August 11, 2009
Miami, FL - August 11, 2009 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory firm, today announced its financial results for the second quarter, which ended July 3, 2009.
Second quarter 2009 revenue was $34.6 million, a 29% decrease (a 27% decrease, adjusting for constant currency) from the same period in 2008. Pro forma diluted earnings per share were $0.02 for the second quarter of 2009, as compared to $0.08 in the same period in 2008. 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 $0.00 for the second quarter of 2009, as compared to $0.10 in the same period in 2008.
At the end of the second quarter of 2009, the Company's cash balances were $24.2 million, including marketable investments and restricted cash. During the second quarter of 2009, the Company repurchased approximately 163 thousand shares of its common stock at $2.12 per share, for a total cost of $346 thousand. As of the end of the second quarter, approximately $4.5 million remained available under the Company's share repurchase program.
"Our second quarter results reflect the impact from the volatile economic environment which our clients are experiencing across the U.S. and International markets that we serve," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "However, as our Q3 guidance indicates, we now expect revenues to stabilize as a result of improved client activity which should allow us to improve our profitability during the balance of the year."
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2009 to be in the range of $34.0 million to $36.0 million and estimates pro forma diluted earnings per share to be in the range of $0.02 to $0.04.
Fifth Annual European Best Practices Conference - Hackett announced plans for its Fifth Annual European Best Practices Conference in London October 15-16. The conference, entitled "Survival of the Fittest: How World-Class Companies Weather a Recession and Position for Recovery and Growth," will feature presentations by executives from more than a dozen leading European companies, including: Rio Tinto, Rolls Royce, Shell International, Novartis, BASF, and Bombardier.
Global Business Services Research - Hackett released research detailing how companies are accelerating their evolution beyond shared services to manage their finance, IT, HR, and procurement operations under a new Global Business Services model. A Global Business Services approach breaks down functional boundaries within the back office, and nearly 45% of all companies in the Hackett study now incorporate three or more functions in their shared services operations, with some incorporating as many as five.
2009 Working Capital Analysis - REL's 11th Annual Working Capital research, a joint effort of REL and CFO Magazine, found that the recession has made it dramatically harder for U.S. companies to collect from customers and manage inventory, leaving many with dangerously low levels of cash on hand. The research, which examined 2008 working capital performance by the 1000 largest public companies in the U.S., showed that strong working capital performance in the first three quarters of 2008 masked a 15.6% increase in working capital in Q4 2008 (compared to Q4 2007), one of the sharpest declines in performance since REL began its research.
G&A Service Delivery Strategy Research - Hackett issued research examining how the current economic climate is forcing companies to fundamentally redefine their G&A Service Delivery Strategy to support new operating models, business strategies, and more effectively realize economies of scale, scope, and skills. Hackett's research details potential cost reductions of up to $234.0 million for a typical Global 1000 company with average annual revenue of $26.4 billion, and describes how companies are adapting their G&A strategies to successfully reconcile two seemingly conflicting demands: establish a model that is both agile and flexible, and achieve industry-leading cost, quality and cycle time performance levels.
IT Outsourcing Research - Hackett issued research showing that world-class IT organizations outsource a substantially larger portion of their IT processes than peer group companies, including close to half of all their technology infrastructure-related processes. According to Hackett's research, companies with world-class IT organizations outsource 47% more of their technology infrastructure and 48% more of their application management than typical companies.
At 5:00 P.M. ET on Tuesday, August 11, 2009 the senior management of The Hackett Group, Inc. will host a conference call to discuss second quarter earnings results for the period ending July 3, 2009.
The number for the conference call is (800) 857-9601, [Passcode: Second Quarter, Leader: Ted A. Fernandez]. For International callers, please dial (210) 234-8000.
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, 2009 and will run through 5:00 P.M. ET on Tuesday, August 25, 2009. To access the rebroadcast, please dial (888) 568-0132. For International callers, please dial (203) 369-3898.
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 11, 2009 and will run through 5:00 P.M. ET on Tuesday, August 25, 2009. To access the call, visit http://www.thehackettgroup.com or http://www.streetevents.com.
The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory firm, is a leader in best practice advisory, benchmarking, and transformation consulting services, including shared services, offshoring and outsourcing advice. Utilizing best practices and implementation insights from more than 4,000 benchmarking engagements, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives to enable world-class performance. Through its REL brand, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has worked with 2,700 major corporations and government agencies, including 97% of the Dow Jones Industrials, 73% of the Fortune 100, 73% of the DAX 30 and 50% of the FTSE 100.
Founded in 1991, The Hackett Group was acquired by Answerthink, Inc. in 1997. Answerthink was renamed The Hackett Group, Inc. in 2008. The Hackett Group has global offices in the United States, Europe and Asia/Pacific.
More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at firstname.lastname@example.org.
Book of Numbers is a trademark of The Hackett Group.
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 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 information technology industry, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates 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.