Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'HACKETT GROUP, INC. | ' |
Entity Central Index Key | '0001057379 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 30,687,903 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $14,851 | $16,906 |
Accounts receivable and unbilled revenue, net of allowance of $1,585 and $1,251 at September 27, 2013 and December 28, 2012, respectively | 37,367 | 36,869 |
Deferred tax asset, net | 4,194 | 4,741 |
Prepaid expenses and other current assets | 3,116 | 2,335 |
Total current assets | 59,528 | 60,851 |
Restricted cash | 522 | 683 |
Property and equipment, net | 13,032 | 12,859 |
Other assets | 1,093 | 1,598 |
Goodwill, net | 75,967 | 76,220 |
Non-current deferred tax asset, net | ' | 1,710 |
Total assets | 150,142 | 153,921 |
Current liabilities: | ' | ' |
Accounts payable | 4,852 | 7,711 |
Accrued expenses and other liabilities | 21,831 | 26,484 |
Current portion of long-term debt | ' | 2,895 |
Total current liabilities | 26,683 | 37,090 |
Long-term deferred tax liability, net | 2,677 | ' |
Long-term debt | 15,026 | 22,105 |
Total liabilities | 44,386 | 59,195 |
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; 52,939,594 and 52,235,764 shares issued at September 27, 2013 and December 28, 2012, respectively | 53 | 52 |
Additional paid-in capital | 267,543 | 263,135 |
Treasury stock, at cost, 21,295,078 and 21,171,370 shares at September 27, 2013 and December 28, 2012, respectively | -75,038 | -74,444 |
Accumulated deficit | -81,990 | -89,513 |
Accumulated comprehensive loss | -4,812 | -4,504 |
Total shareholders' equity | 105,756 | 94,726 |
Total liabilities and shareholders' equity | $150,142 | $153,921 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Accounts receivable and unbilled revenue, allowance | $1,585 | $1,251 |
Preferred stock, par value | $0.00 | $0.00 |
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 | $0.00 | $0.00 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 52,939,594 | 52,235,764 |
Treasury stock, at cost, shares | 21,295,078 | 21,171,370 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Revenue: | ' | ' | ' | ' |
Revenue before reimbursements | $51,976 | $49,806 | $153,188 | $150,319 |
Reimbursements | 5,940 | 5,841 | 18,038 | 17,375 |
Total revenue | 57,916 | 55,647 | 171,226 | 167,694 |
Cost of service: | ' | ' | ' | ' |
Personnel costs before reimbursable expenses (includes $854 and $685 and $2,540 and $2,202 of stock compensation expense in the quarters and nine months ended September 27, 2013 and September 28, 2012, respectively) | 33,970 | 31,665 | 99,375 | 94,392 |
Reimbursable expenses | 5,940 | 5,841 | 18,038 | 17,375 |
Total cost of service | 39,910 | 37,506 | 117,413 | 111,767 |
Selling, general and administrative costs (includes $681 and $674 and $2,162 and $1,860 of stock compensation expense in the quarters and nine months ended September 27, 2013 and September 28, 2012, respectively) | 13,289 | 13,922 | 40,482 | 43,248 |
Restructuring benefit | ' | -319 | ' | -319 |
Total costs and operating expenses | 53,199 | 51,109 | 157,895 | 154,696 |
Income from operations | 4,717 | 4,538 | 13,331 | 12,998 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 2 | 2 | 6 | 19 |
Interest expense | -94 | -196 | -361 | -470 |
Income from continuing operations before income taxes | 4,625 | 4,344 | 12,976 | 12,547 |
Income tax expense | 1,926 | 1,751 | 5,318 | 2,265 |
Income from continuing operations | 2,699 | 2,593 | 7,658 | 10,282 |
(Loss) income from discontinued operations | -64 | 43 | -135 | -268 |
Net income | $2,635 | $2,636 | $7,523 | $10,014 |
Basic net income per common share: | ' | ' | ' | ' |
Income per common share from continuing operations | $0.09 | $0.09 | $0.25 | $0.32 |
(Loss) income per common share from discontinued operations | $0 | $0 | $0 | ($0.01) |
Net income per common share | $0.09 | $0.09 | $0.25 | $0.31 |
Diluted net income per common share: | ' | ' | ' | ' |
Income per common share from continuing operations | $0.08 | $0.08 | $0.24 | $0.30 |
(Loss) income per common share from discontinued operations | $0 | $0 | $0 | ($0.01) |
Net income per common share | $0.08 | $0.08 | $0.23 | $0.29 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 30,626,838 | 29,400,901 | 30,483,544 | 32,405,052 |
Diluted | 32,796,644 | 31,488,639 | 32,173,868 | 34,311,890 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share based compensation | ' | ' | $4,702 | $4,069 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share based compensation | 854 | 685 | 2,540 | 2,202 |
