EXECUTIVE SEARCH FIRMS NEWS

News, Events, Directory
Last Updated:
Executive Search - Executive Job Search
Executive resigns Executive appointments Power Executive Job Search Executive search firms directory Executive search news Executive search resources Executive Job Search Travel

Hudson Highland Group Reports 2009 Second Quarter Financial Results


Hudson Highland Group, Inc. (Nasdaq: HHGP), one of the world's leading providers of permanent recruitment, contract professionals and talent management solutions, today announced financial results for the second quarter ended June 30, 2009.
2009 Second Quarter Summary
--  Revenue of $173.8 million, a decrease of 42.6 percent from $303.1
        million for the second quarter of 2008, and an increase of $9.1 million
        or 5.6 percent from the first quarter of 2009
    --  Gross margin of $64.9 million, or 37.3 percent of revenue, down 51.7
        percent from $134.4 million, or 44.3 percent of revenue for the same
        period last year, and an increase of $2.9 million or 4.6 percent from
        the first quarter of 2009
    --  Adjusted EBITDA* loss of $4.4 million, or 2.6 percent of revenue, down
        from adjusted EBITDA of positive $11.4 million for the second quarter of
        2008, and an improvement from the adjusted EBITDA loss of $9.7 million
        in the first quarter of 2009
    --  EBITDA* loss of $9.6 million, down from EBITDA of positive $10.4 million
        for the same period in 2008
    --  Net loss from continuing operations of $15.5 million, or $0.59 per basic
        and diluted share, compared with net income from continuing operations
        of $1.9 million, or $0.07 per basic and diluted share, for the second
        quarter of 2008
-- Net loss of $17.8 million, or $0.68 per basic and diluted share, compared with net income of $5.0 million, or $0.20 per basic and $0.19 per diluted share, for the second quarter of 2008
*Adjusted EBITDA and EBITDA are defined in the segment tables at the end of this release.
"Despite an adverse economic environment in the second quarter, we were able to reduce our first quarter adjusted EBITDA loss by 54 percent due to aggressive cost management," said Jon Chait, Hudson Highland Group chairman and chief executive officer. "While we expect the environment to remain challenging, I believe that we have weathered the worst of the declines and there is evidence that market demand levels are beginning to stabilize."
"Our recent office restructuring actions and additional cost reductions are helping to position the company for a profitable future when the recovery takes hold," said Mary Jane Raymond, the company's executive vice president and chief financial officer. "We expect our adjusted EBITDA in the second half of 2009 to improve over the first half of the year, notwithstanding a possible seasonal decline in the third quarter. We expect cash trends to improve as well."
Restructuring Program
During the third quarter of 2009, the company expects to continue to streamline its operations in response to current economic conditions. Last quarter, the company increased the size of the 2009 restructuring plan to $11 - $16 million and expects to incur $1 - $4 million of restructuring charges during the third quarter of 2009. Second quarter restructuring expenses of $3.6 million were related to severance and lease terminations, primarily in Europe and North America.
Liquidity and Capital Resources
The company ended the second quarter of 2009 with $47.2 million in cash including $11.3 million currently borrowed under its amended credit facility, up from $46.3 million at the end of the first quarter of 2009. In addition, the company has excess availability under its amended credit facility of $6.7 million. The company received $11.6 million in April 2009 from Heidrick & Struggles for the final earn-out from the sale of Highland Partners in 2006.
Guidance
Despite recent signs of increasing stability, visibility remains low. As a result, the company will not provide formal guidance for the third quarter of 2009. The company will comment on current trends and its outlook for the third quarter on its second quarter earnings call.
Additional Information
Additional information about the company's quarterly results can be found in the shareholder letter and the second quarter earnings slides in the investor information section of the company's Web site at www.hudson.com.
Conference Call/Webcast
Hudson Highland Group will conduct a conference call Thursday, July 30, 2009 at 10:00 a.m. ET to discuss this announcement. Individuals wishing to participate can join the conference call by dialing 1-800-374-1532 followed by the participant passcode 19999263 at 9:50 a.m. ET. For those outside the United States, please call in on 1-706-634-5594 followed by the participant passcode 19999263. Hudson Highland Group's quarterly conference call can also be accessed online through Yahoo! Finance at www.yahoo.com and the investor information section of the company's Web site at www.hudson.com.
The archived call will be available for one week by dialing 1-800-642-1687 followed by the participant passcode 19999263. For those outside the United States, the call will be available on 1-706-645-9291 followed by the participant passcode 19999263.
