What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-08-05 compared with 2021-05-06 · 90 added, 49 removed, 130 unchanged (52% of the section changed)

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Critical Accounting Policies and Estimates

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of April 3, 2021 remain unchanged from January 2, 2021.

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of July 3, 2021 remain unchanged from January 2, 2021.

Please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the Securities and Exchange Commission on March 4, 2021, for details on these critical accounting policies.

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Please refer to the sections captioned “Recent Accounting Standards Adopted” included in Note 1, “Summary of Significant Accounting Policies” in Part I, Item I, “Financial Statements” of this report.

Results of Operations—For the Fiscal Quarter Ended April 3, 2021, Compared to the Fiscal Quarter Ended March 28, 2020

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Periods Ended July 3, 2021, Compared to the Fiscal Quarter and Fiscal Year-to-Date Periods Ended June 27, 2020

The following table provides operating information as a percentage of revenues for the periods indicated:

Fiscal Quarter

Ended Fiscal Year-to-Date

Revenues 100.0 % 100.0 % 100.0 % 100.0 %

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Net income 7.8 % 4.8 % 7.5 % 5.0 %

Fiscal Quarter Ended April 3, 2021, Compared to the Fiscal Quarter Ended March 28, 2020

Revenues increased by $20.3 million, or 16.1%, to $146.5 million for the first quarter of fiscal 2021 from $126.2 million for the first quarter of fiscal 2020.

The increase in net revenue was a result of an increase in gross revenues of $22.1 million as compared to the first quarter of fiscal 2020, partially offset by an increase in write-offs and reserves of $1.8 million compared to the first quarter of fiscal 2020.

Utilization increased to 76% for the first quarter of fiscal 2021 from 71% for the first quarter of fiscal 2020, while consultant headcount grew 4.8% from 799 at the end of the first quarter of fiscal 2020 to 837 at the end of the first quarter of fiscal 2021.

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(1) Percentage calculates to less than 0.1% for the fiscal quarter ended July 3, 2021.

Fiscal Quarter Ended July 3, 2021, Compared to the Fiscal Quarter Ended June 27, 2020

Revenues increased by $25.2 million, or 20.5%, to $148.2 million for the second quarter of fiscal 2021 from $123.0 million for the second quarter of fiscal 2020.

The increase in net revenue was a result of an increase in gross revenues of $25.5 million as compared to the second quarter of fiscal 2020, partially offset by an increase in write-offs and reserves of $0.3 million compared to the second quarter of fiscal 2020.

Utilization increased to 75% for the second quarter of fiscal 2021 from 66% for the second quarter of fiscal 2020, while consultant headcount grew 3.9% from 802 at the end of the second quarter of fiscal 2020 to 833 at the end of the second quarter of fiscal 2021.

Overall, revenues outside of the U.S.

represented approximately 20% of net revenues for the first quarter of fiscal 2021 and fiscal 2020.

Revenues derived from fixed-price projects remained at 23% of total revenues for the first quarter of fiscal 2021 compared with the first quarter of fiscal 2020.

represented approximately 19% of net revenues for the second quarter of fiscal 2021 and fiscal 2020.

Revenues derived from fixed-price projects decreased to 24% of total revenues for the second quarter of fiscal 2021 compared with 25% of net revenue for the second quarter of fiscal 2020.

The percentage of revenue derived from fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization).

Costs of services (exclusive of depreciation and amortization) increased by $14.4 million, or 15.8%, to $105.4 million for the first quarter of fiscal 2021 from $91.0 million for the first quarter of fiscal 2020.

Costs of services (exclusive of depreciation and amortization) increased by $14.8 million, or 16.5%, to $105.0 million for the second quarter of fiscal 2021 from $90.2 million for the second quarter of fiscal 2020.

The increase in costs of services was due primarily to an increase of $3.5 million in employee compensation and fringe benefit costs attributable to our increased consultant headcount, an increase in incentive and retention compensation costs of $8.8 million, and an increase in forgivable loan amortization of $0.3 million.

Additionally, client reimbursable expenses increased by $0.1 million in the first quarter of fiscal 2021 compared to the first quarter of fiscal 2020.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 71.9% for the first quarter of fiscal 2021 from 72.1% for the first quarter of fiscal 2020.

