Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 25, 2020 | Oct. 29, 2020 | |
Cover [Abstract] | ||
Trading Symbol | HCKT | |
Entity Registrant Name | Hackett Group, Inc. | |
Entity Central Index Key | 0001057379 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 25, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 29,961,802 | |
Title of 12(b) Security | Common Stock, par value $.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 333-48123 | |
Entity Tax Identification Number | 65-0750100 | |
Entity Address, Address Line One | 1001 Brickell Bay Drive | |
Entity Address, Address Line Two | Suite 3000 | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33131 | |
City Area Code | 305 | |
Local Phone Number | 375-8005 | |
Entity Incorporation, State or Country Code | FL | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 25, 2020 | Dec. 27, 2019 |
Current assets: | ||
Cash | $ 43,167 | $ 25,954 |
Accounts receivable and contract assets, net of allowance of $1,263 and $743 at September 25, 2020 and December 27, 2019, respectively | 36,221 | 49,778 |
Prepaid expenses and other current assets | 3,350 | 2,895 |
Total current assets | 82,738 | 78,627 |
Property and equipment, net | 18,981 | 19,916 |
Other assets | 1,847 | 2,652 |
Goodwill | 84,288 | 84,578 |
Operating lease right-of-use assets | 8,273 | 7,962 |
Total assets | 196,127 | 193,735 |
Current liabilities: | ||
Accounts payable | 5,045 | 8,494 |
Accrued expenses and other liabilities | 37,238 | 32,482 |
Operating lease liabilities | 2,678 | 2,707 |
Liabilities related to discontinued operations | 157 | |
Total current liabilities | 45,118 | 43,683 |
Non-current deferred tax liability, net | 6,767 | 7,183 |
Operating lease liabilities | 5,595 | 5,255 |
Total liabilities | 57,480 | 56,121 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.001 par value, 1,250,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value, 125,000,000 shares authorized; 57,559,920 and 57,180,616 shares issued at September 25, 2020 and December 27, 2019, respectively | 58 | 58 |
Additional paid-in capital | 309,064 | 303,707 |
Treasury stock, at cost, 27,573,523 and 27,425,476 shares September 25, 2020 and December 27, 2019, respectively | (143,825) | (141,887) |
Accumulated deficit | (15,221) | (13,714) |
Accumulated other comprehensive loss | (11,429) | (10,550) |
Total shareholders' equity | 138,647 | 137,614 |
Total liabilities and shareholders' equity | $ 196,127 | $ 193,735 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 25, 2020 | Dec. 27, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 1,263 | $ 743 |
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 | 57,559,920 | 57,180,616 |
Treasury stock, at cost, shares | 27,573,523 | 27,425,476 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
REVENUE: | ||||
TOTAL REVENUE FROM CONTINUING OPERATIONS | $ 57,917 | $ 72,690 | $ 180,201 | $ 213,366 |
Cost of service: | ||||
Total cost of service | 39,700 | 48,273 | 127,415 | 140,379 |
Stock compensation expense | 1,751 | 1,155 | 5,204 | 3,465 |
Selling, general and administrative costs | 12,979 | 14,353 | 38,765 | 44,107 |
Stock compensation expense | 711 | 776 | 1,830 | 2,268 |
Acquisition-related contingent consideration liability | (108) | (1,133) | ||
Restructuring costs | 5,034 | |||
TOTAL COSTS AND OPERATING EXPENSES | 53,390 | 63,294 | 173,044 | 185,621 |
INCOME FROM OPERATIONS | 4,527 | 9,396 | 7,157 | 27,745 |
Other expense: | ||||
Interest expense | (22) | (62) | (100) | (268) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 4,505 | 9,334 | 7,057 | 27,477 |
Income tax expense | 1,362 | 2,427 | 2,312 | 6,481 |
INCOME FROM CONTINUING OPERATIONS | 3,143 | 6,907 | 4,745 | 20,996 |
(Loss) income from discontinued operations | (157) | 2 | (165) | (4) |
NET INCOME | $ 2,986 | $ 6,909 | $ 4,580 | $ 20,992 |
Weighted average common shares outstanding | 30,053,457 | 29,876,468 | 29,985,879 | 29,794,091 |
Weighted average common and common equivalent share outstanding | 32,403,442 | 32,570,742 | 32,334,552 | 32,413,115 |
Basic net income per common share: | ||||
Income per common share from continuing operations | $ 0.11 | $ 0.23 | $ 0.16 | $ 0.70 |
(Loss) income per common share from discontinued operations | (0.01) | 0 | (0.01) | 0 |
Basic net income per common share | 0.10 | 0.23 | 0.15 | 0.70 |
Diluted net income per common share: | ||||
Income per common share from continuing operations | 0.10 | 0.21 | 0.15 | 0.65 |
(Loss) income per common share from discontinued operations | (0.01) | 0 | (0.01) | 0 |
Diluted net income per common share | $ 0.09 | $ 0.21 | $ 0.14 | $ 0.65 |
Revenue Before Reimbursements [Member] | ||||
REVENUE: | ||||
TOTAL REVENUE FROM CONTINUING OPERATIONS | $ 57,769 | $ 66,755 | $ 175,587 | $ 197,101 |
Reimbursements [Member] | ||||
REVENUE: | ||||
TOTAL REVENUE FROM CONTINUING OPERATIONS | 148 | 5,935 | 4,614 | 16,265 |
Cost of service: | ||||
Total cost of service | 148 | 5,935 | 4,614 | 16,265 |
Cost Before Reimbursements [Member] | ||||
Cost of service: | ||||
Total cost of service | $ 37,801 | $ 41,183 | $ 117,597 | $ 120,649 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 2,986 | $ 6,909 | $ 4,580 | $ 20,992 |
Foreign currency translation adjustment | 907 | (1,056) | (879) | (1,071) |
Total comprehensive income | $ 3,893 | $ 5,853 | $ 3,701 | $ 19,921 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2020 | Sep. 27, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 4,580 | $ 20,992 |
Less loss from discontinued operations | (165) | (4) |
Net income from continuing operations | 4,745 | 20,996 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 2,600 | 2,320 |
Amortization expense | 723 | 789 |
Amortization of debt issuance costs | 58 | 68 |
Non-cash stock compensation expense | 7,034 | 5,733 |
Provision for doubtful accounts | 413 | 719 |
Gain on foreign currency translation | (165) | (384) |
Deferred income tax (benefit) expense | (417) | 1,277 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable and contract assets | 13,248 | (3,904) |
(Increase) decrease in prepaid expenses and other assets | (328) | 803 |
Decrease in accounts payable | (3,449) | (2,213) |
Increase (decrease) in accrued expenses and other liabilities | 6,666 | (1,463) |
Increase in income tax payable | 193 | 1,803 |
Net cash provided by operating activities | 31,156 | 26,540 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,498) | (3,719) |
Net cash used in investing activities | (1,498) | (3,719) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 374 | 418 |
Proceeds from borrowings | 1,000 | |
Repayment of borrowings | (5,000) | |
Debt issuance costs | 21 | |
Dividends paid | (8,854) | (11,196) |
Repurchase of common stock | (4,025) | (5,531) |
Net cash used in financing activities | (12,526) | (20,309) |
Effect of exchange rate on cash | 81 | 103 |
Net increase in cash | 17,213 | 2,615 |
Cash at beginning of period | 25,954 | 13,808 |
Cash at end of period | 43,167 | 16,423 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 2,385 | 3,410 |
Cash paid for interest | $ 43 | $ 227 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 28, 2018 | $ 123,590 | $ 57 | $ 296,955 | $ (136,604) | $ (25,424) | $ (11,394) |
Balance, Shares at Dec. 28, 2018 | 56,615 | (27,086) | ||||
