Charles River Associates (NASDAQ: CRAI) reported Q1 EPS of $1.37, $0.54 better than the analyst estimate of $0.83. Revenue for the quarter came in at $146.5 million versus the consensus estimate of $128.67 million.

Key First-Quarter Fiscal 2021 Highlights

• Revenue grew 16.1% year over year to $146.5 million.
• Utilization was 76%, and quarter-end headcount increased 4.8% year over year.
• Net income increased 62.4% year over year to $10.5 million, or 7.2% of revenue, compared with $6.5 million, or 5.1% of revenue, in the first quarter of fiscal 2020; non-GAAP net income increased 58.9% year over year to $10.8 million, or 7.4% of revenue, compared with $6.8 million, or 5.4% of revenue, in the first quarter of fiscal 2020.
• Earnings per diluted share increased 67.5% year over year to $1.34; non-GAAP earnings per diluted share increased 63.1% year over year to $1.37.
• Non-GAAP EBITDA increased 37.8% to $17.8 million, or 12.1% of revenue, compared with $12.9 million, or 10.2% of revenue, in the first quarter of fiscal 2020.
• On a constant currency basis relative to the first quarter of fiscal 2020, revenue would have been lower by $1.9 million, while GAAP net income and earnings per diluted share would have been lower by $0.2 million and $0.03 per diluted share, respectively. Non-GAAP net income, earnings per diluted share, and EBITDA would have been lower by $0.2 million, $0.02 per diluted share, and $0.3 million respectively.
• CRA returned $11.7 million of capital to its shareholders, consisting of $2.1 million of dividend payments and $9.6 million for share repurchases of approximately 167,000 shares. These amounts do not include the 337,837 shares that were repurchased for an aggregate purchase price of $25.0 million as announced on April 9, 2021 pursuant to CRA’s modified “Dutch auction” self-tender offer.

“Building on a record-setting fiscal 2020, CRA reported the highest quarterly revenue in the company’s history, increasing 16.1% year over year to $146.5 million,” said Paul Maleh, CRA’s President and Chief Executive Officer. “Driving this revenue growth was a year-over-year headcount increase of 4.8% and improved utilization of 76%. For the first quarter, we recorded double-digit revenue growth by our Antitrust & Competition Economics, Financial Economics, Forensic Services, Intellectual Property, Labor & Employment, and Risk, Investigations & Analytics practices. We also achieved double-digit revenue growth across both our North American and international operations. The quarter’s revenue growth translated into an accelerating expansion of profits, as CRA’s net income, earnings per diluted share and EBITDA all grew year over year at multiples of the revenue growth rate.”

Outlook and Financial Guidance

“Reflecting the strong start to the year and the broad-based demand across our service portfolio, we are raising both our revenue and EBITDA guidance,” continued Maleh. “For the full-year fiscal 2021, on a constant currency basis relative to fiscal 2020, we now expect revenue in the range of $550 million to $570 million, and non-GAAP EBITDA margin in the range of 10.0% to 10.5%. While we are pleased with CRA’s strong performance in the first quarter, we remain mindful that uncertainties around global economic, business, health, and political conditions can affect our business.”

For earnings history and earnings-related data on Charles River Associates (CRAI) click here.