Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Trading Symbol | HCKT | |
Entity Registrant Name | Hackett Group, Inc. | |
Entity Central Index Key | 0001057379 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 31,650,966 | |
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 | Apr. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 47,752 | $ 45,794 |
Accounts receivable and contract assets, net of allowance of $3,925 and $2,702 at April 1, 2022 and December 31, 2021, respectively | 50,514 | 50,616 |
Prepaid expenses and other current assets | 5,364 | 5,766 |
Total current assets | 103,630 | 102,176 |
Property and equipment, net | 18,212 | 18,026 |
Other assets | 540 | 620 |
Goodwill | 84,639 | 85,070 |
Operating lease right-of-use assets | 1,424 | 1,649 |
Total assets | 208,445 | 207,541 |
Current liabilities: | ||
Accounts payable | 8,041 | 7,677 |
Accrued expenses and other liabilities | 21,981 | 30,297 |
Contract liabilities (deferred revenue) | 15,863 | 14,616 |
Operating lease liabilities | 2,073 | 2,299 |
Total current liabilities | 47,958 | 54,889 |
Non-current deferred tax liability, net | 8,992 | 7,325 |
Operating lease liabilities | 1,180 | 1,474 |
Total liabilities | 58,130 | 63,688 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.001 par value, 1,250,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value, 125,000,000 shares authorized; 60,004,457 and 59,631,003 shares issued at April 1, 2022 and December 31, 2021, respectively | 60 | 60 |
Additional paid-in capital | 301,488 | 300,288 |
Treasury stock, at cost, 28,388,144 and 28,357,145 shares April 1, 2022 and December 31, 2021, respectively | (157,929) | (157,294) |
Retained earnings | 18,303 | 11,272 |
Accumulated other comprehensive loss | (11,607) | (10,473) |
Total shareholders' equity | 150,315 | 143,853 |
Total liabilities and shareholders' equity | $ 208,445 | $ 207,541 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 3,925 | $ 2,702 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 60,004,457 | 59,631,003 |
Treasury stock, at cost, shares | 28,388,144 | 28,357,145 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Revenue: | ||
Total revenue | $ 75,664 | $ 63,486 |
Cost of service: | ||
Total cost of service | 47,889 | 41,246 |
Selling, general and administrative costs (includes $933 and $740 of stock compensation expense in 2022 and 2021, respectively) | 14,366 | 13,387 |
Total costs and operating expenses | 62,255 | 54,633 |
Income from operations | 13,409 | 8,853 |
Other expense: | ||
Interest expense | (28) | (25) |
Income from operations before income taxes | 13,381 | 8,828 |
Income tax expense | 2,876 | 2,460 |
Income from continuing operations | 10,505 | 6,368 |
Loss from discontinued operations | (7) | |
Net income | $ 10,505 | $ 6,361 |
Basic net income per common share: | ||
Income per common share from continuing operations | $ 0.33 | $ 0.21 |
Loss per common share from discontinued operations | 0 | |
Net income per common share | 0.33 | 0.21 |
Diluted net income per common share: | ||
Income per common share from continuing operations | 0.33 | 0.19 |
Loss per common share from discontinued operations | 0 | |
Net income per common share | $ 0.33 | $ 0.19 |
Weighted average common shares outstanding: | ||
Basic | 31,449,408 | 30,207,490 |
Diluted | 31,843,563 | 32,769,167 |
Revenue Before Reimbursements [Member] | ||
Revenue: | ||
Total revenue | $ 75,108 | $ 63,410 |
Reimbursements [Member] | ||
Revenue: | ||
Total revenue | 556 | 76 |
Cost of service: | ||
Total cost of service | 556 | 76 |
Cost Before Reimbursements [Member] | ||
Cost of service: | ||
Total cost of service | $ 47,333 | $ 41,170 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share based compensation | $ 2,599 | $ 2,587 |
Cost Of Sales [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share based compensation | 1,666 | 1,847 |
Selling General And Administrative Expenses [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share based compensation | $ 933 | $ 740 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 10,505 | $ 6,361 |
Foreign currency translation adjustment | (1,134) | 269 |
Total comprehensive income | $ 9,371 | $ 6,630 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 10,505 | $ 6,361 |
Plus loss from discontinued operations | 7 | |
Net income from continuing operations | 10,505 | 6,368 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 802 | 874 |
Amortization expense | 144 | 261 |
Amortization of debt issuance costs | 14 | 11 |
Total share based compensation | 2,599 | 2,587 |
(Reversal) provision for doubtful accounts | (23) | 137 |
