The Hackett Group, Inc (HCKT) has reported 79.46 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $5.49 million, or $0.17 a share in the quarter, compared with $3.06 million, or $0.10 a share for the same period last year. Revenue during the quarter grew 10.27 percent to $74.12 million from $67.22 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 33.38 percent. Total expenses were 87.85 percent of quarterly revenues, down from 92.65 percent for the same period last year. This has led to an improvement of 480 basis points in operating margin to 12.15 percent.
Operating income for the quarter was $9.01 million, compared with $4.94 million in the previous year period.
“We reported another strong quarter driven by solid US results and improved European activity and results,” stated Ted A. Fernandez, Chairman & Chief executive officer 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.”
For the fourth-quarter, Hackett Group projects revenue to be in the range of $67 million to $69 million. The company forecasts diluted earnings per share to be in the range of $0.23 to $0.25 for the fourth-quarter.
Working capital drops significantly
The Hackett Group, Inc has witnessed a decline in the working capital over the last year. It stood at $15.65 million as at Sep. 30, 2016, down 31.28 percent or $7.12 million from $22.77 million on Oct. 02, 2015. Current ratio was at 1.32 as on Sep. 30, 2016, down from 1.57 on Oct. 02, 2015. Days sales outstanding went down to 57 days for the quarter compared with 60 days for the same period last year.
At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.
Debt increases substantially
The Hackett Group, Inc has witnessed an increase in total debt over the last one year. It stood at $12.57 million as on Sep. 30, 2016, up 35.72 percent or $3.31 million from $9.26 million on Oct. 02, 2015. Hackett Group has witnessed an increase in long-term debt over the last one year. It stood at $12.57 million as on Sep. 30, 2016, up 35.72 percent or $3.31 million from $9.26 million on Oct. 02, 2015. Total debt was 8.11 percent of total assets as on Sep. 30, 2016, compared with 5.90 percent on Oct. 02, 2015. Debt to equity ratio was at 0.15 as on Sep. 30, 2016, up from 0.09 as on Oct. 02, 2015. Interest coverage ratio improved to 65.74 for the quarter from 48.46 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
