Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-24049 | |
Entity Registrant Name | CRA International, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2372210 | |
Entity Address, Address Line One | 200 Clarendon Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02116-5092 | |
City Area Code | 617 | |
Local Phone Number | 425-3000 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | CRAI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,779,710 | |
Entity Central Index Key | 0001053706 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Revenues | $ 171,442 | $ 161,965 | $ 343,230 | $ 314,810 |
Costs of services (exclusive of depreciation and amortization) | 125,327 | 113,333 | 244,206 | 221,170 |
Selling, general and administrative expenses | 32,016 | 29,846 | 62,514 | 58,218 |
Depreciation and amortization | 2,811 | 2,872 | 5,603 | 5,815 |
Income from operations | 11,288 | 15,914 | 30,907 | 29,607 |
Interest expense, net | (1,483) | (1,616) | (1,948) | (2,187) |
Foreign currency losses, net | (191) | (686) | (333) | (1,214) |
Income before provision for income taxes | 9,614 | 13,612 | 28,626 | 26,206 |
Provision for income taxes | 3,076 | 4,104 | 8,397 | 7,780 |
Net income | $ 6,538 | $ 9,508 | $ 20,229 | $ 18,426 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.96 | $ 1.36 | $ 2.93 | $ 2.61 |
Diluted (in dollars per share) | $ 0.94 | $ 1.34 | $ 2.90 | $ 2.56 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 6,834 | 6,983 | 6,880 | 7,051 |
Diluted (in shares) | 6,911 | 7,080 | 6,961 | 7,166 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,538 | $ 9,508 | $ 20,229 | $ 18,426 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments, net of tax | (315) | 1,074 | (1,420) | 2,126 |
Comprehensive income | $ 6,223 | $ 10,582 | $ 18,809 | $ 20,552 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 24,649 | $ 45,586 | |
Accounts receivable, net of allowances of $5,590 and $4,335, respectively | 140,141 | 142,729 | $ 143,644 |
Unbilled services, net of allowances of $879 and $1,629, respectively | 76,429 | 56,827 | 51,343 |
Prepaid expenses and other current assets | 15,748 | 11,575 | |
Forgivable loans | 14,213 | 8,759 | |
Total current assets | 271,180 | 265,476 | |
Property and equipment, net | 36,817 | 38,176 | |
Goodwill | 93,855 | 93,989 | |
Intangible assets, net | 7,981 | 7,196 | |
Right-of-use assets | 81,338 | 86,887 | |
Deferred income taxes | 13,842 | 13,885 | |
Forgivable loans, net of current portion | 39,009 | 45,182 | |
Other assets | 1,990 | 2,420 | |
Total assets | 546,012 | 553,211 | |
Current liabilities: | |||
Accounts payable | 22,997 | 28,701 | |
Accrued expenses | 113,252 | 171,040 | |
Deferred revenue and other liabilities | 8,480 | 12,289 | |
Current portion of lease liabilities | 16,966 | 16,475 | |
Current portion of deferred compensation | 3,976 | 7,582 | |
Revolving line of credit | 87,000 | 0 | |
Total current liabilities | 252,671 | 236,087 | |
Non-current liabilities: | |||
Deferred compensation and other non-current liabilities | 16,046 | 11,681 | |
Non-current portion of lease liabilities | 84,492 | 92,280 | |
Deferred income taxes | 1,054 | 1,062 | |
Total non-current liabilities | 101,592 | 105,023 | |
Commitments and contingencies (Note 10) | |||
Shareholders’ equity: | |||
Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding | 0 | 0 | |
Common stock, no par value; 25,000,000 shares authorized; 6,752,604 and 6,934,265 shares issued and outstanding, respectively | 0 | 0 | |
Retained earnings | 205,351 | 224,283 | |
Accumulated other comprehensive loss | (13,602) | (12,182) | |
Total shareholders’ equity | 191,749 | 212,101 | $ 211,154 |
Total liabilities and shareholders’ equity | $ 546,012 | $ 553,211 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 5,590 | $ 4,335 |
Allowance for unbilled services | $ 879 | $ 1,629 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value ( in dollars per share ) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (shares) | 6,752,604 | 6,934,265 |
Common stock, shares outstanding (shares) | 6,752,604 | 6,934,265 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
OPERATING ACTIVITIES: | ||
Net income | $ 20,229 | $ 18,426 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 5,603 | 5,815 |
Right-of-use asset amortization | 7,462 | 7,193 |
Deferred income taxes | (102) | (236) |
Share-based compensation expense | 2,396 | 2,098 |
Bad debt expense (recovery) | 681 | 392 |
Unrealized foreign currency remeasurement (gains) losses, net | (271) | (62) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,341 | 4,676 |
Unbilled services | (19,817) | (21,091) |
Prepaid expenses and other current assets, and other assets | (3,821) | (3,247) |
Forgivable loans | (6,083) | (4,374) |
Incentive cash awards payable | 4,796 | 4,029 |
Accounts payable, accrued expenses, and other liabilities | (64,488) | (69,747) |
