The Hackett Group(HCKT)2025-02-28 21:21Revenue Performance - Total revenue for fiscal year 2024 increased to $313.9 million, compared to $296.6 million in 2023, primarily driven by increases in SAP Solutions segment revenue of $10.2 million and Oracle Solutions segment revenue of $7.9 million[144] - Total revenue for the company increased to $313.9 million in 2024, up from $296.6 million in 2023, representing a growth of 5.4%[147] - Global S&BT revenue decreased to $171.1 million in 2024, down from $171.9 million in 2023, a decline of 0.5%[147] - Oracle Solutions revenue rose to $85.7 million in 2024, an increase of 10.5% from $77.8 million in 2023[149] - SAP Solutions revenue increased to $57.1 million in 2024, up 21.5% from $46.9 million in 2023[150] - One customer accounted for 11% of total revenue in 2024, up from 6% in 2023, indicating increased customer concentration[146] Acquisitions and Goodwill - The Hackett Group acquired 100% of LeewayHertz Technologies for a provisional purchase consideration of $7.8 million, resulting in provisional goodwill of $5.9 million[133] - The provisional fair value of the net assets acquired from LeewayHertz includes cash of $1.02 million, current assets of $2.08 million, and intangible assets of $2.5 million[135] - Goodwill related to LeewayHertz has been allocated to the Global S&BT segment, increasing the total goodwill to $89.8 million as of December 27, 2024[137] - The company acquired LeewayHertz for $6.5 million in 2024, contributing to the increase in cash used in investing activities to $10.6 million[166] Operating Expenses and Costs - Total costs and operating expenses for fiscal year 2024 were $269.3 million, compared to $247.3 million in 2023, reflecting an increase in personnel and administrative costs[143] - Personnel costs before reimbursable expenses increased to $183.8 million in 2024, compared to $174.9 million in 2023, a rise of 5.1%[152] - SG&A costs increased by 19% to $78.5 million in 2024, compared to $65.9 million in 2023[155] - The company recognized stock compensation expenses of $10.5 million in 2024, compared to $6.2 million in 2023, indicating increased equity awards[143] Cash Flow and Dividends - Net cash provided by operating activities was $47.7 million in 2024, up from $37.4 million in 2023, an increase of 27.5%[165] - The company approved a 9% increase in the dividend, raising the annual dividend amount to $0.48 per share[173] - As of December 27, 2024, the company had $16.4 million in cash and $12.7 million outstanding under its Credit Facility[163] Market Risks and Currency Exchange - The company has exposure to market risk due to variable interest rates on its Credit Facility, but a 100-basis point increase would not materially impact 2024 results[178] - The company recognized foreign currency exchange losses of $19 thousand in 2024 and $0.4 million in 2023, compared to an income of $1.4 million in 2022[179] - Currently, the company does not hold any derivative contracts to hedge foreign currency risk but may consider adopting such strategies in the future[179] Strategic Initiatives - The Hackett Group completed over 27,500 benchmarking and performance studies, utilizing its Quantum Leap platform to drive digital transformation[125] - The company launched its AI assessment platform, AI XPLR, in early 2024 to help clients identify and design Gen AI enablement opportunities[123] - The joint venture with LeewayHertz aims to integrate AI XPLR and ZBrain platforms to provide advanced Gen AI solutions, expected to be formed by mid-2025[136]