February 23, 2010
Miami, FL - February 23, 2010 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory firm, today announced its financial results for the fourth quarter and fiscal year, which ended January 1, 2010.
Fourth quarter 2009 revenue was $34.6 million, a 29% decrease from the same period in 2008. Pro forma diluted net loss per share was ($0.02) in the fourth quarter of 2009, as compared to pro forma diluted net earnings per share of $0.10 in the fourth quarter of 2008. Fourth quarter 2009 earnings were unfavorably impacted by approximately $0.04 due to losses recognized on a technology implementation project. 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 net loss per share was ($0.22) in the fourth quarter of 2009, as compared to diluted net earnings per share of $0.14 in the fourth quarter of 2008. GAAP net loss for the fourth quarter of 2009 includes $5.9 million, or $0.15 per dilutive share, for restructuring and other one-time charges, relating to the acquisition of Archstone Consulting which we announced in November 2009.
Fiscal year 2009 revenue was $142.7 million, a decrease of 26% from the previous fiscal year. Pro forma diluted net earnings per share for 2009 was $0.05, as compared to $0.33 in fiscal year 2008. GAAP diluted net loss per share in fiscal 2009 was ($0.18), as compared to net earnings per share of $0.43 in the previous fiscal year. GAAP net loss for 2009 includes acquisition-related restructuring and one-time charges of $5.9 million, non-cash stock compensation expense of $3.0 million, and amortization expense of $1.1 million.
At the end of the fourth quarter of 2009, the Company's cash balances were $16.5 million. During the fourth quarter of 2009, the Company repurchased approximately 1.1 million shares of its common stock at $2.78, for a total cost of $2.9 million. For the fiscal year 2009, the Company repurchased approximately 2.6 million shares at an average price of $2.43, for a total cost of approximately $6.4 million. On February 19, 2010, the Board of Directors authorized an additional $5.0 million increase to the share buyback program, bringing the total remaining authorization to approximately $5.5 million.
"Although 2009 proved to be a very challenging year, we believe the prospects for our business are improving noticeably as we start 2010," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. "Our acquisition of Archstone Consulting has expanded our ability to serve clients across the entire enterprise. We are also pleased that we added this expanded capability with limited dilution as a result of our active stock repurchase activity throughout 2009."
Based on the current economic outlook, the Company estimates total revenue for the first quarter of 2010 to be in the range of $43.0 million to $45.0 million and estimates pro forma diluted earnings per share to be in the range of $0.03 to $0.05.
NRI Alliance - Hackett announced a strategic alliance with the consulting division of the Nomura Research Institute, Ltd (NRI), a $3.5 billion company that is one of Japan's largest consultancies. As part of the alliance, in 2010 the two companies will launch a Hackett benchmarking services offering in Japan, China, Taiwan, South Korea, Philippines, and Indonesia. The relationship provides NRI with exclusive rights to position, sell and execute Hackett benchmark services in Japan, and non-exclusive rights in the other countries. NRI has formed a dedicated Benchmark Solutions sales team to position and sell Hackett benchmarks in these geographies.
Jobless Recovery Research - Hackett's research found that the increase in job losses is being driven by a number of factors, including the lack of economic growth, deep cuts in response to budget pressures, improvements in productivity and automation, and the increased use of offshore labor resources.
Talent Maturity Research - New research from Hackett found that companies with more mature Talent Management capabilities reap stronger bottom-line benefits, including earnings that are 18% higher than typical Global 1000 companies. The study, which examined the performance at more than 60 companies over a three-year period, found that in addition to higher earnings, leaders saw significantly improved net profit margin and greater return on equity and assets.
Learn.com Alliance - Hackett and Learn.com, the leader in on-demand workforce development and productivity, announced a global implementation alliance. Under the terms of the alliance agreement, Hackett will be the preferred provider of global implementation services for the Learn.com's LearnCenter® platform, the world's most popular learning and talent management suite. Hackett will offer full life-cycle implementation services and consulting for global enterprises inside and outside of the United States.
At 5:00 P.M. ET on Tuesday, February 23, 2010 the senior management of The Hackett Group, Inc. will host a conference call to discuss fourth quarter earnings results for the period ending January 1, 2010.
The number for the conference call is (800) 857-9601, [Passcode: Fourth 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, February 23, 2010 and will run through 5:00 P.M. ET on Tuesday, March 9, 2010. To access the rebroadcast, please dial (866) 479-2458. For International callers, please dial (203) 369-1533.
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, February 23, 2010 and will run through 5:00 P.M. ET on Tuesday, March 9, 2010. To access the call, 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. 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 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.