Selling General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share based compensation | $681 | $674 | $2,162 | $1,860 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $2,635 | $2,636 | $7,523 | $10,014 |
Foreign currency translation adjustment | 1,088 | 893 | -308 | 1,016 |
Total comprehensive income | $3,723 | $3,529 | $7,215 | $11,030 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $7,523 | $10,014 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation expense | 1,416 | 1,597 |
Amortization expense | 523 | 410 |
Provision for doubtful accounts | 478 | 488 |
Non-cash stock compensation expense | 4,702 | 4,069 |
Changes in assets and liabilities: | ' | ' |
Increase in accounts receivable and unbilled revenue | -1,252 | -1,761 |
Decrease in prepaid expenses and other assets | 1,792 | 2,003 |
Decrease in accounts payable | -2,858 | -2,279 |
Decrease in accrued expenses and other liabilities | -3,293 | -3,408 |
Net cash provided by operating activities | 9,031 | 11,133 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -1,619 | -2,564 |
Decrease in restricted cash | 161 | 202 |
Net cash used in investing activities | -1,458 | -2,362 |
Cash flows from financing activities: | ' | ' |
Debt proceeds | ' | 40,000 |
Repayment of borrowings | -9,974 | -12,000 |
Debt issuance costs | ' | -482 |
Proceeds from issuance of common stock | 924 | 751 |
Repurchases of common stock | -594 | -55,587 |
Net cash used in financing activities | -9,644 | -27,318 |
Effect of exchange rate on cash | 16 | 145 |
Net decrease in cash and cash equivalents | -2,055 | -18,402 |
Cash and cash equivalents at beginning of year | 16,906 | 32,936 |
Cash and cash equivalents at end of period | 14,851 | 14,534 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 451 | 123 |
Cash paid for interest | $262 | $407 |
Basis_of_Presentation_and_Gene
Basis of Presentation and General Information | 9 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation and General Information [Abstract] | ' |
Basis Of Presentation And General Information | ' |
1. Basis of Presentation and General Information | |
Basis of Presentation | |
The accompanying consolidated financial statements of The Hackett Group, Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation. | |
In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 28, 2012, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter and nine months ended September 27, 2013, are not necessarily indicative of the results to be expected for any future period or for the full fiscal year. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Fair Value | |
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of September 27, 2013 and December 28, 2012, the carrying amount of each financial instrument, with the exception of debt, 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. | |
Recently Issued Accounting Standards | |
In March 2013, the FASB issued guidance on a parent company’s accounting for the cumulative translation adjustment upon de-recognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity, which amends current accounting guidance on foreign currency matters. This guidance requires that the entire amount of a cumulative translation adjustment related to an entity’s investment in a foreign entity be released when there has been a: (i) sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity, (ii) loss of a controlling financial interest in an investment in a foreign entity, and (iii) step acquisition for a foreign entity. This guidance will be effective for the Company beginning in the first quarter of 2014. The Company does not expect the adoption to have a material impact on its consolidated financial statements. | |
In July 2013, the FASB issued guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance will be effective for the Company beginning in the first quarter of 2014. The Company does not expect the adoption to have a material impact on its consolidated financial statements. | |
Reclassifications | |
Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. | |
Net_Income_Per_Common_Share
Net Income Per Common Share | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Net Income Per Common Share [Abstract] | ' | ||||||||||||
Net Income Per Common Share | ' | ||||||||||||
2. Net Income per Common Share | |||||||||||||
Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units. | |||||||||||||
Dilutive net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. | |||||||||||||
The following table reconciles basic and dilutive weighted average common shares: | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Basic weighted average common shares outstanding | 30,626,838 | 29,400,901 | 30,483,544 | 32,405,052 | |||||||||
Effect of dilutive securities: | |||||||||||||
Unvested restricted stock units and common stock subject to | |||||||||||||
vesting requirements issued to employees and non-employees | 2,159,234 | 2,057,492 | 1,676,932 | 1,858,667 | |||||||||
Common stock issuable upon the exercise of stock options | 10,572 | 30,246 | 13,392 | 48,171 | |||||||||
Dilutive weighted average common shares outstanding | 32,796,644 | 31,488,639 | 32,173,868 | 34,311,890 | |||||||||
Approximately 0.8 million and 3.9 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended September 27, 2013 and September 28, 2012, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share. This decrease is attributable to the conversion of 2.9 million performance-based stock options, granted during the quarter ended March 30, 2012, into stock appreciation rights (“SARs”), which will be settled in cash, Company stock or any combination thereof, at the Company’s discretion (see Note 6). | |||||||||||||
Accounts_Receivable_And_Unbill
Accounts Receivable And Unbilled Revenue, Net | 9 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Accounts Receivable And Unbilled Revenue, Net [Abstract] | ' | ||||||
Accounts Receivable And Unbilled Revenue, Net | ' | ||||||
3. Accounts Receivable and Unbilled Revenue, Net | |||||||
Accounts receivable and unbilled revenue, net, consisted of the following (in thousands): | |||||||
September 27, | December 28, | ||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 29,686 | $ | 31,260 | |||
Unbilled revenue | 9,266 | 6,860 | |||||
Allowance for doubtful accounts | -1,585 | -1,251 | |||||
Accounts receivable and unbilled revenue, net | $ | 37,367 | $ | 36,869 | |||
Accounts receivable is net of uncollected advanced billings. Unbilled revenue includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients. | |||||||
Credit_Facility
Credit Facility | 9 Months Ended | |
Sep. 27, 2013 | ||
Credit Facility [Abstract] | ' | |
Credit Facility | ' | |
4. Credit Facility | ||
On February 21, 2012, the Company entered into a credit agreement with Bank of America, N.A. ("Bank of America"), pursuant to which Bank of America agreed to lend the Company up to $20.0 million pursuant to a revolving line of credit (the “Revolver”) and up to $30.0 million pursuant to a five-year term loan (the “Term Loan”), which was used to finance the Company's $55.0 million tender offer for its shares in March 2012 (see Note 7). | ||
4. Credit Facility (continued) | ||
On August 27, 2013, the Company amended and restated the credit agreement (the "Credit Agreement") with Bank of America to finance a tender offer for shares of its common stock completed in October 2013 (see Note 7). The Credit Agreement was amended and restated to: | ||
· | provide for up to additional $17.0 million of borrowing under the Term Loan (the "Amended Term Loan" and together with the Revolver, the "Credit Facility") and | |
· | extend the maturity date on the Revolver and the Amended Term Loan to August 27, 2018, five years from the date of the amendment and restatement of the Credit Agreement. | |
As of September 27, 2013, the Company had $15.0 million principal amount outstanding on the Amended Term Loan and a zero balance outstanding on the Revolver. Subsequent to September 27, 2013, the Company incurred an additional $7.0 million in principal amount of indebtedness under the Amended Term Loan, for a total outstanding principal balance of $22.0 million as of October 30, 2013 (see Note 7). | ||
The obligations of the Company under the Credit Facility are guaranteed by the active existing and future material U.S. subsidiaries of the Company and are secured by substantially all of the existing and future property and assets of the Company (subject to certain exceptions). | ||
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 LIBOR base 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 September 27, 2013, the applicable margin percentage was 1.50% per annum based on the consolidated leverage ratio, in the case of LIBOR rate advances, and 1.00% per annum, in the case of base rate advances. | ||
