May 07, 2019
The Hackett Group Announces First Quarter 2019 Results
- Q1 2019 net revenue from continuing operations of $62.4 million and pro forma EPS of $0.22, both in line with guidance
- Q1 2019 GAAP EPS of $0.22 as compared to GAAP EPS of $0.23 in the same period of the prior year
- Board of Directors declares $0.18 semi-annual dividend, an increase of 6% from prior year
MIAMI, FL – May 7, 2019 – The Hackett Group, Inc. (NASDAQ: HCKT), a global intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices digital transformation firm, today announced its financial results for the first quarter, which ended on March 29, 2019.
Q1 2019 net revenue (gross revenue less reimbursable expenses) from continuing operations was $62.4 million, down 6%, as compared to the same period in the prior year. Q1 2019 gross revenue from continuing operations was $67.2 million, down 6% from the same period in the prior year.
Q1 2019 GAAP diluted earnings per share were $0.22 per share, as compared to $0.23 per share for the same period in the prior year.
Q1 2019 pro forma diluted earnings per share were $0.22 per share, as compared to $0.25 per share for the same period in the prior year. 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.
In its recent meeting, the Company’s Board of Directors declared a semi-annual dividend of $0.18 per share for its shareholders of record on June 28, 2019, to be paid on July 10, 2019. This represents an increase of 6% from the prior year.
At the end of the first quarter of 2019, the Company’s cash balances were $10.7 million. During the first quarter of 2019, the Company repurchased 224 thousand shares of the Company’s common stock at an average price per share of $17.77 for a total of $4.0 million. At the end of the first quarter of 2019, the Company’s remaining stock purchase program authorization was $5.3 million.
“Although the first quarter started out slowly, as the quarter progressed, we experienced the increase in demand and revenues that was more representative with our original plans,” stated Ted A. Fernandez, Chairman and CEO of The Hackett Group. “Given this momentum, we expect a significant improvement in our sequential revenue growth in the second quarter, which bodes well for our prospects for the remainder of the year.”
Based on the current economic outlook, the Company estimates total net revenue for the second quarter of 2019 to be in the range of $67.0 million and $69.0 million or gross revenue (inclusive of reimbursable expenses) to be in the range of $72.5 million and $74.5 million. The Company estimates pro forma diluted earnings per share for the second quarter of 2019 to be in the range of $0.26 and $0.28.
Awards from Forbes & Statista, IAOP, Spend Matters – The Hackett Group received three awards in Q1 2019. Forbes & Statista named The Hackett Group to its list of America’s Best Management Consulting Firms for 2019. The International Association of Outsourcing Professionals (IAOP) included the Company on its 2019 list of the Best of the World’s Best Outsourcing Advisors in both the “Multiple Appearances” and “Fresh Faces” categories. Finally, Spend Matters named The Hackett Group as one of its “50 Providers to Know.”
Finance Key Issues Research – The Hackett Group issued its 2019 Finance Key Issues research, which found that corporate finance organizations are counting on digital transformation to enable them to improve customer focus and enhance strategic value while continuing to reduce costs over the next few years. But significant obstacles must be overcome, the research found, as digital transformation has only just begun to have an impact on finance performance.
Procurement Key Issues – The Hackett Group issued its 2019 Procurement Key Issues research, which found that digital transformation is making it easier for procurement organizations to “do more with less.” But there is still significant need for procurement to address its critical development priorities for 2019, including: improving analytical capabilities, aligning skills and talent with business needs, leveraging supplier relationships, enhancing agility, and achieving true customer-centricity. The Hackett Group also found that procurement organizations are showing a renewed and expanded focus on strategic sourcing and spend management in response to concerns over economic uncertainty, increased competition, and global trade issues.
On Tuesday, May 7, 2019 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) 593-0486, [Passcode: First Quarter]. For International callers, please dial (517) 308-9371.
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 7, 2019 and will run through 5:00 P.M. ET on Tuesday, May 21, 2019. To access the rebroadcast, please dial (800) 879-1876. For International callers, please dial (203) 369-3560. 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 7, 2019 and will run through 5:00 P.M. ET on Tuesday, May 21, 2019. To access the replay, visit www.thehackettgroup.com or http://www.streetevents.com.
Earnings Call Documents
- Consolidated Statements of Operations – Q1 2019
- Supplemental Data discussed during earnings call – Q1 2019
SEC XBRL Filings
- XBRL Calculation – Q1 2019
- XBRL Definition – Q1 2019
- XBRL Label – Q1 2019
- XBRL Presentation – Q1 2019
- XBRL Instance – Q1 2019
- XBRL Schema – Q1 2019
About The Hackett Group, Inc.
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices digital transformation firm to global companies, offering digital transformation including robotic process automation and enterprise cloud application implementation. Services include business transformation, enterprise analytics 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 16,500 benchmarking and performance studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 89% of the Fortune 100, 83% of the DAX 30 and 57% of the FTSE 100. These studies drive Hackett’s Digital Transformation Platform 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, including those referenced above, 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.