Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Trading Symbol | HCKT | |
Entity Registrant Name | Hackett Group, Inc. | |
Entity Central Index Key | 0001057379 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 27,216,659 | |
Title of 12(b) Security | Common Stock, par value $.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 333-48123 | |
Entity Tax Identification Number | 65-0750100 | |
Entity Address, Address Line One | 1001 Brickell Bay Drive | |
Entity Address, Address Line Two | Suite 3000 | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33131 | |
City Area Code | 305 | |
Local Phone Number | 375-8005 | |
Entity Incorporation, State or Country Code | FL | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Current assets: | ||
Cash | $ 15,834 | $ 30,255 |
Accounts receivable and contract assets, net of allowance of $1,128 and $856 at June 30, 2023 and December 30, 2022, respectively | 57,797 | 48,376 |
Prepaid expenses and other current assets | 3,203 | 2,535 |
Total current assets | 76,834 | 81,166 |
Property and equipment, net | 19,856 | 19,359 |
Other assets | 285 | 268 |
Goodwill | 84,148 | 83,502 |
Operating lease right-of-use assets | 1,804 | 698 |
Total assets | 182,927 | 184,993 |
Current liabilities: | ||
Accounts payable | 5,475 | 8,741 |
Accrued expenses and other liabilities | 22,342 | 30,953 |
Contract liabilities | 14,452 | 13,278 |
Income taxes payable | 3,373 | 5,759 |
Operating lease liabilities | 1,226 | 870 |
Total current liabilities | 46,868 | 59,601 |
Non-current deferred tax liability, net | 9,339 | 6,877 |
Long term debt, net | 52,676 | 59,653 |
Operating lease liabilities | 1,151 | 584 |
Total liabilities | 110,034 | 126,715 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.001 par value, 1,250,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value, 125,000,000 shares authorized; 60,528,948 and 60,147,720 shares issued at June 30, 2023 and December 30, 2022, respectively | 61 | 60 |
Additional paid-in capital | 311,505 | 308,325 |
Treasury stock, at cost, 33,314,926 and 33,277,459 shares June 30, 2023 and December 30, 2022, respectively | (274,600) | (273,866) |
Retained earnings | 49,540 | 38,640 |
Accumulated other comprehensive loss | (13,613) | (14,881) |
Total shareholders' equity | 72,893 | 58,278 |
Total liabilities and shareholders' equity | $ 182,927 | $ 184,993 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 1,128 | $ 856 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 60,528,948 | 60,147,720 |
Treasury stock, at cost, shares | 33,314,926 | 33,277,459 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Revenue: | ||||
Revenue | $ 77,102 | $ 75,928 | $ 148,331 | $ 151,592 |
Cost of service: | ||||
Total cost of service | 46,887 | 45,861 | 91,428 | 93,750 |
Selling, general and administrative costs (includes $1,129 and $2,050 and $1,235 and $2,168 of non-cash stock based compensation expense in the three and six months ended June 30, 2023 and July 1, 2022, respectively) | 17,425 | 15,886 | 32,861 | 30,252 |
Total costs and operating expenses | 64,312 | 61,747 | 124,289 | 124,002 |
Income from operations | 12,790 | 14,181 | 24,042 | 27,590 |
Other expense, net: | ||||
Interest expense, net | (921) | (28) | (1,780) | (56) |
Income from operations before income taxes | 11,869 | 14,153 | 22,262 | 27,534 |
Income tax expense | 3,149 | 3,938 | 5,381 | 6,814 |
Net income | $ 8,720 | $ 10,215 | $ 16,881 | $ 20,720 |
Basic net income per common share: | ||||
Income per common share from operations | $ 0.32 | $ 0.32 | $ 0.62 | $ 0.66 |
Weighted average common shares outstanding | 27,191,648 | 31,652,413 | 27,109,054 | 31,550,911 |
Diluted net income per common share: | ||||
Income per common share from operations | $ 0.32 | $ 0.32 | $ 0.62 | $ 0.65 |
Weighted average common and common equivalent shares outstanding | 27,547,647 | 32,221,038 | 27,408,132 | 32,032,300 |
Revenue Before Reimbursements [Member] | ||||
Revenue: | ||||
Revenue | $ 75,641 | $ 74,768 | $ 145,472 | $ 149,876 |
Reimbursements [Member] | ||||
Revenue: | ||||
Revenue | 1,461 | 1,160 | 2,859 | 1,716 |
Cost of service: | ||||
Total cost of service | 1,461 | 1,160 | 2,859 | 1,716 |
Cost Before Reimbursements [Member] | ||||
Cost of service: | ||||
Total cost of service | $ 45,426 | $ 44,701 | $ 88,569 | $ 92,034 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share based compensation | $ 2,772 | $ 2,718 | $ 5,219 | $ 5,317 |
Cost of Sales [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share based compensation | 1,643 | 3,169 | 1,483 | 3,149 |
Selling General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share based compensation | $ 1,129 | $ 2,050 | $ 1,235 | $ 2,168 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,720 | $ 10,215 | $ 16,881 | $ 20,720 |
Foreign currency translation adjustment | 698 | (2,896) | 1,268 | (4,030) |
Total comprehensive income | $ 9,418 | $ 7,319 | $ 18,149 | $ 16,690 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 16,881 | $ 20,720 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 1,636 | 1,630 |
Amortization expense | 154 | |
Amortization of debt issuance costs | 36 | 28 |
Non-cash stock based compensation expense | 5,219 | 5,317 |
Provision for doubtful accounts | 303 | 204 |
Loss (gain) on foreign currency translation | 605 | (968) |
Deferred income tax expense | 2,390 | 1,064 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable and contract assets | (9,772) | 1,079 |
(Increase) decrease in prepaid expenses and other assets | (1,710) | 3,369 |
Decrease in accounts payable | (3,266) | (2,277) |
Decrease in accrued expenses and other liabilities | (6,459) | (7,613) |
Increase (decrease) in contract liabilities | 1,174 | (366) |
(Decrease) increase in income tax payable | (2,387) | 1,948 |
Net cash provided by operating activities | 4,650 | 24,289 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,125) | (2,267) |
Net cash used in investing activities | (2,125) | (2,267) |
Cash flows from financing activities: | ||
Debt issuance costs | (13) | (10) |
Proceeds from borrowings | 5,000 | |
Repayment of borrowings | (12,000) | |
Proceeds from ESPP | 481 | 407 |
Proceeds from the exercise of stock options | 120 | |
Dividends paid | (5,987) | (3,475) |
Repurchase of common stock | (4,379) | (3,142) |
Net cash used in financing activities | (16,898) | (6,100) |
Effect of exchange rate on cash | (48) | (36) |
Net (decrease) increase in cash and cash equivalents | (14,421) | 15,886 |
Cash at beginning of period | 30,255 | 45,794 |
Cash at end of period | 15,834 | 61,680 |
Supplemental disclosure of cash flow information: | ||
Cash paid (refunded) for income taxes | 5,192 | (34) |
Cash paid for interest | 1,819 | 28 |
Supplemental disclosure of non-cash flow investing and financing activities: | ||
Dividend declared during the quarter and paid the following quarter | $ 2,991 | $ 3,480 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2021 | $ 143,853 | $ 60 | $ 300,288 | $ (157,294) | $ 11,272 | $ (10,473) |
Balance, Shares at Dec. 31, 2021 | 59,631 | (28,358) | ||||
Issuance of common stock | (2,432) | (2,432) | ||||
Issuance of common stock, Shares | 373 | |||||
Treasury stock purchased, net of costs | (635) | $ (635) | ||||
Treasury stock purchased, net of costs, Shares | (31) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 3,632 | 3,632 | ||||
Dividends declared | (3,474) | (3,474) | ||||
Net income | 10,505 | 10,505 | ||||
Foreign currency translation | (1,134) | (1,134) | ||||
Balance at Apr. 01, 2022 | 150,315 | $ 60 | 301,488 | $ (157,929) | 18,303 | (11,607) |
Ending Balance, Shares at Apr. 01, 2022 | 60,004 | (28,389) | ||||
Balance at Dec. 31, 2021 | 143,853 | $ 60 | 300,288 | $ (157,294) | 11,272 | (10,473) |
Balance, Shares at Dec. 31, 2021 | 59,631 | (28,358) | ||||
Net income | 20,720 | |||||
Foreign currency translation | (4,030) | |||||
Balance at Jul. 01, 2022 | 156,830 | $ 60 | 304,164 | $ (157,929) | 25,038 | (14,503) |
Ending Balance, Shares at Jul. 01, 2022 | 60,065 | (28,389) | ||||
Balance at Dec. 31, 2021 | 143,853 | $ 60 | 300,288 | $ (157,294) | 11,272 | (10,473) |
Balance, Shares at Dec. 31, 2021 | 59,631 | (28,358) | ||||
Balance at Dec. 30, 2022 | 58,278 | $ 60 | 308,325 | $ (273,866) | 38,640 | (14,881) |
Ending Balance, Shares at Dec. 30, 2022 | 60,148 | (33,277) | ||||
Balance at Apr. 01, 2022 | 150,315 | $ 60 | 301,488 | $ (157,929) | 18,303 | (11,607) |
Balance, Shares at Apr. 01, 2022 | 60,004 | (28,389) | ||||
Issuance of common stock | 452 | 452 | ||||
Issuance of common stock, Shares | 61 | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,224 | 2,224 | ||||
Dividends declared | (3,480) | (3,480) | ||||
Net income | 10,215 | 10,215 | ||||
Foreign currency translation | (2,896) | (2,896) | ||||
Balance at Jul. 01, 2022 | 156,830 | $ 60 | 304,164 | $ (157,929) | 25,038 | (14,503) |
Ending Balance, Shares at Jul. 01, 2022 | 60,065 | (28,389) | ||||
Balance at Dec. 30, 2022 | 58,278 | $ 60 | 308,325 | $ (273,866) | 38,640 | (14,881) |
Balance, Shares at Dec. 30, 2022 | 60,148 | (33,277) | ||||
Issuance of common stock | (3,529) | (3,529) | ||||
Issuance of common stock, Shares | 343 | |||||
Treasury stock purchased, net of costs | (711) | $ (711) | ||||
Treasury stock purchased, net of costs, Shares | (37) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 3,662 | 3,662 | ||||
Dividends declared | (2,990) | (2,990) | ||||
Net income | 8,161 | 8,161 | ||||
Foreign currency translation | 570 | 570 | ||||
Balance at Mar. 31, 2023 | 63,441 | $ 60 | 308,458 | $ (274,577) | 43,811 | (14,311) |
Ending Balance, Shares at Mar. 31, 2023 | 60,491 | (33,314) | ||||
Balance at Dec. 30, 2022 | 58,278 | $ 60 | 308,325 | $ (273,866) | 38,640 | (14,881) |
Balance, Shares at Dec. 30, 2022 | 60,148 | (33,277) | ||||
Dividends declared | (6,000) | |||||
Net income | 16,881 | |||||
Foreign currency translation | 1,268 | |||||
Balance at Jun. 30, 2023 | 72,893 | $ 61 | 311,505 | $ (274,600) | 49,540 | (13,613) |
Ending Balance, Shares at Jun. 30, 2023 | 60,529 | (33,314) | ||||
Balance at Mar. 31, 2023 | 63,441 | $ 60 | 308,458 | $ (274,577) | 43,811 | (14,311) |
Balance, Shares at Mar. 31, 2023 | 60,491 | (33,314) | ||||
Issuance of common stock | 363 | $ 1 | 362 | |||
Issuance of common stock, Shares | 38 | |||||
Treasury stock purchased, net of costs | (23) | $ (23) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,685 | 2,685 | ||||
Dividends declared | (2,991) | (2,991) | ||||
Net income | 8,720 | 8,720 | ||||
Foreign currency translation | 698 | 698 | ||||
Balance at Jun. 30, 2023 | $ 72,893 | $ 61 | $ 311,505 | $ (274,600) | $ 49,540 | $ (13,613) |
Ending Balance, Shares at Jun. 30, 2023 | 60,529 | (33,314) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jul. 01, 2022 | Apr. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 8,720 | $ 8,161 | $ 10,215 | $ 10,505 | $ 16,881 | $ 20,720 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Gener
Basis of Presentation and General Information | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and General Information | 1. B asis of Presentation and General Information Basis of Presentation The accompanying consolidated financial statements of The Hackett Group , Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 30, 2022, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 3, 2023. The consolidated results of operations for the quarter and six months ended June 30, 2023 , are not necessarily indicative of the results to be expected for any future period or for the full fiscal year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Segment Reporting Segments are defined as components of a company that engage in business activities from which they earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company assesses its operating segments under the management approach in accordance with ASC 280, Segment Reporting (ASC 280), and has determined that it has three operating segments: Global S&BT, Oracle Solutions and SAP Solutions which are also its reportable segments. See Note 11 “Segment Information and Geographic Data” for detailed segment information. Goodwill and Other Intangible Assets For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, management made the determination to present three operating segments, three reportable segments and three reporting units as follows: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and Digital AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned. The goodwill has been allocated to the reporting unit based on the reporting unit's relative fair value. The carrying amount of goodwill by reporting unit is as follows (in thousands): Foreign December 30, Additions/ Currency June 30, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 646 $ 57,456 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 646 $ 84,148 1. Basis of Presentation and General Information (continued) Revenue Recognition The Company generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support and maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America ("SAP") software license or maintenance agreements provided by SAP. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and maintenance which is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. The Company also provides software maintenance on other ERP systems, primarily Oracle. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. 1. Basis of Presentation and General Information (continued) The payment terms and conditions in the Company’s customer contracts vary. The agreements entered into in connection with a project, whether time and materials-based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. Differences between the timing of billings and the recognition of revenue are recognized as either contract assets or contract liabilities in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients is recorded as contract assets and is included within accounts receivable and contract assets. Services not yet performed, however billed to the client and uncollected at period end, are recorded as contract assets and are included within accounts receivable and contract assets. Client prepayments are classified as contract liabilities and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances. During the quarter and six months ended June 30, 2023, the Company recognized $ 2.8 million and $ 10.6 million, respectively, of revenue as a result of changes in the contract liability balance, as compared to $ 3.4 million and $ 10.3 million, respectively, for the quarter and six months ended July 1, 2022. Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, the Company disaggregates revenue as follows for the quarters and six months ended June 30, 2023 and July 1, 2022 (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Global S&BT: North America Consulting $ 36,444 $ 38,698 $ 72,611 $ 73,783 International Consulting 7,188 5,832 13,356 13,384 Total Global S&BT $ 43,632 $ 44,530 $ 85,967 $ 87,167 Oracle Solutions: Consulting and software support and maintenance $ 20,775 $ 19,971 $ 37,943 $ 41,483 Total Oracle Solutions $ 20,775 $ 19,971 $ 37,943 $ 41,483 SAP Solutions: Consulting and software support and maintenance $ 11,054 $ 10,413 $ 21,767 $ 20,762 Software license sales 1,641 1,014 2,654 2,180 Total SAP Solutions $ 12,695 $ 11,427 $ 24,421 $ 22,942 Total segment revenue $ 77,102 $ 75,928 $ 148,331 $ 151,592 The total revenue from the Global S&BT segment, the Oracle Solutions segment and the SAP Solutions segment's consulting and software support and maintenance services is all recognized over time. The software license sales total revenue included in the SAP Solutions segment is recognized at a point in time. Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 30, 2022 and December 31, 2021, the Company had $ 1.5 million and $ 1.6 million, respectively, of deferred commissions, of whic h $ 0.4 million and $ 0.6 million was amortized during the quarter and six months ended June 30, 2023, respectively, and $ 0.4 million and $ 0.7 million for the same periods in 2022, respectively. No impairment loss was recognized relating to the capitalization of deferred commission. 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable, accrued expenses and other liabilities and contract liabilities. As of June 30, 2023 and December 30, 2022, the carrying amount of each financial instrument approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments. The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates. Impact of Macroeconomic Conditions on the Business The level of revenue the Company achieves is based on its ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. Any deterioration in the current macroeconomic environment or economic downturn as a result of weak or uncertain economic conditions due to inflation, high interest rates, national or geopolitical events or other factors impacting economic activity or business confidence could adversely affect the Company's clients' financial condition or outlook which may reduce clients' demand for the Company's services. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 2. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. 2. Net Income per Common Share (continued) The following table reconciles basic and dilutive weighted average common shares: Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Basic weighted average common shares outstanding 27,191,648 31,652,413 27,109,054 31,550,911 Effect of dilutive securities: Unvested restricted stock units and common stock subject 355,999 566,969 299,078 468,500 Common stock issuable upon the exercise of stock options — 1,656 — 12,889 Dilutive weighted average common shares outstanding 27,547,647 32,221,038 27,408,132 32,032,300 Approximately 5 thousand shares and 3 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and six months ended June 30, 2023, respectively, as compared to 3 thousand shares and 2 thousand shares for the quarter and six months ended July 1, 2022, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Receivables, Net, Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | 3. Accounts Receivable and Contract Assets, Net Accounts receivable and contract assets, net, consisted of the following (in thousands): June 30, December 30, 2023 2022 Accounts receivable $ 37,934 $ 28,913 Contract assets 20,991 20,319 Allowance for doubtful accounts ( 1,128 ) ( 856 ) Accounts receivable and contract assets, net $ 57,797 $ 48,376 Accounts receivable is net of uncollected advanced billings. Contract assets represents revenue for services performed that have not been invoiced. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Accrued Expenses and Other Liabilities | 4. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): June 30, December 30, 2023 2022 Accrued compensation and benefits $ 11,530 $ 9,320 Accrued bonuses 2,658 12,171 Accrued dividend payable 2,991 2,997 Restructuring liability 167 106 Accrued sales, use, franchise and VAT tax 2,065 2,572 Non-cash stock based compensation accrual 114 1,241 Other accrued expenses 2,817 2,546 Total accrued expenses and other liabilities $ 22,342 $ 30,953 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 5. Leases The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 year and 4 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset. The components of lease expense were as follows for the six months ended June 30, 2023 (in thousands): Operating lease cost $ 560 Total net lease costs $ 560 The weighted average remaining lease term is 2.9 years. The weighted average discount rate utilized is 4 %. For the quarter and six months ended June 30, 2023, the Company paid $ 0.3 million and $ 0.6 million, respectively, from operating cash flows for its operating leases. Future minimum lease payments under non-cancellable operating leases as of June 30, 2023, were as follows (in thousands): 2023 (excluding the six months ended June 30, 2023) $ 722 2024 985 2025 260 2026 222 Thereafter 365 Total lease payments 2,554 Less imputed interest ( 177 ) Total $ 2,377 As of June 30, 2023, the Company does not have any additional operating leases that have not yet commenced . |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit Facility | 6. Credit Facility On November 7, 2022, the Company entered into a third amended and restated credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and the lenders party thereto, pursuant to which the lenders agreed to amend and restate its existing credit agreement, in order to extend the maturity date of the revolving line of credit and provide the Company with an additional $ 55.0 million in borrowing capacity, for an aggregate amount of up to $ 100.0 million from time to time pursuant to a revolving line of credit (the “Credit Facility”). The Credit Facility matures on November 7, 2027 . The obligations of Hackett under the Credit Facility are guaranteed by active existing and future material U.S. subsidiaries of Hackett (the “U.S. Subsidiaries”) and are secured by substantially all of the existing and future property and assets of Hackett and the U.S. Subsidiaries. The interest rates per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either a base rate or a Bloomberg Short-Term Bank Yield Index ("BSBY") rate, plus an applicable margin percentage. The applicable margin percentage is based on the consolidated leverage ratio, as defined in the Credit Agreement. As of June 30, 2023, the applicable margin percentage was 1.50 % per annum for the BSBY rate, and 0.75 % per annum, for the base rate. The interest rate of the commitment fee as of June 30, 2023 was 0.125 %. Interest payments are made monthly . The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of June 30, 2023, the Company was in compliance with all covenants. 6. Credit Facility (continued) As of June 30, 2023, the Company had $ 53.0 million of outstanding debt, excluding $ 0.3 million of deferred debt costs. As of December 30, 2022, the Company had $ 60.0 million of outstanding debt, excluding $ 0.3 million of deferred debt costs. During the second quarter and first six months ended June 30, 2023, the Company paid down $ 5.0 million and a net of $ 7.0 million, respectively, on the principal balance. As of June 30, 2023, the Company had $ 0.3 million of debt issuance costs remaining which will be amortized over the remaining life of the Credit Facility. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | 7. Stock Based Compensation During the quarter and six months ended June 30, 2023, the Company issued 7,886 and 589,443 restricted stock units, respectively, at a weighted average grant-date fair value of $ 18.98 and $ 21.40 per share, respectively. As of June 30, 2023 , the Company had 1,254,301 restricted stock units outstanding at a weighted average grant-date fair value of $ 19.74 per share. As of June 30, 2023 , $ 17.6 million of total restricted stock unit non-cash compensation expense related to unvested awards had not been recognized and is expected to be recognized over a weighted average period of approximately 2.4 years. In addition, as of June 30, 2023, the Company had 1,318 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $ 16.17 per share. Forfeitures for all of the Company’s outstanding equity awards are recognized as incurred. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity Treasury Stock and Tender Offer On July 30, 2002, the Company announced that its Board of Directors approved the repurchase of up to $ 5.0 million of the Company’s common stock through its share repurchase program. Since the inception of the repurchase plan, the Board of Directors has approved the repurchase of $ 287.2 million of the Company’s common stock, $ 120.0 million of which was approved in 2022. As of June 30, 2023, the Company had affected cumulative purchases under the plan of $ 273.2 million, leaving $ 14.0 million available for future purchases. In December 2022, the Company completed a tender offer through which 4.9 million shares of the Company's common stock were purchased for a total cost, inclusive of transaction related fees, of $ 116.0 million, or $ 23.72 per share, which represented 15 % of the Company's issued and outstanding stock at the time. The Company used $ 60.0 million in borrowings from its Credit Facility and cash on hand to fund the tender offer. During the quarter ended June 30, 2023 and July 1, 2022, the Company did no t repurchase any outstanding stock in the open market. During the six months ended June 30, 2023 and July 1, 2022, the Company repurchased 37 thousand shares and 31 thousand shares, respectively, from members of its Board of Directors at an average price per share of $ 18.96 and $ 20.50 , respectively, for a total cost of $ 0.7 million and $ 0.6 million, respectively. There is no expiration of the Company's repurchase authorization. Under the repurchase plan, the Company may buy back shares of its outstanding stock from time to time either on the open market or through privately negotiated transactions, subject to market conditions and trading restrictions. The Company holds repurchased shares of its common stock as treasury stock and accounts for treasury stock under the cost method. Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations. These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on the employee’s behalf. During the quarter and six months ended June 30, 2023, 6 thousand shares and 168 thousand were withheld and not issued, respectively, for a cost of $ 0.1 million and $ 3.6 million, respectively. During the quarter and six months ended July 1, 2022, 4 thousand shares and 130 thousand shares were withheld and not issued, respectively, for a cost of $ 76 thousand and $ 2.5 million, respectively. The shares withheld for taxes are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity. Dividend Program In 2022, the Company increased the annual dividend from $ 0.40 per share to $ 0.44 per share to be paid on a quarterly basis. During the first half of 2023, the Company declared two quarterly dividends to its shareholders for an aggregate of $ 6.0 million, which were paid in April 2023 and July 2023 . These dividends were paid from U.S. domestic sources and are accounted for as a decrease to retained earnings . Subsequent to June 30, 2023, the Company declared its third quarter dividend in 2023 to be paid in October of 2023 . |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 9. Transactions with Related Parties During the six months ended June 30, 2023 , the Company bought back 37 thousand shares of its common stock from members of its Board of Directors for $ 0.7 million, or $ 18.96 per share. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 10. Litigation The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. |
Segment Information and Geograp
Segment Information and Geographical Data | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Geographical Data | 11. Segment Information and Geographical Data The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and Digital AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software license sales. The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Segment profit consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated costs include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment, depreciation and amortization expense, interest expense, non cash compensation expense and any non recurring transactions. Segment information related to assets has been omitted as the Chief Operating Decision Maker does not receive discrete financial information regarding assets at the segment level. The tables below set forth information about the Company’s operating segments for the second quarter and six months ended June 30, 2023, and July 1, 2022, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Global S&BT: Total revenue* $ 43,632 $ 44,530 $ 85,967 $ 87,167 Segment profit 13,102 16,269 26,909 31,910 Oracle Solutions: Total revenue* $ 20,775 $ 19,971 $ 37,943 $ 41,483 Segment profit 5,886 4,301 8,935 8,834 SAP Solutions: Total revenue* $ 12,695 $ 11,427 $ 24,421 $ 22,942 Segment profit 2,990 2,977 5,624 5,391 Total Company: Total revenue* $ 77,102 $ 75,928 $ 148,331 $ 151,592 Total segment profit $ 21,978 $ 23,547 $ 41,468 $ 46,135 Items not allocated to segment level: Corporate general and administrative expenses** 5,610 5,935 10,571 11,569 Non-cash stock based compensation expense 2,772 2,718 5,219 5,317 Depreciation and amortization 806 838 1,636 1,784 Restructuring and asset impairment settlement - ( 125 ) - ( 125 ) Interest expense, net 921 28 1,780 56 Income from continuing operations before taxes $ 11,869 $ 14,153 $ 22,262 $ 27,534 *Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin. **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, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude non cash compensation expense and one-time, non-recurring expenses and benefits. 11. Segment Information and Geographical Data (continued) The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 United States $ 65,272 $ 66,717 $ 126,622 $ 131,110 Europe 7,673 5,103 13,734 12,640 Other (Australia, Canada, India and Uruguay) 4,157 4,108 7,975 7,842 Total revenue $ 77,102 $ 75,928 $ 148,331 $ 151,592 Long-lived assets are attributable to the following geographic areas (in thousands): June 30, December 30, 2023 2022 Long-lived assets: United States $ 91,327 $ 89,705 Europe 14,349 13,640 Other (Australia, Canada, India and Uruguay) 417 482 Total long-lived assets $ 106,093 $ 103,827 As of June 30, 2023 and December 30, 2022 , foreign assets included $ 14.2 million and $ 13.5 million, respectively, of goodwill related to prior acquisitions. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of The Hackett Group , Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 30, 2022, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 3, 2023. The consolidated results of operations for the quarter and six months ended June 30, 2023 , are not necessarily indicative of the results to be expected for any future period or for the full fiscal year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Segment Reporting | Segment Reporting Segments are defined as components of a company that engage in business activities from which they earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company assesses its operating segments under the management approach in accordance with ASC 280, Segment Reporting (ASC 280), and has determined that it has three operating segments: Global S&BT, Oracle Solutions and SAP Solutions which are also its reportable segments. See Note 11 “Segment Information and Geographic Data” for detailed segment information. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, management made the determination to present three operating segments, three reportable segments and three reporting units as follows: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and Digital AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned. The goodwill has been allocated to the reporting unit based on the reporting unit's relative fair value. The carrying amount of goodwill by reporting unit is as follows (in thousands): Foreign December 30, Additions/ Currency June 30, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 646 $ 57,456 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 646 $ 84,148 |
Revenue Recognition | Revenue Recognition The Company generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support and maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America ("SAP") software license or maintenance agreements provided by SAP. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and maintenance which is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. The Company also provides software maintenance on other ERP systems, primarily Oracle. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. 1. Basis of Presentation and General Information (continued) The payment terms and conditions in the Company’s customer contracts vary. The agreements entered into in connection with a project, whether time and materials-based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. Differences between the timing of billings and the recognition of revenue are recognized as either contract assets or contract liabilities in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients is recorded as contract assets and is included within accounts receivable and contract assets. Services not yet performed, however billed to the client and uncollected at period end, are recorded as contract assets and are included within accounts receivable and contract assets. Client prepayments are classified as contract liabilities and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances. During the quarter and six months ended June 30, 2023, the Company recognized $ 2.8 million and $ 10.6 million, respectively, of revenue as a result of changes in the contract liability balance, as compared to $ 3.4 million and $ 10.3 million, respectively, for the quarter and six months ended July 1, 2022. Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, the Company disaggregates revenue as follows for the quarters and six months ended June 30, 2023 and July 1, 2022 (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Global S&BT: North America Consulting $ 36,444 $ 38,698 $ 72,611 $ 73,783 International Consulting 7,188 5,832 13,356 13,384 Total Global S&BT $ 43,632 $ 44,530 $ 85,967 $ 87,167 Oracle Solutions: Consulting and software support and maintenance $ 20,775 $ 19,971 $ 37,943 $ 41,483 Total Oracle Solutions $ 20,775 $ 19,971 $ 37,943 $ 41,483 SAP Solutions: Consulting and software support and maintenance $ 11,054 $ 10,413 $ 21,767 $ 20,762 Software license sales 1,641 1,014 2,654 2,180 Total SAP Solutions $ 12,695 $ 11,427 $ 24,421 $ 22,942 Total segment revenue $ 77,102 $ 75,928 $ 148,331 $ 151,592 The total revenue from the Global S&BT segment, the Oracle Solutions segment and the SAP Solutions segment's consulting and software support and maintenance services is all recognized over time. The software license sales total revenue included in the SAP Solutions segment is recognized at a point in time. Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 30, 2022 and December 31, 2021, the Company had $ 1.5 million and $ 1.6 million, respectively, of deferred commissions, of whic h $ 0.4 million and $ 0.6 million was amortized during the quarter and six months ended June 30, 2023, respectively, and $ 0.4 million and $ 0.7 million for the same periods in 2022, respectively. No impairment loss was recognized relating to the capitalization of deferred commission. 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. |
Fair Value | Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable, accrued expenses and other liabilities and contract liabilities. As of June 30, 2023 and December 30, 2022, the carrying amount of each financial instrument approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments. The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates. |
Impact of Macroeconomic Conditions on the Business | Impact of Macroeconomic Conditions on the Business The level of revenue the Company achieves is based on its ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. Any deterioration in the current macroeconomic environment or economic downturn as a result of weak or uncertain economic conditions due to inflation, high interest rates, national or geopolitical events or other factors impacting economic activity or business confidence could adversely affect the Company's clients' financial condition or outlook which may reduce clients' demand for the Company's services. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Carrying Amount of Goodwill | The carrying amount of goodwill by reporting unit is as follows (in thousands): Foreign December 30, Additions/ Currency June 30, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 646 $ 57,456 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 646 $ 84,148 |
Summary of Disaggregation of Total Revenue | Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, the Company disaggregates revenue as follows for the quarters and six months ended June 30, 2023 and July 1, 2022 (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Global S&BT: North America Consulting $ 36,444 $ 38,698 $ 72,611 $ 73,783 International Consulting 7,188 5,832 13,356 13,384 Total Global S&BT $ 43,632 $ 44,530 $ 85,967 $ 87,167 Oracle Solutions: Consulting and software support and maintenance $ 20,775 $ 19,971 $ 37,943 $ 41,483 Total Oracle Solutions $ 20,775 $ 19,971 $ 37,943 $ 41,483 SAP Solutions: Consulting and software support and maintenance $ 11,054 $ 10,413 $ 21,767 $ 20,762 Software license sales 1,641 1,014 2,654 2,180 Total SAP Solutions $ 12,695 $ 11,427 $ 24,421 $ 22,942 Total segment revenue $ 77,102 $ 75,928 $ 148,331 $ 151,592 The total revenue from the Global S&BT segment, the Oracle Solutions segment and the SAP Solutions segment's consulting and software support and maintenance services is all recognized over time. The software license sales total revenue included in the SAP Solutions segment is recognized at a point in time. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted Average Shares | The following table reconciles basic and dilutive weighted average common shares: Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Basic weighted average common shares outstanding 27,191,648 31,652,413 27,109,054 31,550,911 Effect of dilutive securities: Unvested restricted stock units and common stock subject 355,999 566,969 299,078 468,500 Common stock issuable upon the exercise of stock options — 1,656 — 12,889 Dilutive weighted average common shares outstanding 27,547,647 32,221,038 27,408,132 32,032,300 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables, Net, Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | Accounts receivable and contract assets, net, consisted of the following (in thousands): June 30, December 30, 2023 2022 Accounts receivable $ 37,934 $ 28,913 Contract assets 20,991 20,319 Allowance for doubtful accounts ( 1,128 ) ( 856 ) Accounts receivable and contract assets, net $ 57,797 $ 48,376 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): June 30, December 30, 2023 2022 Accrued compensation and benefits $ 11,530 $ 9,320 Accrued bonuses 2,658 12,171 Accrued dividend payable 2,991 2,997 Restructuring liability 167 106 Accrued sales, use, franchise and VAT tax 2,065 2,572 Non-cash stock based compensation accrual 114 1,241 Other accrued expenses 2,817 2,546 Total accrued expenses and other liabilities $ 22,342 $ 30,953 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows for the six months ended June 30, 2023 (in thousands): Operating lease cost $ 560 Total net lease costs $ 560 |
Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum lease payments under non-cancellable operating leases as of June 30, 2023, were as follows (in thousands): 2023 (excluding the six months ended June 30, 2023) $ 722 2024 985 2025 260 2026 222 Thereafter 365 Total lease payments 2,554 Less imputed interest ( 177 ) Total $ 2,377 |
Segment Information and Geogr_2
Segment Information and Geographical Data (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Geographical Data | The tables below set forth information about the Company’s operating segments for the second quarter and six months ended June 30, 2023, and July 1, 2022, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 Global S&BT: Total revenue* $ 43,632 $ 44,530 $ 85,967 $ 87,167 Segment profit 13,102 16,269 26,909 31,910 Oracle Solutions: Total revenue* $ 20,775 $ 19,971 $ 37,943 $ 41,483 Segment profit 5,886 4,301 8,935 8,834 SAP Solutions: Total revenue* $ 12,695 $ 11,427 $ 24,421 $ 22,942 Segment profit 2,990 2,977 5,624 5,391 Total Company: Total revenue* $ 77,102 $ 75,928 $ 148,331 $ 151,592 Total segment profit $ 21,978 $ 23,547 $ 41,468 $ 46,135 Items not allocated to segment level: Corporate general and administrative expenses** 5,610 5,935 10,571 11,569 Non-cash stock based compensation expense 2,772 2,718 5,219 5,317 Depreciation and amortization 806 838 1,636 1,784 Restructuring and asset impairment settlement - ( 125 ) - ( 125 ) Interest expense, net 921 28 1,780 56 Income from continuing operations before taxes $ 11,869 $ 14,153 $ 22,262 $ 27,534 *Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin. **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, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude non cash compensation expense and one-time, non-recurring expenses and benefits. |
Geographic Revenue before Reimbursements | The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands): Quarter Ended Six Months Ended June 30, July 1, June 30, July 1, 2023 2022 2023 2022 United States $ 65,272 $ 66,717 $ 126,622 $ 131,110 Europe 7,673 5,103 13,734 12,640 Other (Australia, Canada, India and Uruguay) 4,157 4,108 7,975 7,842 Total revenue $ 77,102 $ 75,928 $ 148,331 $ 151,592 |
Long-Lived Assets Attributable To Geographic Areas | Long-lived assets are attributable to the following geographic areas (in thousands): June 30, December 30, 2023 2022 Long-lived assets: United States $ 91,327 $ 89,705 Europe 14,349 13,640 Other (Australia, Canada, India and Uruguay) 417 482 Total long-lived assets $ 106,093 $ 103,827 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jul. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) Segment | Jul. 01, 2022 USD ($) | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Basis Of Presentation And General Information [Line Items] | ||||||
Number of operating segments | Segment | 3 | |||||
Number of reportable segments | Segment | 3 | |||||
Number of reporting units | Segment | 3 | |||||
Revenue recognized as a result of change in contract liability | $ 2,800,000 | $ 3,400,000 | $ 10,600,000 | $ 10,300,000 | ||
Deferred commissions | $ 1,500,000 | $ 1,600,000 | ||||
Commissions expense | 400,000 | 400,000 | 600,000 | 700,000 | ||
Impairment loss recognized to capitalization of deferred commission | 0 | 0 | 0 | 0 | ||
Segment revenue | $ 77,102,000 | $ 75,928,000 | $ 148,331,000 | $ 151,592,000 | ||
Minimum [Member] | ||||||
Basis Of Presentation And General Information [Line Items] | ||||||
Business relationship agreement period | 6 months | |||||
Maximum [Member] | ||||||
Basis Of Presentation And General Information [Line Items] | ||||||
Business relationship agreement period | 12 months | |||||
Customer contract period | 12 months |
Basis of Presentation and Gen_5
Basis of Presentation and General Information (Summary of Carrying Amount of Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 83,502 |
Foreign Currency Translation | 646 |
Goodwill, Ending Balance | 84,148 |
Global S&BT [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 56,810 |
Foreign Currency Translation | 646 |
Goodwill, Ending Balance | 57,456 |
Oracle Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 16,699 |
Goodwill, Ending Balance | 16,699 |
SAP Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 9,993 |
Goodwill, Ending Balance | $ 9,993 |
Basis of Presentation and Gen_6
Basis of Presentation and General Information (Summary of Disaggregation of Total Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | $ 77,102 | $ 75,928 | $ 148,331 | $ 151,592 |
Global S&BT [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 43,632 | 44,530 | 85,967 | 87,167 |
Global S&BT [Member] | Consulting [Member] | North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 36,444 | 38,698 | 72,611 | 73,783 |
Global S&BT [Member] | Consulting [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 7,188 | 5,832 | 13,356 | 13,384 |
Oracle Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 20,775 | 19,971 | 37,943 | 41,483 |
Oracle Solutions [Member] | Consulting and Software Support and Maintenance [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 20,775 | 19,971 | 37,943 | 41,483 |
SAP Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 12,695 | 11,427 | 24,421 | 22,942 |
SAP Solutions [Member] | Consulting and Software Support and Maintenance [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | 11,054 | 10,413 | 21,767 | 20,762 |
SAP Solutions [Member] | Software License Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Segment revenue | $ 1,641 | $ 1,014 | $ 2,654 | $ 2,180 |
Net Income Per Common Share (Re
Net Income Per Common Share (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 27,191,648 | 31,652,413 | 27,109,054 | 31,550,911 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees | 355,999 | 566,969 | 299,078 | 468,500 |
Common stock issuable upon the exercise of stock options and SARs | 1,656 | 12,889 | ||
Dilutive weighted average common shares outstanding | 27,547,647 | 32,221,038 | 27,408,132 | 32,032,300 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive common share equivalents | 5 | 3 | 3 | 2 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Receivables, Net, Current [Abstract] | ||
Accounts receivable | $ 37,934 | $ 28,913 |
Contract assets | 20,991 | 20,319 |
Allowance for doubtful accounts | (1,128) | (856) |
Accounts receivable and contract assets, net | $ 57,797 | $ 48,376 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued compensation and benefits | $ 11,530 | $ 9,320 |
Accrued bonuses | 2,658 | 12,171 |
Accrued dividend payable | 2,991 | 2,997 |
Restructuring liability | 167 | 106 |
Accrued sales, use, franchise and VAT tax | 2,065 | 2,572 |
Non-cash stock based compensation accrual | 114 | 1,241 |
Other accrued expenses | 2,817 | 2,546 |
Total accrued expenses and other liabilities | $ 22,342 | $ 30,953 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Activity in Restructuring Expense Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 01, 2022 | Jul. 01, 2022 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring settlement | $ 125 | $ 125 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 2 years 10 months 24 days | 2 years 10 months 24 days |
Weighted average discount rate | 4% | 4% |
Operating lease payments | $ 0.3 | $ 0.6 |
Lessee, operating lease not yet commenced description | As of June 30, 2023, the Company does not have any additional operating leases that have not yet commenced | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases terms | 1 year | 1 year |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases terms | 4 years | 4 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 560 |
Total net lease costs | $ 560 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancellable Operating Leases) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (excluding the six months ended June 30, 2023) | $ 722 |
2024 | 985 |
2025 | 260 |
2026 | 222 |
Thereafter | 365 |
Total lease payments | 2,554 |
Less imputed interest | (177) |
Total | $ 2,377 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 07, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 30, 2022 | |
Line of Credit Facility [Line Items] | |||||
Incremental debt issuance costs | $ 13,000 | $ 10,000 | |||
Revolving line of credit facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity under credit facility | $ 100,000,000 | ||||
Maturity date | Nov. 07, 2027 | ||||
Frequency of interest payments | Interest payments are made monthly | ||||
Commitment fees percentage | 0.125% | ||||
Additional borrowing capacity | $ 55,000,000 | ||||
Remaining debt issuance cost to be amortized | $ 300,000 | ||||
Debt balance | $ 53,000,000 | 53,000,000 | $ 60,000,000 | ||
Amount drawn on loan | 300,000 | $ 300,000 | |||
Payment of credit | $ 5,000,000 | $ 7,000,000 | |||
Revolving line of credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Margin percentage base rate | 1.50% | ||||
Revolving line of credit facility [Member] | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Margin percentage base rate | 0.75% |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | shares | 7,886 | 589,443 |
Weighted average grant-date fair value | $ / shares | $ 18.98 | $ 21.4 |
Shares outstanding | shares | 1,254,301 | 1,254,301 |
Nonvested weighted average grant-date fair value | $ / shares | $ 19.74 | $ 19.74 |
Compensation expense | $ | $ 17.6 | $ 17.6 |
Weighted average period | 2 years 4 months 24 days | |
Common Stock Subject to Vesting Requirements [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding | shares | 1,318 | 1,318 |
Nonvested weighted average grant-date fair value | $ / shares | $ 16.17 | $ 16.17 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jul. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) shares | Mar. 31, 2023 USD ($) | Jul. 01, 2022 USD ($) shares | Apr. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jul. 01, 2022 USD ($) $ / shares shares | Dec. 30, 2022 USD ($) $ / shares | Jul. 01, 2023 | Jul. 30, 2002 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Total cost | $ 23 | $ 711 | $ 635 | |||||||
Amount available under repurchase plan | 14,000 | $ 14,000 | ||||||||
Stock repurchase authorized | $ 5,000 | |||||||||
Stock repurchase additional authorized amount | $ 287,200 | $ 120,000 | ||||||||
Cumulative purchases | 273,200 | 273,200 | ||||||||
Dividend payment | $ 2,991 | $ 2,990 | $ 3,480 | $ 3,474 | $ 6,000 | |||||
Dividends payable, date to be paid, year and month | 2023-07 | 2023-04 | 2023-07 | |||||||
Subsequent Event [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividends payable, date declared, year | 2023 | |||||||||
Dividends payable, date to be paid, year and month | 2023-10 | |||||||||
Minimum [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividend declared | $ / shares | $ 0.40 | |||||||||
Maximum [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividend declared | $ / shares | 0.44 | |||||||||
Share Repurchase Plan [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of common stock | shares | 0 | 0 | 37,000 | 31,000 | ||||||
Total cost | $ 700 | $ 600 | ||||||||
Share Purchase Plan [member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase price per share | $ / shares | $ 23.72 | |||||||||
Total cost | $ 116,000 | |||||||||
Tender Offer | $ 4,900 | |||||||||
Common stock issued and outstanding | 0.15 | |||||||||
Credit facility and cash on hand | $ 60,000 | |||||||||
Tax Withholding [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Shares withheld and not issued | shares | 6,000 | 4,000 | 168,000 | 130,000 | ||||||
Cost of shares withheld and not issued | $ 100 | $ 76 | $ 3,600 | $ 2,500 | ||||||
Director [Member] | Share Repurchase Plan [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase price per share | $ / shares | $ 18.96 | $ 20.5 |
Transactions with Related Par_2
Transactions with Related Parties (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2023 | Apr. 01, 2022 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Total cost | $ 23 | $ 711 | $ 635 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 37 | |||
Total cost | $ 700 | |||
Purchase price per share | $ 18.96 |
Segment Information and Geogr_3
Segment Information and Geographical Data (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) Segment | Dec. 30, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | 3 | |
Number of reportable segments | 3 | |
Goodwill included in foreign assets | $ | $ 14.2 | $ 13.5 |
Segment Information and Geogr_4
Segment Information and Geographical Data (Segment Information and Geographical Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 77,102 | $ 75,928 | $ 148,331 | $ 151,592 |
Segment profit | 21,978 | 23,547 | 41,468 | 46,135 |
Corporate general and administrative expenses | 5,610 | 5,935 | 10,571 | 11,569 |
Non-cash stock based compensation expense | 2,772 | 2,718 | 5,219 | 5,317 |
Depreciation and amortization | 806 | 838 | 1,636 | 1,784 |
Restructuring and asset impairment settlement | (125) | (125) | ||
Interest expense, net | 921 | 28 | 1,780 | 56 |
Income from operations before income taxes | 11,869 | 14,153 | 22,262 | 27,534 |
Global S&BT [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 43,632 | 44,530 | 85,967 | 87,167 |
Segment profit | 13,102 | 16,269 | 26,909 | 31,910 |
Oracle Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 20,775 | 19,971 | 37,943 | 41,483 |
Segment profit | 5,886 | 4,301 | 8,935 | 8,834 |
SAP Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 12,695 | 11,427 | 24,421 | 22,942 |
Segment profit | $ 2,990 | $ 2,977 | $ 5,624 | $ 5,391 |
Segment Information and Geogr_5
Segment Information and Geographical Data (Geographic Revenue before Reimbursements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 77,102 | $ 75,928 | $ 148,331 | $ 151,592 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 65,272 | 66,717 | 126,622 | 131,110 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 7,673 | 5,103 | 13,734 | 12,640 |
Other (Australia, Canada, India and Uruguay) [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 4,157 | $ 4,108 | $ 7,975 | $ 7,842 |
Segment Information and Geogr_6
Segment Information and Geographical Data (Long-Lived Assets Attributable To Geographic Areas) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 106,093 | $ 103,827 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 91,327 | 89,705 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 14,349 | 13,640 |
Other (Australia, Canada, India and Uruguay) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 417 | $ 482 |