Management services provider
CRA International Inc.
) reported GAAP net income of $3.7 million or 37 cents per share
versus a net loss of $53.5 million or loss of $5.33 per share in
the year-ago quarter. The GAAP loss incurred in the year-ago
quarter was primarily due to a non-cash goodwill impairment
charge of $57.8 million.
Non-GAAP earnings for the reported quarter decreased year over
year to $3.7 million or 37 cents per share from $4.3 million or
43 cents per share in the year-earlier quarter. However, non-GAAP
earnings for fourth quarter 2013 comfortably beat the Zacks
Consensus Estimate of 30 cents.
For full year 2013, net income was $11.4 million or $1.12 per
share versus a net loss of $53.0 million or loss of $5.21 per
share in the previous year. Excluding non-recurring items,
non-GAAP earnings for 2013 were $11.5 million or $1.13 per share
compared with $10.1 million or 98 cents per share in 2012.
Non-GAAP earnings for full year 2013 exceeded the Zacks Consensus
Estimate by 6 cents.
Revenues for fourth quarter 2013 were $75.7 million compared with
$67.6 million in the year-ago quarter. The quarterly revenues
beat the Zacks Consensus Estimate of $70 million. Non-GAAP
revenues for fourth quarter 2013 increased to $74.3 million from
$66.0 million in the prior-year quarter.
The healthy year-over-year revenue growth was attributable to
solid performances in both North America and Europe. The company
recorded strong revenue growth in Antitrust and Competition
Economics, Auctions and Competitive Bidding, Financial Economics,
Intellectual Property, Life Sciences and Transfer Pricing.
Company-wide utilization improved to 80% in fourth quarter 2013
from 68% in the year-ago period. For full year 2013, company-wide
utilization increased to 73% from 68% in 2012.
Gross profit (GAAP) improved to $24.0 million from $23.3 million
in the year-ago quarter. Selling, general and administrative
expenses (non-GAAP), after adjusting for commissions to
non-employee experts, decreased to 18.6% from 19.3% in fourth
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) on a GAAP basis were $11.9 million in the
reported quarter compared with $11.0 million in the year-ago
quarter. Adjusted EBITDA on a non-GAAP basis was $11.9 million
versus $10.8 million in the year-ago quarter.
At year-end 2013, cash and cash equivalents were $51.3 million
compared with $55.5 million at year-end 2012. Long-term
liabilities stood at $7.4 million as of Dec 28, 2013 versus $10.6
million as of Dec 29, 2012.
During the quarter, CRA International approved an extended share
repurchase program of up to $15.0 million, in addition to the
$1.4 million remaining under its existing share repurchase
program. The company will finance the share repurchase programs
with available cash and will purchase shares either in the open
market or in privately negotiated transactions.
CRA International is encouraged by a strong rebound in
performance in the second half of 2013. Going forward, the
company expects an improved cost structure and broad-based
profitable growth and attractive margins. Through most of 2014,
the company expects healthy lead flow and strong project
The stock reacted positively on the earnings results as share
prices were up 9.1% to close at $21.02 on close of trading on Feb
CRA International currently has a Zacks Rank #3 (Hold). Stocks
that look promising and are worth a look in the industry include
Bureau Veritas SA
Huron Consulting Group Inc.
), each carrying a Zacks Rank #2 (Buy).
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