BOSTON - Charles River Associates (NASDAQ: CRAI), a global consulting firm, announced today an increase in its quarterly cash dividend. The company's Board of Directors approved a 17% hike, raising the dividend from $0.42 to $0.49 per common share. This increase is scheduled for payment on December 13, 2024, to shareholders on record as of November 26, 2024.
The firm, which specializes in economic, financial, and management consulting services, has expressed intentions to maintain the practice of paying quarterly dividends. However, future declarations, including the timing and amount of such dividends, are subject to the Board of Directors' discretion.
Founded in 1965, Charles River Associates has established a reputation for providing expert advice on economic and financial issues related to litigation and regulatory proceedings. The company also assists corporations with strategic business decisions and performance challenges. With its headquarters in Boston, CRA operates offices worldwide.
The forward-looking statements regarding future dividend payments involve certain assumptions and expectations based on the company's current financial position. While Charles River Associates believes there is a reasonable basis for these expectations, a range of factors could influence the actual outcome. These factors include economic conditions, demand for the company's services, competitive services and pricing, personnel retention and integration, project activity, global economic stability, currency fluctuations, unexpected expenses, international operation risks, and changes in tax and accounting regulations.
Investors should note that such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the company's control. Charles River Associates does not assume any obligation to update any forward-looking statements post-publication, except as required by law.
This news is based on a press release statement from Charles River Associates.
In other recent news, CRA International reported a robust performance in the second quarter of fiscal 2024, with revenue surging by 5.9% year-over-year to $171.4 million. The company witnessed growth across various sectors, including Antitrust & Competition Economics, Financial Economics, Intellectual Property, Labor & Employment, and Life Sciences. The company also expects a prosperous year, with the full-year fiscal 2024 revenue projected to be between $670 million and $685 million, and a non-GAAP EBITDA margin of 12.2% to 13.0%.
In addition, CRA International saw an 11% increase in project lead flow and an 18% rise in new project originations. The company's financial position remained strong, ending the quarter with $24.6 million in cash and $87 million in borrowings, resulting in a net debt position of $62.4 million. The firm also returned $27.0 million to shareholders through dividends and share repurchases.
Despite these positive developments, CRA International experienced a slight decrease in consultant headcount by 0.3% YoY, and non-GAAP selling, general, and administrative expenses rose to 16.4% of revenue. The effective tax rate for the quarter was also high at 29.4% on a non-GAAP basis.
The company's future growth is expected to be driven by ongoing efforts to attract top talent through university recruiting and an active fall recruiting season. The firm also plans to continue investing in various practices and attracting new recruits, underlining its commitment to maintaining a strong financial position.
InvestingPro Insights
Charles River Associates' recent dividend increase aligns with its strong financial performance and commitment to shareholder value. According to InvestingPro data, the company has demonstrated impressive growth, with a year-to-date price total return of 98.12% and a one-year price total return of 102.55%. This robust performance is reflected in the company's market capitalization of $1.19 billion.
InvestingPro Tips highlight that CRAI has raised its dividend for 8 consecutive years, underscoring its consistent focus on returning value to shareholders. The company's latest dividend yield stands at 0.86%, with a notable dividend growth of 16.67% over the last twelve months.
Despite trading at a high P/E ratio of 30.86, CRAI has shown strong profitability. The company's revenue for the last twelve months reached $652.4 million, with a gross profit of $188.68 million and an operating income margin of 8.88%. These figures suggest that CRAI's business model remains robust, supporting its ability to increase dividends.
It's worth noting that CRAI operates with a moderate level of debt, which provides financial flexibility for future growth and dividend payments. The company's strong return over the last decade, as mentioned in the InvestingPro Tips, indicates a track record of long-term value creation for investors.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for CRAI, providing a comprehensive view of the company's financial health and market position.
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