Medpace(US:MEDP)2022-02-15 18:40Financial Data and Key Metrics Changes - Revenue for Q4 2021 was $308.6 million, representing an 18.8% year-over-year increase. Full year 2021 revenue was $1.142 billion, a 23.4% increase over 2020 [11][15] - EBITDA for Q4 2021 was $61.4 million, a 2% increase from $60.2 million in Q4 2020. Full year 2021 EBITDA increased 18.8% to $223.1 million compared to $187.8 million in 2020 [16] - Net income for Q4 2021 was $50 million, compared to $50.9 million in the prior year period. Full year 2021 net income was $181.8 million, up from $145.4 million in 2020 [17] Business Line Data and Key Metrics Changes - Net new business awards entering backlog in Q4 increased 27.9% year-over-year to $458.7 million, resulting in a net book-to-bill ratio of 1.49% [12] - For the full year 2021, net new business awards were $1.6 billion, an increase of 37.1%, with an ending backlog of approximately $2 billion, up 29.5% from the prior year [12] Market Data and Key Metrics Changes - Overall, COVID-19 related work represented only 2.2% of revenue and less than 1% of backlog for 2021 [13] - Backlog conversion in Q4 was 16.7% of beginning backlog, with approximately $1.04 billion of backlog projected to convert to revenue in the next 12 months [13] Company Strategy and Development Direction - The company is monitoring biotech funding and wage inflation closely, with wage inflation expected to be a headwind to margins [8][9] - The company anticipates maintaining a strong growth trajectory despite a decline in RFP dollar volume [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business environment, stating that despite a decline in RFPs, there are no significant signs of client hesitancy or funding issues [8][25] - The company reaffirmed its 2022 guidance, forecasting total revenue between $1.4 billion and $1.46 billion, representing growth of 22.6% to 27.8% over 2021 [20][21] Other Important Information - The company ended Q4 with $461 million in cash, no outstanding debt, and $50 million of undrawn capacity on its revolving line of credit [19] - The Board approved an increase of $300 million to the current share repurchase program [19] Q&A Session Summary Question: Are there signs of client hesitancy due to RFP decline? - Management indicated no significant signs of client hesitancy or funding issues despite the decline in RFPs [25] Question: How is the company addressing patient diversity in clinical trials? - Management acknowledged the importance of patient diversity and stated it is a consideration in site selection [26] Question: Are there changes in recruitment strategies due to wage inflation? - Management confirmed that recruitment strategies remain intact despite rising wage levels [27] Question: Are contracts changing in response to inflation? - Management stated that contract structures remain the same, with wage inflation assumptions included but not changed [32] Question: What are the thoughts on deploying cash on the balance sheet? - Management reiterated a consistent capital allocation strategy focused on organic growth and opportunistic share repurchases [35]