Hudson Global Announces Revised Third Quarter Revenue and Adjusted EBITDA Outlook
(Thomson Reuters ONE) -
NEW YORK, Oct. 13, 2014 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a
leading global talent solutions company, today announced that third quarter
revenue will remain flat year-over-year at $163 million, just below the range of
$165 million to $175 million that was announced on July 31, 2014, primarily due
to slower progress than expected in its more challenged markets and softer
exchange rates than the prevailing rates at the time of guidance. Lack of growth
in the top line did not allow the company to offset the selected investments
made in its core growth areas and its transition costs toward a more efficient
operating model. Adjusted EBITDA for the third quarter ended September
30, 2014, is now expected to be a loss of between $4.4 to $4.6 million, as
compared with the expected range of breakeven to a loss of $2 million that was
announced on July 31, 2014.
In the third quarter, Asia Pacific will report 15 percent gross margin growth on
a year-over-year basis, helped by 27 percent growth in China. Gross margin in
the UK and Continental Europe remained largely flat despite strong performances
in Belgium and Spain, with 15 percent and 31 percent year-over-year gross margin
growth respectively. Results in the Americas continued to lag with a 23 percent
year-over-year gross margin decline. Hudson's global RPO and Talent Management
business lines grew by 27 and 28 percent respectively year-over-year in gross
margin. (All growth rates in constant currency)
During the quarter, the company began to implement the strategic actions
identified in their engagement with AlixPartners. Hudson ceased direct
operations in Sweden, moving to a licensing agreement, eliminating year-to-date
adjusted EBITDA losses of $0.7 million, which will be reclassified as
discontinued operations. Hudson Sweden's results are included in the third
quarter results presented above. Hudson also confirmed progress towards a sale
of its eDiscovery business.
The company expects to report $47 million in liquidity, composed of $19 million
in cash and $28 million in availability under its credit facilities, as well as
$8 million in outstanding borrowings.
"Our overall third quarter adjusted EBITDA will fall below expectations.
However, we continued to demonstrate progress in gross margin growth in many of
our markets and we are advancing our strategic actions, including the sale of
our eDiscovery business, executing on the opportunities identified with
AlixPartners to drive efficiencies through the organization and investing
selectively in our core growth markets and practices," said Manuel Marquez,
chairman and chief executive officer at Hudson. "As we approach profitability,
the delivery on our targets is still highly sensitive to variations in our top
line and business mix, but we expect that the actions taken will bring
substantial improvement and help us deliver sustained value growth for our
stockholders."
Earnings Conference Call/Webcast
Hudson will release its full results for the third quarter and year-to-date on
Thursday, November 6 and conduct a conference call at 10:00 a.m. ET on that same
day to discuss the results. Individuals wishing to listen can access the webcast
on the investor information section of the company's web site at Hudson.com.
The archived call will be available on the investor information section of the
company's web site at Hudson.com.
Hudson Global Reconciliation
-------------------------------------------------------------
Q3 2014 Expected Range
$US in Millions Low High
Adjusted EBITDA $ (4.6) $ (4.4)
Business reorganization expenses 1.8 1.7
Depreciation and amortization 1.6 1.4
Fx gain/(loss) and other expenses (0.1) (0.2)
-------------------------
Operating income (loss) $ (7.9) $ (7.3)
-------------------------------------------------------------
Hudson Sweden Reconciliation
---------------------------------------------------------------
$US in Millions YTD 2014 Expected Result
Adjusted EBITDA $ (0.7)
Business reorganization expenses 0.4
Depreciation and amortization --
Fx gain/(loss) and other expenses (0.4)
---------------------------
Operating income (loss) $ (0.7)
---------------------------------------------------------------
Non-GAAP earnings before interest, income taxes, depreciation and amortization,
non-operating income, goodwill and other impairment charges, business
reorganization expenses and other expenses ("Adjusted EBITDA") is 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 this measurement to evaluate
capital needs and working capital requirements. Adjusted 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 as presented
above may not be comparable with similarly titled measures reported by other
companies.
About Hudson
Hudson is a global talent solutions company with expertise in leadership and
specialized recruitment, contracting solutions, recruitment process outsourcing,
talent management and eDiscovery. We help our clients and candidates succeed by
leveraging our expertise, deep industry and market knowledge, and proprietary
assessment tools and techniques. Operating in nearly 20 countries through
relationships with millions of specialized professionals, we bring an
unparalleled ability to match talent with opportunities by assessing,
recruiting, developing and engaging the best and brightest people for our
clients. We combine broad geographic presence, world-class talent solutions and
a tailored, consultative approach to help businesses and professionals achieve
higher performance and outstanding results. More information is available at
Hudson.com.
Forward-Looking Statements
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 company's ability to successfully achieve its
strategic initiatives, including the divestiture of its eDiscovery business;
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; the company's ability to collect accounts receivable; the
negative cash flows and operating losses that the company has experienced in
recent periods and may experience from time to time in the future; restrictions
on the company's operating flexibility due to the terms of its credit
facilities; the company's ability to achieve anticipated cost savings through
its cost reduction initiatives; the company's heavy reliance on information
systems and the impact of potentially losing or failing to develop
technology; risks related to providing uninterrupted service to clients; the
company's exposure to employment-related claims from clients, employers and
regulatory authorities, current and former employees in connection with the
company's business reorganization initiatives and limits on related insurance
coverage; the company's ability to utilize net operating loss carry-forwards;
volatility of the company's stock price; the impact of government regulations;
restrictions imposed by blocking arrangements; risks related to activist
stockholders; and risks related to limited availability under the company's
credit facilities. 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.
CONTACT: David F. Kirby
Hudson
212-351-7216
david.kirby(at)hudson.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Hudson Global, Inc. via GlobeNewswire
[HUG#1862698]
Unternehmensinformation / Kurzprofil:
Datum: 13.10.2014 - 23:00 Uhr
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News-ID 343586
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