Medpace(MEDP) - 2021 Q1 - Quarterly Report

PART I — FINANCIAL INFORMATION Financial Statements (unaudited) This section presents the unaudited condensed consolidated financial statements for Q1 2021, including balance sheets, statements of operations, and cash flows, with accompanying notes Condensed Consolidated Statements of Operations (Q1 2021 vs Q1 2020) | (Amounts in thousands, except per share amounts) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Revenue, net | $259,965 | $230,879 | | Income from operations | $47,599 | $35,504 | | Net income | $43,306 | $28,954 | | Diluted EPS | $1.14 | $0.76 | Condensed Consolidated Balance Sheets Highlights | (Amounts in thousands) | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $332,877 | $277,766 | | Total current assets | $533,380 | $473,651 | | Total assets | $1,451,360 | $1,390,677 | | Total current liabilities | $447,306 | $440,110 | | Total liabilities | $592,433 | $584,898 | | Total shareholders' equity | $858,927 | $805,779 | Condensed Consolidated Statements of Cash Flows (Q1 2021 vs Q1 2020) | (Amounts in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $57,319 | $49,148 | | Net cash used in investing activities | ($9,651) | ($5,522) | | Net cash provided by (used in) financing activities | $9,102 | ($40,445) | | Increase in cash, cash equivalents, and restricted cash | $55,111 | $2,079 | - As of March 31, 2021, $102.6 million remained authorized for share repurchases, with no repurchases in Q1 2021, contrasting with $43.2 million for 661,637 shares in Q1 2020[21] - The company had approximately $1.8 billion in remaining performance obligations for active projects as of March 31, 2021[35] Revenue by Therapeutic Area (Q1 2021 vs Q1 2020) | Therapeutic Area | Q1 2021 Revenue (in thousands) | Q1 2020 Revenue (in thousands) | | :--- | :--- | :--- | | Oncology | $79,138 | $69,212 | | Other | $68,938 | $50,569 | | Metabolic | $32,495 | $36,075 | | AVAI | $30,820 | $25,147 | | Central Nervous System | $24,812 | $23,977 | | Cardiology | $23,762 | $25,899 | | Total revenue | $259,965 | $230,879 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2021 financial results, highlighting a 12.6% increase in net revenue to $260.0 million and a significant rise in net income, alongside key performance metrics and liquidity Key Performance Metrics (Q1 2021 vs Q1 2020) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net new business awards | $356.2 million | $246.9 million | | Backlog (as of March 31) | $1,631.8 million | $1,294.2 million | - The company expects to convert approximately $850 million to $870 million of its backlog to net revenue over the next twelve months[76] - The COVID-19 pandemic continues to cause temporary disruptions, primarily impacting physical access to sites, patient enrollment, and trial start-up activities[82] - Net revenue increased by $29.1 million (12.6%) in Q1 2021 compared to Q1 2020, driven by growth in Oncology, AVAI, and other therapeutic areas[86] - The effective tax rate decreased to 10.7% in Q1 2021 from 20.6% in Q1 2020, primarily due to increased tax benefits from FDII and share-based compensation[92] - The company maintained a strong liquidity position with $332.9 million in cash and cash equivalents and $49.8 million available under its credit facility as of March 31, 2021[93][94] Quantitative and Qualitative Disclosures About Market Risk No material changes have occurred in the company's quantitative and qualitative market risk disclosures since the 2020 Annual Report on Form 10-K - No material changes have occurred in the company's market risk disclosures compared to the 2020 Form 10-K[109] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 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 at a reasonable assurance level as of March 31, 2021[111] - No changes in internal control over financial reporting occurred during Q1 2021 that materially affected, or are reasonably likely to materially affect, these controls[113] PART II — OTHER INFORMATION Legal Proceedings The company is involved in incidental legal proceedings not expected to materially affect its financial statements - The company is involved in legal proceedings incidental to its business, which are not expected to have a material adverse effect on its financial statements[114] Risk Factors No significant changes have occurred to the risk factors previously disclosed in the 2020 Annual Report on Form 10-K - No significant changes have occurred to the risk factors disclosed in the 2020 Annual Report on Form 10-K[115] Unregistered Sales of Equity Securities and Use of Proceeds This section details the issuance of common stock from employee stock option exercises in Q1 2021, exempt from registration under Rule 701 - During Q1 2021, employees exercised 223,758 stock options under the 2014 Equity Incentive Plan for approximately $3.4 million[117] - These issuances were exempt from registration under Rule 701 of the Securities Act of 1933 as part of employee benefit plans[117] Defaults Upon Senior Securities The company reports no defaults upon senior securities during the period - None[119] Mine Safety Disclosures This item is not applicable to the company - Not applicable[120] Other Information The company reports no other information to be disclosed for the period - None[121] Exhibits This section lists the exhibits filed as part of the quarterly report, including a loan agreement amendment, CEO/CFO certifications, and Inline XBRL documents - Exhibits filed with the report include an amendment to the Loan Agreement, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL data files[122][124]