CRA International Inc (CRAI) 2022 Q4 法說會逐字稿

Good day, everyone, and welcome to Charles River Associates Fourth Quarter and Fiscal Year 2022 Conference Call. Please note that today's call is being recorded. The company's earnings release and prepared remarks from CRA's Chief Financial Officer are posted on the Investor Relations section of CRA's website at crai.com. With us today are CRA's President and Chief Executive Officer, Paul Maleh, Chief Financial Officer, Dan Mahoney; and Chief Corporate Development Officer, Chad Holmes.

大家好，歡迎來到 Charles River Associates 第四季度和 2022 財年電話會議。請注意，今天的通話正在錄音中。公司的收益發布和 CRA 首席財務官準備好的評論發佈在 CRA 網站 crai.com 的投資者關係部分。今天和我們在一起的有 CRA 總裁兼首席執行官 Paul Maleh、首席財務官 Dan Mahoney；和首席企業發展官，Chad Holmes。

At this time, I'd like to turn the call over to Mr. Mahoney for his opening remarks. Dan, please go ahead.

現在，我想把電話轉給馬奧尼先生，讓他發表開場白。丹，請繼續。

Thank you, Rob, and good morning, everyone. Please note that the statements made during this conference call, including guidance on future revenue and non-GAAP EBITDA margin and any other statements concerning the future business, operating results or financial condition of CRA, including those statements using the terms expect, outlook or similar terms are forward-looking statements as defined in Section 21 of the Exchange Act. Information contained in these forward-looking statements is based on management's current expectations and is inherently uncertain. Actual performance and results may differ materially from those expressed or implied in these statements due to many important factors, including the level of demand for our services as a result of changes in general and industry-specific economic conditions.

謝謝羅布，大家早上好。請注意在本次電話會議中所做的聲明，包括對未來收入和非公認會計原則 EBITDA 利潤率的指導，以及有關 CRA 未來業務、經營成果或財務狀況的任何其他聲明，包括使用預期、展望或類似術語的聲明術語是《交易法》第 21 條所定義的前瞻性陳述。這些前瞻性陳述中包含的信息基於管理層當前的預期，具有內在的不確定性。由於許多重要因素，包括由於一般和行業特定經濟條件的變化而導致對我們服務的需求水平，實際業績和結果可能與這些聲明中明示或暗示的業績和結果存在重大差異。

Additional information regarding these factors is included in today's release and in CRA's periodic reports including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. CRA undertakes no obligation to update any forward-looking statements after the date of this call.

有關這些因素的更多信息包含在今天的新聞稿和 CRA 的定期報告中，包括我們最近向美國證券交易委員會提交的 10-K 表格年度報告和 10-Q 表格季度報告。 CRA 不承擔在本次電話會議之後更新任何前瞻性陳述的義務。

Additionally, we will refer to some non-GAAP financial measures and certain measures presented on a constant currency basis on this call. Everyone is encouraged to refer to today's release and related CFO remarks for reconciliations of these non-GAAP financial measures to their GAAP comparable measures and descriptions of the calculation of EBITDA and measures presented on a constant currency basis.

此外，我們將參考一些非 GAAP 財務措施和在本次電話會議上以固定貨幣為基礎提出的某些措施。鼓勵每個人參考今天的發布和相關的 CFO 評論，以調節這些非 GAAP 財務措施與其 GAAP 可比措施和 EBITDA 計算的描述以及以固定貨幣為基礎的措施。

I will now turn it over to Paul for his report. Paul?

我現在將其轉交給保羅作他的報告。保羅？

Thanks, Dan, and good morning, everyone. Thank you for joining us today. CRA once again set financial highs as fiscal 2022 topped to record-setting fiscal 2021. Revenue increased by 4.4% to $590.9 million. This marked the fifth consecutive year in which CRA established a new record for annual revenue. Over this 5-year period of time as revenue increased by 60%, we expanded non-GAAP EBITDA, net income and earnings per diluted share by 120%, 167% and 211%, respectively. Capitalizing on the revenue growth in fiscal 2022, CRA posted record profits for the year with non-GAAP net income, earnings per diluted share and EBITDA, each growing faster than revenue.

謝謝，丹，大家早上好。感謝您今天加入我們。 CRA 再次創下財務新高，2022 財年超過創紀錄的 2021 財年。收入增長 4.4% 至 5.909 億美元。這標誌著 CRA 連續第五年創造年收入新紀錄。在這 5 年的時間裡，隨著收入增長 60%，我們的非 GAAP EBITDA、淨收入和攤薄後每股收益分別增長了 120%、167% 和 211%。利用 2022 財年的收入增長，CRA 公佈了全年創紀錄的利潤，其中非 GAAP 淨收入、稀釋後每股收益和 EBITDA 的增長速度都快於收入。

We achieved this performance despite strong currency headwinds associated with the U.S. dollar that shaved $12.6 million or 2.2% year-over-year growth, from our reported revenue on a constant currency basis. CRA's revenue growth for fiscal 2022 was balanced geographically as our North American operations increased by 4% and international operations grew by 5%. Our expansion was led by legal and regulatory services, which grew by 8% year-over-year. Eight of CRA's practices grew their top line with 4 practices, Antitrust & Competition Economics, Intellectual Property, Labor & Employment and Risk, Investigations & Analytics delivering double-digit revenue growth in fiscal 2022.

儘管與美元相關的強勁貨幣逆風導致我們按固定匯率計算的報告收入同比增長減少 1260 萬美元或 2.2%，但我們仍取得了這一業績。 CRA 2022 財年的收入增長在地域上是平衡的，因為我們的北美業務增長了 4%，國際業務增長了 5%。我們的擴張以法律和監管服務為主導，同比增長 8%。 CRA 的八個業務部門通過 4 個業務部門（反壟斷與競爭經濟學、知識產權、勞動與就業和風險、調查與分析）在 2022 財年實現了兩位數的收入增長。

For the fourth quarter, we continue to see broad-based strength across our portfolio. Reported revenue increased 7.6% compared with the fourth quarter of fiscal 2021. Currency headwinds reduced revenue by $4.4 million or 3.3% year-over-year growth on a constant currency basis. Geographically, we saw balanced contributions from our North American and international operations, which grew fourth quarter revenue year-over-year by 8.2% and 5.4%, respectively.

對於第四季度，我們繼續看到我們的投資組合具有廣泛的實力。與 2021 財年第四季度相比，報告的收入增長了 7.6%。貨幣不利因素使收入減少 440 萬美元，按固定匯率計算同比增長 3.3%。從地域上看，我們看到北美和國際業務的貢獻均衡，第四季度收入同比分別增長 8.2% 和 5.4%。

Leading the way with double-digit revenue growth in the fourth quarter were 6 practices: Auctions & Competitive Bidding, Finance, Financial Economics, Intellectual Property, Labor & Employment and Risk, Investigations & Analytics. In addition, our Antitrust & Competition Economics and Life Sciences Practices also expanded revenue year-over-year, which is impressive given the strong currency headwinds that CRA's largest global practices face during the fourth quarter.

