February 22, 2011
Miami, FL - February 22, 2011 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the fourth quarter, which ended December 31, 2010.
Fourth quarter 2010 revenue was $48.6 million, a 41% increase from the same period in 2009. Pro forma diluted earnings per share were $0.07 for the fourth quarter of 2010, as compared to pro forma diluted net loss per share of ($0.02) for the same period in 2009. Pro forma information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.
GAAP diluted earnings per share were $0.07 for the fourth quarter of 2010, as compared to diluted loss per share of ($0.22) in the fourth quarter of 2009. GAAP net loss for the fourth quarter of 2009 included $5.9 million, or $0.15 per dilutive share, for restructuring and other one-time charges relating to the acquisition of Archstone Consulting in November 2009.
Fiscal year 2010 revenue was $201.3 million, an increase of 41% from the previous fiscal year. Pro forma diluted net earnings per share for 2010 was $0.27, as compared to $0.05 in fiscal year 2009. GAAP diluted earnings per share in fiscal 2010 was $0.34, as compared to net loss per share of ($0.18) in the previous fiscal year. GAAP net income for 2010 includes a non-cash acquisition earn-out shares re-measurement gain of $1.7 million, non-cash stock compensation of $4.3 million and amortization expense of $2.0 million. GAAP net loss for 2009 includes acquisition-related restructuring and one-time charges of $5.9 million, non-cash stock compensation expense of $3.0 million and amortization expense of $1.1 million.
At the end of the fourth quarter of 2010, the Company's cash balances were $26.9 million. During the quarter ended December 31, 2010, the Company repurchased 665 thousand shares of its common stock at an average cost of $3.57 per share, for a total cost of $2.4 million. For the fiscal year 2010, the Company repurchased 1.9 million shares at an average price of $3.26, for a total cost of $6.1 million. The Company's current remaining authorization is $4.5 million.
"We are pleased with our strong year-over-year improvements in revenue and earnings," stated Ted A. Fernandez, Chairman and CEO of the The Hackett Group. "More importantly, we expect improved market conditions in the US and Europe and the introduction of new offerings to allow us to build on the 2010 momentum."
Based on the current economic outlook, the Company estimates total revenue for the first quarter of 2011 to be in the range of $49.0 million to $51.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.05 to $0.07.
Offshoring Research - The Hackett Group's latest research found that close to 1.1 million jobs in corporate finance, IT, and other business functions were lost at large U.S. and European companies in 2008 and 2009 due to a combination of offshoring, productivity improvements, and lack of economic growth. The Hackett Group found that, with offshoring becoming a larger and larger factor each year, over 1.3 million additional jobs will disappear by 2014.
Archstone U.S. Holiday Retail Forecast - Archstone Consulting, a division of The Hackett Group, forecasted that U.S. holiday retail sales would rise by only 1.5% in 2010. This is a significant improvement over the sharp 3.9% decline of 2008, but represents only a modest improvement over the 0.4% increase of 2009. Archstone's analysts found that despite some economic growth, stagnant family income and limited spending power have driven many Americans to feel that the recession is not over. However, Archstone saw opportunities in diverse sectors, including value retailers and retailers selling high-end luxury goods, as both of these sectors have already seen moderate to strong sales growth this year.
The Hackett Group and the APA Team on Payroll Portal - The Hackett Group and the American Payroll Association announced that they have teamed up on a new Payroll Metrics Portal (www.payrollmetrics.org) designed to make it easy for companies to fine tune their payroll processes, enhance workforce management, and improve their bottom line. The portal enables companies to gain a deeper understanding of the payroll and workforce management processes, which are key performance measures of leading organizations like Starbucks, Wolters Kluwer, and NYU Langone Medical Center.
At 5:00 P.M. ET on Tuesday, February 22, 2011, the senior management of The Hackett Group (NASDAQ:HCKT - News) will host a conference call to discuss fourth quarter earnings results for the period ending December 31, 2010.
The number for the conference call is (800) 857-9601, [Passcode: Fourth Quarter, Leader: Ted A. Fernandez]. For International callers, please dial (210) 234-8000.
Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, February 22, 2011 and will run through 5:00 P.M. ET on Tuesday, March 8, 2011. To access the rebroadcast, please dial (800) 677-8599. For International callers, please dial (203) 369-3710.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit http://www.thehackettgroup.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, February 22, 2011 and will run through 5:00 P.M. ET on Tuesday, March 8, 2011. To access the replay, visit http://www.thehackettgroup.com or http://www.streetevents.com.
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm to global companies. Services include business transformation, enterprise performance management, working capital management, and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle EPM and SAP practices.
The Hackett Group has completed more than 11,000 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 86% of the Fortune 100, 87% of the DAX 30 and 52% of the FTSE 100. These studies drive its Best Practice Intelligence Center™ which includes the firm's benchmarking metrics, best practices repository, and best practice configuration guides and process flows, which enable The Hackett Group's clients and partners to achieve world-class performance.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause The Hackett Group's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that impact such forward-looking statements include, among others, the ability of our products, services, or practices mentioned in this release to deliver the desired effect, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellations by our customers, changes in expectations regarding the information technology industry, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates as well as other risks detailed in our Company's Annual Report on Form 10-K for the most recent fiscal year filed with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
More information on The Hackett Group is available: by phone at +1 770 225 7300; by e-mail at email@example.com.