Lease liabilities | (9,199) | (8,851) |
Net cash used in operating activities | (61,273) | (64,979) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (3,046) | (1,282) |
Consideration paid for acquisition | (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 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2022 | 7,149,884 | |||
Beginning balance at Dec. 31, 2022 | $ 211,154 | $ 1,743 | $ 224,392 | $ (14,981) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 8,918 | 8,918 | ||
Foreign currency translation adjustment | 1,052 | 1,052 | ||
Share-based compensation expense | 940 | $ 940 | ||
Restricted shares vesting (in shares) | 45,544 | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (16,614) | |||
Redemption of vested employee restricted shares for tax withholding | (1,873) | $ (1,873) | ||
Shares repurchased (in shares) | (180,881) | |||
Shares repurchased | (20,577) | $ (810) | (19,767) | |
Accrued excise tax on shares repurchased | (173) | (173) | ||
Accrued dividends on unvested shares | 45 | 45 | ||
Cash dividends paid (per share) | (2,702) | (2,702) | ||
Ending balance (in shares) at Apr. 01, 2023 | 6,997,933 | |||
Ending balance at Apr. 01, 2023 | $ 196,784 | $ 0 | 210,713 | (13,929) |
Increase (Decrease) in Shareholders' Equity | ||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.36 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 7,149,884 | |||
Beginning balance at Dec. 31, 2022 | $ 211,154 | $ 1,743 | 224,392 | (14,981) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 18,426 | |||
Foreign currency translation adjustment | 2,126 | |||
Ending balance (in shares) at Jul. 01, 2023 | 6,969,236 | |||
Ending balance at Jul. 01, 2023 | 202,786 | $ 468 | 215,173 | (12,855) |
Beginning balance (in shares) at Apr. 01, 2023 | 6,997,933 | |||
Beginning balance at Apr. 01, 2023 | 196,784 | $ 0 | 210,713 | (13,929) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 9,508 | 9,508 | ||
Foreign currency translation adjustment | 1,074 | 1,074 | ||
Share-based compensation expense | 1,158 | $ 1,158 | ||
Restricted shares vesting (in shares) | 3,630 | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (1,237) | |||
Redemption of vested employee restricted shares for tax withholding | (136) | $ (136) | ||
Shares repurchased (in shares) | (31,090) | |||
Shares repurchased | (3,000) | $ (554) | (2,446) | |
Accrued excise tax on shares repurchased | (27) | (27) | ||
Accrued dividends on unvested shares | (47) | (47) | ||
Cash dividends paid (per share) | (2,528) | (2,528) | ||
Ending balance (in shares) at Jul. 01, 2023 | 6,969,236 | |||
Ending balance at Jul. 01, 2023 | $ 202,786 | $ 468 | 215,173 | (12,855) |
Increase (Decrease) in Shareholders' Equity | ||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.36 | |||
Beginning balance (in shares) at Dec. 30, 2023 | 6,934,265 | 6,934,265 | ||
Beginning balance at Dec. 30, 2023 | $ 212,101 | $ 0 | 224,283 | (12,182) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 13,691 | 13,691 | ||
Foreign currency translation adjustment | (1,105) | (1,105) | ||
Share-based compensation expense | 1,039 | $ 1,039 | ||
Restricted shares vesting (in shares) | 33,441 | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (12,526) | |||
Redemption of vested employee restricted shares for tax withholding | (1,631) | $ (1,631) | ||
Shares repurchased (in shares) | (65,882) | |||
Shares repurchased | (9,242) | $ 592 | (9,834) | |
Accrued excise tax on shares repurchased | (65) | (65) | ||
Accrued dividends on unvested shares | 77 | 77 | ||
Cash dividends paid (per share) | (3,075) | (3,075) | ||
Ending balance (in shares) at Mar. 30, 2024 | 6,889,298 | |||
Ending balance at Mar. 30, 2024 | $ 211,790 | $ 0 | 225,077 | (13,287) |
Increase (Decrease) in Shareholders' Equity | ||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.42 | |||
Beginning balance (in shares) at Dec. 30, 2023 | 6,934,265 | 6,934,265 | ||
Beginning balance at Dec. 30, 2023 | $ 212,101 | $ 0 | 224,283 | (12,182) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 20,229 | |||
Foreign currency translation adjustment | $ (1,420) | |||
Ending balance (in shares) at Jun. 29, 2024 | 6,752,604 | 6,752,604 | ||
Ending balance at Jun. 29, 2024 | $ 191,749 | $ 0 | 205,351 | (13,602) |
Beginning balance (in shares) at Mar. 30, 2024 | 6,889,298 | |||
Beginning balance at Mar. 30, 2024 | 211,790 | $ 0 | 225,077 | (13,287) |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 6,538 | 6,538 | ||
Foreign currency translation adjustment | (315) | (315) | ||
Share-based compensation expense | 1,357 | $ 1,357 | ||
Restricted shares vesting (in shares) | 6,143 | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (2,340) | |||
Redemption of vested employee restricted shares for tax withholding | (346) | $ (346) | ||
Shares repurchased (in shares) | (140,497) | |||
Shares repurchased | (24,106) | $ (1,011) | (23,095) | |
