Answerthink, Inc. (Nasdaq:ANSR): -- Revenue exceeds guidance and
EPS in line with guidance -- Year over year results led by Hackett
Group's 39% growth, with all groups reporting quarterly sequential
growth Answerthink, Inc. (Nasdaq:ANSR) announced today its
financial results for the second quarter of 2005, which ended July
1, 2005. Second quarter revenue was $41.7 million, a 13% increase
from the first quarter of 2005 and an 11% increase compared to the
second quarter of 2004. Diluted earnings per share were $0.03,
compared to a diluted loss per share of $0.03 in the second quarter
of 2004. The 2004 results included restructuring costs of $0.08 per
diluted share, related to an increase in previously established
restructuring reserves for the consolidation of facilities. Pro
forma diluted earnings per share were $0.03, compared to $0.04 in
the second quarter of 2004. 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. For the first six months of 2005, revenues
were $78.6 million, an 8% increase from the first six months of
2004. Diluted loss per share was $0.00, compared to $0.01 for the
same period in the previous year. The 2005 and 2004 results include
restructuring costs of $0.03 and $0.08 per diluted share,
respectively, related to an increase in previously established
restructuring reserves for the consolidation of facilities. Pro
forma diluted earnings per share were $0.04, compared to $0.06 in
the same period of the previous year. The Company's cash balances,
including restricted cash and marketable investments, were $45.7
million at the end of the second quarter of 2005. During the
quarter, the Company spent $3.1 million to repurchase 811,000
shares of the Company's common stock. As of the end of the second
quarter of 2005, $7.9 million remained available under the
Company's share repurchase program authorization. "This was an
important quarter as we extended our Hackett Group to include our
Transformation Advisory offerings along with its best practice
intellectual capital and deep business process expertise," said Ted
A. Fernandez, Chairman and CEO of Answerthink. "We are pleased with
the client response to this move which was evident in the strong
year over year and sequential Hackett sales growth as well as the
sequential growth of our Business Applications and Business
Intelligence groups." Based on the current economic outlook, the
Company estimates total revenues for the third quarter of 2005 to
be in the range of $41.0 million to $43.0 million. The Company also
estimates diluted earnings per share to be in the range of $0.04 to
$0.07 and pro forma diluted earnings per share to be in the range
of $0.04 to $0.06. Other Highlights Strategic Program with Lawson -
Lawson Software and The Hackett Group announced a strategic
relationship to enable Lawson clients to measure their business
process performance versus world-class companies. The Hackett
World-Class Passport(SM) program provides Lawson clients with
access to the Hackett Book of Numbers(C) Research Series,
Hackett-Certified Practices, best practice benchmarking, access to
online metrics, and business process advisory services and will
provide a foundation for Lawson Professional Services'
outcomes-based software implementation methodology. Nordic
Partnership - Hackett and X-lence Group AS announced a partnership
that enables Hackett to offer its benchmarking, business advisory
programs, and transformation services to companies in Norway,
Sweden, Denmark, Finland, and Russia. The agreement, under which
X-lence Group will serve as a sales agent for Hackett in these five
countries, is designed to expand Hackett's channel presence in new
markets. 15th Annual Best Practices Conference - Hackett offered
nearly 400 attendees at its annual best practices conference a
preview of its 2005 SG&A world-class performance metrics and
findings. The conference, entitled "Enterprise Performance
Management: Building Harmony in Purpose and Execution," also
featured presentations by senior executives from 12 of the world's
most successful companies, including Alcoa, Georgia-Pacific,
Honeywell, InterContinental Hotels Group, Nextel Communications,
and others. Best Practices Implementation Enhancements -
Answerthink announced the completion of major enhancements to its
Best Practices Implementation (BPI) knowledge repository. BPI
Version 2 is a comprehensive toolset designed to enhance business
performance and return on investment (ROI) from enterprise
transformation ERP initiatives by integrating best practices and
performance metrics from The Hackett Group. The BPI enhancements
expand the scope of Hackett-Certified(SM) Practices in finance, IT,
HR, procurement, and other key operations areas. End-to-end process
designs such as procure-to-pay, order-to-cash, and planning and
performance management were also added. Representative Client
Engagements Reporting Systems Integration for Large Electric
Utility - This client selected Answerthink to lead a comprehensive
systems integration effort designed to streamline financial
reporting following a large merger. The system will consolidate
data from PeopleSoft, SAP, and Oracle systems, support overall
standardization and transformation of the company's close and
consolidation processes, and also facilitate the merging of
functions from multiple shared service centers. The company
recently completed a Hackett finance benchmark, and Answerthink
will integrate best practices in financial reporting as part of its
efforts. SG&A Benchmark and Hyperion Implementation for
Japanese Auto Manufacturer - This client contracted with Hackett
for Hackett's first-ever Japanese-language benchmark, covering
Selling, General & Administrative (SG&A) functions for its
Japanese and Asian operations. The contract follows successful
SG&A benchmarks over the past two years covering the company's
European and North American operations. The benchmarks are part of
this client's overall drive to achieve world-class performance in
the back office. In addition, the client separately selected
Answerthink to design and implement a new financial planning and
forecasting tool utilizing Hyperion software. The project, which
will enable the client's North American subsidiary to report
consolidated numbers to its Japanese parent, is an extension of
Answerthink's initial Hyperion implementation efforts at the
corporate level last year. As part of the work, Answerthink is
assisting in the migration to Hackett-Certified practices.