Issuance of common stock | (2,372) | $ 1 | (2,373) | |||
Issuance of common stock, Shares | 394 | |||||
Treasury stock purchased | (1,616) | $ (1,616) | ||||
Treasury stock purchased, Shares | (102) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,394 | 2,394 | ||||
Net income | 7,094 | 7,094 | ||||
Foreign currency translation | 657 | 657 | ||||
Balance at Mar. 29, 2019 | 129,747 | $ 58 | 296,976 | $ (138,220) | (18,330) | (10,737) |
Ending Balance, Shares at Mar. 29, 2019 | 57,009 | (27,188) | ||||
Balance at Dec. 28, 2018 | 123,590 | $ 57 | 296,955 | $ (136,604) | (25,424) | (11,394) |
Balance, Shares at Dec. 28, 2018 | 56,615 | (27,086) | ||||
Net income | 20,992 | |||||
Foreign currency translation | (1,071) | |||||
Balance at Sep. 27, 2019 | 138,747 | $ 58 | 301,035 | $ (139,660) | (10,221) | (12,465) |
Ending Balance, Shares at Sep. 27, 2019 | 57,137 | (27,280) | ||||
Balance at Mar. 29, 2019 | 129,747 | $ 58 | 296,976 | $ (138,220) | (18,330) | (10,737) |
Balance, Shares at Mar. 29, 2019 | 57,009 | (27,188) | ||||
Issuance of common stock | 405 | 405 | ||||
Issuance of common stock, Shares | 121 | |||||
Treasury stock purchased | (1,440) | $ (1,440) | ||||
Treasury stock purchased, Shares | (92) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 1,961 | 1,961 | ||||
Dividends declared | (5,789) | (5,789) | ||||
Net income | 6,989 | 6,989 | ||||
Foreign currency translation | (672) | (672) | ||||
Balance at Jun. 28, 2019 | 131,201 | $ 58 | 299,342 | $ (139,660) | (17,130) | (11,409) |
Ending Balance, Shares at Jun. 28, 2019 | 57,130 | (27,280) | ||||
Issuance of common stock | (88) | (88) | ||||
Issuance of common stock, Shares | 7 | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 1,781 | 1,781 | ||||
Net income | 6,909 | 6,909 | ||||
Foreign currency translation | (1,056) | (1,056) | ||||
Balance at Sep. 27, 2019 | 138,747 | $ 58 | 301,035 | $ (139,660) | (10,221) | (12,465) |
Ending Balance, Shares at Sep. 27, 2019 | 57,137 | (27,280) | ||||
Dividends declared | (5,800) | |||||
Balance at Dec. 27, 2019 | 137,614 | $ 58 | 303,707 | $ (141,887) | (13,714) | (10,550) |
Ending Balance, Shares at Dec. 27, 2019 | 57,181 | (27,425) | ||||
Issuance of common stock | (1,962) | (1,962) | ||||
Issuance of common stock, Shares | 291 | |||||
Treasury stock purchased | (1,006) | $ (1,006) | ||||
Treasury stock purchased, Shares | (73) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,469 | 2,469 | ||||
Dividends declared | (13) | (13) | ||||
Net income | 5,527 | 5,527 | ||||
Foreign currency translation | (1,830) | (1,830) | ||||
Balance at Mar. 27, 2020 | 140,799 | $ 58 | 304,214 | $ (142,893) | (8,200) | (12,380) |
Ending Balance, Shares at Mar. 27, 2020 | 57,472 | (27,498) | ||||
Balance at Dec. 27, 2019 | 137,614 | $ 58 | 303,707 | $ (141,887) | (13,714) | (10,550) |
Balance, Shares at Dec. 27, 2019 | 57,181 | (27,425) | ||||
Net income | 4,580 | |||||
Foreign currency translation | (879) | |||||
Balance at Sep. 25, 2020 | 138,647 | $ 58 | 309,064 | $ (143,825) | (15,221) | (11,429) |
Ending Balance, Shares at Sep. 25, 2020 | 57,560 | (27,573) | ||||
Balance at Mar. 27, 2020 | 140,799 | $ 58 | 304,214 | $ (142,893) | (8,200) | (12,380) |
Balance, Shares at Mar. 27, 2020 | 57,472 | (27,498) | ||||
Issuance of common stock | 359 | 359 | ||||
Issuance of common stock, Shares | 75 | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,362 | 2,362 | ||||
Dividends declared | (3,050) | (3,050) | ||||
Net income | (3,933) | (3,933) | ||||
Foreign currency translation | 44 | 44 | ||||
Balance at Jun. 26, 2020 | 136,581 | $ 58 | 306,935 | $ (142,893) | (15,183) | (12,336) |
Ending Balance, Shares at Jun. 26, 2020 | 57,547 | (27,498) | ||||
Issuance of common stock | (1,041) | (109) | $ (932) | |||
Issuance of common stock, Shares | 13 | (75) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,238 | 2,238 | ||||
Dividends declared | (3,024) | (3,024) | ||||
Net income | 2,986 | 2,986 | ||||
Foreign currency translation | 907 | 907 | ||||
Balance at Sep. 25, 2020 | $ 138,647 | $ 58 | $ 309,064 | $ (143,825) | $ (15,221) | $ (11,429) |
Ending Balance, Shares at Sep. 25, 2020 | 57,560 | (27,573) |
Basis of Presentation and Gener
Basis of Presentation and General Information | 9 Months Ended |
Sep. 25, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [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 , 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 27, 2019, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 5, 2020. The consolidated results of operations for the quarter and nine months ended September 25, 2020, 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. Revenue Recognition The Company’s revenue is substantially generated from providing professional services to its clients. The Company also generates revenue from software licenses, software support, maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when they are sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when we satisfy the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to our executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates its revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales, maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows us to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms. 1. Basis of Presentation and General Information (continued) Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory service contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms. The resale of software and maintenance contracts are in the form of SAP America software license or maintenance agreements provided by SAP America. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and the software and maintenance are sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of on-premise software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue for the resale of cloud software licenses is recognized upon contract execution. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. The payment terms and conditions in our customer contracts vary. The agreements entered into in connection with a project, whether time-and-materials, fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with a 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact to revenue. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenue in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within unbilled services. Client prepayments are classified as deferred revenue and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances and see Note 4 for the deferred revenue balances. During the quarter and nine months ended September 25, 2020, the Company recognized $6.0 million and $15.8 million, respectively, of revenue as a result of changes in deferred revenue liability balance, as compared to $3.8 million and $12.0 million for the quarter and nine months ended September 27, 2019, respectively. The following table reflects the Company’s disaggregation of total revenue including reimbursable expenses for the quarters and nine months ended September 25, 2020 and September 27, 2019: Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Consulting $ 56,865 $ 65,971 $ 171,140 $ 194,710 Software License Sales 904 784 4,447 2,391 Revenue before reimbursements from continuing operations $ 57,769 $ 66,755 $ 175,587 $ 197,101 Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 27, 2019, and December 28, 2018, the Company had $1.6 million and $1.2 million, respectively, of deferred commissions, of which $0.3 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable and accrued expenses and other liabilities. As of September 25, 2020 and December 27, 2019, 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. Income Taxes During the third quarter and first nine months of 2020, the Company recorded an income tax expense of $1.4 million and $2.3 million, respectively, related to certain federal, foreign and state taxes which reflected an effective tax rate benefit of 30% and expense of 33%, respectively. In the third quarter and first nine months of 2019, the Company recorded $2.4 million and $6.5 million, respectively, of income tax expense related to certain federal, foreign and state taxes which reflected an effective tax rate of 26% and 24%, respectively. The decrease in the nine months ending September 25, 2020 GAAP income tax rate was primarily due to lower tax benefit related to share based compensation when compared to the same period in the prior year, restructuring charges in the current quarter in countries with lower statutory income tax rates and changes in the Company’s overall profitability due to the COVID-19 economic effects. Discontinued Operations The discontinued operations related to the settlement of an employment matter in connection with the discontinuance of the Company’s European REL Working Capital group in 2018. COVID-19 Pandemic Impact on the Company’s Business The level of revenue the Company can achieve is based on the Company’s ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. In spite of some disruption in March 2020, the COVID-19 pandemic did not have a significant impact on the Company’s consolidated results of operations during the first quarter of 2020, however, it did negatively impact net revenue and dilutive earnings per share during the second and third quarter of 2020, and the Company expects for negative impacts to continue until economic conditions improve. A substantial or prolonged economic downturn as a result of the COVID-19 pandemic or otherwise, weak or uncertain economic conditions or similar factors could adversely affect our clients’ financial condition which may further reduce the Company’s clients’ demand for its services. 1. Basis of Presentation and General Information (continued) The Company is actively managing its business to respond to the impact of COVID-19. The Company has reduced employee travel to only essential business needs and most of its employees have been working from home. The Company is generally following the requirements and protocols published by the U.S. Centers for Disease Control and the World Health Organization, and state and local governments. The Company cannot predict when or how it will begin to lift the actions put in place. As a response to the ongoing COVID-19 pandemic, the Company has implemented plans to manage its costs and preserve cash. The Company has significantly limited the addition of new employees and third party contracted services, eliminated all travel except where necessary to meet customer needs, and limited discretionary spending. In addition, at the end of June 2020, the Company reduced its global workforce by approximately 10% and recorded a $5.0 million restructuring cost. All client concessions and accounts receivable allowances have been appropriately reflected in the Company’s financial statements. To the extent the business disruption continues for an extended period, additional cost management actions will be considered. Any future asset impairment charges, increases in allowance for doubtful accounts, or restructuring charges will be dependent on the severity and duration of the pandemic. In light of the evolving health, social, economic and business environment, governmental regulations or mandates, and business disruptions that could occur, the potential impact that COVID-19 could have on the Company’s financial condition and operating results remains highly uncertain. Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. For public companies, this update was effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The adoption did not have a material impact on the Company’s consolidated financial statements. In January 2020 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. 25, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 2. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. For the period in which the Company has reported a net loss, diluted net loss per common share is the same as basic net loss per share attributable to common shareholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. 2. Net Income per Common Share (continued) The following table reconciles basic and dilutive weighted average common shares: Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Basic weighted average common shares outstanding 30,053,457 29,876,468 29,985,879 29,794,091 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees 204,747 350,842 142,223 270,776 Common stock issuable upon the exercise of stock options and SARs 2,145,238 2,343,432 2,206,450 2,348,248 Dilutive weighted average common shares outstanding 32,403,442 32,570,742 32,334,552 32,413,115 Approximately 9 thousand shares and 14 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and nine months ended September 25, 2020, respectively, as compared to 26 thousand shares and 13 thousand shares for the quarter and nine months ended September 27, 2019, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets, Net | 9 Months Ended |
Sep. 25, 2020 | |
Receivables Net Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | 3. Accounts Receivable and Contract Assets, Net Accounts receivable and contract assets, net, consisted of the following (in thousands): September 25, December 27, 2020 2019 Accounts receivable $ 26,167 $ 35,884 Contract assets (unbilled revenue) 11,317 14,637 Allowance for doubtful accounts (1,263 ) (743 ) Accounts receivable and contract assets, net $ 36,221 $ 49,778 Accounts receivable is net of uncollected advanced billings. Contract assets represent revenue for services performed that have not been invoiced. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 25, 2020 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Accrued Liabilities and Other Liabilities | 4. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): September 25, December 27, 2020 2019 Accrued compensation and benefits $ 8,709 $ 3,987 Deferred employer's portion of social security taxes 2,857 - Accrued bonuses 2,963 3,932 Accrued dividend payable 3,042 5,791 Restructuring liability 1,180 1,584 Deferred revenue 9,992 9,583 Accrued sales, use, franchise and VAT tax 2,523 2,460 Non-cash stock compensation accrual 304 339 Income tax payable 2,804 2,611 Other accrued expenses 2,864 2,195 Total accrued expenses and other liabilities $ 37,238 $ 32,482 4. Accrued Expenses and Other Liabilities (continued) Under the Coronavirus, Aid, Relief and Economic Security Act (the “CARES Act”), the Company has elected to defer its portion of social security tax deposits from March 27, 2020 through December 31, 2020, 50% of which is due to be paid no later than December 31, 2021 and the remaining 50% to be paid no later than December 31, 2022. As of September 25 2.9 |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 25, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 5. Restructuring Costs During the second quarter of 2020, the Company recorded restructuring costs of $5.0 million, which was primarily related to the reduction of staff in the United States and Europe as a result of the impact of the COVID-19 pandemic . As of September 25, 2020, the Company had $0.9 million of remaining commitments related to the 2020 restructuring charge. During 2019, the Company recorded restructuring costs of $3.3 million, which was primarily related to the reduction of staff in Europe and Australia. As of September 25, 2020, the Company had $ 0.3 The following table sets forth the activity in the restructuring expense accruals (in thousands): Exit, Closure and Severance and Other Consolidation Employee Costs of Facilities Total Accrual balance at December 27, 2019 $ 1,247 $ 337 $ 1,584 Additions — — — Expenditures (990 ) (68 ) (1,058 ) Accrual balance at March 27, 2020 $ 257 $ 269 $ 526 Additions 5,034 — 5,034 Expenditures (2,273 ) (56 ) (2,329 ) Accrual balance at June 26, 2020 $ 3,018 $ 213 $ 3,231 Expenditures (2,020 ) (31 ) (2,051 ) Accrual balance at September 25, 2020 $ 998 $ 182 $ 1,180 |
Leases
Leases | 9 Months Ended |
Sep. 25, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 year and 10 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the Company’s lease liability, nor our right of use asset. The components of lease expense were as follows (in thousands): September 25, 2020 Quarter Nine Months Operating lease cost $ 668 $ 1,835 Total net lease costs $ 668 $ 1,835 6. Leases (continued) The weighted average remaining lease term is 4.5 years. Assuming the Company exercises its opt-out option in year 5 for the London office lease, the weighted average remaining lease term would be 3.0 years. The weighted average discount rate utilized is 4%. The discount rates applied to each lease, reflects the Company’s estimated incremental borrowing rate. This includes an assessment of the Company’s credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to the Company’s lease payments in a similar economic environment. For the quarter and nine months ended September 25, 2020, the Company paid $0.7 million and $1.8 million, respectively, from operating cash flows for operating leases. Future minimum lease payments under non-cancellable operating leases as of September 25, 2020, were as follows (in thousands): 2020 (excluding the nine months ended September 25, 2020) $ 689 2021 2,572 2022 2,281 2023 1,315 2024 982 2025 and thereafter 1,251 Total lease payments 9,090 Less imputed interest (817 ) Total $ 8,273 As of September 25, 2020, the Company does not have any additional operating leases that have not yet commenced. The Company did extend its Miami office lease effective July 1, 2020, for an additional four years. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 25, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility | 7. Credit Facility The Company has a credit agreement with Bank of America, N.A. (“Bank of America”), which provides for borrowing up to $45.0 million pursuant to a revolving line of credit (the “Revolver”) which had a maturity date of May 9, 2021 (the “Credit Agreement”). On April 03, 2020, the Company amended the Credit Agreement with Bank of America to extend the maturity date to November 30, 2022. The amendment also increased the interest payable on outstanding loans in respect of the Revolver by an additional per annum rate of 0.50% and provided for a LIBOR floor of 75 basis points. The borrowing capacity remained at $45.0 million. The obligations of Hackett under the Revolver 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). As of the quarter and nine months ended September 25, 2020 the Company did not have an outstanding balance under the Revolver. The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage, adjusted fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of September 25, 2020, the Company was in compliance with all covenants. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 25, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 8. Stock Based Compensation During the nine months ended September 25, 2020, the Company issued 635,655 restricted stock units, at a weighted average grant-date fair value of $15.47 per share, respectively. As of September 25, 2020, the Company had 1,213,312 restricted stock units outstanding at a weighted average grant-date fair value of $16.53 per share. As of September 25, 2020, $13.4 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 2.3 years. As of September 25, 2020, the Company had 81,407 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $18.13 per share. As of September 25, 2020, $0.8 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 1.0 year. Forfeitures for all of the Company’s outstanding equity awards are recognized as incurred. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 25, 2020 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Stock Appreciation Rights (“SARs”) As of September 25, 2020, the Company had 2.9 million SARs outstanding with an exercise price of $4.00 per share and an expiration date of February 8, 2022 . Treasury Stock Under the Company’s share repurchase plan, the Company may repurchase shares of its outstanding common stock either on the open market or through privately negotiated transactions subject to market conditions and trading restrictions. During the quarter ended September 25, 2020, the Company repurchased 75 thousand shares at an average price of $12.41 per share for a total cost of $0.9 million. 4.7 During the nine months ended September 27, 2019, the Company repurchased 193 thousand shares of its common stock at an average price of $ The shares repurchased under the share repurchase plan during the quarter and nine months ended September 25, 2020, do not include 8 thousand shares and 135 thousand shares, respectively, which the Company bought back to satisfy employee net vesting obligations for a cost of $111 thousand and $2.1 million, respectively. During the quarter and nine months ended September 27, 2019, the Company bought back 5 Dividend Program In 2019, the Company increased the annual dividend from $0.34 per share to $0.36 per share to be paid on a semi-annual basis and in the first quarter of 2020, the Company further increased the annual dividend to $0.38 per share. During the first quarter of 2020, the Company paid its second semi-annual dividend payment to shareholders, which was declared in the fourth quarter of 2019, for a total of $5.8 million. During the second quarter of 2020, the Company announced its transition to a quarterly dividend payment cycle, subject to declaration. During the second quarter, the Company declared its first quarterly dividend for shareholders of record as of June 30, 2020, which was paid July 10, 2020, for a total of $3.1 million. During the third quarter of 2020 Subsequent to September 25, 2020 and at its most recent meeting, the Company’s board of directors approved its next quarterly dividend for shareholders of record as of December 18, 2020, which will be paid on or about January 9, 2021. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 25, 2020 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 10. Transactions with Related Parties During the nine months ended September 25, 2020, the Company bought back 37 thousand shares of its common stock from members of its Board of Directors for $0.7 million, or $17.43 per share. |