Accrued excise tax on shares repurchased | (235) | (235) | ||
Accrued dividends on unvested shares | (33) | (33) | ||
Cash dividends paid (per share) | $ (2,901) | (2,901) | ||
Ending balance (in shares) at Jun. 29, 2024 | 6,752,604 | 6,752,604 | ||
Ending balance at Jun. 29, 2024 | $ 191,749 | $ 0 | $ 205,351 | $ (13,602) |
Increase (Decrease) in Shareholders' Equity | ||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.42 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid to shareholders (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.36 | $ 0.36 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business CRA International, Inc. is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients. CRA offers services in two broad areas: litigation, regulatory, and financial consulting and management consulting. CRA operates in one business segment. CRA operates its business under its registered trade name, Charles River Associates. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of CRA International, Inc. and its wholly-owned subsidiaries (collectively the, "CRA" or "Company") which require consolidation after the elimination of intercompany accounts and transactions. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations, financial position, or cash flows. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with U.S. GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 30, 2023 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 29, 2024 (the “2023 Form 10-K”). Note 1 to the Consolidated Financial Statements included in Part II, Item 8, on the 2023 Form 10-K describes the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. Recent Accounting Standards Not Yet Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) . The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 also requires that a public entity that has a single reportable segment provide all disclosures required by these amendments and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for CRA for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. CRA plans to adopt the amendment during the fourth fiscal quarter of 2024. CRA expects the adoption of this ASU will impact its disclosures, but will not have a material effect on its consolidated financial statements. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) . The ASU requires disclosure of specific categories in the rate reconciliation, provides additional information for reconciling items that meet a quantitative threshold, and discloses the amount of income taxes paid disaggregated by federal, state, foreign taxes, and individual jurisdiction. ASU 2023-09 also requires income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. |
Revenues and Allowances
Revenues and Allowances | 6 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Allowances | Revenues and Allowances The contracts CRA enters into and operates under specify whether the projects are billed on a time-and-materials or a fixed-price basis. Time-and-materials contracts are typically used for litigation, regulatory, and financial consulting projects while fixed-price contracts are principally used for management consulting projects. In general, project costs are classified in costs of services (exclusive of depreciation and amortization) and are based on the direct salary of CRA’s employee consultants on the engagement, plus all direct expenses incurred to complete the project, including any amounts billed to CRA by its non-employee experts. Disaggregation of Revenue The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date Type of Contract June 29, July 1, June 29, July 1, Consulting services revenues: Fixed-price $ 29,292 $ 27,896 $ 59,373 $ 54,729 Time-and-materials 142,150 134,069 283,857 260,081 Total $ 171,442 $ 161,965 $ 343,230 $ 314,810 Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Fiscal Quarter Ended Fiscal Year-to-Date Geographic Breakdown June 29, July 1, June 29, July 1, Consulting services revenues: United States $ 138,601 $ 126,894 $ 280,805 $ 244,766 United Kingdom 22,161 26,396 43,315 52,045 Other 10,680 8,675 19,110 17,999 Total $ 171,442 $ 161,965 $ 343,230 $ 314,810 Reserves for Variable Consideration and Credit Risk Revenues from CRA's consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. Variable consideration reserves are based on specific price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates. Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheets. Adjustments to the reserves for variable consideration are included in revenues on the condensed consolidated statements of operations. The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Bad debt expense (recovery), net $ 18 $ 392 $ 681 $ 392 Reimbursable Expenses Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants, and other reimbursable expenses. CRA recovers substantially all of these costs. The following expenses are subject to reimbursement (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Reimbursable expenses $ 16,361 $ 17,252 $ 33,423 $ 31,233 Contract Balances from Contracts with Customers The timing of revenue recognition, billings, and cash collections results in accounts receivables, unbilled services, and contract liabilities on the consolidated balance sheets. Revenues recognized for services performed, but not yet billed to clients, are recorded as unbilled services. The following table presents the open and closing balances of CRA's accounts receivables, net and unbilled services, net (in thousands): June 29, December 30, December 31, Accounts receivable, net $ 140,141 $ 142,729 $ 143,644 Unbilled services, net $ 76,429 $ 56,827 $ 51,343 CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance-based or contingent fee, but is not yet entitled to receive a fee because certain events, such as completion of the measurement period or client approval, must occur. The contract assets balance was immaterial as of June 29, 2024, December 30, 2023, and December 31, 2022. When consideration is received, or such consideration is unconditionally due from a customer prior to transferring consulting services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after performance obligations have been satisfied and all revenue recognition criteria have been met. The following table presents the closing balances of CRA's contract liabilities (in thousands): June 29, December 30, December 31, Contract liabilities $ 2,153 $ 6,037 $ 6,977 CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Amounts included in contract liabilities at the beginning of the period $ 2,296 $ 2,832 $ 5,612 $ 6,194 Performance obligations satisfied in previous periods $ 3,394 $ 3,298 $ 3,515 $ 2,744 |
Forgivable Loans
Forgivable Loans | 6 Months Ended |
Jun. 29, 2024 | |
Forgivable Loans | |
Forgivable Loans | Forgivable Loans In order to attract and retain highly skilled professionals, CRA may issue forgivable loans to employees and non-employee experts, certain of which may be denominated in local currencies. A portion of these loans is collateralized. The forgivable loans have terms that are generally between two The following table presents forgivable loan activity for the respective periods (in thousands): June 29, December 30, Beginning balance $ 53,941 $ 56,456 Advances 24,130 23,342 Repayments (288) (1,816) Reclassifications from accrued expenses or to other assets (1) (6,743) — Amortization (2) (17,757) (24,198) Effects of foreign currency translation (61) 157 Ending balance $ 53,222 $ 53,941 Current portion of forgivable loans $ 14,213 $ 8,759 Non-current portion of forgivable loans $ 39,009 $ 45,182 _______________________________ (1) Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables. (2) During the quarter ended June 29, 2024, approximately $5.7 million of amortization was accelerated due to involuntary terminations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the fiscal year-to-date period ended June 29, 2024 are summarized as follows (in thousands): Goodwill, at December 30, 2023 $ 165,882 Accumulated goodwill impairment (71,893) Goodwill, net at December 30, 2023 93,989 Additions due to acquisitions — Foreign currency translation adjustment (134) Goodwill, net at June 29, 2024 $ 93,855 Goodwill, net at June 29, 2024 of $93.9 million, is comprised of goodwill of $165.7 million and accumulated impairment of $71.9 million. There were no impairment losses related to goodwill during the fiscal-year-to-date period ended June 29, 2024 or during the fiscal year ended December 30, 2023. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized using the straight-line method over their expected useful lives. The components of acquired identifiable intangible assets are as follows (in thousands): June 29, 2024 December 30, 2023 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 10 $ 15,300 $ (7,319) $ 7,981 $ 13,800 $ (6,604) $ 7,196 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 29, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): June 29, December 30, Compensation and related expenses $ 99,285 $ 143,647 Performance awards 1,671 16,556 Direct project accruals 3,194 1,704 Other 9,102 9,133 Total accrued expenses $ 113,252 $ 171,040 As of June 29, 2024 and December 30, 2023, approximately $75.6 million and $121.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.” |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the fiscal quarters ended June 29, 2024 and July 1, 2023, CRA’s effective income tax rate (“ETR”) was 32.0% and 30.1%, respectively. The ETR for the second quarter of fiscal 2024 was higher than the second quarter of fiscal 2023 primarily due to increases in estimated state apportionment and nondeductible executive compensation and a decrease in the U.S. benefit associated with the foreign-derived intangible income deduction, partially offset by having had a valuation allowance in the prior year that has now reversed. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share CRA calculates basic earnings per share using the two-class method. CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method. The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended June 29, 2024 and July 1, 2023. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all the net earnings for the period had been distributed. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended June 29, 2024 and July 1, 2023. The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Numerator: Net income — basic $ 6,538 $ 9,508 $ 20,229 $ 18,426 Less: net income attributable to participating shares 22 34 68 69 Net income — diluted $ 6,516 $ 9,474 $ 20,161 $ 18,357 Denominator: Weighted average shares outstanding — basic 6,834 6,983 $ 6,880 $ 7,051 Effect of dilutive stock options and restricted stock units 77 97 81 115 Weighted average shares outstanding — diluted 6,911 7,080 6,961 7,166 Net income per share: Basic $ 0.96 $ 1.36 $ 2.93 $ 2.61 Diluted $ 0.94 $ 1.34 $ 2.90 $ 2.56 For the fiscal quarter and fiscal year-to-date period ended June 29, 2024, there were no anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average outstanding shares. For the fiscal quarter and fiscal-year-to-date ended July 1, 2023, the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 17,120 and 4,329 shares, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following tables show CRA's financial instruments recorded in the condensed consolidated financial statements which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): June 29, 2024 Level 1 Level 2 Level 3 Assets: Money market mutual funds $ — $ — $ — Total Assets $ — $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 190 Total Liabilities $ — $ — $ 190 December 30, 2023 Level 1 Level 2 Level 3 Assets: Money market mutual funds $ — $ — $ — Total Assets $ — $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 190 Total Liabilities $ — $ — $ 190 The contingent consideration liability pertains to estimated future contingent consideration payments related to the acquisition of bioStrategies Group, Inc. during fiscal 2022. The following table summarizes the changes in the contingent consideration liability (in thousands): Fiscal Year-to-Date Period Ended Fiscal Year Ended June 29, 2024 December 30, 2023 Beginning balance $ 190 $ 1,056 Remeasurement of acquisition-related contingent consideration — (934) Accretion — 68 Ending balance $ 190 $ 190 |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement CRA is party to a Credit Agreement, dated as of August 19, 2022 (as amended, the "Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank. The Credit Agreement provides CRA with a $250.0 million revolving credit facility, which may be decreased at CRA's option to $200.0 million during the period from July 16 in a year through January 15 in the next year. Additionally, for the period from January 16 to July 15 of each calendar year, CRA may elect to not increase the revolving credit facility to $250.0 million. The revolving credit facility includes a $25.0 million sublimit for the issuance of letters of credit. Under the Credit Agreement, CRA must comply with various financial and non-financial covenants. The primary financial covenants consist of a maximum consolidated net leverage ratio of 3.0 to 1 and a minimum consolidated interest coverage ratio of 2.5 to 1. The primary non-financial covenants include, but are not limited to, restrictions on CRA's ability to incur future indebtedness, engage in acquisitions or dispositions, pay dividends or repurchase capital stock, and enter into business combinations. Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including CRA's failure to pay principal, interest or fees, or upon the breach of any covenant. As of June 29, 2024, CRA was in compliance with the covenants of the Credit Agreement. There were $87.0 million in borrowings outstanding under the revolving credit facility as of June 29, 2024 and no borrowings outstanding as of December 30, 2023. As of June 29, 2024, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.5 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As described in the previous note, CRA is party to standby letters of credit with its lenders in support of minimum future lease payments under certain operating leases for office space. CRA is subject to legal actions arising in the ordinary course of business. In management’s opinion, based on current knowledge, CRA believes it has adequate legal defenses or insurance coverage, or both, with respect to the eventuality of such actions. CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its financial position or results of operations . However, the outcome of such legal actions is inherently unpredictable and subject to inherent uncertainties. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 29, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 1, 2024, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.42 per common share, payable on September 13, 2024 to shareholders of record as of August 27, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 6,538 | $ 13,691 | $ 9,508 | $ 8,918 | $ 20,229 | $ 18,426 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Recent Accounting Standards Not Yet Adopted | Recent Accounting Standards Not Yet Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) . The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 also requires that a public entity that has a single reportable segment provide all disclosures required by these amendments and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for CRA for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. CRA plans to adopt the amendment during the fourth fiscal quarter of 2024. CRA expects the adoption of this ASU will impact its disclosures, but will not have a material effect on its consolidated financial statements. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) . The ASU requires disclosure of specific categories in the rate reconciliation, provides additional information for reconciling items that meet a quantitative threshold, and discloses the amount of income taxes paid disaggregated by federal, state, foreign taxes, and individual jurisdiction. ASU 2023-09 also requires income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. |
Revenues and Allowances (Tables
Revenues and Allowances (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregate CRA's revenue by type of contract and geographic location | The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date Type of Contract June 29, July 1, June 29, July 1, Consulting services revenues: Fixed-price $ 29,292 $ 27,896 $ 59,373 $ 54,729 Time-and-materials 142,150 134,069 283,857 260,081 Total $ 171,442 $ 161,965 $ 343,230 $ 314,810 Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Fiscal Quarter Ended Fiscal Year-to-Date Geographic Breakdown June 29, July 1, June 29, July 1, Consulting services revenues: United States $ 138,601 $ 126,894 $ 280,805 $ 244,766 United Kingdom 22,161 26,396 43,315 52,045 Other 10,680 8,675 19,110 17,999 Total $ 171,442 $ 161,965 $ 343,230 $ 314,810 |
Schedule of bad debt expense, net of recoveries | The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Bad debt expense (recovery), net $ 18 $ 392 $ 681 $ 392 |
Schedule of expenses are subject to reimbursement | The following expenses are subject to reimbursement (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Reimbursable expenses $ 16,361 $ 17,252 $ 33,423 $ 31,233 |
Schedule of opening and closing balances and result of changes in contract liability balance (in thousands) | The following table presents the closing balances of CRA's contract liabilities (in thousands): June 29, December 30, December 31, Contract liabilities $ 2,153 $ 6,037 $ 6,977 CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Amounts included in contract liabilities at the beginning of the period $ 2,296 $ 2,832 $ 5,612 $ 6,194 Performance obligations satisfied in previous periods $ 3,394 $ 3,298 $ 3,515 $ 2,744 |
Forgivable Loans (Tables)
Forgivable Loans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Forgivable Loans | |
Schedule of forgivable loan activity | The following table presents forgivable loan activity for the respective periods (in thousands): June 29, December 30, Beginning balance $ 53,941 $ 56,456 Advances 24,130 23,342 Repayments (288) (1,816) Reclassifications from accrued expenses or to other assets (1) (6,743) — Amortization (2) (17,757) (24,198) Effects of foreign currency translation (61) 157 Ending balance $ 53,222 $ 53,941 Current portion of forgivable loans $ 14,213 $ 8,759 Non-current portion of forgivable loans $ 39,009 $ 45,182 _______________________________ (1) Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables. (2) During the quarter ended June 29, 2024, approximately $5.7 million of amortization was accelerated due to involuntary terminations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the fiscal year-to-date period ended June 29, 2024 are summarized as follows (in thousands): Goodwill, at December 30, 2023 $ 165,882 Accumulated goodwill impairment (71,893) Goodwill, net at December 30, 2023 93,989 Additions due to acquisitions — Foreign currency translation adjustment (134) Goodwill, net at June 29, 2024 $ 93,855 |
