Answerthink Announces Third Quarter Results.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- Answerthink, Inc. (Nasdaq: ANSR ANSR Autonomous Naval Support Round ANSR Adaptive Network Solutions Research, Inc. ANSR Advanced Neutron Source Reactor ANSR Active No Swashplate Rotor (Army) ): --Quarterly growth driven by Business Intelligence and Hackett Hackett may refer to: In places:
--Proforma EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in line with previously provided guidance with operating profit margin Operating profit margin The ratio of operating profit to net sales. improving to 8%. Answerthink, Inc. (Nasdaq: ANSR) announced today its financial results for the third quarter of 2005, which ended September September: see month. 30, 2005. Third quarter revenue was $40.0 million, an 8% increase from the third quarter of 2004. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.05, compared to $0.02 in the third quarter of 2004. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma diluted earnings per share were $0.05, compared to $0.03 in the third 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). information in the accompanying tables. For the first nine months of 2005, revenues were $118.6 million, an 8% increase from the first nine months of 2004. Diluted earnings per share were $0.04, compared to $0.01 for the same period in the previous year. The 2005 and 2004 results include restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of $0.02 and $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, respectively, related to an increase in previously established restructuring reserves for the consolidation of facilities. Pro forma diluted earnings per share were $0.08, compared to $0.09 in the same period of the previous year. The Company's cash balances, including restricted cash and marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. investments, were $41.1 million at the end of the third quarter of 2005. During the quarter, the Company did not repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. any shares of the Company's common stock. As of the end of the third quarter of 2005, $7.9 million remained available under the Company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program authorization The right or permission to use a system resource; the process of granting access. See access control. . "Our focus to define and extend the business model around our unique business process and best practice intellectual capital continues to favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact all of our offerings," said Answerthink Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ted A. Fernandez. "If a client is interested in establishing baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version performance, they can turn to our benchmarks. If they desire assistance in developing a strategic performance improvement roadmap, our advisory programs can help. Finally, if they seek direct assistance with business transformation or technology implementation activities, we can support that as well. In every case, we can offer companies unique data-driven guidance that has proven its ability to help reduce cost, enhance strategic alignment, and improve both efficiency and effectiveness." Based on the current economic outlook, the Company estimates total revenues for the fourth quarter of 2005 to be in the range of $38.0 million to $41.0 million. The Company also estimates diluted earnings per share to be in the range of $0.03 to $0.06 and pro forma diluted earnings per share to be in the range of $0.04 to $0.06. Other Highlights EquaTerra Partnership - In October Hackett and EquaTerra, a multi-national outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and insourcing (1) Doing work with inhouse employees. Contrast with outsourcing. (2) Creating jobs in your country by an organization that is foreign owned. Contrast with outsourcing. advisory firm, announced an exclusive alliance designed to demonstrate how companies can improve the efficiency and effectiveness of their administrative functions through a blend of service delivery alternatives such as shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. , offshoring
Offshoring describes the relocation of business processes from one country to another. , and outsourcing. The companies unveiled jointly-managed Business Process Sourcing Executive Advisory Programs for Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and Finance executives offering a tailored mix of benchmarking services, on-demand advisor access, empirical research Noun 1. empirical research - an empirical search for knowledge inquiry, research, enquiry - a search for knowledge; "their pottery deserves more research than it has received" , and peer learning opportunities. NASACT NASACT National Association of State Auditors, Comptrollers, and Treasurers Contract - The National Association of State Auditors State auditors are executive officers of U.S. states. The office usually is created by the state constitution.
