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: February 29, 2024 |
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 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | 112,688 | 69.7 | % | 100,678 | 69.4 | % | 439,751 | 70.5 | % | 410,081 | 69.4 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 28,979 | 17.9 | % | 28,060 | 19.4 | % | 115,116 | 18.4 | % | 110,087 | 18.6 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,801 | 1.7 | % | 2,936 | 2.0 | % | 11,564 | 1.9 | % | 11,996 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 17,145 | 10.6 | % | 13,302 | 9.2 | % | 57,545 | 9.2 | % | 58,737 | 9.9 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (600) | -0.4 | % | (484) | -0.3 | % | (3,812) | -0.6 | % | (1,826) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | (987) | -0.6 | % | (1,677) | -1.2 | % | (1,445) | -0.2 | % | 1,889 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 15,558 | 9.6 | % | 11,141 | 7.7 | % | 52,288 | 8.4 | % | 58,800 | 10.0 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 4,099 | 2.5 | % | 2,468 | 1.7 | % | 13,807 | 2.2 | % | 15,181 | 2.6 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.65 | $ | 1.21 | $ | 5.48 | $ | 6.02 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.62 | $ | 1.19 | $ | 5.39 | $ | 5.91 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,954 | 7,129 | 7,008 | 7,218 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,057 | 7,293 | 7,118 | 7,355 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (918) | -0.6 | % | — | — | % | (866) | -0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | 22 | — | % | 302 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | 987 | 0.6 | % | 1,677 | 1.2 | % | 1,445 | 0.2 | % | (1,889) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 13 | — | % | (369) | -0.3 | % | (125) | — | % | 279 | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 11,541 | 7.1 | % | $ | 10,050 | 6.9 | % | $ | 38,957 | 6.2 | % | $ | 42,311 | 7.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.66 | $ | 1.41 | $ | 5.54 | $ | 5.84 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.63 | $ | 1.37 | $ | 5.46 | $ | 5.74 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,954 | 7,129 | 7,008 | 7,218 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,057 | 7,293 | 7,118 | 7,355 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (918) | -0.6 | % | — | — | % | (866) | -0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | 22 | — | % | 302 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | 987 | 0.6 | % | 1,677 | 1.2 | % | 1,445 | 0.2 | % | (1,889) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 13 | — | % | (369) | -0.3 | % | (125) | — | % | 279 | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 11,541 | 7.1 | % | $ | 10,050 | 6.9 | % | $ | 38,957 | 6.2 | % | $ | 42,311 | 7.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 600 | 0.4 | % | 484 | 0.3 | % | 3,812 | 0.6 | % | 1,826 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 4,086 | 2.5 | % | 2,837 | 2.0 | % | 13,932 | 2.2 | % | 14,902 | 2.5 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,801 | 1.7 | % | 2,936 | 2.0 | % | 11,564 | 1.9 | % | 11,996 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 19,028 | 11.8 | % | $ | 16,307 | 11.2 | % | $ | 68,265 | 10.9 | % | $ | 71,035 | 12.0 | % |
December 30, 2023 |
December 31, 2022 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 45,586 | $ | 31,447 | |||||||
Accounts receivable and unbilled services, net | 199,556 | 194,987 | |||||||||
Other current assets | 20,334 | 22,426 | |||||||||
Total current assets | 265,476 | 248,860 | |||||||||
Property and equipment, net | 38,176 | 45,582 | |||||||||
Goodwill and intangible assets, net | 101,185 | 101,510 | |||||||||
Right-of-use assets | 86,887 | 96,725 | |||||||||
Other assets | 61,487 | 58,240 | |||||||||
Total assets | $ | 553,211 | $ | 550,917 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 28,701 | $ | 27,584 | |||||||
Accrued expenses | 171,040 | 155,864 | |||||||||
Current portion of lease liabilities | 16,475 | 15,972 | |||||||||
Other current liabilities | 19,871 | 17,705 | |||||||||
Total current liabilities | 236,087 | 217,125 | |||||||||
Non-current portion of lease liabilities | 92,280 | 106,008 | |||||||||
Other non-current liabilities | 12,743 | 16,630 | |||||||||
Total liabilities | 341,110 | 339,763 | |||||||||
Total shareholders’ equity | 212,101 | 211,154 | |||||||||
Total liabilities and shareholders’ equity | $ | 553,211 | $ | 550,917 |
Year Ended | |||||||||||
December 30, 2023 |
December 31, 2022 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 38,481 | $ | 43,619 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 26,197 | 30,490 | |||||||||
Accounts receivable and unbilled services | (2,860) | (30,311) | |||||||||
Working capital items, net | (1,746) | (18,677) | |||||||||
Net cash provided by operating activities | 60,072 | 25,121 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (2,366) | (3,813) | |||||||||
Consideration paid for acquisitions, net | (577) | (14,352) | |||||||||
Net cash used in investing activities | (2,943) | (18,165) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | 805 | 1,411 | |||||||||
Borrowings under revolving line of credit | 105,000 | 126,000 | |||||||||
Repayments under revolving line of credit | (105,000) | (126,000) | |||||||||
Payments for debt issuance costs | — | (1,008) | |||||||||
Tax withholding payments reimbursed by shares | (3,063) | (2,145) | |||||||||
Cash dividends paid | (10,807) | (9,580) | |||||||||
Repurchase of common stock | (31,417) | (27,630) | |||||||||
Net cash used in financing activities | (44,482) | (38,952) | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | 1,492 | (2,687) | |||||||||
Net increase (decrease) in cash and cash equivalents | 14,139 | (34,683) | |||||||||
Cash and cash equivalents at beginning of period | 31,447 | 66,130 | |||||||||
Cash and cash equivalents at end of period | $ | 45,586 | $ | 31,447 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (91) | $ | (268) | |||||||
Excise tax on share repurchases | $ | (247) | $ | — | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 3,198 | $ | 2,436 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 14,011 | $ | 15,646 | |||||||
Cash paid for interest | $ | 3,539 | $ | 1,579 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 22,272 | $ | 21,306 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
||||||||||||||||||||||||||||
Officers | 156 | 155 | 156 | 158 | 149 | |||||||||||||||||||||||||||
Other Senior Staff | 527 | 529 | 522 | 535 | 496 | |||||||||||||||||||||||||||
Junior Staff | 321 | 330 | 293 | 279 | 294 | |||||||||||||||||||||||||||
Total | 1,004 | 1,014 | 971 | 972 | 939 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue | December 31, 2022 |
As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 28,979 | 17.9 | % | $ | 28,060 | 19.4 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 3,038 | 1.9 | % | 3,809 | 2.6 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 25,941 | 16.1 | % | $ | 24,251 | 16.7 | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue | December 31, 2022 |
As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 115,116 | 18.4 | % | $ | 110,087 | 18.6 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 13,985 | 2.2 | % | 18,295 | 3.1 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 101,131 | 16.2 | % | $ | 91,792 | 15.5 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income from operations | $ | 17,145 | 10.6 | % | $ | 13,302 | 9.2 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (918) | (0.6) | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 16,227 | 10.0 | % | $ | 13,371 | 9.2 | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income from operations | $ | 57,545 | 9.2 | % | $ | 58,737 | 9.9 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (866) | (0.1) | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | 22 | — | % | 302 | 0.1 | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 56,701 | 9.1 | % | $ | 59,039 | 10.0 | % |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
December 31, 2022 |
December 30, 2023 |
December 31, 2022 |
||||||||||||||||||||||
Tax Provision | $ | 4,099 | $ | 2,468 | $ | 4,086 | $ | 2,837 | ||||||||||||||||||
Effective Tax Rate | 26.3 | % | 22.2 | % | 26.1 | % | 22.0 | % |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
December 31, 2022 |
December 30, 2023 |
December 31, 2022 |
||||||||||||||||||||||
Tax Provision | $ | 13,807 | $ | 15,181 | $ | 13,932 | $ | 14,902 | ||||||||||||||||||
Effective Tax Rate | 26.4 | % | 25.8 | % | 26.3 | % | 26.0 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income before provision for income taxes | $ | 15,558 | 9.6 | % | $ | 11,141 | 7.7 | % | ||||||||||||||||||
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 | (918) | (0.6) | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | ||||||||||||||||||||
Foreign currency (gains) losses, net | 987 | 0.6 | % | 1,677 | 1.2 | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 15,627 | 9.7 | % | $ | 12,887 | 8.9 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 4,099 | $ | 2,468 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | (13) | 369 | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 4,086 | $ | 2,837 |
Fiscal Year Ended | ||||||||||||||||||||||||||
$ in 000’s | December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||
Income before provision for income taxes | $ | 52,288 | 8.4 | % | $ | 58,800 | 10.0 | % | ||||||||||||||||||
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 | (866) | (0.1) | % | — | — | % | ||||||||||||||||||||
Acquisition-related costs | 22 | — | % | 302 | 0.1 | % | ||||||||||||||||||||
Foreign currency (gains) losses, net | 1,445 | 0.2 | % | (1,889) | (0.3) | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 52,889 | 8.5 | % | $ | 57,213 | 9.7 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 13,807 | $ | 15,181 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | 125 | (279) | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 13,932 | $ | 14,902 |
GAAP Condensed Consolidated Statement of Cash Flows | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2023 |
2023 |
2023 |
2023 |
2023 |
|||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 60,072 | $ | 60,099 | $ | 64,952 | $ | 5,072 | $ | (70,051) | ||||||||||||||||||||||
Net cash used in investing activities | (2,943) | (358) | (733) | (720) | (1,132) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (44,482) | (43,092) | (50,574) | (25,664) | 74,848 | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 1,492 | 1,333 | (312) | 64 | 407 | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 14,139 | $ | 17,982 | $ | 13,333 | $ | (21,248) | $ | 4,072 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 31,447 | 27,604 | 14,271 | 35,519 | 31,447 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 45,586 | $ | 45,586 | $ | 27,604 | $ | 14,271 | $ | 35,519 |
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 |
Adjusted Net Cash Flows from Operations | FY |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||||||||
($ in 000’s) | 2023 |
2023 |
2023 |
2023 |
2023 |
|||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 60,072 | $ | 60,099 | $ | 64,952 | $ | 5,072 | $ | (70,051) | ||||||||||||||||||||||
Forgivable loan advances | 23,342 | 2,000 | 3,750 | 750 | 16,842 | |||||||||||||||||||||||||||
Forgivable loan repayments | (1,816) | (1,200) | — | — | (616) | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 22 | — | — | — | 22 | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 81,620 | $ | 60,899 | $ | 68,702 | $ | 5,822 | $ | (53,803) | ||||||||||||||||||||||
Net revenue | $ | 623,976 | $ | 161,613 | $ | 147,553 | $ | 161,965 | $ | 152,845 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 9.6 | % | 37.2 | % | 44.0 | % | 3.1 | % | (45.8) | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 13.1 | % | 37.7 | % | 46.6 | % | 3.6 | % | (35.2) | % |
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) | % |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | 112,688 | 69.7 | % | 100,678 | 69.4 | % | 439,751 | 70.5 | % | 410,081 | 69.4 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 28,979 | 17.9 | % | 28,060 | 19.4 | % | 115,116 | 18.4 | % | 110,087 | 18.6 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,801 | 1.7 | % | 2,936 | 2.0 | % | 11,564 | 1.9 | % | 11,996 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 17,145 | 10.6 | % | 13,302 | 9.2 | % | 57,545 | 9.2 | % | 58,737 | 9.9 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (600) | -0.4 | % | (484) | -0.3 | % | (3,812) | -0.6 | % | (1,826) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Foreign currency gains (losses), net | (987) | -0.6 | % | (1,677) | -1.2 | % | (1,445) | -0.2 | % | 1,889 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 15,558 | 9.6 | % | 11,141 | 7.7 | % | 52,288 | 8.4 | % | 58,800 | 10.0 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 4,099 | 2.5 | % | 2,468 | 1.7 | % | 13,807 | 2.2 | % | 15,181 | 2.6 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.65 | $ | 1.21 | $ | 5.48 | $ | 6.02 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.62 | $ | 1.19 | $ | 5.39 | $ | 5.91 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,954 | 7,129 | 7,008 | 7,218 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,057 | 7,293 | 7,118 | 7,355 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (918) | -0.6 | % | — | — | % | (866) | -0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | 22 | — | % | 302 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | 987 | 0.6 | % | 1,677 | 1.2 | % | 1,445 | 0.2 | % | (1,889) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 13 | — | % | (369) | -0.3 | % | (125) | — | % | 279 | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 11,541 | 7.1 | % | $ | 10,050 | 6.9 | % | $ | 38,957 | 6.2 | % | $ | 42,311 | 7.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.66 | $ | 1.41 | $ | 5.54 | $ | 5.84 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.63 | $ | 1.37 | $ | 5.46 | $ | 5.74 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,954 | 7,129 | 7,008 | 7,218 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 7,057 | 7,293 | 7,118 | 7,355 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
December 30, 2023 |
