The Hackett Group(HCKT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $79.2 million, up 9.9% from $72.4 million in Q4 2023[3] - Adjusted diluted earnings per share for Q4 2024 was $0.47, compared to $0.39 in Q4 2023, representing a 20.5% increase[3] - GAAP diluted earnings per share decreased to $0.12 in Q4 2024 from $0.28 in Q4 2023, impacted by non-cash compensation expenses totaling $7.4 million[3] - Total revenue for the fourth quarter of 2024 was $79.235 million, an increase of 9.4% compared to $72.403 million in the same quarter of 2023[14] - Adjusted net income for the fourth quarter was $13.566 million, compared to $10.826 million in the prior year, reflecting a 25.5% increase[17] - Total revenue for the fourth quarter was $79,235,000, a slight decrease of 0.7% from $79,777,000 in the previous quarter and an increase of 9.3% from $72,403,000 in the same quarter last year[22] - Revenue before reimbursements for the fourth quarter was $77,456,000, compared to $77,949,000 in the previous quarter and $71,167,000 in the same quarter last year, reflecting a year-over-year increase of 8.8%[22] Cash Flow and Assets - Cash flow from operations for Q4 2024 was $20.6 million, down from $25.6 million in Q4 2023[3] - Cash provided by operating activities for the fourth quarter was $20,640,000, a substantial increase from $10,578,000 in the previous quarter but a decrease from $25,587,000 in the same quarter last year[22] - The company reported total assets of $191.877 million as of December 27, 2024, compared to $181.428 million a year earlier, representing a growth of 5.5%[13] - Total liabilities decreased to $76.303 million from $91.348 million, a reduction of 16.5% year-over-year[13] - Cash and cash equivalents decreased to $16.366 million from $20.957 million, a decline of 22%[13] Shareholder Returns - The board approved a 9% increase in the annual dividend from $0.44 to $0.48 per share, with a quarterly dividend of $0.12 to be paid on April 4, 2025[4] - The company repurchased 117,000 shares at an average price of $30.95, totaling $3.6 million, with remaining authorization of $27.5 million[4] - The company repurchased 117,000 shares at an average price of $30.95, totaling $3,630,000, compared to 65,000 shares at $26.77 in the previous quarter[22] - Remaining plan authorization for share repurchases increased to $27,516,000 from $11,146,000 in the previous quarter, indicating a strong capacity for future buybacks[22] Segment Performance - Segment profit for Global S&BT was $14.688 million, up from $13.506 million year-over-year, while Oracle Solutions segment profit decreased to $2.959 million from $4.094 million[14] - SAP Solutions segment revenue increased significantly to $17.184 million from $11.243 million, with segment profit rising to $6.910 million from $3.439 million[14] - The Oracle Solutions segment reported total revenue of $18,174,000, down 20.3% from $22,759,000 in the previous quarter but consistent with $18,998,000 in the same quarter last year[22] - The SAP Solutions segment achieved total revenue of $17,184,000, a significant increase of 32.5% from $12,953,000 in the previous quarter and an increase of 52.4% from $11,243,000 in the same quarter last year[22] Future Outlook - The company expects total revenue before reimbursements for Q1 2025 to be between $75.0 million and $76.5 million[7] - Adjusted diluted earnings per share for Q1 2025 is estimated to be in the range of $0.39 to $0.41[7] Workforce and Operational Metrics - Consultant headcount increased to 1,284, up from 1,262 in the previous quarter and 1,168 in the same quarter last year, indicating growth in workforce[22] - Days sales outstanding (DSO) improved to 66 days, down from 70 days in the previous quarter and consistent with 65 days in the same quarter last year[22] Strategic Initiatives - The acquisition of LeewayHertz enhances the company's Gen AI consulting and implementation capabilities, supported by AI XPLR and ZBrain platforms[2] - The company is set to release AI XPLR version 3, which will provide industry-specific dynamic simulations for Gen AI solutions[2]