(Gain) loss on foreign currency translation | (298) | 61 |
Deferred income tax expense | 1,643 | 1,378 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable and contract assets | 177 | (6,091) |
Decrease in prepaid expenses and other assets | 640 | 182 |
Increase (decrease) in accounts payable | 363 | (1,159) |
Decrease in accrued expenses and other liabilities | (11,760) | (4,985) |
Increase in contract liabilities | 1,248 | 5,037 |
Increase in income tax payable | 1,241 | |
Net cash provided by operating activities | 6,054 | 5,895 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (993) | (525) |
Net cash used in investing activities | (993) | (525) |
Cash flows from financing activities: | ||
Debt issuance costs | (10) | |
Repurchase of common stock | (3,066) | (3,716) |
Net cash used in financing activities | (3,076) | (3,716) |
Effect of exchange rate on cash | (27) | (4) |
Net increase in cash and cash equivalents | 1,958 | 1,650 |
Cash at beginning of period | 45,794 | 49,455 |
Cash at end of period | 47,752 | 51,105 |
Supplemental disclosure of cash flow information: | ||
Cash paid (refunded) for income taxes | $ 1 | (181) |
Cash paid for interest | $ 14 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jan. 01, 2021 | $ 140,887 | $ 58 | $ 312,039 | $ (144,254) | $ (17,388) | $ (9,568) |
Balance, Shares at Jan. 01, 2021 | 57,693 | (27,609) | ||||
Issuance of common stock | (1,605) | (1,605) | ||||
Issuance of common stock, Shares | 294 | |||||
Treasury stock purchased | (2,110) | $ (2,110) | ||||
Treasury stock purchased, Shares | (136) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 2,633 | 2,633 | ||||
Dividends declared | (3,254) | (3,254) | ||||
Net income | 6,361 | 6,361 | ||||
Foreign currency translation | 269 | 269 | ||||
Balance at Apr. 02, 2021 | 143,181 | $ 58 | 313,067 | $ (146,364) | (14,281) | (9,299) |
Ending Balance, Shares at Apr. 02, 2021 | 57,987 | (27,745) | ||||
Balance at Dec. 31, 2021 | 143,853 | $ 60 | 300,288 | $ (157,294) | 11,272 | (10,473) |
Balance, Shares at Dec. 31, 2021 | 59,631 | (28,358) | ||||
Issuance of common stock | (2,432) | (2,432) | ||||
Issuance of common stock, Shares | 373 | |||||
Treasury stock purchased | (635) | $ (635) | ||||
Treasury stock purchased, Shares | (31) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 3,632 | 3,632 | ||||
Dividends declared | (3,474) | (3,474) | ||||
Net income | 10,505 | 10,505 | ||||
Foreign currency translation | (1,134) | (1,134) | ||||
Balance at Apr. 01, 2022 | $ 150,315 | $ 60 | $ 301,488 | $ (157,929) | $ 18,303 | $ (11,607) |
Ending Balance, Shares at Apr. 01, 2022 | 60,004 | (28,389) |
Basis of Presentation and Gener
Basis of Presentation and General Information | 3 Months Ended |
Apr. 01, 2022 | |
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 31, 2021, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 4, 2022. The consolidated results of operations for the quarter ended April 1, 2022, 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 generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support and maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. 1. Basis of Presentation and General Information (continued) Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America 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 maintenance which is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. The payment terms and conditions in the Company’s customer contracts vary. The agreements entered into in connection with a project, whether time and materials-based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. Differences between the timing of billings and the recognition of revenue are recognized as either contract assets or contract liabilities in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as contract assets. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within contract assets. Client prepayments are classified as contract liabilities and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances. During the quarter ended April 1, 2022, the Company recognized $6.9 million of revenue as a result of changes in the contract liability balance, as compared to $4.0 million for the quarter ended April 2, 2021. The following table reflects the Company’s disaggregation of total revenue for the quarters ended April 1, 2022 and April 2, 2021: Quarter Ended April 1, April 2, 2022 2021 Consulting $ 74,498 $ 62,109 Software license sales 1,166 1,301 Total revenue $ 75,664 $ 63,486 1. Basis of Presentation and General Information (continued) Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which 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 