Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Charles River Associates (CRA) Reports Financial Results for the Third Quarter of 2021


Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced financial results for the fiscal third quarter ended October 2, 2021.

"Building on a strong first half of fiscal 2021, CRA reported revenue growth of 12.0% year over year to $136.4 million, representing the 23rd consecutive quarter of year-over-year revenue growth," said Paul Maleh, CRA's President and Chief Executive Officer. "Our performance for the quarter was driven by double-digit revenue growth in each of our Antitrust & Competition Economics, Financial Economics, Forensic Services, Labor & Employment, Marakon, and Risk, Investigations & Analytics practices. Both our North American and international operations contributed to our quarterly growth, increasing year over year by 14.1% and 3.5%, respectively. The quarter's top-line growth resulted in accelerating profit expansion, as CRA's net income, earnings per diluted share and EBITDA all grew significantly faster than revenue."

Key Third-Quarter Fiscal 2021 Highlights

Outlook and Financial Guidance

"Through the first three quarters of fiscal 2021, on a constant currency basis relative to fiscal 2020, we have increased revenue by 14.6% to $425.1 million and non-GAAP EBITDA by 43.0% to $52.6 million, achieving a margin of 12.4%. These results demonstrate the strength and quality of our business," continued Maleh. "While the business continues to deliver strong results, our third-quarter revenue was below our expectations as we experienced a rate of employee vacation time that was more than 20% higher than in the year-ago period and the highest rate for a third quarter over the prior five years. Although helpful for the health and well-being of our colleagues, the heightened vacation time acted as a headwind to our top-line growth, and may continue during the November and December holidays."

"As a result, we are lowering our full-year revenue guidance while maintaining our EBITDA margin guidance. For the full-year fiscal 2021, on a constant currency basis relative to fiscal 2020, we now expect revenue in the range of $560 million to $570 million, and non-GAAP EBITDA margin to exceed the upper end of the range of 11.2% to 11.7%. We are pleased with CRA's strong performance through the first three quarters of the year, but we remain mindful that uncertainties around global economic, business, health, and political conditions can affect our business," concluded Maleh.

CRA does not provide reconciliations of its annual non-GAAP EBITDA margin guidance to GAAP net income margin because the Company is unable to estimate with reasonable certainty unusual gains or charges, foreign currency exchange rates, and the resulting effect of these items, and of equity awards, on CRA's taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on CRA's results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.

Quarterly Dividend

On November 4, 2021, CRA announced that it increased its quarterly cash dividend by 19% from $0.26 to $0.31 per common share. The dividend will be payable on December 10, 2021 to shareholders of record as of November 30, 2021. CRA expects to continue paying quarterly dividends, the declaration, timing and amounts of which remain subject to the discretion of CRA's Board of Directors.

Conference Call Information and Prepared CFO Remarks

CRA will host a conference call today at 10:00 a.m. ET to discuss its third-quarter 2021 financial results. To listen to the live call, please visit the "Investor Relations" section of CRA's website at http://www.crai.com, or dial (877) 709-8155 or (201) 689-8881. An archived version of the webcast will be available on CRA's website for one year.

In combination with this press release, CRA has posted prepared remarks by its CFO Dan Mahoney under "Conference Call Materials" in the "Investor Relations" section on CRA's website at http://www.crai.com. These remarks are offered to provide the investment community with additional background on CRA's financial results prior to the start of the conference call.

About Charles River Associates (CRA)

Charles River Associates® is a leading global consulting firm specializing in economic, financial, and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Twitter, and Facebook.

NON-GAAP FINANCIAL MEASURES

In this release, CRA has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles or "GAAP" with the following financial measures that are not calculated in accordance with GAAP: non?GAAP net income, non?GAAP net income per share and non?GAAP EBITDA. CRA believes that the non-GAAP financial measures described in this press release are important to management and investors because these measures supplement the understanding of CRA's ongoing operating results and financial condition. In addition, these non-GAAP measures are used by CRA in its budgeting process, and the non-GAAP adjustments are made to the performance measures for some of CRA's performance-based compensation.

CRA defines non-GAAP EBITDA as net income before interest expense (net), income taxes, and depreciation and amortization further adjusted for the impact of certain items that we do not consider indicative of our core operating performance, such as non-cash amounts relating to valuation changes in contingent consideration and related tax effects. Non-GAAP net income and non-GAAP net income per share also exclude non-cash amounts relating to valuation changes in contingent consideration and related tax effects. This release also presents certain current fiscal period financial measures on a "constant currency" basis in order to isolate the effect that foreign currency exchange rate fluctuations can have on CRA's financial results. These constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period's foreign exchange rates. On a constant currency basis for the fiscal year-to-date period ended October 2, 2021 relative to the fiscal year-to-date period ended September 26, 2020, revenue would have been lower by $6.1 million and EBITDA would have been lower by $0.6 million.

All of the non-GAAP financial measures referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this release. EBITDA and the financial measures identified in this release as "non-GAAP" are reconciled to their GAAP comparable measures in the financial tables appended to the end of this press release. In evaluating these non-GAAP financial measures, note that the non-GAAP financial measures used by CRA may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

SAFE HARBOR STATEMENT

Statements in this press release concerning our future business, operating results and financial condition, including those concerning guidance on future revenue and non-GAAP EBITDA margin, the impact of exchange rate fluctuations on our financial results, our expectations regarding continued growth, our expectations regarding the payment of any future quarterly dividends and the level and extent of any purchases under our share repurchase program, and statements using the terms "outlook," "expect," or similar expressions, are "forward-looking" statements as defined in Section 21 of the Exchange Act. These statements are based upon our current expectations and various underlying assumptions. Although we believe there is a reasonable basis for these statements and assumptions, and these statements are expressed in good faith, these statements are subject to a number of additional factors and uncertainties. Our actual revenue and non-GAAP EBITDA margin in fiscal 2021 on a constant currency basis relative to fiscal 2020 could differ materially from the guidance presented herein, and our actual performance and results may differ materially from the performance and results contained in or implied by the forward-looking statements made herein, due to many important factors. These factors include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; the impact of the COVID-19 pandemic; foreign currency exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability or settlements. Additional risks and uncertainties are discussed in our periodic filings with the Securities and Exchange Commission under the heading "Risk Factors." The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. Except as may be required by law, we undertake no obligation to update any forward-looking statements after the date of this press release, and we do not intend to do so.

 

CRA INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED

OCTOBER 2, 2021 COMPARED TO SEPTEMBER 26, 2020

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 
Fiscal Quarter Ended Fiscal Year-to-Date Period Ended
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
Revenues

$

136,412

 

100.0

%

$

121,762

 

100.0

%

$

431,167

 

100.0

%

$

370,951

 

100.0

%

Cost of services (exclusive of depreciation and amortization)

 

95,980

 

70.4

%

 

88,304

 

72.5

%

 

306,396

 

71.1

%

 

269,462

 

72.6

%

Selling, general and administrative expenses

 

24,490

 

18.0

%

 

22,194

 

18.2

%

 

71,740

 

16.6

%

 

67,742

 

18.3

%

Depreciation and amortization

 

3,141

 

2.3

%

 

3,244

 

2.7

%

 

9,657

 

2.2

%

 

9,293

 

2.5

%

Income from operations

 

12,801

 

9.4

%

 

8,020

 

6.6

%

 

43,374

 

10.1

%

 

24,454

 

6.6

%

 
Interest expense, net

 

(183

)

-0.1

%

 

(277

)

-0.2

%

 

(791

)

-0.2

%

 

(1,011

)

-0.3

%

Foreign currency gains (losses), net

 

235

 

0.2

%

 

(217

)

-0.2

%

 

(253

)

-0.1

%

 

1,103

 

0.3

%

Income before provision for income taxes

 

12,853

 

9.4

%

 

7,526

 

6.2

%

 

42,330

 

9.8

%

 

24,546

 

6.6

%

Provision for income taxes

 

1,908

 

1.4

%

 

2,123

 

1.7

%

 

9,318

 

2.2

%

 

6,744

 

1.8

%

Net income

$

10,945

 

8.0

%

$

5,403

 

4.4

%

$

33,012

 

7.7

%

$

17,802

 

4.8

%

 
Net income per share:
Basic

$

1.48

 

$

0.69

 

$

4.42

 

$

2.28

 

Diluted

$

1.44

 

$

0.68

 

$

4.31

 

$

2.23

 

 
Weighted average number of shares outstanding:
Basic

 

7,375

 

 

7,771

 

 

7,440

 

 

7,780

 

Diluted

 

7,560

 

 

7,934

 

 

7,643

 

 

7,964

 

 

CRA INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED

OCTOBER 2, 2021 COMPARED TO SEPTEMBER 26, 2020

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 
Fiscal Quarter Ended Fiscal Year-to-Date Period Ended
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
Revenues

$

136,412

100.0

%

$

121,762

 

100.0

%

$

431,167

 

100.0

%

$

370,951

 

100.0

%

 
Net income

$

10,945

8.0

%

$

5,403

 

4.4

%

$

33,012

 

7.7

%

$

17,802

 

4.8

%

Adjustments needed to reconcile GAAP net income to non-GAAP net income:
Non-cash valuation change in contingent consideration

 

-

-

%

 

905

 

0.7

%

 

380

 

0.1

%

 

1,901

 

0.5

%

Tax effect on adjustments

 

-

-

%

 

(238

)

-0.2

%

 

(103

)

-

%

 

(508

)

-0.1

%

Non-GAAP net income

$

10,945

8.0

%

$

6,070

 

5.0

%

$

33,289

 

7.7

%

$

19,195

 

5.2

%

 
Non-GAAP net income per share:
Basic

$

1.48

$

0.78

 

$

4.46

 

$

2.46

 

Diluted

$

1.44

$

0.76

 

$

4.34

 

$

2.40

 

 
Weighted average number of shares outstanding:
Basic

 

7,375

 

7,771

 

 

7,440

 

 

7,780

 

Diluted

 

7,560

 

7,934

 

 

7,643

 

 

7,964

 

 

CRA INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED

OCTOBER 2, 2021 COMPARED TO SEPTEMBER 26, 2020

(IN THOUSANDS)

 
Fiscal Quarter Ended Fiscal Year-to-Date Period Ended
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
October 2,
2021
As a % of
Revenue
September 26,
2020
As a % of
Revenue
Revenues

$ 136,412

100.0 %

$ 121,762

100.0 %

$ 431,167

100.0 %

$ 370,951

100.0 %

 
Net income

$ 10,945

8.0 %

$ 5,403

4.4 %

$ 33,012

7.7 %

$ 17,802

4.8 %

Adjustments needed to reconcile GAAP net income to non-GAAP net income:
Non-cash valuation change in contingent consideration

-

-%

905

0.7%

380

0.1%

1,901

0.5%

Tax effect on adjustments

-

-%

(238)

-0.2%

(103)

-%

(508)

-0.1%

Non-GAAP net income

$ 10,945

8.0 %

$ 6,070

5.0 %

$ 33,289

7.7 %

$ 19,195

5.2 %

Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA:
Interest expense, net

183

0.1%

277

0.2%

791

0.2%

1,011

0.3%

Provision for income taxes

1,908

1.4%

2,361

1.9%

9,421

2.2%

7,252

2.0%

Depreciation and amortization

3,141

2.3%

3,244

2.7%

9,657

2.2%

9,293

2.5%

Non-GAAP EBITDA

$ 16,177

11.9 %

$ 11,952

9.8 %

$ 53,158

12.3 %

$ 36,751

9.9 %

 
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
 
October 2,
2021
January 2,
2021
 
Assets
Cash and cash equivalents

$

19,665

$

45,677

Accounts receivable and unbilled services, net

 

173,834

 

152,476

Other current assets

 

20,402

 

21,817

Total current assets

 

213,901

 

219,970

 
Property and equipment, net

 

55,577

 

62,878

Goodwill and intangible assets, net

 

93,366

 

94,295

Right-of-use assets

 

113,759

 

122,144

Other assets

 

53,304

 

59,223

Total assets

$

529,907

$

558,510

 
Liabilities and Shareholders' Equity
Accounts payable

$

22,916

$

19,430

Accrued expenses

 

128,701

 

136,376

Current portion of lease liabilities

 

14,188

 

13,557

Revolving line of credit

 

6,000

 

-

Other current liabilities

 

10,265

 

30,768

Total current liabilities

 

182,070

 

200,131

Non-current portion of lease liabilities

 

128,565

 

139,447

Other non-current liabilities

 

14,987

 

9,913

Total liabilities

 

325,622

 

349,491

 
Total shareholders' equity

 

204,285

 

209,019

Total liabilities and shareholders' equity

$

529,907

$

558,510

 
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
 
Fiscal Year-to-Date Period Ended
October 2,
2021
September 26,
2020
 
Operating activities:
Net income

$

33,012

 

$

17,802

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Non-cash items, net

 

20,948

 

 

20,281

 

Accounts receivable and unbilled services

 

(22,324

)

 

(13,042

)

Working capital items, net

 

(17,733

)

 

(35,693

)

Net cash provided by (used in) operating activities

 

13,903

 

 

(10,652

)

 
Investing activities:
Purchases of property and equipment

 

(1,730

)

 

(15,742

)

Net cash used in investing activities

 

(1,730

)

 

(15,742

)

 
Financing activities:
Issuance of common stock, principally stock options exercises

 

5,005

 

 

1,667

 

Borrowings under revolving line of credit

 

72,000

 

 

77,000

 

Repayments under revolving line of credit

 

(66,000

)

 

(39,000

)

Tax withholding payments reimbursed by shares

 

(588

)

 

(390

)

Cash paid for contingent consideration

 

(2,357

)

 

-

 

Cash dividends paid

 

(5,903

)

 

(5,412

)

Repurchase of common stock

 

(39,977

)

 

(8,807

)

Net cash provided by (used in) financing activities

 

(37,820

)

 

25,058

 

 
Effect of foreign exchange rates on cash and cash equivalents

 

(365

)

 

(195

)

 
Net decrease in cash and cash equivalents

 

(26,012

)

 

(1,531

)

Cash and cash equivalents at beginning of period

 

45,677

 

 

25,639

 

 
Cash and cash equivalents at end of period

$

19,665

 

$

24,108

 

 
Noncash investing and financing activities:
Purchases of property and equipment not yet paid for

$

7

 

$

3,923

 

Asset retirement obligations

$

-

 

$

155

 

Right-of-use assets obtained in exchange for lease obligations

$

1,751

 

$

2,601

 

Restricted common stock issued for contingent consideration

$

2,250

 

$

-

 

Supplemental cash flow information:
Cash paid for taxes

$

12,484

 

$

5,933

 

Cash paid for interest

$

528

 

$

932

 

Cash paid for amounts included in operating lease liabilities

$

15,556

 

$

13,736

 

 


These press releases may also interest you

at 11:25
The "DAB Transmitter Market Forecast to 2028 - COVID-19 Impact and Global Analysis" report has been added to ResearchAndMarkets.com's offering. The DAB transmitter market is expected to reach US$ 146.02 million by 2028 from US$ 95.88 million in...

at 11:22
With the ongoing COVID-19 pandemic and the rise of online shopping, big-box retailers continue to monopolize many aspects of the internet marketplace. In an era of consumer ethics, Generation Z pays more attention to where they buy their products....

at 11:17
Researchers from Oregon Health & Science University found that a clinician-focused, COVID-19 support program with a chat box feature not only provided primary care medical staff with timely clinical resources and care guidance, but it also offered...

at 11:10
Lithium Americas Corp. ("Lithium Americas" or the "Company") and Millennial Lithium Corp. ("Millennial") are pleased to announce the completion of the previously announced plan of arrangement (the "Arrangement") whereby Lithium Americas has...

at 11:10
Technology innovation will fuel global construction machinery market gains through 2025, finds a new Freedonia Group analysis. Despite a modest increase in unit sales, global demand for construction machinery is forecast to grow 4.1% per year to $250...

at 11:10
Miami-Dade County and Independent Living Systems (ILS), a privately-owned Miami-based national health care services company, are announcing a new partnership to provide COVID-19 vaccinations and booster shots to residents who are homebound and cannot...



News published on 4 november 2021 at 08:15 and distributed by: