Medpace Holdings, Inc 10-Q for FY2021 Q2

Medpace Holdings, Inc. (MEDP)

10-Q 2021-07-27 For: 2021-06-30

Added on April 08, 2026

About this 10-Q

Medpace Holdings, Inc filed this 10-Q on July 27, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $278.29M; up 35.8% from $205M a year earlier
Net income: $39.93M; up 65.7% from net income of $24.1M a year earlier
Diluted EPS: $1.06; up 65.6% from $0.64 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.01 par value	MEDP	NASDAQ Global Select Market

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

Class		Number of Shares Outstanding
Common Stock $0.01 par value		35,819,312 shares outstanding as of July 23, 2021

Item Number		Page
	PART I — FINANCIAL INFORMATION	3
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020	4
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2021 and 2020	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2021 and 2020	6
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

	PART II — OTHER INFORMATION	25
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	26
	EXHIBIT INDEX	27
	SIGNATURES	28

(Amounts in thousands, except share amounts)	As Of
	June 30,			December 31,
	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	339,009		$	277,766
Accounts receivable and unbilled, net (includes $6.1 million and $2.6 million with related parties at June 30, 2021 and December 31, 2020, respectively)		161,489			160,962
Prepaid expenses and other current assets		49,602			34,923
Total current assets		550,100			473,651
Property and equipment, net		86,195			85,017
Operating lease right-of-use assets		110,730			113,809
Goodwill		662,396			662,396
Intangible assets, net		43,917			46,474
Deferred income taxes		540			536
Other assets		15,830			8,794
Total assets	$	1,469,708		$	1,390,677
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable (includes $0.7 million and $0.2 million with related parties at June 30, 2021 and December 31, 2020, respectively)	$	23,326		$	26,552
Accrued expenses		145,847			134,367
Advanced billings (includes $5.9 million and $6.5 million with related parties at June 30, 2021 and December 31, 2020, respectively)		282,217			255,664
Other current liabilities		21,217			23,527
Total current liabilities		472,607			440,110
Operating lease liabilities		112,850			115,143
Deferred income tax liability		16,242			13,551
Other long-term liabilities		16,127			16,094
Total liabilities		617,826			584,898
Commitments and contingencies (see Note 11)
Shareholders’ equity:
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		-			-
Common stock - $0.01 par-value; 250,000,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 35,819,012 and 35,519,989 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		358			355
Treasury stock - 185,000 shares at June 30, 2021 and December 31, 2020, respectively		(5,578	)		(5,578	)
Additional paid-in capital		716,547			695,904
Retained earnings		142,315			115,229
Accumulated other comprehensive loss		(1,760	)		(131	)
Total shareholders’ equity		851,882			805,779
Total liabilities and shareholders’ equity	$	1,469,708		$	1,390,677

(Amounts in thousands, except per share amounts)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenue, net (includes $9.9 million and $2.7 million with related parties for the three months ended June 30, 2021 and 2020, respectively, and $15.2 million and $8.2 million with related parties for the six months ended June 30, 2021 and 2020, respectively)	$	278,293		$	204,995		$	538,258		$	435,874
Operating expenses:
Direct service costs, excluding depreciation and amortization		108,233			86,625			209,620			175,420
Reimbursed out-of-pocket expenses		95,409			61,733			175,560			138,739
Total direct costs		203,642			148,358			385,180			314,159
Selling, general and administrative		26,973			21,855			52,711			46,979
Depreciation		3,951			2,674			7,763			5,127
Amortization		1,279			1,980			2,557			3,977
Total operating expenses		235,845			174,867			448,211			370,242
Income from operations		42,448			30,128			90,047			65,632
Other income, net:
Miscellaneous income, net		265			239			1,189			856
Interest (expense) income, net		(27	)		(5	)		(41	)		352
Total other income, net		238			234			1,148			1,208
Income before income taxes		42,686			30,362			91,195			66,840
Income tax provision		2,752			6,258			7,955			13,782
Net income	$	39,934		$	24,104		$	83,240		$	53,058
Net income per share attributable to common shareholders:
Basic	$	1.11		$	0.68		$	2.32		$	1.48
Diluted	$	1.06		$	0.64		$	2.20		$	1.40
Weighted average common shares outstanding:
Basic		35,894			35,386			35,825			35,705
Diluted		37,714			37,328			37,737			37,680

(Amounts in thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021			2020
Net income	$	39,934	$	24,104	$	83,240		$	53,058
Other comprehensive income
Foreign currency translation adjustments, net of taxes		506		506		(1,629	)		(482	)
Comprehensive income	$	40,440	$	24,610	$	81,611		$	52,576

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(Amounts in thousands)												Accumulated
							Additional					Other
	Common			Treasury			Paid-In		Retained			Comprehensive
	Stock			Stock			Capital		Earnings			Loss			Total
BALANCE — December 31, 2019	$	360		$	(6,030	)	$	666,585	$	68,109		$	(2,741	)	$	726,283
Net income										28,954						28,954
Foreign currency translation													(988	)		(988	)
Stock-based compensation expense								5,445								5,445
Stock options exercised		1						1,342								1,343
Repurchases of common stock		(6	)							(43,232	)					(43,238	)
BALANCE — March 31, 2020	$	355		$	(6,030	)	$	673,372	$	53,831		$	(3,729	)	$	717,799
Net income										24,104						24,104
Foreign currency translation													506			506
Stock-based compensation expense								2,616								2,616
Stock options exercised								633								633
Repurchases of common stock		(1	)							(7,588	)					(7,589	)
BALANCE — June 30, 2020	$	354		$	(6,030	)	$	676,621	$	70,347		$	(3,223	)	$	738,069


												Accumulated
							Additional					Other
	Common			Treasury			Paid-In		Retained			Comprehensive
	Stock			Stock			Capital		Earnings			Loss			Total
BALANCE — December 31, 2020	$	355		$	(5,578	)	$	695,904	$	115,229		$	(131	)	$	805,779
Net income										43,306						43,306
Foreign currency translation													(2,135	)		(2,135	)
Stock-based compensation expense								2,871								2,871
Stock options exercised		4						9,102								9,106
BALANCE — March 31, 2021	$	359		$	(5,578	)	$	707,877	$	158,535		$	(2,266	)	$	858,927
Net income										39,934						39,934
Foreign currency translation													506			506
Stock-based compensation expense								3,570								3,570
Stock options exercised		2						5,100								5,102
Repurchases of common stock		(3	)							(56,154	)					(56,157	)
BALANCE — June 30, 2021	$	358		$	(5,578	)	$	716,547	$	142,315		$	(1,760	)	$	851,882

See notes to condensed consolidated financial statements.

	Amortization
Remainder of 2021	$	2,557
2022		3,353
2023		2,199
2024		1,443
2025		946
Later years		1,773
	$	12,271

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	5,817	$	4,871	$	11,547	$	8,639
Variable lease cost		1,112		1,184		2,816		2,070

	Related Party			Non-Related Parties			Total
	Operating Leases			Operating Leases			Operating Leases
Remainder of 2021	$	5,274		$	5,847		$	11,121
2022		10,301			9,723			20,024
2023		8,771			8,323			17,094
2024		8,900			6,293			15,193
2025		9,032			4,775			13,807
Later years		103,006			10,081			113,087
Total lease payments		145,284			45,042			190,326
Less: imputed interest		(57,047	)		(5,250	)		(62,297	)
Total	$	88,237		$	39,792		$	128,029

	Six Months Ended June 30, 2021
				Weighted Average
	Stock Options			Exercise Price
Outstanding - beginning of period		2,500,727		$	43.26
Granted		273,588		$	166.65
Exercised		(642,182	)	$	22.12
Cancelled/Forfeited		(21,332	)	$	42.34
Expired		(11,545	)	$	14.41
Outstanding - end of period		2,099,256		$	65.97

Exercisable - end of period		1,356,368		$	55.28

	Six Months Ended
	June 30, 2021
	Shares/Units
Outstanding and unvested - beginning of period		695,562
Granted		74,725
Vested		-
Forfeited		(37,535	)
Outstanding and unvested - end of period		732,752

Cumulative vested shares - end of period		1,913,916

	Three Months Ended
	June 30,
(Amounts in thousands, except percentages)	2021			2020			Change			% Change
Revenue, net	$	278,293		$	204,995		$	73,298			35.8	%
Direct service costs, excluding depreciation and amortization		108,233			86,625			21,608			24.9	%
Reimbursed out-of-pocket expenses		95,409			61,733			33,676			54.6	%
Total direct costs		203,642			148,358			55,284			37.3	%
Selling, general and administrative		26,973			21,855			5,118			23.4	%
Depreciation		3,951			2,674			1,277			47.8	%
Amortization		1,279			1,980			(701	)		(35.4	)%
Total operating expenses		235,845			174,867			60,978			34.9	%
Income from operations		42,448			30,128			12,320
Miscellaneous income, net		265			239			26
Interest expense, net		(27	)		(5	)		(22	)
Income before income taxes		42,686			30,362			12,324
Income tax provision		2,752			6,258			(3,506	)
Net income	$	39,934		$	24,104		$	15,830

	Six Months Ended
	June 30,
Cash Flows (Amounts in thousands)	2021			2020
Net cash provided by operating activities	$	120,080		$	93,415
Net cash used in investing activities		(15,648	)		(14,837	)
Net cash used in financing activities		(41,677	)		(48,851	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(1,512	)		(744	)
Increase in cash, cash equivalents and restricted cash	$	61,243		$	28,983

	As of
	June 30,			December 31,
	2021			2020
Intangible assets:
Finite-lived intangible assets:
Carrying amount:
Customer relationships		145,051			145,051
Accumulated amortization:
Customer relationships		(132,780	)		(130,223	)
Total finite-lived intangible assets, net		12,271			14,828
Trade name (indefinite-lived)		31,646			31,646
Total intangible assets, net	$	43,917		$	46,474

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Therapeutic Area
Oncology	$	93,248	$	65,629	$	172,386	$	134,841
Other		64,120		45,196		133,058		95,765
Metabolic		38,143		30,210		70,638		66,285
AVAI		26,191		22,987		57,011		48,134
Central Nervous System		28,551		19,218		53,363		43,195
Cardiology		28,040		21,755		51,802		47,654
Total revenue	$	278,293	$	204,995	$	538,258	$	435,874

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publically Announced Plan		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan
May 1, 2021, through May 31, 2021		304,059	$	162.78		1,487,154	$	203,070,472
June 1, 2021, through June 30, 2021		39,100	$	170.10		1,526,254	$	196,419,412
Total		343,159	$	163.61		1,526,254

Date	Equity Plan	Number of Stock Options Exercised		Exercise Price		Approximate Aggregate Purchase Price
April 12, 2021	2014 Equity Incentive Plan		3,703	$	16.20	$	60,000
April 16, 2021	2014 Equity Incentive Plan		15,000		18.23		273,500
April 19, 2021	2014 Equity Incentive Plan		411		14.41		5,900
April 27, 2021	2014 Equity Incentive Plan		19,587		14.41		282,200
April 27, 2021	2014 Equity Incentive Plan		9,021		16.20		146,100
April 28, 2021	2014 Equity Incentive Plan		3,703		16.20		60,000
April 29, 2021	2014 Equity Incentive Plan		1,405		16.20		22,800
April 30, 2021	2014 Equity Incentive Plan		5,705		14.41		82,200
May 3, 2021	2014 Equity Incentive Plan		1,109		16.20		18,000
May 3, 2021	2014 Equity Incentive Plan		777		18.23		14,200
May 4, 2021	2014 Equity Incentive Plan		3,703		14.41		53,400
May 6, 2021	2014 Equity Incentive Plan		492		14.41		7,100
May 10, 2021	2014 Equity Incentive Plan		14,655		14.41		211,200
May 10, 2021	2014 Equity Incentive Plan		1,000		16.20		16,200
May 11, 2021	2014 Equity Incentive Plan		1,500		14.41		21,600
May 17, 2021	2014 Equity Incentive Plan		3,703		14.41		53,400
May 19, 2021	2014 Equity Incentive Plan		5,555		14.41		80,000
May 20, 2021	2014 Equity Incentive Plan		2,962		14.41		42,700
May 21, 2021	2014 Equity Incentive Plan		3,000		14.41		43,200
May 24, 2021	2014 Equity Incentive Plan		888		14.41		12,800
May 25, 2021	2014 Equity Incentive Plan		1,037		14.41		14,900
May 26, 2021	2014 Equity Incentive Plan		6,044		14.41		87,100
May 28, 2021	2014 Equity Incentive Plan		203		14.41		2,900
May 28, 2021	2014 Equity Incentive Plan		1,111		16.20		18,000
June 1, 2021	2014 Equity Incentive Plan		1,679		14.41		24,200
June 7, 2021	2014 Equity Incentive Plan		100		16.20		1,600
June 9, 2021	2014 Equity Incentive Plan		8,261		14.41		119,000
June 10, 2021	2014 Equity Incentive Plan		625		14.41		9,000
June 30, 2021	2014 Equity Incentive Plan		590		14.41		8,500
Total			117,529			$	1,791,700

	MEDPACE HOLDINGS, INC.

	/s/ Jesse J. Geiger
	Jesse J. Geiger
	Chief Financial Officer, and Chief Operating Officer, Laboratory Operations (Authorized Officer and Principal Financial Officer)

By:		/s/ August J. Troendle
		August J. Troendle
		President, Chief Executive Officer and Chairman of the Board of Directors
		(Principal Executive Officer)

By:		/s/ Jesse J. Geiger
		Jesse J. Geiger
		Chief Financial Officer and Chief Operating Officer, Laboratory Operations
		(Principal Financial Officer)