February 21, 2017
MIAMI, FL – February 21, 2017 – 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 fourth quarter and fiscal year, which ended on December 30, 2016.
Fourth quarter 2016 revenue was $70.1 million, up 5.6%, or 6.5% in constant currency, as compared to prior year. Fiscal 2016 revenue was $288.6 million, up 10.6%, or 11.1% in constant currency, as compared to prior year.
GAAP diluted earnings per share in the fourth quarter of 2016 were $0.19, up 58%, when compared to $0.12 for the same period in 2015. Fiscal year 2016 GAAP diluted earnings per share were $0.66, up 53%, when compared to $0.43 for the same period in 2015.
Pro forma diluted earnings per share in the fourth quarter of 2016 were $0.26, up 24%, when compared to $0.21 for the same period in 2015. Fiscal year pro forma diluted earnings per share were $0.94, up 25%, when compared to $0.75 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.
In its meeting, the Company's Board of Directors authorized an increase in its annual dividend from $0.26 to $0.30 per share, which is to be paid semi-annually. At the end of the fourth quarter of 2016, the Company's cash balances were $19.7 million. The outstanding balance of the Company's Credit Facility totaled $7.0 million at the end of the quarter.
"We had another strong quarter and an outstanding year," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "Additionally, today we announced the introduction of our second training and certification program which demonstrates our ability to expand our "IP as a Service" offerings which is providing new ways to leverage our valuable IP, serve our clients strategically and grow our business."
Based on the current economic outlook, the Company estimates total revenue for the first quarter of 2017 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, pro forma EPS would increase 20%, when compared to prior year.
World-Class IT Research – New research from The Hackett Group found that world-class IT organizations are dramatically more effective than their peers at enabling the digital transformation that is at the heart of most business strategies today. The Hackett Group found that this ability plays a key role in how world-class IT organizations enable greater efficiency, agility and improved competitive advantage across the enterprise. At the same time, world-class IT organizations also spend significantly less on IT operations than typical companies.
World-Class HR Research – New research from The Hackett Group found that world-class HR organizations embrace digital transformation and advanced analytics as key levers to drive improved results, including spending 23% less per employee than typical companies, operating with 32% fewer staff and demonstrating improved effectiveness. For a typical company with $10 billion in revenue, attaining world-class performance represents as much as $14 million in savings annually.
World-Class Procurement Research – New research from The Hackett Group found that world-class procurement organizations now have 18% lower operating costs than typical companies, and operate with 28% fewer staff, while generating more than twice the return on investment. Digital business transformation is one key enabler to how world-class procurement organizations achieve greater efficiency, effectiveness and higher ROI, the research found. World-class procurement organizations understand the opportunity that digital technologies present to transform service delivery, reduce errors, and free procurement staff for higher-value work.
Certified GBS Professionals Program Diploma Launched – The Hackett Group and The Chartered Institute of Management Accountants (CIMA) announced the launch of their Diploma in Global Business Services (DGBS). This is the third offering in the companies' Certified GBS Professionals (CGBSP) program, a comprehensive career development system for global business services (GBS), shared services and business process outsourcing (BPO) professionals. The Diploma in GBS, designed for current GBS team leaders, center managers and others running operational or functional teams, covers an array of topics relevant to operational excellence in finance, HR, procurement and IT. It is the middle level of certification offered by the CGBSP program.
On Tuesday, February 21, 2017, senior management will discuss fourth quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 779-3138, [Passcode: Fourth 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, February 21, 2017 and will run through 5:00 P.M. ET on Tuesday, March 7, 2017. To access the rebroadcast, please dial (888) 566-0406. For International callers, please dial (402) 998-0591.
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, February 21, 2017 and will run through 5:00 P.M. ET on Tuesday, March 7, 2017. 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" 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.