Attached files
| file | filename |
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| 8-K - Hudson Global, Inc. | v182641_8-k.htm |
| EX-99.2 - Hudson Global, Inc. | v182641_ex99-2.htm |
| EX-99.3 - Hudson Global, Inc. | v182641_ex99-3.htm |
Exhibit
99.1
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For Immediate
Release
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Contact:
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David
F. Kirby
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Hudson
Highland Group
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212-351-7216
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david.kirby@hudson.com
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Hudson
Highland Group Reports 2010
First
Quarter Financial Results
NEW YORK, NY – April 28, 2010 –
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 first quarter ended March
31, 2010.
2010
First Quarter Summary
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·
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Revenue
of $180.1 million, an increase of 9.1 percent from $165.2 million for the
first quarter of 2009, and a decrease of $2.4 million or 1.3 percent from
the fourth quarter of 2009
|
|
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·
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Gross
margin of $66.4 million, or 36.9 percent of revenue, up 7.1 percent from
$62.0 million, or 37.5 percent of revenue for the same period last year,
and a decrease of $3.0 million or 4.3 percent from the fourth quarter of
2009
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|
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·
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EBITDA*
loss of $1.4 million, or 0.8 percent of revenue, improved from an EBITDA
loss of $14.9 million for the first quarter of 2009, which included $5.8
million of restructuring charges
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|
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·
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Net
loss from continuing operations of $4.1 million, or $0.16 per basic and
diluted share, compared with net loss from continuing operations of $14.8
million, or $0.59 per basic and diluted share, for the first quarter of
2009
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|
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·
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Net loss of $4.2 million, or
$0.16 per basic and diluted share, compared with net loss of $5.6 million,
or $0.22 per basic and diluted share, for the first quarter of
2009
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*
EBITDA is defined in the segment tables at the end of this release and includes
other non-operating income.
“The
first quarter was characterized by improving economic conditions globally,
stronger than expected demand for permanent recruitment, and better
year-over-year and sequential performance from all of our regional operations”
said Jon Chait, Hudson Highland Group’s chairman and chief executive
officer.
“We are
particularly encouraged by the growth in our UK and Asian operations during the
period,” said Mary Jane Raymond, the company’s executive vice president and
chief financial officer. “In markets where demand was somewhat less robust at
this stage of the recovery, we still delivered improved profitability over the
prior year period as a result of previous cost reduction actions.”
Liquidity
and Capital Resources
At the
end of the first quarter of 2010, the company had $24.1 million in cash and
$10.5 million in borrowings under its primary credit facility and $0.9 million
in borrowings under its local credit facilities, down from $36.1 million in cash
and $10.5 million in borrowings at the end of the fourth quarter of 2009. The
primary use of cash in the first quarter was to fund the increase in temporary
contracting revenue. In addition, the company had availability as of
March 31, 2010 under its primary credit facility of $10.3 million and under
local country credit facilities of $4.8 million, for a total of $15.1 million.
Subsequent to March 31, 2010, the company raised an additional $19.2 million of
net cash proceeds from its recent public offering of common stock.
Guidance
The
company currently expects second quarter 2010 revenue of $190 - $200 million at
prevailing exchange rates and EBITDA of $1 - $4 million. This
compares with revenue of $173.8 million and an EBITDA loss of $9.5 million in
the second quarter of 2009.
Additional
Information
Additional
information about the company’s quarterly results can be found in the
shareholder letter and the quarterly 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, April 29, 2010 at 9:00
a.m. ET to discuss this announcement. Individuals wishing to listen can access
the Web cast on the investor information section of the company's Web site at
www.hudson.com.
The
archived call will be available on the investor information section of the
company's Web site at www.hudson.com.
