May 6, 2014
MIAMI, FL - May 6, 2014 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and business transformation and technology consulting firm, today announced its financial results for the first quarter, which ended March 28, 2014.
First quarter 2014 revenue was $54.9 million. Pro forma diluted earnings per share were $0.08 for the first quarter of 2014, as compared to $0.10 for the same period in 2013. 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 loss per share was $0.07 for the first quarter of 2014, as compared to diluted earnings per share $0.06 in the first quarter of 2013. GAAP loss per share for the first quarter of 2014 included a $3.6 million restructuring charge primarily related to organizational actions taken in Europe.
During the first quarter the Company utilized cash to repurchase approximately 716 thousand shares of the Company's common stock at an average price of $6.06 per share, for a total cost of $4.3 million. As of the end of the first quarter of 2014, the Company's remaining stock repurchase program authorization was $5.3 million.
"As a result of our actions taken in Europe, the strong Hackett North America momentum and the Application Management Services acquisition, we now have the opportunity to meet or exceed last year's second quarter results. This is in spite of having only neutralized the European contribution impact at this point," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc.
Based on the current economic outlook, the Company estimates total revenue for the second quarter of 2014 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 $0.12 to $0.14.
Technolab Acquisition - The Hackett Group announced the acquisition of Technolab International Corporation's U.S., Canada and Uruguay operations. The acquisition brings many strategic synergies. The Hackett Group's EPM practice represents the company's single largest practice area, and Technolab adds a group of highly skilled associates based primarily out of its Montevideo, Uruguay, Global Application Management Services Center. The acquisition provides The Hackett Group with new application management services and offshore development support capabilities which will strongly complement existing EPM and BI offerings.
Finance Key Issues Research - New Finance Key Issues research from The Hackett Group found that corporate finance leaders are expecting budgets to be slightly up while staffing will continue to be reduced in 2014. In the face of a significant drive toward revenue growth, this will translate into another year of pressure on finance organization to deliver productivity improvements. As business strategies are focusing on innovation to realize much of this growth, finance also needs to make significant shifts in staff and services to support this enterprise agenda.
Procurement Key Issues Research - New Procurement Key Issues research from The Hackett Group found that procurement leaders are expanding their priorities for 2014, moving beyond a historic emphasis on reducing purchase costs and adding focus on expanding and deepening the scope of spend influence as well as supporting supplier-led product innovation.
On Tuesday, May 6, 2014, 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 6, 2014 and will run through 5:00 P.M. ET on Tuesday, May 20, 2014. To access the rebroadcast, please dial (800) 216-6081. For International callers, please dial (402) 220-3895.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit 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 6, 2014 and will run through 5:00 P.M. ET on Tuesday, May 20, 2014. 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, offering digital transformation and enterprise application approaches including a 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.
This press release contains "forward-looking statements" and involves 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 business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates and our ability to obtain debt financing through additional borrowings under an amendment to our existing credit facility, as well as other risks detailed in our reports filed with the SEC. 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.