August 10, 2010
Miami, FL - August 10, 2010 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the second quarter, which ended July 2, 2010.
Second quarter 2010 revenue was $53.7 million, a 55% increase from the same period in 2009. Pro forma diluted earnings per share were $0.08 for the second quarter of 2010, as compared to $0.02 for the same period in 2009. 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 the second quarter of 2010, as compared to $0.00 for the same period in 2009.
At the end of the second quarter of 2010, the Company's cash balances were $19.1 million. During the quarter ended July 2, 2010, the Company repurchased 682 thousand shares of its common stock at an average cost of $3.02 per share, for a total cost of approximately $2.1 million. On August 5, 2010 the Board of Directors increased the Company's stock repurchase plan authorization by an additional $5.0 million. As a result, the Company's current remaining authorization is approximately $7.4 million.
"We had an outstanding quarter with improved performance across all service groups," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "We feel that our offerings are well-aligned with the current economic recovery which requires organizations to stay highly focused on market conditions and strong operational execution."
Based on the current economic outlook, the Company estimates total revenue for the third quarter of 2010 to be in the range of $51.5 million to $53.5 million, and estimates pro forma diluted earnings per share to be in the range of $0.07 to $0.09.
REL Working Capital Research – New working capital research was released by REL, a division of The Hackett Group, and CFO Magazine, showing that the impact of the global recession made it dramatically harder for the 1000 largest public companies in the U.S to collect from customers and manage inventory last year. The research, which was featured in a cover story in the June issue of CFO, showed that the largest U.S. companies saw working capital performance deteriorate by over 8% in 2009, the largest decline in more than 5 years. According to REL's research, top performing companies collected from customers 17 days more quickly than typical companies in 2009. They also operated with less than half the inventory on hand, and extended payment terms by an additional 10 days.
Supplier Diversity Research – New research from Hackett found that while world-class procurement organizations continue to outperform their peers in driving supplier diversity spending, most companies still make major errors in how they operate and measure the performance of their supplier diversity efforts. Most rely on overly simplistic measures to evaluate the progress of supplier diversity programs, and never truly assess whether programs are meeting corporate objectives. Most companies also fail to consider whether having a few large suppliers or many smaller suppliers best supports their corporate goals.
SAP Qualifies Answerthink's EzIMC™ solution – Answerthink, a division of The Hackett Group, Inc. (NASDAQ: HCKT) announced that its EzIMC offering for the industrial machinery and components industry is now a qualified SAP Business All-in-One partner solution. Answerthink's EzIMC supports the entire business value chain from design to service, including product life-cycle management, order-to-cash management, supply chain planning and execution, engineer to order, make to order and/or make to stock strategies, procure to pay process, service management and financial management. The package is a completely preconfigured, documented, industry-specific, and ready-to-run version of the SAP ERP application combined with SAP Best Practices offerings and Answerthink's expertise with industrial machinery and components companies.
At 5:00 P.M. ET on Tuesday, August 10, 2010 the senior management of The Hackett Group will host a conference call to discuss second quarter earnings results for the period ending July 2, 2010.
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 10, 2010 and will run through 5:00 P.M. ET on Tuesday, August 24, 2010. To access the rebroadcast, please dial (866) 513-4383. For International callers, please dial (203) 369-1982.
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, August 10, 2010 and will run through 5:00 P.M. ET on Tuesday, August 24, 2010. 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 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.