August 5, 2014
MIAMI, FL - August 5, 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 second quarter, which ended June 27, 2014.
Second quarter 2014 revenue was $61.1 million. Pro forma diluted earnings per share were $0.16 for the second quarter of 2014, as compared to $0.13 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 earnings per share were $0.12 for the second quarter of 2014, an increase of 33%, as compared to diluted earnings per share of $0.09 in the second quarter of 2013.
During the second quarter, the Company utilized cash to repurchase approximately 491 thousand shares of the Company's common stock at an average price of $6.03 per share, for a total cost of $3.0 million. As of the end of the second quarter of 2014, the Company's remaining stock repurchase program authorization was $2.3 million. Subsequent to quarter end, the Company's Board of Directors approved to increase the stock repurchase program authorization by an additional $5.0 million.
"As a result of our actions taken in Europe and the strong Hackett North America momentum, we exceeded last year's second quarter results," stated Ted. A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "More importantly, we expect improving International results to help us carry this momentum into the third quarter."
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2014 to be in the range of $58.0 million to $60.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.14 to $0.16.
North American Best Practices Conference - "Accelerating Growth Through Innovation" was the focus of The Hackett Group's 2014 North American Best Practices Conference held at the Peninsula Hotel in Chicago April 28-30, 2014. This year's best practices conference brought together speakers from more than a dozen of the world's most respected companies, including CFOs, CIOs, and leaders in procurement, human resources, and global business services from: Air Products; Alcoa; Coty; Johnson & Johnson; Marriott; Mead Johnson Nutrition; MultiCare Health System; Oracle Corporation; PAREXEL International Corporation; RAI Services Company; United Continental Holdings; and Xerox Corporation. The sold out event was attended by over 200 senior-level executives from the world's most respected brands.
Enterprise Performance Measurement (EPM) Key Issues Research - New EPM Key Issues research from The Hackett Group found that companies now focusing on innovation as a core strategy to deliver revenue growth and margin improvements. Financial Planning & Analysis (FP&A) organizations need to rise to the challenge and pursue broad transformation in EPM and business intelligence. The Hackett Group's research recommends three main areas of transformation focus for FP&A: integration of EPM processes and development of better business partnerships; improvement of core processes to recalibrate FP&A's value proposition; and development of better business intelligence capabilities.
IT Key Issues Research - New IT Key Issues research from The Hackett Group found that IT leaders are striving to reinvent themselves in 2014, as they struggle to support innovation-based corporate growth efforts with improved information and analytics. At the same time, IT organizations are facing another year of staff cuts and only small budget increases in the face of moderate revenue growth expectations. According to The Hackett Group's research, companies are focusing on three IT strategy areas for 2014: redefining IT's value proposition, including developing business relationships necessary to support innovation and adopting metrics to better measure IT value contribution; development of enterprise information architecture and analytics capabilities to help their company support top-line revenue growth; and talent realignment.
On Tuesday, August 5, 2014, 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 5, 2014 and will run through 5:00 P.M. ET on Tuesday, August 19, 2014. To access the rebroadcast, please dial (888) 433-2205. For International callers, please dial (402) 998-1308.
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 5, 2014 and will run through 5:00 P.M. ET on Tuesday, August 19, 2014. 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" 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 email@example.com.