Massachusetts | 000-24049 | 04-2372210 | ||||||
(State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification no.) |
200 Clarendon Street | Boston, | Massachusetts | 02116 | ||||||||||||||
(Address of principal executive offices) | (Zip code) |
Registrant's telephone number, including area code: | (617) | 425-3000 |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, no par value | CRAI | Nasdaq Global Select Market |
Number | Title | ||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CRA INTERNATIONAL, INC. | ||||||||
Dated: March 2, 2023 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | 100,678 | 69.4 | % | 93,658 | 69.5 | % | 410,081 | 69.4 | % | 400,054 | 70.7 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 28,060 | 19.4 | % | 25,633 | 19.0 | % | 110,087 | 18.6 | % | 97,372 | 17.2 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,936 | 2.0 | % | 3,111 | 2.3 | % | 11,996 | 2.0 | % | 12,768 | 2.3 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 13,302 | 9.2 | % | 12,364 | 9.2 | % | 58,737 | 9.9 | % | 55,739 | 9.8 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (484) | -0.3 | % | (179) | -0.1 | % | (1,826) | -0.3 | % | (970) | -0.2 | % | |||||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | (1,677) | -1.2 | % | (241) | -0.2 | % | 1,889 | 0.3 | % | (494) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 11,141 | 7.7 | % | 11,944 | 8.9 | % | 58,800 | 10.0 | % | 54,275 | 9.6 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 2,468 | 1.7 | % | 3,277 | 2.4 | % | 15,181 | 2.6 | % | 12,596 | 2.2 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.21 | $ | 1.17 | $ | 6.02 | $ | 5.59 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.19 | $ | 1.14 | $ | 5.91 | $ | 5.45 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 7,129 | 7,373 | 7,218 | 7,423 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,293 | 7,555 | 7,355 | 7,621 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | — | — | % | — | — | % | 380 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | 302 | 0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (18) | — | % | — | — | % | (80) | — | % | (103) | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,724 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,841 | 7.4 | % | $ | 41,956 | 7.4 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.17 | $ | 6.05 | $ | 5.63 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.19 | $ | 1.14 | $ | 5.94 | $ | 5.49 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 7,129 | 7,373 | 7,218 | 7,423 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,293 | 7,555 | 7,355 | 7,621 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | — | — | % | — | — | % | 380 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | 302 | 0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (18) | — | % | — | — | % | (80) | — | % | (103) | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,724 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,841 | 7.4 | % | $ | 41,956 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 484 | 0.3 | % | 179 | 0.1 | % | 1,826 | 0.3 | % | 970 | 0.2 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 2,486 | 1.7 | % | 3,277 | 2.4 | % | 15,261 | 2.6 | % | 12,699 | 2.2 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,936 | 2.0 | % | 3,111 | 2.3 | % | 11,996 | 2.0 | % | 12,768 | 2.3 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 14,630 | 10.1 | % | $ | 15,234 | 11.3 | % | $ | 72,924 | 12.3 | % | $ | 68,393 | 12.1 | % |
December 31, 2022 |
January 1, 2022 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 31,447 | $ | 66,130 | |||||||
Accounts receivable and unbilled services, net | 194,987 | 162,057 | |||||||||
Other current assets | 22,426 | 21,160 | |||||||||
Total current assets | 248,860 | 249,347 | |||||||||
Property and equipment, net | 45,582 | 53,612 | |||||||||
Goodwill and intangible assets, net | 101,510 | 93,117 | |||||||||
Right-of-use assets | 96,725 | 110,475 | |||||||||
Other assets | 58,240 | 48,809 | |||||||||
Total assets | $ | 550,917 | $ | 555,360 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 27,584 | $ | 23,511 | |||||||
Accrued expenses | 155,864 | 156,314 | |||||||||
Current portion of lease liabilities | 15,972 | 14,337 | |||||||||
Other current liabilities | 17,705 | 18,924 | |||||||||
Total current liabilities | 217,125 | 213,086 | |||||||||
Non-current portion of lease liabilities | 106,008 | 124,464 | |||||||||
Other non-current liabilities | 16,630 | 11,976 | |||||||||
Total liabilities | 339,763 | 349,526 | |||||||||
Total shareholders’ equity | 211,154 | 205,834 | |||||||||
Total liabilities and shareholders’ equity | $ | 550,917 | $ | 555,360 |
Year Ended | |||||||||||
December 31, 2022 |
January 1, 2022 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 43,619 | $ | 41,679 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 30,490 | 30,044 | |||||||||
Accounts receivable and unbilled services | (30,311) | (10,452) | |||||||||
Working capital items, net | (18,677) | 14,427 | |||||||||
