November 05, 2019
The Hackett Group Announces Third Quarter 2019 Results
- Q3 2019 net revenue of $66.8 million and pro forma EPS of $0.27, both in line with guidance
- Q3 2019 GAAP EPS of $0.21 as compared to GAAP EPS of $0.16 in the same period of the prior year
- The Board of Directors declared $0.18 per share semi-annual dividend, to be paid on January 7, 2020
MIAMI, FL – November 5, 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 third quarter, which ended on September 27, 2019.
Q3 2019 net revenue (gross revenue less reimbursable expenses) from continuing operations was $66.8 million, down 2%, as compared to the same period in the prior year. Q3 2019 gross revenue from continuing operations was $72.7 million, down 1% from the same period in the prior year.
Q3 2019 pro forma diluted earnings per share were $0.27 per share, as compared to $0.28 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.
Q3 2019 GAAP diluted earnings per share were $0.21 per share, as compared to $0.16 per share for the same period in the prior year. During the third quarter of 2018, the Company recorded a $0.8 million, or $0.02 per diluted share, expense due to the remeasurement of an acquisition-related earnout liability, and a $0.5 million, or $0.02 per diluted share, loss from discontinued operations.
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 December 20, 2019, to be paid on January 7, 2020.
At the end of the third quarter of 2019, the Company’s cash balances were $16.4 million. During the quarter, the Company utilized cash to pay down outstanding debt of $2.0 million. During the third quarter of 2019, the Company did not repurchase shares under its stock repurchase program. At the end of the third quarter of 2019, the Company’s remaining stock repurchase program authorization was $3.9 million.
“Solid U.S. performance driven by digital transformation and implementation of cloud software initiatives was tempered by weaker than expected European results,” stated Ted A. Fernandez, Chairman and CEO of The Hackett Group. “We believe that we are taking the necessary actions to mitigate the impact of the volatility in Europe on our 2020 results.”
Based on the current economic outlook, the Company estimates total net revenue for the fourth quarter of 2019 to be in the range of $61.5 million and $63.5 million or gross revenue (inclusive of reimbursable expenses) to be in the range of $66.5 million and $68.5 million. The Company estimates pro forma diluted earnings per share for the fourth quarter of 2019 to be in the range of $0.23 and $0.25.
World-Class Procurement Research – New world-class procurement research from The Hackett Group found that through full deployment of digital tools, typical procurement organizations can reduce operational costs by up to 45%, achieving efficiency levels below those of today’s world-class procurement organizations while at the same time enabling them to improve effectiveness and customer experience.
World-Class Finance Research – New world-class finance research from The Hackett Group found that by fully embracing digital transformation typical finance organizations can reduce costs by more than 40%, rapidly accelerating their progress towards previously unattainable world-class efficiency levels.
World-Class HR Research – New world-class HR research from The Hackett Group found that typical HR organizations can reduce costs by 17% and operate with 26% fewer staff hours – while also improving effectiveness and customer experience – by adopting smart automation approaches, including robotic process automation and smart data capture.
OpenWorld DTP Adoption – The Hackett Group announced that it has reached mainstream adoption of its Oracle Digital Transformation Platform (DTP), with more than 100 successful DTP solution applications deployed at clients since its formal release in October of 2018.
On Tuesday, November 5, 2019 senior management will discuss third quarter results in a conference call at 5:00 P.M. ET. (800) 593-0486, [Passcode: Third 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, November 5, 2019 and will run through 5:00 P.M. ET on Tuesday, November 19, 2019. To access the rebroadcast, please dial (800) 839-0130. For International callers, please dial (402) 998-1223.
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, November 5, 2019 and will run through 5:00 P.M. ET on Tuesday, November 19, 2019. To access the replay, visit www.thehackettgroup.com or http://www.streetevents.com.
Earnings Call Documents
- Consolidated Statements of Operations – Q3 2019
- Supplemental Data discussed during earnings call – Q3 2019
- Net Revenue SBT EEA International YTD Sept 2019 and 2018
SEC XBRL Filings – Q3 2019
- XBRL Calculation – Q3 2019
- XBRL Definition – Q3 2019
- XBRL Label – Q3 2019
- XBRL Presentation – Q3 2019
- XBRL Instance – Q3 2019
- XBRL Schema – Q3 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, the impact of Brexit on our business, changes in general economic conditions and interest rates, our ability to mitigate the impact of the recent decline in our European operations, 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.