As a % of Revenue |
December 31, 2022 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 161,613 | 100.0 | % | $ | 144,976 | 100.0 | % | $ | 623,976 | 100.0 | % | $ | 590,901 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 11,459 | 7.1 | % | $ | 8,673 | 6.0 | % | $ | 38,481 | 6.2 | % | $ | 43,619 | 7.4 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | (918) | -0.6 | % | — | — | % | (866) | -0.1 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | 69 | — | % | 22 | — | % | 302 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses, net | 987 | 0.6 | % | 1,677 | 1.2 | % | 1,445 | 0.2 | % | (1,889) | -0.3 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | 13 | — | % | (369) | -0.3 | % | (125) | — | % | 279 | — | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 11,541 | 7.1 | % | $ | 10,050 | 6.9 | % | $ | 38,957 | 6.2 | % | $ | 42,311 | 7.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 600 | 0.4 | % | 484 | 0.3 | % | 3,812 | 0.6 | % | 1,826 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 4,086 | 2.5 | % | 2,837 | 2.0 | % | 13,932 | 2.2 | % | 14,902 | 2.5 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,801 | 1.7 | % | 2,936 | 2.0 | % | 11,564 | 1.9 | % | 11,996 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 19,028 | 11.8 | % | $ | 16,307 | 11.2 | % | $ | 68,265 | 10.9 | % | $ | 71,035 | 12.0 | % |
December 30, 2023 |
December 31, 2022 |
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Assets | |||||||||||
Cash and cash equivalents | $ | 45,586 | $ | 31,447 | |||||||
Accounts receivable and unbilled services, net | 199,556 | 194,987 | |||||||||
Other current assets | 20,334 | 22,426 | |||||||||
Total current assets | 265,476 | 248,860 | |||||||||
Property and equipment, net | 38,176 | 45,582 | |||||||||
Goodwill and intangible assets, net | 101,185 | 101,510 | |||||||||
Right-of-use assets | 86,887 | 96,725 | |||||||||
Other assets | 61,487 | 58,240 | |||||||||
Total assets | $ | 553,211 | $ | 550,917 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 28,701 | $ | 27,584 | |||||||
Accrued expenses | 171,040 | 155,864 | |||||||||
Current portion of lease liabilities | 16,475 | 15,972 | |||||||||
Other current liabilities | 19,871 | 17,705 | |||||||||
Total current liabilities | 236,087 | 217,125 | |||||||||
Non-current portion of lease liabilities | 92,280 | 106,008 | |||||||||
Other non-current liabilities | 12,743 | 16,630 | |||||||||
Total liabilities | 341,110 | 339,763 | |||||||||
Total shareholders’ equity | 212,101 | 211,154 | |||||||||
Total liabilities and shareholders’ equity | $ | 553,211 | $ | 550,917 |
Year Ended | |||||||||||
December 30, 2023 |
December 31, 2022 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 38,481 | $ | 43,619 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
Non-cash items, net | 26,197 | 30,490 | |||||||||
Accounts receivable and unbilled services | (2,860) | (30,311) | |||||||||
Working capital items, net | (1,746) | (18,677) | |||||||||
Net cash provided by operating activities | 60,072 | 25,121 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (2,366) | (3,813) | |||||||||
Consideration paid for acquisitions, net | (577) | (14,352) | |||||||||
Net cash used in investing activities | (2,943) | (18,165) | |||||||||
Financing activities: | |||||||||||
Issuance of common stock, principally stock options exercises | 805 | 1,411 | |||||||||
Borrowings under revolving line of credit | 105,000 | 126,000 | |||||||||
Repayments under revolving line of credit | (105,000) | (126,000) | |||||||||
Payments for debt issuance costs | — | (1,008) | |||||||||
Tax withholding payments reimbursed by shares | (3,063) | (2,145) | |||||||||
Cash dividends paid | (10,807) | (9,580) | |||||||||
Repurchase of common stock | (31,417) | (27,630) | |||||||||
Net cash used in financing activities | (44,482) | (38,952) | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | 1,492 | (2,687) | |||||||||
Net increase (decrease) in cash and cash equivalents | 14,139 | (34,683) | |||||||||
Cash and cash equivalents at beginning of period | 31,447 | 66,130 | |||||||||
Cash and cash equivalents at end of period | $ | 45,586 | $ | 31,447 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (91) | $ | (268) | |||||||
Excise tax on share repurchases | $ | (247) | $ | — | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 3,198 | $ | 2,436 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 14,011 | $ | 15,646 | |||||||
Cash paid for interest | $ | 3,539 | $ | 1,579 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 22,272 | $ | 21,306 |
Contacts: | |||||||||||
Dan Mahoney | Nicholas Manganaro | ||||||||||
Chief Financial Officer | Sharon Merrill Associates, Inc. | ||||||||||
Charles River Associates | crai@investorrelations.com | ||||||||||
617-425-3505 | 617-542-5300 |