November 7, 2016
MIAMI, FL – November 7, 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 third quarter, which ended on September 30, 2016.
Q3 2016 revenue was $74.1 million, up 10% from prior year. Q3 2016 pro forma diluted earnings per share were $0.25, up 25%, when compared to $0.20 for the same period in 2015. 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 $0.17 for the third quarter of 2016, up 70%, as compared to $0.10 in the third quarter of 2015.
At the end of the third quarter of 2016, the Company's cash balances were $14.4 million. During the third quarter of 2016, the Company utilized cash to repurchase 34 thousand shares of the Company's common stock at an average price per share of $14.76 for a total of approximately $0.5 million. Approximately $4.4 million remained available under the Company's share repurchase program at the end of the quarter. In addition, during the third quarter of 2016, the Company repaid $9.0 million of borrowings on its debt facility.
In its recent meeting, the Company's Board of Directors declared the payment of its second semi-annual dividend of $0.13 per share for shareholders of record on December 22, 2016. This dividend will be paid on January 5, 2017.
"We reported another strong quarter driven by solid US results and improved European activity and results," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "Additionally, we continue to build our new best practices "Intellectual Property as a Service™" offerings and see opportunities to expand existing alliances as well as introduce new offerings."
Based on the current economic outlook, the Company estimates total revenue for the fourth quarter of 2016 to be in the range of $67.0 million to $69.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.23 to $0.25. At the high-end of guidance, EPS would increase 19%, when compared to prior year.
European Best Practices Conference – "Creating Agility in the Digital World" was the theme of the 2016 European Best Practices Conference in London organized by The Hackett Group. Nearly 200 executives attended the event which featured presentations by leaders in finance, EPM, procurement, HR, global business services and working capital management from 15 of the largest and most successful companies in Europe, including: ABB, ADP, BASF, Fujitsu, GlaxoSmithKline, Royal BAM Group, UCB, UPM and Verizon. In addition, The Hackett Group's research leaders hosted presentations focusing on the latest benchmark findings and best practices insights in a wide range of business functional areas.
Working Capital Study Results – REL, a division of The Hackett Group, published new working capital research showing that the largest public companies in the U.S. chose to go even further into debt in 2015 instead of driving cash out of their businesses by improving how they collect from customers, pay suppliers, and manage inventory. Overall working capital performance continued to degrade, reaching poorest performance levels since the 2008 financial crisis. A significant factor in this year's overall results was low oil prices, which caused oil and gas companies to increase reserves, dramatically worsening both their inventory and overall working capital performance, and dragging down the performance of the entire survey group.
World-Class Finance Research – The Hackett Group issued research showing that world-class finance organizations now spend 42% less than typical companies and use 44% fewer staff, while at the same time driving higher levels of effectiveness, agility, and insight. The research finds that digital business transformation is one of five initiatives key to achieving world-class performance. Digital technology is creating new opportunities to transform finance service delivery, and world-class finance organizations focus greater resources in this area. World-class finance organizations also enable analytics-based decision making to generate insights that improve enterprise agility.
On Monday, November 7, 2016, senior management will discuss third quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 779-3138, [Passcode: Third 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 Monday, November 7, 2016 and will run through 5:00 P.M. ET on Monday, November 21, 2016. To access the rebroadcast, please dial (800) 945-7249. For International callers, please dial (402) 220-3565.
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 Monday, November 7, 2016 and will run through 5:00 P.M. ET on Monday, November 21, 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 firstname.lastname@example.org.