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
approximately 2,000 professionals serving clients and candidates in
approximately 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 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 important factors, risks,
uncertainties and assumptions, including industry and economic conditions’ that
could cause actual results to differ materially from those described in the
forward-looking statements. Such factors, risks, uncertainties and assumptions
include, but are not limited to, global economic fluctuations; the ability of
clients to terminate their relationship with the company at any time; risks
in collecting the company’s accounts receivable; the company’s history of
negative cash flows and operating losses may continue; the company’s
limited borrowing availability under its credit facility, which may negatively
impact its liquidity; restrictions on the company’s operating flexibility due to
the terms of its credit facility; risks related to fluctuations in the company’s
operating results from quarter to quarter; risks related to international
operations, including foreign currency fluctuations; risks associated with the
company’s investment strategy; risks and financial impact associated with
dispositions of underperforming assets; implementation of the company’s
cost reduction initiatives effectively; 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; 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; the company’s ability to attract and retain highly skilled
professionals; volatility of the company’s stock price; the impact of
government regulations; and 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 document. The
company assumes no obligation, and expressly disclaims any obligation, 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)
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Three
Months Ended
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||||||||
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March
31,
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||||||||
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2010
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2009
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|||||||
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Revenue
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$ | 180,118 | $ | 165,150 | ||||
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Direct
costs
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113,697 | 103,146 | ||||||
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Gross
margin
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66,421 | 62,004 | ||||||
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Operating
expenses:
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||||||||
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Selling,
general and administrative expenses
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68,333 | 71,702 | ||||||
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Depreciation
and amortization
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2,287 | 3,788 | ||||||
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Business
reorganization and integration expenses
|
113 | 5,839 | ||||||
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Goodwill
and other impairment charges
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- | - | ||||||
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Total
operating expenses
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70,733 | 81,329 | ||||||
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Operating
(loss) income
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(4,312 | ) | (19,325 | ) | ||||
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Other
(expense) income:
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||||||||
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Interest,
net
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(232 | ) | (191 | ) | ||||
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Other,
net
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658 | 621 | ||||||
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(Loss)
income from continuing operations before income taxes
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(3,886 | ) | (18,895 | ) | ||||
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Provision
(benefit) for income taxes
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252 | (4,060 | ) | |||||
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(Loss)
income from continuing operations
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(4,138 | ) | (14,835 | ) | ||||
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(Loss)
income from discontinued operations, net of income taxes
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(69 | ) | 9,276 | |||||
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Net
(loss) income
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$ | (4,207 | ) | $ | (5,559 | ) | ||
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Basic
and duluted (loss) income per share:
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||||||||
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(Loss)
income from continuing operations
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$ | (0.16 | ) | $ | (0.59 | ) | ||
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(Loss)
income from discontinued operations
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- | 0.37 | ||||||
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Net
(loss) income
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$ | (0.16 | ) | $ | (0.22 | ) | ||
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Weighted
average shares outstanding:
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||||||||
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Basic
and duluted
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26,257 | 25,171 | ||||||
HUDSON
HIGHLAND GROUP, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands, except per share amounts)
(unaudited)
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March
31,
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December
31,
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|||||||
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2010
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2009
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|||||||
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$ | 24,128 | $ | 36,064 | ||||
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Accounts
receivable, net
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113,213 | 98,994 | ||||||
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Prepaid
and other
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13,752 | 13,308 | ||||||
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Total
current assets
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151,093 | 148,366 | ||||||
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Property
and equipment, net
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17,874 | 19,433 | ||||||
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Other
assets
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12,420 | 14,145 | ||||||
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Total
assets
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$ | 181,387 | $ | 181,944 | ||||
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
liabilities:
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Accounts
payable
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$ | 12,844 | $ | 12,811 | ||||
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Accrued
expenses and other current liabilities
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62,395 | 54,103 | ||||||
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Short-term
borrowings
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11,380 | 10,456 | ||||||
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Accrued
business reorganization expenses
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5,315 | 8,784 | ||||||
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Total
current liabilities
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91,934 | 86,154 | ||||||
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Other
non-current liabilities
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9,603 | 10,768 | ||||||
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Income
tax payable, non-current
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8,573 | 8,415 | ||||||
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Accrued
business reorganization expenses, non-current
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369 | 347 | ||||||
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Total
liabilities
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110,479 | 105,684 | ||||||
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Stockholders’
equity:
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Preferred
stock, $0.001 par value, 10,000 shares authorized; none issued or
outstanding
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- | - | ||||||
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Common
stock, $0.001 par value, 100,000 shares authorized; issued 27,319 and
26,836 shares, respectively
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27 | 27 | ||||||
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Additional
paid-in capital
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446,118 | 445,541 | ||||||
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Accumulated
deficit
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(407,721 | ) | (403,514 | ) | ||||
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Accumulated
other comprehensive income—translation adjustments
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32,484 | 34,509 | ||||||
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Treasury
stock, 0 and 114 shares, respectively, at cost
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- | (303 | ) | |||||
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Total
stockholders’ equity
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70,908 | 76,260 | ||||||
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Total
liabilities and stockholders' equity
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$ | 181,387 | $ | 181,944 | ||||
HUDSON
HIGHLAND GROUP, INC.
SEGMENT
ANALYSIS
(in
thousands)
(unaudited)
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For
The Three Months Ended March 31, 2010
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Hudson
Americas
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Hudson
Europe
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Hudson
ANZ
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Hudson
Asia
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Corporate
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Total
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||||||||||||||||||
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Revenue
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$ | 39,507 | $ | 76,654 | $ | 56,822 | $ | 7,135 | $ | - | $ | 180,118 | ||||||||||||
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Gross
margin
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$ | 9,279 | $ | 32,530 | $ | 17,776 | $ | 6,836 | $ | - | $ | 66,421 | ||||||||||||
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Business
reorganization and integration expenses (recovery)
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$ | 142 | $ | 87 | $ | (116 | ) | $ | - | $ | - | $ | 113 | |||||||||||
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Non-operating
expense (income), including corporate administration
charges
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(509 | ) | 1,178 | 582 | 188 | (2,097 | ) | (658 | ) | |||||||||||||||
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EBITDA
(Loss) (1)
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$ | (241 | ) | $ | 436 | $ | 249 | $ | 597 | $ | (2,408 | ) | $ | (1,367 | ) | |||||||||
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Depreciation
and amortization expenses
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2,287 | |||||||||||||||||||||||
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Interest
expense (income)
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232 | |||||||||||||||||||||||
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Provision
for (benefits from) income taxes
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252 | |||||||||||||||||||||||
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Loss
(income) from discontinued operations, net of taxes
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69 | |||||||||||||||||||||||
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Net
Income (loss)
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$ | (4,207 | ) | |||||||||||||||||||||
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For
The Three Months Ended March 31, 2009 (2)
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Hudson
Americas
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Hudson
Europe
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Hudson
ANZ
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Hudson
Asia
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Corporate
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Total
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||||||||||||||||||
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Revenue
(2)
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$ | 44,023 | $ | 66,387 | $ | 49,997 | $ | 4,743 | $ | - | $ | 165,150 | ||||||||||||
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Gross
margin
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$ | 10,962 | $ | 30,313 | $ | 16,303 | $ | 4,426 | $ | - | $ | 62,004 | ||||||||||||
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Business
reorganization and integration expenses (recovery)
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$ | 1,624 | $ | 2,338 | $ | 1,884 | $ | (7 | ) | $ | - | $ | 5,839 | |||||||||||
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Non-operating
expense (income), including corporate administration
charges
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605 | 192 | 172 | (389 | ) | (1,201 | ) | (621 | ) | |||||||||||||||
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EBITDA
(Loss) (1)
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(5,391 | ) | (3,611 | ) | (1,751 | ) | (615 | ) | (3,548 | ) | (14,916 | ) | ||||||||||||
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Depreciation
and amortization expenses
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3,788 | |||||||||||||||||||||||
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Interest
expense (income)
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191 | |||||||||||||||||||||||
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Provision
for (benefits from) income taxes
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(4,060 | ) | ||||||||||||||||||||||
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Loss
(income) from discontinued operations, net of taxes
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(9,276 | ) | ||||||||||||||||||||||
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Net
Income (loss)
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$ | (5,559 | ) | |||||||||||||||||||||
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For
the Three Months Ended June 30, 2009
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Hudson
Americas
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Hudson
Europe
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Hudson
ANZ
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Hudson
Asia
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Corporate
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Total
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Revenue
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$ | 43,133 | $ | 68,187 | $ | 56,653 | $ | 5,875 | $ | - | $ | 173,848 | ||||||||||||
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Gross
margin
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$ | 10,512 | $ | 31,280 | $ | 17,660 | $ | 5,432 | $ | - | $ | 64,884 | ||||||||||||
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Business
reorganization and integration expenses (recovery)
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$ | 1,124 | $ | 2,328 | $ | (8 | ) | $ | 104 | $ | 14 | $ | 3,562 | |||||||||||
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Goodwill
and other impairment charges (recovery)
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(120 | ) | - | - | 1,669 | - | 1,549 | |||||||||||||||||
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Non-operating
expense (income), including corporate administration
charges
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531 | 690 | (243 | ) | 168 | (1,200 | ) | (54 | ) | |||||||||||||||
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EBITDA
(Loss) (1)
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$ | (2,002 | ) | $ | (2,220 | ) | $ | 817 | $ | (2,063 | ) | $ | (4,035 | ) | $ | (9,503 | ) | |||||||
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Depreciation
and amortization expenses
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2,840 | |||||||||||||||||||||||
|
Interest
expense (income)
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182 | |||||||||||||||||||||||
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Provision
for (benefits from) income taxes
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2,975 | |||||||||||||||||||||||
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Loss
(income) from discontinued operations, net of taxes
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2,272 | |||||||||||||||||||||||
|
Net
Income (loss)
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$ | (17,771 | ) | |||||||||||||||||||||
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(1)
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Non-GAAP
earnings before interest, income taxes, 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. 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, EBITDA as
presented above may not be comparable with similarly titled measures
reported by other companies.
|
|
(2)
|
Prior
year revenue has been reclassed to conform to current year
presentation.
|