August 7, 2012
MIAMI, FL - August 7 , 2012 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the second quarter of 2012, which ended June 29, 2012.
Second quarter 2012 revenue was $61.3 million, a 4% increase (6% on a constant currency basis) from the same period in 2011. Pro forma diluted earnings per share were $0.11 for the second quarter of 2012, as compared to $0.09 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 $0.12 for the second quarter of 2012, as compared to $0.10 from the same period in 2011. For comparison purposes, the second quarter of 2012 GAAP earnings per share were unfavorably impacted by a penny, when compared to the same quarter in 2011, as a result of the 2011 year end release of the deferred tax valuation allowance.
"The momentum that we built entering the second quarter was tempered only by the higher than expected impact of foreign exchange fluctuations on our earnings," stated Ted A. Fernandez, Chairman and CEO of The Hackett Group. "Even though our third quarter results will be unfavorably impacted by our European Operations, we continue to believe our focus on Operating Excellence and Enterprise Performance Management is well aligned with the complexity of the global economy."
At the end of the second quarter of 2012, the Company's cash balances were $14.5 million. During the second quarter of 2012, the Company repaid $8.0 million of its new credit facility, leaving a $32.0 million balance at quarter end.
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2012 to be in the range of $56.0 million to $58.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.09 to $0.11.
Procurement Key Issues Study Results - The Hackett Group's 2012 Procurement Key Issues Study found that procurement organizations can expect to see small budget and staff increases in 2012. The Hackett Group's research also found that procurement organizations are heavily focused on addressing demand and pricing volatility that is the "New Normal."
Working Capital Performance Study Results - REL Consulting, a division of The Hackett Group, issued results from a working capital performance study showing that despite a global business environment where companies can be harshly punished by Wall Street for even small missteps in predicting revenue or earnings, most large companies say they cannot correctly forecast operational basics like inventory, receivables, payables, and the underlying cash requirements to support them. According to the REL study, typical companies potentially miss quarterly working capital forecasts (including inventory, receivables, and payables) by up to 23%, which amounts to up to $600 million for a typical Global 1000 company (with $29 billion annual revenue).
Reshoring Research - The Hackett Group issued research showing some companies are reshoring a portion of their manufacturing capacity, and this trend is expected to reach a crucial tipping point over the next two to three years, as the total landed cost gap between U.S. and China continues to shrink, driven in part by rising wage inflation in China and continued productivity improvements in the U.S.
Answerthink SAP Go-Live at Exact Sciences - Answerthink, a division of The Hackett Group focused on providing and supporting SAP® solutions, announced that while leveraging SAP's fast-start implementation approach, it has delivered a successful go-live implementation of EzLifeSciences™, a qualified SAP Business All-in-One partner solution for the life sciences industry, at Exact Sciences Corporation.
On Tuesday, August 7, 2012 the senior management will discuss second quarter results in a conference call at 5:00 P.M. ET. 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 7, 2012 and will run through 5:00 P.M. ET on Tuesday, August 21, 2012. To access the rebroadcast, please dial (800) 324-4693. For International callers, please dial (203) 369-3245.
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 7, 2012 and will run through 5:00 P.M. ET on Tuesday, August 21, 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, offering digital transformation and enterprise application approaches including a class="seclude" href="/capabilities/solutions/digital-operations/robotic-process-automation/">robotic process automation and cloud computing. 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 13,000 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.
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.