The Hackett Group, Inc. (HCKT) 10-Q 11 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2016	May. 06, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	HACKETT GROUP, INC.
Entity Central Index Key	1,057,379
Document Type	10-Q
Document Period End Date	Apr. 1, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,706,194

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 01, 2016	Jan. 01, 2016
Current assets:
Cash and cash equivalents	$ 12,649,000	$ 23,503,000
Accounts receivable and unbilled revenue, net of allowance of $2,246 and $1,881 at April 1, 2016 and January 1, 2016, respectively	47,131,000	42,046,000
Prepaid expenses and other current assets	2,350,000	1,938,000
Total current assets	62,130,000	67,487,000
Property and equipment, net	13,948,000	14,102,000
Other assets	3,909,000	4,206,000
Goodwill, net	74,227,000	74,584,000
Total assets	154,214,000	160,379,000
Current liabilities:
Accounts payable	10,797,000	8,300,000
Accrued expenses and other liabilities	32,285,000	41,812,000
Total current liabilities	43,082,000	50,112,000
Long-term deferred tax liability, net	10,867,000	8,123,000
Total liabilities	$ 53,949,000	$ 58,235,000
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; 54,599,310 and 53,847,479 shares issued at April 1, 2016 and January 1, 2016, respectively	$ 54,000	$ 54,000
Additional paid-in capital	271,568,000	272,887,000
Treasury stock, at cost, 24,446,065 and 24,138,694 shares April 1, 2016 and January 1, 2016, respectively	(96,946,000)	(92,691,000)
Accumulated deficit	(65,752,000)	(70,134,000)
Accumulated comprehensive loss	(8,659,000)	(7,972,000)
Total shareholders' equity	100,265,000	102,144,000
Total liabilities and shareholders' equity	$ 154,214,000	$ 160,379,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2016	Jan. 01, 2016
Consolidated Balance Sheets [Abstract]
Accounts receivable and unbilled revenue, allowance	$ 2,246	$ 1,881
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	54,599,310	53,847,479
Treasury stock, at cost, shares	24,446,065	24,138,694

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Revenue:
Revenue before reimbursements	$ 61,973	$ 54,905
Reimbursements	6,805	6,069
Total revenue	68,778	60,974
Cost of service:
Personnel costs before reimbursable expenses (includes $1,315 and $1,309 of stock compensation expense in the quarters ended April 1, 2016 and April 3, 2015, respectively)	39,666	34,946
Reimbursable expenses	6,805	6,069
Total cost of service	46,471	41,015
Selling, general and administrative costs (includes $597 and $515 of stock compensation expense in the quarters ended April 1, 2016 and April 3, 2015, respectively)	15,067	15,324
Total costs and operating expenses	61,538	56,339
Income from operations	7,240	4,635
Other income (expense):
Interest income		2
Interest expense	(41)	(140)
Income from operations before income taxes	7,199	4,497
Income tax expense	2,817	1,492
Net income	$ 4,382	$ 3,005
Basic net income per common share:
Income per common share from operations	$ 0.15	$ 0.11
Weighted average common shares outstanding	29,889,761	28,551,665
Diluted net income per common share:
Income per common share from operations	$ 0.13	$ 0.10
Weighted average common and common equivalent shares outstanding	33,353,188	29,917,316

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	$ 1,912	$ 1,825
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	1,315	1,309
Selling General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	$ 597	$ 515

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 4,382	$ 3,005
Foreign currency translation adjustment	(687)	(1,336)
Total comprehensive income	$ 3,695	$ 1,669

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Cash flows from operating activities:
Net income	$ 4,382	$ 3,005
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense	637	612
Amortization expense	275	547
Amortization of debt issuance costs	25	14
Non-cash stock compensation expense	1,912	1,825
(Reversal) provision for doubtful accounts	(36)	159
(Gain) loss on foreign currency translation	(250)	206
Increase in deferred tax liability	2,743	1,464
Changes in assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable and unbilled revenue	(4,746)	(5,136)
Increase in prepaid expenses and other assets	(415)	(74)
Increase (decrease) in accounts payable	2,497	(2,487)
Decrease in accrued expenses and other liabilities	(6,488)	(474)
Net cash provided by (used in) operating activities	536	(339)
Cash flows from investing activities:
Purchases of property and equipment	(487)	(725)
Net cash used in investing activities	(487)	(725)
Cash flows from financing activities:
Dividends paid	(3,199)
Repurchases of common stock	(7,693)	(2,718)
Net cash used in financing activities	(10,892)	(2,718)
Effect of exchange rate on cash	(11)	(6)
Net decrease in cash and cash equivalents	(10,854)	(3,788)
Cash and cash equivalents at beginning of period	23,503	14,608
Cash and cash equivalents at end of period	12,649	10,820
Supplemental disclosure of cash flow information:
Cash paid for income taxes	2,399	164
Cash paid for interest	$ 13	$ 122

