May 9, 2011
MIAMI, FL - May 9, 2011 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the first quarter, which ended April 1, 2011.
First quarter 2011 revenue was $52.9 million, a 13% increase from the same period in 2010. Pro forma diluted earnings per share were $0.07 for the first quarter of 2011, as compared to $0.05 for the same period in 2010. 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 $0.08 for the first quarter of 2011, as compared to $0.07 for the same period in 2010.
"We were pleased to see the demand for our services build throughout the quarter," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. "More importantly, is the momentum it allows us to carry into the second quarter and the improved prospects for the year."
At the end of the first quarter of 2011, the Company's cash balances were $18.0 million. During the quarter ended April 1, 2011, the Company repurchased 673 thousand shares of its common stock at an average cost of $3.58 per share, for a total cost of $2.4 million. At its recent meeting, the Board of Directors approved to increase the stock repurchase program authorization by an additional $5.0 million.
Based on the current economic outlook, the Company estimates total revenue for the second quarter of 2011 to be in the range of $55.0 million to $57.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.07 to $0.09.
HR Book of Numbers™ Research - The Hackett Group released a new HR Book of Numbers edition, which found that while typical companies saw the recession drive up HR costs by over 11% from 2008 to 2010, world-class HR organizations largely avoided the impact, and managed to reduce costs by more than 13%. The Hackett Group found that world-class companies now spend nearly 30% less per employee on HR, and operate with over 25% fewer employees. In addition to this dramatic cost reduction, they also achieve significantly higher effectiveness across many key areas.
Key Issues Studies Research - The Hackett Group publicly released results from a series of key issue studies designed to identify the primary issues shaping the executive agenda in 2011 for the enterprise overall, corporate finance, IT, human resources, and procurement. At the enterprise level, a key theme was changes in global growth opportunities which requires changes in global operating models which drive the focus on: growth in emerging markets; productivity improvement to increase competitiveness; improved analysis and decision-making to counter market uncertainty; the evolution to global strategies and operating models; and the management of talent in asymmetrical markets.
Inflation Research Launch - The Hackett Group launched an open performance study for supply chain and procurement executives and others designed to assess how companies are responding to input cost inflation and the best practices they are adopting to manage it.
At 5:00 P.M. EDT on Monday, May 9, 2011, the senior management of The Hackett Group (NASDAQ: HCKT) will host a conference call to discuss first quarter earnings results for the period ending April 1, 2011. The number for the conference call is (800) 857-9601, [Passcode: First 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 Monday, May 9, 2011 and will run through 5:00 P.M. ET on Monday, May 23, 2011. To access the rebroadcast, please dial (866) 509-6768. For International callers, please dial (203) 369-1932.
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 Monday, May 9, 2011 and will run through 5:00 P.M. ET on Monday, May 23, 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 13,300 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 87% of the Fortune 100, 87% of the DAX 30 and 58% 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.