2. There are two comptrollers. It is the duty of the first to examine all accounts settled by the first and fifth auditors, and certify the balances arising and Treasurers (NASACT) announced it will offer specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. finance and human resources/payroll benchmarking services to state governments under a contract signed with The Hackett Group. The program offers state governments a way to analyze and target improvements in the efficiency and effectiveness of their finance and HR/payroll operations, compare their performance with that of their public- and private-sector peers, and compare the performance of individual agencies with others in their state. Complexity Book of Numbers Noun 1. Book of Numbers - the fourth book of the Old Testament; contains a record of the number of Israelites who followed Moses out of Egypt Numbers Analysis - The Hackett Group released its Complexity Book of Numbers(C) covering four major functional areas: IT, Finance, HR, and Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. . A sample of key findings follows. Hackett found that reducing IT complexity can drive significant savings in finance and HR costs. The combination of moving to a single ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system for finance and at the same time implementing consistent data and technology standards can also enable companies to cut the cost of finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. by 23 percent. The study also highlighted that the companies can generate more than $50 million in savings per billion of procurement spending and also significantly cut the cost of the procurement function by reducing the number of suppliers they work with and focusing more spending with key suppliers. Representative Client Engagements Process Improvement Strategy for a Global ERP Solution for a Metals and Mining Company - This global industry leader selected us to assist in identifying process improvement opportunities across its SG&A functions. Significant industry change and consolidation have increased the need for more efficient and effective back office operations. To enable the transformation of these processes, the company is evaluating the deployment of a Global ERP-based solution. As part of this initiative, we will perform an enterprise benchmark study to assist the client in developing an improvement plan and business case to justify the investment in the ERP solution. The ultimate goal of this program is to implement best practices in an effort to do more with fewer resources. Multi-Year SG&A Benchmark for International Automaker - This company has signed a commitment to perform two SG&A benchmarks over the next three years. The relationship builds upon a highly successful Hackett benchmark performed by an affiliate earlier this year, and will be used to focus and guide internal initiatives geared towards optimizing overhead functions. Accenture will participate in the effort by executing senior executive interviews, supporting the company's Project Management Office, and facilitating in-depth best practices workshops. Hyperion Implementation for U.S. University & Hospital - We will support this university, a medical school, and hospital with a Hyperion budgeting and planning implementation. The project will replace the current spreadsheet-based approach with a centralized system In telecommunications, a centralized system is one in which most communications are routed through one or more major central hubs. Such a system allows certain functions to be concentrated in the system's hubs, freeing up resources in the peripheral units. that improves controls and address compliance issues. The system will also support physicians' practices affiliated with the university. World-Class Program for a Diversified diversified (di·verˑ·s Chemical Company - This client contracted for a world-class program focusing on global general and administrative activities. As part of an ambitious SG&A cost-cutting initiative, the company will execute a G&A benchmark and join our Finance, Procurement, and IT Executive Advisory Programs under a two-year membership. Multi-Year IT Benchmark and World-Class Program for a Travel & Hospitality Conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. - This client will perform two global IT benchmarks over the next three years. They also became a member of all four of our Executive Advisory Programs. The company intends to use benchmark findings and program insights as it considers business process sourcing options in the context of its current large IT outsourcing relationship. SG&A and Supply Chain Benchmark & Finance Transformation for Global Chemical Manufacturer - This client selected us and PRTM PRTM Parks, Recreation, and Tourism Management PRTM Printing Response Time Monitor PRTM Pittiglio, Robin, Todd and McGrath (management consulting firm) for a global SG&A and supply chain benchmark. In an effort to reduce cost and optimize optimize - optimisation its finance function, the company is working with us to redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re finance processes for order-to-cash, plan-to-produce, requisition-to-pay, record-to-report, and management reporting. We will also assist with future state design and scope of activities expansion plans for the company's existing North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. finance shared services center Shared Services Center is the entity responsible for the execution and the handling of specific operational tasks Accounting, human resources, payroll, IT, legal, compliance, purchasing, security. . Multi-Year World-Class HR Program for International Transportation Equipment Manufacturer - This company has signed a three-year contract for two HR benchmarks, membership in our HR Executive Advisory program, and best practices workshops. The company has decided to use this initiative as an integrated part of its ongoing measurement and target-setting approach to reduce cost and drive towards increased use of shared services for HR. At 5:00 P.M. ET today, the senior management of Answerthink, Inc. will host a conference call to discuss third quarter earnings results for the period ending September 30, 2005. The number for the conference call is (888) 913-9965, (Passcode: Third Quarter, Leader: Ted A. Fernandez). For International callers, please dial (517) 308-9001. 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, November 1, 2005 and will run through 5:00 P.M. ET on Tuesday, November 15, 2005. To access the rebroadcast, please dial (800) 388-9075. For International callers, please dial (203) 369-3665. 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, November 1, 2005 and will run through 5:00 P.M. ET on Tuesday, November 15, 2005. To access the call, visit http://www.answerthink.com or http://www.streetevents.com. About Answerthink, Inc. Answerthink, Inc. (www.answerthink.com) is a leading business and technology consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in Europe and India. About The Hackett Group The Hackett Group (www.thehackettgroup.com), a business process advisory firm and an Answerthink company, is a world leader in best practice research, benchmarking and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal that empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems 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 nearly 2,000 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 Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. . This unparalleled knowledge repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. 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 96 percent of the Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Industrials, 77 percent of the Fortune 100 and 92 percent of the Dow Jones Global Titans The Dow Jones Global Titans 50 Index was created to reflect the globalization of international blue chip securities in the wake of mergers and the creation of mega-corporations. Index. Hackett-Certified, Book of Numbers, and Hackett World-Class Passport passport Document issued by a national government identifying a traveler as a citizen with a right to protection while abroad and a right to return to the country of citizenship. It is normally a small booklet containing a description and photograph of the bearer. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 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 accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , whether as a result of new information, future events or otherwise.
Answerthink, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended Nine months Ended
------------------------ ------------------------
September 30, October 1, September 30, October 1,
2005 2004 2005 2004
------------- ---------- ------------- ----------
Revenues:
Revenues before
reimbursements $ 36,171 $ 33,329 $ 106,789 $ 98,893
Reimbursements 3,834 3,802 11,788 10,976
----------- -------- ----------- --------
Total revenues 40,005 37,131 118,577 109,869
Costs and expenses:
Project personnel
and expenses:
Project personnel
and expenses
before
reimbursable
expenses 19,700 19,845 60,239 57,376
Reimbursable
expenses 3,834 3,802 11,788 10,976
----------- -------- ----------- --------
Total project
personnel
and expenses 23,534 23,647 72,027 68,352
Selling, general
and
administrative
expenses 13,619 12,081 42,038 36,122
Restructuring
costs - - 1,134 3,749
Stock compensation
expense 905 597 2,190 1,891
