August 9, 2011
MIAMI, FL - August 9, 2011 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the second quarter, which ended July 1, 2011.
Second quarter 2011 revenue was $58.8 million, a 10% increase from the same period in 2010. Pro forma diluted earnings per share were $0.09 for the second quarter of 2011, as compared to $0.08 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 $0.10 for both the second quarter of 2011 and 2010.
"Our strong results continued to emanate from improved demand, servicing our executive advisory client base more broadly and improving cross-selling synergies into our technology groups," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "We expect to see this momentum carry into the third quarter for most of our offerings."
At the end of the second quarter of 2011, the Company's cash balances were $19.5 million. During the quarter ended July 1, 2011, the Company repurchased 830 thousand shares of its common stock at an average cost of $4.38 per share, for a total cost of $3.6 million. The Company's remaining authorization at the end of the second quarter of 2011 was approximately $3.5 million.
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2011 to be in the range of $57.0 million to $59.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.07 to $0.09.
Best Practices Conference - In May, The Hackett Group held its 2011 North American Best Practices Conference, "Accelerating Global Growth". The invitation-only event was attended by over 200 senior-level executives from the world's most respected brands. It featured speakers from nearly two dozen of the world's most successful companies, including CEOs, CFOs, CIOs, and leaders in procurement, human resources, and global business services from Dow, Fidelity, Kohler, The Walt Disney Company, Thomson Reuters, and others. At the conference, the Company introduced The Hackett Performance Exchange,™ a new automated measurement system designed to accelerate companies' journeys to world-class performance.
HP World-Class Finance Award - The Hackett Group recognized HP as a world-class performer in corporate finance. The award was based on the results of an in-depth benchmark performed by The Hackett Group, and recognizes HP's status as an organization demonstrating top quartile efficiency and effectiveness in finance operations. Finance is the third business operations function at HP to achieve world-class performance levels. HP has also achieved world-class performance standing in both human resources and indirect procurement.
Higher Education Alliance - Accenture and The Hackett Group announced that they are working together to support the efforts of U.S. universities to reduce administrative costs and improve efficiency in response to ongoing financial and operational pressures. Recent joint work has included projects at: The Inter-University Council of Ohio (IUC); Indiana University (IU); Miami University; and The University of Massachusetts.
At 5:00 P.M. ET on Tuesday, August 9, 2011, the senior management of The Hackett Group will host a conference call to discuss second quarter earnings results for the period ending July 1, 2011. The number for the conference call is (800) 779-3138, [Passcode: Second Quarter, Leader: Ted A. Fernandez]. For International callers, please dial (517) 308-9381.
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, August 9, 2011 and will run through 5:00 P.M. ET on Tuesday, August 23, 2011. To access the rebroadcast, please dial (800) 388-4923. For International callers, please dial (203) 369-3800.
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, August 9, 2011 and will run through 5:00 P.M. ET on Tuesday, August 23, 2011. To access the replay, visit www.thehackettgroup.com or 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 firstname.lastname@example.org.