Additionally, client reimbursable expenses increased by $2.4 million in the second quarter of fiscal 2021 compared to the second quarter of fiscal 2020.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 70.9% for the second quarter of fiscal 2021 from 73.3% for the second quarter of fiscal 2020.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $0.9 million, or 3.8%, to $23.2 million for the first quarter of fiscal 2021 from $24.1 million for the first quarter of fiscal 2020.

Within this category of expenses, there was a $1.3 million decrease in travel and entertainment, a $0.6 million decrease in legal and other professional services fees, a $0.4 million decrease in rent expense, and a $0.2 million decrease in training and marketing expenses.

Partially offsetting the decrease in these expenses was a $1.0 million increase in commissions to our non-employee experts, a $0.3 million increase in software subscription and data services, and a $0.3 million increase in employee and incentive compensation for the first quarter of fiscal 2021 as compared to the first quarter of fiscal 2020.

As a percentage of revenues, selling, general and administrative expenses decreased to 15.8% for the first quarter of fiscal 2021 from 19.1% for the first quarter of fiscal 2020.

Commissions to our non-employee experts increased to 2.6% of revenues for the first quarter of fiscal 2021 compared to 2.2% of revenues for the first quarter of fiscal 2020.

Selling, general and administrative expenses increased by $2.6 million, or 12.3%, to $24.0 million for the second quarter of fiscal 2021 from $21.4 million for the second quarter of fiscal 2020.

Within this category of expenses, there was a $1.8 million increase in commissions to our non-employee experts, a $0.8 million increase in employee and incentive compensation, a $0.1 million increase in bad debt expense, and a $0.8 million increase in miscellaneous and other costs.

Partially offsetting the increase in these expenses was a $0.9 million decrease in rent expense for the second quarter of fiscal 2021 as compared to the second quarter of fiscal 2020.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.2% for the second quarter of fiscal 2021 from 17.4% for the second quarter of fiscal 2020.

Commissions to our non-employee experts increased to 3.2% of revenues for the second quarter of fiscal 2021 compared to 2.4% of revenues for the second quarter of fiscal 2020.

Provision for Income Taxes.

The income tax provision was $3.4 million and the effective tax rate ("ETR") was 24.4% for the first quarter of fiscal 2021 compared to $2.7 million and 29.4% for the first quarter of fiscal 2020.

The ETR for the first quarter of fiscal 2021 was lower than the prior year primarily due to an increase in the tax benefit related to the accounting for stock-based compensation as well as the impact of higher pre-tax earnings, which diluted the permanent unfavorable differences, primarily related to the impact of the deductibility of compensation paid to executive officers, with respect to the full-year estimated ETR.

The effective tax rate for the first quarter of fiscal 2021 was lower than the combined federal and state statutory tax rate due to the tax benefit related to the accounting for stock-based compensation, partially offset by non-deductible items resulting primarily from limitations of compensation paid to executive officers.

The effective tax rate for the first quarter of fiscal 2020 was higher than the combined federal and state statutory tax rate primarily due to non-deductible items resulting from limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment.

Net income increased by $4.0 million to $10.5 million for the first quarter of fiscal 2021 from $6.5 million for the first quarter of fiscal 2020.

The net income per diluted share was $1.34 per share for the first quarter of fiscal 2021, compared to $0.80 of net income per diluted share for the first quarter of fiscal 2020.

Weighted average diluted shares outstanding decreased by approximately 206,000 shares to approximately 7,831,000 shares for the first quarter of fiscal 2021 from approximately 8,037,000 shares for the first quarter of fiscal 2020.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since March 28, 2020, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units, the issuance of common stock for contingent consideration, and the exercise of stock options since March 28, 2020.

The income tax provision was $4.0 million and the effective tax rate ("ETR") was 25.8% for the second quarter of fiscal 2021 compared to $1.9 million and 24.6% for the second quarter of fiscal 2020.

The ETR for the second quarter of fiscal 2021 was higher than the prior year primarily due to the prior year's tax impact of increased forecasted profit as compared to the fiscal quarter ended March 28, 2020, that was non-recurring in the current year.

The rate was also higher this year as a result of the remeasurement of the U.K.'s long-term deferred tax liabilities stemming from the enactment of a U.K.

statutory tax rate increase offset by an increase in the tax benefit related to the accounting for stock-based compensation.

The ETR for the second quarter of fiscal 2021 was lower than the combined federal and state statutory tax rate due to the tax benefit related to the accounting for stock-based compensation, partially offset by non-deductible items resulting primarily from limitations of compensation paid to executive officers and the impact of the U.K.

statutory tax rate change.

The ETR for the second quarter of fiscal 2020 was lower than the combined federal and state statutory tax rate due to the tax benefit related to the accounting for stock-based compensation as well as the impact of continued strong profit generation, partially offset by non-deductible items resulting primarily from limitations on the deductibility of compensation paid to executive officers and meals and entertainment.

Net income increased by $5.7 million to $11.6 million for the second quarter of fiscal 2021 from $5.9 million for the second quarter of fiscal 2020.

The net income per diluted share was $1.53 per share for the second quarter of fiscal 2021, compared to $0.75 of net income per diluted share for the second quarter of fiscal 2020.

Weighted average diluted shares outstanding decreased by approximately 381,000 shares to approximately 7,539,000 shares for the second quarter of fiscal 2021 from approximately 7,920,000 shares for the second quarter of fiscal 2020.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 27, 2020, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units, the issuance of common stock for contingent consideration, and the exercise of stock options since June 27, 2020.

Fiscal Year-to-Date Period Ended July 3, 2021, Compared to the Fiscal Year-to-Date Period Ended June 27, 2020

Revenues increased by $45.6 million, or 18.3%, to $294.8 million for the fiscal year-to-date period ended July 3, 2021 from $249.2 million for the fiscal year-to-date period ended June 27, 2020.

The increase in net revenue was a result of an increase in gross revenues of $47.6 million as compared to the fiscal year-to-date period ended June 27, 2020, and a increase in write-offs and reserves of $2.0 million as compared to the fiscal year-to-date period ended June 27, 2020.

Utilization increased to 76% for the fiscal year-to-date period ended July 3, 2021 from 68% for the fiscal year-to-date period ended June 27, 2020, while consultant headcount grew 3.9% from 802 at the end of the second quarter of fiscal 2020 to 833 at the end of the second quarter of fiscal 2021.

Overall, revenues outside of the U.S.

represented approximately 19% and 20% of net revenues for the fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, respectively.

Revenues derived from fixed-price projects were 24% of net revenues for each of the fiscal year-to-date periods ended July 3, 2021 and June 27, 2020.

Costs of Services (exclusive of depreciation and amortization).

Costs of services (exclusive of depreciation and amortization) increased by $29.2 million, or 16.1%, to $210.4 million for the fiscal year-to-date period ended July 3, 2021 from $181.2 million for the fiscal year-to-date period ended June 27, 2020.

The increase in costs of services was due primarily to an increase of $8.0 million in employee compensation and fringe benefit costs associated with our increased consulting headcount, an increase in incentive and retention compensation costs of $19.0 million, an increase in forgivable loan amortization of $1.2 million, partially offset by a decrease in expense related to other compensation of $0.9 million, and a decrease in the valuation expense of the contingent consideration of $0.6 million.

Additionally, client reimbursable expenses increased by $2.5 million in the fiscal year-to-date period ended July 3, 2021 compared to the fiscal year-to-date period ended June 27, 2020.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 71.4% for the fiscal year-to-date period ended July 3, 2021 from 72.7% for the fiscal year-to-date period ended June 27, 2020.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $1.8 million, or 3.8%, to $47.3 million for the fiscal year-to-date period ended July 3, 2021 from $45.5 million for the fiscal year-to-date period ended June 27, 2020.

Within this category of expenses, there was a $2.8 million increase in commissions to our non-employee experts, a $1.4 million increase in employee and incentive compensation, and a $0.8 million increase in miscellaneous and other costs.

