May 8, 2012
MIAMI, FL - May 8, 2012 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the first quarter of 2012, which ended March 30, 2012.
First quarter 2012 revenue was $57.0 million, an 8% increase from the same period in 2011. Pro forma diluted earnings per share were $0.08 for the first quarter of 2012, as compared to $0.07 for the same period in 2011. 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 $0.09 for the first quarter of 2012, as compared to $0.08 in the first quarter of 2011.
At the end of the first quarter of 2012, the Company's cash balances were $13.5 million. On March 21, 2012, the Company completed a tender offer to purchase 11.0 million shares of its common stock at a purchase price of $5.00 per share for an aggregate cost of approximately $56.1 million, including fees and expenses. The transaction was funded using $40.0 million from a new credit facility, along with cash on hand.
"We are pleased with our operating results and with the momentum we built during the quarter," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. "This momentum and the favorable reaction experienced from the successful execution of our recently completed stock tender offer demonstrate the confidence we have in our ability to strategically deliver value to our clients and shareholders."
Based on the current economic outlook, the Company estimates total revenue for the second quarter of 2012 to be in the range of $58.5 million to $60.5 million, and estimates pro forma diluted earnings per share to be in the range of $0.10 to $0.12.
Key Issues Study Results - 2012 Key Issues Study results from The Hackett Group charted the impact of increased volatility, globalization, and other elements of the "New Normal," for finance, IT, and other business services functions. At an enterprise level, The Hackett Group found that companies are heavily focused on improving accuracy and timeliness of information to enable improved decision-making, and on leveraging global standards, resources, and organizational models as they struggle to "do more with less."
Offshoring Research Update - New offshoring research from The Hackett Group found that corporations in the U.S. and Europe will move an additional 750,000 jobs in IT, finance, and other business services to India and other low-cost geographies by 2016. However, levels of additional offshoring in these areas will begin to decline by 2014, and in the next 8 to10 years the flow of jobs offshore is likely to cease, as companies simply run out of business services jobs suitable for moving to low-cost countries.
US Postal Service Collections Research - REL Consulting, a division of The Hackett Group, found that the U.S. Postal Service's decision to eliminate next-day delivery of first-class mail could cost typical large U.S. companies up to $100 million each year by making it significantly harder to collect from customers quickly. REL also offered guidance that companies can use to address the impact of the Postal Service's change.
Strategic Alliance with the Chemical Information Service - Chemical Information Services (CIS) and The Hackett Group announced a strategic alliance which will offer CIS clients access to select Hackett research and insights. CIS is a leading provider of product and producer information to the chemical and pharmaceutical industries.
Answerthink Receives Awards from SAP - Answerthink, a division of The Hackett Group, received the Overall SAP Channel Partner of the Year Award, North America from SAP Americas. Awards were presented during the SAP North America Field Kick-Off Meeting to the top-performing SAP channel partners and SAP services partners.
On Tuesday, May 8, 2012, the senior management will discuss first quarter results in a conference call at 5:00 P.M. ET.
The number for the conference call is (800) 779-3138, [Passcode: First 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, May 8, 2012 and will run through 5:00 P.M. ET on Tuesday, May 22, 2012. To access the rebroadcast, please dial (800) 947-6258. For International callers, please dial (402) 220-3482.
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, May 8, 2012 and will run through 5:00 P.M. ET on Tuesday, May 22, 2012. 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.
Book of Numbers is a trademark of The Hackett Group.
EzLifeSciences is a trademark of Answerthink.
SAP and all SAP logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries.
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.