The Term Loan requires amortization principal payments in equal quarterly installments beginning December 31, 2013 through August 27, 2018. The Company is subject to certain covenants and exceptions, including total consolidated leverage, fixed cost coverage and liquidity requirements, as defined in the Credit Agreement. | ||
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 27, 2013 | |
Discontinued Operations [Abstract] | ' |
Discontinued Operations | ' |
5. Discontinued Operations | |
During the quarter ended March 29, 2013, the Company exited the Oracle ERP implementation business. This transaction was not material to the Company’s consolidated financial statements. | |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 27, 2013 | |
Stock Based Compensation [Abstract] | ' |
Stock Based Compensation | ' |
6. Stock Based Compensation | |
During the nine months ended September 27, 2013, the Company issued 1,253,206 restricted stock units at a weighted average grant-date fair value of $4.67 per share. As of September 27, 2013, the Company had 2,983,241 restricted stock units outstanding at a weighted average grant-date fair value of $4.16 per share. As of September 27, 2013, $8.0 million of total restricted stock unit compensation expense related to unvested awards had not been recognized and is expected to be recognized over a weighted average period of 1.9 years. | |
As of September 27, 2013, the Company had 314,850 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $3.43 per share. As of September 27, 2013, $0.2 million of compensation expense related to common stock subject to vesting requirements had not been recognized and is expected to be recognized over a weighted average period of less than one year. | |
On February 8, 2012, the Compensation Committee approved the fiscal year 2012 through 2015 equity compensation target for the Company’s Chief Executive Officer and Chief Operating Officer. Under this target, a single performance-based option grant was made to the Company’s Chief Executive Officer and the Chief Operating Officer of 1,912,500 options and 1,004,063 options, respectively, totaling 2,916,563 options, each with an exercise price of $4.00 and a fair value of $0.96. One-half of the options vest upon the achievement of at least 50% growth of pro forma earnings per share and the remaining half vest upon the achievement of at least 50% pro forma EBITDA growth. Each metric can be achieved at any time during the six-year term of the award based on a trailing twelve month period measured quarterly. | |
In March of 2013 these performance-based stock option grants were surrendered by the Company’s Chief Executive Officer and Chief Operating Officer and replaced with performance-based SARs, equal to the number of options. The terms and conditions and the specific performance targets applicable to the SARs are the same to those applicable to the replaced options, with the exception that the SARs will be settled in cash, stock or any combination thereof, at the Company’s discretion. | |
6. Stock Based Compensation (continued) | |
Although the targets for the performance-based SARs have not been achieved as of September 27, 2013, the Company has recorded $0.1 million and $0.4 million of compensation expense for the quarter and nine months ended September 27, 2013, respectively, and $0.2 million and $0.5 million for the quarter and nine months ended September 28, 2012, respectively, related to these SARs. | |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 27, 2013 | |
Shareholders' Equity [Abstract] | ' |
Shareholders' Equity | ' |
7. Shareholders’ Equity | |
Tender Offer | |
On August 28, 2013, the Company announced a tender offer to purchase up to $35.75 million in value of shares of its common stock, $0.001 par value per share, at a price not greater than $6.50 nor less than $5.75 per share, to the seller in cash, less any applicable withholding taxes and without interest (the "Offer"). On September 26, 2013, the Company amended the Offer (the "Amended Offer") to increase the price range at which it would purchase its common stock to a range of not greater than $7.00 nor less than $6.50 per share and to decrease the dollar amount of the Offer to $25.0 million. The Amended Offer was completed on October 15, 2013, with the Company purchasing approximately 1.0 million shares of its common stock at a purchase price of $7.00 per share, for an aggregate cost of approximately $6.9 million, excluding fees and expenses related to the Amended Offer. The 1.0 million shares represented approximately 3.1% of the Company's issued and outstanding shares of common stock at that time. The Company financed the Amended Offer from borrowings under the Amended Term Loan under its existing Credit Facility (see Note 4). | |
On March 21, 2012, the Company completed a tender offer to purchase 11.0 million shares of its common stock at a purchase price of $5.00 per share, for an aggregate cost of approximately $55.0 million, excluding fees and expenses relating to the tender offer. The 11.0 million shares accepted for purchase represented approximately 27% of the Company’s issued and outstanding shares of common stock at that time. | |
Share Repurchase Plan | |
Under the Company’s share repurchase plan, the Company may buy back shares of its outstanding stock either on the open market or through privately negotiated transactions subject to market conditions and trading restrictions. During the quarter ended September 27, 2013, the Company did not buy back any shares under its share repurchase plan. During the nine months ended September 27, 2013, the Company repurchased approximately 124 thousand shares of its common stock at an average price of $4.80, for a total cost of approximately $594 thousand. As of September 27, 2013, the Company had approximately $5.0 million available under its share repurchase plan authorization. | |
Subsequent to September 27, 2013, the Company's Board of Directors approved the repurchase of an additional $5.0 million of the Company's common stock, thereby increasing the program size to $85.0 million, and leaving $10.0 million available under its share repurchase plan authorization. | |
Litigation
Litigation | 9 Months Ended |
Sep. 27, 2013 | |
Litigation [Abstract] | ' |
Litigation | ' |
8. Litigation | |
The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. | |
Geographic_And_Group_Informati
Geographic And Group Information | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Geographic And Group Information [Abstract] | ' | ||||||||||||
Geographic And Group Information | ' | ||||||||||||
9. Geographic and Group Information | |||||||||||||
Revenue is primarily based on the country of the contracting entity and was attributed to the following geographical areas (in thousands): | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | |||||||||||||
North America | $ | 47,377 | $ | 44,663 | $ | 136,323 | $ | 131,627 | |||||
International (primarily European countries) | 10,539 | 10,984 | 34,903 | 36,067 | |||||||||
Total revenue | $ | 57,916 | $ | 55,647 | $ | 171,226 | $ | 167,694 | |||||
9. Geographic and Group Information (continued) | |||||||||||||
Long-lived assets are attributable to the following geographic areas (in thousands): | |||||||||||||
September 27, | December 28, | ||||||||||||
2013 | 2012 | ||||||||||||
Long-lived assets: | |||||||||||||
North America | $ | 74,102 | $ | 74,407 | |||||||||
International (primarily European countries) | 15,990 | 16,270 | |||||||||||
Total long-lived assets | $ | 90,092 | $ | 90,677 | |||||||||
As of September 27, 2013, foreign assets included $15.5 million of goodwill related to the Archstone and REL acquisitions. As of December 28, 2012, foreign assets included $15.6 million of goodwill related to the REL and Archstone acquisitions and $0.1 million of intangible assets related to the Archstone acquisition. | |||||||||||||
The Company’s revenue was derived from the following service groups (in thousands): | |||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
The Hackett Group | $ | 48,689 | $ | 45,429 | $ | 139,960 | $ | 142,657 | |||||
ERP Solutions | 9,227 | 10,218 | 31,266 | 25,037 | |||||||||
Total revenue | $ | 57,916 | $ | 55,647 | $ | 171,226 | $ | 167,694 | |||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 27, 2013 | |
Subsequent Event [Abstract] | ' |
Subsequent Event | ' |
10. Subsequent Events | |
Subsequent to September 27, 2013, the Company completed a tender offer in which it repurchased approximately 1.0 million shares of its common stock at a purchase price of $7.00 per share for an aggregate cost of approximately $6.9 million, excluding fees and expenses related to the Amended Offer (see Note 7). | |
Subsequent to September 27, 2013, the Company's Board of Directors approved the repurchase of an additional $5.0 million of the Company's common stock, thereby increasing the program size to $85.0 million, and leaving $10.0 million available under its share repurchase plan authorization. | |
On November 5, 2013, the Company announced that its Board of Directors declared an annual cash dividend of $0.10 per common share payable to holders of record on December 10, 2013. The dividend will be paid on December 20, 2013. | |
Basis_of_Presentation_and_Gene1
Basis of Presentation and General Information (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation and General Information [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements of The Hackett Group, Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation. | |
In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 28, 2012, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter and nine months ended September 27, 2013, are not necessarily indicative of the results to be expected for any future period or for the full fiscal year. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Fair Value | ' |
Fair Value | |
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of September 27, 2013 and December 28, 2012, the carrying amount of each financial instrument, with the exception of debt, 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. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In March 2013, the FASB issued guidance on a parent company’s accounting for the cumulative translation adjustment upon de-recognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity, which amends current accounting guidance on foreign currency matters. This guidance requires that the entire amount of a cumulative translation adjustment related to an entity’s investment in a foreign entity be released when there has been a: (i) sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity, (ii) loss of a controlling financial interest in an investment in a foreign entity, and (iii) step acquisition for a foreign entity. This guidance will be effective for the Company beginning in the first quarter of 2014. The Company does not expect the adoption to have a material impact on its consolidated financial statements. | |
In July 2013, the FASB issued guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance will be effective for the Company beginning in the first quarter of 2014. The Company does not expect the adoption to have a material impact on its consolidated financial statements. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. | |
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Net Income Per Common Share [Abstract] | ' | ||||||||||||
Basic And Diluted Weighted Average Shares | ' | ||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Basic weighted average common shares outstanding | 30,626,838 | 29,400,901 | 30,483,544 | 32,405,052 | |||||||||
Effect of dilutive securities: | |||||||||||||
Unvested restricted stock units and common stock subject to | |||||||||||||
vesting requirements issued to employees and non-employees | 2,159,234 | 2,057,492 | 1,676,932 | 1,858,667 | |||||||||
Common stock issuable upon the exercise of stock options | 10,572 | 30,246 | 13,392 | 48,171 | |||||||||
Dilutive weighted average common shares outstanding | 32,796,644 | 31,488,639 | 32,173,868 | 34,311,890 | |||||||||
Accounts_Receivable_And_Unbill1
Accounts Receivable And Unbilled Revenue, Net (Tables) | 9 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Accounts Receivable And Unbilled Revenue, Net [Abstract] | ' | ||||||
Accounts Receivable And Unbilled Revenue, Net | ' | ||||||
September 27, | December 28, | ||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 29,686 | $ | 31,260 | |||
Unbilled revenue | 9,266 | 6,860 | |||||
Allowance for doubtful accounts | -1,585 | -1,251 | |||||
Accounts receivable and unbilled revenue, net | $ | 37,367 | $ | 36,869 | |||
Geographic_And_Group_Informati1
Geographic And Group Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Geographic And Group Information [Abstract] | ' | ||||||||||||
Geographic Revenue | ' | ||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | |||||||||||||
North America | $ | 47,377 | $ | 44,663 | $ | 136,323 | $ | 131,627 | |||||
International (primarily European countries) | 10,539 | 10,984 | 34,903 | 36,067 | |||||||||
Total revenue | $ | 57,916 | $ | 55,647 | $ | 171,226 | $ | 167,694 | |||||
Long-Lived Assets Attributable To Geographic Area | ' | ||||||||||||
September 27, | December 28, | ||||||||||||
2013 | 2012 | ||||||||||||
Long-lived assets: | |||||||||||||
North America | $ | 74,102 | $ | 74,407 | |||||||||
International (primarily European countries) | 15,990 | 16,270 | |||||||||||
Total long-lived assets | $ | 90,092 | $ | 90,677 | |||||||||
Revenue By Service Group | ' | ||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
The Hackett Group | $ | 48,689 | $ | 45,429 | $ | 139,960 | $ | 142,657 | |||||
ERP Solutions | 9,227 | 10,218 | 31,266 | 25,037 | |||||||||
Total revenue | $ | 57,916 | $ | 55,647 | $ | 171,226 | $ | 167,694 | |||||
Net_Income_Per_Common_Share_Na
Net Income Per Common Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 |
Stock Appreciation Rights (SARs) [Member] | |||
Antidilutive common share equivalents | 0.8 | 3.9 | ' |
Number of performance-based options converted into stock appreciation rights units | ' | ' | 2.9 |
Net_Income_Per_Common_Share_Ba
Net Income Per Common Share (Basic And Diluted Weighted Average Shares) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Net Income Per Common Share [Abstract] | ' | ' | ' | ' |
Basic weighted average common shares outstanding | 30,626,838 | 29,400,901 | 30,483,544 | 32,405,052 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees | 2,159,234 | 2,057,492 | 1,676,932 | 1,858,667 |
Common stock issuable upon the exercise of stock options | 10,572 | 30,246 | 13,392 | 48,171 |
Diluted weighted average common shares outstanding | 32,796,644 | 31,488,639 | 32,173,868 | 34,311,890 |
Accounts_Receivable_And_Unbill2
Accounts Receivable And Unbilled Revenue (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivable And Unbilled Revenue, Net [Abstract] | ' | ' |
Accounts receivable | $29,686 | $31,260 |
Unbilled revenue | 9,266 | 6,860 |
Allowance for doubtful accounts | -1,585 | -1,251 |
Accounts receivable and unbilled revenue, net | $37,367 | $36,869 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | Mar. 21, 2012 | Sep. 27, 2013 | Feb. 21, 2012 | Sep. 27, 2013 | Feb. 21, 2012 | Sep. 27, 2013 | Aug. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Oct. 30, 2013 |
In Millions, unless otherwise specified | Revolving Line Of Credit Facility [Member] | Revolving Line Of Credit Facility [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Line Of Credit Facility And Term Loan [Member] | Revolving Line Of Credit Facility And Term Loan [Member] | LIBOR Rate [Member] | Base Rate [Member] | Subsequent Event [Member] | |
Term Loan [Member] | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under credit facility | ' | ' | $20 | ' | $30 | ' | ' | ' | ' | ' |
Credit facility amount outstanding | ' | 0 | ' | 15 | ' | ' | ' | ' | ' | ' |
Term of debt | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' |
Stock repurchase cost of tender offer net of fees and expenses related to tender offer | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' |
Maturity date | ' | ' | ' | 27-Aug-18 | ' | 27-Aug-18 | ' | ' | ' | ' |
Additional amount drawn on loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22 |
Margin percentage base rate | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.00% | ' |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 08, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Feb. 08, 2012 | Sep. 27, 2013 | Feb. 08, 2012 | Feb. 08, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Restricted Stock Units (RSUs) [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | ||||
Chief Executive Officer [Member] | Chief Operating Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Growth of Pro-forma EPS Percentage | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Growth of Pro-forma EBITDA percentage | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | ' | 1,253,206 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value | ' | ' | ' | $4.67 | $0.96 | ' | ' | ' | ' | ' | ' | ' |
Weighted average period, Restricted stock units | ' | ' | ' | '1 year 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period, Common stock | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance based stock option grant, Exercise price | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trailing period | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' |
Performance based stock option grant | ' | ' | ' | ' | 2,916,563 | ' | 1,912,500 | 1,004,063 | ' | ' | ' | ' |
Total share based compensation | ' | $4,702,000 | $4,069,000 | ' | ' | ' | ' | ' | $100,000 | $400,000 | $200,000 | $500,000 |
Restricted stock units outstanding | ' | ' | ' | 2,983,241 | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested weighted average grant-date fair value | ' | ' | ' | $4.16 | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expenses related to unvested restricted stock unit based awards | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares subject to vesting requirements | ' | 314,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested weighted average grant-date fair value, Common stock | ' | $3.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to common stock subject to vesting requirements | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of the award | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Sep. 29, 2013 | Sep. 27, 2013 | Dec. 28, 2012 | Mar. 21, 2012 | Mar. 21, 2012 | Sep. 26, 2013 | Aug. 28, 2013 | Sep. 26, 2013 | Aug. 28, 2013 | Sep. 26, 2013 | Aug. 28, 2013 | Oct. 15, 2013 | |
2012 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | Subsequent Event [Member] | |||||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | 2013 Tender Offer [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional stock repurchase authorized | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase authorized | 85,000,000 | ' | ' | ' | ' | 25,000,000 | 35,750,000 | ' | ' | ' | ' | 6,900,000 |
Stock repurchase sahres authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Common stock, par value | ' | $0.00 | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' |
Purchase price per share | ' | $4.80 | ' | ' | ' | ' | ' | $6.50 | $5.75 | $7 | $6.50 | $7 |
Percentage of issued and outstanding shares repurchased in tender offer | ' | ' | ' | ' | 27.00% | ' | ' | ' | ' | ' | ' | 3.10% |
Number of stock repurchased in tender offer | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' |
Price per share repurchased in tender offer | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase cost of tender offer net of fees and expenses related to tender offer | ' | ' | ' | 55,000,000 | 55,000,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | ' | 124,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cost | ' | 594,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available under repurchase plan | $10,000,000 | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic_And_Group_Informati2
Geographic And Group Information (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Geographic And Group Information [Abstract] | ' | ' |
Goodwill included in foreign assets | $15.50 | $15.60 |
Intangible assets included in foreign assets | ' | $0.10 |
Geographic_And_Group_Informati3
Geographic And Group Information (Geographic Revenue) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | $57,916 | $55,647 | $171,226 | $167,694 |
North America [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 47,377 | 44,663 | 136,323 | 131,627 |
International Primarily European Countries [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | $10,539 | $10,984 | $34,903 | $36,067 |
Geographic_And_Group_Informati4
Geographic And Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total long-lived assets | $90,092 | $90,677 |
North America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total long-lived assets | 74,102 | 74,407 |
International Primarily European Countries [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total long-lived assets | $15,990 | $16,270 |
Geographic_And_Group_Informati5
Geographic And Group Information (Revenue By Service Group) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | $57,916 | $55,647 | $171,226 | $167,694 |
The Hackett Group [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | 48,689 | 45,429 | 139,960 | 142,657 |
ERP Solutions [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | $9,227 | $10,218 | $31,266 | $25,037 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 05, 2013 | Sep. 29, 2013 | Sep. 27, 2013 | Sep. 26, 2013 | Aug. 28, 2013 | Oct. 15, 2013 | Sep. 26, 2013 | Aug. 28, 2013 | Sep. 26, 2013 | Aug. 28, 2013 |
2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | 2013 Tender Offer [Member] | ||||
Subsequent Event [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase sahres authorized | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Purchase price per share | ' | ' | $4.80 | ' | ' | $7 | $7 | $6.50 | $6.50 | $5.75 |
Stock repurchase authorized | ' | $85,000,000 | ' | $25,000,000 | $35,750,000 | $6,900,000 | ' | ' | ' | ' |
Additional stock repurchase authorized | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available under repurchase plan | ' | $10,000,000 | $5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Dividend declared | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |