The Hackett Group, Inc. (HCKT) Bundle
A Brief History of The Hackett Group, Inc. (HCKT)
Formation and Early Years
Formation and Early Years
The Hackett Group, Inc. was founded in 1997 in Atlanta, Georgia, by Rick Hackett. Initially, the company focused on providing business consulting services, leveraging rigorous benchmarking data to help organizations improve their performance.
Growth and Development
In 2002, Hackett Group expanded its footprint with the acquisition of Answerthink, Inc., a management consulting firm, for approximately $17 million. This acquisition enabled Hackett to broaden its service offerings.
Public Offering
In 2003, The Hackett Group, Inc. went public, trading on the NASDAQ under the ticker symbol HCKT. The IPO was priced at $12 per share, raising about $38 million for the company.
Financial Performance
| Year | Revenue (in $ millions) | Net Income (in $ millions) | EPS (Earnings Per Share) |
|---|---|---|---|
| 2019 | 113.4 | 11.9 | 0.90 |
| 2020 | 103.2 | 7.5 | 0.56 |
| 2021 | 113.9 | 12.7 | 0.98 |
| 2022 | 124.6 | 15.3 | 1.18 |
| 2023 | 130.5 | 17.0 | 1.30 |
Service Expansion
As the company evolved, it focused on enhancing its service lines by introducing specialized practices in areas such as finance, human resources, and IT strategy.
Recent Developments
- In 2021, Hackett Group launched its new cloud performance management solution to address the growing demand in the market.
- The company reported an increase in adjusted EBITDA of 15% year-over-year in 2022.
- In 2023, Hackett Group announced a strategic partnership with several global technology companies enhancing its capability to deliver digital transformation services.
Market Position
As of 2023, The Hackett Group is recognized as a leader in performance improvement analytics, serving over 3,000 clients across diverse sectors, including Fortune 1000 companies.
Stock Performance
The stock price of HCKT has shown substantial growth. The closing price on September 30, 2023, was $30.45, reflecting a significant increase from its IPO price.
Corporate Social Responsibility
The Hackett Group actively engages in corporate social responsibility initiatives, contributing over $1 million annually to various philanthropic causes since 2015.
Conclusion of Chapter
While this chapter only encapsulates data and facts, it reflects the journey and milestones of The Hackett Group, Inc.'s evolution within the business consulting industry, marked by strategic growth, financial performance, and commitment to corporate responsibility.
A Who Owns The Hackett Group, Inc. (HCKT)
Major Shareholders
The Hackett Group, Inc. (HCKT) has several key shareholders that significantly influence its ownership structure. As of the latest data available, the following entities and individuals hold notable shares:
| Shareholder | Shares Owned | % of Total Shares | Type of Ownership |
|---|---|---|---|
| Dimensional Fund Advisors LP | 1,082,500 | 9.8% | Institutional |
| The Vanguard Group, Inc. | 1,065,300 | 9.7% | Institutional |
| BlackRock, Inc. | 874,800 | 7.9% | Institutional |
| William S. Hackett | 750,000 | 6.8% | Individual |
| Glenview Capital Management, LLC | 650,000 | 5.9% | Institutional |
Board of Directors
The Hackett Group is overseen by a Board of Directors, which includes influential individuals who are also shareholders. They play a critical role in corporate governance and strategic direction.
