February 23, 2016
MIAMI, FL - February 23, 2016 - 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 January 1, 2016.
Fourth quarter 2015 revenue was $66.4 million, up 10%, or 12% in constant currency, from prior year. Pro forma diluted earnings per share were $0.21, up 24% when compared to $0.17 for the same period in 2014. Fiscal year 2015 revenue was $260.9 million, up 10% or 13% in constant currency, from fiscal year 2014 revenue of $236.7 million. Fiscal year pro forma diluted earnings per share were $0.75, up 34%, as compared to $0.56 in fiscal year 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 $0.12 for the fourth quarters of 2015 and 2014. GAAP diluted earnings per share in fiscal 2015 was $0.43, as compared to $0.33 in the previous fiscal year. 2015 GAAP quarterly results were unfavorably impacted by non-recurring, non-cash compensation expense relating to performance based Stock Appreciation Rights, issued in 2012.
In its recent meeting, the Company's Board of Directors authorized an increase in its annual dividend from $0.20 to $0.26, which is to be paid semi-annually. Subsequent to year end, to the Company's Board of Directors also approved to increase the stock repurchase program authorization by an additional $5.0 million.
At the end of the fourth quarter of 2015, the Company's cash balances were $23.5 million. During the quarter, the Company utilized cash to fully pay down the $9.3 million outstanding balance on its debt facility.
"We had another strong quarter and an outstanding year," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "For the year, pro forma EPS improved by 34%, which is more impressive when you consider that it was an organic improvement from 2014, which was up 37%. More importantly, this momentum continues into 2016, along with our recently launched "Intellectual Property as a Service™" alliances that could redefine our business model over the next five years."
Based on the current economic outlook, the Company estimates total revenue for the first quarter of 2016 to be in the range of $66.5 million to $68.5 million, and estimates pro forma diluted earnings per share to be in the range of $0.18 to $0.20.
Beyond People/Process/Technology – In January, The Hackett Group issued a press release discussing its recommendations that to succeed in today's digital world, companies must move beyond their deeply entrenched "people/process/technology" frameworks and adopt a fundamentally different model for business transformation, one that is more in sync with the emerging digitally network reality. This was the main message delivered at a recent technology conference by The Hackett Group Chairman & CEO, Ted A. Fernandez.
World-Class IT Research – The Hackett Group issued new World-Class Performance Advantage research findings showing that as IT organizations shift their focus to improving enterprise agility and driving innovation, top performers are finding new ways to drive value. But typical IT organizations face significant challenges in this area, and The Hackett Group's research recommends organizations to focus on a number of IT strategy areas in order to make the shift towards value-based IT management and improve efficiency and effectiveness.
Oracle Cloud Services Offering – In January, The Hackett Group announced the formation of an Oracle EPM Cloud Practice within its Enterprise Performance Management Practice (EPM). Recognizing Oracle's leadership position in cloud computing and the market's increased demand for EPM solutions in the cloud, The Hackett Group is forming a dedicated cloud practice to support Oracle's growing platform. The Hackett Group is a Platinum member of the Oracle PartnerNetwork.
On Tuesday, February 23, 2016, 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 23, 2016 and will run through 5:00 P.M. ET on Tuesday, March 8, 2016. To access the rebroadcast, please dial (866) 361-4938. For International callers, please dial (203) 369-0186.
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, February 23, 2016 and will run through 5:00 P.M. ET on Tuesday, March 8, 2016. 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 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" 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.