DGAP-News: Hudson Highland Group Reports 2011 Second Quarter Financial Results
ID: 451467
27.07.2011 13:00
---------------------------------------------------------------------------
NEW YORK, 2011-07-27 13:00 CEST (GLOBE NEWSWIRE) --
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, 2011.
2011 Second Quarter Summary
-- Revenue of $247.4 million, an increase of 26.9 percent over the second
quarter of 2010, or 13.8 percent in constant currency
-- Permanent recruitment remained strong, increasing 28.0 percent from the
prior year quarter, or 13.3 percent in constant currency
-- Temporary contracting revenue increased 27.2 percent in the second quarter,
or 14.8 percent in constant currency, representing the sixth consecutive
quarter of accelerating growth over the prior year period
-- Gross margin of $95.5 million, or 38.6 percent of revenue, up 28.6 percent
from the same period last year, or 14.7 percent in constant currency
-- EBITDA* of $7.7 million, or 3.1 percent of revenue, improved from $3.1
million in the second quarter of 2010
-- Net income of $4.2 million, or $0.13 per basic and diluted share, compared
with net income of $0.2 million, or $0.01 per basic and diluted share, in
the second quarter of 2010
* EBITDA is defined in the segment tables at the end of this release and
includes other non-operating income.
'Our team delivered solid year-over-year growth on the top and bottom lines in
every region of the world,' said Manuel Marquez, chairman and chief executive
officer of Hudson Highland Group. 'We experienced particular market demand
strength for our Legal and recruitment process outsourcing (RPO) solutions.
While the global economic recovery remains uncertain, the quality and
experience of our consultant base and geographic breadth should help us deliver
further financial performance gains during the second half of the year.'
'Improving net income and solid operating cash flow during the quarter reflect
productivity improvements, return on key investments and market recognition of
our service value,' added Mary Jane Raymond, the company's chief financial
officer. 'Our year-to-date results also reflect some benefits of worldwide
currency movements, though that could vary during the second half given the
global environment.'
Regional Results
Regional results for the second quarter in constant currency were:
-- Europe gross margin was up 9.7 percent, led by 10.5 percent growth in
continental Europe and 9.0 percent growth in the U.K., compared with second
quarter 2010
-- Australia/New Zealand gross margin was up 16.4 percent compared with the
prior year period, led by 27.5 percent growth in permanent recruitment
-- Americas gross margin was up 29.5 percent compared with the prior year
period, driven by 20.4 percent growth in temporary contracting and good
improvements in permanent recruitment
-- Asia gross margin was up 14.0 percent compared with second quarter 2010
Liquidity and Capital Resources
The company ended the second quarter of 2011 with $77.7 million in liquidity,
composed of $34.9 million in cash and $42.8 million in availability under its
credit facilities. The company generated $10.1 million in cashflow from
operations during the quarter and reduced its outstanding borrowings from $11.2
million at the end of the first quarter to $10.1 million at the end of the
second quarter.
Guidance
The company currently expects third quarter 2011 revenue of $230 - $240 million
and EBITDA of $5 - $7 million at prevailing exchange rates. This compares with
revenue of $200.4 million and EBITDA of $1.2 million in the third quarter of
2010.
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 Wednesday, July 27, 2011
at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen
can access the webcast 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 more
than 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; risks related to
fluctuations in the company's operating results from quarter to quarter; the
ability of clients to terminate their relationship with the company at any
time; competition in the company's markets; risks associated with the company's
investment strategy; risks related to international operations, including
foreign currency fluctuations; the company's dependence on key management
personnel; the company's ability to attract and retain highly skilled
professionals; risks in collecting the company's accounts receivable; the
company's history of negative cash flows and operating losses may continue;
restrictions on the company's operating flexibility due to the terms of its
credit facility; 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; risks related to our
dependence on uninterrupted service to clients; the company's exposure to
employment-related claims from both clients and employers and limits on related
insurance coverage; 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.
HUDSON HIGHLAND GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------------
2011 2010 2011 2010
-------------------------------------------
Revenue $ 247,378 $ 194,969 $ 465,917 $ 375,087
Direct costs 151,911 120,732 289,252 234,430
-------------------------------------------
Gross margin 95,467 74,237 176,665 140,657
-------------------------------------------
Operating expenses:
Selling, general and 87,405 71,411 166,213 139,743
administrative expenses
Depreciation and amortization 1,636 2,186 3,213 4,472
Business reorganization and 396 551 747 664
integration expenses
-------------------------------------------
Total operating expenses 89,437 74,148 170,173 144,879
-------------------------------------------
Operating income (loss) 6,030 89 6,492 (4,222)
Other (expense) income:
Interest, net (375) (243) (581) (475)
Other, net (5) 846 482 1,501
Income (loss) from continuing 5,650 692 6,393 (3,196)
operations before provision for
income taxes
Provision for income taxes 1,426 515 2,175 766
-------------------------------------------
Income (loss) from continuing 4,224 177 4,218 (3,962)
operations
Income (loss) from discontinued -- 52 -- (17)
operations, net of income taxes
-------------------------------------------
Net income (loss) $ 4,224 $ 229 $ 4,218 $ (3,979)
===========================================
Basic earnings (loss) per share:
Income (loss) from continuing $ 0.13 $ 0.01 $ 0.13 $ (0.14)
operations
Income (loss) from discontinued -- 0.00 -- (0.00)
operations
-------------------------------------------
Net income (loss) $ 0.13 $ 0.01 $ 0.13 $ (0.14)
===========================================
Diluted earnings (loss) per share:
Income (loss) from continuing $ 0.13 $ 0.01 $ 0.13 $ (0.14)
operations
Income (loss) from discontinued -- 0.00 -- (0.00)
operations
-------------------------------------------
Net income (loss) $ 0.13 $ 0.01 $ 0.13 $ (0.14)
===========================================
Weighted average shares outstanding:
Basic 31,593 30,947 31,501 28,616
Diluted 32,039 31,311 31,939 28,616
HUDSON HIGHLAND GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
June 30, December
31,
2011 2010
---------------------
ASSETS
Current assets:
Cash and cash equivalents $ 34,933 $ 29,523
Accounts receivable, net 159,383 128,576
Prepaid and other 14,973 13,988
---------------------
Total current assets 209,289 172,087
Property and equipment, net 17,095 16,593
Other assets 18,131 17,154
---------------------
Total assets $ 244,515 $ 205,834
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Other (expense) income:
Accounts payable $ 13,784 $ 14,812
Accrued expenses and other current liabilities 96,761 74,990
Short-term borrowings 10,145 1,339
Accrued business reorganization expenses 1,821 2,619
---------------------
Total current liabilities 122,511 93,760
Other non-current liabilities 10,771 10,493
Income tax payable, non-current 8,319 8,303
---------------------
Total liabilities 141,601 112,556
=====================
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; 33 32
issued 32,934 and 32,181 shares, respectively
Additional paid-in capital 469,009 466,582
Accumulated deficit (403,975) (408,199)
Accumulated other comprehensive income--translation 38,177 34,902
adjustments
Treasury stock, 58 and 9 shares, respectively, at cost (330) (39)
---------------------
Total stockholders' equity 102,914 93,278
---------------------
Total liabilities and stockholders' equity $ 244,515 $ 205,834
=====================
HUDSON HIGHLAND GROUP, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
For the Three Hudson Hudson Hudson Hudson Corporate Total
Months Ended Europe ANZ Americas Asia
June 30, 2011
--------------------------------------------------------------
Revenue, from $ 100,191 $ 86,143 $ 50,912 $ 10,132 $ -- $ 247,378
external
customers
==============================================================
Gross margin, $ 42,228 $ 30,534 $ 13,021 $ 9,684 $ -- $ 95,467
from external
customers
==============================================================
Business $ 396 $ -- $ -- $ -- $ -- $ 396
reorganization
and integration
expenses
Non-operating 2,390 1,375 678 920 (5,358) 5
expense
(income),
including
corporate
administration
charges
--------------------------------------------------------------
EBITDA (Loss) (1) $ 2,735 $ 3,037 $ 1,160 $ 773 $ (44) $ 7,661
Depreciation and1,636
amortization
expenses
Interest expense 375
(income), net
Provision for 1,426
(benefit from)
income taxes
Loss (income) from --
discontinued operations,
net of taxes
----------
Net income (loss) $ 4,224
==========
For the Three Hudson Hudson Hudson Hudson Corporate Total
Months Ended Europe ANZ Americas Asia
June 30, 2010
--------------------------------------------------------------
Revenue, from $ 80,717 $ 65,249 $ 40,819 $ 8,184 $ -- $ 194,969
external
customers
==============================================================
Gross margin, $ 34,559 $ 21,723 $ 10,039 $ 7,916 $ -- $ 74,237
from external
customers
==============================================================
