An Overview of
Charles River Associates
Q3 FY2023
This presentation is subject to and should be read in conjunction with the disclaimers and other statements contained under the heading "Safe Harbor Disclaimer."
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Safe Harbor Disclaimer
Statements included in this presentation which are not historical in nature, including those concerning the company's future business, operating and financial condition, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements may include statements concerning our plans, objectives, goals, strategies, and future events, including, but not limited to, future revenues, results, growth, profitability, performance, as well as our expectations regarding revenue and non- GAAP EBITDA margin, the declaration of future quarterly dividends and capital allocation strategies. These statements that are not historical may be reflected in words, graphs or diagrams. When used in this presentation, words such as "believe," "seek," "aim," "going forward," "achieve," "committed," "pursuits," "target," "continue," "expect," "estimate," "should," and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are based upon management's current expectations and speak only as of the date of this presentation. CRA International, Inc. d/b/a Charles River Associates ("CRA") cautions readers that there may be events in the future that CRA is not able to accurately predict or control, and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those contained in or implied by the forward-looking statements or by the historical references. These risks include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; the impact of epidemics or pandemics such as the COVID-19 pandemic; foreign exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; new or changes to laws and regulations, including U.S. and foreign tax laws, as well as accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability settlements. Further information on various potential factors and risks that could affect CRA's financial results are included under the heading "Risk Factors" in the annual and quarterly reports we file with the Securities and Exchange Commission (SEC), as well as in the other documents we file with the SEC, which are available on the SEC's website or in the Investor Relations section of CRA's website at www.crai.com. The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. CRA cannot guarantee any future results, levels of activity, performance, or achievement and undertakes no obligation to update any of its forward-looking statements, nor does it assume any liability for any investment decisions made or not made as a result of this presentation.
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A Leading Global Consulting Firm
For over 50 years, Charles River Associates (CRA) has been a premier consulting firm. In 1965, our founders envisioned a company that would bring the developing technology of academia, especially in the then-burgeoning area of quantitative methods in economics, to the real world. This vision continues to resonate strongly today as we apply university-quality quantitative tools and microeconomic analysis to our clients' most important challenges.
Two Lines
of Business
Legal & Regulatory Consulting
"Cutting Edge Approaches
to High Stakes Cases" (~80%
of Revenue)
Management Consulting
Sector Specialized Boutique
(~20% of revenue)
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Client
Base
Multinational Corporations
Law Firms
Government Regulators
Sources of
Distinctiveness
Leading Experts
Client-Tailored Model
Superior Analytics
Industry Insight
Senior-Led
Geographic
Footprint
More than 20 offices across 10 countries
Revenue split ~80% North
America and ~20%
International
Performance Driven by Highly Talented and Dedicated Colleagues
77% of senior staff have advanced degrees, with 40% of the advanced degrees being PhDs
46% of senior staff have been at
CRA more than 5 years, with 24% of
senior staff exceeding 10 years
Note: Figures as of year-end fiscal 2022.
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CRA accepts less than 2%
of campus applicants
Our staff hail from over 60 countries
across 6 continents
Less than 10% voluntary turnover among top revenue generating employees over past 5 years
Over 30 languages spoken
Solving Complex Problems with High Value-Added Expertise
Each of our practices is highly regarded, and our consultants are recognized for their creative and multidisciplinary approach to solving clients' complex problems in the
US and throughout the world
Antitrust & | Labor & |
Competition | Employment |
Financial | |
Economics | |
Auctions & | Life |
Competitive Bidding | Sciences |
Forensic | |
Services | |
Energy | Marakon |
Intellectual | |
Property | |
Finance | Risk, Investigations, |
& Analytics |
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In the Past Two Years, We Have Worked with 81 of the Fortune 100
Corporate
Note: Figures as of year-end fiscal 2022.
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In the Past Two Years, We Have Partnered with 97 of the Top 100 Law Firms
Law Firm
Note: Figures as of year-end fiscal 2022.
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We Are Delivering Growth
While Returning Capital to Shareholders
Revenue | Headcount | EPS | Stock | Cash | ||
Growth | Growth | Growth* | Repurchases | Dividends | ||
Fiscal 2023 | 4% | 11% | -12% | $24M | $8M | |
Q3 YTD | 4% on a constant | utilization of 69% | -20% on a constant | average price of | ||
currency basis** | currency basis** | $111.23 per share | ||||
Fiscal 2022 | 4% | 9% | 4% | $28M | $10M | |
7% on a constant | utilization of 75% | 13% on a constant | average price of | |||
currency basis** | currency basis** | $86.47 per share | ||||
Fiscal Years | 60% | 49% | 194% | $132M*** $38M | ||
2018-2022 | $60.53 per share | |||||
utilization of 74% | average price of |
*Presented on a non-GAAP basis. A presentation of and reconciliation to the comparable GAAP financial measures appears at the end of this presentation.
**Constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period's foreign exchange rates.
***Includes $25 million pursuant to a modified "Dutch auction" self-tender offer at $74.00 per share in April 2021. 8
Investment Thesis
We are committed to being the firm of choice for our clients as they address their most important litigation, regulatory, and strategic challenges, as well as for our employees as they seek a fulfilling and exciting place to work
Leading experts in their | Management team with strong track |
respective fields | record of operating performance |
History of strong cash flows and no | Value-based decision makers with |
long-term debt | disciplined capital allocation strategy |
Our objective is to maximize CRA's long-term value per share
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Consistently Strong Performance Reflects the Quality of Portfolio and Breadth of Contributors
(millions)
$700
$600
$500
$400
$300
$200
$100
$0
Revenue* | ||||
$566 | $591 | |||
$508 | $462 | |||
$451 | ||||
$418 | ||||
2018 | 2019 | 2020 | 2021 | 2022 | YTD Q3 2023 |
Against challenging comparisons, CRA has achieved record-breaking revenue
in each of the past five fiscal years
*Presented on a non-GAAP basis. A presentation of and reconciliation to the comparable GAAP financial measures appears at the end of this presentation.
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CRA International Inc. published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 14:24:13 UTC.