August 9, 2016
MIAMI, FL - August 9, 2016 - 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 on July 1, 2016.
Q2 2016 revenue was $75.6 million, up 14% from prior year. Q2 2016 pro forma diluted earnings per share were $0.24, up 26%, when compared to $0.19 for the same period in 2015. 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 $0.17 for the second quarter of 2016, up 42%, as compared to $0.12 in the second quarter of 2015.
At the end of the second quarter of 2016, the Company's cash balances were $15.6 million. During the second quarter of 2016, the Company borrowed $25.0 million from its amended debt facility which was utilized for the repurchase of 1.8 million shares of the Company's common stock at an average price per share of $14.72 for a total of $25.8 million. Approximately $4.9 million remained available under the Company's share repurchase program at the end of the quarter. During the second quarter of 2016, the Company repaid $3.0 million of the borrowings.
"Our second quarter performance was driven by strong client demand for our digital business transformation and enterprise analytics services," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "Additionally, we continue to build our new best practices "IP as a Service" alliances and see opportunities to add new relationships."
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2016 to be in the range of $72.0 million to $74.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.22 to $0.24. At the high end of guidance, EPS would increase 20%, when compared to prior year.
Forbes Names The Hackett Group Among "America's Best Management Consulting Firms" – The Hackett Group was recognized by Forbes as one of "America's Best Management Consulting Firms" for 2016. The list, which recognizes the top one percent of management consultancies, names The Hackett Group among the largest and most recognizable firms. The Hackett Group made the Forbes list with a three-star ranking in two categories – Automotive and Supply Chain Management.
GBS Advanced Certification – The Chartered Institute of Management Accountants (CIMA) and The Hackett Group announced the launch of the Advanced Diploma in Global Business Services (GBS). This is the second offering in their Certified GBS Professionals (CGBSP) program, a comprehensive career development system for the GBS and Shared Services sector from CIMA and The Hackett Group. The Advanced Diploma in GBS (ADGBS) is designed for current GBS leaders and members of a GBS organization's senior management team. It is also relevant for senior executives who manage or work with GBS organizations, leadership at business process outsourcing companies, and others.
Oracle ERP Cloud Services Practice Launched – The Hackett Group announced an expansion of its existing Enterprise Performance Management/Business Intelligence (EPM/BI) Practice to include a newly-created Oracle ERP Cloud Services Practice. Recognizing the dramatic increase in the use of cloud technology in today's digital business transformation efforts, and Oracle's strategic shift to the cloud, The Hackett Group is extending their intellectual property and best practice implementation model to the Oracle ERP Cloud Services platform. The Hackett Group is a Platinum member of Oracle's PartnerNetwork.
HR Key Issues Research – New HR Key Issues research from The Hackett Group found that technology and analytics are the focus of six out of the top ten planned HR transformation initiatives for 2016. The Hackett Group's research found that HR leaders are increasingly acknowledging that the future effectiveness of their organizations depends on improving their use of technology, including analytics. The benefits of this digital transformation include the ability to: provide data-driven insights that help improve corporate agility; manage talent more effectively; assist managers in evaluating and supporting their employees; and make day-to-day life easier for employees by streamlining administrative tasks.
IT Key Issues Research – The Hackett Group issued new IT Key Issues research findings, showing that demands on the IT organization to support digital business transformation are a significant factor behind the expected growth of IT budgets by 3.3% in 2016, and expected staffing increases of 1.5%. The Hackett Group's research now shows that the majority of companies are recognizing that digital business transformation must be at the core of their business strategy, and that technological advances have the potential to fundamentally transform their business.
On Tuesday, August 9, 2016, 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 9, 2016 and will run through 5:00 P.M. ET on Tuesday, August 23, 2016. To access the rebroadcast, please dial (800) 839-1335. For International callers, please dial (203) 369-3357.
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 9, 2016 and will run through 5:00 P.M. ET on Tuesday, August 23, 2016. To access the replay, visit http://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 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" 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 offerings 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, 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 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.