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 |
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: August 1, 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 | |||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
|||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | ||||||||||||||||||||||||||||
Costs of services (exclusive of depreciation and amortization) | 125,327 | 73.1 | % | 113,333 | 70.0 | % | 244,206 | 71.1 | % | 221,170 | 70.3 | % | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 32,016 | 18.7 | % | 29,846 | 18.4 | % | 62,514 | 18.2 | % | 58,218 | 18.5 | % | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,811 | 1.6 | % | 2,872 | 1.8 | % | 5,603 | 1.6 | % | 5,815 | 1.8 | % | ||||||||||||||||||||||||||||||||
Income from operations | 11,288 | 6.6 | % | 15,914 | 9.8 | % | 30,907 | 9.0 | % | 29,607 | 9.4 | % | ||||||||||||||||||||||||||||||||
Interest expense, net | (1,483) | -0.9 | % | (1,616) | -1.0 | % | (1,948) | -0.6 | % | (2,187) | -0.7 | % | ||||||||||||||||||||||||||||||||
Foreign currency losses, net | (191) | -0.1 | % | (686) | -0.4 | % | (333) | -0.1 | % | (1,214) | -0.4 | % | ||||||||||||||||||||||||||||||||
Income before provision for income taxes | 9,614 | 5.6 | % | 13,612 | 8.4 | % | 28,626 | 8.3 | % | 26,206 | 8.3 | % | ||||||||||||||||||||||||||||||||
Provision for income taxes | 3,076 | 1.8 | % | 4,104 | 2.5 | % | 8,397 | 2.4 | % | 7,780 | 2.5 | % | ||||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | ||||||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.96 | $ | 1.36 | $ | 2.93 | $ | 2.61 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.94 | $ | 1.34 | $ | 2.90 | $ | 2.56 | ||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,834 | 6,983 | 6,880 | 7,051 | ||||||||||||||||||||||||||||||||||||||||
Diluted | 6,911 | 7,080 | 6,961 | 7,166 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 16 | — | % | — | — | % | 36 | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | 8,176 | 2.4 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | — | — | % | — | — | % | 22 | — | % | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | 190 | 0.1 | % | 686 | 0.4 | % | 332 | 0.1 | % | 1,214 | 0.4 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (2,205) | -1.3 | % | (165) | -0.1 | % | (2,239) | -0.7 | % | (304) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 12,699 | 7.4 | % | $ | 10,045 | 6.2 | % | $ | 26,498 | 7.7 | % | $ | 19,394 | 6.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.85 | $ | 1.44 | $ | 3.84 | $ | 2.75 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.83 | $ | 1.42 | $ | 3.80 | $ | 2.70 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,834 | 6,983 | 6,880 | 7,051 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 6,911 | 7,080 | 6,961 | 7,166 | |||||||||||||||||||||||||||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 16 | — | % | — | — | % | 36 | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | 8,176 | 2.4 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | — | — | % | — | — | % | 22 | — | % | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | 190 | 0.1 | % | 686 | 0.4 | % | 332 | 0.1 | % | 1,214 | 0.4 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (2,205) | -1.3 | % | (165) | -0.1 | % | (2,239) | -0.7 | % | (304) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 12,699 | 7.4 | % | $ | 10,045 | 6.2 | % | $ | 26,498 | 7.7 | % | $ | 19,394 | 6.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1,483 | 0.9 | % | 1,616 | 1.0 | % | 1,948 | 0.6 | % | 2,187 | 0.7 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 5,281 | 3.1 | % | 4,269 | 2.6 | % | 10,636 | 3.1 | % | 8,084 | 2.6 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,811 | 1.6 | % | 2,872 | 1.8 | % | 5,603 | 1.6 | % | 5,815 | 1.8 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 22,274 | 13.0 | % | $ | 18,802 | 11.6 | % | $ | 44,685 | 13.0 | % | $ | 35,480 | 11.3 | % | |||||||||||||||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
June 29, 2024 |
December 30, 2023 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 24,649 | $ | 45,586 | |||||||
Accounts receivable and unbilled services, net | 216,570 | 199,556 | |||||||||
Other current assets | 29,961 | 20,334 | |||||||||
Total current assets | 271,180 | 265,476 | |||||||||
Property and equipment, net | 36,817 | 38,176 | |||||||||
Goodwill and intangible assets, net | 101,836 | 101,185 | |||||||||
Right-of-use assets | 81,338 | 86,887 | |||||||||
Other assets | 54,841 | 61,487 | |||||||||
Total assets | $ | 546,012 | $ | 553,211 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 22,997 | $ | 28,701 | |||||||
Accrued expenses | 113,252 | 171,040 | |||||||||
Current portion of lease liabilities | 16,966 | 16,475 | |||||||||
Revolving line of credit | 87,000 | — | |||||||||
Other current liabilities | 12,456 | 19,871 | |||||||||
Total current liabilities | 252,671 | 236,087 | |||||||||
Non-current portion of lease liabilities | 84,492 | 92,280 | |||||||||
Other non-current liabilities | 17,100 | 12,743 | |||||||||
Total liabilities | 354,263 | 341,110 | |||||||||
Total shareholders’ equity | 191,749 | 212,101 | |||||||||
Total liabilities and shareholders’ equity | $ | 546,012 | $ | 553,211 |
Fiscal Year-to-Date Period Ended | |||||||||||
June 29, 2024 |
July 1, 2023 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 20,229 | $ | 18,426 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Non-cash items, net | 15,769 | 15,200 | |||||||||
Accounts receivable and unbilled services | (18,476) | (16,415) | |||||||||
Working capital items, net | (78,795) | (82,190) | |||||||||
Net cash used in operating activities | (61,273) | (64,979) | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment, net | (3,046) | (1,282) | |||||||||
Consideration paid for acquisition, net | (1,500) | (570) | |||||||||
Net cash used in investing activities | (4,546) | (1,852) | |||||||||
Financing activities: | |||||||||||
Borrowings under revolving line of credit | 93,000 | 105,000 | |||||||||
Repayments under revolving line of credit | (6,000) | (25,000) | |||||||||
Tax withholding payments reimbursed by shares | (1,977) | (2,009) | |||||||||
Cash dividends paid | (5,976) | (5,230) | |||||||||
Repurchase of common stock | (33,348) | (23,577) | |||||||||
Net cash provided by financing activities | 45,699 | 49,184 | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | (817) | 471 | |||||||||
Net decrease in cash and cash equivalents | (20,937) | (17,176) | |||||||||
Cash and cash equivalents at beginning of period | 45,586 | 31,447 | |||||||||
Cash and cash equivalents at end of period | $ | 24,649 | $ | 14,271 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase in accounts payable and accrued expenses for property and equipment | $ | 553 | $ | 376 | |||||||
Excise tax on share repurchases | $ | (300) | $ | (200) | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,329 | $ | 190 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 12,681 | $ | 6,218 | |||||||
Cash paid for interest | $ | 1,533 | $ | 2,178 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 11,163 | $ | 11,077 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
||||||||||||||||||||||||||||
Officers | 157 | 158 | 156 | 155 | 156 | |||||||||||||||||||||||||||
Other Senior Staff | 531 | 544 | 527 | 529 | 522 | |||||||||||||||||||||||||||
Junior Staff | 280 | 295 | 321 | 330 | 293 | |||||||||||||||||||||||||||
Total | 968 | 997 | 1,004 | 1,014 | 971 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | June 29, 2024 |
As a % of Revenue | July 1, 2023 |
As a % of Revenue | ||||||||||||||||||||||
SG&A expenses | $ | 32,016 | 18.7 | % | $ | 29,846 | 18.4 | % | ||||||||||||||||||
Less: commissions to non-employee experts | 3,816 | 2.2 | % | 3,798 | 2.3 | % | ||||||||||||||||||||
SG&A expenses excluding commissions | $ | 28,200 | 16.4 | % | $ | 26,048 | 16.1 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | June 29, 2024 |
As a % of Revenue | July 1, 2023 |
As a % of Revenue | ||||||||||||||||||||||
Income from operations | $ | 11,288 | 6.6 | % | $ | 15,914 | 9.8 | % | ||||||||||||||||||
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 16 | — | % | ||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | ||||||||||||||||||||
Non-GAAP income from operations | $ | 19,464 | 11.4 | % | $ | 15,930 | 9.8 | % | ||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
GAAP | Non-GAAP | |||||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||
$ in 000’s | June 29, 2024 |
July 1, 2023 |
June 29, 2024 |
July 1, 2023 |
||||||||||||||||||||||
Tax Provision | $ | 3,076 | $ | 4,104 | $ | 5,281 | $ | 4,269 | ||||||||||||||||||
Effective Tax Rate | 32.0 | % | 30.1 | % | 29.4 | % | 29.8 | % |
Fiscal Quarter Ended | ||||||||||||||||||||||||||
$ in 000’s | June 29, 2024 |
As a % of Revenue | July 1, 2023 |
As a % of Revenue | ||||||||||||||||||||||
Income before provision for income taxes | $ | 9,614 | 5.6 | % | $ | 13,612 | 8.4 | % | ||||||||||||||||||
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 | — | % | ||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | ||||||||||||||||||||
Foreign currency losses, net | 190 | 0.1 | % | 686 | 0.4 | % | ||||||||||||||||||||
Non-GAAP income before provision for income taxes | $ | 17,980 | 10.5 | % | $ | 14,314 | 8.8 | % | ||||||||||||||||||
GAAP provision for income taxes | $ | 3,076 | $ | 4,104 | ||||||||||||||||||||||
Tax effect on non-GAAP adjustments | 2,205 | 165 | ||||||||||||||||||||||||
Non-GAAP provision for income taxes | $ | 5,281 | $ | 4,269 | ||||||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
($ in 000’s) | Q2 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 63,778 | $ | 1,807 | $ | (63,080) | $ | 60,099 | $ | 64,952 | ||||||||||||||||||||||
Net cash used in investing activities | (5,637) | (3,816) | (730) | (358) | (733) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (47,967) | (10,353) | 56,052 | (43,092) | (50,574) | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 204 | (111) | (706) | 1,333 | (312) | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 10,378 | $ | (12,473) | $ | (8,464) | $ | 17,982 | $ | 13,333 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 14,271 | 37,122 | 45,586 | 27,604 | 14,271 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 24,649 | $ | 24,649 | $ | 37,122 | $ | 45,586 | $ | 27,604 |
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
($ in 000’s) | Q2 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 38,954 | $ | 5,072 | $ | (70,051) | $ | 60,136 | $ | 43,797 | ||||||||||||||||||||||
Net cash used in investing activities | (7,765) | (720) | (1,132) | (4,981) | (932) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (31,868) | (25,664) | 74,848 | (48,212) | (32,840) | |||||||||||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | (671) | 64 | 407 | 411 | (1,553) | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (1,350) | $ | (21,248) | $ | 4,072 | $ | 7,354 | $ | 8,472 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 15,621 | 35,519 | 31,447 | 24,093 | 15,621 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 14,271 | $ | 14,271 | $ | 35,519 | $ | 31,447 | $ | 24,093 |
Adjusted Net Cash Flows from Operations | LTM | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
($ in 000’s) | Q2 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 63,778 | $ | 1,807 | $ | (63,080) | $ | 60,099 | $ | 64,952 | ||||||||||||||||||||||
Forgivable loan advances | 29,880 | 18,880 | 5,250 | 2,000 | 3,750 | |||||||||||||||||||||||||||
Forgivable loan repayments | (1,488) | (288) | — | (1,200) | — | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 92,170 | $ | 20,399 | $ | (57,830) | $ | 60,899 | $ | 68,702 | ||||||||||||||||||||||
Net revenue | $ | 652,397 | $ | 171,442 | $ | 171,789 | $ | 161,613 | $ | 147,553 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 9.8 | % | 1.1 | % | (36.7) | % | 37.2 | % | 44.0 | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 14.1 | % | 11.9 | % | (33.7) | % | 37.7 | % | 46.6 | % |
Adjusted Net Cash Flows from Operations | LTM | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
($ in 000’s) | Q2 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 38,954 | $ | 5,072 | $ | (70,051) | $ | 60,136 | $ | 43,797 | ||||||||||||||||||||||
Forgivable loan advances | 30,422 | 750 | 16,842 | 9,517 | 3,313 | |||||||||||||||||||||||||||
Forgivable loan repayments | (616) | — | (616) | — | — | |||||||||||||||||||||||||||
Other non-recurring cash items (1) | 121 | — | 22 | 69 | 30 | |||||||||||||||||||||||||||
Adjusted net cash flows from operations | $ | 68,881 | $ | 5,822 | $ | (53,803) | $ | 69,722 | $ | 47,140 | ||||||||||||||||||||||
Net revenue | $ | 608,227 | $ | 161,965 | $ | 152,845 | $ | 144,976 | $ | 148,441 | ||||||||||||||||||||||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 6.4 | % | 3.1 | % | (45.8) | % | 41.5 | % | 29.5 | % | ||||||||||||||||||||||
Adjusted net cash flows from operations as a percentage of net revenue | 11.3 | % | 3.6 | % | (35.2) | % | 48.1 | % | 31.8 | % |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | |||||||||||||||||||||||||||||||
Costs of services (exclusive of depreciation and amortization) | 125,327 | 73.1 | % | 113,333 | 70.0 | % | 244,206 | 71.1 | % | 221,170 | 70.3 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 32,016 | 18.7 | % | 29,846 | 18.4 | % | 62,514 | 18.2 | % | 58,218 | 18.5 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,811 | 1.6 | % | 2,872 | 1.8 | % | 5,603 | 1.6 | % | 5,815 | 1.8 | % | |||||||||||||||||||||||||||||||||||
Income from operations | 11,288 | 6.6 | % | 15,914 | 9.8 | % | 30,907 | 9.0 | % | 29,607 | 9.4 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | (1,483) | -0.9 | % | (1,616) | -1.0 | % | (1,948) | -0.6 | % | (2,187) | -0.7 | % | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | (191) | -0.1 | % | (686) | -0.4 | % | (333) | -0.1 | % | (1,214) | -0.4 | % | |||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 9,614 | 5.6 | % | 13,612 | 8.4 | % | 28,626 | 8.3 | % | 26,206 | 8.3 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 3,076 | 1.8 | % | 4,104 | 2.5 | % | 8,397 | 2.4 | % | 7,780 | 2.5 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | |||||||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.96 | $ | 1.36 | $ | 2.93 | $ | 2.61 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.94 | $ | 1.34 | $ | 2.90 | $ | 2.56 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,834 | 6,983 | 6,880 | 7,051 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 6,911 | 7,080 | 6,961 | 7,166 |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 16 | — | % | — | — | % | 36 | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | 8,176 | 2.4 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | — | — | % | — | — | % | 22 | — | % | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | 190 | 0.1 | % | 686 | 0.4 | % | 332 | 0.1 | % | 1,214 | 0.4 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (2,205) | -1.3 | % | (165) | -0.1 | % | (2,239) | -0.7 | % | (304) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 12,699 | 7.4 | % | $ | 10,045 | 6.2 | % | $ | 26,498 | 7.7 | % | $ | 19,394 | 6.2 | % | |||||||||||||||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.85 | $ | 1.44 | $ | 3.84 | $ | 2.75 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.83 | $ | 1.42 | $ | 3.80 | $ | 2.70 | |||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 6,834 | 6,983 | 6,880 | 7,051 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 6,911 | 7,080 | 6,961 | 7,166 | |||||||||||||||||||||||||||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
June 29, 2024 |
As a % of Revenue |
July 1, 2023 |
As a % of Revenue |
||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 171,442 | 100.0 | % | $ | 161,965 | 100.0 | % | $ | 343,230 | 100.0 | % | $ | 314,810 | 100.0 | % | |||||||||||||||||||||||||||||||
Net income | $ | 6,538 | 3.8 | % | $ | 9,508 | 5.9 | % | $ | 20,229 | 5.9 | % | $ | 18,426 | 5.9 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash valuation change in contingent consideration | — | — | % | 16 | — | % | — | — | % | 36 | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1) |
8,176 | 4.8 | % | — | — | % | 8,176 | 2.4 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | % | — | — | % | — | — | % | 22 | — | % | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | 190 | 0.1 | % | 686 | 0.4 | % | 332 | 0.1 | % | 1,214 | 0.4 | % | |||||||||||||||||||||||||||||||||||
Tax effect on adjustments | (2,205) | -1.3 | % | (165) | -0.1 | % | (2,239) | -0.7 | % | (304) | -0.1 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 12,699 | 7.4 | % | $ | 10,045 | 6.2 | % | $ | 26,498 | 7.7 | % | $ | 19,394 | 6.2 | % | |||||||||||||||||||||||||||||||
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1,483 | 0.9 | % | 1,616 | 1.0 | % | 1,948 | 0.6 | % | 2,187 | 0.7 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 5,281 | 3.1 | % | 4,269 | 2.6 | % | 10,636 | 3.1 | % | 8,084 | 2.6 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,811 | 1.6 | % | 2,872 | 1.8 | % | 5,603 | 1.6 | % | 5,815 | 1.8 | % | |||||||||||||||||||||||||||||||||||
Non-GAAP EBITDA | $ | 22,274 | 13.0 | % | $ | 18,802 | 11.6 | % | $ | 44,685 | 13.0 | % | $ | 35,480 | 11.3 | % | |||||||||||||||||||||||||||||||
(1) Includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
June 29, 2024 |
December 30, 2023 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 24,649 | $ | 45,586 | |||||||
Accounts receivable and unbilled services, net | 216,570 | 199,556 | |||||||||
Other current assets | 29,961 | 20,334 | |||||||||
Total current assets | 271,180 | 265,476 | |||||||||
Property and equipment, net | 36,817 | 38,176 | |||||||||
Goodwill and intangible assets, net | 101,836 | 101,185 | |||||||||
Right-of-use assets | 81,338 | 86,887 | |||||||||
Other assets | 54,841 | 61,487 | |||||||||
Total assets | $ | 546,012 | $ | 553,211 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 22,997 | $ | 28,701 | |||||||
Accrued expenses | 113,252 | 171,040 | |||||||||
Current portion of lease liabilities | 16,966 | 16,475 | |||||||||
Revolving line of credit | 87,000 | — | |||||||||
Other current liabilities | 12,456 | 19,871 | |||||||||
Total current liabilities | 252,671 | 236,087 | |||||||||
Non-current portion of lease liabilities | 84,492 | 92,280 | |||||||||
Other non-current liabilities | 17,100 | 12,743 | |||||||||
Total liabilities | 354,263 | 341,110 | |||||||||
Total shareholders’ equity | 191,749 | 212,101 | |||||||||
Total liabilities and shareholders’ equity | $ | 546,012 | $ | 553,211 |
Fiscal Year-to-Date Period Ended | |||||||||||
June 29, 2024 |
July 1, 2023 |
||||||||||
Operating activities: | |||||||||||
Net income | $ | 20,229 | $ | 18,426 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Non-cash items, net | 15,769 | 15,200 | |||||||||
Accounts receivable and unbilled services | (18,476) | (16,415) | |||||||||
Working capital items, net | (78,795) | (82,190) | |||||||||
Net cash used in operating activities | (61,273) | (64,979) | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment, net | (3,046) | (1,282) | |||||||||
Consideration paid for acquisition, net | (1,500) | (570) | |||||||||
Net cash used in investing activities | (4,546) | (1,852) | |||||||||
Financing activities: | |||||||||||
Borrowings under revolving line of credit | 93,000 | 105,000 | |||||||||
Repayments under revolving line of credit | (6,000) | (25,000) | |||||||||
Tax withholding payments reimbursed by shares | (1,977) | (2,009) | |||||||||
Cash dividends paid | (5,976) | (5,230) | |||||||||
Repurchase of common stock | (33,348) | (23,577) | |||||||||
Net cash provided by financing activities | 45,699 | 49,184 | |||||||||
Effect of foreign exchange rates on cash and cash equivalents | (817) | 471 | |||||||||
Net decrease in cash and cash equivalents | (20,937) | (17,176) | |||||||||
Cash and cash equivalents at beginning of period | 45,586 | 31,447 | |||||||||
Cash and cash equivalents at end of period | $ | 24,649 | $ | 14,271 | |||||||
Noncash investing and financing activities: | |||||||||||
Increase in accounts payable and accrued expenses for property and equipment | $ | 553 | $ | 376 | |||||||
Excise tax on share repurchases | $ | (300) | $ | (200) | |||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 2,329 | $ | 190 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | 12,681 | $ | 6,218 | |||||||
Cash paid for interest | $ | 1,533 | $ | 2,178 | |||||||
Cash paid for amounts included in operating lease liabilities | $ | 11,163 | $ | 11,077 |
Contacts: | |||||||||||
Dan Mahoney | Nicholas Manganaro | ||||||||||
Chief Financial Officer | Sharon Merrill Associates, Inc. | ||||||||||
Charles River Associates | crai@investorrelations.com | ||||||||||
617-425-3505 | 617-542-5300 |