第四季度以兩位數的收入增長領先的是 6 個業務領域：拍賣和競爭性招標、金融、金融經濟學、知識產權、勞動和就業以及風險、調查和分析。此外，我們的反壟斷與競爭經濟學和生命科學業務也實現了收入同比增長，考慮到 CRA 最大的全球業務在第四季度面臨的強勁匯率逆風，這一數字令人印象深刻。

I would now like to spend a few minutes highlighting some of the services provided during the fourth quarter. Approximately 1/5 of CRA's revenue in a given quarter is linked to M&A activity, principally arising from our Antitrust and Competition Economics practice. Worldwide M&A activity totaled $3.6 trillion in 2022, a decrease of 37% compared to 2021 and the largest year-over-year percentage decline since 2001. That decline was particularly acute in the second half of the year.

我現在想花幾分鐘時間強調一下第四季度提供的一些服務。 CRA 在某個季度大約有 1/5 的收入與併購活動有關，主要來自我們的反壟斷和競爭經濟學實踐。 2022 年全球併購活動總額為 3.6 萬億美元，與 2021 年相比下降了 37%，是自 2001 年以來最大的同比下降百分比。下半年下降尤為嚴重。

Transaction activity declined 33% in the second half of 2022 compared to the first half, representing the largest second half percentage drop since records began in 1980. Amid this backdrop, our Antitrust & Competition Economics practice experienced a slowdown in lead flow of merger-related opportunities in the fourth quarter of 2022 relative to a year ago. Yet in aggregate, the practice saw overall project lead flow growth, including both merger-related and nonmerger-related opportunities, expanded by more than 15% in the fourth quarter relative to a year ago, partially fueling the practices increase in revenue year-over-year.

與上半年相比，2022 年下半年的交易活動下降了 33%，這是自 1980 年有記錄以來下半年的最大降幅。在此背景下，我們的反壟斷與競爭經濟學業務經歷了與併購相關的潛在客戶流量放緩與一年前相比，2022 年第四季度的機會。但總的來說，第四季度與去年同期相比，包括與合併相關和非合併相關的機會在內的整體項目潛在客戶流量增長超過 15%，部分推動了該業務收入同比增長-年。

During the fourth quarter, CRA's Antitrust & Competition Economics Practice worked on transactions across a range of industries and geographies. For example, a CRA team supported the merging parties in the acquisition of lease plan by ALD, a subsidiary of Societe Generale. The deal involved overlaps in vehicle leasing industry and associated leasing services in 25 effective countries. The CRA team of economists prepared analysis of competition in vehicle leasing across the affected countries in support of merger control filings and remedy preparation.

在第四季度，CRA 的反壟斷與競爭經濟學實踐部處理了一系列行業和地區的交易。例如，CRA團隊支持合併方收購法國興業銀行子公司ALD的租賃計劃。該交易涉及 25 個有效國家的汽車租賃行業和相關租賃服務的重疊。 CRA 的經濟學家團隊準備了對受影響國家車輛租賃競爭的分析，以支持合併控製備案和補救準備。

Following the market test of the proposed remedies, the European Commission concluded that the transaction would no longer raise competition concerns. This decision followed previous unconditional clearance by several national competition authorities, including the U.K.'s Competition and Market Authority and the Mexican Competition Authority. In addition to their merger review work, CRA's Antitrust & Competition Economics practice continued to support clients and legal disputes during the fourth quarter, CRA experts prepared and delivered expert reports and testimony and antitrust class actions and in international disputes that highlight the intersection of intellectual property and antitrust issues. Looking more broadly, revenue from CRA's legal and regulatory services during the fourth quarter increased 12% year-over-year despite mixed trends in the legal market.

在對擬議的補救措施進行市場測試後，歐盟委員會得出結論認為，該交易將不再引起競爭問題。此前，包括英國競爭與市場管理局和墨西哥競爭管理局在內的多個國家競爭主管機構均無條件批准了這一決定。除了合併審查工作外，CRA 的反壟斷與競爭經濟學實踐在第四季度繼續為客戶和法律糾紛提供支持，CRA 專家準備並提供了專家報告和證詞以及反壟斷集體訴訟以及突出知識產權交集的國際糾紛和反壟斷問題。從更廣泛的角度來看，儘管法律市場趨勢喜憂參半，但第四季度 CRA 法律和監管服務的收入同比增長 12%。

Within the broader legal market, total case filings, during the fourth quarter of 2022, were up 3% year-over-year. Within the courtroom, the number of total court judgments during the fourth quarter was down 6% relative to the fourth quarter of 2021. The finance practice was active in all of its core areas during the fourth quarter, specifically, the practice was engaged in various insurance matters including numerous matters related to the lapse provision of the State of California's insurance code. The practice also continued its work on matters related to alleged spoofing in certain financial markets as well as various international matters, including international arbitrations and securities fraud matters with assets or disputes in Europe and Latin America.

在更廣泛的法律市場中，2022 年第四季度的案件總數同比增長 3%。在法庭內，第四季度的法院判決總數相對於 2021 年第四季度下降了 6%。第四季度，金融業務在其所有核心領域都很活躍，具體而言，該業務從事各種保險事務，包括與加利福尼亞州保險法典失效條款相關的眾多事務。該業務部還繼續處理與某些金融市場中涉嫌欺詐相關的事務以及各種國際事務，包括國際仲裁和涉及歐洲和拉丁美洲資產或糾紛的證券欺詐事務。

A significant portion of the work from the financial economics practice during the fourth quarter involved assisting multiple mortgage lenders and their responses to regulatory investigations into suspected red lining. Equal access to credit is a major policy focus of federal consumer financial protection regulators and CRA assisted clients by performing extensive analysis of their geographic lending patterns and benchmarking them against other lenders in the market. The team also assisted the client's legal counsel in formulating responses to the regulators' inquiries. The intellectual property practice advised on multiple high-stakes litigation, arbitration and valuation matters during the quarter.

第四季度金融經濟學實踐的很大一部分工作涉及協助多家抵押貸款機構以及他們對監管調查可疑紅線的回應。平等獲得信貸是聯邦消費者金融保護監管機構的主要政策重點，CRA 通過對客戶的地域貸款模式進行廣泛分析並將其與市場上的其他貸方進行比較來協助客戶。該團隊還協助客戶的法律顧問制定對監管機構詢問的回應。知識產權業務在本季度就多項高風險訴訟、仲裁和估值事宜提供了建議。

In a patent-infringement matter, CRA was retained by the federal government and 2 of its contractors to evaluate damages arising from the alleged infringement of patented technology related to the alignment of images from soldier's night vision goggles with thermal images from their weapon sites. CRA reviewed extensive evidence and prepared analysis that demonstrates the plaintiffs claim damages significantly exceeded the value of the technological innovations allegedly distributed by the patents-in-suit. The Intellectual Property practice also consulted on economic issues and multiple investigations at the U.S. International Trade Commission and provided expert testimony in an ITC hearing involving floor cleaning devices.

在一起專利侵權案件中，聯邦政府及其 2 個承包商委託 CRA 評估因涉嫌侵犯與士兵夜視鏡圖像與其武器位置熱圖像對齊相關的專利技術而造成的損害。 CRA 審查了廣泛的證據並準備了分析，證明原告要求的損害賠償大大超過了訴訟專利據稱分配的技術創新的價值。知識產權業務部還在美國國際貿易委員會就經濟問題和多項調查提供諮詢，並在涉及地板清潔設備的 ITC 聽證會上提供專家證詞。

CRA's Labor & Employment practice was engaged during the quarter across a variety of industries, including finance, health care, legal and technology to help clients navigate annual performance and compensation decisions. CRA's work assist clients in their efforts to promote internal equity among employee groups. The practice continues to be a critical partner for clients entering mediation on various lawsuits arising from California's wage and hour laws and the Federal Fair Labor Standards Act.

