|By Business Wire||
|November 5, 2012 04:12 PM EST||
The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the third quarter of 2012, which ended September 28, 2012.
Third quarter 2012 revenue was $58.6 million, a 1% increase (3% on a constant currency basis) from the same period in 2011. Pro forma diluted earnings per share were $0.11 for the third quarter of 2012, as compared to $0.09 for the same period in 2011. 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 $0.08 for the third quarter of 2012, as compared to $0.10 from the same period in 2011. For comparison purposes, GAAP earnings per share for the third quarter of 2012 were unfavorably impacted by U.S. federal income tax expense of approximately $0.05 per diluted share, resulting from the release of tax valuation reserves and recognition of the corresponding deferred tax assets at the end of 2011.
“We reported solid operating results in spite of the volatility we experienced in Europe as we entered the quarter,” stated Ted A. Fernandez, Chairman and CEO of The Hackett Group. “We continue to believe our offerings are well aligned with the complexities of the global economy and provide us with opportunities to continue to improve our financial performance.”
At the end of the third quarter of 2012, the Company’s cash balances were $15.2 million. During the third quarter of 2012, the Company repaid $4.0 million of its new credit facility, leaving a $28.0 million balance at quarter end. Subsequent to quarter end, the Company repaid an additional $3.0 million.
Based on the current economic outlook, the Company estimates total revenue for the fourth quarter of 2012 to be in the range of $54.0 million to $56.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.09 to $0.11.
European Best Practices Conference - Over 125 executives from Europe's largest companies attended The Hackett Group's 2012 European Best Practices Conference in London in early October. Attendees heard presentations by executives from more than a dozen of the world's most successful companies, including Bayer, BSkyB, First Data, Henkel, Lafarge, Nedbank, Rio Tinto, Royal FrieslandCampina, and Vodafone.
REL 1000 Working Capital Research Results - The ability of the largest U.S. companies to collect from customers and manage inventory improved just slightly in 2011, while payables performance worsened, according to the 14th annual working capital survey from REL, a division of The Hackett Group, and CFO Magazine. Overall, working capital performance improved slightly for 1000 of the largest U.S. public companies in the REL/CFO analysis. The study found a tremendous improvement opportunity in working capital management. Companies in the study now have over $900 billion in excess working capital, a figure that represents nearly 7% of the U.S. Gross Domestic Product and is the largest opportunity in this area in the past five years.
Economic Uncertainty Research - In the face of increasing business volatility and shrinking GDP growth projections, The Hackett Group issued research detailing six operational imperatives designed to help companies combat economic uncertainty by enhancing the efficiency and effectiveness of their operations, including the finance, human resource, information technology, procurement, and supply chain areas. According to The Hackett Group's research, by focusing on six imperatives and making significant process improvements and other changes to various elements of their Service Delivery Model for back-office services, a typical global company (with $33.4 billion in revenue) could cut the cost of these services by up to $302 million, or more than 25%. At the same time, companies can improve the quality and timeliness of performance information and decision-making processes, and also enhance business agility and responsiveness.
Talent Management Book of Numbers™ Findings - New Book of Numbers research from The Hackett Group found that finance, information technology, procurement, and other business service areas are in the midst of a growing talent crisis, and the failure of human resource and business service leaders to effectively collaborate is in large part to blame. According to the research, business service organizations are seeing dangerous deficits in talent and skills, and are highly dissatisfied with the level of support they receive from human resources on talent issues. This dissatisfaction is primarily being driven by the extremely low levels of service that human resources is providing, and lack of effective communication and collaboration between business service leaders and human resources.
On Monday, November 5, 2012,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 5, 2012 and will run through 5:00 P.M. ET on Monday, November 19, 2012. To access the rebroadcast, please dial (800) 551-8152. For International callers, please dial (203) 369-3810.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit http://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 5, 2012 and will run through 5:00 P.M. ET on Monday, November 19, 2012. To access the replay, visit http://www.thehackettgroup.com or http://www.streetevents.com.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic business advisory and operations improvement consulting firm, is a leader in best practice advisory, benchmarking, and transformation consulting services including strategy and operations, working capital management, shared services and globalization advice. Utilizing best practices and implementation insights from more than 7,000 benchmarking engagements, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives to enable world-class performance. Through its REL group, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Archstone Consulting group, The Hackett Group offers Strategy & Operations consulting services in the Consumer and Industrial Products, Pharmaceutical, Manufacturing and Financial Services industry sectors. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has completed benchmark studies with over 3,000 major corporations and government agencies, including 97% of the Dow Jones Industrials, 86% of the Fortune 100, 90% of the DAX 30 and 48% of the FTSE 100.
More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at [email protected].
SAP and all SAP logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries.
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 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.
|The Hackett Group, Inc.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share data)|
|Quarter Ended||Nine Months Ended|
|Revenue before reimbursements||$||52,299||$||51,574||$||158,131||$||150,913|
|Costs and expenses:|
|Cost of service:|
|Personnel costs before reimbursable expenses|
|(includes $687 and $765 and $2,209 and $2,329 of stock compensation expense in the quarters and nine months ended September 28, 2012 and September 30, 2011, respectively)||33,414||32,739||101,192||95,814|
|Total cost of service||39,736||39,100||119,984||114,507|
|Selling, general and administrative costs|
|(includes $674 and $509 and $1,860 and $1,172 of stock compensation expense in the quarters and nine months ended September 28, 2012 and September 30, 2011, respectively)||14,623||14,324||44,528||42,599|
|Total costs and operating expenses||54,040||53,424||164,193||157,106|
|Income from operations||4,581||4,511||12,730||12,500|
|Other income (expense), net:|
|Income before income taxes||4,387||4,522||12,279||12,524|
|Basic net income per common share:|
|Net income per common share||$||0.09||$||0.11||$||0.31||$||0.30|
|Weighted average common shares outstanding||29,401||39,683||32,405||40,035|
|Diluted net income per common share:|
|Net income per common share||$||0.08||$||0.10||$||0.29||$||0.29|
|Weighted average common and common equivalent shares outstanding||31,489||41,873||34,312||41,969|
|Pro forma data (1):|
|Income before income taxes||$||4,387||$||4,522||$||12,279||$||12,524|
|Stock compensation expense||1,361||1,274||4,069||3,501|
|Amortization of intangible assets||137||204||410||608|
|Pro forma income before income taxes||5,566||6,000||16,439||16,633|
|Pro forma income tax expense||2,226||2,400||6,576||6,653|
|Pro forma net income||$||3,340||$||3,600||$||9,863||$||9,980|
|Pro forma basic net income per common share||$||0.11||$||0.09||$||0.30||$||0.25|
|Weighted average common shares outstanding||29,401||39,683||32,405||40,035|
|Pro forma diluted net income per common share||$||0.11||$||0.09||$||0.29||$||0.24|
|Weighted average common and common equivalent shares outstanding||31,489||41,873||34,312||41,969|
The Company provides pro forma earnings results (which exclude the amortization of intangible assets, stock compensation expense and restructuring benefit, and include a normalized tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the overall users' understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of ongoing operations and to provide a more consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. In addition, since the Company has historically reported non-GAAP results to the investment community, it believes the continued inclusion of non-GAAP results provides consistency in its financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.
|The Hackett Group, Inc.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|September 28, 2012||December 30, 2011|
|Cash and cash equivalents||$||14,534||$||32,936|
|Accounts receivable and unbilled revenue, net||36,482||35,209|
|Deferred tax asset, net||5,026||6,975|
|Prepaid expenses and other current assets||2,426||2,344|
|Total current assets||58,468||77,464|
|Property and equipment, net||12,666||11,696|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued expenses and other liabilities||25,359||28,018|
|Current portion of long-term debt||4,316||-|
|Total current liabilities||34,829||35,451|
|Long-term deferred tax liability, net||1,432||1,727|
|Total liabilities and shareholders' equity||$||149,824||$||167,426|
|The Hackett Group, Inc.|
|SUPPLEMENTAL FINANCIAL DATA|
|September 28, 2012||June 29, 2012||September 30, 2011|
|Revenue Breakdown by Group:|
|The Hackett Group (2)||$||45,429||$||50,104||$||46,972|
|ERP Solutions (3)||13,192||11,180||10,963|
|(% of total revenue)|
|Top 5 customers||11||%||14||%||14||%|
|Top 10 customers||20||%||23||%||24||%|
|Key Metrics and Other Financial Data:|
|Days sales outstanding (DSO)||57||55||60|
|Cash provided by operating activities (in thousands)||$||4,857||$||10,109||$||1,734|
|Depreciation (in thousands)||$||492||$||491||$||497|
|Amortization (in thousands)||$||136||$||137||$||204|
|The Hackett Group (in thousands):|
|The Hackett Group annualized revenue per professional (2)||$||338||$||379||$||366|
|ERP Solutions consultant utilization rate (3)||76||%||73||%||74||%|
|ERP Solutions gross billing rate per hour (3)||$||146||$||140||$||134|
|Share Repurchase Plan (4):|
|Shares purchased in the quarter (in thousands)||-||-||269|
|Cost of shares repurchased in the quarter (in thousands)||$||-||$||-||$||967|
|Average price per share of shares purchased in the quarter||$||-||$||-||$||3.59|
|Remaining authorization (in thousands)||$||556||$||556||$||2,503|
The Hackett Group encompasses Benchmarking, Business Transformation and Executive Advisory groups, and includes EPM Technologies.
|ERP Solutions encompasses Best Practice Implementation of ERP Software, which includes Oracle and SAP.|
The Share Repurchase Plan information does not include 11.0 million shares purchased pursuant to the Dutch Tender Offer at $5.00 per share for a total of $55.0 million, excluding fees, during Q1 2012.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 30, 2016 05:15 AM EDT Reads: 2,708
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 30, 2016 04:00 AM EDT Reads: 2,126
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 30, 2016 03:00 AM EDT Reads: 1,646
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 30, 2016 02:45 AM EDT Reads: 1,490
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Jul. 30, 2016 02:15 AM EDT Reads: 1,189
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 30, 2016 02:00 AM EDT Reads: 1,690
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jul. 29, 2016 10:15 PM EDT Reads: 2,080
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 29, 2016 08:00 PM EDT Reads: 2,750
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 29, 2016 07:45 PM EDT Reads: 1,205
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 29, 2016 06:00 PM EDT Reads: 945
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 29, 2016 05:15 PM EDT Reads: 409
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 29, 2016 04:45 PM EDT Reads: 1,270
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 29, 2016 04:15 PM EDT Reads: 1,097
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Jul. 29, 2016 04:15 PM EDT Reads: 472
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 29, 2016 03:15 PM EDT Reads: 719
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Jul. 29, 2016 03:00 PM EDT Reads: 561
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 29, 2016 02:00 PM EDT Reads: 1,217
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 29, 2016 01:00 PM EDT Reads: 2,140
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 29, 2016 11:15 AM EDT Reads: 702
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 29, 2016 11:15 AM EDT Reads: 1,359