HACKETT GROUP, INC. 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded under the Nasdaq Stock Market symbol, "HCKT". The closing sale price for the common stock on March 1, 2022, was $19.91. As of March 1, 2022, there were 241 holders of record of our common stock and 31,614,513 shares of common stock outstanding. Securities Authorized for Issuance under Equity Compensation Plans The information required by this section is set forth under Item 12 of this Annual Report on Form 10-K and is herein incorporated by reference. 18 Performance Graph The following graph compares our cumulative total shareholder return since January 1, 2016, with the Russell 2000 and a peer group index composed of other companies with similar business models identified below. The graph assumes that the value of the investment in our common stock and each index (including reinvestment of dividends) was $100 on January 1, 2016. 12/30/16 12/29/17 12/28/18 12/27/19 1/1/21 12/31/21 The Hackett Group, Inc. $ 100.00 $ 90.68 $ 93.81 $ 95.80 $ 88.61 $ 129.22 Russell 2000 $ 100.00 $ 114.65 $ 102.02 $ 128.06 $ 153.62 $ 176.39 2021 Peer Group $ 100.00 $ 83.52 $ 98.27 $ 121.14 $ 107.43 $ 109.41 The 2021 Peer Group includes Alithya Group Inc. (formerly known as Edgewater Technology, Inc.), Huron Consulting Group, Inc. and Information Services Group, Inc. Company Dividend Policy In December 2012, we announced an annual dividend of $0.10 per share. In 2019, 2020 and 2021, the Board of Directors approved an increase in the annual dividend to $0.36 per share, $0.38 per share, and $0.40 per share, respectively. During 2020, the Board of Directors approved the increase in the frequency of dividend payments from semi-annual to quarterly. During fiscal 2021, we paid the quarterly dividend to shareholders of record on March 26, 2021, June 25, 2021, September 24, 2021, and December 17, 2021, totaling $12.9 million. Our credit agreement contains restrictions on our ability to declare dividends and repurchase shares. Subsequent to fiscal year end, the Board of Directors increased the annual dividend to $0.44 per share and declared the first quarterly dividend of 2022. The declaration of dividends shall at all times be subject to the final determination of our Board of Directors that a dividend is prudent and lawful at that time in consideration of the needs of the business and other factors including the ability to pay dividends under our credit agreement. 19 Purchases of Equity Securities We have an ongoing authorization from our Board of Directors to repurchase shares of our common stock. The repurchase plan was first announced on July 30, 2002. Repurchases under this program are discretionary and are made in the open market or through privately negotiated transactions, subject to market conditions and trading restrictions. There is no expiration date on the current authorization. The following table summarizes our share repurchases during the year ended December 31, 2021 under this authorization: Total Number Maximum Dollar of Shares Purchased Value of Shares That Total Number Average as Part of Publicly May Yet Be Purchased of Shares Price Paid Announced Under the Period Purchased per Share Program Program Balance as of January 1, 2021 $ 4,284,275 January 2, 2021 to April 2, 2021 136,627 $ 15.45 136,627 $ 2,173,933 April 3, 2021 to July 2, 2021 489,469 $ 17.58 489,469 $ 13,570,988 * July 3, 2021 to October 1, 2021 112,550 $ 18.68 112,550 $ 11,468,188 October 2, 2021 to December 31, 2021 10,349 $ 21.64 10,349 $ 11,244,241 748,995 $ 17.41 748,995 * During the second quarter of 2021, the Company’s Board of Directors approved an additional share repurchase authorization of $20.0 million. As of December 31, 2021, the Company’s Board of Directors had approved a cumulative authorization of $167.2 million with cumulative purchases under the plan of $155.9 million, leaving $11.2 million available for future purchases. During the year ended December 31, 2021, the Company repurchased 749 thousand shares of its common stock under the repurchase plan approved by the Company's Board of Directors for $13.0 million at an average share price of $17.41, which included 24 thousand shares of the Company’s common stock from members of our Board of Directors for a total of $0.4 million, or $16.05 per share. All shares repurchased from members of the Board of Directors were approved by the Audit Committee. During the year ended January 1, 2021, the Company repurchased 184 thousand shares of its common stock under the repurchase plan approved by the Company's Board of Directors for $2.4 million at an average share price of $12.84, which included 37 thousand shares of the Company’s common stock from members of our Board of Directors for a total of $0.7 million, or $17.43 per share. Subsequent to fiscal year end, we repurchased 31 thousand shares of the Company’s common stock from members of our Board of Directors for a total of $0.6 million, or $20.50 per share. Including these subsequent purchases, we have approximately $10.6 million available for future purchases under the plan. Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations. These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on our employee’s behalf. In 2021, 1.1 million shares were withheld and not issued for a cost of $21.6 million, bringing the total cumulative cash used to repurchase stock in 2021 to $34.6 million, which includes the net settlement of the 2.9 million SARs for a cost of $19.7 million. In 2020, 139 thousand shares were withheld and not issued for a cost of $2.1 million, bringing the total cumulative cash used to repurchase stock in 2020 to $4.5 million. ITEM 6. [RESERVED] 20