Partially offsetting the increase in these expenses was a $1.1 million decrease in travel and entertainment, a $0.8 million decrease in legal and other professional services fees, and a $1.3 million decrease in rent expense for the fiscal year-to-date period ended July 3, 2021 as compared to the fiscal year-to-date period ended June 27, 2020.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.0% for the fiscal year-to-date period ended July 3, 2021 from 18.3% for the fiscal year-to-date period ended June 27, 2020.

Commissions to our non-employee experts increased to 2.9% of revenues for the fiscal year-to-date period ended July 3, 2021 compared to 2.3% of revenues for the fiscal year-to-date period ended June 27, 2020.

Provision for Income Taxes.

For the fiscal year-to-date period ended July 3, 2021, our income tax provision was $7.4 million, and the ETR was 25.1%, compared to $4.6 million and 27.2% for the fiscal year-to-date period ended June 27, 2020.

The ETR for the fiscal year-to-date period ended July 3, 2021 was lower than the prior year due in part to the higher year-to-date profit to dilute the tax impact of non-deductible items resulting primarily from limitations of compensation paid to executive officers.

The rate was also lower due to an increase in the tax benefit related to the accounting for stock-based compensation partially offset by the impact of the U.K.

statutory tax rate increase.

The ETR in the fiscal year-to-date period ended July 3, 2021 was lower than the combined federal and state statutory tax rate due to the tax benefit related to accounting for stock-based compensation, partially offset by non-deductible items resulting primarily from limitations on the deductibility of compensation paid to executive officers and the impact of the U.K.

statutory tax rate change.

The ETR for the fiscal year-to-date period ended June 27, 2020 was the same as the combined federal and state statutory tax rate but included the effect of offsetting adjustments primarily driven by the tax benefit on stock-based compensation and non-deductible items resulting from limitations on the deductibility of compensation paid to executive officers and meals and entertainment.

Net income increased by $9.7 million to $22.1 million for the fiscal year-to-date period ended July 3, 2021 from $12.4 million for the fiscal year-to-date period ended June 27, 2020.

The diluted net income per share was $2.86 for the fiscal year-to-date period ended July 3, 2021, compared to diluted net income per share of $1.55 for the fiscal year-to-date period ended June 27, 2020.

Weighted average diluted shares outstanding decreased by approximately 294,000 to approximately 7,685,000 shares for the fiscal year-to-date period ended July 3, 2021 from approximately 7,979,000 shares for the fiscal year-to-date period ended June 27, 2020.

The decrease in weighted average diluted shares outstanding was primarily

due to the repurchase of shares of our common stock since June 27, 2020, offset in part by the vesting of restricted stock and time-vesting restricted stock units, the issuance of common stock for contingent consideration, and the exercise of stock options since June 27, 2020.

Liquidity and Capital Resources

Fiscal Quarter Ended April 3, 2021

Fiscal Year-to-Date Period Ended July 3, 2021

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.

During the fiscal quarter ended April 3, 2021, cash and cash equivalents decreased by $14.0 million.

During the fiscal year-to-date period ended July 3, 2021, cash and cash equivalents decreased by $31.7 million.

We completed the period with cash and cash equivalents of $14.0 million.

The principal drivers of the reduction of cash were payment of a significant portion of our fiscal 2020 performance bonuses in this fiscal quarter, the payment of the contingent consideration liability, the repurchase of shares, and the payment of dividends, offset by net borrowings of $40.0 million.

During the fiscal quarter ended April 3, 2021, working capital (defined as current assets less current liabilities) increased by $7.6 million to $27.4 million.

The increase in working capital was principally due to a decrease in accrued expenses of $35.6 million, mostly due to the payment of our fiscal 2020 performance bonuses offset by fiscal 2021 performance bonus accruals and their related taxes.

The increase in working capital was also due to increases in accounts receivable and unbilled services of $3.2 million, and a decrease in the current portion of deferred compensation of $19.7 million primarily related to the payment of the contingent consideration and payment of cash awards for our long-term incentive program.

Partially offsetting these increases in working capital was a decrease in cash and cash equivalents of $14.0 million and an increase in borrowings of $40.0 million.

At April 3, 2021, $9.9 million of our cash and cash equivalents was held within the U.S.

The principal drivers of the reduction of cash were payment of a significant portion of our fiscal 2020 performance bonuses in the first and second fiscal quarters of fiscal 2021, the payment of the contingent consideration liability, the repurchase of shares, and the payment of dividends, offset by net borrowings of $45.0 million.

During the fiscal year-to-date period ended July 3, 2021, working capital (defined as current assets less current liabilities) decreased by $3.0 million to $16.8 million.

The decrease in working capital was principally due to a decrease in cash and cash equivalents of $31.7 million and an increase in borrowings of $45.0 million.

Partially offsetting these decreases in working capital was a decrease in accrued expenses of $36.9 million, an increase in accounts receivable and unbilled services of $21.4 million, a decrease in the current portion of our forgivable loans of $6.1 million, and a decrease in the current portion of deferred compensation of $18.1 million.

At July 3, 2021, $3.7 million of our cash and cash equivalents was held within the U.S.

We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility to fund U.S.

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Sources and Uses of Cash.

During the fiscal quarter ended April 3, 2021, net cash used in operating activities was $39.8 million.

Net income was $10.5 million for the fiscal quarter ended April 3, 2021.

During the fiscal year-to-date period ended July 3, 2021, net cash used in operating activities was $36.2 million.

Net income was $22.1 million for the fiscal year-to-date period ended July 3, 2021.

The primary factor in cash used in operations was the decrease in accounts payable, accrued expenses, and other liabilities of $50.2 million, due primarily to the payment of a significant portion of our fiscal 2020 performance bonuses and performance awards and the payment of the contingent consideration liability.

Other uses of cash included a $3.8 million decrease in lease liabilities, a net increase of $3.1 million in accounts receivable and unbilled receivables due primarily to the increase in revenues and the timing of billings, and a $2.7 million increase in prepaid expenses and other current assets.

Other uses of cash included a $7.6 million decrease in lease liabilities, a net increase of $21.2 million in accounts receivable and unbilled receivables due primarily to the increase in revenues and the timing of billings, and a $4.1 million increase in prepaid expenses and other current assets primarily related to the timing of renewing annual subscriptions.

The decrease in forgivable loans for the period of $8.1 million was primarily driven by $4.5 million of forgivable loan issuances, offset by $12.6 million of forgivable loan amortization.

Cash used in operations included incentive cash award expense of $1.7 million, non-cash depreciation and amortization expense of $3.3 million, right-of-use amortization of $3.2 million, share-based compensation expenses of $0.8 million, and other non-cash expenses of $0.9 million.

During the fiscal quarter ended April 3, 2021, net cash used in investing activities was $0.7 million for capital expenditures primarily related to the purchases of office equipment.

During the fiscal quarter ended April 3, 2021, net cash provided by financing activities was $26.5 million, primarily as a result of borrowings, net of repayments, under the revolving credit facility of $40.0 million and $1.1 million received upon the issuance of shares of common stock related to the exercise of stock options.

Offsetting these increases in cash were the tax withholding payments reimbursed by restricted shares of $0.6 million, payment of $2.1 million of cash dividends to shareholders, $9.6 million of repurchases of common stock, and a portion of the payment of the contingent consideration classified as a financing activity in the amount of $2.4 million.

Cash used in operations included incentive cash award expense of $3.3 million, non-cash depreciation and amortization expense of $6.5 million, right-of-use amortization of $6.4 million, share-based compensation expenses of $1.8 million, and other non-cash benefits of $1.3 million.

During the fiscal year-to-date period ended July 3, 2021, net cash used in investing activities was $1.2 million for capital expenditures primarily related to purchases of office equipment.

During the fiscal year-to-date period ended July 3, 2021, net cash provided by financing activities was $5.6 million, primarily as a result of borrowings, net of repayments, under the revolving credit facility of $45.0 million and $2.5 million received upon the issuance of shares of common stock related to the exercise of stock options.

Offsetting these increases in cash were the tax withholding payments reimbursed by restricted shares of $0.6 million, payment of $4.0 million of cash dividends and dividend equivalents, $35.0 million of repurchases of common stock, and a portion of the payment of the contingent consideration classified as a financing activity in the amount of $2.4 million.

