The Hackett Group(US:HCKT)2022-08-10 19:25Revenue Performance - Total revenue increased by 4% to $75.9 million in Q2 2022 and by 11% to $151.6 million in the first six months of 2022 compared to the same periods in 2021[84]. - S&BT revenue was $33.4 million in Q2 2022 and $63.4 million in the first six months of 2022, reflecting growth from $26.5 million and $52.3 million in the same periods of 2021[85]. - EEA revenue was $36.8 million in Q2 2022 and $74.7 million in the first six months of 2022, compared to $40.7 million and $72.9 million in the same periods of 2021, excluding a $5.3 million software sale transaction[86]. - International revenue decreased by 4% in Q2 2022 but increased by 17% in the first six months of 2022 compared to the same periods in 2021[87]. Cost and Expense Management - Personnel costs before reimbursable expenses increased by 3% to $44.7 million in Q2 2022 and by 9% to $92.0 million in the first six months of 2022 compared to the same periods in 2021[90]. - SG&A costs increased by 2% to $15.9 million in Q2 2022 and by 5% to $30.3 million in the first six months of 2022 compared to the same periods in 2021[94]. - Non-cash stock compensation expense increased to $1.2 million in Q2 2022 from $0.9 million in Q2 2021, reflecting higher incentive compensation due to company performance[95]. - Amortization expense decreased to $154 thousand in the first six months of 2022 from $500 thousand in the same period of 2021, as intangible assets from acquisitions were fully amortized[96]. Profitability Metrics - Net income for Q2 2022 was $10.2 million, compared to $10.5 million in Q2 2021, and for the first six months of 2022 was $20.7 million, compared to $16.9 million in the same period of 2021[82]. - Diluted net income per share was $0.32 for Q2 2022 and $0.65 for the first six months of 2022, compared to $0.32 and $0.51 in the same periods of 2021[82]. - Income tax expense for Q2 2022 was $3.9 million with an effective tax rate of 28%, compared to $3.7 million and 26% in Q2 2021[97]. Cash Flow Analysis - Cash flows from operating activities increased to $24.3 million in the first six months of 2022 from $19.7 million in the same period of 2021, primarily due to net income adjustments[100]. - Cash flows used in investing activities rose to $2.3 million in the first six months of 2022 from $1.4 million in the same period of 2021, mainly for the development of Quantum Leap benchmark technologies[101]. - Cash flows used in financing activities decreased to $6.1 million in the first six months of 2022 from $15.2 million in the same period of 2021, with $3.1 million for stock repurchase[102]. Liquidity and Financial Position - As of July 1, 2022, the company had $61.7 million in cash, up from $45.8 million at the end of 2021, indicating improved liquidity[98]. - The company has a credit facility with approximately $45.0 million available for borrowing, with no outstanding borrowings as of July 1, 2022[103]. Market Risks and Future Considerations - The company faces market risks related to interest rates and foreign currency exchange rates, with a potential impact from changes in interest rates on its revolving credit[105][106]. - The company is considering raising additional funds for expansion, product development, and acquisitions, although there is no assurance that financing will be available when needed[98]. COVID-19 Response - The company continues to manage its business in response to the COVID-19 pandemic, following guidelines from health authorities[80].