Litigation
Litigation | 9 Months Ended |
Sep. 25, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | 11. 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 | 9 Months Ended |
Sep. 25, 2020 | |
Segment Reporting [Abstract] | |
Geographic and Group Information | 12. Geographic and Group Information Revenue before reimbursements, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands): Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Revenue before reimbursements: North America $ 51,343 $ 56,014 $ 155,912 $ 165,301 International (primarily European countries) 6,426 10,741 19,675 31,800 Revenue from continuing operations before reimbursements $ 57,769 $ 66,755 $ 175,587 $ 197,101 Long-lived assets are attributable to the following geographic areas (in thousands): September 25, December 27, 2020 2019 Long-lived assets: North America $ 91,745 $ 91,309 International (primarily European countries) 21,644 23,799 Total long-lived assets $ 113,389 $ 115,108 As of September 25, 2020 and December 27, 2019, foreign assets included $14.3 million and $14.6 million, respectively, of goodwill related to acquisitions. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 25, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 13. Acquisitions Jibe Consulting, Inc. Effective May 1, 2017, the Company acquired certain assets and liabilities of Jibe Consulting, Inc. (“Jibe”), a U.S.-based Oracle E-Business Suite and Oracle Cloud Business Application implementation firm. The acquisition of Jibe enhances the Company’s Cloud Application capabilities and strongly complements its market leading EPM transformation and technology implementation group. The sellers’ purchase consideration was $5.4 four-year The cash related to the contingent consideration, which was paid to the sellers, is not subject to service vesting and has been accounted for as part of the purchase consideration. The cash related to the contingent consideration, which was to be paid to the key employees, is subject to service vesting and was accounted for as compensation expense. Due to the projected earnout results, during the first quarter of 2019, the acquisition-related purchase consideration and compensation expense allocated to both the selling shareholders and key employees resulted in a benefit of $1.2 million in earnings from operations on the consolidated statement of operations related to the contingent earnout liability for the Jibe acquisition. These contingent liabilities were recorded in the consolidated balance sheet as current accrued expenses and other liabilities. During the fourth quarter of 2019, the contingent liabilities were settled. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Policies) | 9 Months Ended |
Sep. 25, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of The Hackett Group , 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 27, 2019, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 5, 2020. The consolidated results of operations for the quarter and nine months ended September 25, 2020, 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. |
Revenue Recognition | Revenue Recognition The Company’s revenue is substantially generated from providing professional services to its clients. The Company also generates revenue from software licenses, software support, maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when they are sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when we satisfy the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to our executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates its revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales, maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows us to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms. 1. Basis of Presentation and General Information (continued) Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory service contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms. The resale of software and maintenance contracts are in the form of SAP America software license or maintenance agreements provided by SAP America. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and the software and maintenance are sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of on-premise software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue for the resale of cloud software licenses is recognized upon contract execution. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. The payment terms and conditions in our customer contracts vary. The agreements entered into in connection with a project, whether time-and-materials, fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with a 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact to revenue. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenue in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within unbilled services. Client prepayments are classified as deferred revenue and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances and see Note 4 for the deferred revenue balances. During the quarter and nine months ended September 25, 2020, the Company recognized $6.0 million and $15.8 million, respectively, of revenue as a result of changes in deferred revenue liability balance, as compared to $3.8 million and $12.0 million for the quarter and nine months ended September 27, 2019, respectively. The following table reflects the Company’s disaggregation of total revenue including reimbursable expenses for the quarters and nine months ended September 25, 2020 and September 27, 2019: Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Consulting $ 56,865 $ 65,971 $ 171,140 $ 194,710 Software License Sales 904 784 4,447 2,391 Revenue before reimbursements from continuing operations $ 57,769 $ 66,755 $ 175,587 $ 197,101 Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 27, 2019, and December 28, 2018, the Company had $1.6 million and $1.2 million, respectively, of deferred commissions, of which $0.3 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. |
Fair Value | Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable and accrued expenses and other liabilities. As of September 25, 2020 and December 27, 2019, 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. |
Income Taxes | Income Taxes During the third quarter and first nine months of 2020, the Company recorded an income tax expense of $1.4 million and $2.3 million, respectively, related to certain federal, foreign and state taxes which reflected an effective tax rate benefit of 30% and expense of 33%, respectively. In the third quarter and first nine months of 2019, the Company recorded $2.4 million and $6.5 million, respectively, of income tax expense related to certain federal, foreign and state taxes which reflected an effective tax rate of 26% and 24%, respectively. The decrease in the nine months ending September 25, 2020 GAAP income tax rate was primarily due to lower tax benefit related to share based compensation when compared to the same period in the prior year, restructuring charges in the current quarter in countries with lower statutory income tax rates and changes in the Company’s overall profitability due to the COVID-19 economic effects. Discontinued Operations The discontinued operations related to the settlement of an employment matter in connection with the discontinuance of the Company’s European REL Working Capital group in 2018. |
COVID-19 Pandemic Impact on Company’s Business | COVID-19 Pandemic Impact on the Company’s Business The level of revenue the Company can achieve is based on the Company’s ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. In spite of some disruption in March 2020, the COVID-19 pandemic did not have a significant impact on the Company’s consolidated results of operations during the first quarter of 2020, however, it did negatively impact net revenue and dilutive earnings per share during the second and third quarter of 2020, and the Company expects for negative impacts to continue until economic conditions improve. A substantial or prolonged economic downturn as a result of the COVID-19 pandemic or otherwise, weak or uncertain economic conditions or similar factors could adversely affect our clients’ financial condition which may further reduce the Company’s clients’ demand for its services. 1. Basis of Presentation and General Information (continued) The Company is actively managing its business to respond to the impact of COVID-19. The Company has reduced employee travel to only essential business needs and most of its employees have been working from home. The Company is generally following the requirements and protocols published by the U.S. Centers for Disease Control and the World Health Organization, and state and local governments. The Company cannot predict when or how it will begin to lift the actions put in place. As a response to the ongoing COVID-19 pandemic, the Company has implemented plans to manage its costs and preserve cash. The Company has significantly limited the addition of new employees and third party contracted services, eliminated all travel except where necessary to meet customer needs, and limited discretionary spending. In addition, at the end of June 2020, the Company reduced its global workforce by approximately 10% and recorded a $5.0 million restructuring cost. All client concessions and accounts receivable allowances have been appropriately reflected in the Company’s financial statements. To the extent the business disruption continues for an extended period, additional cost management actions will be considered. Any future asset impairment charges, increases in allowance for doubtful accounts, or restructuring charges will be dependent on the severity and duration of the pandemic. In light of the evolving health, social, economic and business environment, governmental regulations or mandates, and business disruptions that could occur, the potential impact that COVID-19 could have on the Company’s financial condition and operating results remains highly uncertain. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. For public companies, this update was effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The adoption did not have a material impact on the Company’s consolidated financial statements. In January 2020 |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Disaggregation of Total Revenue Including Reimbursable Expenses | The following table reflects the Company’s disaggregation of total revenue including reimbursable expenses for the quarters and nine months ended September 25, 2020 and September 27, 2019: Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Consulting $ 56,865 $ 65,971 $ 171,140 $ 194,710 Software License Sales 904 784 4,447 2,391 Revenue before reimbursements from continuing operations $ 57,769 $ 66,755 $ 175,587 $ 197,101 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted Average Shares | The following table reconciles basic and dilutive weighted average common shares: Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Basic weighted average common shares outstanding 30,053,457 29,876,468 29,985,879 29,794,091 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees 204,747 350,842 142,223 270,776 Common stock issuable upon the exercise of stock options and SARs 2,145,238 2,343,432 2,206,450 2,348,248 Dilutive weighted average common shares outstanding 32,403,442 32,570,742 32,334,552 32,413,115 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets, Net (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Receivables Net Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | Accounts receivable and contract assets, net, consisted of the following (in thousands): September 25, December 27, 2020 2019 Accounts receivable $ 26,167 $ 35,884 Contract assets (unbilled revenue) 11,317 14,637 Allowance for doubtful accounts (1,263 ) (743 ) Accounts receivable and contract assets, net $ 36,221 $ 49,778 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): September 25, December 27, 2020 2019 Accrued compensation and benefits $ 8,709 $ 3,987 Deferred employer's portion of social security taxes 2,857 - Accrued bonuses 2,963 3,932 Accrued dividend payable 3,042 5,791 Restructuring liability 1,180 1,584 Deferred revenue 9,992 9,583 Accrued sales, use, franchise and VAT tax 2,523 2,460 Non-cash stock compensation accrual 304 339 Income tax payable 2,804 2,611 Other accrued expenses 2,864 2,195 Total accrued expenses and other liabilities $ 37,238 $ 32,482 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity in Restructuring Expense Accruals | The following table sets forth the activity in the restructuring expense accruals (in thousands): Exit, Closure and Severance and Other Consolidation Employee Costs of Facilities Total Accrual balance at December 27, 2019 $ 1,247 $ 337 $ 1,584 Additions — — — Expenditures (990 ) (68 ) (1,058 ) Accrual balance at March 27, 2020 $ 257 $ 269 $ 526 Additions 5,034 — 5,034 Expenditures (2,273 ) (56 ) (2,329 ) Accrual balance at June 26, 2020 $ 3,018 $ 213 $ 3,231 Expenditures (2,020 ) (31 ) (2,051 ) Accrual balance at September 25, 2020 $ 998 $ 182 $ 1,180 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): September 25, 2020 Quarter Nine Months Operating lease cost $ 668 $ 1,835 Total net lease costs $ 668 $ 1,835 |
Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum lease payments under non-cancellable operating leases as of September 25, 2020, were as follows (in thousands): 2020 (excluding the nine months ended September 25, 2020) $ 689 2021 2,572 2022 2,281 2023 1,315 2024 982 2025 and thereafter 1,251 Total lease payments 9,090 Less imputed interest (817 ) Total $ 8,273 |
Geographic and Group Informat_2
Geographic and Group Information (Tables) | 9 Months Ended |
Sep. 25, 2020 | |
Segment Reporting [Abstract] | |
