$CRAI

CHARLES RIVER ASSOCIATES INC

CIK:0001053706|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Revenues	$ 210,815	$ 186,878	$ 411,790	$ 368,729
Costs of services (exclusive of depreciation and amortization)	148,734	128,542	293,762	248,896
Selling, general and administrative expenses	35,259	35,079	69,784	67,617
Depreciation and amortization	3,281	3,530	6,672	6,941
Income from operations	23,541	19,727	41,572	45,275
Interest expense, net	(2,954)	(1,796)	(3,965)	(2,225)
Foreign currency gains (losses), net	(467)	(815)	(88)	(1,290)
Income before provision for income taxes	20,120	17,116	37,519	41,760
Provision for income taxes	6,612	4,994	12,879	11,636
Net income	$ 13,508	$ 12,122	$ 24,640	$ 30,124
Net income per share:
Basic (in dollars per share)	$ 2.13	$ 1.81	$ 3.84	$ 4.47
Diluted (in dollars per share)	$ 2.10	$ 1.79	$ 3.79	$ 4.42
Weighted average number of shares outstanding:
Basic (in shares)	6,348	6,694	6,430	6,734
Diluted (in shares)	6,407	6,753	6,498	6,807

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
OPERATING ACTIVITIES:
Net income	$ 24,640	$ 30,124
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	6,672	6,941
Right-of-use asset amortization	7,412	7,748
Deferred income taxes	3,173	(360)
Share-based compensation expense	3,777	2,352
Bad debt expense (recovery), net	(117)	563
Unrealized foreign currency remeasurement (gains) losses, net	61	465
Changes in operating assets and liabilities:
Accounts receivable	14,710	5,161
Unbilled services	(38,346)	(16,532)
Prepaid expenses and other current assets, and other assets	(1,377)	(671)
Forgivable loans	(58,263)	(26,312)
Incentive cash awards payable	6,437	6,001
Accounts payable, accrued expenses, and other liabilities	(77,877)	(80,182)
Lease liabilities	(9,215)	(9,440)
Net cash used in operating activities	(118,313)	(74,142)
INVESTING ACTIVITIES:
Purchases of property and equipment	(4,295)	(2,163)
Net cash used in investing activities	(4,295)	(2,163)
FINANCING ACTIVITIES:
Borrowings under revolving line of credit	257,500	132,000
Repayments under revolving line of credit	(72,500)	(12,000)
Tax withholding payments reimbursed by shares	(2,135)	(2,809)
Cash dividends and dividend equivalents paid	(7,438)	(6,858)
Repurchase of common stock	(49,303)	(43,150)
Net cash provided by financing activities	126,124	67,183
Effect of foreign exchange rates on cash and cash equivalents	(284)	1,859
Net increase (decrease) in cash and cash equivalents	3,232	(7,263)
Cash and cash equivalents at beginning of period	18,210	26,711
Cash and cash equivalents at end of period	21,442	19,448
Noncash investing and financing activities:
Decrease in accounts payable and accrued expenses for property and equipment	(128)	(585)
Excise tax on share repurchases	(462)	(388)
Right-of-use assets obtained in exchange for lease obligations	885	7,808
Supplemental cash flow information:
Cash paid for taxes	10,212	14,854
Cash paid for interest	3,057	1,670
Cash paid for amounts included in operating lease liabilities	$ 11,640	$ 11,515

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jul. 04, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 21,442	$ 18,210
Accounts receivable, net of allowances of $6,262 and $6,664, respectively	168,076	183,264
Unbilled services, net of allowances of $1,863 and $1,489, respectively	103,623	65,598
Prepaid expenses and other current assets	23,569	19,331
Forgivable loans	22,265	16,726
Total current assets	338,975	303,129
Property and equipment, net	34,917	36,713
Goodwill, net	94,585	94,718
Intangible assets, net	4,921	5,686
Right-of-use assets	69,370	76,132
Deferred income taxes	15,022	17,958
Forgivable loans, net of current portion	119,330	90,271
Other assets	1,357	4,266
Total assets	678,477	628,873
Current liabilities:
Accounts payable	25,217	30,177
Accrued expenses	138,776	223,460
Deferred revenue and other liabilities	9,058	14,351
Current portion of lease liabilities	17,695	17,223
Current portion of deferred compensation	5,462	10,818
Revolving line of credit	219,000	34,000
Total current liabilities	415,208	330,029
Non-current liabilities:
Deferred compensation and other non-current liabilities	13,550	8,512
Non-current portion of lease liabilities	66,956	76,009
Deferred income taxes	915	725
Total non-current liabilities	81,421	85,246
Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding	0	0
Common stock, no par value; 25,000,000 shares authorized; 6,256,322 and 6,547,407 shares issued and outstanding, respectively	426	2,480
Retained earnings	192,240	221,062
Accumulated other comprehensive loss	(10,818)	(9,944)
Total shareholders’ equity	181,848	213,598
Total liabilities and shareholders’ equity	$ 678,477	$ 628,873