The Hackett Group Announces Second Quarter 2024 Results
The Hackett Group (NASDAQ: HCKT) announced its Q2 2024 financial results.
Total revenue was $77.7 million, exceeding guidance, and adjusted revenue before reimbursements was $75.9 million, up from $75.6 million last year. GAAP diluted EPS was $0.31, slightly down from $0.32 in Q2 2023, while adjusted EPS remained steady at $0.39.
Operating cash flow increased significantly to $13.7 million from $7.7 million in Q2 2023. The company holds cash balances of $19.1 million against $27.0 million in outstanding credit.
The Board declared a Q3 2024 dividend of $0.11 per share. Guidance for Q3 2024 estimates total revenue between $74.5-$76.0 million and adjusted EPS between $0.39-$0.41.
CEO Ted A. Fernandez highlighted the company's efforts to enhance AI XPLR capabilities. Version 2 of AI XPLR will include significant use case simulations and design functionality, set to release this month.
The Hackett Group (NASDAQ: HCKT) ha annunciato i risultati finanziari del secondo trimestre del 2024.
Il fatturato totale è stato di 77,7 milioni di dollari, superando le previsioni, e il fatturato rettificato prima dei rimborsi è stato di 75,9 milioni di dollari, in aumento rispetto ai 75,6 milioni di dollari dello scorso anno. L'utile per azione diluito secondo i principi contabili GAAP è stato di 0,31 dollari, in leggera diminuzione rispetto a 0,32 dollari nel secondo trimestre del 2023, mentre l'utile per azione rettificato è rimasto stabile a 0,39 dollari.
Il flusso di cassa operativo è aumentato significativamente a 13,7 milioni di dollari rispetto ai 7,7 milioni di dollari del secondo trimestre del 2023. L'azienda detiene saldi di cassa di 19,1 milioni di dollari a fronte di 27,0 milioni di dollari di credito in sospeso.
Il Consiglio di Amministrazione ha dichiarato un dividendo per il terzo trimestre del 2024 di 0,11 dollari per azione. Le previsioni per il terzo trimestre del 2024 stimano un fatturato totale compreso tra 74,5 e 76,0 milioni di dollari e un utile per azione rettificato compreso tra 0,39 e 0,41 dollari.
Il CEO Ted A. Fernandez ha evidenziato gli sforzi dell'azienda per migliorare le capacità di AI XPLR. La versione 2 di AI XPLR includerà simulazioni di casi d'uso significativi e funzionalità di design, prevista per il rilascio questo mese.
The Hackett Group (NASDAQ: HCKT) anunció sus resultados financieros para el segundo trimestre de 2024.
Totalizó ingresos de 77,7 millones de dólares, superando las expectativas, y los ingresos ajustados antes de reembolsos fueron de 75,9 millones de dólares, un incremento respecto a los 75,6 millones del año pasado. La ganancia por acción diluida conforme a los principios contables generalmente aceptados (GAAP) fue de 0,31 dólares, ligeramente por debajo de 0,32 dólares en el segundo trimestre de 2023, mientras que la EPS ajustada se mantuvo estable en 0,39 dólares.
El flujo de caja operativo aumentó significativamente a 13,7 millones de dólares desde 7,7 millones en el segundo trimestre de 2023. La compañía tiene saldos de efectivo de 19,1 millones de dólares frente a 27,0 millones de dólares en crédito pendiente.
La Junta declaró un dividendo de 0,11 dólares por acción para el tercer trimestre de 2024. Las proyecciones para el tercer trimestre de 2024 estiman ingresos totales entre 74,5 y 76,0 millones de dólares y una EPS ajustada entre 0,39 y 0,41 dólares.
El CEO Ted A. Fernandez destacó los esfuerzos de la empresa para mejorar las capacidades de AI XPLR. La versión 2 de AI XPLR incluirá simulaciones de casos de uso significativos y funcionalidad de diseño, con lanzamiento previsto para este mes.
The Hackett Group (NASDAQ: HCKT)는 2024년 2분기 재무 결과를 발표했습니다.
총 수익은 7770만 달러로, 예상을 초과하였으며, 환급 전 조정 수익은 7590만 달러로 작년 7560만 달러에서 증가했습니다. GAAP 기준 희석 주당 순익(EPS)은 0.31달러로, 2023년 2분기 0.32달러에서 약간 감소했으며, 조정 EPS는 0.39달러로 안정세를 유지하고 있습니다.
운영 현금 흐름은 2023년 2분기 770만 달러에서 1370만 달러로 크게 증가했습니다. 회사는 2700만 달러의 미지급 신용과 대비하여 1910만 달러의 현금 잔고를 보유하고 있습니다.
이사회는 2024년 3분기 주당 0.11달러의 배당금을 선언했습니다. 2024년 3분기에 대한 전망은 총 수익이 7450만 달러에서 7600만 달러 사이일 것으로, 조정 EPS는 0.39에서 0.41달러 사이로 예상됩니다.
CEO 테드 A. 페르난데스는 AI XPLR 기능 강화에 대한 회사의 노력을 강조했습니다. AI XPLR의 버전 2는 중요한 사용 사례 시뮬레이션과 디자인 기능을 포함할 예정이며, 이번 달 중에 출시될 예정입니다.
The Hackett Group (NASDAQ: HCKT) a annoncé ses résultats financiers pour le deuxième trimestre 2024.
Le chiffre d'affaires total s'est élevé à 77,7 millions de dollars, dépassant les prévisions, et le chiffre d'affaires ajusté avant remboursements était de 75,9 millions de dollars, en hausse par rapport à 75,6 millions de dollars l'année dernière. Le bénéfice par action dilué selon les normes GAAP était de 0,31 USD, légèrement en baisse par rapport à 0,32 USD au deuxième trimestre 2023, tandis que le bénéfice par action ajusté est resté stable à 0,39 USD.
Le flux de trésorerie opérationnel a considérablement augmenté, atteignant 13,7 millions de dollars, contre 7,7 millions de dollars au deuxième trimestre 2023. L'entreprise détient des soldes de trésorerie de 19,1 millions de dollars face à 27,0 millions de dollars de crédit en souffrance.
Le Conseil d'administration a déclaré un dividende de 0,11 USD par action pour le troisième trimestre 2024. Les prévisions pour le troisième trimestre 2024 estiment un chiffre d'affaires total compris entre 74,5 et 76,0 millions de dollars et un bénéfice par action ajusté entre 0,39 et 0,41 USD.
Le PDG Ted A. Fernandez a souligné les efforts de l'entreprise pour améliorer les capacités d'AI XPLR. La version 2 d'AI XPLR comprendra des simulations de cas d'utilisation significatifs et des fonctionnalités de conception, prévue pour être lancée ce mois-ci.
The Hackett Group (NASDAQ: HCKT) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben.
Der Gesamtumsatz betrug 77,7 Millionen US-Dollar, übertraf die Prognosen, und der bereinigte Umsatz vor Rückerstattungen lag bei 75,9 Millionen US-Dollar, ein Anstieg von 75,6 Millionen US-Dollar im Vorjahr. Der verwässerte Gewinn je Aktie (EPS) nach GAAP betrug 0,31 US-Dollar, leicht gesunken von 0,32 US-Dollar im zweiten Quartal 2023, während der bereinigte EPS stabil bei 0,39 US-Dollar blieb.
Der operative Cashflow erhöhte sich erheblich auf 13,7 Millionen US-Dollar, verglichen mit 7,7 Millionen US-Dollar im zweiten Quartal 2023. Das Unternehmen hält einen Kassenbestand von 19,1 Millionen US-Dollar gegenüber 27,0 Millionen US-Dollar an ausstehenden Krediten.
Der Vorstand erklärte eine Dividende von 0,11 US-Dollar pro Aktie für das dritte Quartal 2024. Die Prognosen für das dritte Quartal 2024 schätzen den Gesamtumsatz auf zwischen 74,5 und 76,0 Millionen US-Dollar und den bereinigten EPS zwischen 0,39 und 0,41 US-Dollar.
CEO Ted A. Fernandez hob die Bemühungen des Unternehmens hervor, die AI XPLR-Fähigkeiten zu verbessern. Die Version 2 von AI XPLR wird signifikante Anwendungsfälle und Entwurfsmöglichkeiten beinhalten und soll diesen Monat veröffentlicht werden.
- Total revenue of $77.7 million exceeded guidance.
- Operating cash flow increased to $13.7 million, up from $7.7 million in Q2 2023.
- Adjusted EPS met the high end of guidance at $0.39.
- GAAP diluted EPS decreased to $0.31 from $0.32 in Q2 2023.
- Company holds $27.0 million in outstanding credit.
Insights
The Hackett Group's Q2 2024 results demonstrate steady performance with some positive indicators. Revenue before reimbursements of
The company's pivot towards Gen AI consulting, leveraging their AI XPLR platform, indicates a strategic focus on high-growth areas. This could potentially drive future revenue growth, but may require initial investments. The upcoming release of XPLR Version 2 with enhanced capabilities could be a key differentiator in the competitive consulting market.
Q3 2024 guidance suggests slight sequential softness, with revenue projected between
The Hackett Group's focus on Gen AI consulting and the development of their AI XPLR platform is a strategic move in a rapidly evolving tech landscape. The planned release of XPLR Version 2 with use case simulations and design functionality represents a significant upgrade, potentially offering clients more tangible AI implementation strategies.
This pivot aligns with the increasing demand for AI solutions across industries. By combining their existing consulting expertise with AI capabilities, Hackett is positioning itself at the intersection of business strategy and cutting-edge technology. However, the success of this initiative will depend on the platform's effectiveness and the company's ability to deliver measurable value to clients in AI implementation.
The aggressive pivot mentioned suggests substantial resource allocation to AI, which could impact short-term margins but may drive long-term growth if executed successfully.
Financial Highlights
-
Total revenue in the second quarter of 2024 was
$77.7 million $75.9 million $77.1 million $75.6 million -
GAAP diluted earnings per share was
$0.31 $0.32 -
Adjusted diluted earnings per share, a non-GAAP measure, was
$0.39 $0.39 -
Cash flow provided from operations was
$13.7 million $7.7 million -
As of June 28, 2024, the Company's cash balances were
$19.1 million $27.0 million $12.9 million -
Subsequent to the end of the second quarter, the Company's Board of Directors declared its third quarter of 2024 dividend of
$0.11
“We continued to report solid operating results that met or exceeded our quarterly guidance. This was achieved while aggressively pivoting our capabilities and go-to-market efforts to address the emerging demand for Gen AI consulting, leveraging our new ideation and design platform, AI XPLR,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “Our focus during the quarter was to use the initial feedback from client meetings and new projects to enhance and extend the capabilities of AI XPLR. Our Version 2 of XPLR, which we plan to release this month, will include use case simulations and design functionality, which are significant upgrades from our Version 1 platform.”
Business Outlook for the Third Quarter of 2024
Based on the Company’s current outlook:
-
The Company estimates total revenue before reimbursements for the third quarter of 2024 will be in the range of
$74.5 million $76.0 million -
The Company estimates adjusted diluted earnings per share for the third quarter of 2024 to be in the range of
$0.39 $0.41 27.7% .
Conference Call and Webcast Details
- On Tuesday, August 6, 2024, senior management will discuss second quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 593-0486, [Passcode: Second 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, August 6, 2024 and will run through 5:00 P.M. ET on Tuesday, August 20, 2024. To access the rebroadcast, please dial (888) 566-0039. For International callers, please dial (203) 369-3039.
- In addition, The Hackett Group® will also be webcasting this conference call live. 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, August 6, 2024 and will run through 5:00 P.M. ET on Tuesday, August 20, 2024. To access the replay, visit www.thehackettgroup.com.
Use of Non-GAAP Financial Measures
The Company provides adjusted earnings results (which excluded non-cash stock-based compensation expense, acquisition-related non-cash stock-based compensation expense, legal settlement and related costs and includes a GAAP 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 users' overall 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 and 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 its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. See the reconciliation of actual results titled “Reconciliation of GAAP to Non-GAAP Measures” in the accompanying tables.
The Company believes that the presentation of non-GAAP financial information on a forward-looking basis, including the guidance contained in this release, provides important supplemental information to management and investors regarding its anticipated results of operations. The Company is unable to provide a reconciliation of GAAP measures to corresponding forward-looking non-GAAP measures without unreasonable effort due to the high variability and low visibility of most of the items that have been excluded from these non-GAAP measures. For example, non-cash stock-based compensation expense is impacted by the Company’s future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company’s stock will trade in those future periods. In addition, the provision or benefit for income taxes is impacted by non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. The effects of these reconciling items may be significant, as the items that are being excluded are difficult to predict.
About The Hackett Group®
The Hackett Group, Inc. (NASDAQ: HCKT) is a leading Gen AI strategic consultancy and executive advisory firm that enables organizations to achieve Digital World Class® performance. Using AI XPLR™ – our Gen AI assessment platform – helps organizations achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including
For more information on The Hackett Group, visit: https://www.thehackettgroup.com/; email info@thehackettgroup.com; or call (770) 225-3600.
The Hackett Group, quadrant logo, World Class Defined and Enabled, Quantum Leap, and Digital World Class are the registered marks of The Hackett Group.
Cautionary Statement Regarding “Forward-Looking” Statements
This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’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 may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its artificial intelligence, digital transformation and other consulting services, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.
| The Hackett Group, Inc. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
Quarter Ended |
|
Six Months Ended |
||||||||||||||
June 28, |
|
June 30, |
|
June 28, |
|
June 30, |
||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
| Revenue: | ||||||||||||||||
| Revenue before reimbursements | $ |
75,896 |
|
$ |
75,641 |
|
$ |
151,623 |
|
$ |
145,472 |
|
||||
| Reimbursements |
|
1,760 |
|
|
1,461 |
|
|
3,220 |
|
|
2,859 |
|
||||
| Total revenue |
|
77,656 |
|
|
77,102 |
|
|
154,843 |
|
|
148,331 |
|
||||
| Costs and expenses: | ||||||||||||||||
| Cost of service: | ||||||||||||||||
| Personnel costs before reimbursable expenses (includes |
|
45,395 |
|
|
45,426 |
|
|
91,166 |
|
|
88,569 |
|
||||
| Reimbursable expenses |
|
1,760 |
|
|
1,461 |
|
|
3,220 |
|
|
2,859 |
|
||||
| Total cost of service |
|
47,155 |
|
|
46,887 |
|
|
94,386 |
|
|
91,428 |
|
||||
| Selling, general and administrative costs (includes |
|
17,985 |
|
|
17,425 |
|
|
36,314 |
|
|
32,861 |
|
||||
| Legal settlement and related costs |
|
— |
|
|
— |
|
|
102 |
|
|
— |
|
||||
| Total costs and operating expenses |
|
65,140 |
|
|
64,312 |
|
|
130,802 |
|
|
124,289 |
|
||||
| Operating income |
|
12,516 |
|
|
12,790 |
|
|
24,041 |
|
|
24,042 |
|
||||
| Other expense, net: | ||||||||||||||||
| Interest expense, net |
|
(512 |
) |
|
(921 |
) |
|
(984 |
) |
|
(1,780 |
) |
||||
| Income before income taxes |
|
12,004 |
|
|
11,869 |
|
|
23,057 |
|
|
22,262 |
|
||||
| Income tax expense |
|
3,256 |
|
|
3,149 |
|
|
5,578 |
|
|
5,381 |
|
||||
| Net income | $ |
8,748 |
|
$ |
8,720 |
|
$ |
17,479 |
|
$ |
16,881 |
|
||||
| Basic net income per common share: | ||||||||||||||||
| Income per common share | $ |
0.32 |
|
$ |
0.32 |
|
$ |
0.64 |
|
$ |
0.62 |
|
||||
| Weighted average common shares outstanding |
|
27,616 |
|
|
27,192 |
|
|
27,519 |
|
|
27,109 |
|
||||
| Diluted net income per common share: | ||||||||||||||||
| Income per common share | $ |
0.31 |
|
$ |
0.32 |
|
$ |
0.63 |
|
$ |
0.62 |
|
||||
| Weighted average common and common equivalent shares outstanding |
|
27,943 |
|
|
27,548 |
|
|
27,809 |
|
|
27,408 |
|
||||
| The Hackett Group, Inc. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| (unaudited) | ||||||
June 28, |
|
December 29, |
||||
2024 |
|
2023 |
||||
ASSETS |
||||||
| Current assets: | ||||||
| Cash | $ |
19,145 |
$ |
20,957 |
||
| Accounts receivable and contract assets, net |
|
58,133 |
|
52,113 |
||
| Prepaid expenses and other current assets |
|
2,981 |
|
2,368 |
||
| Total current assets |
|
80,259 |
|
75,438 |
||
| Property and equipment, net |
|
19,990 |
|
20,044 |
||
| Other assets |
|
375 |
|
285 |
||
| Goodwill |
|
84,110 |
|
84,242 |
||
| Operating lease right-of-use assets |
|
2,790 |
|
1,419 |
||
| Total assets | $ |
187,524 |
$ |
181,428 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
| Current liabilities: | ||||||
| Accounts payable | $ |
4,290 |
$ |
7,557 |
||
| Accrued expenses and other liabilities |
|
24,048 |
|
26,801 |
||
| Contract liabilities |
|
13,299 |
|
12,087 |
||
| Income tax payable |
|
4,242 |
|
2,360 |
||
| Operating lease liabilities |
|
927 |
|
1,083 |
||
| Total current liabilities |
|
46,806 |
|
49,888 |
||
| Long-term deferred tax liability, net |
|
9,626 |
|
8,118 |
||
| Long-term debt |
|
26,747 |
|
32,711 |
||
| Operating lease liabilities |
|
2,122 |
|
631 |
||
| Total liabilities |
|
85,301 |
|
91,348 |
||
| Shareholders' equity |
|
102,223 |
|
90,080 |
||
| Total liabilities and shareholders' equity | $ |
187,524 |
$ |
181,428 |
||
| The Hackett Group, Inc. | |||||||||||
| SEGMENT PROFIT | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
Quarter Ended |
|
Six Months Ended |
|||||||||
June 28, |
|
June 30, |
|
June 28, |
|
June 30, |
|||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
| Global S&BT (1): | |||||||||||
| Total revenue (4) | $ |
42,262 |
$ |
43,632 |
$ |
83,154 |
$ |
85,967 |
|||
| Segment profit (5) |
|
12,748 |
|
13,102 |
|
22,802 |
|
26,909 |
|||
| Oracle Solutions (2): | |||||||||||
| Total revenue (4) | $ |
23,045 |
$ |
20,775 |
$ |
44,774 |
$ |
37,943 |
|||
| Segment profit (5) |
|
5,369 |
|
5,886 |
|
10,630 |
|
8,935 |
|||
| SAP Solutions (3): | |||||||||||
| Total revenue (4) | $ |
12,349 |
$ |
12,695 |
$ |
26,915 |
$ |
24,421 |
|||
| Segment profit (5) |
|
3,253 |
|
2,990 |
|
8,135 |
|
5,624 |
|||
| Total Company: | |||||||||||
| Total revenue (4) | $ |
77,656 |
$ |
77,102 |
$ |
154,843 |
$ |
148,331 |
|||
| Total segment profit | $ |
21,370 |
$ |
21,978 |
$ |
41,567 |
$ |
41,468 |
|||
| Items not allocated to segment level (5): | |||||||||||
| Corporate general and administrative expenses |
|
5,063 |
|
5,610 |
|
10,092 |
|
10,571 |
|||
| Non-cash stock based compensation expense |
|
2,850 |
|
2,772 |
|
5,449 |
|
5,219 |
|||
| Legal settlement and related costs |
|
- |
|
- |
|
102 |
|
- |
|||
| Depreciation expense |
|
941 |
|
806 |
|
1,883 |
|
1,636 |
|||
| Interest expense, net |
|
512 |
|
921 |
|
984 |
|
1,780 |
|||
| Income before taxes | $ |
12,004 |
$ |
11,869 |
$ |
23,057 |
$ |
22,262 |
|||
| (1) Global S&BT includes the results of our strategic businesses consulting practices, including Strategy and Business Transformation Consulting, Benchmarking, Business Advisory Services, IP as-a-Service and OneStream. | |||||||||||
| (2) Oracle Solutions includes the results of our EPM/ERP and AMS practices. | |||||||||||
| (3) SAP Solutions includes the results of our SAP applications and related SAP service offerings. | |||||||||||
| (4) Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin. | |||||||||||
| (5) Segment profits consist of the revenue generated by the segment, less the direct costs of revenue and selling, general and administrative expenses that are incurred directly by the segment. Items not allocated to the segment level include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Items not allocated to the segment level include corporate general and administrative expenses, non-cash stock based compensation expense, depreciation expense, legal settlement and related costs, interest expense and foreign currency gains and losses. Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits. | |||||||||||
| The Hackett Group, Inc. | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (unaudited) | |||||||||||
Quarter Ended |
|
Six Months Ended |
|||||||||
June 28, |
|
June 30, |
|
June 28, |
|
June 30, |
|||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
| GAAP NET INCOME | $ |
8,748 |
$ |
8,720 |
$ |
17,479 |
$ |
16,881 |
|||
| Adjustments (1): | |||||||||||
| Non-cash stock based compensation expense (2) |
|
2,850 |
|
2,769 |
|
5,449 |
|
5,213 |
|||
| Acquisition-related non-cash stock based compensation expense (3) |
|
- |
|
3 |
|
- |
|
6 |
|||
| Legal settlement and related costs |
|
- |
|
- |
|
102 |
|
- |
|||
| ADJUSTED NET INCOME BEFORE INCOME TAXES ON ADJUSTMENTS (1) |
|
11,598 |
|
11,492 |
|
23,030 |
|
22,100 |
|||
| Tax effect of adjustments above (4) |
|
748 |
|
731 |
|
1,455 |
|
1,377 |
|||
| ADJUSTED NET INCOME (1) | $ |
10,850 |
$ |
10,761 |
$ |
21,575 |
$ |
20,723 |
|||
| GAAP diluted net income per common share | $ |
0.31 |
$ |
0.32 |
$ |
0.63 |
$ |
0.62 |
|||
| Adjusted diluted net income per common share (1) | $ |
0.39 |
$ |
0.39 |
$ |
0.78 |
$ |
0.76 |
|||
| Weighted average common and common equivalent shares outstanding |
|
27,943 |
|
27,548 |
|
27,809 |
|
27,408 |
|||
| (1) The Company provides adjusted earnings results (which excludes non-cash stock-based compensation expense, acquisition-related non-cash stock-based compensation expense, legal settlement and related costs and includes a GAAP 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 users' overall 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 and 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 its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. | |||||||||||
| (2) Non-cash stock based compensation expense is accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation. The Company excludes non-cash stock based compensation expense and the related tax effects for the purposes of adjusted net income and adjusted diluted earnings per share. The Company believes that non-GAAP measures of profitability, which exclude non-cash stock based compensation expense, are widely used by investors. | |||||||||||
| (3) The Company incurs cash and non-cash stock based compensation expense for acquisition related consideration that is recognized over time under GAAP. The Company believes excluding these amounts more consistently presents its ongoing results of operations because they are related to acquisitions and not due to normal operating activities. The acquisition-related non-cash stock based compensation expense is also accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation. | |||||||||||
| (4) The adjustment for the income tax expense is based on the accounting treatment and income tax rate for the jurisdiction of each item. The impact of non-cash stock based compensation expense was |
|||||||||||
| The Hackett Group, Inc. | ||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | ||||||||||||
| (unaudited) | ||||||||||||
Quarter Ended |
||||||||||||
June 28, |
|
March 29, |
|
June 30, |
||||||||
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
||
| Segment Total Revenue and Revenue Before Reimbursements (in thousands): | ||||||||||||
| Global S&BT: | ||||||||||||
| Total revenue | $ |
42,262 |
|
$ |
40,892 |
|
$ |
43,632 |
|
|||
| Reimbursements |
|
700 |
|
|
639 |
|
|
675 |
|
|||
| Revenue before reimbursements | $ |
41,562 |
|
$ |
40,253 |
|
$ |
42,957 |
|
|||
| Oracle Solutions: | ||||||||||||
| Total revenue | $ |
23,045 |
|
$ |
21,729 |
|
$ |
20,775 |
|
|||
| Reimbursements |
|
888 |
|
|
661 |
|
|
463 |
|
|||
| Revenue before reimbursements | $ |
22,157 |
|
$ |
21,068 |
|
$ |
20,312 |
|
|||
| SAP Solutions: | ||||||||||||
| Total revenue | $ |
12,349 |
|
$ |
14,566 |
|
$ |
12,695 |
|
|||
| Reimbursements |
|
172 |
|
|
160 |
|
|
323 |
|
|||
| Revenue before reimbursements | $ |
12,177 |
|
$ |
14,406 |
|
$ |
12,372 |
|
|||
| Total segment revenue: | ||||||||||||
| Total revenue | $ |
77,656 |
|
$ |
77,187 |
|
$ |
77,102 |
|
|||
| Reimbursements |
|
1,760 |
|
|
1,460 |
|
|
1,461 |
|
|||
| Revenue before reimbursements | $ |
75,896 |
|
$ |
75,727 |
|
$ |
75,641 |
|
|||
| Revenue Concentration: | ||||||||||||
| (% of total revenue) | ||||||||||||
| Top customer |
|
13 |
% |
|
9 |
% |
|
5 |
% |
|||
| Top 5 customers |
|
25 |
% |
|
24 |
% |
|
16 |
% |
|||
| Top 10 customers |
|
33 |
% |
|
34 |
% |
|
24 |
% |
|||
| Key Metrics and Other Financial Data: | ||||||||||||
| Total Company: | ||||||||||||
| Consultant headcount |
|
1,145 |
|
|
1,154 |
|
|
1,148 |
|
|||
| Total headcount |
|
1,409 |
|
|
1,414 |
|
|
1,401 |
|
|||
| Days sales outstanding (DSO) |
|
68 |
|
|
68 |
|
|
68 |
|
|||
| Cash provided by operating activities (in thousands) | $ |
13,719 |
|
$ |
2,792 |
|
$ |
7,714 |
|
|||
| Depreciation (in thousands) | $ |
941 |
|
$ |
942 |
|
$ |
806 |
|
|||
| Capital expenditures (in thousands) | $ |
884 |
|
$ |
948 |
|
$ |
1,062 |
|
|||
| Remaining Plan authorization: | ||||||||||||
| Shares purchased (in thousands) | — |
43 |
— |
|||||||||
| Cost of shares repurchased (in thousands) | $ |
— |
|
$ |
1,055 |
|
$ |
— |
|
|||
| Average price per share of shares purchased | $ |
— |
|
$ |
24.34 |
|
$ |
— |
|
|||
| Remaining Plan authorization (in thousands) | $ |
12,883 |
|
$ |
12,883 |
|
$ |
13,938 |
|
|||
| Shares Purchased to Satisfy Employee Net Vesting Obligations: | ||||||||||||
| Shares purchased (in thousands) |
|
6 |
|
|
162 |
|
|
6 |
|
|||
| Cost of shares purchased (in thousands) | $ |
144 |
|
$ |
3,781 |
|
$ |
119 |
|
|||
| Average price per share of shares purchased | $ |
22.94 |
|
$ |
23.36 |
|
$ |
19.00 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806487366/en/
Robert A. Ramirez, CFO, 305-375-8005 or rramirez@thehackettgroup.com
Source: The Hackett Group, Inc.
FAQ
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