CRA International (NASDAQ: CRAI) reported Q4 EPS of $0.77, $0.01 worse than the analyst estimate of $0.78. Revenue for the quarter came in at $119.3 million versus the consensus estimate of $117.13 million.

Key Fourth-Quarter Fiscal 2019 Highlights

• Revenue grew 9.7% year over year to $119.3 million.
• Utilization was 72%, while quarter-end headcount increased 13.4% year over year.
• Net income, earnings per diluted share, and non-GAAP EBITDA for the fourth quarter of 2019 were negatively impacted by a foreign currency loss of approximately $920,000 related to net losses on foreign denominated transactions and the revaluation of working capital balances.
• Net income decreased 30.6% year over year to $4.8 million, or 4.0% of revenue, compared with $6.9 million, or 6.3% of revenue, in the fourth quarter of fiscal 2018; non-GAAP net income decreased 12.6% year over year to $6.2 million, or 5.2% of revenue, compared with $7.1 million, or 6.5% of revenue, in the fourth quarter of fiscal 2018.
• Earnings per diluted share decreased 27.2% year over year to $0.59; non-GAAP earnings per diluted share decreased 8.3% year over year to $0.77.
• Non-GAAP EBITDA decreased 2.4% to $11.3 million, or 9.4% of revenue, compared with $11.5 million, or 10.6% of revenue, in the fourth quarter of fiscal 2018.
• On a constant currency basis relative to the fourth quarter of fiscal 2018, revenue would have been higher by $0.1 million, GAAP net income would have been lower by $0.1 million, while GAAP earnings per diluted share would have remained unchanged. Non-GAAP net income would have remained unchanged, while non-GAAP earnings per diluted share would have decreased by $0.01 per share and non-GAAP EBITDA would have decreased by $0.1 million.
• CRA made dividend payments of $2.0 million during the quarter.

“CRA ended fiscal 2019 with the best full-year revenue in the Company’s history. We continue to see strong demand for our services, resulting in annual revenue growth of 8.1% in our North American operations and 8.0% in Europe,” said Paul Maleh, CRA’s President and Chief Executive Officer. “For the fourth quarter, revenue grew 9.7% year over year to $119.3 million. Our performance was driven by double-digit revenue growth in our Finance, Forensic Services, and Labor & Employment practices, with strong contributions from our Antitrust & Competition Economics practice. We also positioned the Company for future success by increasing headcount by 13.4% year over year. These additions add depth to our team of talented consultants and enhance the services that we can offer to our clients.”

GUIDANCE:

CRA International sees FY2020 revenue of $446-452 million, versus the consensus of $481.21 million.

“For the full year, on a constant currency basis, we exceeded our revenue guidance of $446 million to $452 million and achieved the upper end of our non-GAAP EBITDA margin guidance range of 9.2% to 10.2%,” Maleh said. “To elaborate, fiscal year 2019 revenue on a constant currency basis was $455.3 million, consisting of $451.4 million of reported results and a $3.9 million adjustment for currency headwinds. Full year non-GAAP EBITDA and non-GAAP EBITDA margin were $44.1 million and 9.8%, respectively. On a constant currency basis, non-GAAP EBITDA decreased by $0.1 million to $44.0 million, or 9.7% of revenue. If we add back the previously mentioned foreign currency loss of $1.3 million, the majority of which was incurred during the fourth quarter, non-GAAP EBITDA margin would have been 10.0% on a constant currency basis.”

“In 2020, we look to build on our trend of broad-based, profitable growth while striving to be the firm of choice for our clients’ most important litigation, regulatory, and strategic challenges. For the full-year fiscal 2020, on a constant currency basis relative to fiscal 2019, we expect revenue in the range of $495 million to $510 million, and non-GAAP EBITDA margin in the range of 9.2% to 10.2%. While we are pleased with CRA’s strong performance in 2019, we remain mindful that uncertainties around global economic and political conditions can affect our business,” Maleh concluded.

For earnings history and earnings-related data on CRA International (CRAI) click here.