EXHIBIT 99.1
Contact:
Chad Holmes |
| Jamie Bernard |
Chief Financial Officer |
| Senior Associate |
Charles River Associates |
| Sharon Merrill Associates, Inc. |
312-377-2322 |
| 617-542-5300 |
CHARLES RIVER ASSOCIATES (CRA) ANNOUNCES SECOND QUARTER 2015 FINANCIAL RESULTS AND CONTINUED EXECUTION OF ITS GROWTH STRATEGY
BOSTON, July 30, 2015 — Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial, and management consulting services, today announced financial results for the fiscal second quarter ended July 4, 2015.
“We are pleased with our second quarter financial results and the progress we are making in executing our growth strategy,” said Paul Maleh, CRA’s President and Chief Executive Officer. “Overcoming continued currency pressure, we achieved the following non-GAAP results: quarterly revenue of $75.6 million, gross margin of 33.5%, Adjusted EBITDA margin of 16.9%, and diluted EPS of $0.38. We also positioned the Company for growth in the quarters ahead through our ongoing recruiting efforts, all while maintaining a companywide utilization of 75%.”
“Our financial performance was led by the Antitrust & Competition Economics practice, which recorded its highest quarterly revenue ever, with strong contributions across both North America and Europe,” said Maleh. “In addition, the Financial Economics and Auctions & Competitive Bidding practices generated double-digit growth compared with a year ago.”
“We continue to invest in our business, welcoming senior-level talent to Antitrust & Competition Economics, Finance, and Marakon,” said Maleh. “Based on committed hires at both the junior and senior staff levels, we expect overall headcount to increase by approximately 8% to 10% by the end of the third quarter of fiscal 2015 from the second quarter-end of 447 consulting staff. These new hires are concentrated in areas with the most opportunities to generate revenue expansion, with a significant portion of the hiring directed toward our Antitrust & Competition Economics practice. We expect the higher headcount to improve company-wide staff leverage and drive revenue growth in the quarters ahead.”
“CRA’s outlook remains positive as project lead flow throughout the organization is healthy and the conversion rate for revenue generating projects continues to strengthen. Although the U.S. dollar continues to put downward pressure on the contributions of our international operations, we are pleased with our overall performance to date. On a constant currency basis relative to fiscal 2014,
we are expecting 2015 non-GAAP revenue in the range of $312 million to $320 million, and non-GAAP Adjusted EBITDA margin between 16.3% to 16.7%,” Maleh concluded.
Second Quarter Fiscal 2015 Results
Revenue for the second quarter of fiscal 2015 was $76.5 million, compared with $78.2 million for the fiscal second quarter ended June 28, 2014. Non-GAAP revenue for the second quarter of fiscal 2015 was $75.6 million, compared with $76.9 million for the second quarter of fiscal 2014.
Gross profit for the second quarter of fiscal 2015 was $25.9 million, or 33.8% of revenue, compared with $25.5 million, or 32.6% of revenue, for the second quarter of fiscal 2014. On a non-GAAP basis, gross profit for the second quarter of fiscal 2015 was $25.3 million, or 33.5% of revenue, compared with $24.6 million, or 32.0% of revenue, for the second quarter of fiscal 2014. This improvement was largely driven by the rate of reimbursable expenses, which equaled 9.8% of revenue on a non-GAAP basis during the second quarter of fiscal 2015 compared with 11.2% of revenue a year ago.
Adjusted EBITDA for the second quarter of fiscal 2015 was $12.5 million, or 16.3% of revenue, compared with $12.9 million, or 16.5% of revenue, for the second quarter of fiscal 2014. On a non-GAAP basis, Adjusted EBITDA for the second quarter of fiscal 2015 was $12.8 million, or 16.9% of revenue, compared with $12.9 million, or 16.8% of revenue, for the second quarter of fiscal 2014.
