10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 28, 2014

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 0-24343

The Hackett Group, Inc.

(Exact name of registrant as specified in its charter)

FLORIDA	65-0750100
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1001 Brickell Bay Drive, Suite 3000 Miami, Florida	33131
(Address of principal executive offices)	(Zip Code)

(305) 375-8005

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days.    YES  ☒    NO  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  ☒    NO  ☐

Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐ (Do not check if a smaller reporting company)	Smaller Reporting Company	☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES    NO  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of May 2, 2014,  there were 29,889,945 shares of common stock outstanding.

The Hackett Group, Inc.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		Page
Item 1.	Financial Statements
	Consolidated Balance Sheets as of March 28, 2014 and December 27, 2013 (unaudited)	3
	Consolidated Statements of Operations for the Quarters Ended March 28, 2014 and March 29, 2013 (unaudited)	4
	Consolidated Statements of Comprehensive (Loss) Income for the Quarters Ended March 28, 2014 and
	March 29, 2013 (unaudited)	5
	Consolidated Statements of Cash Flows for the Quarters Ended March 28, 2014 and March 29, 2013 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16
Item 4.	Controls and Procedures	17
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 6.	Exhibits	18
SIGNATURES		19
INDEX TO EXHIBITS		20

2

PART I — FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

The Hackett Group, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	March 28,		December 27,
	2014		2013
ASSETS
Current assets:
Cash and cash equivalents	$	12,694	$	18,199
Accounts receivable and unbilled revenue, net of allowance of $1,507 and $1,674 at
March 28, 2014 and December 27, 2013, respectively		36,911		34,011
Deferred tax asset, net		3,610		5,130
Prepaid expenses and other current assets		2,638		2,283
Total current assets		55,853		59,623
Restricted cash		654		354
Property and equipment, net		12,814		13,019
Other assets		4,704		1,039
Goodwill, net		83,576		76,283
Total assets	$	157,601	$	150,318
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,043	$	8,080
Accrued expenses and other liabilities		33,994		25,646
Current portion of long-term debt		2,400		—
Total current liabilities		41,437		33,726
Long-term deferred tax liability, net		2,919		4,387
Long-term debt		26,325		19,029
Total liabilities		70,681		57,142
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 1,250,000 shares authorized; none issued and outstanding		—		—
Common stock, $.001 par value, 125,000,000 shares authorized; 53,094,950 and 52,143,103
shares issued at March 28, 2014 and December 27, 2013, respectively		53		52
Additional paid-in capital		261,608		261,861
Treasury stock, at cost, 22,905,569 and 22,189,409 shares March 28, 2014 and
December 27, 2013, respectively		(84,743)		(80,406)
Accumulated deficit		(85,926)		(83,880)
Accumulated comprehensive loss		(4,072)		(4,451)
Total shareholders' equity		86,920		93,176
Total liabilities and shareholders' equity	$	157,601	$	150,318

The accompanying notes are an integral part of the consolidated financial statements.

3

The Hackett Group, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Quarter Ended
	March 28,		March 29,
	2014		2013
Revenue:
Revenue before reimbursements	$	49,418	$	48,871
Reimbursements		5,487		5,478
Total revenue		54,905		54,349
Costs and expenses:
Cost of service:
Personnel costs before reimbursable expenses (includes $615 and $823
of stock compensation expense in the quarters ended March 28, 2014
and March 29, 2013, respectively)		33,253		32,042
Reimbursable expenses		5,487		5,478
Total cost of service		38,740		37,520
Selling, general and administrative costs  (includes $653 and $699 of stock
compensation expense in the quarters ended March 28, 2014 and
March 29, 2013, respectively)		14,241		13,300
Restructuring costs		3,604		—
Total costs and operating expenses		56,585		50,820
(Loss) income from operations		(1,680)		3,529
Other income (expense):
Interest income		1		1
Interest expense		(124)		(142)
(Loss) income from continuing operations before income taxes		(1,803)		3,388
Income tax expense		243		1,359
(Loss) income from continuing operations		(2,046)		2,029
Loss from discontinued operations		—		(71)
Net (loss) income	$	(2,046)	$	1,958
Basic net (loss) income per common share:
(Loss) income per common share from continuing operations	$	(0.07)	$	0.07
Loss per common share from discontinued operations		—		(0.01)
Net (loss) income per common share	$	(0.07)	$	0.06
Diluted net (loss) income per common share:
(Loss) income per common share from continuing operations	$	(0.07)	$	0.06
Loss per common share from discontinued operations		—		—
Net (loss) income per common share	$	(0.07)	$	0.06
Weighted average common shares outstanding:
Basic		29,120		30,292
Diluted		29,120		31,473

The accompanying notes are an integral part of the consolidated financial statements.

4

The Hackett Group, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands)

(unaudited)

	Quarter Ended
	March 28,		March 29,
	2014		2013
Net (loss) income	$	(2,046)	$	1,958
Foreign currency translation adjustment		379		(1,464)
Total comprehensive (loss) income	$	(1,667)	$	494

The accompanying notes are an integral part of the consolidated financial statements.

5

The Hackett Group, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Quarter Ended
	March 28,		March 29,
	2014		2013
Cash flows from operating activities:
Net (loss) income	$	(2,046)	$	1,958
Adjustments to reconcile net income to net cash used in
operating activities:
Depreciation expense		653		499
Amortization expense		557		150
Amortization of debt issuance costs		23		24
Restructuring costs		3,604		—
Provision (reversal) for doubtful accounts		253		(13)
Loss on foreign currency translation		46		55
Non-cash stock compensation expense		1,268		1,522
Changes in assets and liabilities, net of acquisition:
(Increase) decrease in accounts receivable and unbilled revenue		(1,262)		3,084
(Increase) decrease in prepaid expenses and other assets		(392)		1,344
Decrease in accounts payable		(3,038)		(2,895)
Decrease in accrued expenses and other liabilities		(7,653)		(6,275)
Net cash used in operating activities		(7,987)		(547)
Cash flows from investing activities:
Purchases of property and equipment		(443)		(658)
Cash consideration paid for acquisition		(2,700)		—
Cash acquired in acquisition of business		522		—
Increase in restricted cash		(300)		—
Net cash used in investing activities		(2,921)		(658)
Cash flows from financing activities:
Debt proceeds		9,500		—
Repayment of borrowings		(25)		(4,474)
Proceeds from issuance of common stock		253		310
Repurchases of common stock		(4,337)		—
Net cash provided by (used in) financing activities		5,391		(4,164)
Effect of exchange rate on cash		12		(200)
Net decrease in cash and cash equivalents		(5,505)		(5,569)
Cash and cash equivalents at beginning of year		18,199		16,906
Cash and cash equivalents at end of period	$	12,694	$	11,337
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	413	$	275
Cash paid for interest	$	107	$	82
Supplemental disclosure of non-cash investing and financing activities:
Shares issued to Sellers of acquired business	$	1,000	$	—

The accompanying notes are an integral part of the consolidated financial statements.

6

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation and General Information

Basis of Presentation

The accompanying consolidated financial statements of The Hackett Group,  Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation.

In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 27, 2013, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter ended March 28, 2014, are not necessarily indicative of the results to be expected for any future period or for the full fiscal year.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of March 28, 2014 and December 27, 2013, the carrying amount of each financial instrument, with the exception of debt, approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments.

The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates.

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, that may be up to 12 months from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations.

Reclassifications

Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation.

7

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

2. Net (Loss) Income per Common Share

Basic net (loss) income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Dilutive net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. During the quarter ended March 28, 2014, the Company recorded a net loss. As a result of the net loss, the Company has excluded a total of 749,197 other potentially dilutive securities from its dilutive weighted average common shares outstanding for the quarter ended March 28, 2014.