Basis Of Presentation And Gener

Basis Of Presentation And General Information	3 Months Ended
	Apr. 01, 2016
Basis Of Presentation And General Information [Abstract]
Basis Of Presentation And General Information	1. Basi s 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 January 1, 2016, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter ended April 1, 2016, 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, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt . As of April 1, 2016 and January 1, 2016, 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. Business Combinations The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, that may be up to 12 months from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations.  Recently Issued Accounting Standards In May 2014, the FASB issued guidance on revenue recognition, which provides for a single, principles-based model for revenue recognition and replaces the existing revenue recognition guidance. The guidance is effective for annual and interim periods beginning on or after December 15, 2017 and will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a retrospective or cumulative effect transition method and early adoption is permitted, however not before December 15, 2016. The Company has not yet selected a transition method and is in the process of evaluating the effect this standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued amendments to its guidance which are intended to simplify the balance sheet presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. The amendments are effective for annual and interim periods beginning after December 15, 2015 and requires a retrospective transition method. Early adoption is permitted for financial statements that have not been previously issued. This adoption did not have a material impact on the Company’s consolidated financial statements. On November 20, 2015, the FASB issued guidance which requires an entity to present all deferred tax assets and liabilities as non-current in a classified balance sheet. The update becomes effective January 1, 2017, however early adoption is permitted. The Company chose early adoption for the periods presented. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance . The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases in the statement of financial position. Accounting applied by lessors will remain largely consistent with previous guidance, additional changes set to align lessor accounting with the revised lessee model and the FASB’s revenue recognition guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance on employee share-based payment accounting , T he goal of which is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this new guidance. Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. The Company reclassified on the Consolidated Statements of Cash Flows the dollar value of shares having a value equal to tax withholding, which were withheld and never issued. In lieu of issuing the shares, taxes were paid on the employee’s behalf. In the first quarter of 2016 and 2015, $3.4 million and $2.1 million, respectively, related to the net shares withheld was reclassified from cash flows from operations to cash flows from financing activities to conform to current period presentation. 

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Apr. 01, 2016
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  April 1, April 3,  2016 2015   Basic weighted average common shares outstanding 29,889,761 28,551,665   Effect of dilutive securities:  Unvested restricted stock units and common stock subject to  vesting requirements issued to employees and non-employees 1,196,529 847,951  Common stock issuable upon the exercise of stock options and SARs 2,266,897 517,700  Dilutive weighted average common shares outstanding 33,353,188 29,917,316   Approximately 0.9 million and 0.6 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended April 1, 2016 and April 3, 2015 , respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.

Accounts Receivable And Unbille

Accounts Receivable And Unbilled Revenue, Net	3 Months Ended
	Apr. 01, 2016
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):      April 1, January 1,  2016 2016  Accounts receivable $ 36,219 $ 33,159  Unbilled revenue 13,158 10,768  Allowance for doubtful accounts (2,246) (1,881)  Accounts receivable and unbilled revenue, net $ 47,131 $ 42,046  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 clie nts.