Financial Planning and Reporting and Analysis Solution for an
Aerospace & Defense Company - This industry leader selected
Answerthink to assist with the design and implementation of a new
financial planning, management reporting, and analysis solution.
The new contract is a continuation of an ongoing project, which
began with a Hackett benchmark and also included the creation of a
conceptual solution and software evaluation and selection.
Answerthink will assist the company in implementing this new set of
capabilities across all of its business units and corporate. The
new SAP and Cognos-based solution is designed to improve the
company's decision support capabilities by dramatically
streamlining and automating the financial analysis and decision
support processes. Finance Transformation Support for IT Management
Software Vendor - This client selected Hackett to perform a finance
benchmark and also assist in the development of a strategic
transformation plan. The effort will include development of
detailed best practices-based process flows, outlining of a
delivery model for shared service center activities, and creation
of a technology roadmap including a best practices gap assessment
for SAP. Hackett was chosen by the client over several leading
strategy firms based on the breadth of its best practices
repository and Answerthink's Best Practices Implementation tools.
The client's goal is to improve service delivery flexibility in
finance, and position the organization to support market-driven and
merger-related growth. At 5:00 P.M. ET on Tuesday, August 2, 2005,
Answerthink, Inc. will host a conference call to discuss second
quarter earnings results for the period ending July 1, 2005. The
number for the conference call is 888-566-5771, (Passcode: Second
Quarter, Leader: Ted A. Fernandez). For International callers,
please dial 210-234-0000. Please dial in at least 5-10 minutes
prior to start time. If you are unable to participate on the
conference call, a rebroadcast will be available beginning at 8:00
P.M. ET on Tuesday, August 2, 2005 and will run through 5:00 P.M.
ET on Tuesday, August 16, 2005. To access the rebroadcast, please
dial 888-566-0623. For International callers, please dial
402-998-0725. In addition, Answerthink will also be webcasting this
conference call live through the StreetEvents.com service. To
participate, simply visit http://www.answerthink.com approximately
10 minutes prior to the start of the call and click on the
conference call link provided. An online replay of the call will be
available after 8:00 P.M. ET on Tuesday, August 2, 2005 and will
run through 5:00 P.M. ET on Tuesday, August 16, 2005. To access the
call, visit http://www.answerthink.com or
http://www.streetevents.com. About Answerthink Answerthink, Inc.,
http://www.answerthink.com, is a leading business and technology
consulting firm that enables companies to achieve world-class
business performance. By leveraging the comprehensive database of
The Hackett Group, Answerthink's business and technology solutions
help clients significantly improve performance and maximize returns
on technology investments. Answerthink's capabilities include
benchmarking, business transformation, business applications,
business intelligence, and offshore application development and
support. Founded in 1997, Answerthink has offices throughout the
United States, Europe and India. About The Hackett Group The
Hackett Group, http://www.thehackettgroup.com, a business process
advisory firm and an Answerthink company, is a global leader in
best practice research, benchmarking and transformation advisory
services that empower executives to achieve world-class enterprise
performance. Only The Hackett Group empirically defines world-class
performance in sales, general and administrative (SG&A) and
supply chain activities with analysis gained through 3,300
benchmark studies over 13 years at more than 1,865 of the world's
leading companies. The foundation of Hackett's benchmarks,
transformation services, and membership-based advisory programs is
our proprietary database of Hackett-Certified(SM) Practices,
approaches which are proven to correlate with superior performance
metrics. This unparalleled knowledge repository enables Hackett
business advisors to provide data, advice, and strategic insight
with a level of integrity and authority available nowhere else. As
of this writing, Hackett clients comprise 93 percent of the Dow
Jones Industrials, 80 percent of the Fortune 100 and 90 percent of
the Dow Jones Global Titans Index. Hackett-Certified, Book of
Numbers, and Hackett World-Class Passport are service marks of The
Hackett Group, Inc. This press release contains "forward looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, performance or achievements to be materially different
from the results, performance or achievements expressed or implied
by the forward looking statements. Factors that impact such forward
looking statements include, among others, our ability to
effectively integrate acquisitions into our operations, our ability
to attract additional business, our ability to effectively market
and sell our recently launched transformation advisory product
offerings and other new services, the timing of projects and the
potential for contract cancellations by our customers, changes in
expectations regarding the information technology industry, our
ability to attract and retain skilled employees, possible changes
in collections of accounts receivable, risks of competition, price
and margin trends, changes in general economic conditions and
interest rates as well as other risks detailed in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31,
2004 filed with the Securities and Exchange Commission. We
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. -0- *T Answerthink, Inc. CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share data)
(unaudited) Quarter Ended Six months Ended -------------------
------------------- July 1, July 2, July 1, July 2, 2005 2004 2005
2004 --------- --------- --------- --------- Revenues: Revenues
before reimbursements $ 37,440 $ 34,006 $ 70,618 $ 65,564
Reimbursements 4,260 3,643 7,954 7,174 -------- -------- --------
-------- Total revenues 41,700 37,649 78,572 72,738 Costs and
expenses: Project personnel and expenses: Project personnel and
expenses before reimbursable expenses 20,153 19,576 40,539 37,531
Reimbursable expenses 4,260 3,643 7,954 7,174 -------- --------
-------- -------- Total project personnel and expenses 24,413
23,219 48,493 44,705 Selling, general and administrative expenses
15,535 12,060 28,419 24,041 Restructuring costs - 3,749 1,134 3,749
Stock compensation expense 728 492 1,285 1,294 -------- --------
-------- -------- Total costs and operating expenses 40,676 39,520
79,331 73,789 -------- -------- -------- -------- Income (loss)
from operations 1,024 (1,871) (759) (1,051) Other income (expense):
Interest income 321 196 584 386 Interest expense (16) - (40) -
-------- -------- -------- -------- Income (loss) before income
taxes and income from discontinued operations 1,329 (1,675) (215)
(665) Income taxes 95 (96) (19) (53) -------- -------- --------
-------- Income (loss) from continuing operations 1,234 (1,579)
(196) (612) Income from discontinued operations - 370 - 370
-------- -------- -------- -------- Net income (loss) $ 1,234 $
(1,209) $ (196) $ (242) -------- -------- -------- -------- Basic
net income (loss) per common share: Income (loss) from continuing
operations $ 0.03 $ (0.04) $ (0.00) $ (0.02) Income from
discontinued operations $ - $ 0.01 $ - $ 0.01 Net income (loss) per
common share $ 0.03 $ (0.03) $ (0.00) $ (0.01) Weighted average
common shares outstanding 42,786 44,555 43,112 44,690 Diluted net
income (loss) per common share: (1) Income (loss) from continuing
operations $ 0.03 $ (0.04) $ (0.00) $ (0.02) Income from
discontinued operations $ - $ 0.01 $ - $ 0.01 Net income (loss) per
common share $ 0.03 $ (0.03) $ (0.00) $ (0.01) Weighted average
common and common equivalent shares outstanding 47,137 44,555
43,112 44,690 Pro forma data: (2) Income (loss) before income taxes
and income from discontinued operations $ 1,329 $ (1,675) $ (215) $
(665) Restructuring costs - 3,749 1,134 3,749 Stock compensation
expense 728 492 1,285 1,294 Amortization of intangible assets 420
459 864 790 -------- -------- -------- -------- Pro forma income
before income taxes 2,477 3,025 3,068 5,168 Pro forma income taxes
991 1,210 1,227 2,067 -------- -------- -------- -------- Pro forma
net income $ 1,486 $ 1,815 $ 1,841 $ 3,101 -------- --------
-------- -------- Pro forma basic net income per common share $
0.03 $ 0.04 $ 0.04 $ 0.07 Weighted average common shares
outstanding 42,786 44,555 43,112 44,690 Pro forma diluted net
income per common share $ 0.03 $ 0.04 $ 0.04 $ 0.06 Weighted
average common and common equivalent shares outstanding 47,137
49,075 47,339 49,257 (1) Potentially dilutive shares were excluded
from the diluted loss per share calculation for the six months
ended July 1, 2005 and the quarter and six months ended July 2,
2004 as their effects would have been anti-dilutive to the loss
incurred by the Company. The total number of weighted average
common and common equivalent shares outstanding, including any
anti-dilutive shares, for the six months ended July 1, 2005 were
47,339 and for the quarter and six months ended July 2, 2004 were
49,075 shares and 49,257 shares, respectively. (2) The Company
provides pro forma earnings results (which exclude amortization of
intangible assets, non-cash compensation and restructuring charges,
and include a normalized tax rate) as a complement to results
provided in accordance with Generally Accepted Accounting
Principles. These non-GAAP results are provided to enhance the
users's overall understanding of the Company's current financial
performance and its prospects for the future. The Company believes
the non-GAAP results provide useful information to both management
and investors by excluding certain expenses that it believes are
not indicative of its core operating results. The non-GAAP measures
are included to provide investors and management with an
alternative method for assessing operating results in a manner that
is focused on the performance of ongoing operations and to provide
a more consistent basis for comparison between quarters. Further,
these non-GAAP results are one of the primary indicators management
uses for planning and forecasting in future periods. In addition,
since the Company has historically reported non-GAAP results to the
investment community, it believes the inclusion of non-GAAP numbers
provides consistency in its financial reporting. The presentation
of this additional information should not be considered in
isolation or as a substitute for results prepared in accordance
with accounting principles generally accepted in the United States
of America. Answerthink, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) July 1, Dec. 31, 2005 2004
----------------------------------------------------------------------
ASSETS (unaudited) Current assets: Cash and cash equivalents $
27,323 $ 38,890 Marketable investments 12,848 - Accounts receivable
and unbilled revenue, net 35,411 28,883 Prepaid expenses and other
current assets 2,203 3,459 -------- -------- Total current assets
77,785 71,232 Marketable investments 4,928 9,902 Restricted cash
600 3,000 Property and equipment, net 6,767 7,568 Other assets
2,306 3,245 Goodwill, net 34,726 33,786 -------- -------- Total
assets $127,112 $128,733 -------- -------- LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,226
$ 3,462 Accrued expenses and other liabilities 20,973 17,910
-------- -------- Total current liabilities 26,199 21,372 Accrued
expenses and other liabilities, non-current 2,992 7,507 --------
-------- 29,191 28,879 Shareholders' equity 97,921 99,854 --------
-------- Total liabilities and shareholders' equity $127,112
$128,733 -------- -------- *T -0- *T Answerthink, Inc. Supplemental
Financial Data (unaudited) 2005 2004 ------------------- --------
Q2 Q1 Q2 --------- --------- -------- Revenue Breakdown by Group:
(in thousands) The Hackett Group Benchmarking and Membership
Advisory Programs $ 7,314 $ 6,308 $ 5,602 Transformation Advisory
10,449 9,079 7,215 -------- -------- -------- Total The Hackett
Group 17,763 15,387 12,817 Best Practice Solutions Business
Applications 14,398 13,233 16,093 Business Intelligence 9,539 8,252
8,739 -------- -------- -------- Total Best Practice Solutions
23,937 21,485 24,832 --------- --------- --------- Total revenues $
41,700 $ 36,872 $ 37,649 ======== ======== ======== Revenue
Concentration: (% of total revenues) Top customer 5% 7% 9% Top 5
customers 19% 24% 23% Top 10 customers 30% 36% 33% Key Metrics and
Other Financial Data: Consultant utilization rate 70% 70% 72% Gross
billing rate per hour $ 192 $ 182 $ 176 Net billing rate per hour $
173 $ 164 $ 159 Consultant headcount 596 569 597 Total headcount
782 753 762 Days sales outstanding (DSO) 75 71 70 Cash provided by
(used in) operating activities (in thousands) $ (1,525) $ (262) $
145 Depreciation and amortization (in thousands) $ 1,190 $ 1,262 $
1,275 Share Repurchase Program: Shares purchased since inception
(in thousands) 6,534 5,723 4,370 Cost of shares repurchased since
inception (in thousands) $ 22,119 $ 18,987 $ 13,020 Average per
share cost of shares purchased since inception $ 3.39 $ 3.32 $ 2.98
Remaining authorization (in thousands) $ 7,881 $ 6,013 $ 1,980 *T
Answerthink (NASDAQ:ANSR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Answerthink (NASDAQ:ANSR)
Historical Stock Chart
From Jul 2023 to Jul 2024