Last10K.com

Cra International, Inc. (CRAI) SEC Filing 8-K Material Event for the period ending Thursday, November 4, 2021

Cra International, Inc.

CIK: 1053706 Ticker: CRAI

Exhibit 99.1
Contacts:
Dan MahoneyNicholas Manganaro
Chief Financial OfficerSharon Merrill Associates, Inc.
Charles River Associates crai@investorrelations.com
617-425-3505617-542-5300

CHARLES RIVER ASSOCIATES (CRA) REPORTS
FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021
Broad-based Contributions Drive Strong Revenue and Profit Growth

Company Increases Quarterly Dividend by 19%

BOSTON, November 4, 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
Revenue grew 12.0% year over year to $136.4 million.
Utilization was 73%, and quarter-end headcount increased 6.8% year over year.
Net income increased 102.6% year over year to $10.9 million, or 8.0% of revenue, compared with $5.4 million, or 4.4% of revenue, in the third quarter of fiscal 2020; non-GAAP net income increased 80.3% year over year to $10.9 million, or 8.0% of revenue, compared with $6.1 million, or 5.0% of revenue, in the third quarter of fiscal 2020.
Earnings per diluted share increased 111.8% year over year to $1.44 from $0.68; non-GAAP earnings per diluted share increased 89.5% year over year to $1.44 from $0.76.
Non-GAAP EBITDA increased 35.3% to $16.2 million, or 11.9% of revenue, compared with $12.0 million, or 9.8% of revenue, in the third quarter of fiscal 2020.
On a constant currency basis relative to the third quarter of fiscal 2020, revenue, GAAP net income, and earnings per diluted share would have been lower by $1.4 million, $0.1 million, and $0.01 per diluted share, respectively. Non-GAAP net income, earnings per diluted share, and EBITDA would have been lower by $0.1 million, $0.01 per diluted share, and $0.2 million respectively.
CRA returned $6.9 million of capital to its shareholders, consisting of $1.9 million of dividend payments and $5.0 million for share repurchases of approximately 53,000 shares.

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
1


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.
2



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.


3



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 EndedFiscal 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 expenses24,490 18.0 %22,194 18.2 %71,740 16.6 %67,742 18.3 %
Depreciation and amortization3,141 2.3 %3,244 2.7 %9,657 2.2 %9,293 2.5 %
Income from operations12,801 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), net235 0.2 %(217)-0.2 %(253)-0.1 %1,103 0.3 %
Income before provision for income taxes12,853 9.4 %7,526 6.2 %42,330 9.8 %24,546 6.6 %
Provision for income taxes1,908 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:
  Basic7,375 7,771 7,440 7,780 
  Diluted7,560 7,934 7,643 7,964 
4



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 EndedFiscal 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:
  Basic7,375 7,771 7,440 7,780 
  Diluted7,560 7,934 7,643 7,964 
5



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 EndedFiscal 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, net183 0.1 %277 0.2 %791 0.2 %1,011 0.3 %
Provision for income taxes1,908 1.4 %2,361 1.9 %9,421 2.2 %7,252 2.0 %
Depreciation and amortization3,141 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 %
6



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, net173,834 152,476 
Other current assets20,402 21,817 
Total current assets213,901 219,970 
Property and equipment, net55,577 62,878 
Goodwill and intangible assets, net93,366 94,295 
Right-of-use assets113,759 122,144 
Other assets53,304 59,223 
Total assets$529,907 $558,510 
Liabilities and Shareholders’ Equity
Accounts payable$22,916 $19,430 
Accrued expenses128,701 136,376 
Current portion of lease liabilities14,188 13,557 
Revolving line of credit6,000 — 
Other current liabilities10,265 30,768 
Total current liabilities182,070 200,131 
Non-current portion of lease liabilities128,565 139,447 
Other non-current liabilities14,987 9,913 
Total liabilities325,622 349,491 
Total shareholders’ equity204,285 209,019 
Total liabilities and shareholders’ equity$529,907 $558,510 

7


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, net20,948 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 activities13,903 (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 exercises5,005 1,667 
Borrowings under revolving line of credit72,000 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 period45,677 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$$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 
8

View differences made from one to another to evaluate Cra International, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Cra International, Inc..

Continue

Assess how Cra International, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Cra International, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Cra International, Inc. provided additional information to their SEC Filing as exhibits

Ticker: CRAI
CIK: 1053706
Form Type: 8-K Corporate News
Accession Number: 0001053706-21-000028
Submitted to the SEC: Thu Nov 04 2021 8:11:28 AM EST
Accepted by the SEC: Thu Nov 04 2021
Period: Thursday, November 4, 2021
Industry: Legal Services
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/crai/0001053706-21-000028.htm