本季度，CRA 的勞動與就業業務涉及多個行業，包括金融、醫療保健、法律和技術，以幫助客戶制定年度績效和薪酬決策。 CRA 的工作協助客戶努力促進員工群體之間的內部公平。該實踐仍然是客戶就加州工資和工時法以及聯邦公平勞工標準法引起的各種訴訟進行調解的重要合作夥伴。

CRA's deep expertise and employment matters led to multiple experts being retained on actions brought by individuals, classes or collectives and the Equal Employment Opportunity Commission. For example, on behalf of an academic medical center, alleged to have violated the Age Discrimination and Employment Act and the Americans with Disability Act, CRA was retained to provide economic and statistical analysis of the center's policies.

CRA 深厚的專業知識和就業問題導致多名專家被聘請處理個人、集體或集體以及平等就業機會委員會提起的訴訟。例如，代表一個學術醫療中心，據稱違反了《年齡歧視和就業法》和《美國殘疾人法》，CRA 受聘為該中心的政策提供經濟和統計分析。

The Risk, Investigations & Analytics practice continues to focus on executing matters, multidisciplinary, investigative and analytic assignments. During the fourth quarter, a team of forensic accounting, investigative and analytic professionals continued work on a fraud in the financial services industry related to asset misappropriation of hundreds of millions of dollars that stretched across multiple international jurisdictions over several years. The team reviewed and analyzed hundreds of thousands of financial records, e-mails and other supporting documentation, undertook a flow of funds analysis and prepared a factual report.

風險、調查和分析實踐繼續專注於執行事務、多學科、調查和分析任務。在第四季度，一個由法務會計、調查和分析專業人士組成的團隊繼續致力於金融服務行業中與數億美元資產挪用有關的欺詐行為，這些欺詐行為橫跨多個國際司法管轄區長達數年之久。該團隊審查和分析了數十萬份財務記錄、電子郵件和其他支持文件，進行了資金流分析並準備了一份事實報告。

Within our management consulting offering, the auctions and competitive bidding practice during the fourth quarter, managed 13 global dairy trade events, 6 natural fiber exchangeable auctions and 5 electricity procurement auctions for clients in Ohio and Pennsylvania. In the fourth quarter, our dairy trade marketplace achieved the milestone of transacting more than $33 billion cumulatively and over 300 trading events since the GDT marketplace was established. Additionally, the team managed request for proposal, processes for a range of electric utility clients in the United States.

在我們的管理諮詢產品中，第四季度的拍賣和競標實踐為俄亥俄州和賓夕法尼亞州的客戶管理了 13 場全球乳製品貿易活動、6 場天然纖維可交換拍賣和 5 場電力採購拍賣。第四季度，我們的乳製品交易市場實現了自 GDT 市場成立以來累計交易超過 330 億美元和超過 300 場交易的里程碑。此外，該團隊還管理美國一系列電力公司客戶的提案請求和流程。

CRA's electric utility RFPs support the development of over 3 gigawatts of generating capacity, including renewable resources, energy storage and thermal resources. Commercialization and product launch strategy remain the mainstay of our strategy consulting work in CRA's Life Sciences practice. In the last quarter, we continued our client work in the expanding area of oncology. But we also were active across other therapeutic categories. For example, our Life Sciences practice has been working with a pharmaceutical manufacturer on the pricing and market access for a new antifungal drug. We are building our strategic recommendations on a foundation of market research with hospitals, physicians and health plans, analysis of patient and physician level data and econometric modeling.

CRA 的電力公用事業 RFP 支持開發超過 3 吉瓦的發電能力，包括可再生資源、儲能和熱資源。商業化和產品發布戰略仍然是我們在 CRA 生命科學實踐中戰略諮詢工作的支柱。在上個季度，我們繼續在不斷擴大的腫瘤學領域開展客戶工作。但我們也活躍於其他治療類別。例如，我們的生命科學業務一直在與一家製藥商就一種新型抗真菌藥物的定價和市場准入進行合作。我們在醫院、醫生和健康計劃的市場研究、患者和醫生水平數據分析以及計量經濟學模型的基礎上製定我們的戰略建議。

In addition to the practices important work, I'm also extremely excited by the announcement we made in late November regarding CRA's acquisition of bioStrategies Group. Our 17 new colleagues from bioStrategies are focused on developing commercial strategies for health care products and technologies. Based in Chicago, this group strengthens the geographic map of our Life Sciences practice and better position CRA to serve clients in the Midwest.

除了實踐重要工作外，我還對我們在 11 月下旬發布的關於 CRA 收購 bioStrategies Group 的公告感到非常興奮。我們來自 bioStrategies 的 17 位新同事專注於製定醫療保健產品和技術的商業戰略。該團隊總部設在芝加哥，加強了我們生命科學實踐的地理分佈，並更好地定位 CRA 為中西部的客戶提供服務。

On behalf of everyone at CRA, I want to extend a warm well to our new colleagues. Overall, I'm grateful to all my colleagues for their hard work during the fourth quarter and throughout the year as we helped our clients address their most important challenges. Recapping our record financial performance, CRA reported revenue for fiscal 2022 of $590.9 million or $603.5 million on a constant currency basis after adjusting for $12.6 million of currency headwinds. Full year non-GAAP EBITDA was $72.9 million or 75.3% on a constant currency basis after adjusting for $2.4 million of currency headwinds. Non-GAAP EBITDA margin was 12.5% on a constant currency basis.

我代表 CRA 的每一個人，向我們的新同事們送上一口溫暖的井。總的來說，我感謝所有同事在第四季度和全年的辛勤工作，因為我們幫助客戶應對了他們最重要的挑戰。回顧我們創紀錄的財務業績，CRA 報告 2022 財年收入為 5.909 億美元，或在調整 1260 萬美元的貨幣逆風後按固定匯率計算為 6.035 億美元。全年非 GAAP EBITDA 為 7290 萬美元，在調整 240 萬美元的貨幣不利因素後按固定匯率計算為 75.3%。按固定匯率計算，非 GAAP EBITDA 利潤率為 12.5%。

Our fiscal 2022 performance demonstrates CRA's continued strength in the marketplace. We have invested in new generating talent and increased our consulting headcount. We also continued to replenish our sales pipeline with project lead flow in the fourth quarter, increasing by roughly 17% year-over-year. All of this positions us well for 2023 and beyond as we look to extend our trend of broad-based profitable growth.

我們 2022 財年的業績表明 CRA 在市場上的持續實力。我們投資於新一代人才，並增加了我們的諮詢人員。我們還在第四季度繼續通過項目線索流補充我們的銷售渠道，同比增長約 17%。所有這些都使我們在 2023 年及以後處於有利地位，因為我們希望擴大我們廣泛的盈利增長趨勢。

Before I provide our financial guidance for fiscal 2023, I want to comment on a refinement to our approach for the coming year that was referenced in this morning's earnings announcement. Since 2016, we have provided financial guidance on a constant currency basis to highlight the operating performance that we as management can control. We believe that this approach provides transparency and comparability when evaluating CRA's reported financial performance.

在我提供 2023 財年的財務指導之前，我想對今天上午的收益公告中提到的對來年方法的改進發表評論。自 2016 年以來，我們以固定貨幣為基礎提供財務指導，以突出我們作為管理層可以控制的經營業績。我們認為，這種方法在評估 CRA 報告的財務業績時提供了透明度和可比性。

Reflecting on our investor communications and financial results over the past several years, starting with the first quarter of 2023, we will be modifying our presentation of non-GAAP EBITDA to exclude the nonoperating effects of both gains and losses arising from foreign currencies. Under this revised definition, CRA's non-GAAP EBITDA margin on a constant currency basis was 12.2% for each of fiscal years 2021 and 2022.

反思我們過去幾年的投資者溝通和財務業績，從 2023 年第一季度開始，我們將修改我們的非公認會計原則 EBITDA 的列報，以排除外幣產生的損益的非經營性影響。根據這一修訂後的定義，CRA 在 2021 和 2022 財年的非公認會計原則 EBITDA 利潤率在固定貨幣基礎上均為 12.2%。

With this as a backdrop for full year fiscal 2023 on a constant currency basis relative to fiscal 2022, we expect revenue in the range of $615 million to $640 million and non-GAAP EBITDA margin in the range of 10.8% to 11.5%. While we are pleased with CRA's strong performance in 2022, we remain mindful that short-term challenges arising from uncertainties around macroeconomic, business, public health and political conditions can affect our business. With that, I'll turn the call over to Chad and then Dan for a few additional comments. Chad?

以此為背景，2023 財年全年以相對於 2022 財年不變的貨幣為基礎，我們預計收入將在 6.15 億美元至 6.4 億美元之間，非公認會計原則 EBITDA 利潤率將在 10.8% 至 11.5% 之間。雖然我們對 CRA 在 2022 年的強勁表現感到滿意，但我們仍然注意到，宏觀經濟、商業、公共衛生和政治狀況的不確定性帶來的短期挑戰可能會影響我們的業務。有了這個，我會把電話轉給查德，然後轉給丹，徵求一些額外的意見。乍得？

Thanks, Paul. Hello, everyone. I want to update you on our capital deployment initiatives during the quarter. During the quarter, we repaid $45 million of our borrowings under our revolving line of credit to bring our year-end outstanding debt to 0 as we have done in prior years. Our cash balance increased during the quarter by $7.4 million to end the year at $31.4 million. The fourth quarter of 2022 saw cash outlays of $9.5 million for forgivable loans in connection with talent investments. We also spent $800,000 on capital expenditures bringing the full year amount to $3.8 million.

謝謝，保羅。大家好。我想向您介紹我們本季度的資本部署計劃。在本季度，我們根據循環信貸額度償還了 4500 萬美元的借款，使我們的年終未償債務與往年一樣降至 0。我們的現金餘額在本季度增加了 740 萬美元，到年底達到 3140 萬美元。 2022 年第四季度，與人才投資相關的可免除貸款的現金支出為 950 萬美元。我們還花費了 800,000 美元用於資本支出，使全年支出達到 380 萬美元。

For fiscal 2023, we expect to spend $7 million to $8 million on capital expenditures with the year-over-year increase primarily related to expenditures on real estate. We paid $2.7 million of dividends to our shareholders during the fourth quarter. For the full year, we returned a total of $37.2 million to our shareholders through a combination of share repurchases and quarterly dividends. This represents 62% of CRA's 2022 adjusted net cash flows from operations and exceeds our previously stated aim of returning half of our adjusted cash flows from operations to shareholders.

對於 2023 財年，我們預計將花費 700 萬至 800 萬美元用於資本支出，同比增長主要與房地產支出有關。我們在第四季度向股東支付了 270 萬美元的股息。全年，我們通過股票回購和季度股息相結合的方式向股東返還了總計 3720 萬美元。這佔 CRA 2022 年調整後運營現金流量淨額的 62%，超過了我們之前宣布的將調整後運營現金流量的一半返還給股東的目標。

As announced earlier today, CRA's Board of Directors authorized an expansion to our existing share repurchase program of an additional $20 million in value of shares of common stock. With this expansion, we have approximately $42.9 million available under our share repurchase program. Taken together, our capital allocation decisions in fiscal 2022 demonstrate continued confidence in CRA's long-term outlook as we look to invest in the business for profitable growth while simultaneously returning meaningful capital to our shareholders.

正如今天早些時候宣布的那樣，CRA 的董事會授權擴大我們現有的股票回購計劃，額外購買價值 2000 萬美元的普通股。通過此次擴張，我們的股票回購計劃中有大約 4290 萬美元可供使用。總而言之，我們在 2022 財年的資本配置決策表明我們對 CRA 的長期前景充滿信心，因為我們希望投資業務以實現盈利增長，同時向股東返還有意義的資本。

With that, I'll turn the call over to Dan for a few final comments. Dan?

有了這個，我會把電話轉給 Dan，讓他做最後的評論。擔？

Thanks, Chad. As a reminder, more expansive commentary on our financial results is available on the Investor Relations section of our website under prepared CFO remarks.

謝謝，乍得。提醒一下，在準備好的首席財務官評論下，我們網站的投資者關係部分提供了對我們財務業績的更廣泛的評論。

Before we get to questions, let me provide a few additional metrics related to our performance in the fourth quarter of fiscal 2022. In terms of consultant headcount, we ended the year at 939, which consisted of 149 officers, 496 other senior staff and 294 junior staff. This represents a 9.1% increase compared with the 861 consultant headcount reported at the end of fiscal 2021. Non-GAAP selling, general and administrative expenses, excluding the 2.6% attributable to commissions to nonemployee experts was 16.7% of revenue for the fourth quarter of fiscal 2022 compared with 16.1% a year ago. This quarter's ratio was primarily impacted by an increase in travel and entertainment expenses and higher other operating expenses, including professional services fees.

在我們開始提問之前，讓我提供一些與我們在 2022 財年第四季度的績效相關的額外指標。在顧問人數方面，我們年底為 939 人，其中包括 149 名管理人員、496 名其他高級職員和 294 名顧問基層員工。與 2021 財年末報告的 861 名顧問人數相比，這增加了 9.1%。非 GAAP 銷售、一般和管理費用，不包括歸因於非僱員專家佣金的 2.6%，佔 2021 年第四季度收入的 16.7%與一年前的 16.1% 相比，2022 財年。本季度的比率主要受到差旅和娛樂費用增加以及其他運營費用增加（包括專業服務費）的影響。

For the full year fiscal 2022, the ratio was 15.5% compared with 14.2% for full year fiscal 2021. The effective tax rate for the fourth quarter of fiscal 2022 on a non-GAAP basis was 22.2% compared with 27.4% on a non-GAAP basis for the fourth quarter of fiscal 2021. The lower rate in the fourth quarter of 2022 was largely attributable to a higher benefit arising from the accounting for stock-based compensation.

對於 2022 財年全年，該比率為 15.5%，而 2021 財年全年為 14.2%。2022 財年第四季度非公認會計原則基礎上的有效稅率為 22.2%，而非非公認會計原則基礎上的 27.4%。 2021 財年第四季度的 GAAP 基礎。2022 年第四季度較低的利率主要歸因於股票薪酬會計產生的更高收益。

Turning to the balance sheet. DSO at the end of the fourth quarter was 114 days compared with 123 days at the end of the third quarter of fiscal 2022. DSO in the fourth quarter consisted of 82 days of billed and 32 days of unbilled. We concluded the fourth quarter of fiscal 2022 with $31.4 million in cash and cash equivalents and a further $195.6 million of available capacity on our line of credit for a total liquidity of $227 million.

轉向資產負債表。第四季度末的 DSO 為 114 天，而 2022 財年第三季度末為 123 天。第四季度的 DSO 包括 82 天的開票天數和 32 天的未開票天數。我們在 2022 財年第四季度結束時擁有 3140 萬美元的現金和現金等價物，我們的信貸額度還有 1.956 億美元的可用容量，流動性總額為 2.27 億美元。

That concludes our prepared remarks. We will now open the call for questions. Rob, please go ahead.

我們準備好的發言到此結束。我們現在將開始提問。羅伯，請繼續。

(Operator Instructions)

（操作員說明）

Our first question comes from Andrew Nicholas with William Blair.

我們的第一個問題來自安德魯·尼古拉斯和威廉·布萊爾。

This is Daniel Maxwell on for Andrew today. Just to kick things off, I was wondering if you could give a little detail on how you're thinking about headcount growth in '23 after strong growth in '22? And any detail you can give on what practices that might be concentrated in as well as any breakdown you can give between experience versus university hiring?

今天我是安德魯的丹尼爾·麥克斯韋 (Daniel Maxwell)。只是為了開始，我想知道你是否可以詳細說明你是如何考慮在 22 年強勁增長之後的 23 年員工人數增長的？您可以提供有關可能集中在哪些實踐中的任何詳細信息，以及您可以提供經驗與大學招聘之間的任何細分嗎？

Sure. This is Paul. So I'll take a path at the headcount projection. Right now, we ended the year close to about a 10% year-over-year growth on headcount. And what we're going to try to do as the year goes on is try our best to match the supply of labor and the demand for our services. There are some portions of headcount that have already -- decisions have already been made starting in the fall of 2022 that will be joining us this summer. Those are the university hires that you referenced on that.

當然。這是保羅。所以我會在人數預測上走一條路。目前，我們年底的員工人數同比增長接近 10%。隨著時間的推移，我們將嘗試做的是盡最大努力使勞動力供應與我們的服務需求相匹配。部分員工已經做出決定，從 2022 年秋季開始，他們將在今年夏天加入我們。這些是你提到的大學僱員。

But in terms of an exact year-end number, really depends on the broader market that we're seeing and the rate of replacements that we undertake to offset any kind of attrition in the firm. But we're starting at a good place of strength, a lot of labor to deliver those services. And hopefully, we could continue to grow that head count. In any year, particularly absent that, if any large acquisition, the majority of the hires that we do at CRA come via the university route. Lateral hires are typically oriented towards senior level revenue-generating individuals. So the majority of hires are going to be coming via University, Daniel.

但就確切的年終數字而言，這實際上取決於我們所看到的更廣泛的市場以及我們為抵消公司任何形式的人員流失而承諾的更換率。但我們從一個很好的地方開始，大量的勞動力來提供這些服務。希望我們可以繼續增加人數。在任何一年，尤其是在沒有大規模收購的情況下，我們在 CRA 所做的大部分招聘都是通過大學途徑進行的。橫向招聘通常面向高級創收人員。因此，丹尼爾，大部分員工將通過大學招聘。

And with respect to the practices, now I realized I didn't finish my answer for you. The majority of the hires are going to come across our top 4 practices, that being Antitrust Competition Economics, Life Sciences, Forensic and Finance, as those 4 practices make up roughly 80% of the firm's revenue. The rest of the firm will be roughly proportional to their contribution to that revenue line.

關於實踐，現在我意識到我沒有為你完成我的回答。大多數員工將接觸我們的前 4 大業務，即反壟斷競爭經濟學、生命科學、法醫和金融，因為這 4 大業務約占公司收入的 80%。公司的其他人將大致與他們對該收入線的貢獻成正比。

Great. That's helpful. And for my follow-up. Just wondering if you can comment broadly on the macro assumptions that are baked into guidance maybe on the high and low end of the guidance range and any flow-through impact you expect from those in terms of upside or downside to margin estimates?

偉大的。這很有幫助。對於我的後續行動。只是想知道您是否可以廣泛評論納入指導的宏觀假設，可能是指導範圍的高端和低端，以及您對利潤率估計的上行或下行預期的任何流動影響？

Sure. I don't think I would be the only 1 who voices uncertainty with respect to how to read our macroeconomic factors. It's sort of like with the weather here in New England, just wait a few minutes, and it will change. So right now, all I can observe are the larger factors hitting CRA and how CRA has responded to date. To date, we have been pretty resilient with different practices, stepping forward during different periods of time. So that portfolio seems to have weathered the volatility, I won't say a downturn.

當然。我不認為我會是唯一一個對如何解讀我們的宏觀經濟因素表示不確定的人。這有點像新英格蘭這裡的天氣，只需等待幾分鐘，它就會改變。所以現在，我所能觀察到的是影響 CRA 的更大因素以及 CRA 迄今為止的反應。迄今為止，我們在不同的實踐中具有相當的彈性，在不同的時間段向前邁進。因此，該投資組合似乎經受住了波動，我不會說經濟低迷。

With respect to -- I know a lot of people always ask about M&A activity. Our M&A revenue still remains relatively strong, particularly given the broader market statistics that we cited earlier. The one thing that I'm not expecting to change is that of the general regulatory environment. Regulators here in the United States and abroad are cracking down across various market sectors, whether it is in antitrust enforcement and technology or antitrust enforcement and the financial services sector. That doesn't seem to be changing, and we are clearly benefiting from that continued rise of demand there.

關於——我知道很多人總是詢問併購活動。我們的併購收入仍然相對強勁，特別是考慮到我們之前引用的更廣泛的市場統計數據。我不希望改變的一件事是一般監管環境。美國和國外的監管機構正在打擊各個市場領域，無論是反壟斷執法和技術領域，還是反壟斷執法和金融服務領域。這似乎並沒有改變，我們顯然正在從那裡持續增長的需求中受益。

So we're keeping our eye on all the factors. I'm happy with the way the firm has performed to date. Lead flow into the first couple of months of fiscal '23 also continues that general trend that we've been enjoying. So more to come on that in that area, Daniel.

因此，我們一直在關注所有因素。我對公司迄今為止的表現感到滿意。進入 23 財年頭幾個月的潛在客戶也延續了我們一直享受的總體趨勢。在那個領域還有更多的事情要做，丹尼爾。

Our next question is from Marc Riddick with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Marc Riddick。

So I wanted to go over just a couple of areas that sort of jumped out at me, the pickup of head count, which certainly kind of sort of indicates some positive views on the trends that you're talking about. I was sort of thinking about the -- for a lot of the folks that we cover, the acquisition of talent is a major challenge. And so I was wondering maybe you could talk a little bit about the -- maybe the pricing inflation or how we should think about -- I would imagine that it wasn't inexpensive to add this kind of talent, but maybe you could talk a little bit about that environment?

所以我想談談幾個讓我印象深刻的領域，即人數的增加，這肯定在某種程度上表明了對你所談論的趨勢的一些積極看法。我有點在想——對於我們報導的很多人來說，人才的獲取是一項重大挑戰。所以我想知道也許你可以談談——也許是定價通脹或者我們應該如何思考——我想增加這種人才並不便宜，但也許你可以談談關於那個環境的一點點？

Sure. I'll give it a shot. You always hire based on what you think the long-term value proposition is of your firm. For firms like CRA, our livelihood is based on hiring the best and brightest individuals at any point in time. And the availability of those individuals varies. So if we have opportunities to enhance our pool of colleagues, we're going to take it. I'm not going to worry too much about any kind of short-term volatility that it may cause on profitability because it is just that, it's short term. We are value-based decision-makers, and thus, we'll continue to take these positive NPV projects.

當然。我會試一試。你總是根據你認為公司的長期價值主張來招聘。對於像 CRA 這樣的公司，我們的生計是基於在任何時間點僱傭最優秀和最聰明的人。這些人的可用性各不相同。因此，如果我們有機會擴大我們的同事隊伍，我們就會抓住它。我不會太擔心它可能對盈利能力造成的任何短期波動，因為它只是短期的。我們是基於價值的決策者，因此，我們將繼續接受這些積極的 NPV 項目。

As we've talked about in past earnings calls, the cost of labor has gone up. We're trying to see where that will shake out given some of the slight softness that has been introduced into the broader labor market. But to date, we've been able to largely mitigate those higher cost of labor through rate increases and the way we deliver our services. By that, I mean, if we're able to deliver our services on a more leveraged manner, thus being more junior professionals relative to senior professionals that also helps to offset the cost pressures.

正如我們在過去的財報電話會議上談到的那樣，勞動力成本已經上升。考慮到更廣泛的勞動力市場出現了一些輕微的疲軟，我們正試圖看看這種情況會在何處出現。但迄今為止，我們已經能夠通過提高費率和我們提供服務的方式在很大程度上減輕這些較高的勞動力成本。我的意思是，如果我們能夠以更有槓桿作用的方式提供我們的服務，那麼相對於高級專業人員而言，初級專業人員更多，這也有助於抵消成本壓力。

But as you can see from the profitability in 2022, the margins relative to '21 were identical, and actually '21 -- fiscal '21 and fiscal 2022 margins were higher than we really have ever achieved as a firm. So I think we're doing a pretty good job on that mitigation. Hopefully, the future continues to cooperate.

但正如您從 2022 年的盈利能力中看到的那樣，相對於 21 年的利潤率是相同的，實際上 21 年——21 財年和 2022 財年的利潤率高於我們作為一家公司真正實現的利潤率。所以我認為我們在緩解方面做得很好。希望以後繼續合作。

And that actually leads to my next question as far as the commentary, and I appreciate the clarification around currency and how you view that and how that flows into the guide. I was wondering if you could talk a little bit about the margin range that you have in the guide. And maybe this also ties into some of the comments in prepared remarks as far as picking up of travel and entertainment activity and expenses and maybe going out to see -- having to go out to see clients face to face a little bit more having some of that pickup. I was wondering if maybe you could sort of just talk maybe in a broad sense of maybe sort of where that is kind of relative to maybe pre-pandemic levels or kind of where we're heading and maybe what you're seeing there and how that flowed into your setting and expectations for '23?

就評論而言，這實際上引出了我的下一個問題，我很欣賞關於貨幣的澄清以及你如何看待它以及它如何流入指南。我想知道您是否可以談談指南中的保證金範圍。也許這也與準備好的評論中的一些評論有關，比如旅行和娛樂活動和費用，以及可能出去看——不得不出去見客戶面對面，有一些那個皮卡我想知道你是否可以從廣義上談談這與大流行前的水平或我們前進的方向有關，也許你在那裡看到了什麼以及如何流入你對'23的設置和期望？

Well, let me first answer what I think is a really easy question. You said in terms of pre-pandemic levels. Our margins are markedly higher than they were prior to March 2020. In that we are -- have been enjoying record levels of profitability now consecutively for several years. So what I'm going to try to spend the second half of my answer on is more the forward-looking on it.

好吧，讓我先回答一個我認為非常簡單的問題。你說的是大流行前的水平。我們的利潤率明顯高於 2020 年 3 月之前的水平。因此，我們已經連續幾年保持創紀錄的盈利水平。因此，我將嘗試用我的後半部分回答更多的是前瞻性的。

If I'm not mistaken, the going in margin in '22 was roughly the same as the margin that we have just provided in for guidance for fiscal 2023. We begin with that largely because of the uncertainty that we have in our marketplace, not just in terms of the demand for our services, but COVID has sort of interfered with our ability to get out, to meet clients, to look -- interact with senior talent. And so that also remains uncertain heading into 2023.

如果我沒記錯的話，22 年的利潤率與我們剛剛提供的 2023 財年指導的利潤率大致相同。我們從這開始主要是因為我們在市場上存在不確定性，而不是就對我們服務的需求而言，但 COVID 有點干擾了我們走出去、會見客戶、尋找與高級人才互動的能力。因此，在進入 2023 年之前，這也仍然不確定。

I'm hoping we begin seeing a more stable environment in which we can interact with our clients and prospective recruits. But that is also unknown. With respect to CRA's travel and meals and incidentals, sometimes that could be a driver of SG&A. I don't think we're anywhere near doing too much marketing or client outreach at CRA. So if my colleagues see the opportunity and are willing to go out and seek out these kind of business opportunities, I'm going to gladly support them with higher SG&A levels. So going forward, I'm comfortable with the range. Do I think there's upside opportunity? Yes, as there always is upside opportunity, but it's really roughly in the same position that we have been for the last couple of years.

我希望我們開始看到一個更穩定的環境，在這個環境中我們可以與我們的客戶和潛在的新員工互動。但這也是未知數。關於 CRA 的旅行、膳食和雜費，有時這可能是 SG&A 的驅動因素。我認為我們在 CRA 沒有做太多營銷或客戶外展活動。因此，如果我的同事們看到機會並願意出去尋找此類商業機會，我將很樂意以更高的 SG&A 水平支持他們。所以展望未來，我對這個範圍感到滿意。我認為有上行機會嗎？是的，因為總是有上行機會，但它實際上與我們過去幾年的位置大致相同。

Okay. Great. And then shifting to the use of cash, and it seems as though you're lined up to be fairly consistent with historical practices and returning capital to shareholders with a multipronged approach as well as the announcement of adding to the share repurchase authorization. So I was wondering if you could talk a little bit about the acquisition side of the picture, maybe you can sort of talk to us about maybe what you're seeing there as far as the potential pipeline valuations, if that's changed much since we last spoke or at least maybe in the last 6 months or so?

好的。偉大的。然後轉向使用現金，似乎你已經準備好與歷史慣例相當一致，並通過多管齊下的方式向股東返還資本，以及宣布增加股票回購授權。所以我想知道你是否可以談談圖片的收購方面，也許你可以和我們談談你在那裡看到的潛在管道估值，如果自我們上次以來發生了很大變化說話或至少在過去 6 個月左右？

Sure. I'll start with a few words, and then I'll going to kick things over to Chad on that front. Our commitment to maximize the long-term value per share of CRA remains strong here at CRA. By no means, am I capital constrained. I am not having to forgo positive NPV projects because of a lack of capital. In fact, I have $200 million of dry powder that I can access at any point in time if the right opportunity presents itself.

當然。我將從幾句話開始，然後我將把這方面的事情交給乍得。我們對最大化 CRA 每股長期價值的承諾在 CRA 仍然很堅定。絕不是，我資金緊張嗎？我不必因為缺乏資金而放棄積極的 NPV 項目。事實上，如果合適的機會出現，我可以隨時使用 2 億美元的干火藥。

So we have been returning substantive capital back to our shareholders, and I see that continuing in the quarters and years ahead. With respect to the talent pipeline, I'm really excited that right now, our funnel has really never been any more robust than it is today. It's just our efforts to select the right talent to join this company. So with that, I'm going to turn it over to Chad, maybe he can provide a little more color in terms of the senior talent pipeline.

因此，我們一直在將大量資本返還給我們的股東，我認為這將在未來幾個季度和幾年內繼續進行。關於人才管道，我現在真的很興奮，我們的渠道從未像現在這樣強大。挑選合適的人才加入這家公司只是我們的努力。因此，我將把它交給查德，也許他可以在高級人才管道方面提供更多色彩。

Thanks, Paul. So as you know and as we talked about in prior calls, we're always looking to add high-quality individuals to the CRA team and have been and continue to be active in the market for talent. We continue to see a strong and consistent flow of high-quality individuals who have been drawn to CRA's track record of strong performance over this extended period of time.

謝謝，保羅。因此，正如您所知，正如我們在之前的電話中談到的那樣，我們一直在尋求為 CRA 團隊增加高素質的人才，並且一直並將繼續活躍在人才市場上。我們繼續看到大量優質人才湧入，他們被 CRA 長期以來的強勁業績記錄所吸引。

As Paul said, our pipeline is as rich as it's ever been. Regarding valuation, they remain healthy despite what's going on in the broader financial markets. So we have remained disciplined when evaluating opportunities, a strategic cultural fit, business fit remain our primary filters when we assess talent acquisition opportunities. And once we have cleared those hurdles and have identified a good opportunity, we can then consider the financial elements, including valuation, and we're mindful not to overpay.

正如保羅所說，我們的管道一如既往地豐富。關於估值，儘管更廣泛的金融市場正在發生什麼，它們仍然保持健康。因此，我們在評估機會時保持紀律，戰略文化契合度、業務契合度仍然是我們評估人才獲取機會時的主要過濾器。一旦我們清除了這些障礙並確定了一個好機會，我們就可以考慮財務因素，包括估值，我們注意不要多付錢。

So we were active last year. You can see that through the outflows that we spent throughout 2022. We were able to make investments across many of our practices, majority probably directed towards the legal and regulatory offering, which is our biggest offering. So it's roughly been proportional.

所以去年我們很活躍。你可以通過我們整個 2022 年的資金流出看到這一點。我們能夠對我們的許多業務進行投資，其中大部分可能針對法律和監管產品，這是我們最大的產品。所以它大致成正比。

2023, I would expect a similar pattern. We're going to be active looking for those good opportunities to invest in the business, expand our contour and provide solutions to our clients.

2023 年，我預計會出現類似的模式。我們將積極尋找投資業務的好機會，擴大我們的輪廓並為我們的客戶提供解決方案。

Our next question is from Kevin Steinke with Barrington Research.

我們的下一個問題來自 Barrington Research 的 Kevin Steinke。

So I wanted to talk a little bit more about the Antitrust & Competition Economics practice, certainly impressive with 15% lead flow growth in the quarter despite you mentioned a slowdown in merger-related leads. Can you just talk about what's driving that lead flow growth? Is it -- I guess you touched on the Antitrust Enforcement. Is that the key driver there? Or are you gaining market share? Or what kind of -- what are some of the factors you'd highlight driving that demand?

因此，我想多談談反壟斷與競爭經濟學實踐，儘管您提到與合併相關的潛在客戶放緩，但本季度的潛在客戶流量增長了 15%，這當然令人印象深刻。您能談談是什麼推動了潛在客戶流量的增長嗎？是嗎——我猜你提到了反壟斷執法。那是那裡的關鍵驅動力嗎？或者你正在獲得市場份額？或者什麼樣的 - 你會強調推動這種需求的一些因素是什麼？

Sure. Kevin. Let me start by saying, when we talk about our competition practice, I sort of do bows of praise to my practices, to my colleagues here in North America and Europe because we're not talking about easy comparables for that practice. They have been setting record levels of performance year after year after year.

當然。凱文。首先讓我說，當我們談論我們的競爭實踐時，我有點讚揚我的實踐，向我在北美和歐洲的同事們鞠躬，因為我們不是在談論這種實踐的簡單可比性。他們年復一年地創造著創紀錄的業績水平。

So first, when I talk about lead flow in the M&A marketplace, declining for that practice in Q4, take that with a grain of salt, in that they've been at high levels quarter after quarter. So I'm not too worried about us getting our fair share of the M&A activity being contemplated both here in the States and abroad.

因此，首先，當我談到併購市場中的潛在客戶流量時，第四季度這種做法有所下降，對此持保留態度，因為它們每季度都處於高位。因此，我不太擔心我們在美國和國外正在考慮的併購活動中獲得公平的份額。

Secondly, we've been a go-to provider for company type of investigations being conducted here in the United States and in Europe for the major technology companies, for the major financial institution companies. And we're seeing that similar type of inbounds continuing for the firm. So I'm pretty pleased with that. It's hard to always ascertain the time line of when those leads will turn into projects, turn into revenue. But any time you have a 15% year-over-year growth for a practice of the magnitude of our competition practice, it just speaks to the excellence of those colleagues.

其次，我們一直是在美國和歐洲為主要科技公司、主要金融機構公司進行公司類型調查的首選供應商。我們看到類似類型的入站對公司來說仍在繼續。所以我對此很滿意。很難始終確定這些線索何時會轉化為項目、轉化為收入的時間表。但是任何時候你有 15% 的同比增長，因為我們的競爭實踐的規模實踐，它只是說明了那些同事的卓越。

Great. And just more broadly across the firm, again, you mentioned 17% increase in project lead flow overall in the fourth quarter. That's at lease some impressive demand in the face of economic uncertainty. Could you just touch on, I guess, broader any trends or that you'd call out across maybe your top 4 practices or maybe outside of antitrust competition? Or again, is it just feel like it's the quality of your people being able to pull in the business or any other factors you'd point to there driving that demand?

偉大的。在整個公司範圍內，您再次提到第四季度項目潛在客戶流量整體增長了 17%。面對經濟不確定性，這至少是一些令人印象深刻的需求。我想，您能否談談更廣泛的任何趨勢，或者您可能會在您的前 4 大實踐中或在反壟斷競爭之外大聲疾呼？或者，是否只是感覺是您的員工的素質能夠吸引業務，還是您指出的任何其他因素推動了這種需求？

Sure. The majority of the inbound inquiries during Q4 resides in the legal regulatory arena with the 2 largest practices driving that growth was competition, as we noted, and our Forensic Services practice. So to no surprise, 2 of the largest practices also have the largest contribution to our lead flow there. And it's just been a lot of hard work. Yes, the quality of the individuals are there, but they're getting out there hustling. The uncertainty is always, again, the conversion of those projects to revenue and the timing of it. But I think we've done a pretty good job to date over the medium to long term with bringing those opportunities to fruition.