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended
	March 28,	March 29,
	2014	2013
Basic weighted average common shares outstanding	29,119,505	30,291,773
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to
vesting requirements issued to employees and non-employees	—	1,162,166
Common stock issuable upon the exercise of stock options	—	19,032
Dilutive weighted average common shares outstanding	29,119,505	31,472,971

Approximately 0.4 million and 0.9 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended March 28, 2014 and March 29, 2013, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.

3. Accounts Receivable and Unbilled Revenue, Net

Accounts receivable and unbilled revenue, net, consisted of the following (in thousands):

	March 28,		December 27,
	2014		2013
Accounts receivable	$	28,207	$	27,147
Unbilled revenue		10,211		8,538
Allowance for doubtful accounts		(1,507)		(1,674)
Accounts receivable and unbilled revenue, net	$	36,911	$	34,011

Accounts receivable is net of uncollected advanced billings. Unbilled revenue includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients.

8

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

4. Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):

		March 28,		December 27,
		2014		2013
Accrued compensation and benefits	$	5,379	$	5,163
Accrued bonuses		872		5,899
Accrued restructuring related expenses		3,250		134
Deferred revenue		10,005		8,345
Accrued sales, use, franchise and VAT tax		1,368		1,393
Acquisition-related contingent consideration		8,000		-
Other accrued expenses		5,120		4,712
Total accrued expenses and other liabilities	$	33,994	$	25,646

5.  RestructuringCosts

The Company recorded restructuring costs of $3.6 million during the quarter ended March 28, 2014, for reductions in consultants and functional support personnel. These actions were taken as a result of the continued decline in demand in Europe. The Company took steps to reduce its costs to better align its overall cost structure and organization with anticipated demand for its services.

The following table sets forth the activity in the restructuring expense accruals (in thousands):

		Severance and Other
		Employee Costs
Accrual balance at December 27, 2013	$	-
Accrual		3,604
Expenditures		(354)
Accrual balance at March 28, 2014	$	3,250

6. Credit Facility

On February 21, 2012, the Company entered into a credit agreement with Bank of America, N.A. ("Bank of America"), pursuant to which Bank of America agreed to lend the Company up to $20.0 million pursuant to a revolving line of credit (the “Revolver”) and up to $30.0 million pursuant to afive-year term loan (the “Term Loan”),which was used to finance the Company's $55.0 million tender offer for its shares in March 2012. See Note10 for further information.  

On August 27, 2013, the Company amended and restated the credit agreement (the "Credit Agreement") with Bank of America to finance a  tender offer for shares of its common stock completedin October 2013. See Note 10 for further information. The Credit Agreement was amended and restated to:

· To provide for up toan additional $17.0 million of borrowing under the Term Loan (the "Amended Term Loan" and together with the Revolver, the "Credit Facility"). As of March 28, 2014, the Amended Term Loanhad $24.0 million principal amount outstanding with an additional $1.0 million availability remaining and the Revolver had $4.5 million principal amount outstanding with an additional $15.5 million availability remaining.

· To extend the maturity date on the Revolver and the Amended Term Loan to August 27, 2018,  five years from the date of the amendment and restatement of the Credit Agreement.

The obligations of the Company under the Credit Facility are guaranteed by the active existing and future material U.S. subsidiaries of the Company and are secured by substantially all of the existing and future property and assets of the Company (subject to certain exceptions).

9

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

6. Credit Facility (continued)

The interest rates per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR base rate, plus an applicable margin percentage. The applicable margin percentage is based on the consolidated leverage ratio, as defined in the Credit Agreement. As of March 28, 2014, the applicable margin percentage was 1.50% per annum based on the consolidated leverage ratio, in the case of LIBOR rate advances, and 0.75% per annum, in the case of base rate advances.

The Term Loan requires amortization principal payments in equal quarterly installments beginning December 31, 2013 through August 27, 2018. The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions.

7. Acquisition

During the quarter ended March 28, 2014, the Company acquired the U.S., Canada and Uruguay operations of Technolab International Corporation. The purchase price for the assets acquired and liabilities assumed was $3.0 million in cash($0.3 million held in escrow) and $1.0 million in shares of the Company's common stock, which are subject to a four-year vesting provision. The sellers will have the ability to earn an additional $8.0 million in contingent consideration in cash and stock subject to an earn-out based on actual results achieved.

Management's initial purchase price allocation resulted in $7.1 million which exceeded the estimated fair value of tangible and intangible assets and liabilities and which was therefore allocated to goodwill. The acquired intangible assets with definite lives of $4.2 million will be amortized over periods ranging from 2 years to 5 years.

Management's preliminary determination of the fair value of the tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions that are subject to change. During the measurement period, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustment will be included in the purchase price allocation retrospectively. The measurement period can extend as long as one year from the acquisition date.

8. Discontinued Operations

During the quarter ended March 29, 2013, the Company exited the Oracle ERP implementation business. This transaction was not material to the Company’s consolidated financial statements.

9. Stock Based Compensation

During the three months ended March 28, 2014,  the Company issued618,181 restricted stock units at a weighted average grant-date fair value of $5.89 per share. As of March 28, 2014, the Company had 2,223,584 restricted stock units outstanding at a weighted average grant-date fair value of $4.80 per share. As of March 28, 2014,  $8.2 million of total restricted stock unit compensation expense related to unvested awards had not been recognized and is expected to be recognized over a weighted average period of approximately 2.6 years.

During the three months ended March 28, 2014, the Company issued 164,474shares of common stock subject to vesting requirements related to the Technolab acquisition at a weighted average grant-date fair value of $6.04 per share. See Note 7 for further detail.As of March 28, 2014, the Company had 265,474 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $7.52 per share. As of March 28, 2014, $1.3 million of compensation expense related to common stock subject to vesting requirements had not been recognized and is expected to be recognized over a weighted average period of approximately 2.9 years.

On February 8, 2012, the Compensation Committee approved the fiscal year 2012 through 2015 equity compensation target for the Company’s Chief Executive Officer and Chief Operating Officer. Under this target, a single performance-based option grant was made to the Company’s Chief Executive Officer and the Chief Operating Officer of 1,912,500 options and 1,004,063 options, respectively, totaling 2,916,563 options, each with an exercise price of $4.00 and a fair value of $0.96. One-half of the options vest upon the achievement of at least 50% growth of pro forma earnings per share and the remaining half vest upon the achievement of at least 50% pro forma EBITDA growth. Each metric can be achieved at any time during the six-year term of the award based on a trailing twelve month period measured quarterly.

In March of 2013 these performance-based stock option grants were surrendered by the Company’s Chief Executive Officer and Chief Operating Officer and replaced with performance-based SARs, equal to the number of options. The terms and conditions and the specific performance targets applicable to the SARs are the same as those applicable to the replaced options, with the exception that the SARs will be settled in cash, stock or any combination thereof, at the Company’s discretion.

10

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

9. Stock Based Compensation (continued)

Although the targets for the performance-based SARs have not been achieved as of March 28, 2014, the Company recorded $0.1 million of compensation expense related to these SARs for both quarters endedMarch 28, 2014 and March 29, 2013.

10. Shareholders’ Equity

Tender Offer

On August 28, 2013, the Company announced a tender offer to purchase up to $35.75 million in value of shares of its common stock, $0.001 par value per share, at a price not greater than $6.50 nor less than $5.75 per share, to the seller in cash, less any applicable withholding taxes and without interest (the "Offer"). On September 26, 2013, the Company amended the Offer (the "Amended Offer") to increase the price range at which it would purchase its common stock to a range of not greater than $7.00 nor less than $6.50 per share and to decrease the dollar amount of the Offer to $25.0 million. The Amended Offer was completed onOctober 15, 2013, with the Company purchasing approximately1.0 million shares of its common stock at a purchase price of $7.00 per share, for an aggregate cost of approximately $6.9 million, excluding fees and expenses related to the Amended Offer.  The 1.0 million shares represented approximately3.1% of the Company's issued and outstanding shares of common stock at that time. The Company financed the Amended Offer from borrowings under the Amended Term Loanunder its existing Credit Facility. See Note 6 for further detail. 

