The Hackett Group Announces Second Quarter 2017 Results

August 8, 2017
5 Min Read
  • Q2 2017 gross revenue of $73.6 million, down 3% from prior year and in line with guidance
  • Q2 2017 net revenue of $67.7 million down 1%, up slightly on a constant currency basis from prior year, and in line with guidance
  • Q2 2017 pro forma EPS of $0.25 per share, up 4% from prior year and at mid-point of guidance, and pro forma EBITDA of $12.2 million, up 3% from prior year
  • Board of Directors announces $5.0 million increase to share repurchase program authorization

MIAMI, FL – August 8, 2017 – 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 second quarter, which ended on June 30, 2017.

Q2 2017 gross revenue was $73.6 million, down 3%, or 2% in constant currency basis, and net revenue (gross revenue less reimbursable expenses) was $67.7 million, down 1% from prior year and up slightly on a constant currency basis. Q2 2017 pro forma diluted earnings per share were $0.25, up 4% when compared to $0.24 for the same period in 2016. 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 $0.15 for the second quarter of 2017, as compared to $0.17 in the second quarter of 2016. During the second quarter of 2017, the Company recorded acquisition related restructuring and acquisition purchase consideration, reflected as compensation expense, which totaled approximately $0.05.

At the end of the second quarter of 2017, the Company’s cash balances were $14.4 million. During the quarter the Company utilized cash to repurchase 528 thousand shares of the Company’s common stock at an average price per share of $15.13 for a total of $8.0 million. As of the end of the second quarter of 2017, the Company’s remaining stock repurchase program authorization was $0.6 million. In its recent meeting, the Company’s Board of Directors approved an additional $5.0 million authorization under the repurchase plan, increasing the total authorization to $132.7 million.

“We reported solid operating results but more importantly, we took aggressive actions to allow us to quickly migrate and align our skills and significantly expand our addressable market in the rapidly developing cloud applications space,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. “We believe our focus in the emerging cloud applications, robotics process automation, enterprise analytics and our ‘Intellectual Property as a Service™’ offerings provides the organization with significant long term growth opportunities.”

Based on the current economic outlook, the Company estimates total gross revenue for the third quarter of 2017 to be in the range of $69.5 million to $71.5 million or net revenue to be in the range of $64.4 million to $66.2 million. The gross revenue outlook includes an estimated 8% for reimbursable expenses. The Company estimates pro forma diluted earnings per share to be in the range of $0.24 to $0.26. At the high end of the guidance, pro forma EPS would increase 4% when compared to prior year.

Other Highlights

The Hackett Group Wins Accolades from Forbes & Spend Matters – For the second year in a row, Forbes and Statista listed The Hackett Group as one of the “Best Management Consulting Firms for 2017”. The Hackett Group was listed for its work in three sectors: automotive, chemical, and supply chain management. In addition, Spend Matters named The Hackett Group as one of its “50 Providers to Know” for the fourth consecutive year.

Aecus Receives Queen’s Award for International Trade – Aecus Ltd, which was acquired by The Hackett Group in April, won the Queen’s Award for International Trade for Outstanding Short Term Growth in overseas sales over the last three years.

HR Key Issues Research – New research from The Hackett Group found that most HR organizations remain behind the curve in addressing issues that are central to achieving the most important enterprise goals, including aligning talent strategies to business needs, dealing with critical talent and skill shortages and implementing organizational change. While some crucial development areas are targeted for major improvement in 2017, others – such as finding solutions to critical skills shortages, retention of key staff and strategy execution – will likely not receive the attention they need, according to the research.

Supplier Diversity Research – The Hackett Group released new research showing that virtually all diversity suppliers meet or exceed expectations, and top corporate performers in supplier diversity experience no loss in efficiency. In addition, they see improved quality and often extract other benefits, including increased market share and access to new revenue opportunities. The research challenges the attitude of many business leaders, who worry that dedicating resources to supplier diversity will divert attention from other strategic activities.

On Tuesday, August 8, 2017, senior management will discuss second quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (844) 358-9115, [Passcode: Second Quarter]. For International callers, please dial (209) 905-5950.

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, August 8, 2017 and will run through 5:00 P.M. ET on Tuesday, August 22, 2017. To access the rebroadcast, please dial (855) 859-2056. For International callers, please dial (404) 537-3406, [Passcode: 52261313].

In addition, The Hackett Group will also be webcasting this conference call live through the service. To participate, simply visit 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, August 8, 2017 and will run through 5:00 P.M. ET on Tuesday, August 22, 2017. To access the replay, visit or


Earnings Call Documents


SEC XBRL Filings


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, 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 17,850 benchmarking studies studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 90% of the Fortune 100, 80% of the DAX 30 and 57% 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, including the Jibe Consulting and Aecus Limited acquisitions referenced above, 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.