The Hackett Group Announces Record Third Quarter 2016 Results

The Hackett Group, Inc. (NASDAQ:HCKT), a global intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm, today announced its financial results for the third quarter, which ended on September 30, 2016.

Q3 2016 revenue was $74.1 million, up 10% from prior year. Q3 2016 pro forma diluted earnings per share were $0.25, up 25%, when compared to $0.20 for the same period in 2015. Pro forma information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.

GAAP diluted earnings per share were $0.17 for the third quarter of 2016, up 70%, as compared to $0.10 in the third quarter of 2015.

At the end of the third quarter of 2016, the Company's cash balances were $14.4 million. During the third quarter of 2016, the Company utilized cash to repurchase 34 thousand shares of the Company's common stock at an average price per share of $14.76 for a total of approximately $0.5 million. Approximately $4.4 million remained available under the Company's share repurchase program at the end of the quarter. In addition, during the third quarter of 2016, the Company repaid $9.0 million of borrowings on its debt facility.

In its recent meeting, the Company's Board of Directors declared the payment of its second semi-annual dividend of $0.13 per share for shareholders of record on December 22, 2016. This dividend will be paid on January 5, 2017.

"We reported another strong quarter driven by solid US results and improved European activity and results," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "Additionally, we continue to build our new best practices "IP as a Service" offerings and see opportunities to expand existing alliances as well as introduce new offerings."

Based on the current economic outlook, the Company estimates total revenue for the fourth quarter of 2016 to be in the range of $67.0 million to $69.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.23 to $0.25. At the high-end of guidance, EPS would increase 19%, when compared to prior year.

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