CRA International (CRAI) has reported an 11.64 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $3.19 million, or $0.38 a share in the quarter, compared with $2.86 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.25 million, or $0.39 a share compared with $2.92 million or $0.32 a share, a year ago.
Revenue during the quarter grew 6.75 percent to $81.69 million from $76.52 million in the previous year period. Gross margin for the quarter contracted 280 basis points over the previous year period to 29.21 percent. Total expenses were 93.52 percent of quarterly revenues, down from 94.01 percent for the same period last year. This has led to an improvement of 50 basis points in operating margin to 6.48 percent.
Operating income for the quarter was $5.30 million, compared with $4.58 million in the previous year period.
However, the adjusted operating income for the quarter stood at $5.39 million compared to $4.63 million in the prior year period. At the same time, adjusted operating margin improved 55 basis points in the quarter to 6.60 percent from 6.05 percent in the last year period.
"Consistent with the first half of the year, CRA delivered strong financial results in the third quarter of fiscal 2016," said Paul Maleh, CRA’s president and chief executive officer. "Continued broad-based demand for our services provided CRA the opportunity to welcome more than 70 new colleagues, increasing quarter-end headcount by 7% compared with a year ago, while also achieving companywide quarterly utilization of 73%. We grew non-GAAP revenue by 8.2% to $81.7 million with double-digit revenue growth year over year in Energy; Finance, including legacy operations and our new colleagues in Forensic & Cyber Investigations; Labor & Employment; Life Sciences; and Marakon. International operations experienced more than 20% revenue growth year over year, led by our Antitrust & Competition Economics, Life Sciences, and Marakon practices, which would have been even stronger if adjusted for foreign currency headwinds."
For fiscal year 2016, CRA International forecasts adjusted revenue to be in the range of $312 million to $322.
Operating cash flow turns positive
CRA International has generated cash of $16.21 million from operating activities during the nine month period as against cash outgo of $4.86 million in the last year period. The company has spent $10.71 million cash to meet investing activities during the nine month period as against cash outgo of $11.22 million in the last year period.
The company has spent $18.38 million cash to carry out financing activities during the nine month period as against cash outgo of $10.55 million in the last year period.
Cash and cash equivalents stood at $25.18 million as on Oct. 01, 2016, up 19.91 percent or $4.18 million from $21 million on Oct. 03, 2015.
Working capital declines
CRA International has witnessed a decline in the working capital over the last year. It stood at $62.83 million as at Oct. 01, 2016, down 18.75 percent or $14.50 million from $77.33 million on Oct. 03, 2015. Current ratio was at 1.78 as on Oct. 01, 2016, down from 2.02 on Oct. 03, 2015.
Days sales outstanding went down to 104 days for the quarter compared with 108 days for the same period last year.
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