May 12, 2015
MIAMI, FL - May 12, 2015 - 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 first quarter, which ended April 3, 2015.
First quarter 2015 revenue increased 11%, or 14% in constant currency, to $61.0 million, as compared to $54.9 million for the same period in 2014. Pro forma diluted earnings per share were $0.16 for the first quarter of 2015, an increase of 100%, as compared to $0.08 for the same period in 2014. 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 first quarter of 2015, as compared to $0.01 in the first quarter of 2014.
In its recent meeting, the Company's Board of Directors increased its annual dividend to $0.20 and declared a semi-annual payment for shareholders of record on June 29, 2015 to be paid on July 10, 2015. This represents a 43% increase over the amount previously announced and a 66% increase over the amount paid in 2014.
During the first quarter, the Company utilized cash to repurchase approximately 75 thousand shares of the Company's common stock at an average price of $8.70 per share for a total cost of $653 thousand. As of the end of the first quarter of 2015, the Company's remaining stock repurchase authorization was $3.0 million.
"Our strong 2014 momentum continued into the first quarter, driven by solid U.S. demand and improved European results," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "More importantly, our ability to use our benchmarking and best practice insight to help our business transformation and technology consulting groups differentiate and deliver unique value to our clients is being increasingly recognized by our clients and channel partners."
Based on current economic outlook, the Company estimates total revenue for the second quarter of 2015 to be in the range of $61.0 million to $63.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.16 to $0.18.
North American Best Practices Conference - In late April, The Hackett Group held its 25th North American Best Practices Conference, entitled "Creating World-Class Advantage Through Digital, Analytical, and Operational Agility." This year's conference brought together speakers from eighteen of the world's most respected companies, including CFOs, CIOs, and leaders in procurement, human resources, global business services, and enterprise performance management from: Accenture, AdvancePierre Foods, Becton, Caterpillar, Citigroup, Coupa Software, Catholic Health Initiatives, Cisco Systems, Cytec Industries, Dickinson and Company, Hospira, McKesson, MGM Resorts, NBA, Oracle, Rogers Communications, SAP SE, Verizon, and Vodafone. The sold-out event was attended by over 200 senior-level executives from the world's top brands.
Finance Key Issues - New Key Issues Research from The Hackett Group found that as companies face significant issues related to improving enterprise agility and address continued volatility of business conditions in 2015, corporate finance organizations are challenged in their ability to support this enterprise agility objective by cost pressure and their inability to deliver in two critical areas – business partnering and reporting and analysis.
CIMA Alliance - On April 20, 2015, The Hackett Group and The Chartered Institute of Management Accountants (CIMA), announced a strategic collaboration that will bring to market the first comprehensive talent management and professional development qualification program specifically tailored for Global Business Services (GBS) and shared services professionals. By working together, The Hackett Group and CIMA are seeking to respond to the clear need for GBS and shared services organizations to invest in programs to hire, develop, and retain staff in order to grow the professional skills and knowledge needed to achieve and maintain world-class performance standards.
On Tuesday, May 12, 2015, senior management will discuss first quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 779-3138, [Passcode: First 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, May 12, 2015 and will run through 5:00 P.M. ET on Tuesday, May 26, 2015. To access the rebroadcast, please dial (866) 481-5007. For International callers, please dial (203) 369-1562.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit https://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, May 12, 2015 and will run through 5:00 P.M. ET on Tuesday, May 26, 2015. To access the replay, visit https://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, offering digital transformation including robotic process automation and enterprise cloud application implementation. Services include business transformation, enterprise analytics, 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 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" and involves 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 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 and 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 reports filed with the SEC. 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.