- Net service revenue of $94.6 million in the second quarter increased 2.1% from net service revenue of $92.6 million for the comparable prior-year period, representing a backlog conversion rate of 19.5%.
- Net new business awards totaled $105.4 million in the second quarter, representing a decline of 5.7% from net new business awards of $111.7 million for the comparable prior-year period; second quarter 2017 net book-to-bill ratio was 1.11x.
- Second quarter 2017 GAAP net income was $9.6 million, or $0.23 per diluted share, versus a GAAP net income of $5.0 million, or $0.15 per diluted share, for the comparable prior-year period. Net income margin was 10.1% and 5.4% for the second quarter of 2017 and 2016, respectively.
- Adjusted EBITDA was $26.8 million, a decrease of 12.7% versus the comparable prior-year period, resulting in an Adjusted EBITDA margin of 28.3% for the second quarter of 2017.
- Adjusted Net Income was $15.5 million, or $0.38 per diluted share, an increase of 5.0% from the comparable prior-year period.
CINCINNATI--(BUSINESS WIRE)--Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Financial Results
Net service revenue for the three months ended June 30, 2017 was $94.6 million, an increase of 2.1%, compared to $92.6 million for the comparable prior-year period.
Backlog as of June 30, 2017 grew 6.5% to $495.9 million from $465.7 million as of June 30, 2016. Net new business awards were $105.4 million, representing a net book-to-bill ratio of 1.11x for the second quarter of 2017, as compared to $111.7 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 second quarter of 2017, Direct costs, excluding depreciation and amortization, were $52.0 million, compared to $49.2 million in the second quarter of 2016. Adjusted Direct costs were $52.8 million for the second quarter 2017, compared to $48.4 million in the second quarter of 2016.
Selling, general and administrative expenses were $14.8 million in the second quarter of 2017 and the second quarter of 2016. Adjusted Selling, general and administrative expenses were $14.9 million for the second quarter 2017 versus $13.6 million in the second quarter of 2016.
GAAP net income for the second quarter of 2017 was $9.6 million, or $0.23 per diluted share, versus a GAAP net income of $5.0 million, or $0.15 per diluted share, for the second quarter of 2016. This resulted in a net income margin of 10.1% and 5.4% for the second quarter of 2017 and 2016, respectively.
Adjusted EBITDA for the second quarter of 2017 was $26.8 million, or 28.3% of net service revenue, compared to $30.7 million, or 33.1% of net service revenue, for the comparable prior-year period.
Adjusted Net Income for the second quarter of 2017 increased 5.0% to $15.5 million, compared to $14.7 million for the comparable prior-year period. Adjusted Net Income per diluted share for the second quarter of 2017 was $0.38, representing a decrease of 15.6%, compared to Adjusted Net Income per diluted share of $0.45 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 is provided below.
Balance Sheet and Liquidity
The Company’s Cash and cash equivalents were $29.1 million at June 30, 2017, and the Company generated $30.4 million in cash flow from operating activities during the second quarter of 2017. During the second quarter of 2017, the Company repurchased approximately 1.04 million shares for a total of $26.4 million. The Company had $23.6 million remaining under its authorized share repurchase program at the end of the quarter.