Schedule of components of acquired identifiable intangible assets | The components of acquired identifiable intangible assets are as follows (in thousands): June 29, 2024 December 30, 2023 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 10 $ 15,300 $ (7,319) $ 7,981 $ 13,800 $ (6,604) $ 7,196 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): June 29, December 30, Compensation and related expenses $ 99,285 $ 143,647 Performance awards 1,671 16,556 Direct project accruals 3,194 1,704 Other 9,102 9,133 Total accrued expenses $ 113,252 $ 171,040 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Fiscal Quarter Ended Fiscal Year-to-Date June 29, July 1, June 29, July 1, Numerator: Net income — basic $ 6,538 $ 9,508 $ 20,229 $ 18,426 Less: net income attributable to participating shares 22 34 68 69 Net income — diluted $ 6,516 $ 9,474 $ 20,161 $ 18,357 Denominator: Weighted average shares outstanding — basic 6,834 6,983 $ 6,880 $ 7,051 Effect of dilutive stock options and restricted stock units 77 97 81 115 Weighted average shares outstanding — diluted 6,911 7,080 6,961 7,166 Net income per share: Basic $ 0.96 $ 1.36 $ 2.93 $ 2.61 Diluted $ 0.94 $ 1.34 $ 2.90 $ 2.56 |
Fair value of Financial Instr_2
Fair value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables show CRA's financial instruments recorded in the condensed consolidated financial statements which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): June 29, 2024 Level 1 Level 2 Level 3 Assets: Money market mutual funds $ — $ — $ — Total Assets $ — $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 190 Total Liabilities $ — $ — $ 190 December 30, 2023 Level 1 Level 2 Level 3 Assets: Money market mutual funds $ — $ — $ — Total Assets $ — $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 190 Total Liabilities $ — $ — $ 190 |
Summary of the changes in the contingent consideration liabilities | The following table summarizes the changes in the contingent consideration liability (in thousands): Fiscal Year-to-Date Period Ended Fiscal Year Ended June 29, 2024 December 30, 2023 Beginning balance $ 190 $ 1,056 Remeasurement of acquisition-related contingent consideration — (934) Accretion — 68 Ending balance $ 190 $ 190 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Description of Business and Fiscal Year (Details) | 6 Months Ended |
Jun. 29, 2024 segment area | |
Accounting Policies [Abstract] | |
Number of broad areas of consulting services | area | 2 |
Number of business segment | segment | 1 |
Revenues and Allowances - Disag
Revenues and Allowances - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Disaggregation of Revenue | ||||
Consulting services revenues | $ 171,442 | $ 161,965 | $ 343,230 | $ 314,810 |
United States | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 138,601 | 126,894 | 280,805 | 244,766 |
United Kingdom | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 22,161 | 26,396 | 43,315 | 52,045 |
Other | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 10,680 | 8,675 | 19,110 | 17,999 |
Fixed-price | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 29,292 | 27,896 | 59,373 | 54,729 |
Time-and-materials | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | $ 142,150 | $ 134,069 | $ 283,857 | $ 260,081 |
Revenues and Allowances - Reser
Revenues and Allowances - Reserves for Variable Consideration and Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Bad debt expense (recovery), net | $ 18 | $ 392 | $ 681 | $ 392 |
Reimbursable expenses | $ 16,361 | $ 17,252 | $ 33,423 | $ 31,233 |
Revenues and Allowances - Contr
Revenues and Allowances - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Contract liabilities: | ||||||
Contract liabilities | $ 2,153 | $ 2,153 | $ 6,037 | $ 6,977 | ||
Revenue recognized from: | ||||||
Amounts included in contract liabilities at the beginning of the period | 2,296 | $ 2,832 | 5,612 | $ 6,194 | ||
Performance obligations satisfied in previous periods | $ 3,394 | $ 3,298 | $ 3,515 | $ 2,744 |
Forgivable Loans - Narrative (D
Forgivable Loans - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Forgivable Loans [Line Items] | |
Forgivable loans, interest rate (up to) | 0.0500 |
Forgivable loans, accelerated amortization | $ (5,700) |
Minimum | |
Forgivable Loans [Line Items] | |
Forgivable loan, term | 2 years |
Maximum | |
Forgivable Loans [Line Items] | |
Forgivable loan, term | 6 years |
Forgivable Loans - Schedule of
Forgivable Loans - Schedule of Forgivable Loan Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Dec. 30, 2023 | |
Forgivable loan activity | ||
Beginning balance | $ 53,941 | $ 56,456 |
Advances | 24,130 | 23,342 |
Repayments | (288) | (1,816) |
Reclassifications from accrued expenses or to other assets | (6,743) | 0 |
Amortization (2) | (17,757) | (24,198) |
Effects of foreign currency translation | (61) | 157 |
Ending balance | 53,222 | 53,941 |
Current portion of forgivable loans | 14,213 | 8,759 |
Non-current portion of forgivable loans | $ 39,009 | $ 45,182 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Dec. 30, 2023 | |
Changes in the carrying amount of goodwill | ||
Goodwill at December 30, 2023 | $ 165,700 | $ 165,882 |
Accumulated goodwill impairment | (71,900) | $ (71,893) |
Balance at the beginning of the period, Goodwill, net | 93,989 | |
Additions due to acquisitions | 0 | |
Foreign currency translation adjustment | (134) | |
Balance at the end of the period, Goodwill, net | $ 93,855 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Acquired identifiable intangible assets | |||||
Goodwill | $ 93,855,000 | $ 93,855,000 | $ 93,989,000 | ||
Goodwill | 165,700,000 | 165,700,000 | 165,882,000 | ||
Accumulated impairment | 71,900,000 | 71,900,000 | 71,893,000 | ||
Goodwill, impairment loss | 0 | 0 | |||
Intangible assets impairment losses | 0 | $ 0 | |||
Customer relationships | |||||
Acquired identifiable intangible assets | |||||
intangible assets acquired | 1,500,000 | ||||
Amortization | $ 400,000 | $ 300,000 | $ 700,000 | $ 700,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Acquired and Amortization (Details) - Customer relationships - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Acquired identifiable intangible assets | ||
Useful Life (in years) | 10 years | |
Gross Carrying Amount | $ 15,300 | $ 13,800 |
Accumulated Amortization | (7,319) | (6,604) |
Net Carrying Amount | $ 7,981 | $ 7,196 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Compensation and related expenses | $ 99,285 | $ 143,647 |
Performance awards | 1,671 | 16,556 |
Direct project accruals | 3,194 | 1,704 |
Other | 9,102 | 9,133 |
Total accrued expenses | 113,252 | 171,040 |
Compensation and related expenses | ||
Accrued bonuses | $ 75,600 | $ 121,200 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 32% | 30.10% | 29.30% | 29.70% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator: | ||||
Net income — basic | $ 6,538 | $ 9,508 | $ 20,229 | $ 18,426 |
Less: net income attributable to participating shares | 22 | 34 | 68 | 69 |
Net income — diluted | $ 6,516 | $ 9,474 | $ 20,161 | $ 18,357 |
Denominator: | ||||
Weighted average shares outstanding — basic (in shares) | 6,834,000 | 6,983,000 | 6,880,000 | 7,051,000 |
Effect of dilutive stock options and restricted stock units (in shares) | 77,000 | 97,000 | 81,000 | 115,000 |
Weighted average shares outstanding — diluted (in shares) | 6,911,000 | 7,080,000 | 6,961,000 | 7,166,000 |
Basic (in dollars per share) | $ 0.96 | $ 1.36 | $ 2.93 | $ 2.61 |
Diluted (in dollars per share) | $ 0.94 | $ 1.34 | $ 2.90 | $ 2.56 |
Anti-dilutive share-based awards excluded (in shares) | 0 | 17,120,000 | 0 | 4,329,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Fair Value, Inputs, Level 1 | ||
ASSETS | ||
Money market mutual funds | $ 0 | $ 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Contingent consideration liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
ASSETS | ||
Money market mutual funds | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Contingent consideration liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
ASSETS | ||
Money market mutual funds | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Contingent consideration liability | 190 | 190 |
Total Liabilities | $ 190 | $ 190 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Change in Contingent Consideration Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Dec. 30, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 190 | $ 1,056 |
Remeasurement of acquisition-related contingent consideration | 0 | (934) |
Accretion | 0 | 68 |
Ending balance | $ 190 | $ 190 |
Credit Agreement (Details)
Credit Agreement (Details) | 6 Months Ended | ||
Jun. 29, 2024 USD ($) | Dec. 30, 2023 USD ($) | Aug. 19, 2022 USD ($) | |
Senior Loan Agreement | |||
Borrowings on revolving line of credit outstanding | $ 87,000,000 | $ 0 | |
Credit Agreement | |||
Senior Loan Agreement | |||
Financial covenants, maximum consolidated net leverage ratio | 3 | ||
Financial covenants, minimum consolidated interest coverage ratio | 2.5 | ||
Revolving credit facility | Credit Agreement | |||
Senior Loan Agreement | |||
Revolving credit facility, maximum capacity | $ 250,000,000 | ||
Amount available under revolving credit facility reduced | 200,000,000 | ||
Borrowings on revolving line of credit outstanding | $ 87,000,000 | $ 0 | |
Secured by letters of credit | Credit Agreement | |||
Senior Loan Agreement | |||
Revolving credit facility, maximum capacity | $ 25,000,000 | ||
Borrowings on revolving line of credit outstanding | $ 4,500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | |||||
Sep. 13, 2024 | Aug. 01, 2024 | Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | |
Subsequent Events | ||||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.36 | $ 0.36 | ||
Forecast | ||||||
Subsequent Events | ||||||
Common share quarterly cash dividend paid (in dollars per share) | $ 0.42 | |||||
Subsequent Events | ||||||
Subsequent Events | ||||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.42 |