November 10, 2015
MIAMI, FL - November 10, 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 third quarter, which ended on October 2, 2015.
Third quarter 2015 revenue increased 11%, or 13% in constant currency, to $67.2 million, as compared to $60.4 million for the same period in 2014. Pro forma diluted earnings per share were $0.20 for the third quarter of 2015, an increase of 25%, 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 $0.10 for both the third quarter of 2015 and 2014. GAAP results for the third quarter were unfavorably impacted by a $1.3 million accrual for performance based stock appreciation rights issued in fiscal 2012, which are now expected to be earned, as well as a higher effective tax rate when compared to the prior year.
In its recent meeting, the Company's Board of Directors declared the payment of its second semi-annual dividend of $0.10 per share for holders of record on December 28, 2015. This dividend will be paid on January 8, 2016.
"This was another strong quarter driven by solid U.S. demand across nearly all of our practices," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "More importantly, the demand continues into the fourth quarter and, when coupled with the new strategic alliances that we recently launched, bodes well for our prospects."
Based on current economic outlook, the Company estimates total revenue for the fourth quarter of 2015 to be in the range of $63.0 million to $65.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.19 to $0.21.
European Best Practices Conference – The Hackett Group held its annual European Best Practices Conference in London on October 7th and 8th. The event, "Creating World-Class Advantage Through Digital, Analytical and Operational Agility," was attended by more than 150 executives. It featured presentations by senior leaders from more than 16 companies, including: Altana AG, Becton, Dickinson and Co., BP Group, The Coca-Cola Company, Cofely UK, General Electric Co, GlaxoSmithKline plc, Henkel, Lexmark International, Linde AG, Michelin, Novo Nordisk, Sanofi, SAP AG, Tetra Pak Group, and WNS Global Services.
World-Class Procurement Research – New research from The Hackett Group found that world-class procurement organizations now deliver services at 17% less cost than typical companies while offering improved effectiveness, largely by becoming more customer-centric. A key differentiator is the superior ability of world-class procurement organizations to gain a deep understanding of the needs of their business, react more quickly to changing requirements, and drive higher overall value and greater stakeholder satisfaction, the research found.
World-Class Finance – New research from The Hackett Group found that world-class finance organizations are far more responsive to business needs than their peers, driving greater value and agility while also spending more than 40% less and running with about half the staff. Overall, finance organizations continue to focus on redeploying resources away from transactional work towards higher-value activities to support innovation, growth, and greater agility, the research found. According to The Hackett Group's research, world-class finance organizations are relying on three strategies to achieve operational excellence, drive higher value and improve agility: strengthening the foundations to enable agile service delivery; unleashing enterprise performance management (EPM) decision-making excellence; and building an adaptive finance organization.
World-Class HR – New research from The Hackett Group found that world-class HR organizations now spend 37% less than their peers and operate with 31% fewer staff, while delivering improved effectiveness and greater agility. The research also identified an array of HR capabilities that drive performance leadership, including: strategic workforce planning; technology/automation strategy; unified streamlined processes and systems; and performance measurement and analysis.
On Tuesday, November 10, 2015, senior management will discuss third quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 779-3138, [Passcode: Third 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, November 10, 2015 and will run through 5:00 P.M. ET on Tuesday, November 24, 2015. To access the rebroadcast, please dial (888) 566-0509. For International callers, please dial (203) 369-3613.
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, November 10, 2015 and will run through 5:00 P.M. ET on Tuesday, November 24, 2015. 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 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 email@example.com.