| Director Name | Position | Years on Board | Shares Owned |
|---|---|---|---|
| William S. Hackett | Chairman | 20 | 750,000 |
| Ernest A. J. Joseph | Director | 5 | 150,000 |
| Linda H. Wright | Director | 3 | 100,000 |
| Margaret L. Anderson | Director | 8 | 50,000 |
Ownership Trends
Recent years have shown fluctuations in ownership among institutional and individual shareholders. The following data highlights trends in ownership percentages:
| Year | Institutional Ownership (%) | Individual Ownership (%) |
|---|---|---|
| 2023 | 70% | 30% |
| 2022 | 68% | 32% |
| 2021 | 65% | 35% |
Recent Financial Performance
The financial performance of The Hackett Group reflects its market position and shareholder value. Key financial metrics for the latest fiscal year are as follows:
| Metrics | Amount |
|---|---|
| Total Revenue | $119 million |
| Net Income | $13 million |
| EBITDA | $20 million |
| Market Capitalization | $150 million |
Stock Performance
The stock performance of HCKT over the past year has varied, influencing ownership dynamics. The following are some key stock performance indicators:
| Metrics | Value |
|---|---|
| 52-Week High | $18.25 |
| 52-Week Low | $12.45 |
| Current Price | $16.00 |
Insider Transactions
Insider transactions can indicate the confidence of the company's leadership in its future. The recent insider transactions are summarized below:
| Date | Insider Name | Transaction Type | Shares Transacted |
|---|---|---|---|
| 2023-05-01 | William S. Hackett | Buy | 50,000 |
| 2023-03-15 | Linda H. Wright | Sell | 20,000 |
| 2023-01-20 | Margaret L. Anderson | Buy | 10,000 |
The Hackett Group, Inc. (HCKT) Mission Statement
Company Overview
The Hackett Group, Inc. (HCKT) is a global consulting firm that specializes in business advisory services, with a focus on strategy, operations, and technology. The company aims to help organizations achieve peak performance by leveraging its proprietary benchmarking data and best practices. As of 2022, Hackett Group reported revenues of approximately $91 million, reflecting its position as an industry leader.
Mission Statement
The Hackett Group's mission statement emphasizes its commitment to providing comprehensive insights that drive value for clients. It articulates a focus on delivering measurable results through data-driven decision making.
Core Values
- Integrity: Adhering to the highest ethical standards in all engagements.
- Client Focus: Prioritizing client needs to deliver tailored solutions.
- Innovation: Fostering creativity to develop unique approaches to problem-solving.
- Collaboration: Working closely with clients as partners to achieve shared goals.
Key Performance Metrics
As part of its mission, The Hackett Group continuously tracks various performance metrics to ensure alignment with its strategic objectives. Below are key metrics as of Q3 2023:
| Metric | Value | Previous Year Value | Percentage Change |
|---|---|---|---|
| Revenue Growth | $91 million | $87 million | 4.6% |
| Client Retention Rate | 90% | 88% | 2.3% |
| Employee Satisfaction Score | 85% | 82% | 3.7% |
| Net Promoter Score (NPS) | 70 | 68 | 2.9% |
Strategic Goals
The Hackett Group outlines specific goals to fulfill its mission, which includes:
- Expand Global Reach: Increase market penetration in emerging economies.
- Enhance Data Analytics Capabilities: Invest in advanced analytics to deepen insights.
- Strengthen Client Relationships: Foster long-term partnerships with key clients.
- Innovate Service Offerings: Continuously improve and diversify service lines.
Financial Overview
As of the end of Q3 2023, The Hackett Group reported the following financial statistics:
| Financial Metric | Q3 2023 | Q3 2022 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $23 million | $21 million | 9.5% |
| Operating Income | $5.5 million | $5 million | 10% |
| Net Income | $4 million | $3.5 million | 14.3% |
| Earnings Per Share (EPS) | $0.30 | $0.26 | 15.4% |
Market Position
The Hackett Group competes with major consulting firms and positions itself as a provider of specialized insights rooted in rigorous research. Its mission to drive client performance can be seen in its strategic initiatives aimed at maintaining a competitive edge in the consulting market.
Conclusion
The Hackett Group remains committed to its mission of empowering organizations through its consulting services. By focusing on client satisfaction, ethical standards, and continuous improvement, it seeks to drive measurable results for its clients.
How The Hackett Group, Inc. (HCKT) Works
Company Overview
The Hackett Group, Inc. (HCKT) is a global strategy and operations consulting firm that specializes in business benchmarking, performance improvement, and best practices. Their focus is on providing strategic advice to various industries to help enhance operational efficiency and financial performance.
Business Model
Hackett operates through several key segments that include:
- Consulting Services
- Benchmarking and Advisory
- Research and Insights
- Technology Implementation Services
Financial Performance
As of Q3 2023, The Hackett Group reported the following financial figures:
| Financial Metric | Amount (USD) |
|---|---|
| Revenue | 85.3 million |
| Net Income | 12.5 million |
| Gross Margin | 45% |
| Operating Income | 10.2 million |
| Earnings per Share (EPS) | 0.56 |
Market Position
Hackett is recognized as a leader in various consulting sectors. According to the 2023 Gartner Magic Quadrant, they are positioned as a Leader in Finance and Supply Chain consulting.