Net income for the second quarter of fiscal 2015 was $3.3 million, or $0.36 per diluted share, compared with $3.2 million, or $0.32 per diluted share, for the second quarter of fiscal 2014. Non-GAAP net income for the second quarter of fiscal 2015 was $3.5 million, or $0.38 per diluted share, compared with $3.2 million, or $0.32 per diluted share, for the second quarter of fiscal 2014.
On a constant currency basis relative to the second quarter of fiscal 2014, non-GAAP revenue would have increased by approximately $1.9 million to $77.5 million; non-GAAP gross profit as a percent of revenue would have decreased slightly to 33.4%; non-GAAP Adjusted EBITDA would have increased by approximately $0.5 million to $13.2 million or 17.0% of revenue; and non-GAAP net income would have increased by approximately $0.2 million to $3.7 million, or by approximately $0.02 per diluted share to $0.40 per diluted share. A description of the process for calculating the measures presented on a constant currency basis is contained under the heading “Non-GAAP Financial Measures” below.
A complete reconciliation between revenue, gross profit, net income and net income per diluted share, and the calculation of Adjusted EBITDA, on a GAAP and non-GAAP basis, for the second quarters and year-to-date periods of fiscal 2015 and fiscal 2014, are provided in the financial tables at the end of this release.
Conference Call Information and Prepared CFO Remarks
CRA will host a conference call this morning at 10:00 a.m. ET to discuss its second-quarter 2015 financial results. To listen to the live call, please visit the “Investor Relations” section of the Company’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 Chad Holmes under “Conference Call Materials” in the investor relations section on the Company’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 global consulting firm specializing in litigation, regulatory, financial, and management consulting. 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 and is celebrating its 50th year anniversary in 2015. 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 addition to reporting its financial results in accordance with U.S. generally accepted accounting principles, or GAAP, the Company has also provided in this release non-GAAP financial information. The Company believes that the use of non-GAAP measures in addition to GAAP measures is a useful method of evaluating its results of operations. The Company believes that presenting its financial results excluding the results of the Company’s NeuCo subsidiary and including a presentation of Adjusted EBITDA is important to investors and management because it is more indicative of the Company’s ongoing operating results and financial condition. These non-
GAAP financial measures should be considered in conjunction with, but not as a substitute for, the financial information presented in accordance with GAAP, and the expected results calculated in accordance with GAAP and reconciliations to those expected results should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Specifically, for the second quarter of fiscal 2015, the second quarter of fiscal 2014, the year to date period ended as of the second quarter of fiscal 2014, and its fiscal 2015 guidance, the Company has excluded NeuCo’s results, and for the year to date period ended as of the second quarter of fiscal 2015, the Company has excluded NeuCo’s results and a non-cash charge relating to an increased liability for a future contingent consideration payment related to a prior acquisition. Also, in calculating “Adjusted EBITDA” from income (loss) from operations, the Company has excluded the following non-cash expenses: depreciation and amortization, share-based compensation expenses, and amortization of forgivable loans.
Finally, the Company also believes that fluctuations in foreign currency exchange rates can significantly affect its financial results and provides a constant currency presentation to supplement disclosures regarding its results of operations and performance. The Company calculates constant currency amounts relative to a prior period, which also constitute non-GAAP financial information, by converting its current period local currency financial results using the prior period exchange rates. The Company has presented in this press release its non-GAAP revenue, gross profit, net income, earnings per diluted share and Adjusted EBITDA for the second quarter of fiscal 2015 on a constant currency basis relative to the second quarter of fiscal 2014, and its guidance for fiscal 2015 non-GAAP revenue and Adjusted EBITDA on a constant currency basis relative to fiscal 2014.