About Hudson Highland Group
Hudson Highland Group, Inc. is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs nearly 2,500 professionals serving clients and candidates in more than 20 countries. More information is available at www.hudson.com.
Safe Harbor Statement
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including those under the caption "Guidance" and other statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors include, but are not limited to, the impact of global economic fluctuations including the current economic downturn; the ability of clients to terminate their relationship with the company at any time; risks in collecting our accounts receivable; implementation of the company's cost reduction initiatives effectively; the company's history of negative cash flows and operating losses may continue; the company's limited borrowing availability under our credit facility, which may negatively impact our liquidity; restrictions on the company's operating flexibility due to the terms of its credit facility; fluctuations in the company's operating results from quarter to quarter; risks relating to the company's international operations, including foreign currency fluctuations; risks related to our investment strategy; risks and financial impact associated with dispositions of underperforming or non-core assets; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; competition in the company's markets and the company's dependence on highly skilled professionals; the company's exposure to employment-related claims from both clients and employers and limits on related insurance coverage; the company's dependence on key management personnel; volatility of stock price; the impact of government regulations; restrictions imposed by blocking arrangements. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this letter. The company assumes no obligation, and expressly disclaims any obligation, to review or confirm analysts' expectations or estimates or to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Financial Tables Follow
HUDSON HIGHLAND GROUP, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share amounts)
                                  (unaudited)
Three Months Ended Six Months Ended June 30, June 30, -------- -------- 2009 2008 2009 2008 ---- ---- ---- ----
Revenue $173,848 $303,128 $338,539 $596,159 Direct costs 108,964 168,725 211,651 338,579 ------- ------- ------- ------- Gross margin 64,884 134,403 126,888 257,580 ------ ------- ------- ------- Operating expenses: Selling, general and administrative expenses 69,329 123,002 141,030 239,398 Depreciation and amortization 2,840 3,537 6,628 7,362 Business reorganization and integration expenses 3,562 1,024 9,401 2,216 Goodwill and other impairment charges 1,549 - 1,549 - ----- --- ----- --- Total operating expenses 77,280 127,563 158,608 248,976 ------ ------- ------- ------- Operating (loss) income (12,396) 6,840 (31,720) 8,604 Other (expense) income: Interest, net (182) 204 (372) 558 Other, net 54 1,095 674 1,358 -- ----- --- ----- (Loss) income from continuing operations before income taxes (12,524) 8,139 (31,418) 10,520 Provision (benefit) for income taxes 2,975 6,281 (1,085) 8,060 ----- ----- ------ ----- (Loss) income from continuing operations (15,499) 1,858 (30,333) 2,460 (Loss) income from discontinued operations, net of income taxes (2,272) 3,098 7,003 3,860 ------ ----- ----- ----- Net (loss) income $(17,771) $4,956 $(23,330) $6,320 ======== ====== ======== ====== Basic (loss) income per share: (Loss) income from continuing operations $(0.59) $0.07 $(1.18) $0.10 (Loss) income from discontinued operations (0.09) 0.13 0.27 0.15 ----- ---- ---- ---- Net (loss) income $(0.68) $0.20 $(0.91) $0.25 ====== ===== ====== =====
Diluted (loss) income per share: (Loss) income from continuing operations $(0.59) $0.07 $(1.18) $0.10 (Loss) income from discontinued operations (0.09) 0.12 0.27 0.15 ----- ---- ---- ---- Net (loss) income $(0.68) $0.19 $(0.91) $0.25 ====== ===== ====== =====
Weighted average shares outstanding: Basic 26,311 24,984 25,744 25,135 Diluted 26,311 25,512 25,744 25,616
HUDSON HIGHLAND GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amount) (unaudited)
June 30, December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash equivalents $47,238 $49,209 Accounts receivable, net 104,794 127,169 Prepaid and other 15,438 15,411 Current assets from discontinued operations 831 2,360 --- ----- Total current assets 168,301 194,149 Intangibles, net 971 2,498 Property and equipment, net 21,128 24,379 Other assets 13,152 9,927 Total assets $203,552 $230,953 ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $12,984 $15,693 Accrued expenses and other current liabilities 60,716 76,447 Short-term borrowings 11,348 5,307 Accrued business reorganization expenses 6,955 5,724 Current liabilities from discontinued operations 1,185 1,410 ----- ----- Total current liabilities 93,188 104,581 Other non-current liabilities 19,157 16,904 Accrued business reorganization expenses, non- current 819 1,476 --- ----- Total liabilities 113,164 122,961 Stockholders' equity: Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding - - Common stock, $0.001 par value, 100,000 shares authorized; issued 26,694 and 26,494 shares, respectively 27 26 Additional paid-in capital 445,123 450,739 Accumulated deficit (386,235) (362,905) Accumulated other comprehensive income- translation adjustments 31,756 27,054 Treasury stock, 107 and 1,140 shares, respectively, at cost (283) (6,922) ---- ------ Total stockholders' equity 90,388 107,992 ------ ------- Total liabilities and stockholders' equity $203,552 $230,953 ======== ========
HUDSON HIGHLAND GROUP, INC. SEGMENT ANALYSIS (in thousands) (unaudited)
For The Three Hudson Months Ended Hudson Hudson Asia June 30, 2009 Americas Europe Pacific Corporate Total --------- ------- -------- --------- ----- Revenue $43,133 $68,187 $62,528 $- $173,848 ======= ======= ======= == ======== Gross margin $10,512 $31,280 $23,092 $- $64,884 ------- ------- ------- -- ------- Adjusted EBITDA (1) $(495) $798 $444 $(5,192) $(4,445) Business reorganization and integration expenses 1,124 2,328 96 14 3,562 Goodwill and other impairment charges (120) - 1,669 - 1,549 ---- --- ----- --- ----- EBITDA (1) (1,499) (1,530) (1,321) (5,206) (9,556) Depreciation and amortization 1,048 1,017 745 30 2,840 ----- ----- --- -- ----- Operating (loss) income $(2,547) $(2,547) $(2,066) $(5,236) $(12,396) ======= ======= ======= ======= ========
For The Three Hudson Months Ended Hudson Hudson Asia June 30, 2008 Americas Europe Pacific Corporate Total --------- ------- -------- --------- ----- Revenue $71,507 $115,696 $115,925 $- $303,128 ======= ======== ======== == ======== Gross margin $20,186 $63,326 $50,891 $- $134,403 ------- ------- ------- -- -------- Adjusted EBITDA (1) $1,734 $9,870 $9,011 $(9,214) $11,401 Business reorganization and integration expenses 245 779 - - 1,024 Goodwill and other impairment charges - - - - - --- --- --- --- --- EBITDA (1) 1,489 9,091 9,011 (9,214) 10,377 Depreciation and amortization 1,171 1,329 984 53 3,537 ----- ----- --- -- ----- Operating income (loss) $318 $7,762 $8,027 $(9,267) $6,840 ==== ====== ====== ======= ======
(1) Non-GAAP earnings before interest, income taxes, special charges, other non-operating expense, and depreciation and amortization ("Adjusted EBITDA") and non-GAAP earnings before interest, income taxes, other non- operating expense, and depreciation and amortization ("EBITDA") are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted EBITDA and EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, adjusted EBITDA and EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
HUDSON HIGHLAND GROUP, INC. SEGMENT ANALYSIS (in thousands) (unaudited)
For The Six Hudson Months Ended Hudson Hudson Asia June 30, 2009 Americas Europe Pacific Corporate Total --------- ------- -------- --------- ----- Revenue $87,155 $134,116 $117,268 $- $338,539 ======= ======== ======== == ======== Gross margin $21,482 $61,584 $43,822 $- $126,888 ------- ------- ------- -- -------- Adjusted EBITDA (1) $(3,659) $(282) $(261) $(9,940) $(14,142) Business reorganization and integration expenses 2,747 4,666 1,974 14 9,401 Goodwill and other impairment charges (120) - 1,669 - 1,549 ---- --- ----- --- ----- EBITDA (1) (6,286) (4,948) (3,904) (9,954) (25,092) Depreciation and amortization 2,053 2,820 1,662 93 6,628 ----- ----- ----- -- ----- Operating (loss) income $(8,339) $(7,768) $(5,566) $(10,047) $(31,720) ======= ======= ======= ======== ========
For The Six Hudson Months Ended Hudson Hudson Asia June 30, 2008 Americas Europe Pacific Corporate Total --------- ------- -------- --------- ----- Revenue $154,769 $226,028 $215,362 $- $596,159 ======== ======== ======== == ======== Gross margin $42,940 $120,883 $93,757 $- $257,580 ------- -------- ------- -- -------- Adjusted EBITDA (1) $2,959 $15,583 $14,783 $(15,143) $18,182 Business reorganization and integration expenses 1,705 416 95 - 2,216 Goodwill and other impairment charges - - - - - --- --- --- --- --- EBITDA (1) 1,254 15,167 14,688 (15,143) 15,966 Depreciation and amortization 2,344 2,972 1,940 106 7,362 ----- ----- ----- --- ----- Operating (loss) income $(1,090) $12,195 $12,748 $(15,249) $8,604 ======= ======= ======= ======== ======
(1) Non-GAAP earnings before interest, income taxes, special charges, other non-operating expense, and depreciation and amortization ("Adjusted EBITDA") and non-GAAP earnings before interest, income taxes, other non- operating expense, and depreciation and amortization ("EBITDA") are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted EBITDA and EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, adjusted EBITDA and EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
Contact: David F. Kirby Hudson Highland Group 212-351-7216 david.kirby@hudson.com


Source Hudson Highland Group, Inc.

No comments:

Post a Comment

Executive Job Search Engines

what where
job title or skills city, state or zip Jobs by SimplyHired
what where
job title, keywords or company
city, state or zip jobs by job search

AESC"s SearchWire

ERE Blog Central | ERE Blog Network

NYT > Job Market

Executive Search news by Topix

Spearhead Intersearch News