Services Offered
Hackett provides a comprehensive range of services aimed at improving client performance:
- Business Strategy Development
- Operational Improvement Consulting
- Financial Benchmarking
- IT Strategy and Optimization
Client Base
Hackett serves several Fortune 500 companies across various sectors including:
- Technology
- Healthcare
- Manufacturing
- Financial Services
Growth Metrics
The Hackett Group has shown steady growth over recent years:
| Year | Revenue Growth (%) | Net Income Growth (%) | Client Retention Rate (%) |
|---|---|---|---|
| 2021 | 10.2 | 15.6 | 92 |
| 2022 | 8.7 | 12.3 | 91 |
| 2023 | 9.5 | 11.0 | 93 |
Investment and Cost Structure
Hackett allocates its resources strategically to maintain competitive service delivery:
- Consulting Operations Costs: 30% of Revenue
- Research and Development: 15% of Revenue
- Marketing and Sales: 20% of Revenue
- Administrative Costs: 10% of Revenue
Future Outlook
Analysts project that Hackett’s revenue will grow at a compound annual growth rate (CAGR) of approximately 6% over the next five years, driven by increased demand for strategic consulting services in the digital transformation domain.
How The Hackett Group, Inc. (HCKT) Makes Money
Revenue Streams
Revenue Streams
The Hackett Group, Inc. generates revenue primarily through consulting services, research, and technology services. The following table outlines their revenue breakdown for the fiscal year 2022:
| Revenue Stream | Amount (in millions) |
|---|---|
| Consulting Services | $80.6 |
| Research Services | $8.9 |
| Technology Services | $9.5 |
| Total Revenue | $99.0 |
Consulting Services
Consulting services constitute a significant portion of Hackett Group’s revenue, focusing on performance improvement and benchmarking services.
- Service Offerings: Strategy consulting, operations improvement, and technology advisory.
- Market Demand: Increasing demand for digital transformation and operational efficiency drives consulting revenue.
Research Services
The Hackett Group provides research services that include benchmarking studies and best practices.
- Revenue Contribution: Research services contributed approximately 9% to the total revenue.
- Key Products: Global benchmarking studies and performance measurement tools.
Technology Services
They also offer technology services, which include implementation support and managed services.
- Growth Areas: Cloud services and automation solutions.
- Financial Impact: Technology services saw a growth rate of 15% over the previous year.
Operating Expenses
Operating expenses are crucial to understanding the company’s profitability.
| Expense Type | Amount (in millions) |
|---|---|
| Consulting Staff Costs | $35.8 |
| General & Administrative Expenses | $12.3 |
| Research & Development Expenses | $5.2 |
| Total Operating Expenses | $53.3 |
Profitability Metrics
Monitoring profitability is essential for assessing the financial health of Hackett Group.
| Metric | Value |
|---|---|
| Gross Profit Margin | 46.4% |
| Operating Margin | 20.5% |
| Net Income | $16.0 million |
| EBITDA | $25.5 million |
Client Base and Industry Focus
Hackett Group serves a diverse clientele across various industries, including technology, healthcare, and manufacturing.
- Top Clients: Global Fortune 500 companies.
- Sector Focus: Financial services, consumer products, and energy sectors.
Market Positioning
The Hackett Group positions itself as a leader in advisory services, leveraging its extensive research and benchmarks.
- Competitive Advantage: Proprietary tools and methodologies.
- Brand Reputation: Recognized for high-quality consulting outcomes.
Future Growth Opportunities
The company is looking to expand its services in the following areas:
- Digital Transformation: Increasing investments in AI and analytics.
- Global Expansion: Targeting emerging markets for growth.
Recent Financial Performance
According to the latest fiscal report for Q2 2023, the following performance metrics were noted:
| Performance Indicator | Amount |
|---|---|
| Quarterly Revenue | $25.1 million |
| Year-Over-Year Growth | 12% |
| Net Income | $4.2 million |
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