Accrued Expenses And Other Liab

Accrued Expenses And Other Liabilities	3 Months Ended
	Apr. 01, 2016
Accrued Expenses And Other Liabilities [Abstract]
Accrued Expenses And Other Liabilities	4. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands):     April 1, January 1,  2016 2016  Accrued compensation and benefits $ 6,935 $ 3,934  Accrued bonuses 3,519 13,279  Accrued dividend payable — 3,199  Deferred revenue 13,628 11,433  Accrued sales, use, franchise and VAT tax 2,529 1,946  Non-cash stock compensation accrual 2,495 2,704  Income tax payable 716 3,087  Other accrued expenses 2,463 2,230  Total accrued expenses and other liabilities $ 32,285 $ 41,812  

Credit Facility

Credit Facility	3 Months Ended
	Apr. 01, 2016
Credit Facility [Abstract]
Credit Facility	5 . Credit Facility 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 $47.0 million pursuant to a Term Loan. During 2015 the Company paid off the remaining balance on both the Term Loan and Revolver. As of April 1, 2016 and January 1, 2016, the Company had fully utilized and paid off its Term Loan and had no outstanding balance on the Revolver. On May 9 , 2016, the Company amended and restated the credit agreement with Bank of America to: · Provide for up to an additional $25.0 million of borrowing under the Revolver for a total borrowing capacity of $45.0 million; and · Extend the maturity date on the Revolver to May 9, 2021 , five years from the date of this amendment of the Credit Agreement. 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, a 100% pledge of the capital stock of the U.S. Subsidiaries, and a 66% pledge of the capital stock of Hackett’s direct foreign subsidiaries (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 April 1, 2016, the applicable margin percentage was 1.50% per annum based on the consolidated leverage ratio, in the case of LIBOR rate advances, and 0.75% per annum, in the case of base rate advances. 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.

Acquisition

Acquisition	3 Months Ended
	Apr. 01, 2016
Acquisition [Abstract]
Acquisition	 6 . Acquisition During the quarter ended March 28, 2014, the Company acquired the U.S., Canada and Uruguay operations of Technolab International Corporation ("Technolab"). At closing, the Seller received $3.0 million in cash, not subject to vesting, and $1.0 million in shares subject to vesting, which is being recorded as non-cash compensation over the service vesting period. The seller also earned an additional $8.0 million in a combination of cash, not subject to service vesting, and stock, subject to service vesting, based on a one-year profitability-based earn-out contingent upon actual results achieved. The stock portion of the earn-out is being recorded as compensation expense over the service vesting period. During the third quarter of 2015, the Company settled the contingent earn-out with cash and stock issuances in accordance with the agreement. 

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Apr. 01, 2016
Stock Based Compensation [Abstract]
Stock Based Compensation	7 . Stock Based Compensation During the nine months ended April 1, 2016, the Company issued 533,059 restricted stock units at a weighted average grant-date fair value of $ 13.32 per share. As of April 1, 2016, the Company had 1,908,599 restricted stock units outstanding at a weighted average grant-date fair value of $ 9.06 per share. As of April 1, 2016, $12.7 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 approximately 2.17 years. During the quarter April 1, 2016, 240, 820 shares of common stock subject to vesting requirements were issued. These shares related to the consideration for the 2014 acquisition of Technolab. As of April 1, 2016, the Company had 505,060 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $10.95 per share. As of April 1, 2016, $ 3.9 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 approximately 2.3 years . 

