CRA International Inc (CRAI) 2023 Q1 法說會逐字稿

Good day, everyone, and welcome to Charles River Associates First Quarter 2023 Earnings 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.

大家好，歡迎參加 Charles River Associates 2023 年第一季度收益電話會議。請注意，今天的通話正在錄音。該公司的盈利報告以及 CRA 首席財務官準備好的講話均發佈在 CRA 網站 crai.com 的投資者關係部分。

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.

今天與我們在一起的有 CRA 總裁兼首席執行官 Paul Maleh；首席財務官丹·馬奧尼；和首席企業發展官查德霍姆斯。

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

現在，我想將電話轉交給馬奧尼先生致開幕詞。丹，請繼續。

Thank you, Rob, and good morning, everyone. Please note that 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.

謝謝你，羅布，大家早上好。請注意本次電話會議期間所做的聲明，包括關於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、經營業績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，是《交易法》第 21 條中定義的前瞻性陳述。這些前瞻性陳述中包含的信息基於管理層當前的預期，本質上具有不確定性。由於許多重要因素，包括由於總體和特定行業經濟狀況的變化而導致對我們服務的需求水平，實際績效和結果可能與這些聲明中明示或暗示的結果存在重大差異。

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. 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.

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 SEC 提交的 10-K 表年度報告和 10-Q 表季度報告。 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。此外，我們將在本次電話會議上參考一些非公認會計準則財務指標和按固定匯率計算的某些指標。我們鼓勵大家參考今天的新聞稿和相關首席財務官的講話，以了解這些非公認會計原則財務指標與其公認會計原則可比指標的對賬，以及 EBITDA 計算和按固定貨幣計算的指標的說明。

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

我現在將其交給保羅作報告。保羅？

Thanks, Dan, and good morning, everyone. Thank you for joining us today. During the first quarter, CRA continued to build momentum in the business and demand for our services. Revenue increased to $152.8 million, the highest quarterly revenue in the company's history. Our North American and international operations both expanded in the first quarter, led by our international operations, which grew by 8.8% year-over-year. fueling this expansion was a 10.7% year-over-year increase in consulting headcount and a utilization of 70% during the first quarter.

謝謝丹，大家早上好。感謝您今天加入我們。第一季度，CRA 的業務和服務需求繼續保持強勁勢頭。收入增至 1.528 億美元，這是公司歷史上最高的季度收入。我們的北美和國際業務在第一季度均有所擴張，其中國際業務同比增長 8.8%。推動這一擴張的因素是諮詢人員數量同比增長 10.7%，第一季度的利用率達到 70%。

I'm excited that top talent continues to make CRA a destination of choice. This expanded and talented collection of CRA colleagues will continue to provide ample opportunities for value-creating growth in the quarters ahead. On a constant currency basis, CRA reported year-over-year growth of 5.1% and non-GAAP EBITDA margin of 11.4%. Both metrics are squarely in the range of our previously announced annual financial guidance for fiscal 2023.

我很高興頂尖人才繼續讓 CRA 成為首選目的地。 CRA 的這一規模不斷擴大且才華橫溢的同事將在未來幾個季度繼續為創造價值的增長提供充足的機會。按固定匯率計算，CRA 報告同比增長 5.1%，非 GAAP EBITDA 利潤率為 11.4%。這兩個指標完全在我們之前公佈的 2023 財年年度財務指導範圍內。

Turning to our service offerings. CRA's legal and regulatory practices drove our overall revenue growth. For practices, Antitrust & Competition Economics, Financial Economics, Forensic Services, and Labor & Employment grew year-over-year, with Forensic Services and Labor & Employment each posting double-digit revenue growth.

轉向我們的服務產品。 CRA 的法律和監管實踐推動了我們整體收入的增長。在業務方面，反壟斷與競爭經濟學、金融經濟學、法證服務以及勞工與就業業務同比增長，其中法證服務和勞工與就業業務均實現了兩位數的收入增長。

I would now like to spend a few minutes highlighting the market for our services and some of the projects delivered to our clients during the first quarter. Our Antitrust & Competition Economics practice established a new high for quarterly revenue as work continued on merger-related projects and demand for antitrust services remained strong, despite a challenging backdrop. Worldwide M&A activity as measured by aggregate transaction value fell to a decade low in the first quarter of 2023, and declined 44% and compared to the first quarter of 2022. As such, the competition practice experienced an 18% decline in lead flow of merger-related opportunities in the first quarter of 2023, relative to a year ago.

我現在想花幾分鐘重點介紹我們的服務市場以及第一季度向客戶交付的一些項目。儘管面臨充滿挑戰的背景，但隨著併購相關項目的繼續開展以及對反壟斷服務的需求仍然強勁，我們的反壟斷與競爭經濟學業務創下了季度收入的新高。以總交易價值衡量的全球併購活動在 2023 年第一季度跌至十年來的最低點，與 2022 年第一季度相比下降了 44%。因此，競爭實踐的併購引導流量下降了 18%與一年前相比，2023 年第一季度的相關機會。

However, the ongoing strength of the practice overcame these industry trends. The practice saw overall project lead flow, including both merger-related and nonmerger-related opportunities expand by more than 20% in the first quarter relative to a year ago, partially fueling the practice's increase in revenue year-over-year.

然而，持續的實踐力量克服了這些行業趨勢。該業務第一季度的整體項目線索流量（包括與合併相關和非合併相關的機會）較去年同期增長了 20% 以上，部分推動了該業務收入同比增長。

During the quarter, CRA's Antitrust & Competition Economics practice continued to support clients on high-profile mergers in several industries, including consumer technology, software, hardware and industrial products. For example, a CRA team supported the merger of Capco and Shaftesbury, 2 U.K.-registered real estate investment trusts and landlords of lettable units in Central London. The merger will bring together the party's complementary property portfolio, resulting in a mixed-use portfolio of approximately 670 buildings with about 2.9 million square feet of lettable space. After a Phase 1 review, the U.K.'s Competition and Market Authority, in line with the analysis prepared by CRA, found no evidence that the merger would lead to a substantial lessening of competition and unconditionally cleared the acquisition.

本季度，CRA 的反壟斷與競爭經濟學業務繼續為客戶在多個行業的備受矚目的合併中提供支持，包括消費技術、軟件、硬件和工業產品。例如，CRA 團隊支持 Capco 和 Shaftesbury 的合併，這兩家公司是在英國註冊的房地產投資信託公司和倫敦市中心可出租單位的業主。此次合併將整合雙方互補的物業組合，形成一個由約 670 棟建築和約 290 萬平方英尺可出租空間組成的混合用途組合。經過第一階段審查後，英國競爭與市場管理局根據 CRA 準備的分析，發現沒有證據表明合併將導致競爭大幅減少，並無條件批准了此次收購。

In addition to their merger review work, CRA's Antitrust & Competition Economics practice continue to support clients in legal disputes. During the first quarter, CRA consultants prepared and delivered expert reports and testimony and antitrust class actions, international disputes and other matters arising from competition claims.

除了合併審查工作外，CRA 的反壟斷與競爭經濟學業務還繼續為客戶的法律糾紛提供支持。第一季度，CRA顧問準備並交付了專家報告和證詞以及反壟斷集體訴訟、國際糾紛和競爭索賠引起的其他事項。

For example, multiple CRA experts were engaged to support a client's trademark infringement and unfair competition claims in U.S. District Court. The experts and their teams developed analyses and provided expert opinions with regard to trademark valuation, consumer surveys, damages and monetary relief.

例如，多名 CRA 專家參與支持客戶在美國地方法院提起的商標侵權和不正當競爭索賠。專家及其團隊就商標評估、消費者調查、損害賠償和金錢救濟等問題進行了分析並提供了專家意見。

Looking more broadly, the legal market delivered mixed trends during the first quarter. Total case filings were up 5% year-over-year. However, the number of total court judgments declined 5% relative to the first quarter of 2022. CRA bucked these trends and grew revenue from its legal and regulatory offering by nearly 7% in the first quarter.

從更廣泛的角度來看，第一季度法律市場的趨勢好壞參半。案件提交總數同比增長 5%。然而，法院判決總數較 2022 年第一季度下降了 5%。CRA 逆勢而行，第一季度法律和監管服務收入增長了近 7%。

During the quarter, mortgage lending experts in CRA's Financial Economics practice group provided testimony in support of a mortgage servicer in a litigation matter alleging discrimination in the maintenance and marketing of foreclosed homes. The practice also continues to assist several banks and mortgage companies and responding to regulatory investigations concerning potential discriminatory red lining. CRA provided statistical analysis of the client's geographic lending patterns in relation to other lenders in the market and, in some cases, assisted the client in resolving the matter with a regulatory agency.