Lease Commitments

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Generally, we may repay any borrowings under the revolving credit facility at any time, but we must repay all borrowings no later than October 24, 2022.

There was $40.0 million in borrowings outstanding under the revolving credit facility as of April 3, 2021.

The amount available under the revolving credit facility is reduced by certain letters of credit outstanding, which amounted to $4.7 million as of April 3, 2021.

There was $45.0 million in borrowings outstanding under the revolving credit facility as of July 3, 2021.

The amount available under the revolving credit facility is reduced by certain letters of credit outstanding, which amounted to $4.4 million as of July 3, 2021.

Borrowings under the revolving credit facility bear interest at a rate per annum, at our election, of either (i) the adjusted base rate, as defined in the credit agreement, plus an applicable margin, which varies between 0.25% and 1.25% depending on our total leverage ratio as determined under the credit agreement, or (ii) the adjusted eurocurrency rate, as defined in the credit agreement, plus an applicable margin, which varies between 1.25% and 2.25% depending on our total leverage ratio.

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Borrowings under the revolving credit facility are secured by 100% of the stock of certain of our U.S.

subsidiaries and 65% of the stock of certain of our foreign subsidiaries, which represent approximately $29.8 million in net assets as of April 3, 2021.

subsidiaries and 65% of the stock of certain of our foreign subsidiaries, which represent approximately $31.3 million in net assets as of July 3, 2021.

Under the credit agreement, we must comply with various financial and non-financial covenants.

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The non-financial covenant restrictions of the senior credit agreement include, but are not limited to, our ability to incur additional indebtedness, engage in acquisitions or dispositions, and enter into business combinations.

At April 3, 2021 and currently, we are in compliance with the covenants of our credit agreement.

At July 3, 2021 and currently, we are in compliance with the covenants of our credit agreement.

Forgivable Loans

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We may repurchase shares under this program in open market purchases (including through any Rule 10b5-1 plan adopted by us) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations.

During the fiscal quarter ended April 3, 2021, we repurchased and retired 166,552 shares under our share repurchase program at an average price per share of $57.93.

During the fiscal quarter ended March 28, 2020, we repurchased and retired 82,613 shares under our share repurchase program at an average price per share of $46.15.

As of April 3, 2021, we had approximately $40.5 million available for future repurchases under our share repurchase program.

During the fiscal quarter ended July 3, 2021, we did not repurchase any shares under this share repurchase program.

Refer to the section titled "Self-Tender Offer" below for discussion of shares repurchased under our modified "Dutch auction" self-tender offer.

For the fiscal year-to-date period ended July 3, 2021, we repurchased and retired 166,552 shares under our share repurchase program at an average price per share of $57.93.

During the fiscal quarter ended June 27, 2020, we did not repurchase any shares under our share repurchase program.

During the fiscal year-to-date period ended June 27, 2020, we repurchased and retired 82,613 shares under our share repurchase program at an average price per share of $46.15.

As of July 3, 2021, we had approximately $40.5 million available for future repurchases under our share repurchase program.

We plan to finance future repurchases with available cash, cash from future operations, and funds from our revolving credit facility.

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The self-tender offer expired on April 5, 2021.

On April 8, 2021, we paid $25.0 million to repurchase 337,837 shares at a purchase price of $74.00 per share.

On April 8, 2021, we paid $25.3 million, including transaction costs, to repurchase 337,837 shares at a purchase price of $74.00 per share.

The purchase price and transaction costs were funded from the revolving credit facility and cash on hand.

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Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors.

During the fiscal quarters ended April 3, 2021 and March 28, 2020, we paid dividends and dividend equivalents of $2.1 million and $1.8 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended July 3, 2021, we paid dividends and dividend equivalents of $1.9 million and $4.0 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended June 27, 2020, we paid dividends and dividend equivalents of $1.8 million and $3.6 million, respectively.

Impact of Inflation

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• potential acquisitions of businesses that would allow us to diversify or expand our service offerings;

• contingent obligations related to our acquisitions;

• potential contingent obligations related to our acquisitions;

• other known future contractual obligations.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis