August 11, 2015
MIAMI, FL - August 11, 2015 - The Hackett Group, Inc. (NASDAQ: HCKT), a global intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm, today announced its financial results for the second quarter, which ended July 3, 2015.
Second quarter 2015 revenue increased 9%, or 11% in constant currency, to $66.4 million, as compared to $61.1 million for the same period in 2014. Pro forma diluted earnings per share were $0.19 for the second quarter of 2015, an increase of 19%, as compared to $0.16 for the same period in 2014. 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 2015, an increase of 33%, as compared to $0.09 in the second quarter of 2014.
On July 10, 2015, the Company paid its first semi-annual dividend of $0.10 per share, totaling $3.1 million, to its shareholders of record on June 29, 2015. Additionally, the Company utilized cash to repurchase approximately 74 thousand shares of the Company's common stock at an average price of $9.51 per share for a total cost of $703 thousand. As of the end of the second quarter of 2015, the Company's remaining stock repurchase authorization was $2.3 million.
"This was another strong quarter, driven by very strong U.S. demand across virtually all of our practices," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "More importantly, this momentum is continuing into the second half of the year and when coupled with the exciting and recently announced IP-based alliances, we continue to redefine the growth opportunities available to our organization." Based on current economic outlook, the Company estimates total revenue for the third quarter of 2015 to be in the range of $63.5 million to $65.5 million, and estimates pro forma diluted earnings per share to be in the range of $0.17 to $0.19.
ADP Alliance – In August, The Hackett Group announced an agreement with ADP that will add a dedicated Hackett best practices advisory program to ADP's Vantage HCM® solution. ADP Vantage HCM is a cloud-based human capital management (HCM) solution that helps organizations find, develop and retain great people. It is an integrated platform that addresses the strategic needs of HR, as well as the compliance and risk mitigation aspects of talent, benefits, payroll, and time and labor management. By augmenting ADP's Vantage HCM with industry best practices from The Hackett Group, clients will enhance their ability to achieve business outcomes by better aligning their HR services with their business strategy. ADP Vantage HCM clients now have access to: Vantage-specific best practice configuration guides and process flows; HR performance metrics and best-practice HCM research; and HCM subject matter experts.
Oracle HPE Partnership – The Hackett Group announced plans to team up with Oracle to offer its new cloud-based Hackett Performance Exchange ("HPE') leveraging Oracle's Business Intelligence Cloud Service ("BICS") Platform. The pairing creates a comprehensive performance analytics offering in the cloud, combining a business intelligence platform and comparative performance metrics with peer group and world class data.
CIMA Alliance – On April 20, 2015, The Hackett Group and The Chartered Institute of Management Accountants (CIMA), announced a strategic collaboration that will bring to market the first comprehensive talent management and professional development qualification program specifically tailored for Global Business Services (GBS) and shared services professionals. By working together, The Hackett Group and CIMA are seeking to respond to the clear need for GBS and shared services organizations to invest in programs to hire, develop, and retain staff in order to grow the professional skills and knowledge needed to achieve and maintain world-class performance standards.
Answerthink SAP Award – Answerthink, a division of The Hackett Group, announced that it had received a 2015 SAP® Pinnacle Award as a Valued-Added Reseller of theYear, in recognition of its outstanding contributions as an SAP partner. SAP presents these awards annually to top partners that have excelled in developing and growing their partnership with SAP and helping customers run better.
Technolab – The Company also announced today the finalization of employment inducement restricted stock awards pursuant to NASDAQ Rule 4350(i)(1)(A) covering approximately 293,000 shares granted to five employees that joined the Company in connection with the acquisition of Technolab International Corporation in February of 2014. The shares contain restrictions on transfer and are subject to forfeiture depending on the nature of the recipient's termination of employment. The shares will vest over a five year period.
On Tuesday, August 11, 2015, 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 11, 2015 and will run through 5:00 P.M. ET on Tuesday, August 25, 2015. To access the rebroadcast, please dial (800) 677-0672. For International callers, please dial (203) 369-3130.
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, August 11, 2015 and will run through 5:00 P.M. ET on Tuesday, August 25, 2015. 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" 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.