Net cash provided by operating activities | 25,121 | 75,698 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (3,813) | (2,623) | |||||||||
Consideration paid for acquisitions, net | (14,352) | — | |||||||||
Net cash used in investing activities | (18,165) | (2,623) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | 1,411 | 5,157 | |||||||||
Borrowings under revolving line of credit | 126,000 | 74,000 | |||||||||
Repayments under revolving line of credit | (126,000) | (74,000) | |||||||||
Payments for debt issuance costs | (1,008) | — | |||||||||
Tax withholding payments reimbursed by shares | (2,145) | (1,528) | |||||||||
Cash paid for contingent consideration | — | (2,357) | |||||||||
Cash dividends paid | (9,580) | (8,289) | |||||||||
Repurchase of common stock | (27,630) | (44,976) | |||||||||
Net cash used in financing activities | (38,952) | (51,993) | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | (2,687) | (629) | |||||||||
Net increase (decrease) in cash and cash equivalents | (34,683) | 20,453 | |||||||||
Cash and cash equivalents at beginning of period | 66,130 | 45,677 | |||||||||
Cash and cash equivalents at end of period | $ | 31,447 | $ | 66,130 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (268) | $ | 8 | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,436 | $ | 1,751 | |||||||
Restricted common stock issued for contingent consideration | $ | — | $ | 2,250 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 15,646 | $ | 14,953 | |||||||
Cash paid for interest | $ | 1,579 | $ | 727 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 21,306 | $ | 20,823 |
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
||||||||||||||||||||||||||||
Officers | 149 | 146 | 145 | 146 | 140 | |||||||||||||||||||||||||||
Other Senior Staff | 496 | 481 | 475 | 505 | 477 | |||||||||||||||||||||||||||
Junior Staff | 294 | 284 | 243 | 227 | 244 | |||||||||||||||||||||||||||
Total | 939 | 911 | 863 | 878 | 861 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue | January 1, 2022 |
As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 28,060 | 19.4 | % | $ | 25,633 | 19.0 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 3,809 | 2.6 | % | 3,880 | 2.9 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 24,251 | 16.7 | % | $ | 21,753 | 16.1 | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue | January 1, 2022 |
As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 110,087 | 18.6 | % | $ | 97,372 | 17.2 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 18,295 | 3.1 | % | 16,803 | 3.0 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 91,792 | 15.5 | % | $ | 80,569 | 14.2 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income from operations | $ | 13,302 | 9.2 | % | $ | 12,364 | 9.2 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 13,371 | 9.2 | % | $ | 12,364 | 9.2 | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income from operations | $ | 58,737 | 9.9 | % | $ | 55,739 | 9.8 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 380 | 0.1 | % | ||||||||||||||||||||
Acquisition-related costs | 302 | 0.1 | % | — | — | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 59,039 | 10.0 | % | $ | 56,119 | 9.9 | % |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
January 1, 2022 |
December 31, 2022 |
January 1, 2022 |
||||||||||||||||||||||
Tax Provision | $ | 2,468 | $ | 3,277 | $ | 2,486 | $ | 3,277 | ||||||||||||||||||
Effective Tax Rate | 22.2 | % | 27.4 | % | 22.2 | % | 27.4 | % |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
January 1, 2022 |
December 31, 2022 |
January 1, 2022 |
||||||||||||||||||||||
Tax Provision | $ | 15,181 | $ | 12,596 | $ | 15,261 | $ | 12,699 | ||||||||||||||||||
Effective Tax Rate | 25.8 | % | 23.2 | % | 25.8 | % | 23.2 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income before provision for income taxes | $ | 11,141 | 7.7 | % | $ | 11,944 | 8.9 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 11,210 | 7.7 | % | $ | 11,944 | 8.9 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 2,468 | $ | 3,277 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | 18 | — | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 2,486 | $ | 3,277 |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income before provision for income taxes | $ | 58,800 | 10.0 | % | $ | 54,275 | 9.6 | % | ||||||||||||||||||
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 | — | — | % | 380 | 0.1 | % | ||||||||||||||||||||
Acquisition-related costs | 302 | 0.1 | % | — | — | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 59,102 | 10.0 | % | $ | 54,655 | 9.7 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 15,181 | $ | 12,596 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | 80 | 103 | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 15,261 | $ | 12,699 |
GAAP Condensed Consolidated Statement of Cash Flows | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2022 |
2022 |
2022 |
2022 |
2022 |
|||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 25,121 | $ | 60,136 | $ | 43,797 | $ | (16,974) | $ | (61,838) | ||||||||||||||||||||||
Net cash used in investing activities | (18,165) | (4,981) | (932) | (267) | (11,985) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (38,952) | (48,212) | (32,840) | (10,011) | 52,111 | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | (2,687) | 411 | (1,553) | (829) | (716) | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (34,683) | $ | 7,354 | $ | 8,472 | $ | (28,081) | $ | (22,428) | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 66,130 | 24,093 | 15,621 | 43,702 | 66,130 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 31,447 | $ | 31,447 | $ | 24,093 | $ | 15,621 | $ | 43,702 |
GAAP Condensed Consolidated Statement of Cash Flows | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2021 |
2021 |
2021 |
2021 |
2021 |
|||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 75,698 | $ | 61,795 | $ | 50,126 | $ | 3,625 | $ | (39,848) | ||||||||||||||||||||||
Net cash used in investing activities | (2,623) | (893) | (560) | (478) | (692) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (51,993) | (14,173) | (43,428) | (20,857) | 26,465 | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | (629) | (264) | (450) | 58 | 27 | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 20,453 | $ | 46,465 | $ | 5,688 | $ | (17,652) | $ | (14,048) | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 45,677 | 19,665 | 13,977 | 31,629 | 45,677 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 66,130 | $ | 66,130 | $ | 19,665 | $ | 13,977 | $ | 31,629 |
Adjusted Net Cash Flows from Operations | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2022 |
2022 |
2022 |
2022 |
2022 |
|||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 25,121 | $ | 60,136 | $ | 43,797 | $ | (16,974) | $ | (61,838) | ||||||||||||||||||||||
Forgivable loan advances | 34,984 | 9,517 | 3,313 | 13,354 | 8,800 | |||||||||||||||||||||||||||
Forgivable loan repayments | (25) | — | — | (25) | — | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 302 | 69 | 30 | 92 | 111 | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 60,382 | $ | 69,722 | $ | 47,140 | $ | (3,553) | $ | (52,927) | ||||||||||||||||||||||
Net revenue | $ | 590,901 | $ | 144,976 | $ | 148,441 | $ | 149,102 | $ | 148,382 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 4.3 | % | 41.5 | % | 29.5 | % | (11.4) | % | (41.7) | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 10.2 | % | 48.1 | % | 31.8 | % | (2.4) | % | (35.7) | % |
Adjusted Net Cash Flows from Operations | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2021 |
2021 |
2021 |
2021 |
2021 |
|||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 75,698 | $ | 61,795 | $ | 50,126 | $ | 3,625 | $ | (39,848) | ||||||||||||||||||||||
Forgivable loan advances | 14,528 | 4,893 | 5,105 | 2,380 | 2,150 | |||||||||||||||||||||||||||
Forgivable loan repayments | (69) | (69) | — | — | — | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 10,393 | — | — | — | 10,393 | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 100,550 | $ | 66,619 | $ | 55,231 | $ | 6,005 | $ | (27,305) | ||||||||||||||||||||||
Net revenue | $ | 565,933 | $ | 134,766 | $ | 136,412 | $ | 148,237 | $ | 146,518 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 13.4 | % | 45.9 | % | 36.7 | % | 2.4 | % | (27.2) | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 17.8 | % | 49.4 | % | 40.5 | % | 4.1 | % | (18.6) | % |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | 100,678 | 69.4 | % | 93,658 | 69.5 | % | 410,081 | 69.4 | % | 400,054 | 70.7 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 28,060 | 19.4 | % | 25,633 | 19.0 | % | 110,087 | 18.6 | % | 97,372 | 17.2 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,936 | 2.0 | % | 3,111 | 2.3 | % | 11,996 | 2.0 | % | 12,768 | 2.3 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 13,302 | 9.2 | % | 12,364 | 9.2 | % | 58,737 | 9.9 | % | 55,739 | 9.8 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (484) | -0.3 | % | (179) | -0.1 | % | (1,826) | -0.3 | % | (970) | -0.2 | % | |||||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | (1,677) | -1.2 | % | (241) | -0.2 | % | 1,889 | 0.3 | % | (494) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 11,141 | 7.7 | % | 11,944 | 8.9 | % | 58,800 | 10.0 | % | 54,275 | 9.6 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 2,468 | 1.7 | % | 3,277 | 2.4 | % | 15,181 | 2.6 | % | 12,596 | 2.2 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.21 | $ | 1.17 | $ | 6.02 | $ | 5.59 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.19 | $ | 1.14 | $ | 5.91 | $ | 5.45 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 7,129 | 7,373 | 7,218 | 7,423 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,293 | 7,555 | 7,355 | 7,621 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | — | — | % | — | — | % | 380 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | 302 | 0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (18) | — | % | — | — | % | (80) | — | % | (103) | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,724 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,841 | 7.4 | % | $ | 41,956 | 7.4 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.17 | $ | 6.05 | $ | 5.63 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.19 | $ | 1.14 | $ | 5.94 | $ | 5.49 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 7,129 | 7,373 | 7,218 | 7,423 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,293 | 7,555 | 7,355 | 7,621 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
January 1, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 144,976 | 100.0 | % | $ | 134,766 | 100.0 | % | $ | 590,901 | 100.0 | % | $ | 565,933 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 8,673 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,619 | 7.4 | % | $ | 41,679 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | — | — | % | — | — | % | 380 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | 69 | — | % | — | — | % | 302 | 0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (18) | — | % | — | — | % | (80) | — | % | (103) | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 8,724 | 6.0 | % | $ | 8,667 | 6.4 | % | $ | 43,841 | 7.4 | % | $ | 41,956 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 484 | 0.3 | % | 179 | 0.1 | % | 1,826 | 0.3 | % | 970 | 0.2 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 2,486 | 1.7 | % | 3,277 | 2.4 | % | 15,261 | 2.6 | % | 12,699 | 2.2 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,936 | 2.0 | % | 3,111 | 2.3 | % | 11,996 | 2.0 | % | 12,768 | 2.3 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 14,630 | 10.1 | % | $ | 15,234 | 11.3 | % | $ | 72,924 | 12.3 | % | $ | 68,393 | 12.1 | % |
December 31, 2022 |
January 1, 2022 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 31,447 | $ | 66,130 | |||||||
Accounts receivable and unbilled services, net | 194,987 | 162,057 | |||||||||
Other current assets | 22,426 | 21,160 | |||||||||
Total current assets | 248,860 | 249,347 | |||||||||
Property and equipment, net | 45,582 | 53,612 | |||||||||
Goodwill and intangible assets, net | 101,510 | 93,117 | |||||||||
Right-of-use assets | 96,725 | 110,475 | |||||||||
Other assets | 58,240 | 48,809 | |||||||||
Total assets | $ | 550,917 | $ | 555,360 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 27,584 | $ | 23,511 | |||||||
Accrued expenses | 155,864 | 156,314 | |||||||||
Current portion of lease liabilities | 15,972 | 14,337 | |||||||||
Other current liabilities | 17,705 | 18,924 | |||||||||
Total current liabilities | 217,125 | 213,086 | |||||||||
Non-current portion of lease liabilities | 106,008 | 124,464 | |||||||||
Other non-current liabilities | 16,630 | 11,976 | |||||||||
Total liabilities | 339,763 | 349,526 | |||||||||
Total shareholders’ equity | 211,154 | 205,834 | |||||||||
Total liabilities and shareholders’ equity | $ | 550,917 | $ | 555,360 |
Year Ended | |||||||||||
December 31, 2022 |
January 1, 2022 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 43,619 | $ | 41,679 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 30,490 | 30,044 | |||||||||
Accounts receivable and unbilled services | (30,311) | (10,452) | |||||||||
Working capital items, net | (18,677) | 14,427 | |||||||||
Net cash provided by operating activities | 25,121 | 75,698 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (3,813) | (2,623) | |||||||||
Consideration paid for acquisitions, net | (14,352) | — | |||||||||
Net cash used in investing activities | (18,165) | (2,623) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | 1,411 | 5,157 | |||||||||
Borrowings under revolving line of credit | 126,000 | 74,000 | |||||||||
Repayments under revolving line of credit | (126,000) | (74,000) | |||||||||
Payments for debt issuance costs | (1,008) | — | |||||||||
Tax withholding payments reimbursed by shares | (2,145) | (1,528) | |||||||||
Cash paid for contingent consideration | — | (2,357) | |||||||||
Cash dividends paid | (9,580) | (8,289) | |||||||||
Repurchase of common stock | (27,630) | (44,976) | |||||||||
Net cash used in financing activities | (38,952) | (51,993) | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | (2,687) | (629) | |||||||||
Net increase (decrease) in cash and cash equivalents | (34,683) | 20,453 | |||||||||
Cash and cash equivalents at beginning of period | 66,130 | 45,677 | |||||||||
Cash and cash equivalents at end of period | $ | 31,447 | $ | 66,130 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (268) | $ | 8 | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,436 | $ | 1,751 | |||||||
Restricted common stock issued for contingent consideration | $ | — | $ | 2,250 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 15,646 | $ | 14,953 | |||||||
Cash paid for interest | $ | 1,579 | $ | 727 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 21,306 | $ | 20,823 |
Contacts: | |||||||||||
Dan Mahoney | Nicholas Manganaro | ||||||||||
Chief Financial Officer | Sharon Merrill Associates, Inc. | ||||||||||
Charles River Associates | crai@investorrelations.com | ||||||||||
617-425-3505 | 617-542-5300 |