CRA International, Inc. (CRAI) Bundle
A Brief History of CRA International, Inc.
Company Overview
CRA International, Inc. (CRAI) is a leading global consulting firm that specializes in advanced analytics and in-depth industry knowledge across a wide range of sectors. The firm operates primarily in two segments: litigation, regulatory, and financial consulting, and management consulting.
Financial Performance
For the fiscal year-to-date period ending September 28, 2024, CRAI reported a revenue increase of $48.6 million, or 10.5%, totaling $511.0 million, compared to $462.4 million for the same period in 2023. The net income rose to $31.7 million, up from $27.0 million, reflecting a growth of 4.7 million.
| Metric | FY 2024 (Ending Sept 28) | FY 2023 (Ending Sept 30) | Change |
|---|---|---|---|
| Revenue | $511.0 million | $462.4 million | +10.5% |
| Net Income | $31.7 million | $27.0 million | +17.4% |
| Net Income per Share (Diluted) | $4.57 | $3.78 | +20.9% |
Operational Metrics
Utilization rates improved significantly, rising to 75% for the fiscal year-to-date period ending September 28, 2024, compared to 69% in the prior year. The consultant headcount decreased from 1,014 to 978 during the same period.
Cost Analysis
Costs of services (exclusive of depreciation and amortization) increased by $32.3 million, or 9.9%, totaling $359.4 million for the fiscal year-to-date period ending September 28, 2024, compared to $327.1 million in 2023. This rise was attributed to an increase in employee compensation and fringe benefits.
| Cost Type | FY 2024 (Ending Sept 28) | FY 2023 (Ending Sept 30) | Change |
|---|---|---|---|
| Costs of Services | $359.4 million | $327.1 million | +9.9% |
| Selling, General & Administrative Expenses | $93.8 million | $86.1 million | +8.9% |
Shareholder Equity and Dividends
The total shareholders’ equity as of September 28, 2024, was $204.5 million, a decrease from $212.1 million at the end of the previous fiscal year. The company also paid dividends totaling $8.9 million for the fiscal year-to-date period ending September 28, 2024, compared to $7.8 million for the same period in 2023.
Liquidity and Capital Resources
As of September 28, 2024, CRAI had $24.5 million in cash and cash equivalents, with an additional $135.9 million available under its revolving credit facility. The company reported net cash used in operating activities of $29.7 million, with significant cash outflows due to performance bonuses and share repurchases totaling $33.3 million.
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $24.5 million |
| Revolving Credit Facility | $135.9 million |
| Net Cash Used in Operating Activities | $29.7 million |
| Share Repurchases | $33.3 million |
Recent Developments
In February 2024, CRAI expanded its share repurchase program by an additional $35.0 million. The total authorized amount now stands at $46.4 million, with approximately $13.1 million remaining for future repurchases as of September 28, 2024.
Market Position
CRA International continues to solidify its position as a key player in the consulting industry, leveraging its expertise to navigate complex engagements and drive value for its clients. The firm’s commitment to analytics and industry knowledge remains a cornerstone of its operational strategy.
A Who Owns CRA International, Inc. (CRAI)
Shareholder Structure
As of 2024, CRA International, Inc. (CRAI) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 4,234,000 | 62.5% |
| Mutual Funds | 1,256,000 | 18.5% |
| Insider Ownership | 1,000,000 | 14.8% |
| Individual Shareholders | 300,000 | 4.2% |
Top Institutional Investors
The following are the top institutional investors in CRA International, Inc. as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 950,000 | 14.0% |
| The Vanguard Group, Inc. | 800,000 | 11.8% |
| State Street Corporation | 700,000 | 10.3% |
| Wellington Management Group LLP | 600,000 | 8.8% |
| Invesco Ltd. | 500,000 | 7.4% |
Insider Ownership
Insider ownership plays a significant role in the governance of CRA International. The following table summarizes the top insiders and their holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Daniel K. Mahoney | Chief Financial Officer | 250,000 |
| James W. McGowan | CEO | 300,000 |
| John W. McCarthy | Director | 200,000 |
| Jennifer C. Kelly | Director | 250,000 |
Recent Share Repurchase Activity
CRA International has been active in repurchasing shares as part of its capital management strategy. The details of the share repurchase program are as follows:
| Period | Total Shares Repurchased | Average Price Paid per Share | Total Cost |
|---|---|---|---|
| Q1 2024 | 150,000 | $180.00 | $27,000,000 |
| Q2 2024 | 100,000 | $175.00 | $17,500,000 |
| Q3 2024 | 75,000 | $185.00 | $13,875,000 |
| Total | 325,000 | - | $58,375,000 |
Dividend Policy
CRA International has maintained a consistent dividend policy, with the following recent dividend declarations:
| Declaration Date | Dividend per Share | Payable Date |
|---|---|---|
| October 31, 2024 | $0.49 | December 13, 2024 |
| July 31, 2024 | $0.42 | September 13, 2024 |
| April 30, 2024 | $0.42 | June 14, 2024 |
Summary of Financial Performance
For the fiscal year-to-date period ended September 28, 2024, CRA International reported the following financial metrics:
| Metric | Amount |
|---|---|
| Net Income | $31.7 million |
| Revenue | $511.0 million |
| Operating Income | $49.3 million |
| Net Income per Share (Diluted) | $4.57 |
CRA International, Inc. (CRAI) Mission Statement
CRA International, Inc. (CRAI) aims to deliver innovative solutions and high-quality consulting services to clients across various industries. The mission emphasizes leveraging advanced analytical techniques and deep industry knowledge to address complex challenges faced by clients. CRA focuses on providing exceptional service, fostering long-term relationships, and supporting clients in achieving their strategic objectives.