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 01, 2016
Shareholders' Equity [Abstract]
Shareholders' Equity	8 . Shareholders’ Equity Stock Appreciation Rights (“SARs”) In 2012, the Company’s CEO and COO agreed to give up 50% of their equity incentive compensation awards for Plan years 2012 through 2015 in exchange for 2.9 million SARs with an exercise price of $4.00 , only to be earned upon the achievement of 50% growth in pro forma e arnings per share and 50% growth in pro forma EBITDA from a base year of 2011. The grants would have expired if neither target were achieved during a six -year term.  In the first quarter of 2015, the outstanding SARs awards for the achievement of 50% growth in pro forma earnings per share vested with the Audit Committee’s approval of the Company’s 2014 financial statements. In the first quarter of 2016, the outstanding SARs awards for the Company’s achievement of over 50% growth of pro forma EBITDA vested with the Audit Committee’s approval of the Company’s 2015 financial statements . As of April 1, 2016, no SARs had been exercised. As of January 1, 2016, all non-cash stock compensation expense relating to the outstanding SARs had been expensed.  Treasury Stock 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 April 1, 2016 , the Company repurc hased 307 thousand shares of its common stock at an average price of $13.85 per share for a total cost of $4.3 million . As of April 1, 2016 , the Company had $ 3.1 million available under its share repurchase plan authorization. During the quarter ended April 3, 2015, the Company repurchased approximately 75 thousand shares of its common stock at an average price of $8.70 per share for a total cost of approximately $0.7 million. The shares repurchased under the share repurchase plan during the quarter ended April 1, 2016, do not include 255 thousand shares for a cost of $3.4 million which the Company bought back to satisfy employee net vesting obligations. During the quarter ended April 3, 2015, the Company bought back 259 thousand shares at a cost of $2.1 million to satisfy employee net vesting obligations . On May 6, 2016, the Company’s Board of Directors approved the repurchase of 697 thousand shares of its common stock from the Company’s CEO , 732 thousand shares of its common stock from the Company’s COO , and 73 thousand shares of its common stock from the Company’s CFO for a total of approximately 1.5 million shares at a purchase price of $14.77 per share. The transaction was approved by the Audit Committee of the Board of Directors which is comprised solely of independent directors and was effected as part of the Company’s share repurchase program. Following the transaction, Mr. Fernandez, Mr. Dungan and Mr. Ramirez remain the beneficial owners of 11.8% , 4.9% and 0.9% shares, respectively, of the outstanding common stock. Following the transaction, approximately $3.1 million remained available under the Company’s share repurchase program. One of the primary reasons for this transaction was to lower the Company’s weighted average shares outstanding which had increased by 11% from the first quarter of 2015 as a result of the vesting of the stock appreciation rights (“SARs”) and appreciation in share price. The repurchase reduces weighted average shares outstanding by approximately 4% and is $0.03 to $0.04 accretive on an annualized basis. Based on the most recent SEC filings, including shares of Company common stock beneficially owned and shares that could be acquired upon the exercise of the SARs, Mr. Fernandez continues to be the single largest beneficial shareholder of the Company. In reviewing and approving the transaction, the independent directors of the Board considered, among other factors, the benefits to the Company’s stockholders of this transaction such as the fact that (i) the share repurchase transaction is expected to be accretive to earnings per share, and (ii) the transaction was a unique opportunity to repurchase a large block of shares in an orderly manner. The transaction will be funded from borrowings under the Company’s Credit Facility which was amended on May 9, 2016 in order to provide an additional $25.0 million in borrowing capacity for an aggregate amount of up to $45.0 million from time to time pursuant to a revolving line of credit. There were no amounts outstanding under the Credit Facility prior to the repurchase described above. Dividend Program In 2015, the Company increased the annual dividend from $0.12 per share to $0.20 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $3.1 million and $3.2 million paid to shareholders on record on June 29, 2015 and December 28, 2015, respectively. These dividends were paid from U.S. domestic sources and are accounted for as an increase to retained deficit. The dividend declared in December 2015 was paid in January 2016. During the quarter ended April 1, 2016, the Company increased its annual dividend to $0.26 per share to be paid on a semi-annual basis. Subsequent to quarter end, the Board of Directors declared the semi-annual dividend payment of $0.13 for shareholders of record on June 30, 2016 and to be paid on July 11, 2016 .

Litigation

Litigation	3 Months Ended
	Apr. 01, 2016
Litigation [Abstract]
Litigation	 9 . 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 Informatio

Geographic And Group Information	3 Months Ended
	Apr. 01, 2016
Geographic And Group Information [Abstract]
Geographic And Group Information	 10 . Geographic and Group Information Revenue , which is primarily based on the count ry of the contracting entity and differs from the Company’s non-GAAP reporting, was attributed to the following geographical areas (in thousands):     Quarter Ended  April 1, April 3,  2016 2015  Revenue:  North America $ 59,517 $ 48,710  International (primarily European countries) 9,261 12,264  Total revenue $ 68,778 $ 60,974 Long-lived assets are attributable to the following geographic areas (in thousands):      April 3, January 1,  2015 2016  Long-lived assets:  North America $ 77,807 $ 78,230  International (primarily European countries) 14,277 14,662  Total long-lived assets $ 92,084 $ 92,892 As of April 1, 2016 and January 1, 2016, f oreign assets included $1 3.8 million and $14.1 million, respectively, of goodwill related to acquisitions .  In the following table, the Hackett Group service group encompasses Benchmarking, Business Transformation, Executive Advisory and EPM and EPM Application Maintenance and Support groups. The ERP Solutions service group encompasses SAP ERP Implementation and SAP Maintenance groups (in thousands):      Quarter Ended  April 1, April 3,  2016 2015   The Hackett Group $ 57,945 $ 51,592  ERP Solutions 10,833 9,382  Total revenue $ 68,778 $ 60,974  

