Medpace Reports First Quarter 2017 Results; Board Authorizes $50 Million Share Repurchase Program
CINCINNATI--(BUSINESS WIRE)--Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the first quarter ended March 31, 2017.
First Quarter 2017 Financial Results
Net service revenue for the three months ended March 31, 2017 was $93.8 million, an increase of 6.8% compared to $87.8 million for the comparable prior-year period.
Backlog as of March 31, 2017 grew 8.0% to $483.8 million from $448.1 million as of March 31, 2016. Net new business awards were $93.9 million, representing a net book-to-bill ratio of 1.00x for the first quarter of 2017, as compared to $106.4 million for the comparable prior-year period. The Company calculates net book-to-bill ratio by dividing net new business awards by net service revenue.
For the first quarter of 2017, Direct costs, excluding depreciation and amortization, were $51.1 million, compared to $47.0 million in the first quarter of 2016. Adjusted Direct costs were $51.9 million for the first quarter 2017 compared to $47.8 million in the first quarter of 2016.
For the first quarter of 2017, Selling, general and administrative expenses were $15.2 million compared to $13.5 million in the first quarter of 2016. Adjusted Selling, general and administrative expenses were $15.3 million for the first quarter 2017 versus $13.3 million in the first quarter of 2016.
GAAP net income for the first quarter of 2017 was $8.4 million, or $0.20 per diluted share, versus a GAAP net income of $3.4 million, or $0.11 per diluted share, for the first quarter of 2016. This resulted in a net income margin of 9.0% and 3.9% for the first quarter of 2017 and 2016, respectively.
Adjusted EBITDA for the first quarter of 2017 increased 1.8% to $26.2 million, or 28.0% of net service revenue, compared to $25.8 million, or 29.3% of net service revenue, for the comparable prior-year period.
Adjusted Net Income for the first quarter of 2017 increased 21.7% to $14.1 million, compared to $11.6 million for the comparable prior-year period. Adjusted Net Income per diluted share for the first quarter of 2017 was $0.34, representing a decrease of 2.9%, compared to Adjusted Net Income per diluted share of $0.35 for the comparable prior-year period.
A reconciliation of the Company’s non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Direct costs, Adjusted Selling, general and administrative expenses, Adjusted Net Income, and Adjusted Net Income per diluted share to the corresponding GAAP measures are provided below.
First Quarter 2017 Financial Results
Net service revenue for the three months ended March 31, 2017 was $93.8 million, an increase of 6.8% compared to $87.8 million for the comparable prior-year period.
Backlog as of March 31, 2017 grew 8.0% to $483.8 million from $448.1 million as of March 31, 2016. Net new business awards were $93.9 million, representing a net book-to-bill ratio of 1.00x for the first quarter of 2017, as compared to $106.4 million for the comparable prior-year period. The Company calculates net book-to-bill ratio by dividing net new business awards by net service revenue.
For the first quarter of 2017, Direct costs, excluding depreciation and amortization, were $51.1 million, compared to $47.0 million in the first quarter of 2016. Adjusted Direct costs were $51.9 million for the first quarter 2017 compared to $47.8 million in the first quarter of 2016.
For the first quarter of 2017, Selling, general and administrative expenses were $15.2 million compared to $13.5 million in the first quarter of 2016. Adjusted Selling, general and administrative expenses were $15.3 million for the first quarter 2017 versus $13.3 million in the first quarter of 2016.
GAAP net income for the first quarter of 2017 was $8.4 million, or $0.20 per diluted share, versus a GAAP net income of $3.4 million, or $0.11 per diluted share, for the first quarter of 2016. This resulted in a net income margin of 9.0% and 3.9% for the first quarter of 2017 and 2016, respectively.
Adjusted EBITDA for the first quarter of 2017 increased 1.8% to $26.2 million, or 28.0% of net service revenue, compared to $25.8 million, or 29.3% of net service revenue, for the comparable prior-year period.
Adjusted Net Income for the first quarter of 2017 increased 21.7% to $14.1 million, compared to $11.6 million for the comparable prior-year period. Adjusted Net Income per diluted share for the first quarter of 2017 was $0.34, representing a decrease of 2.9%, compared to Adjusted Net Income per diluted share of $0.35 for the comparable prior-year period.
A reconciliation of the Company’s non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Direct costs, Adjusted Selling, general and administrative expenses, Adjusted Net Income, and Adjusted Net Income per diluted share to the corresponding GAAP measures are provided below.