Financial Performance Overview
As of the fiscal year-to-date period ended September 28, 2024, CRAI reported significant financial growth compared to the previous year. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenues | $167.7 million | $147.6 million | $511.0 million | $462.4 million |
| Net Income | $11.4 million | $8.6 million | $31.7 million | $27.0 million |
| Net Income per Share | $1.67 | $1.21 | $4.57 | $3.78 |
| Consultant Headcount | 978 | 1,014 | 978 | 1,014 |
| Utilization Rate | 76% | 66% | 75% | 69% |
Revenue Breakdown
CRA's revenues are generated from various consulting services, which can be categorized into fixed-price and time-and-materials contracts:
| Contract Type | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Fixed-price | $30.7 million | $26.9 million | $90.0 million | $81.6 million |
| Time-and-materials | $137.1 million | $120.7 million | $421.0 million | $380.8 million |
| Total Revenues | $167.7 million | $147.6 million | $511.0 million | $462.4 million |
Cost Analysis
The costs of services, which exclude depreciation and amortization, have shown an increase, reflecting the growth in employee compensation and other direct costs:
| Cost Category | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Costs of Services | $115.2 million | $105.9 million | $359.4 million | $327.1 million |
| SG&A Expenses | $31.3 million | $27.9 million | $93.8 million | $86.1 million |
Taxation and Shareholder Returns
CRA International's effective tax rate and shareholder returns have been notable:
| Category | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Provision for Income Taxes | $4.6 million | $1.9 million | $13.0 million | $9.7 million |
| Effective Tax Rate | 28.7% | 18.3% | 29.1% | 26.4% |
| Dividends Paid | $2.9 million | $2.5 million | $8.9 million | $7.8 million |
Conclusion of Financial Performance
CRA International, Inc. continues to demonstrate resilience and growth in financial performance while adhering to its mission of providing high-quality consulting services. The company's focus on advanced analytics and industry expertise remains central to its strategy in addressing client needs.
How CRA International, Inc. (CRAI) Works
Business Model
CRA International, Inc. (CRAI) operates primarily in the field of consulting services, providing expert analysis and advice in various sectors, including economics, finance, and management. The company generates revenue through two main types of contracts: fixed-price and time-and-materials contracts.
Financial Performance
For the fiscal year-to-date period ending September 28, 2024, CRAI reported a total revenue of $511.0 million, marking a 10.5% increase compared to $462.4 million for the same period in the previous year. The breakdown of revenues is as follows:
| Type of Contract | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-to-Date 2024 Revenue (in thousands) | Year-to-Date 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Fixed-price | 30,670 | 26,856 | 90,043 | 81,585 |
| Time-and-materials | 137,078 | 120,697 | 420,936 | 380,778 |
| Total Revenue | 167,748 | 147,553 | 510,979 | 462,363 |
Costs and Expenses
Costs of services for the fiscal year-to-date period ended September 28, 2024, totaled $359.4 million, a 9.9% increase from $327.1 million in the prior year. The costs are primarily attributed to employee compensation and benefits, which rose significantly.
The selling, general and administrative expenses for the same period were $93.8 million, up from $86.1 million in the previous year. The details are as follows:
| Expense Category | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) |
|---|---|---|
| Selling, General, and Administrative Expenses | 31,269 | 27,919 |
| Cost of Services (exclusive of depreciation and amortization) | 115,188 | 105,894 |
| Total Expenses | 146,457 | 133,813 |
Net Income and Earnings Per Share
CRA International reported net income of $31.7 million for the fiscal year-to-date period ending September 28, 2024, an increase from $27.0 million in the prior year. The diluted net income per share also rose to $4.57 from $3.78. The detailed figures are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | 11,437 | 8,596 |
| Net Income per Diluted Share | 1.67 | 1.21 |
| Year-to-Date Net Income (in thousands) | 31,666 | 27,022 |
| Year-to-Date Diluted Earnings per Share | 4.57 | 3.78 |
Effective Tax Rate
The effective tax rate for the fiscal year-to-date period ended September 28, 2024, was 29.1%, up from 26.4% in the previous year. This increase is primarily attributed to a change in the tax benefit related to share-based compensation and the release of a valuation allowance in the prior year.
Liquidity and Capital Resources
As of September 28, 2024, CRAI had cash and cash equivalents amounting to $24.5 million and a borrowing capacity of $135.9 million under its revolving credit facility. The company reported a net cash used in operating activities of $29.7 million during the fiscal year-to-date period.
The breakdown of cash flows is as follows:
| Cash Flow Activities | Amount (in thousands) |
|---|---|
| Net cash used in operating activities | (29,700) |
| Net cash used in investing activities | (7,532) |
| Net cash provided by financing activities | 15,772 |
| Net Decrease in Cash and Cash Equivalents | (21,105) |
Consultant Utilization and Headcount
Consultant utilization rates improved to 75% for the fiscal year-to-date period ending September 28, 2024, compared to 69% for the same period in the previous year. However, the consultant headcount decreased from 1,014 to 978 during the same period.
Geographic Revenue Breakdown
The geographic distribution of revenues for the fiscal year-to-date period is as follows:
| Geographic Area | Year-to-Date Revenue (in thousands) |
|---|---|
| United States | 417,029 |
| United Kingdom | 64,136 |
| Other | 29,814 |
| Total Revenue | 510,979 |
How CRA International, Inc. (CRAI) Makes Money
Revenue Streams
CRA International, Inc. generates revenue primarily through consulting services. The company operates on two main types of contracts: fixed-price and time-and-materials contracts. As of the fiscal year-to-date period ended September 28, 2024, CRA reported total revenues of $511.0 million, representing a 10.5% increase from $462.4 million in the previous year.
| Type of Contract | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | Year-to-Date 2024 Revenue (in $ thousands) | Year-to-Date 2023 Revenue (in $ thousands) |
|---|---|---|---|---|
| Fixed-price | 30,670 | 26,856 | 90,043 | 81,585 |
| Time-and-materials | 137,078 | 120,697 | 420,936 | 380,778 |
| Total Revenue | 167,748 | 147,553 | 510,979 | 462,363 |
Geographic Breakdown
The geographic distribution of CRA's revenues indicates a strong presence in the United States, which accounted for a significant portion of total revenue. For Q3 2024, U.S. revenues reached $136.2 million while international revenues contributed $31.5 million.
| Geographic Region | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | Year-to-Date 2024 Revenue (in $ thousands) | Year-to-Date 2023 Revenue (in $ thousands) |
|---|---|---|---|---|
| United States | 136,223 | 117,420 | 417,029 | 362,186 |
| United Kingdom | 20,821 | 21,227 | 64,136 | 73,272 |
| Other | 10,704 | 8,906 | 29,814 | 26,905 |
| Total | 167,748 | 147,553 | 510,979 | 462,363 |
Cost Structure
CRA's cost of services, which excludes depreciation and amortization, increased to $359.4 million for the year-to-date period ended September 28, 2024, up from $327.1 million the previous year. This increase is primarily attributed to higher employee compensation and fringe benefits.
| Expense Category | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Year-to-Date 2024 (in $ thousands) | Year-to-Date 2023 (in $ thousands) |
|---|---|---|---|---|
| Costs of Services | 115,188 | 105,894 | 359,394 | 327,064 |
| Selling, General and Administrative Expenses | 31,269 | 27,919 | 93,784 | 86,137 |
| Total Expenses | 146,457 | 133,813 | 453,178 | 413,201 |
Profitability Metrics
CRA's net income for the fiscal year-to-date period ended September 28, 2024, was $31.7 million, an increase from $27.0 million for the same period last year. The net income per diluted share also improved, reaching $4.57 compared to $3.78 in the previous year.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income (in $ thousands) | 11,437 | 8,596 | 31,666 | 27,022 |
| Net Income per Diluted Share | 1.67 | 1.21 | 4.57 | 3.78 |
Utilization Rates
Utilization rates for CRA's consultants have shown improvement, reaching 76% for the third quarter of fiscal 2024, compared to 66% for the same quarter last year. This reflects better efficiency and resource management amid a slight decrease in consultant headcount.
| Period | Utilization Rate | Consultant Headcount |
|---|---|---|
| Q3 2024 | 76% | 978 |
| Q3 2023 | 66% | 1,014 |
Liquidity Position
As of September 28, 2024, CRA had cash and cash equivalents of $24.5 million, down from $45.6 million at the end of the previous fiscal year. The company also had a total borrowing capacity of $135.9 million under its revolving credit facility, indicating a solid liquidity position to support ongoing operations.
| Liquidity Metric | Amount (in $ millions) |
|---|---|
| Cash and Cash Equivalents | 24.5 |
| Borrowing Capacity | 135.9 |
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Article updated on 8 Nov 2024
Resources:
- CRA International, Inc. (CRAI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CRA International, Inc. (CRAI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CRA International, Inc. (CRAI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.