Basis Of Presentation And Gen18

Basis Of Presentation And General Information (Policies)	3 Months Ended
	Apr. 01, 2016
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 January 1, 2016, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter ended April 1, 2016, 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, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt . As of April 1, 2016 and January 1, 2016, 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.
Business Combinations	Business Combinations The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, that may be up to 12 months from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the FASB issued guidance on revenue recognition, which provides for a single, principles-based model for revenue recognition and replaces the existing revenue recognition guidance. The guidance is effective for annual and interim periods beginning on or after December 15, 2017 and will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a retrospective or cumulative effect transition method and early adoption is permitted, however not before December 15, 2016. The Company has not yet selected a transition method and is in the process of evaluating the effect this standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued amendments to its guidance which are intended to simplify the balance sheet presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. The amendments are effective for annual and interim periods beginning after December 15, 2015 and requires a retrospective transition method. Early adoption is permitted for financial statements that have not been previously issued. This adoption did not have a material impact on the Company’s consolidated financial statements. On November 20, 2015, the FASB issued guidance which requires an entity to present all deferred tax assets and liabilities as non-current in a classified balance sheet. The update becomes effective January 1, 2017, however early adoption is permitted. The Company chose early adoption for the periods presented. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance . The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases in the statement of financial position. Accounting applied by lessors will remain largely consistent with previous guidance, additional changes set to align lessor accounting with the revised lessee model and the FASB’s revenue recognition guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance on employee share-based payment accounting , T he goal of which is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this new guidance.
Reclassifications	Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. The Company reclassified on the Consolidated Statements of Cash Flows the dollar value of shares having a value equal to tax withholding, which were withheld and never issued. In lieu of issuing the shares, taxes were paid on the employee’s behalf. In the first quarter of 2016 and 2015, $3.4 million and $2.1 million, respectively, related to the net shares withheld was reclassified from cash flows from operations to cash flows from financing activities to conform to current period presentation.

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Apr. 01, 2016
Net Income Per Common Share [Abstract]
Basic And Diluted Weighted Average Shares	   Quarter Ended  April 1, April 3,  2016 2015   Basic weighted average common shares outstanding 29,889,761 28,551,665   Effect of dilutive securities:  Unvested restricted stock units and common stock subject to  vesting requirements issued to employees and non-employees 1,196,529 847,951  Common stock issuable upon the exercise of stock options and SARs 2,266,897 517,700  Dilutive weighted average common shares outstanding 33,353,188 29,917,316  

Accounts Receivable And Unbil20

Accounts Receivable And Unbilled Revenue, Net (Tables)	3 Months Ended
	Apr. 01, 2016
Accounts Receivable And Unbilled Revenue, Net [Abstract]
Accounts Receivable And Unbilled Revenue, Net	   April 1, January 1,  2016 2016  Accounts receivable $ 36,219 $ 33,159  Unbilled revenue 13,158 10,768  Allowance for doubtful accounts (2,246) (1,881)  Accounts receivable and unbilled revenue, net $ 47,131 $ 42,046 

Accrued Expenses And Other Li21

Accrued Expenses And Other Liabilities (Tables)	3 Months Ended
	Apr. 01, 2016
Accrued Expenses And Other Liabilities [Abstract]
Components Of Accrued Expenses And Other Liabilities	  April 1, January 1,  2016 2016  Accrued compensation and benefits $ 6,935 $ 3,934  Accrued bonuses 3,519 13,279  Accrued dividend payable — 3,199  Deferred revenue 13,628 11,433  Accrued sales, use, franchise and VAT tax 2,529 1,946  Non-cash stock compensation accrual 2,495 2,704  Income tax payable 716 3,087  Other accrued expenses 2,463 2,230  Total accrued expenses and other liabilities $ 32,285 $ 41,812 

Geographic And Group Informat22

Geographic And Group Information (Tables)	3 Months Ended
	Apr. 01, 2016
Geographic And Group Information [Abstract]
Geographic Revenue	   Quarter Ended  April 1, April 3,  2016 2015  Revenue:  North America $ 59,517 $ 48,710  International (primarily European countries) 9,261 12,264  Total revenue $ 68,778 $ 60,974 
Long-Lived Assets Attributable To Geographic Area	   April 3, January 1,  2015 2016  Long-lived assets:  North America $ 77,807 $ 78,230  International (primarily European countries) 14,277 14,662  Total long-lived assets $ 92,084 $ 92,892 
Revenue By Service Group	   Quarter Ended  April 1, April 3,  2016 2015   The Hackett Group $ 57,945 $ 51,592  ERP Solutions 10,833 9,382  Total revenue $ 68,778 $ 60,974 

Basis Of Presentation And Gen23

Basis Of Presentation And General Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Cash flows from financing activities	$ (10,892)	$ (2,718)
Restatement Adjustment [Member]
Cash flows from financing activities	$ 3,400	$ 2,100

Net Income Per Common Share (Na

Net Income Per Common Share (Narrative) (Details) - shares shares in Millions	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Net Income Per Common Share [Abstract]
Antidilutive common share equivalents	0.9	0.6

Net Income Per Common Share (Ba

Net Income Per Common Share (Basic And Diluted Weighted Average Shares) (Details) - shares	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Net Income Per Common Share [Abstract]
Basic weighted average common shares outstanding	29,889,761	28,551,665
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees	1,196,529	847,951
Common stock issuable upon the exercise of stock options and SARs	2,266,897	517,700
Diluted weighted average common shares outstanding	33,353,188	29,917,316

Accounts Receivable And Unbil26

Accounts Receivable And Unbilled Revenue, Net (Details) - USD ($) $ in Thousands	Apr. 01, 2016	Jan. 01, 2016
Accounts Receivable And Unbilled Revenue, Net [Abstract]
Accounts receivable	$ 36,219	$ 33,159
Unbilled revenue	13,158	10,768
Allowance for doubtful accounts	(2,246)	(1,881)
Accounts receivable and unbilled revenue, net	$ 47,131	$ 42,046

Accrued Expenses And Other Li27

Accrued Expenses And Other Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2016	Jan. 01, 2016
Accrued Expenses And Other Liabilities [Abstract]
Accrued compensation and benefits	$ 6,935	$ 3,934
Accrued bonuses	3,519	13,279
Accrued dividend payable		3,199
Deferred revenue	13,628	11,433
Accrued sales, use, franchise and VAT tax	2,529	1,946
Non-cash stock compensation accrual	2,495	2,704
Income taxes payable	716	3,087
Other accrued expenses	2,463	2,230
Total accrued expenses and other liabilities	$ 32,285	$ 41,812

Credit Facility (Details)

Credit Facility (Details) - USD ($) shares in Thousands	May. 06, 2016	Apr. 01, 2016	Apr. 03, 2015	May. 09, 2016	Jan. 01, 2016	Feb. 21, 2012
Revolving line of credit facility [Member]
Line of Credit Facility [Line Items]
Borrowing capacity under credit facility						$ 20,000,000
Credit facility amount outstanding		$ 0			$ 0
Maturity date		May 9, 2021
Pledge of capital stock to U.S. subsidiaries		100.00%
Pledge of capital stock to direct foreign subsidiaries		66.00%
Term Loan [Member]
Line of Credit Facility [Line Items]
Borrowing capacity under credit facility						$ 47,000,000
LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Margin percentage base rate		1.50%
Base Rate [Member]
Line of Credit Facility [Line Items]
Margin percentage base rate		0.75%
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Repurchase of common stock	1,500
Subsequent Event [Member] | Revolving line of credit facility [Member]
Line of Credit Facility [Line Items]
Borrowing capacity under credit facility				$ 45,000,000
Additional borrowing capacity				$ 25,000,000
Stock Repurchase A [Member]
Line of Credit Facility [Line Items]
Repurchase of common stock		307	75

Acquisition (Details)

Acquisition (Details) $ in Millions	3 Months Ended
	Mar. 28, 2014USD ($)
Acquisition [Abstract]
Purchase price	$ 3
Shares granted to sellers	1
Contingent consideration	$ 8