SAFE HARBOR STATEMENT
Statements in this press release concerning our future business, operating results and financial condition, including statements regarding increasing our headcount and any resulting effects on our performance, or containing any guidance regarding our future revenues, profits or other financial measures, and statements using the terms “expect,” “outlook,” “position,” “anticipate,” “believe” or similar expressions, are “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. 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 factors and uncertainties. Information contained in these forward-looking
statements is inherently uncertain, and actual performance and results may differ materially due to many important factors. Our actual non-GAAP revenue and non-GAAP Adjusted EBITDA margin in 2015 could differ materially from the guidance presented herein as a result of, including, among other things, the loss of key employee consultants or non-employee experts; their failure to generate engagements for us; our inability to attract or hire qualified consultants or to utilize existing consultants; the unpredictable nature of litigation-related projects; dependence on the growth of our management consulting practice; the potential loss of clients; changes in the law that affect our practice areas; the demand environment; global economic conditions; foreign exchange rate fluctuations; intense competition; and the timing of and amount of new hires. In addition to these factors, other factors that could cause our actual performance or results to differ materially from any forward-looking statements include, among others, our restructuring costs and attributable annual cost savings, changes in our effective tax rate, share dilution from our stock-based compensation, completing acquisitions and factors related to our completed acquisitions, including integration of personnel, clients and offices and unanticipated expenses and liabilities, the risk of impairment write downs to our intangible assets, including goodwill, if our enterprise value declines below certain levels, risks associated with acquisitions we may make in the future, risks inherent in international operations, changes in accounting standards, rules and regulations, management of new offices, the ability of customers to terminate engagements with us on short notice, our ability to integrate successfully new consultants into our practice, our ability to collect on forgivable loans should any become due, general economic conditions, risks inherent in litigation, the performance of our NeuCo subsidiary, and professional liability. Further information on these and other potential factors that could affect our financial results is included in our periodic filings with the Securities and Exchange Commission, including risks under the heading “Risk Factors.” We cannot guarantee any future results, levels of activity, performance or achievement. 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INCLUDING A RECONCILIATION TO NON-GAAP RESULTS
FOR THE QUARTER ENDED JULY 4, 2015 COMPARED TO THE QUARTER ENDED JUNE 28, 2014
(In thousands, except per share data)
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| Quarter Ended July 4, 2015 |
| Quarter Ended June 28, 2014 |
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| GAAP Results |
| GAAP % |
| Adjustments |
| Non-GAAP |
| Non-GAAP |
| GAAP Results |
| GAAP % |
| Adjustments to |
| Non-GAAP |
| Non-GAAP % of |
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Revenues |
| $ | 76,535 |
| 100.0 | % | $ | 937 |
| $ | 75,598 |
| 100.0 | % | $ | 78,184 |
| 100.0 | % | $ | 1,309 |
| $ | 76,875 |
| 100.0 | % |
Costs of services |
| 50,675 |
| 66.2 | % | 365 |
| 50,310 |
| 66.5 | % | 52,669 |
| 67.4 | % | 400 |
| 52,269 |
| 68.0 | % | ||||||
Gross profit |
| 25,860 |
| 33.8 | % | 572 |
| 25,288 |
| 33.5 | % | 25,515 |
| 32.6 | % | 909 |
| 24,606 |
| 32.0 | % | ||||||
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Selling, general and administrative expenses |
| 18,667 |
| 24.4 | % | 830 |
| 17,837 |
| 23.6 | % | 17,463 |
| 22.3 | % | 925 |
| 16,538 |
| 21.5 | % | ||||||
Depreciation and amortization |
| 1,545 |
| 2.0 | % | — |
| 1,545 |
| 2.0 | % | 1,559 |
| 2.0 | % | — |
| 1,559 |
| 2.0 | % | ||||||
Income (loss) from operations |
| 5,648 |
| 7.4 | % | (258 | ) | 5,906 |
| 7.8 | % | 6,493 |
| 8.3 | % | (16 | ) | 6,509 |
| 8.5 | % | ||||||
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Interest and other income (expense), net |
| (257 | ) | -0.3 | % | (14 | ) | (243 | ) | -0.3 | % | (159 | ) | -0.2 | % | 11 |
| (170 | ) | -0.2 | % | ||||||
Income (loss) before provision for income taxes |
| 5,391 |
| 7.0 | % | (272 | ) | 5,663 |
| 7.5 | % | 6,334 |
| 8.1 | % | (5 | ) | 6,339 |
| 8.2 | % | ||||||
Provision for income taxes |
| (2,189 | ) | -2.9 | % | (7 | ) | (2,182 | ) | -2.9 | % | (3,167 | ) | -4.1 | % | (41 | ) | (3,126 | ) | -4.1 | % | ||||||
Net income (loss) |
| 3,202 |
| 4.2 | % | (279 | ) | 3,481 |
| 4.6 | % | 3,167 |
| 4.1 | % | (46 | ) | 3,213 |
| 4.2 | % | ||||||
Net loss attributable to noncontrolling interest, net of tax |
| 123 |
| 0.2 | % | 123 |
| — |
| 0.0 | % | 21 |
| 0.0 | % | 21 |
| — |
| 0.0 | % | ||||||
Net income (loss) attributable to CRA International, Inc. |
| $ | 3,325 |
| 4.3 | % | $ | (156 | ) | $ | 3,481 |
| 4.6 | % | $ | 3,188 |
| 4.1 | % | $ | (25 | ) | $ | 3,213 |
| 4.2 | % |
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Net income per share attributable to CRA International, Inc.: |
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Basic |
| $ | 0.37 |
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| $ | 0.39 |
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| $ | 0.32 |
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| $ | 0.32 |
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Diluted |
| $ | 0.36 |
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| $ | 0.38 |
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| $ | 0.32 |
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| $ | 0.32 |
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Weighted average number of shares outstanding: |
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Basic |
| 9,034 |
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| 9,034 |
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| 9,919 |
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| 9,919 |
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Diluted |
| 9,253 |
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| 9,253 |
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| 10,026 |
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| 10,026 |
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(1) These adjustments include activity related to NeuCo in the Company’s GAAP results.
CRA INTERNATIONAL, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS INCLUDING A RECONCILIATION TO NON-GAAP RESULTS
FOR THE YEAR-TO-DATE PERIOD ENDED JULY 4, 2015 COMPARED TO THE YEAR-TO-DATE PERIOD ENDED JUNE 28, 2014
(In thousands, except per share data)
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| Year-To-Date Period Ended July 4, 2015 |
| Year-To-Date Period Ended June 28, 2014 |
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| GAAP Results |
| GAAP % of |
| Adjustments to |
| Adjustments to |
| Non-GAAP |
| Non-GAAP |
| GAAP Results |
| GAAP % of |
| Adjustments to |
| Non-GAAP |
| Non-GAAP |
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Revenues |
| $ | 154,574 |
| 100.0 | % | $ | — |
| $ | 1,804 |
| $ | 152,770 |
| 100.0 | % | $ | 154,429 |
| 100.0 | % | $ | 2,473 |
| $ | 151,956 |
| 100.0 | % |
Costs of services |
| 104,494 |
| 67.6 | % | 833 |
| 706 |
| 102,955 |
| 67.4 | % | 104,535 |
| 67.7 | % | 764 |
| 103,771 |
| 68.3 | % | |||||||
Gross profit |
| 50,080 |
| 32.4 | % | (833 | ) | 1,098 |
| 49,815 |
| 32.6 | % | 49,894 |
| 32.3 | % | 1,709 |
| 48,185 |
| 31.7 | % | |||||||
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Selling, general and administrative expenses |
| 36,750 |
| 23.8 | % | — |
| 1,633 |
| 35,117 |
| 23.0 | % | 34,623 |
| 22.4 | % | 1,887 |
| 32,736 |
| 21.5 | % | |||||||
Depreciation and amortization |
| 3,206 |
| 2.1 | % | — |
| — |
| 3,206 |
| 2.1 | % | 3,149 |
| 2.0 | % | — |
| 3,149 |
| 2.1 | % | |||||||
Income (loss) from operations |
| 10,124 |
| 6.5 | % | (833 | ) | (535 | ) | 11,492 |
| 7.5 | % | 12,122 |
| 7.8 | % | (178 | ) | 12,300 |
| 8.1 | % | |||||||
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Interest and other income (expense), net |
| (102 | ) | -0.1 | % | — |
| 584 |
| (686 | ) | -0.4 | % | (404 | ) | -0.3 | % | (6 | ) | (398 | ) | -0.3 | % | |||||||
Income (loss) before provision for income taxes and noncontrolling interest |
| 10,022 |
| 6.5 | % | (833 | ) | 49 |
| 10,806 |
| 7.1 | % | 11,718 |
| 7.6 | % | (184 | ) | 11,902 |
| 7.8 | % | |||||||
Provision for income taxes |
| (3,921 | ) | -2.5 | % | — |
| (55 | ) | (3,866 | ) | -2.5 | % | (5,243 | ) | -3.4 | % | (94 | ) | (5,149 | ) | -3.4 | % | |||||||
Net income (loss) |
| 6,101 |
| 3.9 | % | (833 | ) | (6 | ) | 6,940 |
| 4.5 | % | 6,475 |
| 4.2 | % | (278 | ) | 6,753 |
| 4.4 | % | |||||||
Net loss attributable to noncontrolling interest, net of tax |
| 3 |
| 0.0 | % | — |
| 3 |
| — |
| 0.0 | % | 123 |
| 0.1 | % | 123 |
| — |
| 0.0 | % | |||||||
Net income (loss) attributable to CRA International, Inc. |
| $ | 6,104 |
| 3.9 | % | $ | (833 | ) | $ | (3 | ) | $ | 6,940 |
| 4.5 | % | $ | 6,598 |
| 4.3 | % | $ | (155 | ) | $ | 6,753 |
| 4.4 | % |
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Net income per share attributable to CRA International, Inc.: |
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Basic |
| $ | 0.66 |
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| $ | 0.76 |
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| $ | 0.66 |
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| $ | 0.68 |
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Diluted |
| $ | 0.65 |
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| $ | 0.74 |
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| $ | 0.66 |
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| $ | 0.67 |
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Weighted average number of shares outstanding: |
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Basic |
| 9,112 |
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| 9,112 |
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| 9,974 |
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| 9,974 |
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Diluted |
| 9,328 |
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| 9,328 |
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| 10,067 |
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| 10,067 |
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(1) These adjustments include activity related to the increase of the liability for future contingent consideration payments related to a prior acquisition.
(2) These adjustments include activity related to NeuCo in the Company’s GAAP results.
CRA INTERNATIONAL, INC.
UNAUDITED ADJUSTED EBITDA INCLUDING A RECONCILIATION TO NON-GAAP ADJUSTED EBITDA
FOR THE QUARTER AND YEAR-TO-DATE PERIOD ENDED JULY 4, 2015 COMPARED TO THE QUARTER AND YEAR-TO-DATE PERIOD ENDED JUNE 28, 2014
(In thousands)
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| Adjustments to |
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| GAAP |
| GAAP Results |
| Adjustments to |
| Non-GAAP |
| Non-GAAP |
| GAAP |
| GAAP |
| Adjustments to |
| Non-GAAP |
| Non-GAAP |
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| % of |
| Contingent |
| GAAP Results |
| Quarter Ended |
| % of |
| Quarter Ended |
| % of |
| GAAP Results |
| Quarter Ended |
| % of |
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| July 4, 2015 |
| Revenues |
| Liability (1) |
| NeuCo (2) |
| July 4, 2015 |
| Revenues |
| June 28, 2014 |
| Revenues |
| NeuCo (2) |
| June 28, 2014 |
| Revenues |
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Income (loss) from operations |
| $ | 5,648 |
| 7.4 | % | $ | — |
| $ | (258 | ) | $ | 5,906 |
| 7.8 | % | $ | 6,493 |
| 8.3 | % | $ | (16 | ) | $ | 6,509 |
| 8.5 | % |
Depreciation and amortization |
| 1,545 |
| 2.0 | % | — |
| — |
| 1,545 |
| 2.0 | % | 1,559 |
| 2.0 | % | — |
| 1,559 |
| 2.0 | % | |||||||
EBITDA |
| 7,193 |
| 9.4 | % | — |
| (258 | ) | 7,451 |
| 9.9 | % | 8,052 |
| 10.3 | % | (16 | ) | 8,068 |
| 10.5 | % | |||||||
Share-based compensation expenses |
| 1,389 |
| 1.8 | % | — |
| — |
| 1,389 |
| 1.8 | % | 1,289 |
| 1.6 | % | — |
| 1,289 |
| 1.7 | % | |||||||
Amortization of forgivable loans |
| 3,926 |
| 5.1 | % | — |
| — |
| 3,926 |
| 5.2 | % | 3,543 |
| 4.5 | % | — |
| 3,543 |
| 4.6 | % | |||||||
Adjusted EBITDA |
| $ | 12,508 |
| 16.3 | % | $ | — |
| $ | (258 | ) | $ | 12,766 |
| 16.9 | % | $ | 12,884 |
| 16.5 | % | $ | (16 | ) | $ | 12,900 |
| 16.8 | % |
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| Non-GAAP |
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| Year-to-Date |
| GAAP |
| GAAP Results |
| Adjustments to |
| Year-to-Date |
| Non-GAAP |
| Year-to-Date |
| GAAP |
| Adjustments to |
| Year-to-Date |
| Non-GAAP |
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| Period Ended |
| % of |
| Contingent |
| GAAP Results |
| Period Ended |
| % of |
| Period Ended |
| % of |
| GAAP Results |
| Period Ended |
| % of |
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| July 4, 2015 |
| Revenues |
| Liability (1) |
| NeuCo (2) |
| July 4, 2015 |
| Revenues |
| June 28, 2014 |
| Revenues |
| NeuCo (2) |
| June 28, 2014 |
| Revenues |
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Income (loss) from operations |
| $ | 10,124 |
| 6.5 | % | $ | (833 | ) | $ | (535 | ) | $ | 11,492 |
| 7.5 | % | $ | 12,122 |
| 7.8 | % | $ | (178 | ) | $ | 12,300 |
| 8.1 | % |
Depreciation and amortization |
| 3,206 |
| 2.1 | % | — |
| — |
| 3,206 |
| 2.1 | % | 3,149 |
| 2.0 | % | — |
| 3,149 |
| 2.1 | % | |||||||
EBITDA |
| 13,330 |
| 8.6 | % | (833 | ) | (535 | ) | 14,698 |
| 9.6 | % | 15,271 |
| 9.9 | % | (178 | ) | 15,449 |
| 10.2 | % | |||||||
Share-based compensation expenses |
| 2,998 |
| 1.9 | % | — |
| — |
| 2,998 |
| 2.0 | % | 2,616 |
| 1.7 | % | — |
| 2,616 |
| 1.7 | % | |||||||
Amortization of forgivable loans |
| 7,500 |
| 4.9 | % | — |
| — |
| 7,500 |
| 4.9 | % | 6,922 |
| 4.5 | % | — |
| 6,922 |
| 4.6 | % | |||||||
Adjusted EBITDA |
| $ | 23,828 |
| 15.4 | % | $ | (833 | ) | $ | (535 | ) | $ | 25,196 |
| 16.5 | % | $ | 24,809 |
| 16.1 | % | $ | (178 | ) | $ | 24,987 |
| 16.4 | % |
(1) These adjustments include activity related to the increase of the liability for future contingent consideration payments related to a prior acquisition.
(2) These adjustments include activity related to NeuCo in the Company’s GAAP results.
CRA INTERNATIONAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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| July 4, |
| January 3, |
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| 2015 |
| 2015 |
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Assets |
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Cash and cash equivalents |
| $ | 15,816 |
| $ | 48,199 |
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Accounts receivable and unbilled, net |
| 87,524 |
| 83,165 |
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Other current assets |
| 40,180 |
| 33,803 |
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Total current assets |
| 143,520 |
| 165,167 |
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Property and equipment, net |
| 23,509 |
| 14,696 |
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Goodwill and intangible assets, net |
| 86,383 |
| 87,060 |
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Other assets |
| 42,975 |
| 48,089 |
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Total assets |
| $ | 296,387 |
| $ | 315,012 |
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Liabilities and shareholders’ equity |
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Current liabilities |
| $ | 65,500 |
| $ | 88,394 |
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Long-term liabilities |
| 15,821 |
| 11,914 |
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Total liabilities |
| 81,321 |
| 100,308 |
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Total shareholders’ equity |
| 215,066 |
| 214,704 |
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Total liabilities and shareholders’ equity |
| $ | 296,387 |
| $ | 315,012 |
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CRA INTERNATIONAL, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
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| Fiscal Year-to-Date |
| Fiscal Year-to-Date |
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| July 4, |
| June 28, |
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| 2015 |
| 2014 |
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Operating activities: |
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Net income |
| $ | 6,101 |
| $ | 6,475 |
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Adjustments to reconcile net income to net cash used in operating activities, net of effect of acquired businesses: |
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Non-cash items, net |
| 9,677 |
| 3,768 |
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Accounts receivable and unbilled services |
| (5,228 | ) | (8,621 | ) | ||
Working capital items, net |
| (27,114 | ) | (16,792 | ) | ||
Net cash used in operating activities |
| (16,564 | ) | (15,170 | ) | ||
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Investing activities: |
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Consideration relating to acquisitions, net |
| — |
| (1,537 | ) | ||
Purchase of property and equipment |
| (8,492 | ) | (1,358 | ) | ||
Collections on notes receivable |
| 1,560 |
| 14 |
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Payments on notes receivable |
| (40 | ) | — |
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Net cash used in investing activities |
| (6,972 | ) | (2,881 | ) | ||
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Financing activities: |
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Issuance of common stock, principally stock option exercises |
| 105 |
| — |
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Payments on notes payable |
| (300 | ) | (26 | ) | ||
Borrowings under line of credit |
| 4,000 |
| — |
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Repayments under line of credit |
| (4,000 | ) | — |
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Tax withholding payments reimbursed by restricted shares |
| (111 | ) | (143 | ) | ||
Excess tax benefits from share-based compensation |
| 87 |
| — |
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Repurchase of common stock |
| (7,968 | ) | (5,355 | ) | ||
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Net cash used in financing activities |
| (8,187 | ) | (5,524 | ) | ||
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Effect of foreign exchange rates on cash and cash equivalents |
| (660 | ) | (62 | ) | ||
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Net decrease in cash and cash equivalents |
| (32,383 | ) | (23,637 | ) | ||
Cash and cash equivalents at beginning of period |
| 48,199 |
| 51,251 |
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Cash and cash equivalents at end of period |
| $ | 15,816 |
| $ | 27,614 |
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Supplemental cash flow information: |
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Cash paid for income taxes |
| $ | 5,000 |
| $ | 8,600 |
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Cash paid for interest |
| $ | 162 |
| $ | 189 |
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Common stock issued for acquired business |
| $ | 42 |
| $ | 427 |
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Purchased property and equipment not yet paid for |
| $ | 2,998 |
| $ | — |
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