----------- -------- ----------- --------
Total costs
and
operating
expenses 38,058 36,325 117,389 110,114
----------- -------- ----------- --------
Income (loss) from
operations 1,947 806 1,188 (245)
Other income
(expense):
Interest income 346 184 930 570
Interest expense (12) (40) (52) (40)
----------- -------- ----------- --------
Income before income
taxes and income from
discontinued
operations 2,281 950 2,066 285
Income taxes 174 126 155 73
----------- -------- ----------- --------
Income from
continuing
operations 2,107 824 1,911 212
Income from
discontinued
operations - - - 370
----------- -------- ----------- --------
Net income $ 2,107 $ 824 $ 1,911 $ 582
----------- -------- ----------- --------
Basic net income per
common share:
Income from
continuing
operations $ 0.05 $ 0.02 $ 0.04 $ -
Income from
discontinued
operations $ - $ - $ - $ 0.01
Net income per
common share $ 0.05 $ 0.02 $ 0.04 $ 0.01
Weighted
average common
shares
outstanding 43,912 43,900 43,379 44,427
Diluted net income
per common share:
Income from
continuing
operations $ 0.05 $ 0.02 $ 0.04 $ -
Income from
discontinued
operations $ - $ - $ - $ 0.01
Net income per
common share $ 0.05 $ 0.02 $ 0.04 $ 0.01
Weighted
average common
and common
equivalent
shares
outstanding 46,750 47,960 47,143 48,824
Pro forma data: (1)
Income before
income taxes
and income
from
discontinued
operations $ 2,281 $ 950 $ 2,066 $ 285
Restructuring
costs - - 1,134 3,749
Stock
compensation
expense 905 597 2,190 1,891
Amortization of
intangible
assets 375 581 1,239 1,371
----------- -------- ----------- --------
Pro forma
income before
income taxes 3,561 2,128 6,629 7,296
Pro forma
income taxes 1,424 851 2,651 2,918
----------- -------- ----------- --------
Pro forma net
income $ 2,137 $ 1,277 $ 3,978 $ 4,378
----------- -------- ----------- --------
Pro forma basic
net income per
common share $ 0.05 $ 0.03 $ 0.09 $ 0.10
Weighted
average common
shares
outstanding 43,912 43,900 43,379 44,427
Pro forma
diluted net
income per
common share $ 0.05 $ 0.03 $ 0.08 $ 0.09
Weighted
average common
and common
equivalent
shares
outstanding 46,750 47,960 47,143 48,824
(1) 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)
September 30, December 31,
2005 2004
----------------------------------------------------------------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 30,595 $ 38,890
Marketable investments 4,966 -
Accounts receivable and unbilled
revenue, net 39,155 28,883
Prepaid expenses and other current
assets 2,108 3,459
----------- ----------
Total current assets 76,824 71,232
Marketable investments 4,911 9,902
Restricted cash 600 3,000
Property and equipment, net 6,376 7,568
Other assets 2,285 3,245
Goodwill, net 35,683 33,786
----------- ----------
Total assets $ 126,679 $ 128,733
----------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,280 $ 3,462
Accrued expenses and other liabilities 19,775 17,910
----------- ----------
Total current liabilities 24,055 21,372
Accrued expenses and other liabilities,
non-current 2,851 7,507
----------- ----------
26,906 28,879
Shareholders' equity 99,773 99,854
----------- ----------
Total liabilities and shareholders'
equity $ 126,679 $ 128,733
----------- ----------
Answerthink, Inc.
Supplemental Financial Data
(unaudited)
2005 2004
----------------- --------
Q3 Q2 Q3
-------- -------- --------
Revenue Breakdown by Group:
(in thousands)
The Hackett Group
Benchmarking and Membership Advisory
Programs $ 7,168 $ 7,314 $ 5,774
Transformation Advisory 9,161 10,449 8,361
-------- -------- --------
Total The Hackett Group 16,329 17,763 14,135
Best Practice Solutions
Business Applications 13,555 14,398 15,362
Business Intelligence 10,121 9,539 7,634
-------- -------- --------
Total Best Practice Solutions 23,676 23,937 22,996
-------- -------- --------
Total revenues $40,005 $41,700 $37,131
======== ======== ========
Revenue Concentration:
(% of total revenues)
Top customer 6% 5% 6%
Top 5 customers 20% 19% 18%
Top 10 customers 33% 30% 29%
Key Metrics and Other Financial Data:
Consultant utilization rate 67% 70% 67%
Gross billing rate per hour $ 194 $ 192 $ 174
Net billing rate per hour $ 175 $ 173 $ 156
Consultant headcount 601 596 600
Total headcount 780 782 768
Days sales outstanding (DSO) 86 75 79
Cash used in operating activities
(in thousands) $(1,363) $(1,525) $(1,225)
Depreciation and amortization
(in thousands) $ 1,138 $ 1,190 $ 1,324
Share Repurchase Program:
Shares purchased since inception
(in thousands) 6,534 6,534 4,959
Cost of shares repurchased since inception
(in thousands) $22,119 $22,119 $15,857
Average per share cost of shares purchased
since inception $ 3.39 $ 3.39 $ 3.20
Remaining authorization (in thousands) $ 7,881 $ 7,881 $ 4,143
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion