Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MEDP | |
Entity Registrant Name | Medpace Holdings, Inc. | |
Entity Central Index Key | 0001668397 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,972,156 | |
Entity File Number | 001-37856 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0434904 | |
Entity Address, Address Line One | 5375 Medpace Way | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45227 | |
City Area Code | 513 | |
Local Phone Number | 579-9911 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 332,877 | $ 277,766 |
Accounts receivable and unbilled, net (includes $2.2 million and $2.6 million with related parties at March 31, 2021 and December 31, 2020, respectively) | 159,997 | 160,962 |
Prepaid expenses and other current assets | 40,506 | 34,923 |
Total current assets | 533,380 | 473,651 |
Property and equipment, net | 84,504 | 85,017 |
Operating lease right-of-use assets | 112,266 | 113,809 |
Goodwill | 662,396 | 662,396 |
Intangible assets, net | 45,196 | 46,474 |
Deferred income taxes | 556 | 536 |
Other assets | 13,062 | 8,794 |
Total assets | 1,451,360 | 1,390,677 |
Current liabilities: | ||
Accounts payable (includes $0.1 million and $0.2 million with related parties at March 31, 2021 and December 31, 2020, respectively) | 21,348 | 26,552 |
Accrued expenses | 123,608 | 134,367 |
Advanced billings (includes $6.1 million and $6.5 million with related parties at March 31, 2021 and December 31, 2020, respectively) | 277,807 | 255,664 |
Other current liabilities | 24,543 | 23,527 |
Total current liabilities | 447,306 | 440,110 |
Operating lease liabilities | 114,144 | 115,143 |
Deferred income tax liability | 14,876 | 13,551 |
Other long-term liabilities | 16,107 | 16,094 |
Total liabilities | 592,433 | 584,898 |
Commitments and contingencies (see Note 11) | ||
Shareholders’ equity: | ||
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 0 | 0 |
Common stock - $0.01 par-value; 250,000,000 shares authorized at March 31, 2021 and December 31, 2020, respectively; 35,926,158 and 35,519,989 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 359 | 355 |
Treasury stock - 185,000 shares at March 31, 2021 and December 31, 2020, respectively | (5,578) | (5,578) |
Additional paid-in capital | 707,877 | 695,904 |
Retained earnings | 158,535 | 115,229 |
Accumulated other comprehensive loss | (2,266) | (131) |
Total shareholders’ equity | 858,927 | 805,779 |
Total liabilities and shareholders’ equity | $ 1,451,360 | $ 1,390,677 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, unbilled services with related parties | $ 2.2 | $ 2.6 |
Accounts payable includes related parties | 0.1 | 0.2 |
Advanced billings with related parties | $ 6.1 | $ 6.5 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 35,926,158 | 35,519,989 |
Common stock shares outstanding | 35,926,158 | 35,519,989 |
Treasury stock shares | 185,000 | 185,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue, net (includes $5.3 million and $5.5 million with related parties for the three months ended March 31, 2021 and 2020, respectively) | $ 259,965 | $ 230,879 |
Operating expenses: | ||
Total direct costs | 181,538 | 165,801 |
Selling, general and administrative | 25,738 | 25,124 |
Depreciation | 3,812 | 2,453 |
Amortization | 1,278 | 1,997 |
Total operating expenses | 212,366 | 195,375 |
Income from operations | 47,599 | 35,504 |
Other income, net: | ||
Miscellaneous income, net | 924 | 617 |
Interest (expense) income, net | (14) | 357 |
Total other income, net | 910 | 974 |
Income before income taxes | 48,509 | 36,478 |
Income tax provision | 5,203 | 7,524 |
Net income | $ 43,306 | $ 28,954 |
Net income per share attributable to common shareholders: | ||
Basic | $ 1.21 | $ 0.80 |
Diluted | $ 1.14 | $ 0.76 |
Weighted average common shares outstanding: | ||
Basic | 35,753 | 36,024 |
Diluted | 37,749 | 38,030 |
Direct Costs | ||
Operating expenses: | ||
Total direct costs | $ 101,387 | $ 88,795 |
Reimbursable Out of Pocket Costs | ||
Operating expenses: | ||
Total direct costs | $ 80,151 | $ 77,006 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Net | ||
Revenue with related parties | $ 5.3 | $ 5.5 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 43,306 | $ 28,954 |
Other comprehensive income | ||
Foreign currency translation adjustments, net of taxes | (2,135) | (988) |
Comprehensive income | $ 41,171 | $ 27,966 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2019 | $ 726,283 | $ 360 | $ (6,030) | $ 666,585 | $ 68,109 | $ (2,741) |
Net income | 28,954 | 28,954 | ||||
Foreign currency translation | (988) | (988) | ||||
Stock-based compensation expense | 5,445 | 5,445 | ||||
Stock options exercised | 1,343 | 1 | 1,342 | |||
Repurchases of common stock | (43,238) | (6) | (43,232) | |||
Balance at Mar. 31, 2020 | 717,799 | 355 | (6,030) | 673,372 | 53,831 | (3,729) |
Balance at Dec. 31, 2020 | 805,779 | 355 | (5,578) | 695,904 | 115,229 | (131) |
Net income | 43,306 | 43,306 | ||||
Foreign currency translation | (2,135) | (2,135) | ||||
Stock-based compensation expense | 2,871 | 2,871 | ||||
Stock options exercised | 9,106 | 4 | 9,102 | |||
Balance at Mar. 31, 2021 | $ 858,927 | $ 359 | $ (5,578) | $ 707,877 | $ 158,535 | $ (2,266) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 43,306 | $ 28,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 3,812 | 2,453 |
Amortization | 1,278 | 1,997 |
Stock-based compensation expense | 2,871 | 5,445 |
Noncash lease expense | 3,903 | 2,917 |
Deferred income tax provision | 1,289 | 1,079 |
Amortization and adjustment of deferred credit | (167) | (181) |
Other | 124 | (67) |
Changes in assets and liabilities: | ||
Accounts receivable and unbilled, net | 1,089 | 19,301 |
Prepaid expenses and other current assets | (6,073) | (2,694) |
Accounts payable | (2,638) | (6,809) |
Accrued expenses | (10,043) | (1,757) |
Advanced billings | 22,143 | (2,695) |
Lease liabilities | (3,155) | (2,236) |
Other assets and liabilities, net | (420) | 3,441 |
Net cash provided by operating activities | 57,319 | 49,148 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property and equipment expenditures | (6,507) | (5,561) |
Other | (3,144) | 39 |
Net cash used in investing activities | (9,651) | (5,522) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock option exercises | 9,102 | 1,331 |
Repurchases of common stock | 0 | (41,776) |
Net cash provided by (used in) financing activities | 9,102 | (40,445) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (1,659) | (1,102) |
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 55,111 | 2,079 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 277,766 | 131,920 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | $ 332,877 | $ 133,999 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Description of Business Medpace Holdings, Inc. (together with its subsidiaries, “Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia. Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 Share Repurchases In the first quarter of 2018, the Board of Directors approved a share repurchase program authorizing up to $50.0 million in share repurchases. In the first quarter of 2020, the Board of Directors approved an increase in the stock repurchase authorization by $50.0 million. In the fourth quarter of 2020, the Board approved the stock repurchase authorization up to $150.0 million. During the quarter ended March 31, 2020, the Company repurchased 661,637 shares for $43.2 million. As of March 31, 2021, we have remaining authorization of $102.6 million remaining under the repurchase program. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retired the repurchased shares associated with these approved share repurchases, with all amounts paid in excess of par value reflected within Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. Supplemental Cash Flow Disclosure During the three months ended March 31, 2020, the company engaged in a non-cash financing activity of $1.4 million related to share repurchases executed, but not yet paid as of March 31, 2020. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this standard in the first quarter of 2020 and it had no material impact to the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The new guidance includes several provisions to reduce the complexity of accounting for income taxes for financial reporting purposes and increasing consistency and clarity for financial statement readers. The new guidance is effective for public entities for fiscal years, and the related interim periods, beginning after December 15, 2020. The Company adopted this standard in the first quarter of 2021 and it has no material impact on the condensed consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | (2) Net Income Per Share Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s Restricted Stock Awards (“RSA”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested Restricted Stock Units (“RSU”) and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect. The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2021 and 2020 (in thousands, except for earnings per share): Three Months Ended March 31, 2021 2020 Weighted-average shares: Common shares outstanding 35,753 36,024 RSAs 116 95 Total weighted-average shares 35,869 36,119 Earnings per common share—Basic Net income $ 43,306 $ 28,954 Less: Undistributed earnings allocated to RSAs 140 76 Net income available to common shareholders—Basic $ 43,166 $ 28,878 Net income per common share—Basic $ 1.21 $ 0.80 Basic weighted-average common shares outstanding 35,753 36,024 Effect of diluted shares 1,996 2,006 Diluted weighted-average shares outstanding 37,749 38,030 Net income per common share—Diluted $ 1.14 $ 0.76 During the three months ended March 31, 2021 and 2020, the Company had 0 and 439,405 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) Fair Value Measurements The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities. The Company does not have any recurring fair value measurements as of March 31, 2021. There were no transfers between Level 1, Level 2 or Level 3 during the three months ended March 31, 2021 or 2020. |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Contract Liabilities | (4) Contract Assets and Contract Liabilities Contract assets and liabilities are reflected in the Company’s condensed consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date. Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Accounts receivable $ 131,918 $ 137,912 Unbilled receivables 28,425 23,396 Less: allowance for doubtful accounts (346 ) (346 ) Total accounts receivable and unbilled, net $ 159,997 $ 160,962 Contract Liabilities Advanced billings represent cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Advanced billings $ 277,807 $ 255,664 As of March 31, 2021, we had approximately $1.8 billion of performance obligations remaining to be performed for active projects. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | (5) Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships (131,501 ) (130,223 ) Total finite-lived intangible assets, net 13,550 14,828 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 45,196 $ 46,474 As of March 31, 2021, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2021 $ 3,836 2022 3,353 2023 2,199 2024 1,443 2025 946 Later years 1,773 $ 13,550 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Employee compensation and benefits $ 29,004 $ 40,208 Project related reimbursable expenses 86,044 87,092 Other 8,560 7,067 Total accrued expenses $ 123,608 $ 134,367 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | (7) Debt On September 30, 2019, the Company obtained an unsecured credit facility in an aggregate principal amount up to $50.0 million (the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower, and Medpace IntermediateCo, Inc., as guarantor. Outstanding balances under the Credit Facility bear interest at a rate of LIBOR plus 100 basis points (1.00%). On March 29, 2021, the Company amended the credit facility expiration date to March 31, 2022. As of March 31, 2021, there were no outstanding borrowings under the Credit Facility and $0.2 million in letters of credit outstanding related to certain operating lease obligations, which are secured by the Credit Facility. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | (8) Leases The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 19 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost $ 5,730 $ 3,768 Variable lease cost 1,704 886 Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,422 $ 2,600 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,672 10,076 Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2021 2020 Operating lease right-of-use assets $ 112,266 $ 113,809 Other current liabilities $ 16,111 $ 15,890 Operating lease liabilities 114,144 115,143 Total operating lease liabilities $ 130,255 $ 131,033 Weighted Average Remaining Lease Term (years) Operating leases 12.7 12.9 Weighted Average Discount Rate Operating leases 5.8 % 5.9 % Lease payments due related to lease liabilities as of March 31, 2021 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2021 $ 7,892 $ 9,534 $ 17,426 2022 10,301 9,259 19,560 2023 8,771 7,957 16,728 2024 8,900 5,872 14,772 2025 9,032 4,350 13,382 Later years 103,006 9,195 112,201 Total lease payments 147,902 46,167 194,069 Less: imputed interest (58,422 ) (5,392 ) (63,814 ) Total $ 89,480 $ 40,775 $ 130,255 |
Shareholder's Equity and Stock-
Shareholder's Equity and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholder's Equity and Stock-Based Compensation | (9) Shareholder’s Equity and Stock-Based Compensation The Company granted no awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2021. The Company granted 312,897 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2020, consisting of 20,724 RSA and 92,768 restricted stock units RSU vesting after four years, and 199,405 fully-vested stock option awards. Award Activity The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2021 Weighted Stock Options Exercise Price Outstanding - beginning of period 2,500,727 $ 43.26 Granted - $ - Exercised (406,169 ) $ 22.42 Forfeited/Expired (12,000 ) $ 57.94 Outstanding - end of period 2,082,558 $ 47.24 Exercisable - end of period 1,564,110 $ 49.66 The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2021 Shares/Units Outstanding and unvested - beginning of period 695,562 Granted - Vested - Forfeited (13,935 ) Outstanding and unvested - end of period 681,627 Cumulative vested shares - end of period 1,913,916 Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2021 2020 Total direct costs $ 2,047 $ 2,006 Selling, general and administrative 824 3,439 Total stock-based compensation expense $ 2,871 $ 5,445 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes The Company’s effective income tax rate was 10.7% and 20.6% for the three months ended March 31, 2021 and 2020, respectively. The Company’s effective income tax rate for the three months ended March 31, 2021 varied from the U.S. statutory rate of 21% primarily due to the impact of state taxes, which was favorably offset by tax benefits related to Foreign Derived Intangible Income (FDII) and excess tax benefits recognized from share-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies Legal Proceedings The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions. The Company cannot predict with certainty the outcome of such proceedings, but it believes that adequate reserves have been recorded and losses already recognized with respect to such proceedings, which were immaterial as of March 31, 2021 and December 31, 2020. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, the Company believes that such potential losses were immaterial as of March 31, 2021. Purchase Commitments The Company has several minimum purchase commitments for project related supplies totaling $12.6 million as of March 31, 2021. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2027. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions Employee Loans The Company periodically extends short term loans or advances to employees, typically upon commencement of employment. Total receivables as a result of these employee advances of $0.2 million existed at March 31, 2021 and December 31, 2020, respectively, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date. Service Agreements LIB Therapeutics LLC and subsidiaries (“LIB”) Certain executives and employees of the Company, including the chief executive officer, are members of LIB’s board of managers. The Company entered into a MSA dated November 24, 2015 with LIB, a company that engages in research, development, marketing and commercialization of pharmaceutical drugs. Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services. During the three months ended March 31, 2021 and 2020, the Company recognized total revenue from LIB of $0.5 million and $1.0 million, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2021 and December 31, 2020, respectively, the Company had Advanced billings from LIB of $0.6 million and $0.7 million CinRX Pharma and subsidiaries (“CinRx”) Certain executives and employees of the Company, including the chief executive officer, are members of CinRx’s board of managers and/or have equity investments in CinRx, a biotech company. The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services. During the three months ended March 31, 2021 and 2020, the Company recognized total revenue from CinRx of $4.8 million and $4.4 million, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2021 and December 31, 2020, respectively, the Company had Advanced billings from CinRx of $5.5 million and $5.8 million recorded in the condensed consolidated balance sheets. As of March 31, 2021 and December 31, 2020 the Company had Accounts receivable and unbilled, net from CinRx of $2.0 million and $2.2 million, respectively, in the condensed consolidated balance sheets. The Summit Hotel (“The Summit”) The Summit Hotel, located on the Medpace campus, is owned by the chief executive officer, and managed by an unrelated hospitality management entity. Medpace incurs travel lodging and meeting expenses at The Summit. During the three months ended March 31, 2021 and 2020, Medpace incurred expenses of $0.1 million and $0.2 million at The Summit, respectively. Leased Real Estate Headquarters Lease The Company entered into an operating lease for its corporate headquarters with an entity that is wholly owned by the chief executive officer of the Company. The Company has evaluated its relationship with the related party and concluded that the related party is not a variable interest entity because the Company has no direct ownership interest or relationship other than the lease. The lease for headquarters is for an initial term of twelve years through November 2022 with a renewal option for one 10-year term at prevailing market rates. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for its corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. Operating lease cost recognized for the three months ended March 31, 2021 and 2020 was $0.5 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2021 and December 31, 2020 were $3.0 million and $3.5 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2021 were $1.9 million and $1.1 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2020 were $1.9 million and $1.6 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. In 2018, Medpace, Inc. entered into a multi-year lease agreement governing future occupancy of additional office space in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company began to occupy the premises in the second quarter of fiscal year 2020. The lease expires in 2040 and the Company has two 10-year options to extend the term of the lease. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in consumer price index. The Company has determined that the lease is an operating lease. Operating lease cost recognized for the three months ended March 31, 2021 was $ 1.4 million. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2021 and December 31, 2020 were $56.2 million and $ 56.6 million in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2021 were $0.8 million and $66.6 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2020 were $ 0.7 million and $ 66.8 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The Company entered into two multi-year lease agreements governing the occupancy of space of two buildings in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company assumed occupancy in 2012 and the leases expire in 2027 with the Company having one 10-year option to extend the lease term. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the leases are operating leases. Operating lease cost recognized for the three months ended March 31, 2021 and 2020 was $0.9 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2021 and December 31, 2020 were $19.1 million and $19.7 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2021 were $2.5 million and $16.6 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2020 were $2.4 million and $17.2 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. Travel Services The Company incurs expenses for travel services for company executives provided by private aviation charter companies which in 2020 was a company owned by the chief executive officer and the executive vice president of operations of the Company and commencing in 2021 is a company controlled by the chief executive officer of the Company (each a “private aviation charter”). The Company may contract directly with the private aviation charter for the use of its aircraft or indirectly through a third party aircraft management and jet charter company (the “Aircraft Management Company”). The travel services provided are primarily for business purposes, with certain personal travel paid for as part of the executives’ compensation arrangements. The Aircraft Management Company also makes the private aviation charter aircraft available to third parties. The Company incurred travel expenses of $0.1 million and $0.2 million during the three months ended March 31, 2021 and 2020, respectively, related to these travel services. These travel expenses are recorded in Selling, general and administrative in the Company’s condensed consolidated statements of operations. |
Entity Wide Disclosures
Entity Wide Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Entity Wide Disclosures [Abstract] | |
Entity Wide Disclosures | (13) Entity Wide Disclosures Revenue by Category The following table disaggregates our revenue by major source (in thousands): Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Therapeutic Area 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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 |
Share Repurchases | Share Repurchases In the first quarter of 2018, the Board of Directors approved a share repurchase program authorizing up to $50.0 million in share repurchases. In the first quarter of 2020, the Board of Directors approved an increase in the stock repurchase authorization by $50.0 million. In the fourth quarter of 2020, the Board approved the stock repurchase authorization up to $150.0 million. During the quarter ended March 31, 2020, the Company repurchased 661,637 shares for $43.2 million. As of March 31, 2021, we have remaining authorization of $102.6 million remaining under the repurchase program. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retired the repurchased shares associated with these approved share repurchases, with all amounts paid in excess of par value reflected within Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. Supplemental Cash Flow Disclosure During the three months ended March 31, 2020, the company engaged in a non-cash financing activity of $1.4 million related to share repurchases executed, but not yet paid as of March 31, 2020. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this standard in the first quarter of 2020 and it had no material impact to the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The new guidance includes several provisions to reduce the complexity of accounting for income taxes for financial reporting purposes and increasing consistency and clarity for financial statement readers. The new guidance is effective for public entities for fiscal years, and the related interim periods, beginning after December 15, 2020. The Company adopted this standard in the first quarter of 2021 and it has no material impact on the condensed consolidated financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS | The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2021 and 2020 (in thousands, except for earnings per share): Three Months Ended March 31, 2021 2020 Weighted-average shares: Common shares outstanding 35,753 36,024 RSAs 116 95 Total weighted-average shares 35,869 36,119 Earnings per common share—Basic Net income $ 43,306 $ 28,954 Less: Undistributed earnings allocated to RSAs 140 76 Net income available to common shareholders—Basic $ 43,166 $ 28,878 Net income per common share—Basic $ 1.21 $ 0.80 Basic weighted-average common shares outstanding 35,753 36,024 Effect of diluted shares 1,996 2,006 Diluted weighted-average shares outstanding 37,749 38,030 Net income per common share—Diluted $ 1.14 $ 0.76 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Company's Contract Asset and Contract Liability | Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Accounts receivable $ 131,918 $ 137,912 Unbilled receivables 28,425 23,396 Less: allowance for doubtful accounts (346 ) (346 ) Total accounts receivable and unbilled, net $ 159,997 $ 160,962 Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Advanced billings $ 277,807 $ 255,664 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships (131,501 ) (130,223 ) Total finite-lived intangible assets, net 13,550 14,828 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 45,196 $ 46,474 |
Schedule of Estimated Amortization Expense of Intangible Assets | As of March 31, 2021, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2021 $ 3,836 2022 3,353 2023 2,199 2024 1,443 2025 946 Later years 1,773 $ 13,550 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2021 2020 Employee compensation and benefits $ 29,004 $ 40,208 Project related reimbursable expenses 86,044 87,092 Other 8,560 7,067 Total accrued expenses $ 123,608 $ 134,367 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost $ 5,730 $ 3,768 Variable lease cost 1,704 886 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,422 $ 2,600 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,672 10,076 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2021 2020 Operating lease right-of-use assets $ 112,266 $ 113,809 Other current liabilities $ 16,111 $ 15,890 Operating lease liabilities 114,144 115,143 Total operating lease liabilities $ 130,255 $ 131,033 Weighted Average Remaining Lease Term (years) Operating leases 12.7 12.9 Weighted Average Discount Rate Operating leases 5.8 % 5.9 % |
Schedule of Lease Payments Due Related To Lease Liabilities | Lease payments due related to lease liabilities as of March 31, 2021 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2021 $ 7,892 $ 9,534 $ 17,426 2022 10,301 9,259 19,560 2023 8,771 7,957 16,728 2024 8,900 5,872 14,772 2025 9,032 4,350 13,382 Later years 103,006 9,195 112,201 Total lease payments 147,902 46,167 194,069 Less: imputed interest (58,422 ) (5,392 ) (63,814 ) Total $ 89,480 $ 40,775 $ 130,255 |
Shareholder's Equity and Stoc_2
Shareholder's Equity and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2021 Weighted Stock Options Exercise Price Outstanding - beginning of period 2,500,727 $ 43.26 Granted - $ - Exercised (406,169 ) $ 22.42 Forfeited/Expired (12,000 ) $ 57.94 Outstanding - end of period 2,082,558 $ 47.24 Exercisable - end of period 1,564,110 $ 49.66 |
Schedule of RSA/RSU Activity | The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2021 Shares/Units Outstanding and unvested - beginning of period 695,562 Granted - Vested - Forfeited (13,935 ) Outstanding and unvested - end of period 681,627 Cumulative vested shares - end of period 1,913,916 |
Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards | Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2021 2020 Total direct costs $ 2,047 $ 2,006 Selling, general and administrative 824 3,439 Total stock-based compensation expense $ 2,871 $ 5,445 |
Entity Wide Disclosures (Tables
Entity Wide Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Entity Wide Disclosures [Abstract] | |
Summary of Revenue by Major Source | The following table disaggregates our revenue by major source (in thousands): Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Therapeutic Area 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 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2018 | |
Basis Of Presentation [Line Items] | ||||
Repurchases of shares, value | $ 0 | $ 41,776,000 | ||
Share Repurchase Program | ||||
Basis Of Presentation [Line Items] | ||||
Stock repurchase program, additional amount authorized | $ 50,000,000 | |||
Repurchases of shares | 661,637 | |||
Repurchases of shares, value | $ 43,200,000 | |||
Remaining amount of repurchase program | $ 102,600,000 | |||
Non cash activity related share repurchase program | $ 1,400,000 | |||
Share Repurchase Program | Maximum | ||||
Basis Of Presentation [Line Items] | ||||
Stock repurchase program, authorized amount | $ 150,000,000 | $ 50,000,000 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 35,753 | 36,024 |
Total weighted-average shares | 35,869 | 36,119 |
Earnings per common share—Basic | ||
Net income | $ 43,306 | $ 28,954 |
Net income available to common shareholders—Basic | $ 43,166 | $ 28,878 |
Net income per common share—Basic | $ 1.21 | $ 0.80 |
Basic weighted-average common shares outstanding | 35,753 | 36,024 |
Effect of diluted shares | 1,996 | 2,006 |
Diluted weighted-average shares outstanding | 37,749 | 38,030 |
Net income per common share—Diluted | $ 1.14 | $ 0.76 |
RSAs | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 116 | 95 |
Earnings per common share—Basic | ||
Less: Undistributed earnings allocated to RSAs | $ 140 | $ 76 |
Basic weighted-average common shares outstanding | 116 | 95 |
Common Stock | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 35,753 | 36,024 |
Earnings per common share—Basic | ||
Basic weighted-average common shares outstanding | 35,753 | 36,024 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted EPS | 0 | 439,405 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurements transfers between level 1, level 2 or level 3 | $ 0 | $ 0 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities - Summary of Accounts Receivable and Unbilled, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Accounts receivable | $ 131,918 | $ 137,912 |
Unbilled receivables | 28,425 | 23,396 |
Less: allowance for doubtful accounts | (346) | (346) |
Total accounts receivable and unbilled, net | $ 159,997 | $ 160,962 |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities - Summary of Advanced Billings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Advanced billings | $ 277,807 | $ 255,664 |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities - Additional Information (Details) $ in Billions | Mar. 31, 2021USD ($) |
Revenue From Contract With Customer [Abstract] | |
Performance obligations remaining to be performed | $ 1.8 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accumulated amortization: | ||
Total finite-lived intangible assets, net | $ 13,550 | $ 14,828 |
Trade name (indefinite-lived) | 31,646 | 31,646 |
Total intangible assets, net | 45,196 | 46,474 |
Customer Relationships | ||
Finite-lived intangible assets: | ||
Total finite-lived intangible assets | 145,051 | 145,051 |
Accumulated amortization: | ||
Total accumulated amortization | $ (131,501) | $ (130,223) |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 3,836 | |
2022 | 3,353 | |
2023 | 2,199 | |
2024 | 1,443 | |
2025 | 946 | |
Later years | 1,773 | |
Total finite-lived intangible assets, net | $ 13,550 | $ 14,828 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Employee compensation and benefits | $ 29,004 | $ 40,208 |
Project related reimbursable expenses | 86,044 | 87,092 |
Other | 8,560 | 7,067 |
Total accrued expenses | $ 123,608 | $ 134,367 |
Debt - Additional Information (
Debt - Additional Information (Details) - Credit Facility - USD ($) | Sep. 30, 2019 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt instrument, basis points | 1.00% | |
Outstanding borrowings | $ 0 | |
Outstanding letters of credit | $ 200,000 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 50,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate and Equipment | |
Lessee Lease Description [Line Items] | |
Lease renewal term, operating lease | 20 years |
Description of option to extend the lease | Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. |
Operating lease, existense of option to extend | true |
Description of option to terminate the lease | Many leases also include options to terminate the leases within 1 year or per other contractual terms. |
Lessee, operating lease, existence of option to terminate | true |
Real Estate and Equipment | Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease, options to terminate lease term | 1 year |
Real Estate | Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 1 year |
Real Estate | Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 19 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 5,730 | $ 3,768 |
Variable lease cost | $ 1,704 | $ 886 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 3,422 | $ 2,600 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 2,672 | $ 10,076 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets And Liabilities Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 112,266 | $ 113,809 |
Other current liabilities | $ 16,111 | $ 15,890 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating lease liabilities | $ 114,144 | $ 115,143 |
Total operating lease liabilities | $ 130,255 | $ 131,033 |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 12 years 8 months 12 days | 12 years 10 months 24 days |
Weighted Average Discount Rate | ||
Operating leases | 5.80% | 5.90% |
Leases - Schedule of Lease Paym
Leases - Schedule of Lease Payments Due Related To Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2021 | $ 17,426 | |
2022 | 19,560 | |
2023 | 16,728 | |
2024 | 14,772 | |
2025 | 13,382 | |
Later years | 112,201 | |
Total lease payments | 194,069 | |
Less: imputed interest | (63,814) | |
Total | 130,255 | $ 131,033 |
Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2021 | 7,892 | |
2022 | 10,301 | |
2023 | 8,771 | |
2024 | 8,900 | |
2025 | 9,032 | |
Later years | 103,006 | |
Total lease payments | 147,902 | |
Less: imputed interest | (58,422) | |
Total | 89,480 | |
Non-Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2021 | 9,534 | |
2022 | 9,259 | |
2023 | 7,957 | |
2024 | 5,872 | |
2025 | 4,350 | |
Later years | 9,195 | |
Total lease payments | 46,167 | |
Less: imputed interest | (5,392) | |
Total | $ 40,775 |
Shareholder's Equity and Stoc_3
Shareholder's Equity and Stock-Based Compensation - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 0 | |
2016 Incentive Award Plan | Granted to Employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted to employees | 0 | 312,897 |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Awards (RSA) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares granted | 20,724 | |
Award vesting period | 4 years | |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Units (RSU) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares granted | 92,768 | |
Award vesting period | 4 years | |
2016 Incentive Award Plan | Fully-vested Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 199,405 |
Shareholder's Equity and Stoc_4
Shareholder's Equity and Stock-Based Compensation - Schedule of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Equity [Abstract] | |
Number of Stock Options, Outstanding - beginning of period | shares | 2,500,727 |
Number of Stock Options, Granted | shares | 0 |
Number of Stock Options, Exercised | shares | (406,169) |
Number of Stock Options, Forfeited/Expired | shares | (12,000) |
Number of Stock Options, Outstanding - end of period | shares | 2,082,558 |
Number of Stock Options, Exercisable - end of period | shares | 1,564,110 |
Weighted Average Exercise Price, Outstanding - beginning of Period | $ / shares | $ 43.26 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Exercised | $ / shares | 22.42 |
Weighted Average Exercise Price, Forfeited/Expired | $ / shares | 57.94 |
Weighted Average Exercise Price, Outstanding - end of period | $ / shares | 47.24 |
Weighted Average Exercise Price, Exercisable - end of period | $ / shares | $ 49.66 |
Shareholder's Equity and Stoc_5
Shareholder's Equity and Stock-Based Compensation - Schedule of RSA/RSU Activity (Details) - RSA/RSU | 3 Months Ended |
Mar. 31, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding and unvested - beginning of period | 695,562 |
Granted | 0 |
Vested | 0 |
Forfeited | (13,935) |
Outstanding and unvested - end of period | 681,627 |
Cumulative vested shares - end of period | 1,913,916 |
Shareholder's Equity and Stoc_6
Shareholder's Equity and Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 2,871 | $ 5,445 |
Total Direct Costs | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2,047 | 2,006 |
Selling, General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 824 | $ 3,439 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 10.70% | 20.60% |
U.S. statutory rate | 21.00% | 21.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum purchase commitments for project related supplies | $ 12.6 |
Minimum purchase commitments, description | The Company has several minimum purchase commitments for project related supplies totaling $12.6 million as of March 31, 2021. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2027. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)RenewalOptionAgreementBuilding | Mar. 31, 2020USD ($) | Dec. 31, 2018RenewalOptionAgreement | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||
Advanced billings | $ 6,100 | $ 6,500 | ||
Accounts receivable and unbilled, net | 2,200 | 2,600 | ||
Operating lease cost recognized | 5,730 | $ 3,768 | ||
Operating lease right-of-use assets | 112,266 | 113,809 | ||
Current portion of lease liability | 16,111 | 15,890 | ||
Long-term portion of lease liabilities | 114,144 | 115,143 | ||
Employee Loans | Prepaid Expenses and Other Current Assets and Other Assets | ||||
Related Party Transaction [Line Items] | ||||
Employee advances receivables | 200 | 200 | ||
Service Agreements | LIB | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 600 | 700 | ||
Accounts receivable and unbilled, net | 100 | 300 | ||
Service Agreements | LIB | Revenue Net | ||||
Related Party Transaction [Line Items] | ||||
Revenue with related parties | 500 | 1,000 | ||
Service Agreements | CinRx Pharma and Subsidiaries | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 5,500 | 5,800 | ||
Accounts receivable and unbilled, net | 2,000 | 2,200 | ||
Service Agreements | CinRx Pharma and Subsidiaries | Revenue Net | ||||
Related Party Transaction [Line Items] | ||||
Revenue with related parties | 4,800 | 4,400 | ||
Service Agreements | The Summit | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred | $ 100 | 200 | ||
Leased Real Estate | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Term of lease | 12 years | |||
Lease expiration period | 2022-11 | |||
Number of lease renewal, 10-year option | RenewalOption | 1 | |||
Lease term upon renewal | 10 years | |||
Leased Real Estate | Chief Executive Officer | Office Space | ||||
Related Party Transaction [Line Items] | ||||
Number of lease renewal, 10-year option | RenewalOption | 2 | |||
Lease term upon renewal | 10 years | |||
Current portion of lease liability | 700 | |||
Long-term portion of lease liabilities | 66,800 | |||
Lease expiration year | 2040 | |||
Number of lease agreements | Agreement | 1 | |||
Leased Real Estate | Chief Executive Officer | Direct Costs and Selling, General And Administrative | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | $ 500 | 500 | ||
Leased Real Estate | Chief Executive Officer | Direct Costs and Selling, General And Administrative | Office Space | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | $ 1,400 | |||
Leased Real Estate | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Number of lease renewal, 10-year option | RenewalOption | 1 | |||
Lease term upon renewal | 10 years | |||
Lease expiration year | 2027 | |||
Number of lease agreements | Agreement | 2 | |||
Number of buildings | Building | 2 | |||
Lease occupancy year | 2012 | |||
Leased Real Estate | Chief Executive Officer And Immediate Family | Direct Costs and Selling, General And Administrative | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | $ 900 | 900 | ||
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 3,000 | 3,500 | ||
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer | Office Space | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 56,200 | 56,600 | ||
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 19,100 | 19,700 | ||
Leased Real Estate | Other Current Liabilities | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Current portion of lease liability | 1,900 | 1,900 | ||
Leased Real Estate | Other Current Liabilities | Chief Executive Officer | Office Space | ||||
Related Party Transaction [Line Items] | ||||
Current portion of lease liability | 800 | |||
Leased Real Estate | Other Current Liabilities | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Current portion of lease liability | 2,500 | 2,400 | ||
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Long-term portion of lease liabilities | 1,100 | 1,600 | ||
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer | Office Space | ||||
Related Party Transaction [Line Items] | ||||
Long-term portion of lease liabilities | 66,600 | |||
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Long-term portion of lease liabilities | 16,600 | $ 17,200 | ||
Travel Services | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Travel expenses with related party | $ 100 | $ 200 |
Entity Wide Disclosures - Summa
Entity Wide Disclosures - Summary of Revenue by Major Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 259,965 | $ 230,879 |
Oncology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 79,138 | 69,212 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 68,938 | 50,569 |
Metabolic | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 32,495 | 36,075 |
AVAI | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 30,820 | 25,147 |
Central Nervous System | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 24,812 | 23,977 |
Cardiology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 23,762 | 25,899 |
Revenue Net | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 259,965 | $ 230,879 |