Business $ 450 $ -- $ 101 $ -- $ -- $ 551
reorganization
and integration
expenses
Non-operating 1,148 1,015 393 38 (3,440) (846)
expense
(income),
including
corporate
administration
charges
--------------------------------------------------------------
EBITDA (Loss) (1) $ 2,466 $ 1,369 $ (991) $ 1,311 $ (1,034) $ 3,121
Depreciation and 2,186
amortization
expenses
Interest expense 243
(income), net
Provision for 515
(benefit from)
income taxes
Loss (income) from (52)
discontinued operations,
net of taxes----------
Net income (loss) $ 229
==========
For the Three Hudson Hudson Hudson Hudson Corporate Total
Months Ended Europe ANZ Americas Asia
September 30,
2010
--------------------------------------------------------------
Revenue, from $ 80,503 $ 72,974 $ 37,839 $ 9,078 $ -- $ 200,394
external
customers
==============================================================
Gross margin, $ 32,647 $ 24,259 $ 9,311 $ 8,774 $ -- $ 74,991
from external
customers
==============================================================
Business $ -- $ -- $ 41 $ -- $ -- $ 41
reorganization
and integration
expenses
Non-operating 3,088 1,433 (407) 478 (5,213) (621)
expense
(income),
including
corporate
administration
charges
--------------------------------------------------------------
EBITDA (Loss) (1) $ (2,128) $ 1,376 $ 532 $ 1,169 $ 244 $ 1,193
Depreciation and 1,981
amortization
expenses
Interest expense 497
(income), net
Provision for 599
(benefit from)
income taxes
Loss (income) from 14
discontinued operations,
net of taxes
----------
Net income (loss) $ (1,898)
==========
For the Three Hudson Hudson Hudson Hudson Corporate Total
Months Ended Europe ANZ Americas Asia
March 31, 2011
--------------------------------------------------------------
Revenue, from $ 93,710 $ 70,804 $ 45,812 $ 8,213 $ --$ 218,539
external
customers
==============================================================
Gross margin, $ 38,937 $ 24,019 $ 10,356 $ 7,886 $ -- $ 81,198
from external
customers
==============================================================
Business $ 351 $ -- $ -- $ -- $ -- $ 351
reorganization
and integration
expenses
Non-operating 1,610 1,045 583 91 (3,816) (487)
expense
(income),
including
corporate
administration
charges
--------------------------------------------------------------
EBITDA (Loss) (1) $ 2,175 $ 1,041 $ (379) $ 973 $ (1,284) $ 2,526
Depreciation and 1,576
amortization
expenses
Interest expense 206
(income), net
Provision for 750
(benefit from)
income taxes
Loss (income) from --
discontinued operations,
net of taxes
----------
Net income (loss) $ (6)
==========
(1) 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.
HUDSON HIGHLAND GROUP, INC.
SEGMENT ANALYSIS - YEAR TO DATE(in thousands)
(unaudited)
For the Six Hudson Hudson Hudson Hudson Corporate Total
Months Ended Europe ANZ Americas Asia
June 30, 2011
----------------------------------------------------------------
Revenue, from $ 193,901 $ 156,947 $ 96,725 $ 18,344 $ -- $ 465,917
external
customers
================================================================
Gross margin, $ 81,164 $ 54,553 $ 23,379 $ 17,569 $ -- $ 176,665
from external
customers
================================================================
Business $ 747 $ -- $ -- $ -- $ -- $ 747
reorganization
and
integration
expenses
Non-operating 4,000 2,420 1,261 1,011 (9,174) (482)
expense
(income),
including
corporate
administration
charges
----------------------------------------------------------------
EBITDA (Loss) $ 4,910 $ 4,077 $ 781 $ 1,745 $ (1,326) $ 10,187
(1)
Depreciation 3,213
and
amortization
expenses
Interest 581
expense
(income), net
Other (expense) 2,175
income:
Loss (income) --
from
discontinued
operations,
net of taxes
----------
Net income $ 4,218
(loss)
==========
For the Six Hudson Hudson Hudson Hudson Corporate TotalMonths Ended Europe ANZ Americas Asia
June 30, 2010
----------------------------------------------------------------
Revenue, from $ 157,372 $ 122,071 $ 80,325 $ 15,319 $ -- $ 375,087
external
customers
================================================================
Gross margin, $ 67,074 $ 39,499 $ 19,331 $ 14,753 $ -- $ 140,657
from external
customers
================================================================
Goodwill and $ -- $ -- $ -- $ -- $ -- $ --
other
impairment
(recovery)
Business 537 (116) 243 -- -- 664
reorganization
and
integration
expenses
Non-operating 2,326 1,597 (116) 226 (5,534) (1,501)
expense
(income),
including
corporate
administration
charges
----------------------------------------------------------------
EBITDA (Loss) $ 2,901 $ 1,617 $ (1,232) $ 1,907 $ (3,442) $ 1,751
(1)
Depreciation 4,472
and
amortization
expenses
Interest 475
expense
(income), net
Provision for 766
(benefit from)
income taxes
Loss (income) 17
from
discontinued
operations,
net of taxes
----------
Net income $ (3,979)
(loss)
==========--------------------------------------------------------------------------------
(1) 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.
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
-
HUDSON HIGHLAND GROUP, INC.
Reconciliation For Constant Currency
(in thousands)
(unaudited)
The Company operates on a global basis, with the majority of our gross margin
generated outside of the United States. Accordingly, fluctuations in foreign
currency exchange rates can affect our results of operations. Constant currency
information compares financial results between periods as if exchange rates had
remained constant period-over-period. The Company currently defines the term
'constant currency' to mean that financial data for a previously reported
period are translated into U.S. dollars using the same foreign currency
exchange rates that were used to translate financial data for the current
period.
Changes in revenue, direct costs, gross margin, and selling, general and
administrative expenses include the effect of changes in foreign currency
exchange rates. Variance analysis usually describes period-to-period variances
that are calculated using constant currency as a percentage. The Company's
management reviews and analyzes business results in constant currency and
believes these results better represent the Company's underlying business
trends.
The company believes that these calculations are a useful measure, indicating
the actual change in operations. Earnings from subsidiaries are rarely
repatriated to the United States, and there are no significant gains or losses
on foreign currency transactions between subsidiaries. Therefore, changes in
foreign currency exchange rates generally impact only reported earnings and not
the company's economic condition.
For The Three Months Ended June 30,
---------------------------------------------2011 2010
---------------------------------------------
As As Currency Constant
reported reported translatio currency
n
---------------------------------------------
Revenue:
Hudson Europe $ 100,191 $ 80,717 $ 8,585 $ 89,302
Hudson ANZ 86,143 65,249 13,203 78,452
Other (expense) income: 50,912 40,819 13 40,832
Hudson Asia 10,132 8,184 602 8,786
---------------------------------------------
Total 247,378 194,969 22,403 217,372
---------------------------------------------
Direct costs:
Hudson Europe 57,963 46,158 4,667 50,825
Hudson ANZ 55,609 43,526 8,698 52,224
Hudson Americas 37,891 30,780 -- 30,780
Hudson Asia 448 268 24 292
---------------------------------------------
Total 151,911 120,732 13,389 134,121
---------------------------------------------
Gross margin:
Hudson Europe 42,228 34,559 3,918 38,477
Hudson ANZ 30,534 21,723 4,505 26,228
Hudson Americas 13,021 10,039 13 10,052
Hudson Asia 9,684 7,916 578 8,494
---------------------------------------------
Total $ 95,467 $ 74,237 $ 9,014 $ 83,251
=============================================
Selling, general and
administrative (a):
Hudson Europe $37,180 $31,296 $3,536 $34,832
Hudson ANZ 26,803 19,883 3,952 23,835
Hudson Americas 11,358 11,223 19 11,242
Hudson Asia 8,056 6,689 466 7,155
Corporate 5,644 4,506 2 4,508
---------------------------------------------
Total $ 89,041 $ 73,597 $ 7,975 $ 81,572
=============================================
(a) Selling, general and administrative expenses include depreciation and
amortization expenses
CONTACT: David F. Kirby
Hudson Highland Group
212-351-7216
david.kirby@hudson.com
News Source: NASDAQ OMX
27.07.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Hudson Highland Group, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US4437921061
WKN:
End of Announcement DGAP News-Service
---------------------------------------------------------------------------Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
" alt="Canickel gibt Finanzergebnisse für das zweite Quartal 2011 und Arrangement einer Kreditfazilität bekanntDatum: 27.07.2011 - 13:00 Uhr
Sprache: Deutsch
News-ID 451467
Anzahl Zeichen: 52757
Kontakt-Informationen:
Kategorie:
Wirtschaft (allg.)
Diese Pressemitteilung wurde bisher 205 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Hudson Highland Group Reports 2011 Second Quarter Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Hudson Highland Group, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