On March 21, 2012, the Company completed a tender offer to purchase 11.0 million shares of its common stock at a purchase price of $5.00 per share, for an aggregate cost of approximately $55.0 million, excluding fees and expenses relating to the tender offer The 11.0 million shares accepted for purchase represented approximately 27% of the Company’s issued and outstanding shares of common stock at that time.

Share Repurchase Plan

Under the Company’s share repurchase plan, the Company may buy back shares of its outstanding stock either on the open market or through privately negotiated transactions subject to market conditions and trading restrictions. During thethree months ended March 28, 2014, the Company repurchased approximately 716 thousand shares of its common stock at an average price of $6.06 per share, for a total cost of approximately $4.3 million.  In addition, the Company's Board of Directors approved the repurchase of an additional $5.0 million of the Company's common stock, thereby increasing the program size to $90.0 million. As of March 28, 2014, the Company had approximately $5.3 million available under its share repurchase plan authorization.During the quarter ended March 29, 2013, the Company did not buy back any shares under its share repurchase plan.

11. Litigation

The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s financial position, cash flows or results of operations.

12. Geographic and Group Information

Revenue is primarily based on the country of the contracting entity and was attributed to the following geographical areas (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014		2013
Revenue:
North America	$	46,406	$	42,310
International (primarily European countries)		8,499		12,039
Total revenue	$	54,905	$	54,349

11

The Hackett Group, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

12. Geographic and Group Information (continued)

Long-lived assets are attributable to the following geographic areas (in thousands):

	March 28,		December 27,
	2014		2013
Long-lived assets:
North America	$	84,661	$	74,095
International (primarily European countries)		16,433		16,246
Total long-lived assets	$	101,094	$	90,341

As of March 28, 2014, foreign assets included $16.0 million of goodwill related to the Archstone, REL and Technolab acquisitions. As of December 27, 2013, foreign assets included $15.8 million of goodwill related to the REL and Archstone acquisitions.

The Company’s revenue was derived from the following service groups (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014		2013
The Hackett Group	$	46,133	$	43,612
ERP Solutions		8,772		10,737
Total revenue	$	54,905	$	54,349

12

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements regarding our expected financial position and operating results, our business strategy, our financing plans and forecasted demographic and economic trends relating to our industry are forward-looking statements. These statements can sometimes be identified by our use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. We cannot promise you that our expectations reflected in such forward-looking statements will turn out to be correct. Factors that impact such forward-looking statements include, among others, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellation by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations and changes in general economic conditions, interest rates and our ability to obtain debt financing through additional borrowings under an amendment to our existing credit facility. An additional description of our risk factors is set forth in our Annual Report on Form 10-K for the year ended December 27, 2013. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

OVERVIEW

The Hackett Group, Inc. (“Hackett” or the “Company”) is a leading strategic advisory and technology consulting firm that enables companies to achieve world-class business performance. By leveraging the proprietary Hackett benchmarking database, the world’s leading repository of enterprise business process performance metrics and best practice intellectual capital, our business and technology solutions help clients optimize performance and returns on business transformation investments. Only Hackett empirically defines world-class performance in sales, general and administrative and supply chain activities with analysis gained through more than 10,000 benchmark studies over 21 years at over 3,500 of the world’s leading companies.

In the following discussion, “The Hackett Group” encompasses our Benchmarking, Business Transformation, Executive Advisory, Enterprise Performance Management("EPM") groups and Technolab Application Maintenance and Support ("AMS"). “ERPSolutions” encompasses our SAP ERP Technology group and SAP maintenance.

During the quarter ended March 29, 2013, we exited the Oracle ERP implementation business. The transaction was not material to our consolidated financial statements, however, the following information has been recast to exclude activity related to the business.

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The following table sets forth, for the periods indicated, our results of operations and the percentage relationship to revenue before reimbursements of such results (in thousands):

	Quarter Ended
	March 28,			March 29,
	2014			2013
Revenue:
Revenue before reimbursements	$	49,418	100.0%	$	48,871	100.0%
Reimbursements		5,487			5,478
Total revenue		54,905			54,349
Costs and expenses:
Cost of service:
Personnel costs before reimbursable
expenses		33,253	67.3%		32,042	65.6%
Reimbursable expenses		5,487			5,478
Total cost of service		38,740			37,520
Selling, general and administrative costs		14,241	28.8%		13,300	27.2%
Restructuring expense		3,604	7.3%		—
Total costs and operating expenses		56,585			50,820
(Loss) income from operations		(1,680)	-3.4%		3,529	7.2%
Other expense:
Interest expense, net		(123)	-0.2%		(141)	-0.3%
(Loss) income from continuing operations before income taxes		(1,803)	-3.6%		3,388	6.9%
Income tax expense		243	0.5%		1,359	2.8%
(Loss) income from continuing operations		(2,046)	-4.1%		2,029	4.1%
Loss from discontinued operations		—	0.0%		(71)	-0.1%
Net (loss) income	$	(2,046)	-4.1%	$	1,958	4.0%

Revenue. We are a global company with operations located primarily in the United States and Western Europe. Our revenue is denominated in multiple currencies, primarily the U.S. Dollar, British Pound, Euro and Australian Dollar, and as a result is affected by currency exchange rate fluctuations. Our results for the quarters ended March 28, 2014 and March 29, 2013, were not materially impacted by foreign currency exchange rate fluctuations.

Total Company revenue increased slightly during the quarter ended March 28,2014,  as compared to the quarter ended March 29, 2013. The following table summarizes revenue (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014		2013
The Hackett Group	$	46,133	$	43,612
ERP Solutions		8,772		10,737
Total revenue	$	54,905	$	54,349

Although The Hackett Group U.S. revenue increased 19% during the quarter ended March 28, 2014, as compared to the quarter ended March 29, 2013, this growth was offset by a decrease of international revenue of 29%during the same periods.  The increase in The Hackett Group's U.S.revenue quarter over quarter primarily related to the increased demand in the Business Transformation and EPM groups. The Hackett Group’s international revenue, which is primarily based on the country of the contracting entity, accounted for 15% of total Company revenue for the quarter ended March 28, 2014 and 22% of total Company revenue for the quarter ended March 29, 2013, respectively.

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ERP Solutions revenue decreased 18% for the quarter ended March 28, 2014, as compared to the quarter ended March 29, 2013.  This revenue decrease reflected the higher than expected growth achieved during the quarter ended March 29, 2013.

During the quarters ended March 28, 2014 and March 29, 2013, no customer accounted for more than 5% of total Company revenue.

Cost of Service. Cost of service primarily consists of salaries, benefits and incentive compensation for consultants, subcontractor fees and reimbursable expenses associated with projects. Cost of service before reimbursable expenses increased 4%, or $1.2 million,for the quarter ended March 28, 2014, as compared to the quarter ended March 29, 2013. Total cost of service before reimbursable expenses, as a percentage of revenue before reimbursements, increased to 67% forthe quarter ended March 28, 2014, as compared to 66%  for the quarter ended March 29, 2013. The increase was primarily due to increased headcount attributed to the Technolab acquisition.

As a percentage of revenue before reimbursements, The Hackett Group generated net margins of 33% in the quarter ended March 28, 2014, which were unfavorably impacted by lower than planned performance in Europe. As a percentage of revenue before reimbursements, ERP Solutions generated net margins of 32% for the quarter ended March 28, 2014.

Selling, General and Administrative. Selling, general and administrative costs were $14.2 million for the quarter ended March 28, 2014,  as compared to $13.3 million for the quarter ended March 29, 2013. Selling, general and administrative costs as a percentage of revenue before reimbursements increased to 29% for the quarter ended March 28, 2014, as compared to 27% for the quarter ended March 29, 2013.The increase in selling, general and administrative costs was primarily due to an increase in depreciation related to the Hackett Performance Exchange and amortization related to the intangible assets acquired in the Technolab acquisition.

Restructuring Costs.During the quarter ended March 28, 2014, we recorded restructuring costs of $3.6 million, for reductions in consultants and functional support personnel. These actions were taken as a result of our continued decline in Europe demand.  Weeffected these changes to reduce our costs to better align our overall cost structure and organization with anticipated demand for our services.

Income Taxes. In the quarter ended March 28, 2014, we recorded income tax expense of $0.2 million, which reflected an estimated annual tax rate of 13% for certain federal, foreign and state taxes. In the quarter ended March 29, 2013, we recorded income tax expense of $1.4 million, which reflected an estimated annual tax rate of 40.1% for certain federal, foreign and state taxes. The decrease in the estimated annual tax rate is due to the net loss incurred during the quarter ended March 28, 2014, primarily as a result of the restructuring costs, as discussed above.

Liquidity and Capital Resources

As of March 28, 2014 and December 27, 2013, we had $12.7 million and $18.2 million, respectively, classified in cash and cash equivalents on the consolidated balance sheets. As of the same dates, we had $0.7 million and $0.3 million on deposit with financial institutions that primarily related to certain employee compensation agreements and funds held in escrow related to the Technolab acquisition. These deposit accounts have been classified as restricted cash on the consolidated balance sheets.

The following table summarizes our cash flow activity (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014			2013
Cash flows used in operating activities	$	(7,987)	$	(547)
Cash flows used in investing activities	$	(2,921)	$	(658)
Cash flows provided by (used in) financing activities	$	5,391	$	(4,164)

Cash Flows from Operating Activities

Net cash used in operating activities was $8.0 million and $0.5 million during the three months ended March 28, 2014 and March 29, 2013, respectively. The increased use of cash primarily related to increased accounts receivable and unbilled balances, and the timing of vendor and incentive award payments.

Cash Flows from Investing Activities

Net cash used in investing activities was $2.9 million and $0.7 million during the three months ended March 28, 2014 and March 29, 2013, respectively. Excluding the noncash impact of the assets and liabilities acquired in the Technolab acquisition, the

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usage of cash during the quarter ended March 28, 2014, was primarily related to the cash consideration paid for the Technolab acquisition, partially offset by cash acquired in the acquisition. In addition, cash was utilized during both periods on capital expenditures for the development of the Hackett Performance Exchange.

Cash Flows from Financing Activities

On October 15, 2013, we completed a tender offer to purchase approximately 1.0 million shares of our common stock at a purchase price of $7.00 per share, for an aggregate cost of approximately $6.9 million, excluding fees and expenses related to the tender offer. On March 21, 2012, we completed a tender offer to purchase 11.0 million shares of our common stock at a purchase price of $5.00 per share, for an aggregate cost of approximately $55.0 million, excluding fees and expenses related to the tender offer.

On February 21, 2012, the Company entered into a credit agreement with Bank of America, N.A. ("Bank of America"), pursuant to which Bank of America agreed to lend the Company up to $20.0 million pursuant to a revolving line of credit (the “Revolver”) and up to $30.0 million pursuant to a five-year term loan (the “Term Loan”) which was used to finance the Company's $55.0 million tender offer for its shares in March 2012. See Note 6 to the consolidated financial statements for further information.  

On August 27, 2013, the Company amended and restated the credit agreement (the "Credit Agreement") with Bank of America to provide for up to an additional $17.0 million of borrowing availability under the Term Loan (the "Amended Term Loan" and together with the Revolver, the "Credit Facility") and extend the maturity date on the Revolver and the Amended Term Loan to August 27, 2018, five years from the date of the amendment and restatement of the Credit Agreement. Additional borrowings of $7.0 million under the Amended Term Loan were used to finance our tender offer in October 2013. See Note 6 to the consolidated financial statements for further information. As of March 28, 2014, the Company had $24.2 million principal amount outstanding under the Amended Term Loan and $4.5 million outstanding under the Revolver.

Net cash provided by financing activities was $5.4 million during the quarter ended March 28, 2014. This increase in cash was primarily due to $9.5 million of borrowings under our Credit Facility and proceeds from the sale of the Company stock. This increase in cash was offset by the repurchase of $4.3 million of Company stock. Net cash used by financing activities during the quarter ended March 29, 2013, primarily related to the repayment of borrowings outstanding under the Credit Facility of $4.5 million, partially offset by the proceeds from the sale of Company stock.

We currently believe that available funds (including the cash on hand and $15.5 million in funds available for borrowing under the Revolver), and cash flows generated by operations will be sufficient to fund our working capital and capital expenditure requirements for at least the next twelve months. We may decide to raise additional funds in order to fund expansion, to develop new or further enhance products and services, to respond to competitive pressures, or to acquire complementary businesses or technologies. There is no assurance, however, that additional financing will be available when needed or desired.

Recently Issued Accounting Standards

For a discussion of recently issued accounting standards, please see Note 1, "Basis of Presentation and General Information," to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 27, 2013.

Item  3.Quantitative and Qualitative Disclosures About Market Risk.

As ofMarch 28, 2014, our exposure to market risk related primarily to changes in interest rates and foreign currency exchange rate risks.

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to the Credit Facility, which is subject to variable interest rates. The interest rates per annum applicable to loans under the Credit Facility will be, at our option, equal to either a base rate or a LIBOR rate for one-, two-, three- or nine-month interest periods chosen by us in each case, plus an applicable margin percentage. A 100 basis point increase in our interest rate under our Credit Facility would not have had a material impact on our results of operations for thequarter ended March 28, 2014.

Exchange Rate Sensitivity

We face exposure to adverse movements in foreign currency exchange rates as a portion of our revenue, expenses, assets and liabilities are denominated in currencies other than the U.S. Dollar, primarily the British Pound, the Euro and the Australian Dollar. These exposures may change over time as business practices evolve. Our results for thequarter ended March 28, 2014 were not materially impacted by foreign currency exchange rate fluctuations.

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Item  4.Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Controls

There were no changes in our internal controls over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

Item 1.Legal Proceedings.

The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s financial position, cash flows or results of operations.

Item  1A.Risk Factors.

There have been no material changes to any of the risk factors disclosed in the Company’s most recently filed Annual Report on Form 10-K.

Item  2.Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

During the three months ended March 28, 2014, the Company repurchased approximately 716 thousand shares of its common stock at an average price of $6.06 per share, for a total cost of approximately $4.3 million, under the Company's Board of Director approved repurchase plan. During the quarter, the Company's Board of Directors approved the repurchase of an additional $5.0 million of the Company's common stock, thereby increasing the aggregate program size to $90.0 million. As of March 28, 2014, the Company had approximately $5.3 million of remaining authorization under this program.

			Total Number	Maximum Dollar
			of Shares as Part	Value That May
			of Publicly	Yet be Purchased
	Total Number	Average Price	Announced	Under the
Period	of Shares	Paid per Share	Program	Program
Balance as of December 27, 2013	-	$                            -	-	$                    4,594,028
December 28, 2013 to January 24, 2014	189,270	$                      6.09	189,270	$                    3,440,638
January 25, 2014 to February 21, 2014	157,558	$                      5.97	157,558	$                    7,499,549
February 22, 2014 to March 28, 2014	369,332	$                      6.07	369,332	$                    5,256,725
	716,160	$                            -	716,160

Item  6.Exhibits.

See Index to Exhibits on page 20, which is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	The Hackett Group, Inc.
Date: May 7, 2014	/s/ Robert A. Ramirez
	Robert A. Ramirez
	Executive Vice President, Finance and Chief Financial Officer

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INDEX TO EXHIBITS

Exhibit No.	Exhibit Description
31.1	Certification by CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (exhibits filed herewith).
31.2	Certification by CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (exhibits filed herewith).
32	Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (exhibits filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Ted A. Fernandez, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Hackett Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2014	/s/ Ted A. Fernandez
	Ted A. Fernandez
	Chairman of the Board and Chief Executive Officer
	The Hackett Group, Inc.

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Robert A. Ramirez, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Hackett Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May  7, 2014	/s/ Robert A. Ramirez
	Robert A. Ramirez
	Executive Vice President, Finance and Chief Financial Officer
	The Hackett Group, Inc.

EX-32

Exhibit 32

THE HACKETT GROUP, INC

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Hackett Group, Inc. (the “Company”) on Form 10-Q for the period ended March 28, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Ted A. Fernandez, Chairman of the Board and Chief Executive Officer, and Robert A. Ramirez, Executive Vice President, Finance and Chief Financial Officer, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1) The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Ted A. Fernandez

Ted A. Fernandez

Chairman of the Board and Chief Executive Officer

May 7, 2014

/s/ Robert A. Ramirez

Robert A. Ramirez

Executive Vice President, Finance and Chief Financial Officer

May 7, 2014

A signed original of this statement required by Section 906 has been provided to The Hackett Group, Inc. and will be retained by The Hackett Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Geographic And Group Information (Revenue By Service Group) (Details) (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Segment Reporting Information [Line Items]
Total revenue	$ 54,905,000	$ 54,349,000
The Hackett Group [Member]
Segment Reporting Information [Line Items]
Total revenue	46,133,000	43,612,000
ERP Solutions [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 8,772,000	$ 10,737,000

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Acquisition (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 28, 2014
Assets acquired and liabilities assumed	$ 3.0
Held in escrow	0.3
Purchase price, common stock	1.0
Vesting pervision	4 years
Contingent consideration	8.0
Purchase price	7.1
Acquired intangible assets	$ 4.2
Minimum [Member]
Amortization period	2 years
Maximum [Member]
Amortization period	5 years

XML

Geographic And Group Information (Tables)

3 Months Ended

Mar. 28, 2014

Geographic And Group Information [Abstract]

Geographic Revenue

	Quarter Ended
	March 28,		March 29,
	2014		2013
Revenue:
North America	$	46,406	$	42,310
International (primarily European countries)		8,499		12,039
Total revenue	$	54,905	$	54,349

Long-Lived Assets Attributable To Geographic Area

	March 28,		December 27,
	2014		2013
Long-lived assets:
North America	$	84,661	$	74,095
International (primarily European countries)		16,433		16,246
Total long-lived assets	$	101,094	$	90,341

Revenue By Service Group

	Quarter Ended
	March 28,		March 29,
	2014		2013
The Hackett Group	$	46,133	$	43,612
ERP Solutions		8,772		10,737
Total revenue	$	54,905	$	54,349

XML

Geographic And Group Information (Geographic Revenue) (Details) (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 54,905,000	$ 54,349,000
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	46,406,000	42,310,000
International Primarily European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 8,499,000	$ 12,039,000

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Net (Loss) Income Per Common Share

3 Months Ended

Mar. 28, 2014

Net (Loss) Income Per Common Share [Abstract]

Net (Loss) Income Per Common Share

2. Net (Loss) Income per Common Share

Basic net (loss) income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Dilutive net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. During the quarter ended March 28, 2014, the Company recorded a net loss. As a result of the net loss, the Company has excluded a total of 749,197 other potentially dilutive securities from its dilutive weighted average common shares outstanding for the quarter ended March 28, 2014.

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended
	March 28,	March 29,
	2014	2013
Basic weighted average common shares outstanding	29,119,505	30,291,773
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to
vesting requirements issued to employees and non-employees	—	1,162,166
Common stock issuable upon the exercise of stock options	—	19,032
Dilutive weighted average common shares outstanding	29,119,505	31,472,971

Approximately 0.4 million and 0.9 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended March 28, 2014 and March 29, 2013, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.

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Accrued Expenses And Other Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 28, 2014	Dec. 27, 2013
Accrued Expenses And Other Liabilities [Abstract]
Accrued compensation and benefits	$ 5,379	$ 5,163
Accrued bonuses	872	5,899
Accrued restructuring related expenses	3,250	134
Deferred revenue	10,005	8,345
Accrued sales, use, franchise and VAT tax	1,368	1,393
Acquisition-related contingent consideration	8,000
Other accrued expenses	5,120	4,712
Total accrued expenses and other liabilities	$ 33,994	$ 25,646

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Accounts Receivable And Unbilled Revenue (Details) (USD $) In Thousands, unless otherwise specified	Mar. 28, 2014	Dec. 27, 2013
Accounts Receivable And Unbilled Revenue, Net [Abstract]
Accounts receivable	$ 28,207	$ 27,147
Unbilled revenue	10,211	8,538
Allowance for doubtful accounts	(1,507)	(1,674)
Accounts receivable and unbilled revenue, net	$ 36,911	$ 34,011

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Restructuring Costs (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 28, 2014
Restructuring Costs [Abstract]
Restructuring costs	$ 3,600,000
Restructuring benefit	$ (3,604,000)

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Restructuring Costs (Summary Of Restructuring Expense Accruals) (Details) (Severance And Other Employee Costs [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 28, 2014
Severance And Other Employee Costs [Member]
Restructuring Cost and Reserve [Line Items]
Accrual balance
Accrual	(3,604)
Expenditures	(354)
Accrual balance	$ 3,250

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Basis of Presentation and General Information

3 Months Ended

Mar. 28, 2014

Basis of Presentation and General Information [Abstract]

Basis Of Presentation And General Information

1. Basis of Presentation and General Information

Basis of Presentation

The accompanying consolidated financial statements of The Hackett Group,  Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation.

In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 27, 2013, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter ended March 28, 2014, are not necessarily indicative of the results to be expected for any future period or for the full fiscal year.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of March 28, 2014 and December 27, 2013, the carrying amount of each financial instrument, with the exception of debt, approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments.

The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates.

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, that may be up to 12 months from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations.

Reclassifications

Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation.

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Credit Facility (Details) (USD $) In Millions, unless otherwise specified				3 Months Ended		3 Months Ended		3 Months Ended
	Mar. 21, 2012	Mar. 28, 2014 Revolving line of credit facility [Member]	Feb. 21, 2012 Revolving line of credit facility [Member]	Mar. 28, 2014 Term Loan [Member]	Feb. 21, 2012 Term Loan [Member]	Mar. 28, 2014 Revolving Line Of Credit Facility And Term Loan [Member]	Aug. 27, 2013 Revolving Line Of Credit Facility And Term Loan [Member]	Mar. 28, 2014 LIBOR Rate [Member]	Mar. 28, 2014 Base Rate [Member]
Line of Credit Facility [Line Items]
Borrowing capacity under credit facility			$ 20.0		$ 30.0
Credit facility amount outstanding		4.5		24.0
Availability remaining		15.5		1.0
Term of debt				5 years		5 years
Stock repurchase cost of tender offer net of fees and expenses related to tender offer	55.0
Additional borrowing capacity							$ 17.0
Maturity date				Aug. 27, 2018		Aug. 27, 2018
Margin percentage base rate								1.50%	0.75%

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Consolidated Balance Sheets (USD $)	Mar. 28, 2014	Dec. 27, 2013
Current assets:
Cash and cash equivalents	$ 12,694,000	$ 18,199,000
Accounts receivable and unbilled revenue, net of allowance of $1,507 and $1,674 at March 28, 2014 and December 27, 2013, respectively	36,911,000	34,011,000
Deferred tax asset, net	3,610,000	5,130,000
Prepaid expenses and other current assets	2,638,000	2,283,000
Total current assets	55,853,000	59,623,000
Restricted cash	654,000	354,000
Property and equipment, net	12,814,000	13,019,000
Other assets	4,704,000	1,039,000
Goodwill, net	83,576,000	76,283,000
Total assets	157,601,000	150,318,000
Current liabilities:
Accounts payable	5,043,000	8,080,000
Accrued expenses and other liabilities	33,994,000	25,646,000
Current portion of long-term debt	2,400,000
Total current liabilities	41,437,000	33,726,000
Long-term deferred tax liability, net	2,919,000	4,387,000
Long-term debt	26,325,000	19,029,000
Total liabilities	70,681,000	57,142,000
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 1,250,000 shares authorized; none issued and outstanding
Common stock, $.001 par value, 125,000,000 shares authorized; 53,094,950 and 52,143,103 shares issued at March 28, 2014 and December 27, 2013, respectively	53,000	52,000
Additional paid-in capital	261,608,000	261,861,000
Treasury stock, at cost, 22,905,569 and 22,189,409 shares March 28, 2014 and December 27, 2013, respectively	(84,743,000)	(80,406,000)
Accumulated deficit	(85,926,000)	(83,880,000)
Accumulated comprehensive loss	(4,072,000)	(4,451,000)
Total shareholders' equity	86,920,000	93,176,000
Total liabilities and shareholders' equity	$ 157,601,000	$ 150,318,000

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Consolidated Statements of Comprehensive (Loss) Income (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Consolidated Statements of Comprehensive (Loss) Income [Abstract]
Net (loss) income	$ (2,046,000)	$ 1,958,000
Foreign currency translation adjustment	379,000	(1,464,000)
Total comprehensive (loss) income	$ (1,667,000)	$ 494,000

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Shareholders' Equity (Details) (USD $)	3 Months Ended					0 Months Ended
	Mar. 28, 2014	Mar. 29, 2013	Dec. 27, 2013	Mar. 21, 2012	Mar. 21, 2012 2012 Tender Offer [Member]	Sep. 26, 2013 2013 Tender Offer [Member]	Aug. 28, 2013 2013 Tender Offer [Member]	Sep. 26, 2013 2013 Tender Offer [Member] Minimum [Member]	Aug. 28, 2013 2013 Tender Offer [Member] Minimum [Member]	Sep. 26, 2013 2013 Tender Offer [Member] Maximum [Member]	Aug. 28, 2013 2013 Tender Offer [Member] Maximum [Member]	Oct. 15, 2013 Subsequent Event [Member] 2013 Tender Offer [Member]
Equity, Class of Treasury Stock [Line Items]
Additional stock repurchase authorized		$ 5,000,000
Stock repurchase authorized		90,000,000				25,000,000	35,750,000					6,900,000
Stock repurchase shares authorized												1,000,000
Common stock, par value	$ 0.001		$ 0.001				$ 0.001
Purchase price per share	$ 6.06							$ 6.50	$ 5.75	$ 7.00	$ 6.50	$ 7.00
Percentage of issued and outstanding shares repurchased in tender offer					27.00%							3.10%
Number of stock repurchased in tender offer					11,000,000
Price per share repurchased in tender offer					$ 5.00
Stock repurchase cost of tender offer net of fees and expenses related to tender offer				55,000,000	55,000,000
Repurchase of common stock	716,000
Total cost	4,300,000
Amount available under repurchase plan	$ 5,300,000

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Accounts Receivable And Unbilled Revenue, Net (Tables)

3 Months Ended

Mar. 28, 2014

Accounts Receivable And Unbilled Revenue, Net [Abstract]

Accounts Receivable And Unbilled Revenue, Net

	March 28,		December 27,
	2014		2013
Accounts receivable	$	28,207	$	27,147
Unbilled revenue		10,211		8,538
Allowance for doubtful accounts		(1,507)		(1,674)
Accounts receivable and unbilled revenue, net	$	36,911	$	34,011

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Geographic And Group Information (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 28, 2014	Dec. 27, 2013
Geographic And Group Information [Abstract]
Goodwill included in foreign assets	$ 16.0	$ 15.8

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Restructuring Costs (Tables)

3 Months Ended

Mar. 28, 2014

Restructuring Costs [Abstract]

Summary Of Restructuring Expense Accruals

		Severance and Other
		Employee Costs
Accrual balance at December 27, 2013	$	-
Accrual		3,604
Expenditures		(354)
Accrual balance at March 28, 2014	$	3,250

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Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Cash flows from operating activities:
Net (loss) income	$ (2,046,000)	$ 1,958,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense	653,000	499,000
Amortization expense	557,000	150,000
Amortization of debt issuance costs	23,000	24,000
Restructuring costs	3,604,000
Provision (reversal) for doubtful accounts	253,000	(13,000)
Loss on foreign currency translation	46,000	55,000
Non-cash stock compensation expense	1,268,000	1,522,000
Changes in assets and liabilities, net of acquisition:
(Increase) decrease in accounts receivable and unbilled revenue	(1,262,000)	3,084,000
(Increase) decrease in prepaid expenses and other assets	(392,000)	1,344,000
Decrease in accounts payable	(3,038,000)	(2,895,000)
Decrease in accrued expenses and other liabilities	(7,653,000)	(6,275,000)
Net cash used in operating activities	(7,987,000)	(547,000)
Cash flows from investing activities:
Purchases of property and equipment	(443,000)	(658,000)
Cash consideration paid for acquisition	(2,700,000)
Cash acquired in acquisition of business	522,000
Increase in restricted cash	(300,000)
Net cash used in investing activities	(2,921,000)	(658,000)
Cash flows from financing activities:
Debt proceeds	9,500,000
Repayment of borrowings	(25,000)	(4,474,000)
Proceeds from issuance of common stock	253,000	310,000
Repurchases of common stock	(4,337,000)
Net cash provided by (used in) financing activities	5,391,000	(4,164,000)
Effect of exchange rate on cash	12,000	(200,000)
Net decrease in cash and cash equivalents	(5,505,000)	(5,569,000)
Cash and cash equivalents at beginning of year	18,199,000	16,906,000
Cash and cash equivalents at end of period	12,694,000	11,337,000
Supplemental disclosure of cash flow information:
Cash paid for income taxes	413,000	275,000
Cash paid for interest	$ 107,000	$ 82,000
Supplemental disclosure of non-cash investing and financing activities:
Shares issued to Sellers of acquired business	1,000,000

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 28, 2014	Dec. 27, 2013
Consolidated Balance Sheets [Abstract]
Accounts receivable and unbilled revenue, allowance	$ 1,507	$ 1,674
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,250,000	1,250,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	53,094,950	52,143,103
Treasury stock, at cost, shares	22,905,569	22,189,409

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Shareholders' Equity

3 Months Ended

Mar. 28, 2014

Shareholders' Equity [Abstract]

Shareholders' Equity

10. Shareholders’ Equity

Tender Offer

On August 28, 2013, the Company announced a tender offer to purchase up to $35.75 million in value of shares of its common stock, $0.001 par value per share, at a price not greater than $6.50 nor less than $5.75 per share, to the seller in cash, less any applicable withholding taxes and without interest (the "Offer"). On September 26, 2013, the Company amended the Offer (the "Amended Offer") to increase the price range at which it would purchase its common stock to a range of not greater than $7.00 nor less than $6.50 per share and to decrease the dollar amount of the Offer to $25.0 million. The Amended Offer was completed on October 15, 2013, with the Company purchasing approximately 1.0 million shares of its common stock at a purchase price of $7.00 per share, for an aggregate cost of approximately $6.9 million, excluding fees and expenses related to the Amended Offer. The 1.0 million shares represented approximately 3.1% of the Company's issued and outstanding shares of common stock at that time. The Company financed the Amended Offer from borrowings under the Amended Term Loan under its existing Credit Facility. See Note 6 for further detail. 

On March 21, 2012, the Company completed a tender offer to purchase 11.0 million shares of its common stock at a purchase price of $5.00 per share, for an aggregate cost of approximately $55.0 million, excluding fees and expenses relating to the tender offer The 11.0 million shares accepted for purchase represented approximately 27% of the Company’s issued and outstanding shares of common stock at that time.

Share Repurchase Plan

Under the Company’s share repurchase plan, the Company may buy back shares of its outstanding stock either on the open market or through privately negotiated transactions subject to market conditions and trading restrictions. During the three months ended March 28, 2014, the Company repurchased approximately 716 thousand shares of its common stock at an average price of $6.06 per share, for a total cost of approximately $4.3 million. In addition, the Company's Board of Directors approved the repurchase of an additional $5.0 million of the Company's common stock, thereby increasing the program size to $90.0 million. As of March 28, 2014, the Company had approximately $5.3 million available under its share repurchase plan authorization. During the quarter ended March 29, 2013, the Company did not buy back any shares under its share repurchase plan.

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Document and Entity Information	3 Months Ended
	Mar. 28, 2014	May 02, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	HACKETT GROUP, INC.
Entity Central Index Key	0001057379
Document Type	10-Q
Document Period End Date	Mar. 28, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--01-02
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,889,945

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Litigation

3 Months Ended

Mar. 28, 2014

Litigation [Abstract]

Litigation

11. Litigation

The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s financial position, cash flows or results of operations.

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Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Revenue:
Revenue before reimbursements	$ 49,418,000	$ 48,871,000
Reimbursements	5,487,000	5,478,000
Total revenue	54,905,000	54,349,000
Cost of service:
Personnel costs before reimbursable expenses (includes $615 and $823 of stock compensation expense in the quarters ended March 28, 2014 and March 29, 2013, respectively)	33,253,000	32,042,000
Reimbursable expenses	5,487,000	5,478,000
Total cost of service	38,740,000	37,520,000
Selling, general and administrative costs (includes $653 and $699 of stock compensation expense in the quarters ended March 28, 2014 and March 29, 2013, respectively)	14,241,000	13,300,000
Restructuring costs	3,604,000
Total costs and operating expenses	56,585,000	50,820,000
(Loss) income from operations	(1,680,000)	3,529,000
Other income (expense):
Interest income	1,000	1,000
Interest expense	(124,000)	(142,000)
(Loss) income from continuing operations before income taxes	(1,803,000)	3,388,000
Income tax expense	243,000	1,359,000
(Loss) income from continuing operations	(2,046,000)	2,029,000
Loss from discontinued operations		(71,000)
Net (loss) income	$ (2,046,000)	$ 1,958,000
Basic net (loss) income per common share:
(Loss) income per common share from continuing operations	$ (0.07)	$ 0.07
Loss per common share from discontinued operations		$ (0.01)
Net (loss) income per common share	$ (0.07)	$ 0.06
Diluted net (loss) income per common share:
(Loss) income per common share from continuing operations	$ (0.07)	$ 0.06
Loss per common share from discontinued operations
Net (loss) income per common share	$ (0.07)	$ 0.06
Weighted average common shares outstanding:
Basic	29,119,505	30,291,773
Diluted	29,119,505	31,472,971

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Restructuring Costs

3 Months Ended

Mar. 28, 2014

Restructuring Costs [Abstract]

Restructuring Costs

5.  RestructuringCosts

The Company recorded restructuring costs of $3.6 million during the quarter ended March 28, 2014, for reductions in consultants and functional support personnel. These actions were taken as a result of the continued decline in demand in Europe. The Company took steps to reduce its costs to better align its overall cost structure and organization with anticipated demand for its services.

The following table sets forth the activity in the restructuring expense accruals (in thousands):

		Severance and Other
		Employee Costs
Accrual balance at December 27, 2013	$	-
Accrual		3,604
Expenditures		(354)
Accrual balance at March 28, 2014	$	3,250

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Accrued Expenses And Other Liabilities

3 Months Ended

Mar. 28, 2014

Accrued Expenses And Other Liabilities [Abstract]

Accrued Expenses And Other Liabilities

4. Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):

		March 28,		December 27,
		2014		2013
Accrued compensation and benefits	$	5,379	$	5,163
Accrued bonuses		872		5,899
Accrued restructuring related expenses		3,250		134
Deferred revenue		10,005		8,345
Accrued sales, use, franchise and VAT tax		1,368		1,393
Acquisition-related contingent consideration		8,000		-
Other accrued expenses		5,120		4,712
Total accrued expenses and other liabilities	$	33,994	$	25,646

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Accrued Expenses And Other Liabilities (Tables)

3 Months Ended

Mar. 28, 2014

Accrued Expenses And Other Liabilities [Abstract]

Components Of Accrued Expenses And Other Liabilities

		March 28,		December 27,
		2014		2013
Accrued compensation and benefits	$	5,379	$	5,163
Accrued bonuses		872		5,899
Accrued restructuring related expenses		3,250		134
Deferred revenue		10,005		8,345
Accrued sales, use, franchise and VAT tax		1,368		1,393
Acquisition-related contingent consideration		8,000		-
Other accrued expenses		5,120		4,712
Total accrued expenses and other liabilities	$	33,994	$	25,646

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Geographic And Group Information

3 Months Ended

Mar. 28, 2014

Geographic And Group Information [Abstract]

Geographic And Group Information

12. Geographic and Group Information

Revenue is primarily based on the country of the contracting entity and was attributed to the following geographical areas (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014		2013
Revenue:
North America	$	46,406	$	42,310
International (primarily European countries)		8,499		12,039
Total revenue	$	54,905	$	54,349

Long-lived assets are attributable to the following geographic areas (in thousands):

	March 28,		December 27,
	2014		2013
Long-lived assets:
North America	$	84,661	$	74,095
International (primarily European countries)		16,433		16,246
Total long-lived assets	$	101,094	$	90,341

As of March 28, 2014, foreign assets included $16.0 million of goodwill related to the Archstone, REL and Technolab acquisitions. As of December 27, 2013, foreign assets included $15.8 million of goodwill related to the REL and Archstone acquisitions.

The Company’s revenue was derived from the following service groups (in thousands):

	Quarter Ended
	March 28,		March 29,
	2014		2013
The Hackett Group	$	46,133	$	43,612
ERP Solutions		8,772		10,737
Total revenue	$	54,905	$	54,349

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Discontinued Operations

3 Months Ended

Mar. 28, 2014

Discontinued Operations [Abstract]

Discontinued Operations

8. Discontinued Operations

During the quarter ended March 29, 2013, the Company exited the Oracle ERP implementation business. This transaction was not material to the Company’s consolidated financial statements.

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Credit Facility

3 Months Ended

Mar. 28, 2014

Credit Facility [Abstract]

Credit Facility

6. Credit Facility

On February 21, 2012, the Company entered into a credit agreement with Bank of America, N.A. ("Bank of America"), pursuant to which Bank of America agreed to lend the Company up to $20.0 million pursuant to a revolving line of credit (the “Revolver”) and up to $30.0 million pursuant to afive-year term loan (the “Term Loan”),which was used to finance the Company's $55.0 million tender offer for its shares in March 2012. See Note10 for further information.

On August 27, 2013, the Company amended and restated the credit agreement (the "Credit Agreement") with Bank of America to finance a tender offer for shares of its common stock completed in October 2013. See Note 10 for further information. The Credit Agreement was amended and restated to:

· To provide for up to an additional $17.0 million of borrowing under the Term Loan (the "Amended Term Loan" and together with the Revolver, the "Credit Facility"). As of March 28, 2014, the Amended Term Loanhad $24.0 million principal amount outstanding with an additional $1.0 million availability remaining and the Revolver had $4.5 million principal amount outstanding with an additional $15.5 million availability remaining.

· To extend the maturity date on the Revolver and the Amended Term Loan to August 27, 2018,  five years from the date of the amendment and restatement of the Credit Agreement.

The obligations of the Company under the Credit Facility are guaranteed by the active existing and future material U.S. subsidiaries of the Company and are secured by substantially all of the existing and future property and assets of the Company (subject to certain exceptions).

The interest rates per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR base rate, plus an applicable margin percentage. The applicable margin percentage is based on the consolidated leverage ratio, as defined in the Credit Agreement. As of March 28, 2014, the applicable margin percentage was 1.50% per annum based on the consolidated leverage ratio, in the case of LIBOR rate advances, and 0.75% per annum, in the case of base rate advances.

The Term Loan requires amortization principal payments in equal quarterly installments beginning December 31, 2013 through August 27, 2018. The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions.

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Acquisition

3 Months Ended

Mar. 28, 2014

Acquisition [Abstract]

Acquisition

7. Acquisition

During the quarter ended March 28, 2014, the Company acquired the U.S., Canada and Uruguay operations of Technolab International Corporation. The purchase price for the assets acquired and liabilities assumed was $3.0 million in cash ($0.3 million held in escrow) and $1.0 million in shares of the Company's common stock, which are subject to a four-year vesting provision. The sellers will have the ability to earn an additional $8.0 million in contingent consideration in cash and stock subject to an earn-out based on actual results achieved.

Management's initial purchase price allocation resulted in $7.1 million which exceeded the estimated fair value of tangible and intangible assets and liabilities and which was therefore allocated to goodwill. The acquired intangible assets with definite lives of $4.2 million will be amortized over periods ranging from 2 years to 5 years.

Management's preliminary determination of the fair value of the tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions that are subject to change. During the measurement period, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustment will be included in the purchase price allocation retrospectively. The measurement period can extend as long as one year from the acquisition date.

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Stock Based Compensation

3 Months Ended

Mar. 28, 2014

Stock Based Compensation [Abstract]

Stock Based Compensation

9. Stock Based Compensation

During the three months ended March 28, 2014, the Company issued618,181 restricted stock units at a weighted average grant-date fair value of $5.89 per share. As of March 28, 2014, the Company had 2,223,584 restricted stock units outstanding at a weighted average grant-date fair value of $4.80 per share. As of March 28, 2014, $8.2 million of total restricted stock unit compensation expense related to unvested awards had not been recognized and is expected to be recognized over a weighted average period of approximately 2.6 years.

During the three months ended March 28, 2014, the Company issued 164,474 shares of common stock subject to vesting requirements related to the Technolab acquisition at a weighted average grant-date fair value of $6.04 per share. See Note 7 for further detail. As of March 28, 2014, the Company had 265,474 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $7.52 per share. As of March 28, 2014, $1.3 million of compensation expense related to common stock subject to vesting requirements had not been recognized and is expected to be recognized over a weighted average period of approximately 2.9 years.

On February 8, 2012, the Compensation Committee approved the fiscal year 2012 through 2015 equity compensation target for the Company’s Chief Executive Officer and Chief Operating Officer. Under this target, a single performance-based option grant was made to the Company’s Chief Executive Officer and the Chief Operating Officer of 1,912,500 options and 1,004,063 options, respectively, totaling 2,916,563 options, each with an exercise price of $4.00 and a fair value of $0.96. One-half of the options vest upon the achievement of at least 50% growth of pro forma earnings per share and the remaining half vest upon the achievement of at least 50% pro forma EBITDA growth. Each metric can be achieved at any time during the six-year term of the award based on a trailing twelve month period measured quarterly.

In March of 2013 these performance-based stock option grants were surrendered by the Company’s Chief Executive Officer and Chief Operating Officer and replaced with performance-based SARs, equal to the number of options. The terms and conditions and the specific performance targets applicable to the SARs are the same as those applicable to the replaced options, with the exception that the SARs will be settled in cash, stock or any combination thereof, at the Company’s discretion.

Although the targets for the performance-based SARs have not been achieved as of March 28, 2014, the Company recorded $0.1 million of compensation expense related to these SARs for both quarters ended March 28, 2014 and March 29, 2013.

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Stock Based Compensation (Details) (USD $)	0 Months Ended	3 Months Ended
	Feb. 08, 2012	Mar. 28, 2014	Mar. 29, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Growth of Pro-forma EPS Percentage	50.00%
Growth of Pro-forma EBITDA percentage	50.00%
Weighted average period, Common stock		2 years 10 months 24 days
Performance based stock option grant, Exercise price	$ 4.00
Total share based compensation		$ 1,268,000	$ 1,522,000
Shares subject to vesting requirements		265,474
Nonvested weighted average grant-date fair value, Common stock		$ 7.52
Compensation expense related to common stock subject to vesting requirements		1,300,000
Technolab [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expenses related to unvested restricted stock unit based awards		164,474
Shares subject to vesting requirements		6.04
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted		618,181
Weighted average grant-date fair value		$ 5.89
Weighted average period, Restricted stock units		2 years 7 months 6 days
Restricted stock units outstanding		2,223,584
Nonvested weighted average grant-date fair value		$ 4.80
Compensation expenses related to unvested restricted stock unit based awards		8,200,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value	$ 0.96
Trailing period		12 months
Performance based stock option grant	2,916,563
Term of the award		6 years
Performance Shares [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based stock option grant	1,912,500
Performance Shares [Member] | Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based stock option grant	1,004,063
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share based compensation		$ 100,000

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Net (Loss) Income Per Common Share (Tables)

3 Months Ended

Mar. 28, 2014

Net (Loss) Income Per Common Share [Abstract]

Basic And Diluted Weighted Average Shares

	Quarter Ended
	March 28,	March 29,
	2014	2013
Basic weighted average common shares outstanding	29,119,505	30,291,773
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to
vesting requirements issued to employees and non-employees	—	1,162,166
Common stock issuable upon the exercise of stock options	—	19,032
Dilutive weighted average common shares outstanding	29,119,505	31,472,971

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Net (Loss) Income Per Common Share (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Net (Loss) Income Per Common Share [Abstract]
Antidilutive common share equivalents	0.4	0.9
potentially dilutive securities	749,197

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Consolidated Statements of Operations (Parenthetical) (USD $)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	$ 1,268,000	$ 1,522,000
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	615,000	823,000
Selling General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share based compensation	$ 653,000	$ 699,000

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Accounts Receivable And Unbilled Revenue, Net

3 Months Ended

Mar. 28, 2014

Accounts Receivable And Unbilled Revenue, Net [Abstract]

Accounts Receivable And Unbilled Revenue, Net

3. Accounts Receivable and Unbilled Revenue, Net

Accounts receivable and unbilled revenue, net, consisted of the following (in thousands):

	March 28,		December 27,
	2014		2013
Accounts receivable	$	28,207	$	27,147
Unbilled revenue		10,211		8,538
Allowance for doubtful accounts		(1,507)		(1,674)
Accounts receivable and unbilled revenue, net	$	36,911	$	34,011

Accounts receivable is net of uncollected advanced billings. Unbilled revenue includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients.

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Net (Loss) Income Per Common Share (Basic And Diluted Weighted Average Shares) (Details)	3 Months Ended
	Mar. 28, 2014	Mar. 29, 2013
Net (Loss) Income Per Common Share [Abstract]
Basic weighted average common shares outstanding	29,119,505	30,291,773
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		1,162,166
Common stock issuable upon the exercise of stock options		19,032
Diluted weighted average common shares outstanding	29,119,505	31,472,971

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Geographic And Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) (USD $)	Mar. 28, 2014	Dec. 27, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 101,094,000	$ 90,341,000
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	84,661,000	74,095,000
International Primarily European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 16,433,000	$ 16,246,000

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Basis of Presentation and General Information (Policies)

3 Months Ended

Mar. 28, 2014

Basis of Presentation and General Information [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements of The Hackett Group,  Inc. (“Hackett” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. All intercompany transactions and balances have been eliminated in consolidation.

In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 27, 2013, included in the Annual Report on Form 10-K filed by the Company with the SEC. The consolidated results of operations for the quarter ended March 28, 2014, are not necessarily indicative of the results to be expected for any future period or for the full fiscal year.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value

Fair Value

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of March 28, 2014 and December 27, 2013, the carrying amount of each financial instrument, with the exception of debt, approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments.

The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates.

Business Combinations

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, that may be up to 12 months from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations.

Reclassifications

Reclassifications

Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation.