Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Trading Symbol | HCKT | ||
Entity Registrant Name | Hackett Group, Inc. | ||
Entity Central Index Key | 0001057379 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2023 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 437,819,579 | ||
Entity Common Stock, Shares Outstanding | 27,597,191 | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 333-48123 | ||
Entity Tax Identification Number | 65-0750100 | ||
Entity Address, Address Line One | 1001 Brickell Bay Drive | ||
Entity Address, Address Line Two | Suite 3000 | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33131 | ||
City Area Code | 305 | ||
Local Phone Number | 375-8005 | ||
Entity Incorporation, State or Country Code | FL | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Coral Gables, Florida | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference certain portions of the registrant’s proxy statement for its 2023 Annual Meeting of Shareholders to be filed with the Commission not later than 120 days after the end of the fiscal year covered by this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Current assets: | ||
Cash | $ 20,957 | $ 30,255 |
Accounts receivable and contract assets, net of allowance of $1,072 and $856 at December 29, 2023 and December 30, 2022, respectively | 52,113 | 48,376 |
Prepaid expenses and other current assets | 2,368 | 2,535 |
Total current assets | 75,438 | 81,166 |
Property and equipment, net | 20,044 | 19,359 |
Other assets | 285 | 268 |
Goodwill | 84,242 | 83,502 |
Operating lease right-of-use assets | 1,419 | 698 |
Total assets | 181,428 | 184,993 |
Current liabilities: | ||
Accounts payable | 7,557 | 8,741 |
Accrued expenses and other liabilities | 26,801 | 30,953 |
Contract liabilities | 12,087 | 13,278 |
Income tax payable | 2,360 | 5,759 |
Operating lease liabilities | 1,083 | 870 |
Total current liabilities | 49,888 | 59,601 |
Deferred tax liability, net | 8,118 | 6,877 |
Long term debt, net | 32,711 | 59,653 |
Operating lease liabilities | 631 | 584 |
Total liabilities | 91,348 | 126,715 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value, 1,250,000 shares authorized, none issued and outstanding | ||
Common stock, $.001 par value, 125,000,000 shares authorized; 60,581,418 and 60,147,720 shares issued at December 29, 2023 and December 30, 2022, respectively | 61 | 60 |
Additional paid-in capital | 317,034 | 308,325 |
Treasury stock, at cost, 33,314,926 and 33,277,459 shares at December 29, 2023 and December 30, 2022, respectively | (274,600) | (273,866) |
Retained earnings | 60,820 | 38,640 |
Accumulated other comprehensive loss | (13,235) | (14,881) |
Total shareholders' equity | 90,080 | 58,278 |
Total liabilities and shareholders' equity | $ 181,428 | $ 184,993 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 1,072 | $ 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 | 60,581,418 | 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 | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 296,590 | $ 293,742 | $ 278,809 |
Cost of service: | |||
Total cost of service | 180,208 | 178,166 | 173,146 |
Selling, general and administrative costs (includes $4,486, $4,066 and $3,356 of stock compensation expense in 2023, 2022 and 2021, respectively) | 65,942 | 60,979 | 59,187 |
Restructuring and asset impairment settlement | (651) | ||
Legal settlement and related costs | 1,178 | ||
Total costs and operating expenses | 247,328 | 238,494 | 232,333 |
Operating income | 49,262 | 55,248 | 46,476 |
Other expense, net: | |||
Interest expense, net | (3,235) | (144) | (95) |
Income from continuing operations before income taxes | 46,027 | 55,104 | 46,381 |
Income tax expense | 11,876 | 14,302 | 4,829 |
Income from continuing operations | 34,151 | 40,802 | 41,552 |
Loss from discontinued operations (net of taxes) | (7) | ||
Net income | $ 34,151 | $ 40,802 | $ 41,545 |
Basic net income per common share: | |||
Income per common share from continuing operations | $ 1.26 | $ 1.3 | $ 1.38 |
Loss per common share from discontinued operations | 0 | ||
Basic net income per common share | 1.26 | 1.3 | 1.38 |
Diluted net income per common share: | |||
Income per common share from continuing operations | 1.24 | 1.28 | 1.26 |
Loss per common share from discontinued operations | 0 | ||
Diluted net income per common share | $ 1.24 | $ 1.28 | $ 1.26 |
Weighted average common shares outstanding | 27,170,039 | 31,399,813 | 30,021,097 |
Weighted average common and common equivalent shares outstanding | 27,636,613 | 31,961,741 | 32,882,608 |
Revenue Before Reimbursements [Member] | |||
Revenue: | |||
Total revenue | $ 291,273 | $ 289,688 | $ 277,583 |
Reimbursements [Member] | |||
Revenue: | |||
Total revenue | 5,317 | 4,054 | 1,226 |
Cost of service: | |||
Total cost of service | 5,317 | 4,054 | 1,226 |
Cost Before Reimbursements [Member] | |||
Cost of service: | |||
Total cost of service | $ 174,891 | $ 174,112 | $ 171,920 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share based compensation | $ 10,724 | $ 10,267 | $ 10,122 | |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share based compensation | $ 6,766 | 6,238 | 6,201 | |
Selling General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share based compensation | $ 4,486 | $ 4,066 | $ 3,356 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 34,151 | $ 40,802 | $ 41,545 |
Foreign currency translation adjustment, net of income taxes | 1,646 | (4,408) | (905) |
Total comprehensive income | $ 35,797 | $ 36,394 | $ 40,640 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jan. 01, 2021 | $ 140,887 | $ 58 | $ 312,039 | $ (144,254) | $ (17,388) | $ (9,568) |
Balance, Shares at Jan. 01, 2021 | 57,596 | (27,609) | ||||
Issuance of common stock, net | (20,810) | $ 2 | (20,812) | |||
Issuance of common stock, net, Shares | 2,035 | |||||
Treasury stock purchased | (13,040) | $ (13,040) | ||||
Treasury stock purchased, Shares | (749) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 9,061 | 9,061 | ||||
Dividends declared | (12,885) | (12,885) | ||||
Net income | 41,545 | 41,545 | ||||
Foreign currency translation | (905) | (905) | ||||
Balance at Dec. 31, 2021 | 143,853 | $ 60 | 300,288 | $ (157,294) | 11,272 | (10,473) |
Ending Balance, Shares at Dec. 31, 2021 | 59,631 | (28,358) | ||||
Issuance of common stock, net | (2,347) | (2,347) | ||||
Issuance of common stock, net, Shares | 517 | |||||
Treasury stock purchased | (116,572) | $ (116,572) | ||||
Treasury stock purchased, Shares | (4,919) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 10,384 | 10,384 | ||||
Dividends declared | (13,434) | (13,434) | ||||
Net income | 40,802 | 40,802 | ||||
Foreign currency translation | (4,408) | (4,408) | ||||
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) | ||||
Issuance of common stock, net | (2,847) | $ 1 | (2,848) | |||
Issuance of common stock, net, Shares | 433 | |||||
Treasury stock purchased | (734) | $ (734) | ||||
Treasury stock purchased, Shares | (38) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 11,557 | 11,557 | ||||
Dividends declared | (11,971) | (11,971) | ||||
Net income | 34,151 | 34,151 | ||||
Foreign currency translation | 1,646 | 1,646 | ||||
Balance at Dec. 29, 2023 | $ 90,080 | $ 61 | $ 317,034 | $ (274,600) | $ 60,820 | $ (13,235) |
Ending Balance, Shares at Dec. 29, 2023 | 60,581 | (33,315) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 34,151 | $ 40,802 | $ 41,545 |
Plus loss from discontinued operations, net of taxes | 7 | ||
Net income from continuing operations | 34,151 | 40,802 | 41,552 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations: | |||
Depreciation expense | 3,421 | 3,283 | 3,361 |
Amortization expense | 154 | 1,016 | |
Amortization of debt issuance costs | 72 | 82 | 45 |
Provision for doubtful accounts | 27 | 91 | 374 |
Loss (gain) on foreign currency transactions | 404 | (1,353) | (130) |
Non-cash stock compensation expense | 10,724 | 10,267 | 10,122 |
Deferred income tax (benefit) expense | 1,365 | (480) | 1,469 |
Changes in assets and liabilities: | |||
(Increase) decrease in accounts receivable and contract assets | (3,831) | 2,603 | (18,241) |
(Increase) decrease in prepaid expenses and other assets | (489) | 4,414 | (2,153) |
(Decrease) increase in accounts payable | (1,184) | 1,063 | 1,580 |
(Decrease) increase in accrued expenses and other liabilities | (2,668) | (6,443) | 3,554 |
(Decrease) increase in contract liabilities | (1,191) | (1,338) | 5,851 |
(Decrease) increase in income taxes payable | (3,400) | 5,759 | (2,040) |
Net cash provided by operating activities from continuing operations | 37,401 | 58,904 | 46,360 |
Net cash used in operating activities from discontinued operations | (7) | ||
Net cash provided by operating activities | 37,401 | 58,904 | 46,353 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (4,101) | (4,656) | (3,242) |
Net cash used in investing activities | (4,101) | (4,656) | (3,242) |
Cash flows from financing activities: | |||
Debt proceeds | 5,000 | 60,000 | |
Repayments of debt | (32,000) | ||
Debt issuance costs | (14) | (381) | (4) |
Dividends paid | (11,972) | (10,437) | (12,885) |
Proceeds from issuance of common stock | 937 | 876 | 755 |
Taxes paid to satisfy employee withholding tax obligations | (3,782) | (3,225) | (21,566) |
Repurchases of common stock | (734) | (116,569) | (13,039) |
Net cash used in financing activities | (42,565) | (69,736) | (46,739) |
Effect of exchange rate on cash | (33) | (51) | (33) |
Net decrease in cash | (9,298) | (15,539) | (3,661) |
Cash at beginning of year | 30,255 | 45,794 | 49,455 |
Cash at end of year | 20,957 | 30,255 | 45,794 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 13,257 | 4,550 | 9,103 |
Cash paid for interest | 3,470 | 78 | $ 57 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividend declared during the year and paid the following year | $ 2,997 | $ 2,997 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and General Information | 1. Basis of Presentation and General Information Nature of Business Hackett (NASDAQ: HCKT) is a global IP-based executive advisory, strategic consulting and digital transformation firm. The Hackett Group provides dedicated expertise in Generative Artificial Intelligence ("Gen AI"), strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings. The firm recently launched our AI XPLR offering which helps define an organizations’ Gen AI enablement opportunities. Using AI XPLR, our artificial intelligence ("AI") assessment platform, our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and seek to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey. The Hackett Group has completed over 26,600 benchmarking and performance studies with major organizations. These studies are executed utilizing our Quantum Leap® platform which drives our Digital Transformation Platform (“DTP” or “Hackett DTP”). This includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enables our clients and partners to achieve digital world-class performance. Our expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97 % of the Dow Jones Industrials, 89 % of the Fortune 100, 70 % of the DAX 40 and 55 % of the FTSE 100, which are delivered through our Hackett Connect, Quantum Leap ® and DTP platforms. Basis of Presentation and Consolidation The accompanying consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. The Company consolidates the assets, liabilities, and results of operations of its entities. Intercompany transactions and balances are eliminated upon consolidation. Fiscal Year The Company’s fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2023, 2022, and 2021 ended on December 29, 2023, December 30, 2022, and December 31, 2021 , respectively, each consisted of a 52-week period. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. Cash The Company considers depository accounts and all short-term investments with maturities of three months or less to be cash equivalents to the extent that it places its temporary cash investments with high credit quality financial institutions. At times, such balances may be in excess of the F.D.I.C. insurance limits. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its clients not making required payments. Management makes estimates of the collectability of accounts receivable and critically reviews accounts receivable and analyzes historical bad debts, past-due accounts, client credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of the Company’s clients were to deteriorate, resulting in their inability to make payments, additional allowances may be required. Dividends In December 2012, the Company’s Board of Directors approved the initiation of an annual cash dividend in the amount of $ 0.10 per share. The Company’s Board of Directors has gradually increased the dividend over the years to $ 0.44 per share. During 2023, the Company declared four quarterly dividend payments of $ 0.11 per share each, the fourth of which was paid in January 2024. The dividend policy is reviewed periodically by the Board of Directors and could change. The amount and timing of all dividend payments 1. Basis of Presentation and General Information (continued) is subject to the discretion of the Board of Directors and will depend upon business conditions, contractual obligations, legal restrictions, results of operations, financial conditions and other factors. Property and Equipment, Net Property and equipment are recorded at cost. Depreciation is calculated to amortize the depreciable assets over their estimated useful lives using the straight-line method and commences when the asset is placed in service. The range of estimated useful lives is three to ten years . Leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements are capitalized. The carrying amount of assets sold or retired and related accumulated depreciation are removed from the balance sheet in the year of disposal and any resulting gains or losses are included in the consolidated statements of operations. The Company capitalizes the costs of internal-use software, which generally includes hardware, software, and payroll-related costs for employees who are directly associated with, and who devote time, to the development of internal-use computer software. Long-Lived Assets (excluding Goodwill and Indefinite Lived Intangible Assets) Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Business Combinations For transactions that are considered business combinations, the purchased assets and assumed liabilities are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to refinement during the measurement period of up to one year after the closing date of an acquisition as information relative to closing date fair values become available. Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized, but rather are tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment. Finite-lived intangible assets are amortized over their useful lives. The excess cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. 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 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. With the new reporting unit structure, the goodwill previously assigned to Hackett Technology Solutions and The Hackett Group has now been allocated based on the reporting unit's relative fair value. The carrying amount and activity of goodwill by new reporting units are as follows (in thousands): Foreign December 30, Additions/ Currency December 29, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 740 $ 57,550 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 740 $ 84,242 1. Basis of Presentation and General Information (continued) Goodwill is tested at least annually for impairment at the reporting unit level utilizing the market approach. In assessing the recoverability of goodwill and intangible assets, the Company utilizes the market approach and makes estimates based on assumptions regarding various factors to determine if impairment tests are met. The market approach utilizes valuation multiples based on operating data from publicly traded companies within the same industry. Multiples derived from guideline companies provide an indication of how much a market participant would be willing to pay for a company. These multiples are then applied to the Company’s reporting units to arrive at an indication of value. This approach contains management’s judgment, using appropriate and customary assumptions available at the time. The Company performed its annual impairment test of goodwill in the fourth quarter of fiscal years 2023, 2022 and 2021 and determined that goodwill was not impaired. Finite lived intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years . All of the Company’s finite-lived intangible assets were fully amortized in 2022. 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. 1. Basis of Presentation and General Information (continued) 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 on-premise software, cloud software and maintenance contracts are in the form of SAP America ("SAP") software 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 sale for either on-premise software or cloud software or maintenance amount in the contract with the vendor. Revenue for the resale of software 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. 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 are recorded as contract assets. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within 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 12 months ended December 29, 2023, the Company recognized $ 12.7 million of revenue as a result of changes in the contract liability balance, as compared to $ 13.1 million for the twelve months ended December 30, 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 disaggregated revenue as follows for the years ended December 29, 2023, December 30, 2022 and December 31, 2021 (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Global S&BT: North America Consulting $ 144,960 $ 143,956 $ 122,607 International Consulting 26,967 25,704 23,617 Total Global S&BT $ 171,927 $ 169,660 $ 146,224 Oracle Solutions: Consulting and software support and maintenance $ 77,772 $ 76,320 $ 74,886 Total Oracle Solutions $ 77,772 $ 76,320 $ 74,886 SAP Solutions: Consulting and software support and maintenance $ 41,324 $ 40,729 $ 47,391 Software license sales 5,567 7,033 10,308 Total SAP Solutions $ 46,891 $ 47,762 $ 57,699 Total segment revenue $ 296,590 $ 293,742 $ 278,809 1. Basis of Presentation and General Information (continued) 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 is 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 29, 2023 and December 30, 2022, the Company had $ 1.7 million, and $ 1.5 million, respectively, of deferred commissions, of which $ 1.1 million was amortized during both the 12 months ended December 29, 2023 and December 30, 2022. 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. Stock Based Compensation The Company recognizes compensation expense for awards of equity instruments to employees based on the grant-date fair value of those awards, with limited exceptions, over the requisite service period. Restructuring Reserves Restructuring reserves reflect judgments and estimates of the Company’s ultimate costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, absorption period to sublease space and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting carrying values and tax bases of assets and liabilities and are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. Deferred income taxes also reflect the impact of certain state operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company utilized a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company reports penalties and tax-related interest expense as a component of income tax expense. 1. Basis of Presentation and General Information (continued) 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 regards to common stock subject to vesting requirements and restricted stock units issued to employees, the calculation includes only the vested portion of such stock. The potential issuance of common shares upon the exercise, conversion or vesting of unvested restricted stock units, common stock subject to vesting, stock options and stock appreciation right units ("SARs"), as calculated under the treasury stock method, may be dilutive. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding and will increase by the assumed conversion of other potentially dilutive securities during the period. The following table reconciles basic and diluted weighted average shares: Year Ended December 29, December 30, December 31, 2023 2022 2021 Basic weighted average common shares outstanding 27,170,039 31,399,813 30,021,097 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 466,574 555,483 529,535 Common stock issuable upon the exercise of stock options and SARs — 6,445 2,331,976 Dilutive weighted average common shares outstanding 27,636,613 31,961,741 32,882,608 Approximately 2 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for both of the years ended December 29, 2023 and December 30, 2022, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share. Concentration of Credit Risk The Company provides services primarily to Global 2000 companies and other sophisticated buyers of business consulting and information technology services. The Company performs ongoing credit evaluations of its major customers and maintains reserves for potential credit losse s. In 2023 one customer accounted for 6% of total revenue, in 2022 one customer accounted for 7% of total revenue, all of which was included in the Global S&BT segment, and in 2021 no customer accounted for more than 5% of total revenue. Management’s Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Other Comprehensive Income The Company reports its comprehensive income in accordance with FASB ASC Topic 220, Comprehensive Income, which establishes standards for reporting and presenting comprehensive income and its components in a full set of financial statements. Other comprehensive income consists of net income and currency translation adjustments. Segment Reporting Segments are defined as components of a company that engage in business activities from which they may 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 assessed 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 15 “Segment Information and Geographic Data” for detailed segment information. 1. Basis of Presentation and General Information (continued) Recent Accounting Pronouncements In November 2023, accounting guidance was issued that requires additional disclosures of reportable segment information. The guidance requires that public entities disclose, on an annual and interim basis (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit; at least one of the reported segment profit or loss measures should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements, (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and in deciding how to allocate resources, and (6) if a public entity has a single reportable segment to provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280. The amendments in this update do not change how operating segments are identified or aggregated nor how the quantitative thresholds are applied to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact the adoption of this accounting standard update will have on its footnote disclosures, however the Company does not believe this accounting standard update will have material impact on the Company’s financial position, results of operations and cash flows. Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current year presentation with no effect on net income or shareholder’s equity. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 2. Fair Value Measurement The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable, accrued expenses and other liabilities, contract liabilities and long-term debt. As of December 29, 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. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets, Net | 12 Months Ended |
Dec. 29, 2023 | |
Receivables, Net, Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | 3. Accounts Receivable and Contract Assets, Net Accounts receivable and contract assets, net, consists of the following (in thousands): December 29, December 30, 2023 2022 Accounts receivable $ 35,640 $ 28,913 Contract assets (unbilled revenue) 17,545 20,319 Allowance for doubtful accounts ( 1,072 ) ( 856 ) $ 52,113 $ 48,376 Accounts receivable as of December 29, 2023 and December 30, 2022, is net of uncollected advanced billings. Contract assets as of December 29, 2023 and December 30, 2022 includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, net December 29, December 30, 2023 2022 Equipment $ 2,346 $ 4,346 Software 33,444 29,594 Furniture and fixtures 18 18 35,808 33,958 Less accumulated depreciation ( 15,764 ) ( 14,599 ) $ 20,044 $ 19,359 Depreciation expense for the years ended December 29, 2023, December 30, 2022, and December 31, 2021 was $ 3.4 million, $ 3.3 million and $ 3.4 million, respectively, and is included in selling, general and administrative costs in the accompanying consolidated statements of operations. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 29, 2023 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Accrued Expenses and Other Liabilities | 5. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): December 29, December 30, 2023 2022 Accrued compensation and benefits $ 9,162 $ 9,320 Accrued bonuses 8,246 12,171 Dividend payable 2,997 2,997 Accrued sales, use, franchise and VAT tax 2,862 2,572 Non-cash stock compensation accrual 408 1,241 Other accrued expenses 3,126 2,652 Total accrued expenses and other liabilities $ 26,801 $ 30,953 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charge and Settlements | 12 Months Ended |
Dec. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charge and Settlements | 6. Restructuring and Asset Impairment Charge and Settlements During 2020, the Company recorded restructuring c harges of $ 10.5 million, of which $ 5.7 million was primarily related to the reduction of staff in the U.S. and Europe due to the impact of the pandemic and $ 4.8 million of which primarily related to real estate leases. In consideration of the pandemic and the changing nature of the Company’s use of office space for its workforce, the Company evaluated its existing office space utilization and made the decision to completely or partially abandon certain leased office spaces. As a result, the Company recorded restructuring charges of $ 4.8 million, primarily relating to the impairment of certain lease right-of-use assets, property, equipment and leasehold improvements and other real estate related costs. See Note 7 for further discussion. In 2022, the Company recorded the settlement of the restructuring charge and asset impairments of $ 0.7 million related to the settlement of lease right-of use assets. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 29, 2023 | |
Leases [Abstract] | |
Lease Commitments | 7. Lease Commitments 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 5 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 or clauses: 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 our lease liability nor our right-of use-asset. The weighted average remaining lease term is 2.8 years. The weighted average discount rate utilized is 4 %. The discount rates applied to each lease, reflects the Company’s estimated incremental borrowing rate. This includes an assessment of the Company’s credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an 7. Lease Commitments (continued) amount equal to the Company’s lease payments in a similar economic environment. For the twelve months ended December 29, 2023, the Company paid $ 1.4 million from operating cash flows for operating leases. The Company has operating lease agreements for its premises that expire on various dates through July 2028. Lease expense for the years ended December 29, 2023, December 30, 2022, and December 31, 2021 was $ 1.1 million, $ 1.2 million and $ 1.0 million, respectively. The components of lease expense during the fiscal years ended December 29, 2023, December 30, 2022, and December 31, 2021, all related to operating lease costs. Future minimum lease commitments under non-cancelable operating leases as of December 29, 2023 , are as follows (in thousands): Rental Payments 2024 $ 1,083 2025 260 2026 222 2027 228 2028 137 Total lease payments 1,930 Less imputed interest ( 107 ) Total $ 1,823 As of December 29, 2023, the Company does not have any additional operating leases that have not yet commenced that create significant rights and obligations for the Company. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Credit Facility | 8. Credit Facility On April 3, 2020, the Company amended its Credit agreement with Bank of America, N.A. to extend the maturity date to November 30, 2022 . The amendment also increased the interest payable on outstanding loans in respect to a revolving line of credit by an additional per annum rate of 0.50 % and provided for a LIBOR floor of 75 basis points. The borrowing capacity remained at $ 45.0 million until maturity and no draws were made. 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 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 December 29, 2023 , the applicable margin percentage was 1.50 % per annum for the BSBY rate, and 0.75 % per annum, in the case of base rate. As of December 29, 2023, the interest rate on the Company's outstanding debt was 6.9 %, utilizing the BSBY margin percentage. The interest rate of the commitment fee as of December 29, 2023 was 0.125 %. Interest payments are made on a monthly basis . The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage, adjusted fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of December 29, 2023, the Company was in compliance with all covenants. 8. Credit Facility (continued) The Company incurred $ 14 thousand and $ 0.4 million of incremental debt issuance costs in 2023 and 2022, respectively, as a result of the Credit Agreement. As of December 29, 2023, the Company had $ 0.3 million of debt issuance costs remaining which will be amortized over the remaining life of the Credit Facility. As of December 29, 2023, the Company had $ 33.0 million of outstanding debt, excluding $ 0.3 million of deferred debt costs, and as of December 30, 2022, the Company had $ 60.0 million of outstanding debt, excluding $ 0.3 million of deferred debt costs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company files federal income tax returns, as well as multiple state, local and foreign jurisdiction tax returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution on any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most probable outcome. The Company adjusts these reserves, as well as the related interest, in the light of changing facts and circumstances. The resolution of a matter would be recognized as an adjustment to the provision for income taxes and the effective tax rate in the period of resolution. The Company is no longer subject to examinations of its federal income tax returns by the Internal Revenue Service for years through 2019 and all significant state, local and foreign matters have been concluded for years through 2018. The components of income before income taxes from continuing operations are as follows (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Domestic $ 40,259 $ 48,020 $ 41,641 Foreign 5,768 7,084 4,740 Income from continuing operations before income $ 46,027 $ 55,104 $ 46,381 As a result of the tax deduction related to the exercise of the 2.9 million SARs in 2021, the Company had recorded an income tax benefit of $ 7.7 million, which resulted in a receivable balance of $ 3.4 million in prepaid expenses and other current assets on the consolidated balance sheet as of December 31, 2021. The components of income tax expense from continuing operations are as follows (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Current tax expense Federal $ 6,823 $ 9,782 $ 2,043 State 2,214 3,416 663 Foreign 1,474 1,584 654 10,511 14,782 3,360 Deferred tax expense (benefit) Federal 985 49 765 State 470 ( 99 ) 303 Foreign ( 90 ) ( 430 ) 401 1,365 ( 480 ) 1,469 Income tax expense from continuing operations $ 11,876 $ 14,302 $ 4,829 9. Income Taxes (continued) A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations is as follows: Year Ended December 29, December 30, December 31, 2023 2022 2021 U.S. statutory income tax expense rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax 4.6 4.8 1.6 Valuation reduction — ( 0.3 ) 0.1 Meals and entertainment 0.2 — — Foreign rate differential 0.3 0.1 0.3 Share based compensation ( 1.1 ) ( 1.0 ) ( 13.2 ) Foreign exchange loss 0.2 ( 0.2 ) ( 0.1 ) Other, net 0.6 1.6 0.7 Effective tax rate 25.8 % 26.0 % 10.4 % The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 29, December 30, 2023 2022 Deferred income tax assets: Allowance for doubtful accounts $ 281 $ 224 Net operating loss and tax credits carryforward 2,940 2,902 Accrued expenses and other liabilities 4,497 5,804 7,718 8,930 Valuation allowance ( 1,461 ) ( 1,463 ) 6,257 7,467 Deferred income tax liabilities: Depreciation ( 3,381 ) ( 3,847 ) Tax over book amortization on goodwill and intangibles ( 10,834 ) ( 10,316 ) Other items ( 160 ) ( 181 ) ( 14,375 ) ( 14,344 ) Net deferred income tax liability $ ( 8,118 ) $ ( 6,877 ) As of December 29, 2023 , the Company had $ 0.8 million of U.S. state net operating loss carryforwards. Additionally, as of December 29, 2023 , the Company had $ 8.4 million of foreign net operating loss carryforwards primarily from operations in the United Kingdom, Germany, France and Australia. A portion of the foreign net operating losses may be carried forward indefinitely. The liability method of accounting for deferred income taxes requires a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers evidence such as history of losses and general economic conditions. As of December 29, 2023 and December 30, 2022 the Company had a valuation allowance in both periods of $ 1.5 million to reduce deferred income tax assets, primarily related to foreign net operating loss carryforwards, to the amounts expected to be realized. The undistributed earnings in foreign subsidiaries as of December 29, 2023, was approximately $ 8.1 million. The Company has historically reinvested its foreign earnings abroad indefinitely and continues to reinvest future earnings abroad. Penalties and tax-related interest expense are reported as a component of income tax expense. For the years ended December 29, 2023, December 30, 2022, and December 31, 2021 the total amount of accrued income tax-related interest and penalties was $ 50 thousand, $ 192 thousand and $ 179 thousand, respectively. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. 9. Income Taxes (continued) The following table sets forth the detail and activity of the ASC 740 liability during the years ended December 29, 2023 and December 30, 2022 (in thousands): Year Ended December 29, December 30, 2023 2022 Beginning balance $ 450 $ 437 Additions based on tax positions 4 13 Reduction for prior year tax deductions ( 234 ) — Ending balance $ 220 $ 450 As of December 29, 2023 and December 30, 2022 the ASC 740-10, “Accounting for Uncertainty in Income Taxes”, liability of $ 0.2 million and $ 0.5 million, respectively, was classified as a current liability and included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months. The reversal of ASC 740-10 tax liabilities as of December 29, 2023 and December 30, 2022 would have a favorable impact on the effective tax rate in future period. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | 10. Stock Based Compensation Stock Plan Total share-based compensation included in net income for the years ended December 29, 2023, December 30, 2022, and December 31, 2021 is as follows: Year Ended December 29, December 30, December 31, 2023 2022 2021 Restricted stock units $ 10,714 $ 10,252 $ 9,716 Common stock subject to vesting requirements 10 15 406 $ 10,724 $ 10,267 $ 10,122 The number of shares available for future issuance under the Company's stock plans as of December 29, 2023 were 2.3 million. The Company issues new shares as they are required to be delivered under the plan. Stock Options and SARs The Company has granted stock options to employees and directors of the Company at exercise prices equal to the fair value of the stock at the date of grant. The options generally vested ratably over four years , based on continued employment, with a maximum term of ten years . The Company did no t have any stock options outstanding during 2023. Stock option activity under the Company’s stock option plans for the years ended December 30, 2022 and December 31, 2021, are summarized as follows: December 30, 2022 December 31, 2021 Option Shares Weighted Average Option Shares Weighted Average Outstanding at beginning of year 30,000 $ 4.00 180,000 $ 4.00 Exercised ( 30,000 ) 4.00 ( 150,000 ) 4.00 Outstanding at end of year — $ - 30,000 $ 4.00 Exercisable at end of year — $ - 30,000 $ 4.00 The intrinsic value of the options that were exercised in 2022 and 2021 was $ 0.6 million and $ 2.4 million, respectively. 10. Stock Based Compensation (continued) All of the Company's outstanding SARs were exercised in December 2021. As a result of the tax deduction related to the exercise of the 2.9 million SARs in 2021, the Company had recorded an income tax benefit of $ 7.7 million, which resulted in a receivable balance of $ 3.4 million in prepaid expenses and other current assets on the consolidated balance sheet as of December 31, 2021. The intrinsic value of the SARs that were exercised in 2021 was $ 46.1 million. There are no outstanding SARs as of December 29, 2023 and December 30, 2022 . Restricted Stock Units Under the Company stock plan, participants may be granted restricted stock units, each of which represents a conditional right to receive a common share in the future. The restricted stock units granted under this plan generally vest over one of the following vesting schedules: (1) a four -year period, with 50 % vesting on the second anniversary and 25 % of the shares vesting on the third and fourth anniversaries of the grant date, (2) a four -year period, with 25 % vesting on the first, second, third and fourth anniversary, (3) a three -year period with 33 % vesting on the first, second and third anniversary, or (4) a one-year period with 100 % vest on the first anniversary. Upon vesting, the restricted stock units will convert into an equivalent number of shares of common stock. The amount of expense relating to the restricted stock units is based on the closing market price of the Company’s common stock on the date of grant and is amortized on a straight-line basis over the applicable requisite service period. Restricted stock unit activity for the year ended December 29, 2023, was as follows: Number of Weighted Average Nonvested balance as of December 30, 2022 1,212,902 17.85 Granted 590,286 21.40 Vested ( 562,945 ) 17.34 Forfeited ( 35,461 ) 18.91 Nonvested balance as of December 29, 2023 1,204,782 $ 19.82 The Company recorded restricted stock units-based compensation expense of $ 10.7 million, $ 10.3 million and $ 9.7 million in 2023, 2022, and 2021 respectively, which is included in stock compensation expense, based on the vesting provisions of the restricted stock units and the fair value of the stock on the grant date. As of December 29, 2023, there was $ 12.1 million of total restricted stock unit compensation expense related to the unvested awards not yet recognized, which is expected to be recognized over a weighted average period of 2.1 years. The Company accounts for certain restricted stock units under liability accounting as a result of the fixed monetary amount and a variable number of shares that will be issued. Common Stock Subject to Vesting Requirements Shares of common stock subject to vesting requirements were issued to certain employees of a 2017 acquisition. These shares vested over a period of four years . Compensation expense was based on the fair value of the Company’s common stock at the time of grant and is recognized on a straight-line basis. As of December 30, 2022, the Company had 1,318 of these shares outstanding at a grant date fair value of $ 16.17 . These shares vested in the fourth quarter of 2023 and no shares of common stock subject to vesting requirements are outstanding as of December 29, 2023. The Company recorded compensation expense of $ 10 thousand, $ 15 thousand and $ 0.4 million in 2023, 2022 and 2021, r espectively, related to common stock subject to vesting requirements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 11. Shareholders’ Equity Employee Stock Purchase Plan Effective July 1, 1998, the Company adopted an Employee Stock Purchase Plan to provide substantially all employees who have completed three months of service as of the beginning of an offering period an opportunity to purchase shares of its common stock through payroll deductions. Purchases on any one grant are limited to 10 % of eligible compensation. Shares of the Company’s common stock may be purchased by employees at six-month intervals at 95 % of the fair value on the last trading day of each six-month period. The aggregate fair value, determined as of the first trading date of the offering period, of shares purchased by an employee may not exceed $ 25,000 annually. In 2022, the Company’s Board of Directors and the Company’s shareholders approved an extension of the Employee Stock Purchase Plan to July 1, 2028 and added an additional 250,000 shares of common stock. As of December 29, 2023, a total of 197,779 shares of common stock were available for purchase under the plan. For plan years 2023, 2022 and 2021, 43,668 shares, 40,622 shares and 41,504 shares, respectively, were issued for total proceeds of $ 0.9 million in 2023 and $ 0.8 mill ion in both 2022 and 2021. 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 December 29, 2023 , the Company had affected cumulative purchases under the plan of $ 273.2 million, leaving $ 13.9 million available for future purchases. In December 2022 the Company completed the tender offer through which 4.9 million shares were accepted for purchase 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 as discussed in Note 8. During 2023 and 2022, the Company repurchased 37 thousand and 4.9 million shares of its common stock, respectively, at an average price per share of $ 18.96 and $ 23.69 , respectively, for a total cost of $ 0.7 million and $ 116.6 million, respectively. As of December 29, 2023 and December 30, 2022 the Company had repurchased under the plan inception to date 33.2 million shares of its common stock, at an average price of $ 8.22 per share and $ 8.21 per share, respectively. The shares repurchased in 2023 were repurchased from members of the Company's Board of Directors for $ 0.7 million or $ 18.96 per share. In 2022, in addition to the shares tendered under the tender offer, the Company repurchased 31 thousand shares of its common stock from members of its Board of Directors for $ 0.6 million or $ 20.50 per share. The proceeds from the sale of these shares were used in part to cover estimated tax liabilities associated with previously vested restricted stock units. There is no expiration of the 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. In 2023, 174 thousand shares were withheld and not issued for a cost of $ 3.8 million bringing the total cumulative cash used to repurchase stock in 2023 to $ 4.5 million. In 2022, 164 thousand shares were withheld and not issued for a cost of $ 3.2 million bringing the total cumulative cash used to repurchase stock in 2022 to $ 119.8 million. The shares withheld for taxes are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity. Dividends In December 2012, the Company announced an annual dividend of $ 0.10 per share to be paid semi-annually. In 2021, the Company increased the annual dividend to $ 0.40 per share to be paid on a quarterly basis which resulted in aggregate dividends of $ 12.9 million paid to shareholders on April 8, 2021 , July 9, 2021 , October 8, 2021 , and December 30, 2021 . In 2022, the Company increased the annual dividend to $ 0.44 per share to be paid on a quarterly basis which resulted in aggregate dividends of $ 13.4 million paid to shareholders on April 8, 2022 , July 8, 2022 , October 6, 2022 , and January 6, 2023 . In 2023, the Company declared four quarterly dividends to be paid on a quarterly basis which resulted in aggregate dividends of $ 12.0 million paid to shareholders on April 7, 2023 , July 7, 2023 , October 6, 2023 , and January 5, 2024 . These dividends were paid from U.S. domestic sources and are accounted for as an increase to accumulated deficit . Subsequent to December 29, 2023, the Company declared its first quarterly dividend for 2024 of $ 0.11 per share for shareholders of record on March 22, 2024 , to be paid on April 5, 2024 . |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 29, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 12. 401(k) Plan The Company maintains a 401(k) plan covering all eligible employees. Subject to certain dollar limits, eligible employees may contribute up to 15 % of their pre-tax annual compensation to the plan. The Company may make discretionary contributions on an annual basis. The Company makes matching contributions of 40 % of employee eligible contributions up to 6 % of their gross salaries. The Company’s matching contributions were $ 0.8 milli on, $ 0.9 million and $ 0.8 million in 2023, 2022 and 2021, respectively. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 29, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 13. Transactions with Related Parties During the year ended December 29, 2023, the Company repurchased 37 thousand shares of the Company’s stock from members of its Board of Directors for a total cost of $ 0.7 million, or $ 18.96 per share. During the year ended December 30, 2022, the Company repurchased 31 thousand shares of the Company’s stock from members of its Board of Directors for a total cost of $ 0.6 million, or $ 20.50 per share . Subsequent to the year ended December 29, 2023, the Company repurchased 43 thousand shares of the Company’s stock from members of its Board of Directors for a total of $ 1.1 million, or $ 24.34 per share. The proceeds from the sale of these shares were used primarily to cover estimated tax liabilities associated with previously vested restricted stock units. See Note 11 for further details. |
Litigation
Litigation | 12 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 14. 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 consolidated financial position, cash flows or results of operations. In May 2023, Gartner, Inc. ("Gartner") filed a lawsuit seeking a preliminary injunction and damages against the Company and two ex-Gartner employees that were hired by the Company. On February 17, 2024, the Company, Gartner and the two ex-Gartner employees entered into a settlement agreement whereby the Company made a settlement payment of $ 985,000 to Gartner, Inc. in exchange for a dismissal of the lawsuit and a release of all claims. |
Segment Information and Geograp
Segment Information and Geographical Data | 12 Months Ended |
Dec. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Geographical Data | 15. Segment Information and Geographical Data Management has made the determination that 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 AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The Company has presented the segment information for the twelve months ended December 29, 2023, December 30, 2022, and December 31, 2021, respectively. 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. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level. 15. Segment Information and Geographical Data (continued) The tables below set forth information about the Company’s operating segments for the years ended December 29, 2023, December 30, 2022 and December 31, 2021 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Global S&BT: Total revenue* $ 171,927 $ 169,660 $ 146,224 Segment profit 54,366 61,319 49,321 Oracle Solutions: Total revenue* $ 77,772 $ 76,320 $ 74,886 Segment profit 18,060 15,335 15,662 SAP Solutions: Total revenue* $ 46,891 $ 47,762 $ 57,699 Segment profit 11,925 12,827 18,843 Total Company: Total revenue* $ 296,590 $ 293,742 $ 278,809 Total segment profit $ 84,351 $ 89,481 $ 83,826 Items not allocated to segment level: Corporate general and administrative expenses** 19,766 21,180 22,840 Non-cash stock based compensation expense 10,724 10,267 10,122 Acquisition-related compensation expense - - 11 Depreciation and amortization 3,421 3,437 4,377 Restructuring and asset impairment (settlement) charge - ( 651 ) - Legal settlement and related costs 1,178 - - Interest expense, net 3,235 144 95 Income from continuing operations before taxes $ 46,027 $ 55,104 $ 46,381 *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. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits. 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): Year Ended December 29, December 30, December 31, 2023 2022 2021 Revenue: United States $ 251,012 $ 253,935 $ 244,499 Europe 28,648 23,866 20,627 Other (Australia, Canada, India and Uruguay) 16,930 15,941 13,683 Total Revenue $ 296,590 $ 293,742 $ 278,809 15. Segment Information and Geographical Data (continued) Long-lived assets are attributed to geographic areas as follows (in thousands): December 29, December 30, 2023 2022 Long-lived assets: North America $ 91,065 $ 89,705 Europe 14,481 13,640 Other (Australia, Canada, India and Uruguay) 444 482 Total long-lived assets $ 105,990 $ 103,827 As of December 29, 2023 and December 30, 2022 foreign assets included $ 14.3 million and $ 13.5 million, respectively, of goodwill related to acquisitions. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 29, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 16. Quarterly Financial Information (unaudited) The following tables present unaudited supplemental quarterly financial information for the years ended December 29, 2023 and December 30, 2022 (in thousands, except per share data): Quarter Ended March 31, 2023 June 30, 2023 September 29, 2023 December 29, 2023 Total revenue $ 71,229 $ 77,102 $ 75,856 $ 72,403 Operating income $ 11,252 $ 12,790 $ 13,743 $ 11,477 Income from continuing operations before income taxes $ 10,393 $ 11,869 $ 12,929 $ 10,836 Net income $ 8,161 $ 8,720 $ 9,420 $ 7,850 Basic net income per common share $ 0.30 $ 0.32 $ 0.35 $ 0.29 Diluted net income per common share $ 0.30 $ 0.32 $ 0.34 $ 0.28 Quarter Ended April 1, 2022 July 1, 2022 September 30, 2022 December 30, 2022 Total revenue $ 75,664 $ 75,928 $ 72,033 $ 70,117 Operating income $ 13,409 $ 14,181 $ 14,035 $ 13,623 Income from continuing operations before income taxes $ 13,381 $ 14,153 $ 14,021 $ 13,549 Net income $ 10,505 $ 10,215 $ 10,366 $ 9,716 Basic net income per common share $ 0.33 $ 0.32 $ 0.33 $ 0.32 Diluted net income per common share $ 0.33 $ 0.32 $ 0.32 $ 0.31 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 29, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts And Reserves | THE HACKETT GROUP, INC. SCHEDULE II – VAL UATION AND QUALIFYING ACCOUNTS AND RESERVES YEARS ENDED December 29, 2023, December 30, 2022, and December 31, 2021 (in thousands) Balance at Charge to Beginning Revenue/ Write-offs/ Balance at Allowance for Doubtful Accounts of Year Expense (Reversals) End of Year Year Ended December 29, 2023 $ 856 258 ( 42 ) $ 1,072 Year Ended December 30, 2022 $ 2,702 965 ( 2,811 ) $ 856 Year Ended December 31, 2021 $ 605 2,068 29 $ 2,702 |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Policies) | 12 Months Ended |
Dec. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Hackett (NASDAQ: HCKT) is a global IP-based executive advisory, strategic consulting and digital transformation firm. The Hackett Group provides dedicated expertise in Generative Artificial Intelligence ("Gen AI"), strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings. The firm recently launched our AI XPLR offering which helps define an organizations’ Gen AI enablement opportunities. Using AI XPLR, our artificial intelligence ("AI") assessment platform, our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and seek to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey. The Hackett Group has completed over 26,600 benchmarking and performance studies with major organizations. These studies are executed utilizing our Quantum Leap® platform which drives our Digital Transformation Platform (“DTP” or “Hackett DTP”). This includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enables our clients and partners to achieve digital world-class performance. Our expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97 % of the Dow Jones Industrials, 89 % of the Fortune 100, 70 % of the DAX 40 and 55 % of the FTSE 100, which are delivered through our Hackett Connect, Quantum Leap ® and DTP platforms. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. The Company consolidates the assets, liabilities, and results of operations of its entities. Intercompany transactions and balances are eliminated upon consolidation. |
Fiscal Year | Fiscal Year The Company’s fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2023, 2022, and 2021 ended on December 29, 2023, December 30, 2022, and December 31, 2021 , respectively, each consisted of a 52-week period. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. |
Cash | Cash The Company considers depository accounts and all short-term investments with maturities of three months or less to be cash equivalents to the extent that it places its temporary cash investments with high credit quality financial institutions. At times, such balances may be in excess of the F.D.I.C. insurance limits. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its clients not making required payments. Management makes estimates of the collectability of accounts receivable and critically reviews accounts receivable and analyzes historical bad debts, past-due accounts, client credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of the Company’s clients were to deteriorate, resulting in their inability to make payments, additional allowances may be required. |
Dividends | Dividends In December 2012, the Company’s Board of Directors approved the initiation of an annual cash dividend in the amount of $ 0.10 per share. The Company’s Board of Directors has gradually increased the dividend over the years to $ 0.44 per share. During 2023, the Company declared four quarterly dividend payments of $ 0.11 per share each, the fourth of which was paid in January 2024. The dividend policy is reviewed periodically by the Board of Directors and could change. The amount and timing of all dividend payments 1. Basis of Presentation and General Information (continued) is subject to the discretion of the Board of Directors and will depend upon business conditions, contractual obligations, legal restrictions, results of operations, financial conditions and other factors. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost. Depreciation is calculated to amortize the depreciable assets over their estimated useful lives using the straight-line method and commences when the asset is placed in service. The range of estimated useful lives is three to ten years . Leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements are capitalized. The carrying amount of assets sold or retired and related accumulated depreciation are removed from the balance sheet in the year of disposal and any resulting gains or losses are included in the consolidated statements of operations. The Company capitalizes the costs of internal-use software, which generally includes hardware, software, and payroll-related costs for employees who are directly associated with, and who devote time, to the development of internal-use computer software. |
Long-Lived Assets (excluding Goodwill and Indefinite Lived Intangible Assets) | Long-Lived Assets (excluding Goodwill and Indefinite Lived Intangible Assets) Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. |
Business Combinations | Business Combinations For transactions that are considered business combinations, the purchased assets and assumed liabilities are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to refinement during the measurement period of up to one year after the closing date of an acquisition as information relative to closing date fair values become available. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized, but rather are tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment. Finite-lived intangible assets are amortized over their useful lives. The excess cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. 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 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. With the new reporting unit structure, the goodwill previously assigned to Hackett Technology Solutions and The Hackett Group has now been allocated based on the reporting unit's relative fair value. The carrying amount and activity of goodwill by new reporting units are as follows (in thousands): Foreign December 30, Additions/ Currency December 29, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 740 $ 57,550 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 740 $ 84,242 1. Basis of Presentation and General Information (continued) Goodwill is tested at least annually for impairment at the reporting unit level utilizing the market approach. In assessing the recoverability of goodwill and intangible assets, the Company utilizes the market approach and makes estimates based on assumptions regarding various factors to determine if impairment tests are met. The market approach utilizes valuation multiples based on operating data from publicly traded companies within the same industry. Multiples derived from guideline companies provide an indication of how much a market participant would be willing to pay for a company. These multiples are then applied to the Company’s reporting units to arrive at an indication of value. This approach contains management’s judgment, using appropriate and customary assumptions available at the time. The Company performed its annual impairment test of goodwill in the fourth quarter of fiscal years 2023, 2022 and 2021 and determined that goodwill was not impaired. Finite lived intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years . All of the Company’s finite-lived intangible assets were fully amortized in 2022. |
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. 1. Basis of Presentation and General Information (continued) 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 on-premise software, cloud software and maintenance contracts are in the form of SAP America ("SAP") software 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 sale for either on-premise software or cloud software or maintenance amount in the contract with the vendor. Revenue for the resale of software 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. 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 are recorded as contract assets. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within 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 12 months ended December 29, 2023, the Company recognized $ 12.7 million of revenue as a result of changes in the contract liability balance, as compared to $ 13.1 million for the twelve months ended December 30, 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 disaggregated revenue as follows for the years ended December 29, 2023, December 30, 2022 and December 31, 2021 (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Global S&BT: North America Consulting $ 144,960 $ 143,956 $ 122,607 International Consulting 26,967 25,704 23,617 Total Global S&BT $ 171,927 $ 169,660 $ 146,224 Oracle Solutions: Consulting and software support and maintenance $ 77,772 $ 76,320 $ 74,886 Total Oracle Solutions $ 77,772 $ 76,320 $ 74,886 SAP Solutions: Consulting and software support and maintenance $ 41,324 $ 40,729 $ 47,391 Software license sales 5,567 7,033 10,308 Total SAP Solutions $ 46,891 $ 47,762 $ 57,699 Total segment revenue $ 296,590 $ 293,742 $ 278,809 1. Basis of Presentation and General Information (continued) 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 is 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 29, 2023 and December 30, 2022, the Company had $ 1.7 million, and $ 1.5 million, respectively, of deferred commissions, of which $ 1.1 million was amortized during both the 12 months ended December 29, 2023 and December 30, 2022. 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. |
Stock Based Compensation | Stock Based Compensation The Company recognizes compensation expense for awards of equity instruments to employees based on the grant-date fair value of those awards, with limited exceptions, over the requisite service period. |
Restructuring Reserves | Restructuring Reserves Restructuring reserves reflect judgments and estimates of the Company’s ultimate costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, absorption period to sublease space and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting carrying values and tax bases of assets and liabilities and are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. Deferred income taxes also reflect the impact of certain state operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company utilized a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company reports penalties and tax-related interest expense as a component of income tax expense. |
Net Income per Common Share | 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 regards to common stock subject to vesting requirements and restricted stock units issued to employees, the calculation includes only the vested portion of such stock. The potential issuance of common shares upon the exercise, conversion or vesting of unvested restricted stock units, common stock subject to vesting, stock options and stock appreciation right units ("SARs"), as calculated under the treasury stock method, may be dilutive. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding and will increase by the assumed conversion of other potentially dilutive securities during the period. The following table reconciles basic and diluted weighted average shares: Year Ended December 29, December 30, December 31, 2023 2022 2021 Basic weighted average common shares outstanding 27,170,039 31,399,813 30,021,097 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 466,574 555,483 529,535 Common stock issuable upon the exercise of stock options and SARs — 6,445 2,331,976 Dilutive weighted average common shares outstanding 27,636,613 31,961,741 32,882,608 Approximately 2 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for both of the years ended December 29, 2023 and December 30, 2022, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share. |
Concentration of Credit Risk | Concentration of Credit Risk The Company provides services primarily to Global 2000 companies and other sophisticated buyers of business consulting and information technology services. The Company performs ongoing credit evaluations of its major customers and maintains reserves for potential credit losse s. In 2023 one customer accounted for 6% of total revenue, in 2022 one customer accounted for 7% of total revenue, all of which was included in the Global S&BT segment, and in 2021 no customer accounted for more than 5% of total revenue. |
Management's Estimates | Management’s Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Other Comprehensive Income | Other Comprehensive Income The Company reports its comprehensive income in accordance with FASB ASC Topic 220, Comprehensive Income, which establishes standards for reporting and presenting comprehensive income and its components in a full set of financial statements. Other comprehensive income consists of net income and currency translation adjustments. |
Segment Reporting | Segment Reporting Segments are defined as components of a company that engage in business activities from which they may 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 assessed 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 15 “Segment Information and Geographic Data” for detailed segment information. 1. Basis of Presentation and General Information (continued) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, accounting guidance was issued that requires additional disclosures of reportable segment information. The guidance requires that public entities disclose, on an annual and interim basis (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit; at least one of the reported segment profit or loss measures should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements, (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and in deciding how to allocate resources, and (6) if a public entity has a single reportable segment to provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280. The amendments in this update do not change how operating segments are identified or aggregated nor how the quantitative thresholds are applied to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact the adoption of this accounting standard update will have on its footnote disclosures, however the Company does not believe this accounting standard update will have material impact on the Company’s financial position, results of operations and cash flows. |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current year presentation with no effect on net income or shareholder’s equity. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Summary of Carrying Amount of Goodwill | The carrying amount and activity of goodwill by new reporting units are as follows (in thousands): Foreign December 30, Additions/ Currency December 29, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 740 $ 57,550 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 740 $ 84,242 |
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 disaggregated revenue as follows for the years ended December 29, 2023, December 30, 2022 and December 31, 2021 (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Global S&BT: North America Consulting $ 144,960 $ 143,956 $ 122,607 International Consulting 26,967 25,704 23,617 Total Global S&BT $ 171,927 $ 169,660 $ 146,224 Oracle Solutions: Consulting and software support and maintenance $ 77,772 $ 76,320 $ 74,886 Total Oracle Solutions $ 77,772 $ 76,320 $ 74,886 SAP Solutions: Consulting and software support and maintenance $ 41,324 $ 40,729 $ 47,391 Software license sales 5,567 7,033 10,308 Total SAP Solutions $ 46,891 $ 47,762 $ 57,699 Total segment revenue $ 296,590 $ 293,742 $ 278,809 1. Basis of Presentation and General Information (continued) |
Reconciliation Of Basic And Diluted Weighted Average Shares | The following table reconciles basic and diluted weighted average shares: Year Ended December 29, December 30, December 31, 2023 2022 2021 Basic weighted average common shares outstanding 27,170,039 31,399,813 30,021,097 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 466,574 555,483 529,535 Common stock issuable upon the exercise of stock options and SARs — 6,445 2,331,976 Dilutive weighted average common shares outstanding 27,636,613 31,961,741 32,882,608 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets, Net (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Receivables, Net, Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | Accounts receivable and contract assets, net, consists of the following (in thousands): December 29, December 30, 2023 2022 Accounts receivable $ 35,640 $ 28,913 Contract assets (unbilled revenue) 17,545 20,319 Allowance for doubtful accounts ( 1,072 ) ( 856 ) $ 52,113 $ 48,376 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | December 29, December 30, 2023 2022 Equipment $ 2,346 $ 4,346 Software 33,444 29,594 Furniture and fixtures 18 18 35,808 33,958 Less accumulated depreciation ( 15,764 ) ( 14,599 ) $ 20,044 $ 19,359 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): December 29, December 30, 2023 2022 Accrued compensation and benefits $ 9,162 $ 9,320 Accrued bonuses 8,246 12,171 Dividend payable 2,997 2,997 Accrued sales, use, franchise and VAT tax 2,862 2,572 Non-cash stock compensation accrual 408 1,241 Other accrued expenses 3,126 2,652 Total accrued expenses and other liabilities $ 26,801 $ 30,953 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Leases [Abstract] | |
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases | Future minimum lease commitments under non-cancelable operating leases as of December 29, 2023 , are as follows (in thousands): Rental Payments 2024 $ 1,083 2025 260 2026 222 2027 228 2028 137 Total lease payments 1,930 Less imputed interest ( 107 ) Total $ 1,823 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes from Continuing Operations | The components of income before income taxes from continuing operations are as follows (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Domestic $ 40,259 $ 48,020 $ 41,641 Foreign 5,768 7,084 4,740 Income from continuing operations before income $ 46,027 $ 55,104 $ 46,381 |
Components of Income Tax Expense from Continuing Operations | The components of income tax expense from continuing operations are as follows (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Current tax expense Federal $ 6,823 $ 9,782 $ 2,043 State 2,214 3,416 663 Foreign 1,474 1,584 654 10,511 14,782 3,360 Deferred tax expense (benefit) Federal 985 49 765 State 470 ( 99 ) 303 Foreign ( 90 ) ( 430 ) 401 1,365 ( 480 ) 1,469 Income tax expense from continuing operations $ 11,876 $ 14,302 $ 4,829 |
Reconciliation of The Federal Statutory Tax Rate With The Effective Tax Rate From Continuing Operations | A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations is as follows: Year Ended December 29, December 30, December 31, 2023 2022 2021 U.S. statutory income tax expense rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax 4.6 4.8 1.6 Valuation reduction — ( 0.3 ) 0.1 Meals and entertainment 0.2 — — Foreign rate differential 0.3 0.1 0.3 Share based compensation ( 1.1 ) ( 1.0 ) ( 13.2 ) Foreign exchange loss 0.2 ( 0.2 ) ( 0.1 ) Other, net 0.6 1.6 0.7 Effective tax rate 25.8 % 26.0 % 10.4 % |
Components of The Net Deferred income Tax Asset (Liability) | The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 29, December 30, 2023 2022 Deferred income tax assets: Allowance for doubtful accounts $ 281 $ 224 Net operating loss and tax credits carryforward 2,940 2,902 Accrued expenses and other liabilities 4,497 5,804 7,718 8,930 Valuation allowance ( 1,461 ) ( 1,463 ) 6,257 7,467 Deferred income tax liabilities: Depreciation ( 3,381 ) ( 3,847 ) Tax over book amortization on goodwill and intangibles ( 10,834 ) ( 10,316 ) Other items ( 160 ) ( 181 ) ( 14,375 ) ( 14,344 ) Net deferred income tax liability $ ( 8,118 ) $ ( 6,877 ) |
Detail And Activity of The ASC 740-10 Liability | The following table sets forth the detail and activity of the ASC 740 liability during the years ended December 29, 2023 and December 30, 2022 (in thousands): Year Ended December 29, December 30, 2023 2022 Beginning balance $ 450 $ 437 Additions based on tax positions 4 13 Reduction for prior year tax deductions ( 234 ) — Ending balance $ 220 $ 450 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Share Based Compensation Included In Net Income | Total share-based compensation included in net income for the years ended December 29, 2023, December 30, 2022, and December 31, 2021 is as follows: Year Ended December 29, December 30, December 31, 2023 2022 2021 Restricted stock units $ 10,714 $ 10,252 $ 9,716 Common stock subject to vesting requirements 10 15 406 $ 10,724 $ 10,267 $ 10,122 |
Summary Of Stock Option Activity Under The Company's Stock Option Plans | Stock option activity under the Company’s stock option plans for the years ended December 30, 2022 and December 31, 2021, are summarized as follows: December 30, 2022 December 31, 2021 Option Shares Weighted Average Option Shares Weighted Average Outstanding at beginning of year 30,000 $ 4.00 180,000 $ 4.00 Exercised ( 30,000 ) 4.00 ( 150,000 ) 4.00 Outstanding at end of year — $ - 30,000 $ 4.00 Exercisable at end of year — $ - 30,000 $ 4.00 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Restricted Stock Unit Activity | Restricted stock unit activity for the year ended December 29, 2023, was as follows: Number of Weighted Average Nonvested balance as of December 30, 2022 1,212,902 17.85 Granted 590,286 21.40 Vested ( 562,945 ) 17.34 Forfeited ( 35,461 ) 18.91 Nonvested balance as of December 29, 2023 1,204,782 $ 19.82 |
Segment Information and Geogr_2
Segment Information and Geographical Data (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Geographical Data | The tables below set forth information about the Company’s operating segments for the years ended December 29, 2023, December 30, 2022 and December 31, 2021 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands): Year Ended December 29, December 30, December 31, 2023 2022 2021 Global S&BT: Total revenue* $ 171,927 $ 169,660 $ 146,224 Segment profit 54,366 61,319 49,321 Oracle Solutions: Total revenue* $ 77,772 $ 76,320 $ 74,886 Segment profit 18,060 15,335 15,662 SAP Solutions: Total revenue* $ 46,891 $ 47,762 $ 57,699 Segment profit 11,925 12,827 18,843 Total Company: Total revenue* $ 296,590 $ 293,742 $ 278,809 Total segment profit $ 84,351 $ 89,481 $ 83,826 Items not allocated to segment level: Corporate general and administrative expenses** 19,766 21,180 22,840 Non-cash stock based compensation expense 10,724 10,267 10,122 Acquisition-related compensation expense - - 11 Depreciation and amortization 3,421 3,437 4,377 Restructuring and asset impairment (settlement) charge - ( 651 ) - Legal settlement and related costs 1,178 - - Interest expense, net 3,235 144 95 Income from continuing operations before taxes $ 46,027 $ 55,104 $ 46,381 *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. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits. |
Geographic Revenue before Reimbursement | 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): Year Ended December 29, December 30, December 31, 2023 2022 2021 Revenue: United States $ 251,012 $ 253,935 $ 244,499 Europe 28,648 23,866 20,627 Other (Australia, Canada, India and Uruguay) 16,930 15,941 13,683 Total Revenue $ 296,590 $ 293,742 $ 278,809 |
Long-Lived Assets Attributable To Geographic Area | Long-lived assets are attributed to geographic areas as follows (in thousands): December 29, December 30, 2023 2022 Long-lived assets: North America $ 91,065 $ 89,705 Europe 14,481 13,640 Other (Australia, Canada, India and Uruguay) 444 482 Total long-lived assets $ 105,990 $ 103,827 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Supplemental Quarterly Financial Information | The following tables present unaudited supplemental quarterly financial information for the years ended December 29, 2023 and December 30, 2022 (in thousands, except per share data): Quarter Ended March 31, 2023 June 30, 2023 September 29, 2023 December 29, 2023 Total revenue $ 71,229 $ 77,102 $ 75,856 $ 72,403 Operating income $ 11,252 $ 12,790 $ 13,743 $ 11,477 Income from continuing operations before income taxes $ 10,393 $ 11,869 $ 12,929 $ 10,836 Net income $ 8,161 $ 8,720 $ 9,420 $ 7,850 Basic net income per common share $ 0.30 $ 0.32 $ 0.35 $ 0.29 Diluted net income per common share $ 0.30 $ 0.32 $ 0.34 $ 0.28 Quarter Ended April 1, 2022 July 1, 2022 September 30, 2022 December 30, 2022 Total revenue $ 75,664 $ 75,928 $ 72,033 $ 70,117 Operating income $ 13,409 $ 14,181 $ 14,035 $ 13,623 Income from continuing operations before income taxes $ 13,381 $ 14,153 $ 14,021 $ 13,549 Net income $ 10,505 $ 10,215 $ 10,366 $ 9,716 Basic net income per common share $ 0.33 $ 0.32 $ 0.33 $ 0.32 Diluted net income per common share $ 0.33 $ 0.32 $ 0.32 $ 0.31 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information (Narrative) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2024 $ / shares | Dec. 31, 2012 $ / shares | Dec. 29, 2023 USD ($) Customer Segment BenchmarkingAndPerformanceStudies $ / shares shares | Dec. 30, 2022 USD ($) Customer $ / shares shares | Dec. 31, 2021 USD ($) Customer $ / shares | |
Basis Of Presentation And General Information [Line Items] | |||||
Dividend declared | $ / shares | $ 0.11 | $ 0.10 | $ 0.44 | $ 0.44 | $ 0.4 |
Dividends payable nature | During 2023, the Company declared four quarterly dividend payments of $0.11 per share each, the fourth of which was paid in January 2024. | ||||
Period of intangible assets amortized | 5 years | ||||
Amortization of finite-lived intangible assets | $ 154 | $ 1,016 | |||
Revenue recognized as a result of change in contract liability | $ 12,700 | 13,100 | |||
Deferred commissions | 1,700 | 1,500 | |||
Commissions expense | $ 1,100 | $ 1,100 | |||
Antidilutive common share equivalents | shares | 2 | 2 | |||
Number of customers accounted for more than five percent of revenue | Customer | 0 | ||||
Number of operating segments | Segment | 3 | ||||
Number of reportable segments | Segment | 3 | ||||
Number of reporting units | Segment | 3 | ||||
Change in accounting principle, accounting standards update, early adoption | true | ||||
Number of benchmarking and performance studies with major organizations | BenchmarkingAndPerformanceStudies | 26,600 | ||||
Description of prior period information retrospectively adjusted | The amendments in this update should be applied retrospectively to all prior periods presented in the financial statements. | ||||
Global S&BT [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Number of customers accounted for six percent of revenue | Customer | 1 | ||||
Number of customers accounted for seven percent of revenue | Customer | 1 | ||||
Dow Jones Industrials [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Percentage of insights from benchmarking | 97% | ||||
Fortune 100 [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Percentage of insights from benchmarking | 89% | ||||
DAX 40 [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Percentage of insights from benchmarking | 70% | ||||
FTSE 100 [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Percentage of insights from benchmarking | 55% | ||||
Minimum [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Useful life of property and equipment | 3 years | ||||
Maximum [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Useful life of property and equipment | 10 years | ||||
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 | 12 Months Ended |
Dec. 29, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 83,502 |
Foreign Currency Translation | 740 |
Goodwill, Ending Balance | 84,242 |
Global S&BT [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 56,810 |
Foreign Currency Translation | 740 |
Goodwill, Ending Balance | 57,550 |
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 | 12 Months Ended | |||||||||
Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | $ 72,403 | $ 75,856 | $ 77,102 | $ 71,229 | $ 70,117 | $ 72,033 | $ 75,928 | $ 75,664 | $ 296,590 | $ 293,742 | $ 278,809 |
Global S&BT [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 171,927 | 169,660 | 146,224 | ||||||||
Oracle Solutions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 77,772 | 76,320 | 74,886 | ||||||||
SAP Solutions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 46,891 | 47,762 | 57,699 | ||||||||
Consulting and Software Support and Maintenance [Member] | Oracle Solutions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 77,772 | 76,320 | 74,886 | ||||||||
Consulting and Software Support and Maintenance [Member] | SAP Solutions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 41,324 | 40,729 | 47,391 | ||||||||
Software License Sales [Member] | SAP Solutions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 5,567 | 7,033 | 10,308 | ||||||||
North America [Member] | Consulting [Member] | Global S&BT [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | 144,960 | 143,956 | 122,607 | ||||||||
International [Member] | Consulting [Member] | Global S&BT [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Segment revenue | $ 26,967 | $ 25,704 | $ 23,617 |
Basis of Presentation and Gen_7
Basis of Presentation and General Information (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Basic weighted average common shares outstanding | 27,170,039 | 31,399,813 | 30,021,097 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees | 466,574 | 555,483 | 529,535 |
Common stock issuable upon the exercise of stock options and SARs | 6,445 | 2,331,976 | |
Dilutive weighted average common shares outstanding | 27,636,613 | 31,961,741 | 32,882,608 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Receivables, Net, Current [Abstract] | ||
Accounts receivable | $ 35,640 | $ 28,913 |
Contract assets (unbilled revenue) | 17,545 | 20,319 |
Allowance for doubtful accounts | (1,072) | (856) |
Accounts receivable and contract assets, net | $ 52,113 | $ 48,376 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 35,808 | $ 33,958 |
Less accumulated depreciation | (15,764) | (14,599) |
Property, Plant and Equipment, Net, Total | 20,044 | 19,359 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,346 | 4,346 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 33,444 | 29,594 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 18 | $ 18 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 3,421 | $ 3,283 | $ 3,361 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued compensation and benefits | $ 9,162 | $ 9,320 |
Accrued bonuses | 8,246 | 12,171 |
Dividend payable | 2,997 | 2,997 |
Accrued sales, use, franchise and VAT tax | 2,862 | 2,572 |
Non-cash stock compensation accrual | 408 | 1,241 |
Other accrued expenses | 3,126 | 2,652 |
Total accrued expenses and other liabilities | $ 26,801 | $ 30,953 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charge and Settlements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2022 | Jan. 01, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges and asset impairments | $ 10,500 | |
Settlement of restructuring charge and asset impairments | $ 651 | |
Real Estate Leases [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges and asset impairments | 4,800 | |
Impairment Related Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges and asset impairments | 4,800 | |
Pandemic [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges and asset impairments | $ 5,700 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Weighted average remaining lease term | 2 years 9 months 18 days | ||
Weighted average discount rate | 4% | ||
Operating lease payments | $ 1.4 | ||
Lease expense | $ 1.1 | $ 1.2 | $ 1 |
Lessee, operating lease not yet commenced description | As of December 29, 2023, the Company does not have any additional operating leases that have not yet commenced that create significant rights and obligations for the Company. | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases terms | 1 year | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases terms | 5 years |
Lease Commitments (Future Minim
Lease Commitments (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 29, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,083 |
2025 | 260 |
2026 | 222 |
2027 | 228 |
2028 | 137 |
Total lease payments | 1,930 |
Less imputed interest | (107) |
Total | $ 1,823 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Nov. 07, 2022 | Apr. 03, 2020 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Incremental debt issuance costs | $ 14,000 | $ 381,000 | $ 4,000 | ||
Revolving line of credit facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity under credit facility | $ 100,000,000 | $ 45,000,000 | |||
Maturity date | Nov. 07, 2027 | Nov. 30, 2022 | |||
Additional borrowing capacity | $ 55,000,000 | ||||
Increase in interest payable | 0.50% | ||||
Commitment fees percentage | 0.125% | ||||
Frequency of interest payments | Interest payments are made on a monthly basis | ||||
Incremental debt issuance costs | $ 14,000 | 400,000 | |||
Remaining debt issuance cost to be amortized | 300,000 | ||||
Debt balance | 33,000,000 | 60,000,000 | |||
Amount drawn on loan | $ 300,000 | $ 300,000 | |||
Revolving line of credit facility [Member] | LIBOR Floor Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Margin percentage base rate | 0.75% | ||||
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% | ||||
Revolving line of credit facility [Member] | BSBY [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate on outstanding debt | 6.90% |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes from Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 40,259 | $ 48,020 | $ 41,641 | ||||||||
Foreign | 5,768 | 7,084 | 4,740 | ||||||||
Income from continuing operations before income taxes | $ 10,836 | $ 12,929 | $ 11,869 | $ 10,393 | $ 13,549 | $ 14,021 | $ 14,153 | $ 13,381 | $ 46,027 | $ 55,104 | $ 46,381 |
Income Taxes (Components of I_2
Income Taxes (Components of Income Tax Expense from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Current tax expense | |||
Federal | $ 6,823 | $ 9,782 | $ 2,043 |
State | 2,214 | 3,416 | 663 |
Foreign | 1,474 | 1,584 | 654 |
Current Income Tax Expense (Benefit), Total | 10,511 | 14,782 | 3,360 |
Deferred tax expense (benefit) | |||
Federal | 985 | 49 | 765 |
State | 470 | (99) | 303 |
Foreign | (90) | (430) | 401 |
Deferred Income Tax Expense (Benefit) | 1,365 | (480) | 1,469 |
Income tax expense from continuing operations | $ 11,876 | $ 14,302 | $ 4,829 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of The Federal Statutory Tax Rate With The Effective Tax Rate from Continuing Operations) (Details) | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax expense rate | 21% | 21% | 21% |
State income taxes, net of federal income tax expense | 4.60% | 4.80% | 1.60% |
Valuation reduction | (0.30%) | 0.10% | |
Meals and entertainment | 0.20% | ||
Foreign rate differential | 0.30% | 0.10% | 0.30% |
Share based compensation | (1.10%) | (1.00%) | (13.20%) |
Foreign exchange loss | 0.20% | (0.20%) | (0.10%) |
Other, net | 0.60% | 1.60% | 0.70% |
Effective tax rate | 25.80% | 26% | 10.40% |
Income Taxes (Components of The
Income Taxes (Components of The Net Deferred Income Tax Asset (Liability)) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 281 | $ 224 |
Net operating loss and tax credits carryforward | 2,940 | 2,902 |
Accrued expenses and other liabilities | 4,497 | 5,804 |
Deferred Tax Assets, Total | 7,718 | 8,930 |
Valuation allowance | (1,461) | (1,463) |
Deferred tax assets, net | 6,257 | 7,467 |
Deferred income tax liabilities: | ||
Depreciation | (3,381) | (3,847) |
Tax over book amortization on goodwill and intangibles | (10,834) | (10,316) |
Other items | (160) | (181) |
Deferred tax liabilities, net | (14,375) | (14,344) |
Net deferred income tax liability | $ (8,118) | $ (6,877) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||
Income tax benefit | $ 11,876 | $ 14,302 | $ 4,829 |
Income tax receivable | 3,400 | ||
U.S. operating loss carryforwards | 800 | ||
Foreign net operating loss carryforwards | 8,400 | ||
Valuation allowance | 1,461 | 1,463 | |
Undistributed earnings in foreign subsidiaries | 8,100 | ||
Accrued income tax-related interest and penalties | 50 | 192 | 179 |
ASC 740-10 tax liabilities, current | $ 220 | $ 450 | $ 437 |
Stock Appreciation Rights (SARs) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Shares exercised | 2.9 | ||
Income tax benefit | $ (7,700) |
Income Taxes (Detail and Activi
Income Taxes (Detail and Activity of The ASC 740-10 Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 450 | $ 437 |
Additions based on tax positions | 4 | 13 |
Reduction for prior year tax deductions | (234) | |
Unrecognized Tax Benefits, Ending balance | $ 220 | $ 450 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Share Based Compensation Included in Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 10,724 | $ 10,267 | $ 10,122 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 10,714 | 10,252 | 9,716 |
Common Stock Subject to Vesting Requirements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 10 | $ 15 | $ 406 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 2,300,000 | ||
Stock options exercised | $ 600 | $ 2,400 | |
Intrinsic value exercised | 46,100 | ||
Income tax benefit | $ (11,876) | (14,302) | (4,829) |
Income tax receivable | 3,400 | ||
