Medpace(MEDP) - 2021 Q3 - Quarterly Report

PART I — FINANCIAL INFORMATION Financial Statements (unaudited) Unaudited financial statements for Q3 2021 show total assets increased to $1.58 billion, with revenue growing 28.3% to $295.6 million and net income reaching $48.6 million, supported by strong operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $398,387 | $277,766 | | Total current assets | $641,220 | $473,651 | | Total assets | $1,577,143 | $1,390,677 | | Liabilities & Equity | | | | Total current liabilities | $517,182 | $440,110 | | Total liabilities | $679,058 | $584,898 | | Total shareholders' equity | $898,085 | $805,779 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $295,567 | $230,373 | $833,825 | $666,247 | | Income from operations | $53,713 | $46,422 | $143,760 | $112,054 | | Net income | $48,574 | $41,460 | $131,814 | $94,518 | | Diluted EPS | $1.29 | $1.09 | $3.49 | $2.50 | Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended, in thousands) | Cash Flow Activity | Sep 30, 2021 | Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $192,433 | $153,178 | | Net cash used in investing activities | ($22,248) | ($23,480) | | Net cash used in financing activities | ($46,884) | ($42,074) | - The Board of Directors increased the stock repurchase program authorization to $300.0 million, with 377,783 shares repurchased for $62.1 million during the nine months ended September 30, 2021[20] - Significant revenue was recognized from related parties, including $18.3 million from CinRx Pharma and $5.6 million from LIB Therapeutics, for the nine months ended September 30, 2021[50][51] Management's Discussion and Analysis of Financial Condition and Results of Operations Strong financial performance is attributed to growth in key therapeutic areas, with backlog increasing 29.0% to $1.85 billion and Q3 revenue rising 28.3% to $295.6 million, supported by a strong liquidity position of $398.4 million in cash Key Performance Metrics (in millions) | Metric | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Net New Business Awards | $408.0 | $315.4 | $1,151.7 | $816.4 | - Backlog increased by 29.0% to $1.85 billion as of September 30, 2021, with an expected conversion of $1.005 billion to $1.025 billion to revenue over the next twelve months[77] - Revenue growth for the three and nine months ended September 30, 2021, was primarily driven by expansion in Oncology, Metabolic, and Central Nervous System therapeutic areas[90] - The company maintains a strong liquidity position with $398.4 million in cash and cash equivalents and $49.8 million available under its credit facility, with no outstanding debt as of September 30, 2021[97][98][107] Quantitative and Qualitative Disclosures About Market Risk There have been no material changes to the company's quantitative and qualitative disclosures about market risk since the fiscal year ended December 31, 2020 - No material changes have occurred in the company's market risk disclosures since the last annual report[114] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period[116] - No material changes occurred in the company's internal control over financial reporting during the third quarter of 2021[119] PART II — OTHER INFORMATION Legal Proceedings The company is involved in incidental legal proceedings not expected to have a material adverse effect on its financial statements - The company is party to incidental legal proceedings not expected to have a material adverse effect on its financial statements[120] Risk Factors No significant changes have occurred in the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - No significant changes have been made to the risk factors disclosed in the company's 2020 Annual Report on Form 10-K[121] Unregistered Sales of Equity Securities and Use of Proceeds During Q3 2021, the company repurchased 34,624 shares for approximately $5.9 million and issued securities to employees via stock option exercises exempt from registration Share Repurchases in Q3 2021 | Metric | Value | | :--- | :--- | | Total Shares Purchased | 34,624 | | Average Price Paid per Share | $171.50 | | Total Value of Repurchases | ~$5.9 million | - All share repurchases were executed pursuant to established Rule 10b5-1 trading plans[122] Defaults Upon Senior Securities The company reports no defaults upon senior securities - No defaults upon senior securities were reported[127] Mine Safety Disclosures This item is not applicable to the company - This item is not applicable[128] Other Information The company reports no other information for this period - No other information was reported for this period[129] Exhibits This section references the Exhibit Index, listing all exhibits filed or furnished as part of the quarterly report - The exhibits listed in the accompanying Exhibit Index are filed or furnished as part of this report[130]