CRA International Announces Second-Quarter Fiscal 2008 Financial Results.Previously Announced Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Items Result in GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Net Loss of $0.05 Per Share; Company Achieves 6% Revenue Growth and Non-GAAP Net Income of $0.48 Per Share BOSTON -- CRA See Community Reinvestment Act. International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CRAI CRAI Centre De Recherche En Architecture Et Ingénierie (French) CRAI Continuous Regional Arterial Infusion CRAI Consorzio per la Ricerca e le Ipplicazioni di Informatica (Italy) ), a worldwide leader in providing economic, financial, and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services, today announced financial results for its fiscal second quarter ended May 9, 2008. Revenue for the second quarter of fiscal 2008 increased to $93.8 million compared with $88.3 million for the second quarter of fiscal 2007. Including the effects of pre-tax expenses of $8.7 million related to employee separation, office closure costs, and the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the majority of the Company's Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. practices, the GAAP net loss for the second quarter of fiscal 2008 was $512,000, or ($0.05) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Excluding the items mentioned above and taking into account the related tax effect of $3.1 million, non-GAAP net income for the second quarter of fiscal 2008 was $5.2 million, or $0.48 per diluted share. For the second quarter of fiscal 2007, GAAP net income was $6.7 million, or $0.53 per diluted share, which included a net reduction in the tax provision of $1.8 million, or $0.14 per share, related to the conclusion of an Advance Pricing Agreement An Advance Pricing Agreement (APA) is an agreement between a taxpayer and the IRS on an appropriate transfer pricing methodology (TPM) for some set of transactions at issue (called "Covered Transactions"). the Company entered into with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . Excluding the effect of the Advance Pricing Agreement, non-GAAP net income for the second quarter of fiscal 2007 was $4.8 million, or $0.39 per diluted share. On a GAAP basis, weighted average diluted shares outstanding used to calculate the GAAP loss per share in the second quarter of fiscal 2008 were 10.6 million, versus 12.5 million on a GAAP basis in the second quarter of fiscal 2007. On a non-GAAP basis, diluted shares outstanding for the second quarter of 2008 were 10.8 million versus 12.5 million on a non-GAAP basis for the second quarter of fiscal 2007. A complete reconciliation between net income/loss and net income/loss per share on a GAAP basis and a non-GAAP basis is provided in the financial tables at the end of this release. Revenue for the first two quarters of fiscal 2008 increased to $180.0 million, compared with $171.6 million in the same period a year earlier. GAAP net income for the first two quarters of fiscal 2008 was $2.6 million, or $0.24 per diluted share, compared with $13.7 million, or $1.09 per diluted share, in the same period in fiscal 2007. Excluding the second-quarter items mentioned above, as well as an additional $625,000 in pre-tax employee separation costs in the first quarter of fiscal 2008, non-GAAP net income for the first two quarters of fiscal 2008 was $8.9 million, or $0.80 per diluted share, compared with non-GAAP net income of $11.9 million, or $0.95 per diluted share in the first two quarters of fiscal 2007. Weighted average diluted shares outstanding used to calculate earnings per share in the first two quarters of fiscal 2008 were 11.1 million, versus 12.6 million in the first two quarters of fiscal 2007. Comments on the Second Quarter As previously announced, CRA exited or divested a number of lines of business during the first half of fiscal 2008, including the majority of its Asia Pacific operation and part of its Forensics See computer forensics. practice in London. The 2008 second-quarter results include less than a full quarter of revenues from these lines of business as compared to the second quarter of 2007. "Our overall revenue increase during the quarter was led by strong growth in our Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. & Applied Economics platform," said James C. Burrows Burrows is a provincial electoral division in the Canadian province of Manitoba. It was created by redistribution in 1957, and formally came into existence in the provincial election of 1958. The riding is located in the northern part of Winnipeg. , CRA's president and chief executive officer. "Our performance in Litigation & Applied Economics was driven by substantial revenue increases in our Competition and Intellectual Property practices as well as continued growth in our Labor and Employment practice, which has steadily increased for three consecutive quarters since it was launched in the third quarter of fiscal 2007. Our Finance platform benefited from increased activity in sub-prime and credit crisis investigation and litigation work. However, our performance in the platform was offset by a slowdown in our Forensics practice, which was affected by the timing of projects and the divestiture of certain non-core lines of business in the UK and Australia earlier in the quarter/year. Revenues of our Business Consulting platform declined, compared to the second quarter of 2007, as the platform was still affected by a decline in revenues in Europe and the Middle East. However, revenues of the Chemicals and Petroleum practice, including revenues from Europe and the Middle East, rebounded significantly from Q1 levels." The Company's utilization rate in the second quarter was 74 percent, compared with 75 percent in the same period in fiscal 2007 and 70 percent in the first quarter of fiscal 2008. "The sequential increase in utilization contributed to our revenue growth and reflects our efforts to better align our cost structure through headcount reductions and office consolidation and closures, particularly in our overseas operations," said Burrows. "Our second-quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. reflects a strong contribution from our North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. operations and a loss in our combined international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , although the international loss, excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , was significantly less than the loss in the first quarter," said Burrows. "Our second-quarter effective tax rate also was adversely affected by losses outside our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. locations. The strategic decision to reduce our overseas headcount, divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. the majority of our Australia/New Zealand operations and realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. some of our less profitable foreign operations has already reduced the losses in our international operations on a non-GAAP basis as compared to the first quarter of fiscal 2008. We expect this strategy will continue to improve our international performance." "During the quarter, we made good progress with cost-cutting efforts designed to better balance our workforce with market demand as evidenced by the substantial decline in SG&A expense as a percentage of revenue, after adjusting for restructuring items," said Burrows. "Among these cost reduction initiatives was the successful consolidation of our Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. and London offices. We are pursuing additional reductions in SG&A expenses during the balance of the year." The table below represents a summary of the costs and estimated savings CRA will incur in connection with the restructuring activities discussed above. [TABLE OMITTED] (1) Estimated annual cost savings are expected to approximate the estimated revenues. Accordingly, no net savings are included. Outlook "We believe the strategic initiatives that we implemented in the first half of the year provide a solid foundation for profitable growth going forward," Burrows said. "In spite of the U.S. economic downturn, we have experienced a continued flow of antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. , competition and M&A work." Conference Call Information CRA International will host a conference call this morning at 9:00 a.m. ET to discuss its second-quarter fiscal 2008 financial results. To listen to a live webcast of the call, please visit the Company's website at www.crai.com prior to the event's broadcast. To listen to the call via telephone, dial (201) 689-8328 or (877) 407-5790. Interested parties unable to participate in the live call may access an archived version of the webcast on CRA's website. About CRA International Founded in 1965, CRA International is a leading provider of economic and financial expertise and management consulting services. Working with businesses, law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a for complex assignments with pivotal and high-stakes outcomes. The firm is distinguished by a unique combination of credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. : deep vertical experience in a variety of industries; broad horizontal expertise in a range of functional disciplines; and rigorous economic, financial, and market analysis. CRA offers a proven track record of thousands of successful engagements in regulatory and litigation support, business strategy and planning, market and demand forecasting, policy analysis, and engineering and technology management. Headquartered in Boston, the firm has sixteen offices within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and seven offices in Canada, Europe, the Middle East, and the Asia Pacific region. Detailed information about CRA is available at www.crai.com. NON-GAAP FINANCIAL MEASURES In addition to reporting its financial results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP, the Company has also provided in this release non-GAAP net income, non-GAAP net income per share and non-GAAP diluted shares outstanding figures. The Company believes the use of non-GAAP measures in addition to GAAP measures is an additional useful method of evaluating its results of operations. The Company believes that presenting its financial results excluding these one-time costs and tax provision credit is important to investors and management because it is more indicative of its 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 first and second quarters of fiscal 2008, the Company has excluded costs associated with the divesting or shutting down of the majority of the Company's Australian and New Zealand-based operations, office closures, and employee separation and other compensation associated with a workforce reduction. For the second quarter of fiscal 2007, the Company has excluded the reduction in income taxes related to the conclusion of an Advance Pricing Agreement the Company entered into with the IRS. Statements in this press release concerning the future business, operating results, estimated cost savings, and financial condition of the Company and statements using the terms "anticipates," "believes," "expects," "should," or similar expressions, are "forward-looking" statements as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based upon management's current expectations and are subject to a number of factors and uncertainties. Information contained in these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. is inherently uncertain and actual performance and results may differ materially due to many important factors. Such factors that could cause actual results to differ materially from any forward-looking statements made by the Company include, among others, the Company's restructuring costs and attributable annual cost savings, changes in the Company's effective tax rate, share dilution from the Company's convertible debt offering and stock options, dependence on key personnel, attracting and retaining qualified consultants, dependence on outside experts, utilization rates, factors related to its recent acquisitions, including integration of personnel, clients, offices, and unanticipated expenses and liabilities, risks associated with acquisitions it may make in the future, risks inherent in international operations, the performance of NeuCo, changes in accounting standards, rules and regulations, changes in the law that affect its practice areas, management of new offices, the potential loss of clients, dependence on the growth of the Company's business consulting practice, the unpredictable nature of litigation-related projects, the ability of the Company to integrate successfully new consultants into its practice, intense competition, risks inherent in litigation, and professional liability. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of its forward-looking statements after the date of this press release. [TABLE OMITTED] (1) During the twelve weeks ended May 9, 2008, the Company incurred pre-tax expenses of $8.7 million and related provision for income taxes of $3.1 million associated with a series of initiatives designed to reduce the Company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and improve its utilization rate. The initiatives include divesting or shutting down the majority of the Company's Australian and New Zealand-based operations, office closures, and employee workforce reduction. The following is a breakdown of the $8.7 million (in thousands): [TABLE OMITTED] (2) During the twelve weeks ended May 11, 2007, the Company recorded a net reduction in the tax provision of $1.8 million related to the conclusion of an advance pricing agreement the Company entered into with the IRS. (3) Approximately 212,000 common stock equivalents are excluded from the GAAP results because they are antidilutive in the second quarter of fiscal 2008 but they are included in the non-GAAP results because they are dilutive. [TABLE OMITTED] (1) During the twenty-four weeks ended May 9, 2008, the Company incurred pre-tax expenses of $9.4 million and related provision for income taxes of $3.1 million associated with a series of initiatives designed to reduce the Company's operating expenses and improve its utilization rate. The initiatives include divesting or shutting down the majority of the Company's Australian and New Zealand-based operations, office closures, and employee workforce reduction. The following is a breakdown of the $9.4 million (in thousands): [TABLE OMITTED] (2) During the twenty-four weeks ended May 11, 2007, the Company recorded a net reduction in the tax provision of $1.8 million related to the conclusion of an advance pricing agreement the Company entered into with the IRS. [TABLE OMITTED] |
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