(State or other jurisdiction of incorporation) | (Commission file number) | (IRS employer identification no.) |
(Address of principal executive offices) | (Zip code) |
Registrant's telephone number, including area code: | |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||||||||
Number | Title | ||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CRA INTERNATIONAL, INC. | ||||||||
Dated: | By: | /s/ DANIEL K. MAHONEY | ||||||
Daniel K. Mahoney | ||||||||
Chief Financial Officer, Executive Vice President and Treasurer |
Contacts: | |||||||||||
Dan Mahoney | Nicholas Manganaro | ||||||||||
Chief Financial Officer | Sharon Merrill Associates, Inc. | ||||||||||
Charles River Associates | crai@investorrelations.com | ||||||||||
617-425-3505 | 617-542-5300 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | |||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | ||||||||||||||||||||||||||||
Costs of services (exclusive of depreciation and amortization) | 105,894 | 71.8 | % | 102,267 | 68.9 | % | 327,064 | 70.7 | % | 309,403 | 69.4 | % | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 27,919 | 18.9 | % | 28,246 | 19.0 | % | 86,137 | 18.6 | % | 82,026 | 18.4 | % | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,947 | 2.0 | % | 3,034 | 2.0 | % | 8,762 | 1.9 | % | 9,060 | 2.0 | % | ||||||||||||||||||||||||||||||||
Income from operations | 10,793 | 7.3 | % | 14,894 | 10.0 | % | 40,400 | 8.7 | % | 45,436 | 10.2 | % | ||||||||||||||||||||||||||||||||
Interest expense, net | (1,025) | -0.7 | % | (667) | -0.4 | % | (3,212) | -0.7 | % | (1,343) | -0.3 | % | ||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | 755 | 0.5 | % | 1,667 | 1.1 | % | (459) | -0.1 | % | 3,566 | 0.8 | % | ||||||||||||||||||||||||||||||||
Income before provision for income taxes | 10,523 | 7.1 | % | 15,894 | 10.7 | % | 36,729 | 7.9 | % | 47,659 | 10.7 | % | ||||||||||||||||||||||||||||||||
Provision for income taxes | 1,927 | 1.3 | % | 4,017 | 2.7 | % | 9,707 | 2.1 | % | 12,713 | 2.9 | % | ||||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | ||||||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.66 | $ | 3.83 | $ | 4.81 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.21 | $ | 1.63 | $ | 3.78 | $ | 4.72 | ||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,977 | 7,119 | 7,026 | 7,247 | ||||||||||||||||||||||||||||||||||||||||
Diluted | 7,083 | 7,246 | 7,138 | 7,376 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | 52 | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | 22 | — | % | 233 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | (755) | -0.5 | % | (1,667) | -1.1 | % | 459 | 0.1 | % | (3,566) | -0.8 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 166 | 0.1 | % | 329 | 0.2 | % | (138) | — | % | 647 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,023 | 5.4 | % | $ | 10,569 | 7.1 | % | $ | 27,417 | 5.9 | % | $ | 32,260 | 7.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.14 | $ | 1.48 | $ | 3.89 | $ | 4.44 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.13 | $ | 1.45 | $ | 3.83 | $ | 4.36 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,977 | 7,119 | 7,026 | 7,247 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,083 | 7,246 | 7,138 | 7,376 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | 52 | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | 22 | — | % | 233 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | (755) | -0.5 | % | (1,667) | -1.1 | % | 459 | 0.1 | % | (3,566) | -0.8 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 166 | 0.1 | % | 329 | 0.2 | % | (138) | — | % | 647 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,023 | 5.4 | % | $ | 10,569 | 7.1 | % | $ | 27,417 | 5.9 | % | $ | 32,260 | 7.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1,025 | 0.7 | % | 667 | 0.4 | % | 3,212 | 0.7 | % | 1,343 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,761 | 1.2 | % | 3,688 | 2.5 | % | 9,845 | 2.1 | % | 12,066 | 2.7 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,947 | 2.0 | % | 3,034 | 2.0 | % | 8,762 | 1.9 | % | 9,060 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 13,756 | 9.3 | % | $ | 17,958 | 12.1 | % | $ | 49,236 | 10.6 | % | $ | 54,729 | 12.3 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 27,604 | $ | 31,447 | |||||||
Accounts receivable and unbilled services, net | 193,321 | 194,987 | |||||||||
Other current assets | 27,777 | 22,426 | |||||||||
Total current assets | 248,702 | 248,860 | |||||||||
Property and equipment, net | 39,963 | 45,582 | |||||||||
Goodwill and intangible assets, net | 101,008 | 101,510 | |||||||||
Right-of-use assets | 88,871 | 96,725 | |||||||||
Other assets | 60,501 | 58,240 | |||||||||
Total assets | $ | 539,045 | $ | 550,917 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 24,711 | $ | 27,584 | |||||||
Accrued expenses | 137,920 | 155,864 | |||||||||
Current portion of lease liabilities | 16,193 | 15,972 | |||||||||
Revolving line of credit | 32,000 | — | |||||||||
Other current liabilities | 13,424 | 17,705 | |||||||||
Total current liabilities | 224,248 | 217,125 | |||||||||
Non-current portion of lease liabilities | 95,406 | 106,008 | |||||||||
Other non-current liabilities | 11,433 | 16,630 | |||||||||
Total liabilities | 331,087 | 339,763 | |||||||||
Total shareholders’ equity | 207,958 | 211,154 | |||||||||
Total liabilities and shareholders’ equity | $ | 539,045 | $ | 550,917 |
Fiscal Year-to-Date Period Ended | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | 27,022 | $ | 34,946 | |||||||
Adjustments to reconcile net income to net cash used in operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 21,542 | 21,723 | |||||||||
Accounts receivable and unbilled services | 1,559 | (48,853) | |||||||||
Working capital items, net | (50,150) | (42,831) | |||||||||
Net cash used in operating activities | (27) | (35,015) | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment, net | (2,008) | (2,999) | |||||||||
Consideration paid for acquisition, net | (577) | (10,185) | |||||||||
Net cash used in investing activities | (2,585) | (13,184) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | — | 760 | |||||||||
Borrowings under revolving line of credit | 105,000 | 124,000 | |||||||||
Repayments under revolving line of credit | (73,000) | (79,000) | |||||||||
Payments for debt issuance costs | — | (1,008) | |||||||||
Tax withholding payments reimbursed by shares | (2,040) | (1,002) | |||||||||
Cash dividends paid | (7,773) | (6,860) | |||||||||
Repurchase of common stock | (23,577) | (27,630) | |||||||||
Net cash provided by (used in) financing activities | (1,390) | 9,260 | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | 159 | (3,098) | |||||||||
Net decrease in cash and cash equivalents | (3,843) | (42,037) | |||||||||
Cash and cash equivalents at beginning of period | 31,447 | 66,130 | |||||||||
Cash and cash equivalents at end of period | $ | 27,604 | $ | 24,093 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (129) | $ | (201) | |||||||
Excise tax on share repurchases | $ | (190) | $ | — | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,503 | $ | 2,146 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 9,953 | $ | 11,407 | |||||||
Cash paid for interest | $ | 2,904 | $ | 1,026 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 16,660 | $ | 15,864 |
Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||||||||||||||||||
Officers | 155 | 156 | 158 | 149 | 146 | |||||||||||||||||||||||||||
Other Senior Staff | 529 | 522 | 535 | 496 | 481 | |||||||||||||||||||||||||||
Junior Staff | 330 | 293 | 279 | 294 | 284 | |||||||||||||||||||||||||||
Total | 1,014 | 971 | 972 | 939 | 911 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 27,919 | 18.9 | % | $ | 28,246 | 19.0 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 3,607 | 2.4 | % | 4,773 | 3.2 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 24,312 | 16.5 | % | $ | 23,473 | 15.8 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||
Income from operations | $ | 10,793 | 7.3 | % | $ | 14,894 | 10.0 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 10,809 | 7.3 | % | $ | 14,924 | 10.1 | % |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||
$ in 000’s | September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||||
Tax Provision | $ | 1,927 | $ | 4,017 | $ | 1,761 | $ | 3,688 | ||||||||||||||||||
Effective Tax Rate | 18.3 | % | 25.3 | % | 18.0 | % | 25.9 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||
Income before provision for income taxes | $ | 10,523 | 7.1 | % | $ | 15,894 | 10.7 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | ||||||||||||||||||||
Foreign currency (gains) losses, net | (755) | (0.5) | % | (1,667) | (1.1) | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 9,784 | 6.6 | % | $ | 14,257 | 9.6 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 1,927 | $ | 4,017 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | (166) | (329) | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 1,761 | $ | 3,688 |
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q3 | Q2 | Q1 | Q4 | |||||||||||||||||||||||||||
($ in 000’s) | Q3 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 60,109 | $ | 64,952 | $ | 5,072 | $ | (70,051) | $ | 60,136 | ||||||||||||||||||||||
Net cash used in investing activities | (7,566) | (733) | (720) | (1,132) | (4,981) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (49,602) | (50,574) | (25,664) | 74,848 | (48,212) | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 570 | (312) | 64 | 407 | 411 | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 3,511 | $ | 13,333 | $ | (21,248) | $ | 4,072 | $ | 7,354 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 24,093 | 14,271 | 35,519 | 31,447 | 24,093 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 27,604 | $ | 27,604 | $ | 14,271 | $ | 35,519 | $ | 31,447 |
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q3 | Q2 | Q1 | Q4 | |||||||||||||||||||||||||||
($ in 000’s) | Q3 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 26,780 | $ | 43,797 | $ | (16,974) | $ | (61,838) | $ | 61,795 | ||||||||||||||||||||||
Net cash used in investing activities | (14,077) | (932) | (267) | (11,985) | (893) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (4,913) | (32,840) | (10,011) | 52,111 | (14,173) | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | (3,362) | (1,553) | (829) | (716) | (264) | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 4,428 | $ | 8,472 | $ | (28,081) | $ | (22,428) | $ | 46,465 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 19,665 | 15,621 | 43,702 | 66,130 | 19,665 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 24,093 | $ | 24,093 | $ | 15,621 | $ | 43,702 | $ | 66,130 |
Adjusted Net Cash Flows from Operations | LTM | Q3 | Q2 | Q1 | Q4 | |||||||||||||||||||||||||||
($ in 000’s) | Q3 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 60,109 | $ | 64,952 | $ | 5,072 | $ | (70,051) | $ | 60,136 | ||||||||||||||||||||||
Forgivable loan advances | 30,859 | 3,750 | 750 | 16,842 | 9,517 | |||||||||||||||||||||||||||
Forgivable loan repayments | (616) | — | — | (616) | — | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 91 | — | — | 22 | 69 | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 90,443 | $ | 68,702 | $ | 5,822 | $ | (53,803) | $ | 69,722 | ||||||||||||||||||||||
Net revenue | $ | 607,339 | $ | 147,553 | $ | 161,965 | $ | 152,845 | $ | 144,976 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 9.9 | % | 44.0 | % | 3.1 | % | (45.8) | % | 41.5 | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 14.9 | % | 46.6 | % | 3.6 | % | (35.2) | % | 48.1 | % |
Adjusted Net Cash Flows from Operations | LTM | Q3 | Q2 | Q1 | Q4 | |||||||||||||||||||||||||||
($ in 000’s) | Q3 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 26,780 | $ | 43,797 | $ | (16,974) | $ | (61,838) | $ | 61,795 | ||||||||||||||||||||||
Forgivable loan advances | 30,360 | 3,313 | 13,354 | 8,800 | 4,893 | |||||||||||||||||||||||||||
Forgivable loan repayments | (94) | — | (25) | — | (69) | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 233 | 30 | 92 | 111 | — | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 57,279 | $ | 47,140 | $ | (3,553) | $ | (52,927) | $ | 66,619 | ||||||||||||||||||||||
Net revenue | $ | 580,691 | $ | 148,441 | $ | 149,102 | $ | 148,382 | $ | 134,766 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 4.6 | % | 29.5 | % | (11.4) | % | (41.7) | % | 45.9 | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 9.9 | % | 31.8 | % | (2.4) | % | (35.7) | % | 49.4 | % |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | |||||||||||||||||||||||||||||||
Costs of services (exclusive of depreciation and amortization) | 105,894 | 71.8 | % | 102,267 | 68.9 | % | 327,064 | 70.7 | % | 309,403 | 69.4 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 27,919 | 18.9 | % | 28,246 | 19.0 | % | 86,137 | 18.6 | % | 82,026 | 18.4 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,947 | 2.0 | % | 3,034 | 2.0 | % | 8,762 | 1.9 | % | 9,060 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 10,793 | 7.3 | % | 14,894 | 10.0 | % | 40,400 | 8.7 | % | 45,436 | 10.2 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (1,025) | -0.7 | % | (667) | -0.4 | % | (3,212) | -0.7 | % | (1,343) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | 755 | 0.5 | % | 1,667 | 1.1 | % | (459) | -0.1 | % | 3,566 | 0.8 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 10,523 | 7.1 | % | 15,894 | 10.7 | % | 36,729 | 7.9 | % | 47,659 | 10.7 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,927 | 1.3 | % | 4,017 | 2.7 | % | 9,707 | 2.1 | % | 12,713 | 2.9 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.66 | $ | 3.83 | $ | 4.81 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.21 | $ | 1.63 | $ | 3.78 | $ | 4.72 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,977 | 7,119 | 7,026 | 7,247 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,083 | 7,246 | 7,138 | 7,376 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | 52 | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | 22 | — | % | 233 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | (755) | -0.5 | % | (1,667) | -1.1 | % | 459 | 0.1 | % | (3,566) | -0.8 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 166 | 0.1 | % | 329 | 0.2 | % | (138) | — | % | 647 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,023 | 5.4 | % | $ | 10,569 | 7.1 | % | $ | 27,417 | 5.9 | % | $ | 32,260 | 7.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.14 | $ | 1.48 | $ | 3.89 | $ | 4.44 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.13 | $ | 1.45 | $ | 3.83 | $ | 4.36 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,977 | 7,119 | 7,026 | 7,247 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,083 | 7,246 | 7,138 | 7,376 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | September 30, 2023 | As a % of Revenue | October 1, 2022 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 147,553 | 100.0 | % | $ | 148,441 | 100.0 | % | $ | 462,363 | 100.0 | % | $ | 445,925 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,596 | 5.8 | % | $ | 11,877 | 8.0 | % | $ | 27,022 | 5.8 | % | $ | 34,946 | 7.8 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | 16 | — | % | — | — | % | 52 | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 30 | — | % | 22 | — | % | 233 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | (755) | -0.5 | % | (1,667) | -1.1 | % | 459 | 0.1 | % | (3,566) | -0.8 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 166 | 0.1 | % | 329 | 0.2 | % | (138) | — | % | 647 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,023 | 5.4 | % | $ | 10,569 | 7.1 | % | $ | 27,417 | 5.9 | % | $ | 32,260 | 7.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1,025 | 0.7 | % | 667 | 0.4 | % | 3,212 | 0.7 | % | 1,343 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,761 | 1.2 | % | 3,688 | 2.5 | % | 9,845 | 2.1 | % | 12,066 | 2.7 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,947 | 2.0 | % | 3,034 | 2.0 | % | 8,762 | 1.9 | % | 9,060 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 13,756 | 9.3 | % | $ | 17,958 | 12.1 | % | $ | 49,236 | 10.6 | % | $ | 54,729 | 12.3 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 27,604 | $ | 31,447 | |||||||
Accounts receivable and unbilled services, net | 193,321 | 194,987 | |||||||||
Other current assets | 27,777 | 22,426 | |||||||||
Total current assets | 248,702 | 248,860 | |||||||||
Property and equipment, net | 39,963 | 45,582 | |||||||||
Goodwill and intangible assets, net | 101,008 | 101,510 | |||||||||
Right-of-use assets | 88,871 | 96,725 | |||||||||
Other assets | 60,501 | 58,240 | |||||||||
Total assets | $ | 539,045 | $ | 550,917 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 24,711 | $ | 27,584 | |||||||
Accrued expenses | 137,920 | 155,864 | |||||||||
Current portion of lease liabilities | 16,193 | 15,972 | |||||||||
Revolving line of credit | 32,000 | — | |||||||||
Other current liabilities | 13,424 | 17,705 | |||||||||
Total current liabilities | 224,248 | 217,125 | |||||||||
Non-current portion of lease liabilities | 95,406 | 106,008 | |||||||||
Other non-current liabilities | 11,433 | 16,630 | |||||||||
Total liabilities | 331,087 | 339,763 | |||||||||
Total shareholders’ equity | 207,958 | 211,154 | |||||||||
Total liabilities and shareholders’ equity | $ | 539,045 | $ | 550,917 |
Fiscal Year-to-Date Period Ended | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | 27,022 | $ | 34,946 | |||||||
Adjustments to reconcile net income to net cash used in operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 21,542 | 21,723 | |||||||||
Accounts receivable and unbilled services | 1,559 | (48,853) | |||||||||
Working capital items, net | (50,150) | (42,831) | |||||||||
Net cash used in operating activities | (27) | (35,015) | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment, net | (2,008) | (2,999) | |||||||||
Consideration paid for acquisition, net | (577) | (10,185) | |||||||||
Net cash used in investing activities | (2,585) | (13,184) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | — | 760 | |||||||||
Borrowings under revolving line of credit | 105,000 | 124,000 | |||||||||
Repayments under revolving line of credit | (73,000) | (79,000) | |||||||||
Payments for debt issuance costs | — | (1,008) | |||||||||
Tax withholding payments reimbursed by shares | (2,040) | (1,002) | |||||||||
Cash dividends paid | (7,773) | (6,860) | |||||||||
Repurchase of common stock | (23,577) | (27,630) | |||||||||
Net cash provided by (used in) financing activities | (1,390) | 9,260 | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | 159 | (3,098) | |||||||||
Net decrease in cash and cash equivalents | (3,843) | (42,037) | |||||||||
Cash and cash equivalents at beginning of period | 31,447 | 66,130 | |||||||||
Cash and cash equivalents at end of period | $ | 27,604 | $ | 24,093 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (129) | $ | (201) | |||||||
Excise tax on share repurchases | $ | (190) | $ | — | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,503 | $ | 2,146 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 9,953 | $ | 11,407 | |||||||
Cash paid for interest | $ | 2,904 | $ | 1,026 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 16,660 | $ | 15,864 |
Contacts: | |||||||||||
Dan Mahoney | Nicholas Manganaro | ||||||||||
Chief Financial Officer | Sharon Merrill Associates, Inc. | ||||||||||
Charles River Associates | crai@investorrelations.com | ||||||||||
617-425-3505 | 617-542-5300 |
Cover |
Nov. 02, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 02, 2023 |
Entity Registrant Name | CRA INTERNATIONAL, INC. |
Entity Incorporation, State or Country Code | MA |
Entity File Number | 000-24049 |
Entity Tax Identification Number | 04-2372210 |
Entity Address, Address Line One | 200 Clarendon Street, |
Entity Address, City or Town | Boston, |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02116 |
City Area Code | (617) |
Local Phone Number | 425-3000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, no par value |
Trading Symbol | CRAI |
Security Exchange Name | NASDAQ |
Entity Central Index Key | 0001053706 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
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