本季度，CRA 金融經濟實踐小組的抵押貸款專家在一項指控在止贖房屋的維護和營銷方面存在歧視的訴訟案件中為一家抵押貸款服務商提供了證詞。該做法還繼續協助多家銀行和抵押貸款公司，並回應有關潛在歧視性紅線的監管調查。 CRA 提供客戶相對於市場上其他貸款人的地理貸款模式的統計分析，並在某些情況下協助客戶與監管機構解決問題。

The Forensic Services practice continues to experience strong demand from Boards and C-suite clients seeking assistance with investigations into alleged fraud, cybercrime, trade secret theft and other misconduct. The team investigates and responds to hundreds of cyber incident response matters per year. In the last quarter, we assisted a publicly traded software company in responding to an unauthorized incident involving its corporate network.

法證服務業務繼續受到董事會和高管客戶的強烈需求，尋求協助調查涉嫌欺詐、網絡犯罪、商業秘密盜竊和其他不當行為。該團隊每年調查並響應數百起網絡事件響應事宜。在上個季度，我們協助一家上市軟件公司應對涉及其企業網絡的未經授權的事件。

We help the health care system respond to a 6-month unauthorized intrusion. We assisted a leading North American insurance brokerage respond to and recover from a massive ransomware incident. Leveraging our digital forensic competencies, the practice also helped multiple clients investigate allegations of trade secret theft, including a global financial markets trading company and a major pharmaceutical and medical device company.

我們幫助醫療保健系統應對為期 6 個月的未經授權的入侵。我們協助一家領先的北美保險經紀公司應對大規模勒索軟件事件並從中恢復。利用我們的數字取證能力，該業務還幫助多個客戶調查商業秘密盜竊指控，其中包括一家全球金融市場貿易公司和一家大型製藥和醫療器械公司。

Finally, our forensic accounting and e-discovery capabilities to assist the audit committee of a publicly traded insurance company investigated allegations that its former Chief Marketing Officer had embezzled millions of dollars. CRA's Labor & Employment practice continues to be engaged across industries, including finance, health care, legal and entertainment to help clients proactively navigate recent restructuring activities as companies adjust to changing economic conditions.

最後，我們的法務會計和電子取證能力協助一家上市保險公司的審計委員會調查了有關其前首席營銷官挪用數百萬美元的指控。 CRA 的勞工與就業業務繼續涉足金融、醫療保健、法律和娛樂等各個行業，幫助客戶在企業適應不斷變化的經濟狀況時主動應對近期的重組活動。

During the first quarter, CRA consultants were regularly retained to assist clients in making annual performance and compensation decisions in order to proactively assess internal equity concerns. Separately, the practice continues to be a critical partner for clients entering mediation on multiple California wage and hour and federal fair labor standards at lawsuits. CRA's deep expertise and employment matters also led to multiple client retentions on actions brought by individuals, class or collectives and the Equal Employment Opportunity Commission.

第一季度，定期聘請CRA顧問協助客戶做出年度業績和薪酬決策，以主動評估內部股權問題。另外，對於在訴訟中就加州多項工資和工時以及聯邦公平勞工標准進行調解的客戶來說，該業務仍然是重要的合作夥伴。 CRA 深厚的專業知識和就業事務還導致多個客戶保留了個人、階級或集體以及平等就業機會委員會提起的訴訟。

The practice also held a retreat during the first quarter that brought together leaders to commemorate the 1-year anniversary of the acquisition of Welch Consulting. The gathering focused on expanding efforts to leverage the team's more than 500 years of combined labor and employment consulting experience.

該業務還在第一季度舉行了一次務虛會，領導人齊聚一堂，紀念收購韋爾奇諮詢公司一周年。這次聚會的重點是擴大努力，利用團隊 500 多年的勞動和就業諮詢綜合經驗。

For the company as a whole, we continue to replenish our sales pipeline. Project lead flow increased in the first quarter by more than 10% year-over-year after adjusting for the Welch Consulting projects acquired 1 year ago. The projects on the strong -- this builds on the strong lead flow generated during the fourth quarter of 2022. Together, the past 6 months represents the strongest period of lead flow activity in CRA's history.

對於整個公司來說，我們繼續補充我們的銷售渠道。對一年前收購的 Welch Consulting 項目進行調整後，第一季度的項目鉛流量同比增長超過 10%。強勁的項目——建立在 2022 年第四季度產生的強勁潛在客戶流的基礎上。總的來說，過去 6 個月代表了 CRA 歷史上最強勁的潛在客戶流活動。

While we're pleased with the record lead flow over the past 2 quarters, our new project originations remained roughly flat year-over-year after adjusting for the Welch Consulting transition projects. During the first quarter, we observed a delay in the conversion of leads into new projects. Based on an examination of lead composition and discussions with our leading revenue generators, we see no evidence relative to our history over the past several years that we are losing projects more frequently to competitors. Instead, it appears that clients are delaying their decision to begin work on their projects.

雖然我們對過去兩個季度創紀錄的潛在客戶流量感到滿意，但在對韋爾奇諮詢過渡項目進行調整後，我們的新項目發起量與去年同期基本持平。在第一季度，我們觀察到潛在客戶轉化為新項目的延遲。根據對主要成分的檢查以及與我們領先的收入來源的討論，我們沒有看到與過去幾年的歷史相關的證據表明我們更頻繁地將項目輸給競爭對手。相反，客戶似乎正在推遲開始項目工作的決定。

Turning to guidance. Based on our first quarter performance, we are reaffirming our financial guidance for full year fiscal 2023. As a reminder, our previously stated guidance is provided on a constant currency basis relative to fiscal 2022, and calls for expected revenue in the range of $615 million to $640 million, and non-GAAP EBITDA margin in the range of 10.8% to 11.5%. Overall, I'm grateful to my colleagues for their hard work during the first quarter as we helped our clients address their most important challenges.

轉向指導。根據我們第一季度的業績，我們重申 2023 財年全年的財務指引。提醒一下，我們之前提出的指引是在相對於 2022 財年的固定貨幣基礎上提供的，並要求預期收入在 6.15 億美元範圍內至 6.4 億美元，非 GAAP EBITDA 利潤率在 10.8% 至 11.5% 之間。總的來說，我感謝我的同事在第一季度的辛勤工作，幫助我們的客戶解決了他們最重要的挑戰。

With that, I'll turn the call over to Chad, and then Dan for a few additional comments. Chad?

接下來，我會將電話轉給 Chad，然後轉給 Dan，徵求一些補充意見。查德？

Thanks, Paul. Hello, everyone. I want to update you on our capital deployment during the quarter. We concluded the quarter with $35.5 million of cash and $100 million of borrowings under our revolving credit facility, resulting in a net debt position of $64.5 million. The borrowings were primarily to fund bonus payments, which is consistent with our practice in prior years. In addition to the normal bonus cycle, the first quarter of 2023 also saw cash outlays of $16.8 million for forgivable loans in connection with talent investments.

謝謝，保羅。大家好。我想向您介紹本季度資本部署的最新情況。本季度結束時，我們在循環信貸安排下擁有 3550 萬美元現金和 1 億美元借款，淨債務頭寸為 6450 萬美元。借款主要用於支付獎金，這與我們前幾年的做法一致。除了正常的獎金周期外，2023 年第一季度還出現了 1,680 萬美元的現金支出，用於與人才投資相關的可免除貸款。

We spent $600,000 on capital expenditures. For fiscal 2023, we expect to spend $5 million to $6 million on capital expenditures. We also returned a total of $23.3 million to our shareholders during the first quarter, consisting of $2.7 million of dividend payments, and $20.6 million for share repurchases of approximately 181,000 shares, approximately $22.3 million available under our share repurchase program.

我們在資本支出上花費了 600,000 美元。 2023 財年，我們預計資本支出為 500 萬至 600 萬美元。我們還在第一季度向股東返還了總計 2,330 萬美元，其中包括 270 萬美元的股息支付，以及用於回購約 181,000 股股票的 2,060 萬美元，其中約 2,230 萬美元可用於我們的股票回購計劃。

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

至此，我會將電話轉給 Dan，徵求一些最後的意見。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. Before we get to questions, let me provide a few additional metrics related to our performance in the first quarter of fiscal 2023. In terms of consultant headcount, we ended the quarter at 972, which consisted of 158 officers, 535 other senior staff and 279 junior staff. This represents a 10.7% increase compared with the 878 consultant headcount reported at the end of Q1 fiscal 2022.

謝謝，查德。謹此提醒，我們網站投資者關係部分的首席財務官評論下方提供了有關我們財務業績的更廣泛的評論。在回答問題之前，讓我提供一些與我們 2023 財年第一季度業績相關的其他指標。就顧問人數而言，本季度結束時，我們有 972 人，其中包括 158 名官員、535 名其他高級員工和 279 名顧問。基層員工。與 2022 財年第一季度末報告的 878 名顧問人數相比，增加了 10.7%。

Non-GAAP selling, general and administrative expenses, excluding the 2.3% attributable to commissions to nonemployee experts, was 16.2% of revenue for the first quarter of fiscal 2023, compared with 14.4% a year ago. This quarter's ratio was primarily impacted by an increase in travel and entertainment expenses. The effective tax rate for the first quarter of fiscal 2023 on a non-GAAP basis was 29% compared with 26.5% on a non-GAAP basis for the first quarter of fiscal 2022. The higher rate in the first quarter of 2023 was largely attributable to a lower benefit arising from the accounting for stock-based compensation and an increase in the U.K. statutory rate from 19% to 25%. For the full year fiscal 2023, we expect our non-GAAP effective tax rate to be in the range of 28% to 30%.

非公認會計準則銷售、一般和管理費用（不包括非僱員專家佣金的 2.3%）佔 2023 財年第一季度收入的 16.2%，而去年同期為 14.4%。本季度的比率主要受到旅行和娛樂費用增加的影響。 2023財年第一季度按非公認會計原則計算的有效稅率為29%，而按非公認會計原則計算的2022財年第一季度實際稅率為26.5%。2023年第一季度較高的稅率主要歸因於股票薪酬會計核算帶來的收益較低以及英國法定稅率從 19% 提高到 25%。對於 2023 財年全年，我們預計非 GAAP 有效稅率將在 28% 至 30% 之間。

Turning to the balance sheet. DSO at the end of the first quarter was 112 days compared with 114 days at the end of the fourth quarter of fiscal 2022. DSO in the first quarter consisted of 70 days of billed and 42 days of unbilled. We concluded the first quarter of fiscal 2023 with $35.5 million in cash and cash equivalents, and a further $94.3 million of available capacity on our line of credit for total liquidity of $129.8 million.

轉向資產負債表。第一季度末的 DSO 為 112 天，而 2022 財年第四季度末的 DSO 為 114 天。第一季度的 DSO 包括 70 天的已計費天和 42 天的未計費天。截至 2023 財年第一季度，我們的現金和現金等價物為 3550 萬美元，信貸額度還有 9430 萬美元的可用容量，流動性總額為 1.298 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。我們現在開始提問。羅布，請繼續。

(Operator Instructions) Our first question comes from Andrew Nicholas with William Blair.

（操作員說明）我們的第一個問題來自安德魯·尼古拉斯和威廉·布萊爾。

I wanted to start on the talent environment, really strong hiring growth again year-over-year. If you could just spend some time talking about retention at the firm, how easy it is to get talent right now, and your success on the recruiting front, that would be helpful.

我想從人才環境開始，招聘人數同比再次強勁增長。如果你能花一些時間談論公司的保留、現在獲得人才是多麼容易，以及你在招聘方面的成功，那將會有所幫助。

Consulting headcount, as we stated, increased 10.7% year-over-year. With that, we had 33 net new additions in Q1, with approximately 75% of those additions arriving in our Competition and our Forensic practices, 2 of our top-performing units. I'm excited that top talent continues to make CRA a destination of choice, and we feel pretty good that this expanded and talented collection of CRA colleagues will continue to provide sort of ample opportunities for value-creating growth in the quarters ahead.

正如我們所說，諮詢人員數量同比增長 10.7%。這樣，我們在第一季度淨新增了 33 個新增人員，其中約 75% 的新增人員來自我們的競爭部門和法證業務部門，這兩個部門是我們表現最好的部門。我很高興頂尖人才繼續讓 CRA 成為首選目的地，而且我們感到非常高興的是，這個擴大的、才華橫溢的 CRA 同事群體將繼續為未來幾個季度的價值創造增長提供充足的機會。

With respect to attrition, it's a little too early to call, namely because historically, we only experienced about 15% of our total annual attrition in Q1. Thus, we're going to see how the year continues to unfold, and adjust our hiring plans accordingly. Does that get to your question answer, Andrew?

關於人員流失，現在下結論還為時過早，因為從歷史上看，我們在第一季度僅經歷了年度總人員流失的 15% 左右。因此，我們將看看今年的情況如何繼續發展，並相應地調整我們的招聘計劃。安德魯，這能回答你的問題嗎？

Yes. That's helpful. And then I was hoping you could speak to the Life Sciences business, both in the quarter and just overall thoughts on the health of that end market right now? And then relatedly, any early signs or takeaways from buyout strategies and holding that into the firm?

是的。這很有幫助。然後我希望您能談談生命科學業務，包括本季度的情況以及目前對該終端市場健康狀況的總體看法？與此相關的是，收購策略和將其保留在公司中是否有任何早期跡像或收穫？

Sure. Management Consulting, led by Life Sciences and the energy practice has been a source of growth for CRA over the past 5 years. Unfortunately, more recently, the group's performance has been more of a sawtooth pattern. I remain confident in both practice's ability to drive growth for CRA going forward. We just have to sort of -- I'm fine with quarter-to-quarter volatility, I would just like to see more of an upward ascension of that curve. But we haven't lost any revenue generators there. They continue to work hard to drive that demand. So I think it really is just a matter of time. Lead flow into Life Sciences in Q1 was slightly less than what I would say was expected at the time. But I think, again, with 1 quarter in the bank, we're going to wait to see how the year unfolds.

當然。以生命科學和能源實踐為主導的管理諮詢業務是 CRA 過去 5 年的增長源泉。不幸的是，最近該集團的表現更像是鋸齒狀模式。我對這兩家公司推動 CRA 未來發展的能力仍然充滿信心。我們只需要——我對季度間的波動感到滿意，我只是希望看到該曲線更多地向上提升。但我們並沒有失去任何收入來源。他們繼續努力推動這一需求。所以我認為這確實只是時間問題。第一季度生命科學領域的鉛流量略低於我當時的預期。但我再次認為，銀行還有一個季度的存款，我們將拭​​目以待今年的情況如何。

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。

I wanted to start off by asking about the lead flow within the Antitrust & Competition Economics practice that you referenced, I think you said lead flow up, what, 20% for the practice, despite an 18% decline in M&A-related lead flow. So can you touch on what's driving that strength in lead flow, despite some current headwinds from the M&A market?

我想首先詢問您提到的反壟斷與競爭經濟學實踐中的潛在客戶流量，我想您說的是該業務的潛在客戶流量增加了 20%，儘管與併購相關的潛在客戶流量下降了 18%。那麼，儘管當前併購市場存在一些阻力，您能否談談推動潛在客戶流動強勁的因素是什麼？

Sure. Kevin, I've said it many times, I'm very fortunate to work with such a talented group of colleagues within our Antitrust & Competition Economics practice. I do think they are the premier provider of services worldwide. And the continued strength that it almost appears quarter after quarter, we're talking about record levels of performance. The lead flow is coming in. We received -- even though M&A lead flow is down year-over-year, we're still getting the calls. We're just not getting those leads converting into revenue-generating projects at this time. And I think that has more to do with the general uncertainty and the broader market than anything to do with CRA or the competitors for those revenue opportunities. So antitrust is still at the forefront of regulatory bodies here in the States and abroad, and I don't see that changing in the next few years. So I think we are well positioned to capitalize on those opportunities.

當然。凱文，我已經說過很多次了，我很幸運能夠在我們的反壟斷與競爭經濟學實踐中與如此才華橫溢的同事一起工作。我確實認為他們是全球首要的服務提供商。幾乎每個季度都呈現出持續的強勁勢頭，我們談論的是創紀錄的業績水平。潛在客戶流量正在湧入。我們收到了——儘管併購潛在客戶流量同比下降，但我們仍然接到電話。我們目前還沒有將這些潛在客戶轉化為創收項目。我認為這更多地與普遍的不確定性和更廣闊的市場有關，而不是與 CRA 或這些收入機會的競爭對手有關。因此，反壟斷仍然處於美國和國外監管機構的最前沿，我認為這種情況在未來幾年內不會發生變化。因此，我認為我們已經做好充分利用這些機會的準備。

Okay. Great. And you did reference, although project lead flow for the firm as a whole was up 10% year-over-year in the first quarter, that new project originations were flat. And you just touched on the delay in conversions maybe due to some macro -- the macroeconomic uncertainty. Is that -- are those delays fairly broad-based across the firm? Or is it confined to a few practices? Just trying to get a sense as to how broad-based those delays are that you're seeing?

好的。偉大的。您確實提到，儘管第一季度公司整體的項目引導流量同比增長 10%，但新項目的發起量持平。您剛剛談到了轉換的延遲，這可能是由於一些宏觀因素——宏觀經濟的不確定性。這些延遲在整個公司範圍內是否相當普遍？還是僅限於少數做法？只是想了解一下您所看到的這些延誤的範圍有多大？

Yes. When -- anytime I see lead flow going up as strongly as it did for the firm and then seeing new projects remain flat, the first concern is always am I losing market share? Am I losing more than my historical norm to competitors? And our closer examination says no. First, the decline in conversion of leads to new revenue-generating projects was pretty evenly experienced across our portfolio of services. So I can't point to one practice versus another who had an unusual experience during Q1.

是的。當我看到銷售線索流量像公司那樣強勁增長，然後看到新項目保持平穩時，我首先擔心的總是我是否會失去市場份額？我輸給競爭對手的機會是否超出了我的歷史標準？我們仔細檢查後發現答案是否定的。首先，在我們的服務組合中，新創收項目的潛在客戶轉化率下降的情況相當均勻。因此，我無法將某一練習與在第一季度經歷不尋常經歷的另一練習進行比較。

Second, we went to our top revenue generators, individuals who normally convert in the 80%, 90% of leads into revenue-generating projects to inquire what they are experiencing because they, too, experienced a reduction in those conversion rates. And what we're hearing is clients calling, asking for us to clear conflicts, but not yet pulling the trigger on the litigation-related matter or on just delaying the announcement of their merger until they have more ideal market scenarios there.

其次，我們拜訪了我們的頂級收入來源，即通常將 80%、90% 的潛在客戶轉化為創收項目的個人，詢問他們正在經歷什麼，因為他們也經歷了這些轉化率的下降。我們聽到的是客戶打電話來，要求我們解決衝突，但尚未觸發訴訟相關事宜，或者只是推遲宣布合併，直到他們那裡有更理想的市場情況。

So I'm hopeful that these leads are still revenue opportunities for the firm. I think that is forthcoming. The challenge that we have is, I don't know when, but I do think the revenue opportunities are still in CRA's grasp.

因此，我希望這些線索仍然是公司的收入機會。我認為這即將到來。我們面臨的挑戰是，我不知道什麼時候，但我確實認為收入機會仍然在 CRA 的掌握之中。

Okay. And I guess, at this point, it hasn't affected your outlook for the year. You reiterated the guidance. So you still feel pretty good about the way the year is shaping up, I guess.

好的。我想，目前這還沒有影響你對今年的展望。您重申了指導意見。所以我想你對這一年的發展仍然感覺很好。

Yes. More is always better. And I believe the firm is well positioned to deliver higher revenue, but these just market uncertainties sometimes get in the way. I don't think the overall value proposition that we see in our portfolio has changed from when I issued the guidance. And I remain hopeful of even stronger times ahead.

是的。更多總是更好。我相信該公司有能力實現更高的收入，但這些市場不確定性有時會阻礙公司的發展。我認為我們在投資組合中看到的整體價值主張與我發布指導意見時相比並沒有改變。我仍然對未來更加強大的時代充滿希望。

Okay. Great. I just want to ask about consultant utilization, 70%, down a little bit from your typical kind of mid-70s rate. Is that somewhat related just to the strength of the hiring and you're getting people ramped up? Or any color on that particular metric in the quarter?

好的。偉大的。我只是想問一下顧問的利用率，70%，比典型的 70 年代中期的比率低了一點。這是否與招聘力度以及你的員工人數增加有關？或者該季度特定指標的任何顏色？

Yes. I mean, I will start by saying that the mid-70s utilization point is our target for the portfolio as currently constituted. We have delivered mid-70s utilization for, quite frankly, I think, as far back as a decade. that's on an annual basis. Of course, you will get some volatility quarter-to-quarter. The mid-70s still remains our long-term target. And we're going to do our best to sort of match that headcount with what we see as the revenue opportunities.

是的。我的意思是，我首先要說的是，70 年代中期的利用率點是我們目前構成的投資組合的目標。坦率地說，我認為，早在十年前，我們就已經實現了 70 年代中期的利用率。這是按年計算的。當然，每個季度都會出現一些波動。 70年代中期仍然是我們的長期目標。我們將盡最大努力將員工人數與我們認為的收入機會相匹配。

Our ability to hire top talent seems to be getting stronger, and I will take that because getting the best and brightest is never easy. And if it leads to short-term depression in our utilization, I'm going to take that, Kevin, because I know for the quarters ahead, that's what's going to be driving our revenue and, since the resources are in place, driving profitable revenue growth.

我們聘請頂尖人才的能力似乎越來越強，我會接受這一點，因為獲得最優秀和最聰明的人才從來都不是一件容易的事。如果這導致我們的利用率短期下降，我會接受這一點，凱文，因為我知道在未來幾個季度，這將推動我們的收入，並且由於資源到位，將推動盈利收入增長。

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 was wondering if you could touch a little bit on something that you made mention of, but I sort of want to get my arms around a little bit. You were talking about some of the data around filings and judgments. And if I heard it correctly, I think you said filings were down -- sorry, up 5% year-over-year, judgment is down 5% year-over-year. Was that right?

所以我想知道你是否可以談談你提到的一些事情，但我想稍微談談。您談到了有關申請和判決的一些數據。如果我沒聽錯的話，我想你說的是申請量下降了——抱歉，同比增長了 5%，判斷力同比下降了 5%。是這樣嗎？

Correct.

正確的。

Okay. So I just wanted to touch a little bit on maybe some of the causes that you might be seeing in that gap and maybe just kind of what that means for CRA going forward?

好的。所以我只是想談談您可能會在這一差距中看到的一些原因，也許這對 CRA 的未來意味著什麼？

I'm hesitating because I just don't want to repeat myself with some of the views that we have. The leads are there. Our aggregate lead flow is still growing at a faster rate than what we're observing in terms of new opportunities. So I'm happy about that. I always want to look for over longer periods of time with respect to court judgments and not read too far into a down quarter on that. I don't know whether that's tying to more of a delay strategy of our clients in courts with respect to filings or pushing litigations forward. That remains to be seen. But I always like to see aggregate market expanding. I always like to see CRA's growth outpacing that aggregate market level.

我很猶豫，因為我只是不想重複我們的一些觀點。線索就在那裡。我們的潛在客戶總量增長速度仍然快於我們在新機會方面觀察到的速度。所以我對此很高興。我總是想尋找更長時期內的法院判決，而不是過度解讀季度下滑的情況。我不知道這是否更多地與我們的客戶在法庭上提出申請或推動訴訟的延遲策略有關。這還有待觀察。但我總是希望看到總體市場不斷擴大。我總是希望看到 CRA 的增長速度超過市場總體水平。

Okay. And then I was -- shifting over toward the -- one of the things that was mentioned in the press release, I believe, was the international performance, which was up fairly nicely. I was wondering if you could touch a little bit on that?

好的。然後我——轉向——新聞稿中提到的一件事，我相信，是國際表現，它的表現相當不錯。我想知道你是否可以談談這一點？

Yes. A lot of credit goes to our antitrust and competition colleagues in Europe. We're seeing expansion by our leaders in that marketplace, and that's with the currency headwind. So the 8.8% growth of our international operations year-over-year does not take into account or is not on a constant currency basis. That growth would be even higher if I stated it on a constant currency basis. So I think our colleagues in competition are driving ahead. We're also getting nice contributions from our colleagues in the life sciences area.

是的。這很大程度上歸功於我們在歐洲的反壟斷和競爭同事。我們看到我們的領導者在該市場上進行擴張，這是在貨幣逆風的情況下進行的。因此，我們國際業務同比增長 8.8% 並未考慮或不是基於固定匯率。如果我以固定匯率計算的話，這個增長會更高。所以我認為我們的同事在競爭中正在領先。我們還從生命科學領域的同事那裡得到了很好的貢獻。

Okay. Excellent. And then I think we've touched on this in the past, but maybe you can sort of give us just a quick update on the general pricing environment? It seems as though, just from the outside looking in, that rates are not being pressured unnecessarily by the economic conditions, but give some color on that, too.

好的。出色的。然後我想我們過去已經談到過這個問題，但也許你可以給我們快速介紹一下總體定價環境的最新情況？僅僅從外部來看，利率似乎並沒有受到經濟狀況不必要的壓力，但也對此給出了一些解釋。

Sure. With every quarter, we have a little more insight as to the stickiness of our rate increase. With Q1 right now in the bank, what I can say is things are going pretty much as expected. New cases are being put forth with our new rate sheets that have higher fiscal '23 rates. They're being accepted by clients. Our levels of write-offs are unchanged, which means the level of acceptance of those rates remains pretty consistent with what we have experienced historically. So I'm pretty pleased with what we have to date. Hopefully, Q2 and beyond continues form.

當然。每個季度，我們對加息的粘性都有更多的了解。現在第一季度已經進入銀行，我可以說事情的進展幾乎符合預期。我們的新費率表正在提出新的案例，該表具有更高的 23 財年費率。他們正在被客戶接受。我們的沖銷水平沒有變化，這意味著這些利率的接受程度與我們歷史上經歷的情況相當一致。所以我對我們迄今為止所取得的成果感到非常滿意。希望第二季度及以後的情況能夠繼續下去。

We have reached the end of the question-and-answer session. I would now like to turn the call back over to Paul Maleh for closing comments.

我們的問答環節已經結束。我現在想將電話轉回給 Paul Maleh 以徵求結束意見。

Again, thanks to everyone for joining us today. We appreciate your time and continued interest in CRA. We will be participating in meetings with investors in the coming months, and we look forward to updating you on our progress on our second quarter call. That concludes today's call. Thank you, Rob.

再次感謝大家今天加入我們。感謝您抽出時間以及對 CRA 的持續關注。我們將在未來幾個月內參加與投資者的會議，我們期待在第二季度電話會議上向您通報我們的最新進展。今天的電話會議到此結束。謝謝你，羅布。

You're very welcome. This concludes our call today. You may disconnect your lines at this time. And we thank you for your participation.

非常不客氣。我們今天的電話會議到此結束。此時您可以斷開線路。我們感謝您的參與。