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 01, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period, Common stock	2 years 3 months 18 days
Number of shares granted subject to vesting requirements	240,820
Shares subject to vesting requirements	505,060
Nonvested weighted average grant-date fair value, Common stock | $ / shares	$ 10.95
Compensation expense related to common stock subject to vesting requirements | $	$ 3.9
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	533,059
Weighted average grant-date fair value | $ / shares	$ 13.32
Weighted average period, Restricted stock units	2 years 2 months 1 day
Restricted stock units outstanding	1,908,599
Nonvested weighted average grant-date fair value | $ / shares	$ 9.06
Compensation expenses related to unvested restricted stock unit based awards | $	$ 12.7

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	May. 06, 2016	Dec. 28, 2015	Jun. 29, 2015	Apr. 01, 2016	Apr. 03, 2015	Dec. 28, 2012	May. 10, 2016	May. 09, 2016	Jan. 01, 2016	Feb. 21, 2012
Equity, Class of Treasury Stock [Line Items]
Equity incentive compensation awards given up						50.00%
SARs exercised				0
Weighted average shares outstanding					11.00%
Weighted average shares outstanding accretive on an annualized basis					$ 0.03
Amount available under repurchase plan				$ 3,100,000
Shares repurchased for employee net vesting obligations, shares				255,000	259,000
Shares repurchased for employee net vesting obligations, value				$ 3,400,000	$ 2,100,000
Dividend declared				$ 0.26
Dividend paid, per share		$ 0.20	$ 0.12
Dividend paid, cash value		$ 3,200,000	$ 3,100,000
Stock Appreciation Rights (SARs) [Member]
Equity, Class of Treasury Stock [Line Items]
SARs exchanged						2,900,000
Exercise price						$ 4
Target achievement, pro forma Earnings per share						50.00%
Target achievement, pro forma EBITDA						50.00%
Target achievement, Term				6 years
Stock Repurchase A [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock				307,000	75,000
Purchase price per share				$ 13.85	$ 8.70
Total cost				$ 4,300,000	$ 700,000
Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock	1,500,000
Purchase price per share	$ 14.77
Weighted average shares outstanding	4.00%
Weighted average shares outstanding accretive on an annualized basis	$ 0.04
Amount available under repurchase plan	$ 3,100,000
Dividend declared							$ 0.13
Subsequent Event [Member] | Chief Executive Officer [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock	697
Beneficial owners	11.80%
Subsequent Event [Member] | Chief Operating Officer [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock	732
Beneficial owners	4.90%
Subsequent Event [Member] | Chief Financial Officer [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock	73
Beneficial owners	0.90%
Revolving line of credit facility [Member]
Equity, Class of Treasury Stock [Line Items]
Borrowing capacity under credit facility										$ 20,000,000
Credit facility amount outstanding				$ 0					$ 0
Revolving line of credit facility [Member] | Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Additional borrowing capacity								$ 25,000,000
Borrowing capacity under credit facility								$ 45,000,000
Term Loan [Member]
Equity, Class of Treasury Stock [Line Items]
Borrowing capacity under credit facility										$ 47,000,000

Geographic And Group Informat32

Geographic And Group Information (Narrative) (Details) - USD ($) $ in Millions	Apr. 01, 2016	Jan. 01, 2016
Geographic And Group Information [Abstract]
Goodwill included in foreign assets	$ 13.8	$ 14.1

Geographic And Group Informat33

Geographic And Group Information (Geographic Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 68,778	$ 60,974
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	59,517	48,710
International Primarily European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 9,261	$ 12,264

Geographic And Group Informat34

Geographic And Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) - USD ($)	Apr. 01, 2016	Jan. 01, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 92,084,000	$ 92,892,000
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	77,807,000	78,230,000
International Primarily European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 14,277,000	$ 14,662,000

Geographic And Group Informat35

Geographic And Group Information (Revenue By Service Group) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Apr. 03, 2015
Segment Reporting Information [Line Items]
Total revenue	$ 68,778	$ 60,974
The Hackett Group [Member]
Segment Reporting Information [Line Items]
Total revenue	57,945	51,592
ERP Solutions [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 10,833	$ 9,382