Financial Data and Key Metrics Changes - For Q4 2024, total revenues increased by 11% to $136.8 million, while net revenues rose by 9% to $123.8 million compared to the same period in 2023 [13] - Net income for Q4 was $23.6 million, or $0.46 per diluted share, up from $20.9 million, or $0.41 per diluted share in the prior year [13] - EBITDA for Q4 was $31.2 million, producing a margin of 25.2% of net revenues, compared to $30.5 million or 26.8% in the same period of 2023 [13][14] - For the full year 2024, total revenues increased by 4% to $558.5 million, and net revenues also increased by 4% to $518.5 million [18] - Net income for the year rose by 9% to $109 million, or $2.11 per diluted share [18] Business Line Data and Key Metrics Changes - The Engineering and Other Scientific segment represented 83% of revenues before reimbursements in Q4, with revenues increasing by 8% [23] - The Environmental and Health segment accounted for 17% of net revenues in Q4, with net revenues increasing by 11% [24] - Growth in the chemicals industry was noted, particularly in litigation and regulatory engagements [5][25] Market Data and Key Metrics Changes - Demand for proactive services strengthened in the second half of the year, particularly in consumer electronics and utilities [5] - The utility sector saw increased activity driven by asset integrity management and energy infrastructure projects [6][7] - The company is closely monitoring regulatory changes, particularly from the EPA and FDA, which could impact client engagements [8][9] Company Strategy and Development Direction - The company aims to align headcount growth with market opportunities, expecting sequential increases in 2025 [10][27] - Focus on technological advancements and their implications across industries, including energy, digital health, and transportation [10][11] - The company is positioned to support clients navigating a complex regulatory environment while pursuing long-term product strategies [9][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term pipeline, particularly in the chemicals industry, despite a 5% to 6% deficit in headcount at the start of 2025 [37][38] - The company anticipates low single-digit revenue growth for Q1 2025, with expectations for growth in the latter half of the year [25][27] - Management highlighted the importance of sustainable recruiting aligned with demand to achieve long-term growth targets [56][57] Other Important Information - The company expects EBITDA margins for 2025 to be lower due to increased noncash expenses and other operational costs [26][30] - Capital expenditures for 2025 are projected to be between $10 million and $12 million [30] - The company plans to return to a 52-week fiscal year in 2025, which will affect revenue comparisons [25] Q&A Session Summary Question: Visibility on near-term pipeline and guidance conservatism - Management noted strong demand in the chemicals industry and expressed confidence in the pipeline, despite a tough comparison in Q1 2024 [36][37] Question: Performance and outlook of the energy infrastructure business - Management discussed robust performance in both proactive and reactive work within the energy sector, driven by increasing demand for new power sources [41][44] Question: Regulatory exposure and revenue percentage related to regulatory concerns - Approximately 10% of the company's work involves regulatory processes, with about half in the chemicals area, primarily international [50][52] Question: Opportunities for accelerating recruiting - Management emphasized the importance of aligning recruiting pace with demand, aiming for sustainable growth [54][56] Question: Size and growth of the chemicals business - The chemicals business represents a low double-digit percentage of overall revenue, with growth rates in the low to mid-teens for Q4 [61] Question: Impact of AI on the company - Management highlighted opportunities in AI for safety-critical decisions, while noting the scrutiny that AI data faces in legal settings [65][66]