Share based compensation | $ 10,724 | $ 10,267 | $ 10,122 |
Stock Appreciation Rights (SARs) And Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option outstanding | 0 | ||
Stock Appreciation Rights (SARs) And Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 4 years | ||
Stock Appreciation Rights (SARs) And Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 10 years | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding | 0 | 0 | |
Shares exercised | 2,900,000 | ||
Income tax benefit | $ 7,700 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding | 1,204,782 | 1,212,902 | |
Nonvested weighted average grant-date fair value | $ 19.82 | $ 17.85 | |
Restricted stock units, vesting schedules options one | 4 years | ||
Percentage of vesting on restricted stock, option one, Second anniversary | 50% | ||
Percentage of vesting on restricted stock, option one, Third anniversary | 25% | ||
Percentage of vesting on restricted stock, option one, Fourth anniversary | 25% | ||
Restricted stock units, vesting schedules options two | 4 years | ||
Percentage of vesting on restricted stock, option two, First anniversary | 25% | ||
Percentage of vesting on restricted stock, option two, Second anniversary | 25% | ||
Percentage of vesting on restricted stock, option two, Third anniversary | 25% | ||
Percentage of vesting on restricted stock, option two, Fourth anniversary | 25% | ||
Restricted stock units, vesting schedules options three | 3 years | ||
Percentage of vesting on restricted stock, option three, First anniversary | 33% | ||
Percentage of vesting on restricted stock, option three, Second anniversary | 33% | ||
Percentage of vesting on restricted stock, option three, Third anniversary | 33% | ||
Restricted stock units, vesting schedules options four | 1 year | ||
Percentage of vesting on restricted stock, option four, First anniversary | 100% | ||
Share based compensation | $ 10,700 | $ 10,300 | 9,700 |
Compensation expense related to unvested restricted stock unit based awards | $ 12,100 | ||
Weighted average period, Restricted stock units | 2 years 1 month 6 days | ||
Common Stock Subject to Vesting Requirements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 4 years | ||
Shares outstanding | 0 | 1,318 | |
Nonvested weighted average grant-date fair value | $ 16.17 | ||
Share based compensation | $ 10 | $ 15 | $ 400 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Stock Option Activity Under The Company's Stock Option Plans) (Details) - Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Option Shares, Beginning Balance | 30,000 | 180,000 |
Exercised, Option Shares | (30,000) | (150,000) |
Outstanding, Option Shares, Ending Balance | 30,000 | |
Exercisable, Option Shares | 30,000 | |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 | $ 4 |
Exercised, Weighted Average Exercise Price | $ 4 | 4 |
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 | |
Exercisable, Weighted Average Exercise Price | $ 4 |
Stock Based Compensation (Sum_2
Stock Based Compensation (Summary of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 29, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 1,212,902 |
Number of Shares, Granted | shares | 590,286 |
Number of Shares, Vested | shares | (562,945) |
Number of Shares, Forfeited | shares | (35,461) |
Outstanding, Option Shares, Ending Balance | shares | 1,204,782 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 17.85 |
Weighted average grant-date fair value | $ / shares | 21.40 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 17.34 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 18.91 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 19.82 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 22, 2024 $ / shares | Jan. 31, 2024 $ / shares | Jan. 05, 2024 | Oct. 06, 2023 | Jul. 07, 2023 | Apr. 07, 2023 | Jan. 06, 2023 | Oct. 06, 2022 | Jul. 30, 2022 USD ($) | Jul. 08, 2022 | Apr. 08, 2022 | Dec. 30, 2021 | Oct. 08, 2021 | Jul. 09, 2021 | Apr. 08, 2021 | Dec. 31, 2012 $ / shares | Dec. 29, 2023 USD ($) $ / shares shares | Dec. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jul. 30, 2002 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Number of shares available for future issuance under the plans | shares | 2,300,000 | |||||||||||||||||||
Stock repurchase authorized | $ 5,000,000 | |||||||||||||||||||
Additional stock repurchase authorized | $ 287,200,000 | $ 120,000,000 | ||||||||||||||||||
Amount available under repurchase plan | $ 13,900,000 | |||||||||||||||||||
Cumulative purchases | 273,200,000 | |||||||||||||||||||
Total cost | 734,000 | 116,572,000 | $ 13,040,000 | |||||||||||||||||
Cost of shares withheld and not issued | 3,782,000 | 3,225,000 | $ 21,566,000 | |||||||||||||||||
Cumulative cash used for repurchase of stock | $ 4,500,000 | $ 119,800,000 | ||||||||||||||||||
Dividend declared | $ / shares | $ 0.11 | $ 0.10 | $ 0.44 | $ 0.44 | $ 0.4 | |||||||||||||||
Dividend payment date | Jan. 05, 2024 | Oct. 06, 2023 | Jul. 07, 2023 | Apr. 07, 2023 | Jan. 06, 2023 | Oct. 06, 2022 | Jul. 08, 2022 | Apr. 08, 2022 | Dec. 30, 2021 | Oct. 08, 2021 | Jul. 09, 2021 | Apr. 08, 2021 | ||||||||
Dividend payment | $ 11,971,000 | $ 13,434,000 | $ 12,885,000 | |||||||||||||||||
Forecast [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Dividend declared | $ / shares | $ 0.11 | |||||||||||||||||||
Dividends payable, date of record | Mar. 22, 2024 | |||||||||||||||||||
Dividend payment date | Apr. 05, 2024 | |||||||||||||||||||
Dividend payable, year | 2024 | |||||||||||||||||||
Director [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Repurchase of common stock | shares | 31,000 | |||||||||||||||||||
Purchase price per share | $ / shares | $ 18.96 | $ 20.5 | ||||||||||||||||||
Total cost | $ 700,000 | $ 600,000 | ||||||||||||||||||
Share Repurchase Plan [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Repurchase of common stock | shares | 37,000 | 4,900,000 | ||||||||||||||||||
Purchase price per share | $ / shares | $ 18.96 | $ 23.69 | ||||||||||||||||||
Total cost | $ 700,000 | $ 116,600,000 | ||||||||||||||||||
Share Purchase Plan [member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Tender Offer | 4,900,000 | |||||||||||||||||||
Credit facility and cash on hand | $ 60,000,000 | |||||||||||||||||||
Purchase price per share | $ / shares | $ 23.72 | |||||||||||||||||||
Common stock issued and outstanding | 0.15 | |||||||||||||||||||
Total cost | $ 116,000,000 | |||||||||||||||||||
Cumulative [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Repurchase of common stock | shares | 33,200,000 | 33,200,000 | ||||||||||||||||||
Purchase price per share | $ / shares | $ 8.22 | $ 8.21 | ||||||||||||||||||
Tax Withholding [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Shares withheld and not issued | shares | 174,000 | 164,000 | ||||||||||||||||||
Cost of shares withheld and not issued | $ 3,800,000 | $ 3,200,000 | ||||||||||||||||||
Stock Option [Member] | ||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||||||
Percentage of eligible compensation allowed, per grant purchase | 10% | |||||||||||||||||||
Interval between employee stock purchases | 6 months | |||||||||||||||||||
Employee purchase price as percentage of trading value | 95% | |||||||||||||||||||
Aggregate fair market value of shares purchased by an employee | $ 25,000 | |||||||||||||||||||
Employee stock purchase plan, expiration date | Jul. 01, 2028 | |||||||||||||||||||
Total number of shares available for purchase under the plans | shares | 197,779 | |||||||||||||||||||
Shares issued under ESPP | shares | 43,668 | 40,622 | 41,504 | |||||||||||||||||
Proceeds from ESPP | $ 900,000 | $ 800,000 | $ 800,000 | |||||||||||||||||
Additional shares authorized | shares | 250,000 |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Percentage of pre-tax annual compensation contributed to the plan | 15% | ||
Percentage of matching contributions of employee | 40% | ||
Percentage of matching contributions of employee's gross salary | 6% | ||
Company's matching contributions | $ 0.8 | $ 0.9 | $ 0.8 |
Transactions with Related Par_2
Transactions with Related Parties (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Mar. 01, 2024 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Total cost | $ 734 | $ 116,572 | $ 13,040 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 37 | 31 | ||
Total cost | $ 700 | $ 600 | ||
Purchase price per share | $ 18.96 | $ 20.5 | ||
Director [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 43 | |||
Total cost | $ 1,100 | |||
Purchase price per share | $ 24.34 |
Litigation (Narrative) (Details
Litigation (Narrative) (Details) | Feb. 17, 2024 USD ($) |
Subsequent Event [Member] | |
Loss Contingencies [Line Items] | |
Payments for settlement | $ 985,000 |
Segment Information and Geogr_3
Segment Information and Geographical Data (Segment Information and Geographical Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 72,403 | $ 75,856 | $ 77,102 | $ 71,229 | $ 70,117 | $ 72,033 | $ 75,928 | $ 75,664 | $ 296,590 | $ 293,742 | $ 278,809 |
Segment profit | 84,351 | 89,481 | 83,826 | ||||||||
Corporate general and administrative expenses | 19,766 | 21,180 | 22,840 | ||||||||
Non-cash stock compensation expense | 10,724 | 10,267 | 10,122 | ||||||||
Acquisition-related compensation expense | 11 | ||||||||||
Depreciation and amortization | 3,421 | 3,437 | 4,377 | ||||||||
Restructuring and asset impairment (settlement) charge | (651) | ||||||||||
Legal settlement and related costs | 1,178 | ||||||||||
Interest expense, net | 3,235 | 144 | 95 | ||||||||
Income from continuing operations before income taxes | $ 10,836 | $ 12,929 | $ 11,869 | $ 10,393 | $ 13,549 | $ 14,021 | $ 14,153 | $ 13,381 | 46,027 | 55,104 | 46,381 |
Global S&BT [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 171,927 | 169,660 | 146,224 | ||||||||
Segment profit | 54,366 | 61,319 | 49,321 | ||||||||
Oracle Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 77,772 | 76,320 | 74,886 | ||||||||
Segment profit | 18,060 | 15,335 | 15,662 | ||||||||
SAP Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 46,891 | 47,762 | 57,699 | ||||||||
Segment profit | $ 11,925 | $ 12,827 | $ 18,843 |
Segment Information and Geogr_4
Segment Information and Geographical Data (Geographic Revenue before Reimbursements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 72,403 | $ 75,856 | $ 77,102 | $ 71,229 | $ 70,117 | $ 72,033 | $ 75,928 | $ 75,664 | $ 296,590 | $ 293,742 | $ 278,809 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 251,012 | 253,935 | 244,499 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 28,648 | 23,866 | 20,627 | ||||||||
Other (Australia, Canada, India and Uruguay) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 16,930 | 15,941 | 13,683 | ||||||||
Revenue from Continuing Operations Before Reimbursement [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 291,273 | $ 289,688 | $ 277,583 |
Segment Information and Geogr_5
Segment Information and Geographical Data (Long-Lived Assets Attributable To Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 105,990 | $ 103,827 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 91,065 | 89,705 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 14,481 | 13,640 |
Other (Australia, Canada, India and Uruguay) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 444 | $ 482 |
Segment Information and Geogr_6
Segment Information and Geographical Data (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 29, 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 | $ | $ 14.3 | $ 13.5 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Total revenue | $ 72,403 | $ 75,856 | $ 77,102 | $ 71,229 | $ 70,117 | $ 72,033 | $ 75,928 | $ 75,664 | $ 296,590 | $ 293,742 | $ 278,809 |
Operating income | 11,477 | 13,743 | 12,790 | 11,252 | 13,623 | 14,035 | 14,181 | 13,409 | 49,262 | 55,248 | 46,476 |
Income from continuing operations before income taxes | 10,836 | 12,929 | 11,869 | 10,393 | 13,549 | 14,021 | 14,153 | 13,381 | 46,027 | 55,104 | 46,381 |
Net income | $ 7,850 | $ 9,420 | $ 8,720 | $ 8,161 | $ 9,716 | $ 10,366 | $ 10,215 | $ 10,505 | $ 34,151 | $ 40,802 | $ 41,545 |
Basic net income per common share | $ 0.29 | $ 0.35 | $ 0.32 | $ 0.3 | $ 0.32 | $ 0.33 | $ 0.32 | $ 0.33 | $ 1.26 | $ 1.3 | $ 1.38 |
Diluted net income per common share | $ 0.28 | $ 0.34 | $ 0.32 | $ 0.3 | $ 0.31 | $ 0.32 | $ 0.32 | $ 0.33 | $ 1.24 | $ 1.28 | $ 1.26 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 31, 2021 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 856 | $ 2,702 | $ 605 |
Charge to Revenue/Expense | 258 | (965) | 2,068 |
Write-offs/(Reversals) | (42) | (2,811) | 29 |
Balance at End of Year | $ 1,072 | $ 856 | $ 2,702 |