 41 countries equally of December 31, 2021.

Frontwards-Looking Statements

This press release contains forrard-looking statements inside the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that practise not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted fiscal results, the anticipated bear on of the coronavirus pandemic on our business, and the effective tax rate used for non-GAAP adjustment purposes. In this context, forwards-looking statements often accost expected future business organization and financial performance and financial condition, and frequently contain words such as “guidance,” “expect,” “conceptualize,” “intend,” “programme,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “probable,” “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’due south current expectations. These statements are neither promises nor guarantees, simply involve known and unknown risks, uncertainties and other of import factors that may cause our financial status, actual results, performance (including share price operation), or achievements to exist materially dissimilar from any future results, performance or achievements expressed or unsaid by the forrad-looking statements, including, but not express to, the post-obit: 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 organisation awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in concern operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such equally 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, authorities regulations and ethical considerations; the impact of underpricing our contracts, overrunning our toll estimates or failing to receive approval for or experiencing delays with documentation of modify orders; our failure to increase our marketplace share, grow our business, successfully execute our growth strategies or manage our growth effectively; the affect of a failure to retain primal 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 organization internationally, including the furnishings of tariffs and trade wars; the risks associated with the Strange Decadent Practices Deed and other anti-corruption laws; hereafter net losses; the bear upon 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 substitution rates; general economic weather in the markets in which we operate, including financial market weather condition; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and inquiry and development budgets; our inability to compete finer with other CROs; the impact of healthcare reform; the touch on of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the event of current and proposed laws and regulations regarding the protection of personal data; our potential interest in costly intellectual belongings lawsuits; actions by regulatory authorities or customers to limit the telescopic of indications related to or withdraw an approved drug, biologic or medical device from the marketplace; the impact of industry-wide reputational harm to CROs; and the upshot of the U.1000.’s withdrawal from the EU, which could accept implications on our research, commercial and general business operations in the U.Thou. and the Eu.

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These and other important factors discussed nether the caption “Risk Factors” in our Almanac Report on Form ten-Thou filed with the Securities and Substitution 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 frontward-looking statement will exist 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 predictable, estimated or projected. These factors should non be construed every bit 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 forwards-looking statements represent management’s estimates as of the date of this printing release. While nosotros may elect to update such forward-looking statements at some point in the hereafter, 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 exist relied upon as representing our views as of any date subsequent to the date of this printing release.

Non-GAAP Fiscal 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 U.s.a. of America, or U.S. GAAP. Direction 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 appraise 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 of import limitations equally analytical tools and you should not consider them in isolation, or as a substitute for, assay of our results every bit reported under U.Due south. 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 boosted information to investors near certain material not-cash and not-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, considering 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 operation measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income owing to Medpace Holdings, Inc. earlier income tax expense, interest expense, internet, depreciation and amortization. EBITDA margin is calculated past dividing EBITDA past Revenue, net for each catamenia. Our presentation of EBITDA and EBITDA margin should not be construed equally an inference that our future results will be unaffected by unusual or not-recurring items.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


(Amounts in thousands, except per share amounts)

Iii Months Ended

Twelve Months Concluded

Dec 31,

December 31,

2021

2020

2021

2020

Revenue, net

$

308,552

$

259,678

$

i,142,377

$

925,925

Operating expenses:

Direct service costs, excluding depreciation and amortization

118,930

91,429

441,090

354,426

Reimbursed out-of-pocket expenses

101,638

85,397

373,132

292,773

Total direct costs

220,568

176,826

814,222

647,199

Selling, general and authoritative

27,664

22,381

108,421

92,156

Depreciation

4,186

iii,534

16,005

11,652

Amortization

1,279

ane,949

5,114

vii,876

Total operating expenses

253,697

204,690

943,762

758,883

Income from operations

54,855

54,988

198,615

167,042

Other income, net:

Miscellaneous income (expense), net

i,089

(257

)

3,342

1,183

Involvement (expense) income, net

(23

)

(29

)

(105

)

307

Total other income (expense), internet

1,066

(286

)

3,237

1,490

Income before income taxes

55,921

54,702

201,852

168,532

Income tax provision

five,887

3,836

xx,004

23,148

Net income

$

50,034

$

fifty,866

$

181,848

$

145,384

Net income per share attributable to common shareholders:

Bones

$

1.39

$

1.43

$

v.06

$

four.07

Diluted

$

one.32

$

i.35

$

iv.81

$

iii.84

Weighted average common shares outstanding:

Basic

35,979

35,578

35,862

35,635

Diluted

37,741

37,649

37,697

37,708

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED Residual SHEETS


(Amounts in thousands, except share amounts)

As Of

Dec 31,

Dec 31,

2021

2020

Avails

Electric current avails:

Cash and cash equivalents

$

461,304

$

277,766

Accounts receivable and unbilled, internet

186,432

160,962

Prepaid expenses and other current assets

43,176

34,923

Total current assets

690,912

473,651

Property and equipment, net

93,153

85,017

Operating lease right-of-utilize avails

129,558

113,809

Goodwill

662,396

662,396

Intangible assets, internet

41,360

46,474

Deferred income taxes

25,134

536

Other assets

17,422

8,794

Full assets

$

1,659,935

$

1,390,677

LIABILITIES AND SHAREHOLDERS’ Equity

Current liabilities:

Accounts payable

$

25,678

$

26,552

Accrued expenses

159,286

134,367

Advanced billings

344,641

255,664

Other current liabilities

27,612

23,527

Total electric current liabilities

557,217

440,110

Operating lease liabilities

130,965

115,143

Deferred income tax liability

ane,080

xiii,551

Other long-term liabilities

17,745

sixteen,094

Total liabilities

707,007

584,898

Commitments and contingencies

Shareholders’ equity:

Preferred stock – $0.01 par-value; five,000,000 shares authorized; no shares issued and outstanding at December 31, 2021 and 2020, respectively

Common stock – $0.01 par-value; 250,000,000 shares authorized at December 31, 2021 and 2020, respectively; 36,006,778 and 35,519,989 shares issued and outstanding at December 31, 2021 and 2020, respectively

360

355

Treasury stock – 180,000 and 185,000 shares at December 31, 2021 and 2020, respectively

(v,427

)

(five,578

)

Additional paid-in capital letter

727,857

695,904

Retained earnings

234,984

115,229

Accumulated other comprehensive loss

(iv,846

)

(131

)

Total shareholders’ equity

952,928

805,779

Full liabilities and shareholders’ equity

$

1,659,935

$

1,390,677

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


(Amounts in thousands)

Twelve Months Concluded

December 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

181,848

$

145,384

Adjustments to reconcile internet income to cyberspace cash provided by operating activities:

Depreciation

16,005

11,652

Amortization

v,114

seven,876

Stock-based compensation expense

xiv,469

13,784

Noncash lease expense

xvi,288

xiii,924

Deferred income tax (benefit) provision

(37,112

)

527

Acquittal and adjustment of deferred credit

(668

)

(706

)

Other

676

(22

)

Changes in assets and liabilities:

Accounts receivable and unbilled, cyberspace

(24,982

)

(5,530

)

Prepaid expenses and other current avails

(9,134

)

(3,724

)

Accounts payable

1,866

(2,597

)

Accrued expenses

26,156

24,231

Avant-garde billings

88,977

63,407

Lease liabilities

(15,632

)

(11,506

)

Other assets and liabilities, net

(544

)

i,976

Internet cash provided by operating activities

263,327

258,676

Cash FLOWS FROM INVESTING ACTIVITIES:

Property and equipment expenditures

(28,271

)

(31,340

)

Other

(iii,093

)

126

Cyberspace greenbacks used in investing activities

(31,364

)

(31,214

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from stock selection exercises

17,643

fifteen,992

Repurchases of common stock

(62,096

)

(98,274

)

Net greenbacks used in financing activities

(44,453

)

(82,282

)

EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED Greenbacks

(3,972

)

666

Increment IN Cash, Greenbacks EQUIVALENTS, AND RESTRICTED Greenbacks

183,538

145,846

Greenbacks, Cash EQUIVALENTS, AND RESTRICTED CASH — Start of flow

277,766

131,920

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Finish of flow

$

461,304

$

277,766

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF Not-GAAP MEASURES (UNAUDITED)


(Amounts in thousands, except per share amounts)

3 Months Ended

Twelve Months Concluded

Dec 31,

December 31,

2021

2020

2021

2020

RECONCILIATION OF GAAP NET INCOME TO EBITDA

Cyberspace income (GAAP)

$

50,034

$

50,866

$

181,848

$

145,384

Interest expense (income), internet

23

29

105

(307

)

Income tax provision

five,887

3,836

20,004

23,148

Depreciation

4,186

3,534

sixteen,005

11,652

Acquittal

ane,279

one,949

v,114

7,876

EBITDA (Non-GAAP)

$

61,409

$

60,214

$

223,076

$

187,753

Net income margin (GAAP)

sixteen.2

%

xix.half dozen

%

15.nine

%

15.7

%

EBITDA margin (Non-GAAP)

19.9

%

23.2

%

19.five

%

20.3

%

FY 2022 GUIDANCE RECONCILIATION (UNAUDITED)


(Amounts in millions, except per share amounts)

Forecast 2022

Internet Income

Internet income per diluted share

Depression

High

Depression

Loftier

Internet income and cyberspace income per diluted share (GAAP)

$

204.0

$

216.0

$

5.35

$

five.67

Income tax provision

32.one

36.i

Depreciation

20.eight

20.8

Amortization

5.1

v.one

EBITDA (Non-GAAP)

$

262.0

$

278.0

Contacts

Source: https://www.dailyhostnews.com/medpace-holdings-inc-reports-fourth-quarter-and-full-year-2021-results