Geographic Revenue before Reimbursement | Revenue before reimbursements, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands): Quarter Ended Nine Months Ended September 25, September 27, September 25, September 27, 2020 2019 2020 2019 Revenue before reimbursements: North America $ 51,343 $ 56,014 $ 155,912 $ 165,301 International (primarily European countries) 6,426 10,741 19,675 31,800 Revenue from continuing operations before reimbursements $ 57,769 $ 66,755 $ 175,587 $ 197,101 |
Long-Lived Assets Attributable To Geographic Area | Long-lived assets are attributable to the following geographic areas (in thousands): September 25, December 27, 2020 2019 Long-lived assets: North America $ 91,745 $ 91,309 International (primarily European countries) 21,644 23,799 Total long-lived assets $ 113,389 $ 115,108 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 25, 2020 | Jun. 26, 2020 | Sep. 27, 2019 | Sep. 25, 2019 | Jun. 26, 2020 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2019 | Dec. 27, 2019 | Dec. 28, 2018 | |
Basis Of Presentation And General Information [Line Items] | ||||||||||
Revenue recognized as a result of change in contract liability | $ 6,000,000 | $ 3,800,000 | $ 15,800,000 | $ 12,000,000 | ||||||
Deferred commissions | $ 1,600,000 | $ 1,200,000 | ||||||||
Commissions expense | 300,000 | $ 400,000 | 1,200,000 | $ 900,000 | ||||||
Impairment loss recognized to capitalization of deferred commission | 0 | 0 | ||||||||
Income tax expense | $ 1,362,000 | $ 2,427,000 | $ 2,312,000 | $ 6,481,000 | ||||||
Effective tax rate expense (benefit) | (30.00%) | 26.00% | 33.00% | 24.00% | ||||||
Restructuring costs | $ 5,034,000 | $ 3,300,000 | ||||||||
ASU 2016-13 [Member] | ||||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 31, 2020 | Jan. 31, 2020 | ||||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||||||
COVID-19 [Member] | ||||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||||
Global workforce reduced, percentage | 10.00% | |||||||||
Restructuring costs | $ 5,000,000 | $ 5,000,000 | ||||||||
Minimum [Member] | ||||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||||
Business relationship agreement period | 6 months | |||||||||
Maximum [Member] | ||||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||||
Business relationship agreement period | 12 months | |||||||||
Customer contract period | 12 months |
Basis of Presentation and Gen_5
Basis of Presentation and General Information (Summary of Disaggregation of Total Revenue Including Reimbursable Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue before reimbursements from continuing operations | $ 57,917 | $ 72,690 | $ 180,201 | $ 213,366 |
Consulting [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue before reimbursements from continuing operations | 56,865 | 65,971 | 171,140 | 194,710 |
Software License Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue before reimbursements from continuing operations | 904 | 784 | 4,447 | 2,391 |
Revenue Before Reimbursements [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue before reimbursements from continuing operations | $ 57,769 | $ 66,755 | $ 175,587 | $ 197,101 |
Net Income Per Common Share (Re
Net Income Per Common Share (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 30,053,457 | 29,876,468 | 29,985,879 | 29,794,091 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees | 204,747 | 350,842 | 142,223 | 270,776 |
Common stock issuable upon the exercise of stock options and SARs | 2,145,238 | 2,343,432 | 2,206,450 | 2,348,248 |
Dilutive weighted average common shares outstanding | 32,403,442 | 32,570,742 | 32,334,552 | 32,413,115 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Earnings Per Share [Abstract] | ||||
Antidilutive common share equivalents | 9 | 26 | 14 | 13 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets, Net (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Dec. 27, 2019 |
Receivables Net Current [Abstract] | ||
Accounts receivable | $ 26,167 | $ 35,884 |
Contract assets (unbilled revenue) | 11,317 | 14,637 |
Allowance for doubtful accounts | (1,263) | (743) |
Accounts receivable and contract assets, net | $ 36,221 | $ 49,778 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Dec. 27, 2019 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued compensation and benefits | $ 8,709 | $ 3,987 |
Deferred employer's portion of social security taxes | 2,857 | |
Accrued bonuses | 2,963 | 3,932 |
Accrued dividend payable | 3,042 | 5,791 |
Restructuring liability | 1,180 | 1,584 |
Deferred revenue | 9,992 | 9,583 |
Accrued sales, use, franchise and VAT tax | 2,523 | 2,460 |
Non-cash stock compensation accrual | 304 | 339 |
Income tax payable | 2,804 | 2,611 |
Other accrued expenses | 2,864 | 2,195 |
Total accrued expenses and other liabilities | $ 37,238 | $ 32,482 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities (Narrative) (Details) - CARES Act [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 25, 2020 |
Accrued Liabilities And Other Liabilities Current [Line Items] | |||
Liabilities related to deferrals | $ 2.9 | ||
Scenario Forecast [Member] | Maximum [Member] | |||
Accrued Liabilities And Other Liabilities Current [Line Items] | |||
Percentage of social security tax deposits due payment | 50.00% | ||
Percentage of social security tax deposits remaining payment | 50.00% | ||
United Kingdom [Member] | |||
Accrued Liabilities And Other Liabilities Current [Line Items] | |||
Liabilities related to deferrals | $ 0.5 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 26, 2020 | Jun. 26, 2020 | Dec. 27, 2019 | Sep. 25, 2020 | Mar. 27, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 5,034 | $ 3,300 | |||
Remaining restructuring commitments | 3,231 | $ 3,231 | $ 1,584 | $ 1,180 | $ 526 |
COVID-19 [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 5,000 | $ 5,000 | |||
COVID-19 [Member] | 2020 Restructuring Charge [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Remaining restructuring commitments | 900 | ||||
COVID-19 [Member] | 2019 Restructuring Charge [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Remaining restructuring commitments | $ 300 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Activity in Restructuring Expense Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Jun. 26, 2020 | Dec. 27, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||||
Accrual beginning balance | $ 3,231 | $ 526 | $ 1,584 | $ 1,584 | |
Additions | 5,034 | $ 3,300 | |||
Expenditures | (2,051) | (2,329) | (1,058) | ||
Accrual ending balance | 1,180 | 3,231 | 526 | 3,231 | 1,584 |
Severance and Other Employee Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accrual beginning balance | 3,018 | 257 | 1,247 | 1,247 | |
Additions | 5,034 | ||||
Expenditures | (2,020) | (2,273) | (990) | ||
Accrual ending balance | 998 | 3,018 | 257 | 3,018 | 1,247 |
Exit Closure and Consolidation of Facilities [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accrual beginning balance | 213 | 269 | 337 | 337 | |
Expenditures | (31) | (56) | (68) | ||
Accrual ending balance | $ 182 | $ 213 | $ 269 | $ 213 | $ 337 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 25, 2020USD ($) | Sep. 25, 2020USD ($) | |
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 4 years 6 months | 4 years 6 months |
Weighted average discount rate | 4.00% | 4.00% |
Operating lease payments | $ 0 | $ 1.8 |
Lessee, operating lease not yet commenced description | As of September 25, 2020, the Company does not have any additional operating leases that have not yet commenced. The | |
Five Year Opt-Out Option for London Office Lease [Member] | ||
Lessee Lease Description [Line Items] | ||
Weighted average remaining lease term | 3 years | 3 years |
London Office Lease [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease opt-out option | 5 years | 5 years |
Miami Office Lease [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease opt-out option | 4 years | 4 years |
Lessee, operating lease, option to extend | Company did extend its Miami office lease effective July 1, 2020, for an additional four years. | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases terms | 1 year | 1 year |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating leases terms | 10 years | 10 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 25, 2020 | Sep. 25, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 668 | $ 1,835 |
Total net lease costs | $ 668 | $ 1,835 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancellable Operating Leases) (Details) $ in Thousands | Sep. 25, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding the nine months ended September 25, 2020) | $ 689 |
2021 | 2,572 |
2022 | 2,281 |
2023 | 1,315 |
2024 | 982 |
2025 and thereafter | 1,251 |
Total lease payments | 9,090 |
Less imputed interest | (817) |
Total | $ 8,273 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - Revolving line of credit facility [Member] - USD ($) | Apr. 03, 2020 | Sep. 25, 2020 |
Line of Credit Facility [Line Items] | ||
Borrowing capacity under credit facility | $ 45,000,000 | $ 45,000,000 |
Maturity date | Nov. 30, 2022 | May 9, 2021 |
Increase in interest payable | 0.50% | |
Pledge of capital stock to U.S. subsidiaries | 100.00% | |
Pledge of capital stock to direct foreign subsidiaries | 66.00% | |
Outstanding balance | $ 0 | |
Commitment fees percentage | 0.125% | |
LIBOR Floor Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Margin percentage base rate | 0.75% | |
London Interbank Offered Rate (LIBOR) [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% |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 25, 2020USD ($)$ / sharesshares | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | shares | 635,655 |
Weighted average grant-date fair value | $ / shares | $ 15.47 |
Shares outstanding | shares | 1,213,312 |
Nonvested weighted average grant-date fair value | $ / shares | $ 16.53 |
Compensation expense | $ | $ 13.4 |
Weighted average period | 2 years 3 months 18 days |
Common Stock Subject to Vesting Requirements [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding | shares | 81,407 |
Nonvested weighted average grant-date fair value | $ / shares | $ 18.13 |
Compensation expense | $ | $ 0.8 |
Weighted average period | 1 year |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | Oct. 09, 2020 | Sep. 26, 2020 | Jul. 10, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | Dec. 27, 2019 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Total cost | $ 1,006,000 | $ 1,440,000 | $ 1,616,000 | ||||||||||
Amount available under repurchase plan | $ 4,700,000 | $ 4,700,000 | |||||||||||
Stock repurchase authorized | $ 147,200,000 | $ 147,200,000 | |||||||||||
Shares repurchased for employee net vesting obligations, shares | 8,000 | 5,000 | 135,000 | 129,000 | |||||||||
Shares repurchased for employee net vesting obligations, value | $ 111,000 | $ 88,000 | $ 2,100,000 | $ 2,500,000 | |||||||||
Dividend declared | $ 0.38 | ||||||||||||
Dividend payment | $ 3,100,000 | $ 3,024,000 | $ 3,050,000 | $ 13,000 | $ 5,800,000 | $ 5,789,000 | |||||||
Dividends payment, nature | During the second quarter of 2020, the Company announced its transition to a quarterly dividend payment cycle, subject to declaration. | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Dividend payment | $ 3,100,000 | ||||||||||||
Dividends payable, date declared | Dec. 18, 2020 | ||||||||||||
Dividends payable, payment date | Jan. 9, 2021 | ||||||||||||
Minimum [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Dividend declared | $ 0.34 | ||||||||||||
Maximum [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Dividend declared | $ 0.36 | ||||||||||||
Share Repurchase Plan [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Repurchase of common stock | 75,000 | 148,000 | 193,000 | ||||||||||
Purchase price per share | $ 12.41 | $ 13.09 | $ 15.80 | ||||||||||
Total cost | $ 900,000 | $ 1,900,000 | $ 3,100,000 | ||||||||||
Stock Appreciation Rights (“SARs”) [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
SARs outstanding | 2,900,000 | 2,900,000 | |||||||||||
Exercise price | $ 4 | $ 4 | |||||||||||
Expiration date | Feb. 8, 2022 |
Transactions with Related Par_2
Transactions with Related Parties (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 27, 2020 | Jun. 28, 2019 | Mar. 29, 2019 | Sep. 25, 2020 | |
Related Party Transaction [Line Items] | ||||
Total cost | $ 1,006 | $ 1,440 | $ 1,616 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 37 | |||
Total cost | $ 700 | |||
Purchase price per share | $ 17.43 |
Geographic and Group Informat_3
Geographic and Group Information (Geographic Revenue before Reimbursements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from continuing operations before reimbursements | $ 57,917 | $ 72,690 | $ 180,201 | $ 213,366 |
Revenue Before Reimbursements [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from continuing operations before reimbursements | 57,769 | 66,755 | 175,587 | 197,101 |
Revenue Before Reimbursements [Member] | North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from continuing operations before reimbursements | 51,343 | 56,014 | 155,912 | 165,301 |
Revenue Before Reimbursements [Member] | International (Primarily European Countries) [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from continuing operations before reimbursements | $ 6,426 | $ 10,741 | $ 19,675 | $ 31,800 |
Geographic and Group Informat_4
Geographic and Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Dec. 27, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 113,389 | $ 115,108 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 91,745 | 91,309 |
International (Primarily European Countries) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 21,644 | $ 23,799 |
Geographic and Group Informat_5
Geographic and Group Information (Narrative) (Details) - USD ($) $ in Millions | Sep. 25, 2020 | Dec. 27, 2019 |
Segment Reporting [Abstract] | ||
Goodwill included in foreign assets | $ 14.3 | $ 14.6 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Jibe Consulting, Inc [Member] - USD ($) $ in Millions | May 01, 2017 | Mar. 29, 2019 |
Business Acquisition [Line Items] | ||
Effective date of acquisition | May 1, 2017 | |
Purchase consideration | $ 5.4 | |
Purchase consideration, common stock | $ 3.6 | |
Common stock vesting period | 4 years | |
Contingent consideration performance period | 18 months | |
Selling Shareholder's [Member] | ||
Business Acquisition [Line Items] | ||
Cash compensation benefit | $ 1.2 | |
Cash Contingent Consideration [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 0.7 | |
Stock Based Contingent Consideration [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 1 |