(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MEDPACE HOLDINGS, INC. | |||||||||||
Date: | October 24, 2022 | By: | /s/ Kevin M. Brady | ||||||||
Kevin M. Brady, Chief Financial Officer |
(Amounts in thousands, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue, net | $ | 383,744 | $ | 295,567 | $ | 1,065,898 | $ | 833,825 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Direct service costs, excluding depreciation and amortization | 136,648 | 112,540 | 394,200 | 322,160 | |||||||||||||||||||
Reimbursed out-of-pocket expenses | 128,062 | 95,934 | 354,991 | 271,494 | |||||||||||||||||||
Total direct costs | 264,710 | 208,474 | 749,191 | 593,654 | |||||||||||||||||||
Selling, general and administrative | 35,418 | 28,046 | 97,999 | 80,757 | |||||||||||||||||||
Depreciation | 4,951 | 4,056 | 13,928 | 11,819 | |||||||||||||||||||
Amortization | 838 | 1,278 | 2,514 | 3,835 | |||||||||||||||||||
Total operating expenses | 305,917 | 241,854 | 863,632 | 690,065 | |||||||||||||||||||
Income from operations | 77,827 | 53,713 | 202,266 | 143,760 | |||||||||||||||||||
Other income, net: | |||||||||||||||||||||||
Miscellaneous income, net | 5,649 | 1,064 | 9,027 | 2,253 | |||||||||||||||||||
Interest expense, net | (1,584) | (41) | (2,078) | (82) | |||||||||||||||||||
Total other income, net | 4,065 | 1,023 | 6,949 | 2,171 | |||||||||||||||||||
Income before income taxes | 81,892 | 54,736 | 209,215 | 145,931 | |||||||||||||||||||
Income tax provision | 15,865 | 6,162 | 32,517 | 14,117 | |||||||||||||||||||
Net income | $ | 66,027 | $ | 48,574 | $ | 176,698 | $ | 131,814 | |||||||||||||||
Net income per share attributable to common shareholders: | |||||||||||||||||||||||
Basic | $ | 2.13 | $ | 1.35 | $ | 5.39 | $ | 3.67 | |||||||||||||||
Diluted | $ | 2.05 | $ | 1.29 | $ | 5.18 | $ | 3.49 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 31,009 | 35,816 | 32,791 | 35,822 | |||||||||||||||||||
Diluted | 32,253 | 37,519 | 34,098 | 37,641 |
(Amounts in thousands, except share amounts) | |||||||||||
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 31,007 | $ | 461,304 | |||||||
Accounts receivable and unbilled, net | 249,086 | 186,432 | |||||||||
Prepaid expenses and other current assets | 57,648 | 43,176 | |||||||||
Total current assets | 337,741 | 690,912 | |||||||||
Property and equipment, net | 104,719 | 93,153 | |||||||||
Operating lease right-of-use assets | 139,071 | 129,558 | |||||||||
Goodwill | 662,396 | 662,396 | |||||||||
Intangible assets, net | 38,846 | 41,360 | |||||||||
Deferred income taxes | 27,023 | 25,134 | |||||||||
Other assets | 18,629 | 17,422 | |||||||||
Total assets | $ | 1,328,425 | $ | 1,659,935 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 28,245 | $ | 25,678 | |||||||
Accrued expenses | 204,117 | 159,286 | |||||||||
Advanced billings | 417,927 | 344,641 | |||||||||
Short-term debt | 139,700 | — | |||||||||
Other current liabilities | 30,879 | 27,612 | |||||||||
Total current liabilities | 820,868 | 557,217 | |||||||||
Operating lease liabilities | 139,203 | 130,965 | |||||||||
Deferred income tax liability | 911 | 1,080 | |||||||||
Other long-term liabilities | 17,558 | 17,745 | |||||||||
Total liabilities | 978,540 | 707,007 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | — | — | |||||||||
Common stock - $0.01 par-value; 250,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively; 31,098,397 and 36,006,778 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 309 | 360 | |||||||||
Treasury stock - 81,573 and 180,000 shares at September 30, 2022 and December 31, 2021, respectively | (14,243) | (5,427) | |||||||||
Additional paid-in capital | 759,986 | 727,857 | |||||||||
(Accumulated deficit) Retained earnings | (380,115) | 234,984 | |||||||||
Accumulated other comprehensive loss | (16,052) | (4,846) | |||||||||
Total shareholders’ equity | 349,885 | 952,928 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,328,425 | $ | 1,659,935 |
(Amounts in thousands) | Nine Months Ended September 30, | ||||||||||
2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 176,698 | $ | 131,814 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 13,928 | 11,819 | |||||||||
Amortization | 2,514 | 3,835 | |||||||||
Stock-based compensation expense | 15,819 | 10,488 | |||||||||
Noncash lease expense | 13,460 | 11,878 | |||||||||
Deferred income tax (benefit) provision | (2,126) | 3,299 | |||||||||
Amortization and adjustment of deferred credit | (465) | (501) | |||||||||
Other | 115 | 213 | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable and unbilled, net | (62,438) | (25,046) | |||||||||
Prepaid expenses and other current assets | (17,397) | (22,049) | |||||||||
Accounts payable | 770 | 2,150 | |||||||||
Accrued expenses | 47,848 | 24,691 | |||||||||
Advanced billings | 73,286 | 48,184 | |||||||||
Lease liabilities | (11,134) | (11,335) | |||||||||
Other assets and liabilities, net | 488 | 2,993 | |||||||||
Net cash provided by operating activities | 251,366 | 192,433 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Property and equipment expenditures | (27,636) | (19,155) | |||||||||
Other | (1,886) | (3,093) | |||||||||
Net cash used in investing activities | (29,522) | (22,248) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from stock option exercises | 16,313 | 15,212 | |||||||||
Repurchases of common stock | (800,667) | (62,096) | |||||||||
Proceeds from revolving loan | 299,200 | — | |||||||||
Payments on revolving loan | (159,500) | — | |||||||||
Net cash used in financing activities | (644,654) | (46,884) | |||||||||
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (7,487) | (2,680) | |||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (430,297) | 120,621 | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 461,304 | 277,766 | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | $ | 31,007 | $ | 398,387 |
(Amounts in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME TO EBITDA | |||||||||||||||||||||||
Net income (GAAP) | $ | 66,027 | $ | 48,574 | $ | 176,698 | $ | 131,814 | |||||||||||||||
Interest expense, net | 1,584 | 41 | 2,078 | 82 | |||||||||||||||||||
Income tax provision | 15,865 | 6,162 | 32,517 | 14,117 | |||||||||||||||||||
Depreciation | 4,951 | 4,056 | 13,928 | 11,819 | |||||||||||||||||||
Amortization | 838 | 1,278 | 2,514 | 3,835 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 89,265 | $ | 60,111 | $ | 227,735 | $ | 161,667 | |||||||||||||||
Net income margin (GAAP) | 17.2 | % | 16.4 | % | 16.6 | % | 15.8 | % | |||||||||||||||
EBITDA margin (Non-GAAP) | 23.3 | % | 20.3 | % | 21.4 | % | 19.4 | % |
(Amounts in millions, except per share amounts) | Forecast 2022 | ||||||||||||||||||||||
Net Income | Net income per diluted share | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income and net income per diluted share (GAAP) | $ | 232.0 | $ | 236.0 | $ | 6.88 | $ | 7.00 | |||||||||||||||
Income tax provision | 44.3 | 48.3 | |||||||||||||||||||||
Interest expense, net | 3.3 | 3.3 | |||||||||||||||||||||
Depreciation | 19.0 | 19.0 | |||||||||||||||||||||
Amortization | 3.4 | 3.4 | |||||||||||||||||||||
EBITDA (Non-GAAP) | $ | 302.0 | $ | 310.0 |
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Cover |
Oct. 21, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 21, 2022 |
Entity Registrant Name | Medpace Holdings, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-37856 |
Entity Tax Identification Number | 32-0434904 |
Entity Address, Address Line One | 5375 Medpace Way |
Entity Address, City or Town | Cincinnati |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 45227 |
City Area Code | 513 |
Local Phone Number | 579-9911 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock $0.01 par value |
Trading Symbol | MEDP |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001668397 |
-8?20$3;
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