Podcast
The Hackett Group Announces Fourth Quarter and Fiscal 2017 Results
- Q4 2017 net revenue of $64.5 million, up 2.5% from prior year, and pro forma EPS of $0.27, up 4% from prior year, both at or above the high end of guidance
- Fiscal 2017 net revenue of $263.3 million, up slightly from prior year, and pro forma EPS of $1.00, up 6% from prior year
- Company announces annual dividend increase of 13% from $0.30 to $0.34 per share, paid semi-annually
MIAMI, FL – February 20, 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 fourth quarter and fiscal year, which ended on December 29, 2017.
Fourth quarter 2017 net revenue (gross revenue less reimbursable expenses) was $64.5 million, up 2.5%, as compared to prior year. Fiscal year 2017 net revenue was $263.3 million, up 1.3%, as compared to prior year. Fourth quarter 2017 gross revenue was $69.4 million, down 0.9%, as compared to prior year. Fiscal year 2017 gross revenue was $285.9 million, down 0.9%, as compared to prior year. The decrease in gross revenue for the fourth quarter and fiscal year 2017 is a result of decreasing pass-through project reimbursable expenses.
GAAP diluted earnings per share in the fourth quarter of 2017 were $0.29, up 53%, when compared to $0.19 for the same period in the prior year. Fiscal year 2017 GAAP diluted earnings per share were $0.85, up 29%, when compared to $0.66 for the same period in 2016. During 2017, the adoption of new accounting pronouncements and new tax legislation favorably impacted income tax expense by a total of $7.8 million.
Pro forma diluted earnings per share in the fourth quarter of 2017 were $0.27, up 4%, when compared to $0.26 for the same period in 2016. Fiscal year pro forma diluted earnings per share were $1.00, up 6%, when compared to $0.94 in 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.
In its recent meeting, the Company’s Board of Directors authorized a 13% increase in its annual dividend from $0.30 to $0.34 per share, to be paid semi-annually. At the end of the fourth quarter of 2017, the Company’s cash balances were $17.5 million. The outstanding balance of the Company’s Credit Facility was $19.0 million at the end of the quarter.
“This was a highly transformative year for our organization,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “We reported solid results while aggressively transitioning our offerings to the rapidly growing cloud and digital transformation opportunities that strongly position us for future growth.”
Based on the current economic outlook, the Company estimates total net revenue for the first quarter of 2018 to be in the range of $66.0 million and $68.0 million or gross revenue (inclusive of reimbursable expenses of 7.5%) to be in the range of $71.0 million and $73.0 million. The Company estimates pro forma diluted earnings for the first quarter of 2018 to be in the range of $0.25 and $0.27. At the high end of guidance, pro forma EPS would increase 17%, when compared to prior year.
Other Highlights
World-Class Finance Research – The Hackett Group released world-class finance research showing that typical finance organizations can substantially narrow the gap between their cost levels and that of top performers, and top performers can become even better by leveraging digital transformation. According to The Hackett Group’s research, typical finance organizations can cut process costs by 35% by adopting digital technologies, nearly matching the level seen today by world-class organizations.
The Hackett Institute Launched – The Hackett Group announced the launch of The Hackett Institute, offering professional education programs informed by The Hackett Group’s unmatched intellectual property derived from its benchmarking data, proprietary research and Best Practices Intelligence Center™. Flagship offerings of the Hackett Institute include programs for Certified GBS Professionals® (CGBSP) and Certified Enterprise Analytics Professionals (CEAP).
RPA Automation Awards – Aecus, a Company of The Hackett Group, announced the winners of the 2017 Aecus Automation Awards, which spotlights companies that are on the cutting edge of digital transformation, including smart automation, robotic process automation, cognitive computing, and advanced analytics. The Aecus Automation Awards winners encompass some of the hottest trends in digital transformation technology, and spotlights the advances being made in this critical area and the strategic business impact that can be generated. In addition, the awards feature companies that demonstrate the ability to deploy more familiar tools — such as offshoring, outsourcing, or redesign — in new ways. This year’s winners came from a range of industry sectors, including banking and financial services, telecoms, consumer goods and utilities.
On Tuesday, February 20, 2018 senior management will discuss fourth quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (844) 358-9115, [Passcode: Fourth 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, February 20, 2018 and will run through 5:00 P.M. ET on Tuesday, March 6, 2018. To access the rebroadcast, please dial (855) 859-2056. For International callers, please dial (404) 537-3406, [Passcode: 6395625].
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, February 20, 2018 and will run through 5:00 P.M. ET on Tuesday, March 6, 2018. To access the replay, visit www.thehackettgroup.com or www.streetevents.com.
Earnings Call Documents
- Consolidated Statements of Operations – Q4 2017
- Supplemental Data discussed during earnings call – Q4 2017
SEC XBRL Filings
- XBRL Calculation – Q4 2017
- XBRL Definition – Q4 2017
- XBRL Instance – Q4 2017
- XBRL Label – Q4 2017
- XBRL Presentation – Q4 2017
- XBRL Schema – Q4 2017
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 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 these 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.