當然。正如我們所指出的，第四季度的大部分入站查詢都存在於法律監管領域，推動增長的兩個最大實踐是競爭，以及我們的法務服務實踐。因此，毫不奇怪，2 個最大的實踐也對我們那裡的潛在客戶流量做出了最大的貢獻。這只是很多艱苦的工作。是的，個人的素質是有的，但他們正在忙忙碌碌。同樣，不確定性始終是這些項目轉化為收入及其時間安排。但我認為，從中長期來看，我們在實現這些機會方面做得很好。

All right. Great. And in terms of the margin guidance, is that -- do you still feel like the SG&A expenses excluding commissions around, what, 15.5% or so is a reasonable expectation, maybe 15.5% to 16%, somewhere in there. What are you thinking about where that settles out?

好的。偉大的。就保證金指導而言，你是否仍然覺得 SG&A 費用不包括佣金，15.5% 左右是一個合理的預期，可能在 15.5% 到 16% 之間。你在想什麼地方解決？

I think that is the range really is around 15.5% to 16% is our steady-state range, variations within that range. It could be because we find unique marketing opportunities we're jumping on, so the expense goes higher or it could be in just some volatility of the revenue quarter-to-quarter that may also drive the percentage higher. But I'm comfortable with SG&A in the range of 15.5% to 16%, not just for 2023, but also beyond. I think that is a sweet spot we're going to try to manage to.

我認為這個範圍實際上在 15.5% 到 16% 左右，是我們的穩態範圍，在該範圍內變化。這可能是因為我們發現了我們正在抓住的獨特營銷機會，所以費用會增加，或者可能只是收入季度間的一些波動也可能推動百分比上升。但我對 SG&A 在 15.5% 到 16% 的範圍內感到滿意，不僅是 2023 年，而且還有更長的時間。我認為這是我們要努力做到的最佳點。

All right. Great. I also wanted to ask about Life Sciences. You mentioned growth in the fourth quarter. And so what's the outlook there? Again, your largest practice on the management consulting side. What does lead flow look like there going into 2023? And I know you did a tuck-in there as well a tuck-in acquisition. But just any more comments on Life Sciences would be helpful.

好的。偉大的。我還想問一下生命科學。你提到了第四季度的增長。那麼那裡的前景如何？同樣，您在管理諮詢方面最大的實踐。到 2023 年，潛在客戶流會是什麼樣子？我知道你在那裡做了一筆收購，也收購了一筆收購。但對生命科學的任何更多評論都會有所幫助。

Sure. The lead flow was not as robust in Life Sciences as we were talking about that in the legal regulatory arena. But yet positive, there's been no structural changes in the practice. So all the people that delivered our performance in 2022 are here as we begin 2023, and I expect their contributions to continue. And we're just always looking to supplement that. The inclusion of the bioStrategies Group has us really excited, not just for those 17 individuals, but it also gives us an additional geographic home from which to recruit from. So now Chicago becomes a location for us to place top talent.

當然。生命科學領域的潛在客戶流量並不像我們在法律監管領域談論的那樣強勁。但積極的是，實踐中沒有結構性變化。因此，在 2023 年開始時，所有在 2022 年為我們做出貢獻的人都在這裡，我希望他們能繼續做出貢獻。我們只是一直在尋求補充。 bioStrategies Group 的加入讓我們非常興奮，不僅是因為這 17 個人，而且還為我們提供了一個額外的地理家園，可以從中進行招聘。所以現在芝加哥成為我們安置頂尖人才的地方。

And the other thing that Chad didn't elaborate on, but in terms of that talent funnel that he was referred to, a lot of that talent is in the Life Sciences area. So we're just trying to work through, make sure they're good fits and make sure they're right for CRA in the long run. No one benefits from us trying to optimize near-term quarters.

乍得沒有詳細說明的另一件事，但就他提到的人才漏斗而言，很多人才都在生命科學領域。因此，我們只是在努力解決問題，確保它們適合併確保它們從長遠來看適合 CRA。我們試圖優化近期季度，沒有人從中受益。

Great. That's helpful. And then just lastly, just kind of a numbers-related question, Dan. I don't -- if we wanted to recast the adjusted EBITDA margins historically to exclude the foreign currency gains and losses. I don't know if that's just as easy as excluding those and maintaining the tax rate? Or is it something we'll just have to wait for as the numbers come out to recast the historical quarters?

偉大的。這很有幫助。最後，丹，這是一個與數字相關的問題。我不——如果我們想重新調整調整後的 EBITDA 利潤率以排除外匯損益。我不知道這是否與排除這些並保持稅率一樣容易？還是我們只能等待數據出來重鑄歷史季度？

Yes, Kevin. So it is that simple by just adding back or excluding that FX gain loss line because of the way that if you follow our reconciliations, starting with our non-GAAP net income, which is already accounting for the -- or taking into effect those tax adjustments you're referring to. I would also refer you to our investor deck that we posted this morning. And in the back there, we have a number of reconciliations, which include, on an annual basis, recasted numbers both sets, historical presentation as well as under the new definition. So that's another resource you can look to.

是的，凱文。因此，只需添加或排除外匯損益線就這麼簡單，因為如果您按照我們的對賬方式，從我們的非 GAAP 淨收入開始，這已經說明了——或使這些稅收生效你說的調整。我還會向您推薦我們今天早上發布的投資者平台。在後面，我們有一些對賬，其中包括每年重鑄的兩組數字、歷史呈現以及新定義下的數字。這是您可以參考的另一種資源。

And this is really -- yes, that adjustment really jumped out at us for Q4 in that when we updated our guidance at the -- during the Q3 earnings call, I had high confidence that we would hit our midpoint range of our profitability guidance on it. And that was with 1 month into the quarter. And the foreign currency impact just grew over those last 2 months, and it just prompted us to make this change for transparency for our shareholders and for comparability quarter-over-quarter. But for that foreign exchange, the quarter was pretty much exactly in line with our expectations for the quarter and for the year.

這真的是——是的，第四季度的調整真的讓我們大吃一驚，因為當我們在第三季度財報電話會議上更新我們的指導意見時，我非常有信心我們將達到我們盈利指導的中點範圍它。那是在本季度的 1 個月內。在過去的兩個月裡，外彙的影響剛剛增加，它只是促使我們做出這一改變，以提高股東的透明度，並實現季度間的可比性。但就外匯而言，本季度幾乎完全符合我們對本季度和全年的預期。

Great. Yes, that's helpful. And I agree. It definitely, I think, makes a lot of sense to exclude that going forward. And certainly, the bottom line looked better when you exclude that volatile items. So appreciate that color.

偉大的。是的，這很有幫助。並且我同意。我認為，將這種情況排除在外絕對是很有意義的。當然，當你排除那些不穩定的項目時，底線看起來更好。所以欣賞那種顏色。

Thank you, Kevin, and thanks to everyone for joining us today. We appreciate your time and interest in CRA. We'll be participating in virtual meetings with investors in the coming weeks and months, and we look forward to updating you on our progress on our first quarter call. With that, that concludes today's call. Thank you.

謝謝你，凱文，感謝大家今天加入我們。感謝您抽出寶貴時間對 CRA 感興趣。在接下來的幾周和幾個月裡，我們將參加與投資者的虛擬會議，我們期待著向您通報我們在第一季度電話會議上的最新進展。至此，今天的電話會議到此結束。謝謝。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。您此時可以斷開線路，我們感謝您的參與。