31, 2021, and January 1, 2021, the Company had $1.6 million and $1.5 million $0.4 Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable, accrued expenses and other liabilities and contract liabilities. As of April 1, 2022 and December 31, 2021, 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. COVID-19 Pandemic Impact on the Business The level of revenue the Company achieves is based on its ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. In each of the four quarters of 2021, the Company’s revenue before reimbursements and diluted earnings per share grew when compared to the fourth quarter of 2020 reflecting a continuation of improved economic conditions. However, any reversal of these trends or a prolonged economic downturn as a result of the impact of COVID-19 variants, or otherwise, weak or uncertain economic conditions or similar factors could adversely affect our clients' financial condition which may further reduce our clients' demand for our services. The Company continues to actively manage its business to respond to the impact of the COVID-19 pandemic. At the onset of the pandemic, the Company reduced employee headcount and restricted employee travel to only essential business needs. While headcount has increased and some select non-essential travel is being allowed, most of the Company’s employees continue to work remotely from home. The Company is generally following the requirements, recommendation and protocols published by the U.S. Centers for Disease Control and the World Health Organization, and state and local governments. 1. Basis of Presentation and General Information (continued) As a response to the ongoing COVID-19 pandemic, the Company has implemented plans to manage its costs and preserve cash at the onset of the COVID-19 pandemic. The Company 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. At the end of June 2020, the Company reduced its global workforce by approximately 10% and recorded a $5.0 million restructuring charge. During the fourth quarter of 2020, as a result of and in consideration of the COVID-19 pandemic, and the changing nature of its use of office space for its workforce, the Company evaluated its existing office leases as part of the Company’s transformation initiatives related to real estate. This evaluation resulted in the complete and partial abandonment of certain leased office spaces and an asset impairment charge of $3.9 million for certain lease right-of-use assets and certain property, equipment and leasehold improvements. All client concessions and accounts receivable allowances have been appropriately reflected in our financial statements. To the extent that economic conditions do not continue to improve and the business is again disrupted, the reinstatement of cost management actions will be considered. Future asset impairment charges, increases in allowance for doubtful accounts, or restructuring charges will be dependent on the severity and duration of the COVID-19 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 the COVID-19 pandemic could have on the Company’s financial condition and operating results remains highly uncertain. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Apr. 01, 2022 | |
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. The following table reconciles basic and dilutive weighted average common shares: Quarter Ended April 1, April 2, 2022 2021 Basic weighted average common shares outstanding 31,449,408 30,207,490 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees 370,033 264,210 Common stock issuable upon the exercise of stock options and SARs 24,122 2,297,467 Dilutive weighted average common shares outstanding 31,843,563 32,769,167 Approximately 6 hundred shares and 3 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended April 1, 2022 and April 2, 2021, 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 | 3 Months Ended |
Apr. 01, 2022 | |
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): April 1, December 31, 2022 2021 Accounts receivable $ 32,924 $ 30,732 Contract assets (unbilled revenue) 21,515 22,586 Allowance for doubtful accounts (3,925 ) (2,702 ) Accounts receivable and contract assets, net $ 50,514 $ 50,616 Accounts receivable is net of uncollected advanced billings. Contract assets represents revenue for services performed that have not been invoiced. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Apr. 01, 2022 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Accrued Expenses and Other Liabilities | 4. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): April 1, December 31, 2022 2021 Accrued compensation and benefits $ 6,143 $ 7,730 Deferred employer's payroll taxes 1,780 1,780 Accrued bonuses 5,247 13,753 Accrued dividend payable 3,475 - Restructuring liability 666 740 Accrued sales, use, franchise and VAT tax 1,515 1,783 Non-cash stock compensation accrual 324 1,357 Other accrued expenses 2,831 3,154 Total accrued expenses and other liabilities $ 21,981 $ 30,297 As a result of the tax deduction related to the exercise of the 2.9 million SARs in 2021, the Company has recorded an income tax receivable of $2.3 million to prepaid expenses and other current assets on the consolidated balance sheet. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Apr. 01, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 5. Restructuring Costs During 2020, the Company recorded restructuring costs of $10.5 million, of which $5.7 million was primarily related to the reduction of staff in Europe and Australia. As of April 1, 2022, the Company had $0.7 million The following table sets forth the activity in the restructuring expense accruals (in thousands): Exit, Closure and Employee Related Consolidation Costs of Facilities Total Accrual balance at January 1, 2021 1,083 1,209 2,292 Cash paid (1,013 ) (539 ) (1,552 ) Accrual balance at December 31, 2021 $ 70 $ 670 $ 740 Cash paid — (74 ) (74 ) Accrual balance at April 1, 2022 $ 70 $ 596 $ 666 |
Leases
Leases | 3 Months Ended |
Apr. 01, 2022 | |
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 4 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset. The components of lease expense were as follows for the three months ended April 1, 2022 (in thousands): Operating lease cost $ 257 Total net lease costs $ 257 6. Leases (continued) The weighted average remaining lease term is 1 year. 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 our lease payments in a similar economic environment. For the three months ended April 1, 2022, the Company paid $ from operating cash flows for its operating leases. Future minimum lease payments under non-cancellable operating leases as of April 1, 2022, were as follows (in thousands): 2022 (excluding the three months ended April 1, 2022) $ 1,968 2023 1,017 2024 579 Thereafter - Total lease payments 3,564 Less imputed interest (122 ) Total $ 3,442 As of April 1, 2022, the Company does not have any additional operating leases that have not yet commenced. |
Credit Facility
Credit Facility | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facility | 7. Credit Facility The Company has a credit agreement with Bank of America, N.A., which provides for borrowing up to $45.0 million pursuant to a revolving line of credit (the “Revolver”) which has a maturity date of November 30, 2022 (as amended the “Credit Agreement”). 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 April 1, 2022 and December 31, 2021, the Company did not have any outstanding balance 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 April 1, 2022, the Company was in compliance with all covenants. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Apr. 01, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 8. Stock Based Compensation During the three months ended April 1, 2022, the Company issued 19.24 As of April 1, 2022, the Company had 2,945 shares Forfeitures for all of the Company’s outstanding equity awards are recognized as incurred. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 01, 2022 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Stock Appreciation Rights (“SARs”) As of April 1, 2022, the Company did not have any outstanding SARs. In December 2021, 2.9 million SARs were exercised with an exercise price of 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 three months ended April 1, 2022, the Company repurchased 31 thousand shares of its common stock at an average price of $20.50 per share for a total cost of $0.6 During the quarter ended April 2, 2021, the Company repurchased 136 thousand shares of its common stock at an average price of $15.45 per share for a total cost of $2.1 million. The shares repurchased under the share repurchase plan during the quarter ended April 1, 2022, do not include 126 thousand Dividend Program In 2021, the Company increased the annual dividend from $0.38 per share to $0.40 per share to be paid on a quarterly basis and during the first quarter of 2022, the Company further increased the annual dividend to $0.44 per share. During the first quarter of 2022, the Company declared its first quarterly dividend to shareholders of $3.5 million and which was paid in April 2022. These dividends were paid from U.S. domestic sources and are accounted for as an increase to accumulated deficit. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Apr. 01, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 10. Transactions with Related Parties During the three months ended April 1, 2022, the Company bought back 31 thousand shares of its common stock from members of its Board of Directors for $0.6 million, or $20.50 per share. |
Litigation
Litigation | 3 Months Ended |
Apr. 01, 2022 | |
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 | 3 Months Ended |
Apr. 01, 2022 | |
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 April 1, April 2, 2022 2021 United States $ 64,392 $ 55,259 Europe 7,537 5,558 Other (Australia, Canada, India and Uruguay) 3,735 2,669 Total revenue $ 75,664 $ 63,486 12. Geographic and Group Information (continued) Long-lived assets are attributable to the following geographic areas (in thousands): April 1, December 31, 2022 2021 Long-lived assets: United States $ 89,158 $ 89,199 Europe 15,060 15,584 Other (Australia, Canada, India and Uruguay) 597 582 Total long-lived assets $ 104,815 $ 105,365 As of April 1, 2022 and December 31, 2021, foreign assets included $14.6 |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Policies) | 3 Months Ended |
Apr. 01, 2022 | |
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 31, 2021, included in the Annual Report on Form 10-K filed by the Company with the SEC on March 4, 2022. The consolidated results of operations for the quarter ended April 1, 2022, 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 generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support and maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. 1. Basis of Presentation and General Information (continued) Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America 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 maintenance which is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. The payment terms and conditions in the Company’s customer contracts vary. The agreements entered into in connection with a project, whether time and materials-based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. Differences between the timing of billings and the recognition of revenue are recognized as either contract assets or contract liabilities in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as contract assets. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within contract assets. Client prepayments are classified as contract liabilities and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and contract asset balances. During the quarter ended April 1, 2022, the Company recognized $6.9 million of revenue as a result of changes in the contract liability balance, as compared to $4.0 million for the quarter ended April 2, 2021. The following table reflects the Company’s disaggregation of total revenue for the quarters ended April 1, 2022 and April 2, 2021: Quarter Ended April 1, April 2, 2022 2021 Consulting $ 74,498 $ 62,109 Software license sales 1,166 1,301 Total revenue $ 75,664 $ 63,486 1. Basis of Presentation and General Information (continued) Capitalized Sales Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. The Company determined the period of amortization by taking into consideration the customer contract period, which 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 31, 2021, and January 1, 2021, the Company had $1.6 million and $1.5 million $0.4 Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. |
Fair Value | Fair Value The Company’s financial instruments consist of cash, accounts receivable and contract assets, accounts payable, accrued expenses and other liabilities and contract liabilities. As of April 1, 2022 and December 31, 2021, 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. |
COVID-19 Pandemic Impact on Our Business | COVID-19 Pandemic Impact on the Business The level of revenue the Company achieves is based on its ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. In each of the four quarters of 2021, the Company’s revenue before reimbursements and diluted earnings per share grew when compared to the fourth quarter of 2020 reflecting a continuation of improved economic conditions. However, any reversal of these trends or a prolonged economic downturn as a result of the impact of COVID-19 variants, or otherwise, weak or uncertain economic conditions or similar factors could adversely affect our clients' financial condition which may further reduce our clients' demand for our services. The Company continues to actively manage its business to respond to the impact of the COVID-19 pandemic. At the onset of the pandemic, the Company reduced employee headcount and restricted employee travel to only essential business needs. While headcount has increased and some select non-essential travel is being allowed, most of the Company’s employees continue to work remotely from home. The Company is generally following the requirements, recommendation and protocols published by the U.S. Centers for Disease Control and the World Health Organization, and state and local governments. 1. Basis of Presentation and General Information (continued) As a response to the ongoing COVID-19 pandemic, the Company has implemented plans to manage its costs and preserve cash at the onset of the COVID-19 pandemic. The Company 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. At the end of June 2020, the Company reduced its global workforce by approximately 10% and recorded a $5.0 million restructuring charge. During the fourth quarter of 2020, as a result of and in consideration of the COVID-19 pandemic, and the changing nature of its use of office space for its workforce, the Company evaluated its existing office leases as part of the Company’s transformation initiatives related to real estate. This evaluation resulted in the complete and partial abandonment of certain leased office spaces and an asset impairment charge of $3.9 million for certain lease right-of-use assets and certain property, equipment and leasehold improvements. All client concessions and accounts receivable allowances have been appropriately reflected in our financial statements. To the extent that economic conditions do not continue to improve and the business is again disrupted, the reinstatement of cost management actions will be considered. Future asset impairment charges, increases in allowance for doubtful accounts, or restructuring charges will be dependent on the severity and duration of the COVID-19 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 the COVID-19 pandemic could have on the Company’s financial condition and operating results remains highly uncertain. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Disaggregation of Total Revenue | The following table reflects the Company’s disaggregation of total revenue for the quarters ended April 1, 2022 and April 2, 2021: Quarter Ended April 1, April 2, 2022 2021 Consulting $ 74,498 $ 62,109 Software license sales 1,166 1,301 Total revenue $ 75,664 $ 63,486 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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 April 1, April 2, 2022 2021 Basic weighted average common shares outstanding 31,449,408 30,207,490 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees 370,033 264,210 Common stock issuable upon the exercise of stock options and SARs 24,122 2,297,467 Dilutive weighted average common shares outstanding 31,843,563 32,769,167 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets, Net (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Receivables Net Current [Abstract] | |
Accounts Receivable and Contract Assets, Net | Accounts receivable and contract assets, net, consisted of the following (in thousands): April 1, December 31, 2022 2021 Accounts receivable $ 32,924 $ 30,732 Contract assets (unbilled revenue) 21,515 22,586 Allowance for doubtful accounts (3,925 ) (2,702 ) Accounts receivable and contract assets, net $ 50,514 $ 50,616 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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): April 1, December 31, 2022 2021 Accrued compensation and benefits $ 6,143 $ 7,730 Deferred employer's payroll taxes 1,780 1,780 Accrued bonuses 5,247 13,753 Accrued dividend payable 3,475 - Restructuring liability 666 740 Accrued sales, use, franchise and VAT tax 1,515 1,783 Non-cash stock compensation accrual 324 1,357 Other accrued expenses 2,831 3,154 Total accrued expenses and other liabilities $ 21,981 $ 30,297 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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 Employee Related Consolidation Costs of Facilities Total Accrual balance at January 1, 2021 1,083 1,209 2,292 Cash paid (1,013 ) (539 ) (1,552 ) Accrual balance at December 31, 2021 $ 70 $ 670 $ 740 Cash paid — (74 ) (74 ) Accrual balance at April 1, 2022 $ 70 $ 596 $ 666 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows for the three months ended April 1, 2022 (in thousands): Operating lease cost $ 257 Total net lease costs $ 257 |
Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum lease payments under non-cancellable operating leases as of April 1, 2022, were as follows (in thousands): 2022 (excluding the three months ended April 1, 2022) $ 1,968 2023 1,017 2024 579 Thereafter - Total lease payments 3,564 Less imputed interest (122 ) Total $ 3,442 |
Geographic and Group Informat_2
Geographic and Group Information (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Geographic Revenue before Reimbursements | 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 April 1, April 2, 2022 2021 United States $ 64,392 $ 55,259 Europe 7,537 5,558 Other (Australia, Canada, India and Uruguay) 3,735 2,669 Total revenue $ 75,664 $ 63,486 |
Long-Lived Assets Attributable To Geographic Areas | 12. Geographic and Group Information (continued) Long-lived assets are attributable to the following geographic areas (in thousands): April 1, December 31, 2022 2021 Long-lived assets: United States $ 89,158 $ 89,199 Europe 15,060 15,584 Other (Australia, Canada, India and Uruguay) 597 582 Total long-lived assets $ 104,815 $ 105,365 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information (Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Apr. 01, 2022 | Apr. 02, 2021 | Jan. 01, 2021 | Jun. 26, 2020 | Dec. 31, 2021 | |
Basis Of Presentation And General Information [Line Items] | |||||
Revenue recognized as a result of change in contract liability | $ 6,900,000 | $ 4,000,000 | |||
Deferred commissions | $ 1,500,000 | $ 1,600,000 | |||
Commissions expense | 400,000 | 200,000 | |||
Impairment loss recognized to capitalization of deferred commission | $ 0 | $ 0 | |||
COVID-19 [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Global workforce reduced, percentage | 10.00% | ||||
Restructuring costs | $ 5,000,000 | ||||
Asset impairment charges | $ 3,900,000 | ||||
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 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 75,664 | $ 63,486 |
Consulting [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 74,498 | 62,109 |
Software License Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,166 | $ 1,301 |
Net Income Per Common Share (Re
Net Income Per Common Share (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 31,449,408 | 30,207,490 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees | 370,033 | 264,210 |
Common stock issuable upon the exercise of stock options and SARs | 24,122 | 2,297,467 |
Dilutive weighted average common shares outstanding | 31,843,563 | 32,769,167 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive common share equivalents | 600 | 3,000 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets, Net (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Receivables Net Current [Abstract] | ||
Accounts receivable | $ 32,924 | $ 30,732 |
Contract assets (unbilled revenue) | 21,515 | 22,586 |
Allowance for doubtful accounts | (3,925) | (2,702) |
Accounts receivable and contract assets, net | $ 50,514 | $ 50,616 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued compensation and benefits | $ 6,143 | $ 7,730 |
Deferred employer's payroll taxes | 1,780 | 1,780 |
Accrued bonuses | 5,247 | 13,753 |
Accrued dividend payable | 3,475 | |
Restructuring liability | 666 | 740 |
Accrued sales, use, franchise and VAT tax | 1,515 | 1,783 |
Non-cash stock compensation accrual | 324 | 1,357 |
Other accrued expenses | 2,831 | 3,154 |
Total accrued expenses and other liabilities | $ 21,981 | $ 30,297 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Apr. 01, 2022 | |
Accrued Expenses and Other Liabilities [Line Items] | ||
Income tax receivable | $ 2.3 | |
Stock Appreciation Rights ("SARs") [Member] | ||
Accrued Expenses and Other Liabilities [Line Items] | ||
Shares exercised | 2.9 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 10,500 | ||
Restructuring Reserve | 666 | $ 740 | $ 2,292 |
Europe and Australia [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 5,700 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Activity in Restructuring Expense Accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 01, 2022 | Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||
Accrual beginning balance | $ 740 | $ 2,292 |
Cash paid | (74) | (1,552) |
Accrual ending balance | 666 | 740 |
Employee Related Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrual beginning balance | 70 | 1,083 |
Cash paid | (1,013) | |
Accrual ending balance | 70 | 70 |
Exit Closure and Consolidation of Facilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrual beginning balance | 670 | 1,209 |
Cash paid | (74) | (539) |
Accrual ending balance | $ 596 | $ 670 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Lessee Lease Description [Line Items] | |
Weighted average remaining lease term | 1 year |
Weighted average discount rate | 4.00% |
Operating lease payments | $ 0.6 |
Lessee, operating lease not yet commenced description | As of April 1, 2022, the Company does not have any additional operating leases that have not yet commenced |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating leases terms | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating leases terms | 4 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 257 |
Total net lease costs | $ 257 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancellable Operating Leases) (Details) $ in Thousands | Apr. 01, 2022USD ($) |
Leases [Abstract] | |
2022 (excluding the three months ended April 1, 2022) | $ 1,968 |
2023 | 1,017 |
2024 | 579 |
Total lease payments | 3,564 |
Less imputed interest | (122) |
Total | $ 3,442 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - Revolving line of credit facility [Member] - USD ($) | 3 Months Ended | |
Apr. 01, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Borrowing capacity under credit facility | $ 45,000,000 | |
Maturity date | Nov. 30, 2022 | |
Pledge of capital stock to U.S. subsidiaries | 100.00% | |
Pledge of capital stock to direct foreign subsidiaries | 66.00% | |
Outstanding balance | $ 0 | $ 0 |
Commitment fees percentage | 0.125% | |
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 Thousands | 3 Months Ended |
Apr. 01, 2022USD ($)$ / sharesshares | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | shares | 682,781 |
Weighted average grant-date fair value | $ / shares | $ 19.24 |
Shares outstanding | shares | 1,353,549 |
Nonvested weighted average grant-date fair value | $ / shares | $ 17.60 |
Compensation expense | $ | $ 18,700 |
Weighted average period | 2 years 8 months 12 days |
Common Stock Subject to Vesting Requirements [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding | shares | 2,945 |
Nonvested weighted average grant-date fair value | $ / shares | $ 16.17 |
Compensation expense | $ | $ 23 |
Weighted average period | 1 year 6 months |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | Apr. 02, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Total cost | $ 635,000 | $ 2,110,000 | |||
Amount available under repurchase plan | 10,600,000 | ||||
Stock repurchase authorized | $ 167,200,000 | ||||
Shares repurchased for employee net vesting obligations, shares | 126,000 | 108,000 | |||
Shares repurchased for employee net vesting obligations, value | $ 2,400,000 | $ 1,600,000 | |||
Dividend declared | $ 0.44 | ||||
Dividend payment | $ 3,474,000 | $ 3,254,000 | |||
Subsequent Event [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Dividend payment | $ 3,500,000 | ||||
Dividends payable, date declared, year | 2022 | ||||
Dividends payable, date to be paid, year and month | 2022-07 | ||||
Minimum [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Dividend declared | $ 0.38 | ||||
Maximum [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Dividend declared | $ 0.40 | ||||
Share Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock | 31,000 | 136,000 | |||
Purchase price per share | $ 20.50 | $ 15.45 | |||
Total cost | $ 600,000 | $ 2,100,000 | |||
Stock Appreciation Rights ("SARs") [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
SARs outstanding | 0 | 2,900,000 | |||
Exercise price | $ 4 |
Transactions with Related Par_2
Transactions with Related Parties (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Related Party Transaction [Line Items] | ||
Total cost | $ 635 | $ 2,110 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Repurchase of common stock | 31 | |
Total cost | $ 600 | |
Purchase price per share | $ 20.50 |
Geographic and Group Informat_3
Geographic and Group Information (Geographic Revenue before Reimbursements) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 75,664 | $ 63,486 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 64,392 | 55,259 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 7,537 | 5,558 |
Other (Australia, Canada, India and Uruguay) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 3,735 | $ 2,669 |
Geographic and Group Informat_4
Geographic and Group Information (Long-Lived Assets Attributable To Geographic Areas) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 104,815 | $ 105,365 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 89,158 | 89,199 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 15,060 | 15,584 |
Other (Australia, Canada, India and Uruguay) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 597 | $ 582 |
Geographic and Group Informat_5
Geographic and Group Information (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Segment Reporting [Abstract] | ||
Goodwill included in foreign assets | $ 14.6 | $ 15.1 |