The Hackett Group, Inc. (NASDAQ:HCKT) Q4 2019 Earnings Conference Call - Final Transcript
Feb 18, 2020 • 05:00 pm ET
Welcome to The Hackett Group Fourth Quarter Earnings Conference Call. [Operator Instructions] Please be advised, the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO; and Mr. Rob Ramirez, Chief Financial Officer. Mr. Ramirez, you may begin.
Roberto A. Ramirez
Thank you, operator. Good afternoon, everyone, and thank you for joining us to discuss The Hackett Group's fourth quarter results. Speaking on the call today and here to answer your questions are Ted Fernandez, Chairman and Chief Executive Officer of The Hackett Group; and myself, Robert Ramirez, Chief Financial Officer.
A press announcement was released over the wires at 4:05 PM Eastern Time. For a copy of the release, please visit our website at www.thehackettgroup.com. We will also place any additional financial or statistical data discussed on this call that is not contained in the release on the Investor Relations page of our website.
Before we begin, I would like to remind you that in the following comments, and in the question-and-answer session, we will be making statements about expected future results, which may be forward-looking statements for the purposes of the federal securities laws. Estimates and projections are not a guarantee of future performance. They involve risks, uncertainties and assumptions that are difficult to predict and which may not be accurate.
Actual results may vary. These forward-looking statements should be considered only in conjunction with the detailed information, particularly the risk factors that are contained in our SEC filings. At this point, I would like to turn it over to Ted.
Ted A. Fernandez
Thank you, Rob, and welcome everyone to our fourth quarter earnings call. As we normally do, I will open up the call with some quarterly comments, overview and highlights. I will then turn it over to Rob and ask him to provide some detailed comments on our quarterly results, cash flow as well as guidance. Rob will then turn it back over to me to provide market strategic overview comments, and then we will open it up to Q&A.
So let me first start by saying, this afternoon, we reported net revenues of $63.7 million and pro forma earnings per share of $0.24, which were at the high and mid-point of our guidance, respectively. Solid U.S. performance was unfavorably impacted by weak international results. Consistent with our guidance, we took immediate steps to rightsize our international operations in an attempt to limit its impact on our overall results going forward. As a result of that review, we also decided to exit our Hackett Institute's Analytics program. We wanted to make sure we are focusing our efforts and resources on the offerings in markets that provide us the strongest opportunity to grow.
Total Q4 U.S. revenues were up 8% in spite of the diminishing impact from the Oracle on-premise revenue decline. More importantly, it now appears that the headwinds from the Oracle on-premise decline will be immaterial by mid-year of 2020. The strategy and business Transformation activities continues to be solid as companies continue to pursue enterprise digital