Hudson Global Reports 2014 Fourth Quarter and Full-Year Results
(Thomson Reuters ONE) -
NEW YORK, Feb. 26, 2015 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a
leading global talent solutions company, today announced financial results for
the fourth quarter and full-year ended December 31, 2014.
2014 Fourth Quarter Summary
* Revenue of $136.7 million, a decrease of 2.4 percent from the fourth quarter
of 2013, and an increase of 2.8 percent in constant currency.
* Gross margin of $53.3 million or 39.0 percent of revenue, an increase of
0.8 percent from the same period in 2013, or 6.4 percent in constant
currency.
* Adjusted EBITDA(*) loss of $2.4 million, compared with adjusted EBITDA loss
of $2.0 million in the fourth quarter of 2013.
* Restructuring charges of $1.8 million, asset impairments of $0.7 million and
other income of $0.5 million in the fourth quarter of 2014.
* Net loss from continuing operations of $3.5 million, or $0.11 per basic and
diluted share, compared with net loss of $10.3 million, or $0.32 per basic
and diluted share, for the fourth quarter of 2013.
* Net income(**) of $2.7 million, or $0.08 per basic and diluted share,
compared with net loss of $11.3 million, or $0.35 per basic and diluted
share, for the fourth quarter of 2013.
2014 Full-Year Summary
* Revenue of $581.2 million, an increase of 3.3 percent from 2013, or 3.5
percent in constant currency.
* Gross margin of $222.8 million, or 38.3 percent of revenue, an increase of
6.4 percent from 2013, or 7.1 percent in constant currency.
* Adjusted EBITDA(*) loss of $7.5 million, compared with adjusted EBITDA loss
of $14.4 million in 2013.
* Restructuring charges of $3.8 million, asset impairments of $0.7 million and
other income of $0.2 million in 2014.
* Net loss from continuing operations of $15.8 million, or $0.48 per basic and
diluted share, compared with net loss of $30.2 million, or $0.93 per basic
and diluted share, in 2013.
* Net loss(**) of $13.2 million, or $0.40 per basic and diluted share,
compared with net loss of $30.4 million, or $0.94 per basic and diluted
share, in 2013.
* Adjusted EBITDA are defined in the segment tables at the end of this release.
** Includes continuing and discontinued operations.
"We delivered our fourth consecutive quarter of constant currency revenue and
gross margin growth," said Manolo Marquez, chairman and chief executive officer
at Hudson. "In 2014, we realized double-digit constant currency growth in
Recruitment Process Outsourcing (RPO), talent management and permanent
recruitment. We have made meaningful progress in the company's transformation,
narrowed our focus on our core business lines with the sale of Legal eDiscovery
and further strengthened our path to profitability."
Stephen Nolan, chief financial officer at Hudson said, "We are encouraged by the
growth we are experiencing in most of our key markets and the benefits of our
cost reduction actions. With strong liquidity and a focus on core markets, we
are committed to delivering positive adjusted EBITDA in 2015."
Strategic Actions
The company's strategic actions are focused on driving consistent, sustainable
growth and profitability. To accelerate the implementation of the company's
strategy, we have engaged in the following initiatives:
* Investing in the core businesses and practices that present the greatest
potential for profitable growth.
* Further improving the company's cost structure and efficiency of its support
functions and infrastructure.
* Building and differentiating the company's brand through its unique talent
solutions offerings.
During the fourth quarter, the company continued to implement its strategy
narrowing its focus on core businesses by divesting its Legal eDiscovery
business. To better align the organization model and support profitable growth
in core areas, the company continued driving cost reductions in the expense
base, particularly in support and real estate, based on the recommendations of
AlixPartners, LLP. The Hudson Board of Directors has approved restructuring
charges of up to $11.1 million to be taken by the third quarter of 2015. This
includes $4.1 million approved in December 2014 for real estate optimization
costs, including real estate related to the company's former Legal eDiscovery
business. During the fourth quarter the company incurred restructuring charges
in continuing operations totaling $1.8 million for headcount reductions
primarily in Europe and Corporate, and $2.3 million in discontinued operations
primarily related to real estate exit costs. The company expects an ongoing
annualized return of 1.5 to 2x on continuing operations charges.
The company also made investments in core markets to drive profitable growth,
expanding consultant headcount by 14 percent during 2014. The productivity of
new hires gradually increased during 2014 and is expected to continue improving
in 2015.
Regional Highlights
Americas
In the fourth quarter, Hudson Americas' gross margin increased 8 percent as
compared with the fourth quarter in 2013. This was driven by growth in RPO, up
46 percent in the fourth quarter against prior year, partially offset by a 19
percent decline in IT. The company continues to support some stranded costs
remaining in the Americas following the November 2014 sale of its eDiscovery
business, which totaled approximately $0.5 million in the fourth quarter.
Adjusted EBITDA declined to $0.1 million or 1.2 percent of revenue for the
fourth quarter, compared with $1.2 million or 10.0 percent of revenue for the
same period a year ago.
Hudson Americas' gross margin in 2014 increased 11 percent from 2013. RPO gross
margin increased by 47 percent in 2014 and is now the largest gross margin
practice in the Americas. In November 2014, the company sold its Legal
eDiscovery business for $23 million. Adjusted EBITDA was $1.4 million, or 2.9
percent of revenue, compared with $2.3 million, or 4.5 percent of revenue, in
2013.
Asia Pacific
Hudson Asia Pacific's gross margin increased 21 percent in constant currency in
the fourth quarter of 2014 from the same period in 2013. This was the fourth
consecutive quarter of year-over-year gross margin growth. Results were fueled
by permanent recruitment, up 40 percent, and RPO, up 17 percent, against the
fourth quarter of 2013. This growth was primarily realized in China and
Australia with gross margin increasing 52 percent and 16 percent, respectively,
against the prior year. Asia Pacific delivered adjusted EBITDA of $0.2 million,
or 0.3 percent of revenue, improving from adjusted EBITDA loss of $1.3 million
in the fourth quarter of 2013.
In 2014, gross margin increased 11 percent in Hudson Asia Pacific in constant
currency compared with 2013. Results were driven by 18 percent growth in
permanent recruitment, 19 percent growth in RPO and 20 percent growth in talent
management against 2013. Growth by country was led by Australia and China, up
12 percent and 33 percent, respectively, against prior year. During 2014, Hudson
invested in additional consultants, up 24 percent from 2013, with their
productivity improving throughout the year. Adjusted EBITDA was $1.9 million, or
0.8 percent of revenue, improving from adjusted EBITDA loss of $1.4 million in
2013.
Europe
During the fourth quarter of 2014, Hudson Europe's gross margin decreased 5
percent in constant currency from the fourth quarter of 2013. Continental Europe
increased 1 percent in the quarter on strength in permanent recruitment and
talent management, particularly in Belgium. This was offset by softer results in
the UK, as permanent recruitment was particularly strong a year ago. Adjusted
EBITDA of $1.8 million, or 2.8 percent of revenue, improved from $1.0 million,
or 1.3 percent of revenue, in the fourth quarter of 2013.
Hudson Europe's gross margin increased 3 percent in 2014 in constant currency
compared with 2013. Both Continental Europe and the UK delivered gross margin
growth for the year, up 5 percent and 1 percent, respectively. Growth was led by
strength in permanent recruitment, up 12 percent from 2013, and talent
management, up 8 percent. Those were offset by declines in RPO, down 21 percent
as some projects concluded, and temporary contracting, down 4 percent. The
region delivered full year adjusted EBITDA of $6.1 million, or 2.2 percent of
revenue, improved from $0.6 million, or 0.2 percent of revenue in 2013.
Liquidity and Capital Resources
The company ended the fourth quarter of 2014 with $58.0 million in liquidity,
composed of $34.0 million in cash and $24.0 million in availability under its
credit facilities. This compares with $37.4 million in cash and $29.8 million in
availability under its credit facilities at the end of 2013. The company
generated $2.9 million in cash flow from operations during the fourth quarter
and used $17.8 million in cash flow from operations for the year of 2014. The
company had no outstanding borrowings at the end of the fourth quarter of 2014.
Business Outlook
Given current economic conditions, the company expects first quarter 2015
revenue of between $115 million and $125 million and an adjusted EBITDA loss of
between $2.0 million and $4.0 million at prevailing exchange rates. This outlook
assumes an average exchange rate of 1.52 US Dollars to the British Pound, 1.13
US Dollars to the Euro and 0.78 US Dollars to the Australian Dollar. In the
first quarter of 2014, revenue was $144.2 million and adjusted EBITDA was a loss
of $1.9 million.
Conference Call/Webcast
Hudson will conduct a conference call today 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 Hudson.com.
The archived call will be available on the investor information section of the
company's web site at Hudson.com.
About Hudson
Hudson is a global talent solutions company with expertise in leadership and
specialized recruitment, recruitment process outsourcing, talent management and
contracting solutions. 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; 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; the negative cash flows and operating losses that may recur in the
future; restrictions on the company's operating flexibility due to the terms of
its credit facilities; 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 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;
and risks related to activist stockholders. 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 GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
-----------------------------------------------
2014 2013 2014 2013
-----------------------------------------------
Revenue $ 136,677 $ 139,999 $ 581,192 $ 562,572
Direct costs 83,421 87,161 358,347 353,143
-----------------------------------------------
Gross margin 53,256 52,838 222,845 209,429
Operating expenses:
Selling, general and
administrative expenses 55,649 54,845 230,321 223,877
Depreciation and amortization 1,317 1,461 5,559 5,922
Business reorganization
expenses 1,763 1,637 3,789 5,440
Office integration expense and
(gains) on disposal of business - - - 6
Impairment of long-lived assets 662 1,336 662 1,336
-----------------------------------------------
Total operating expenses 59,391 59,279 240,331 236,581
-----------------------------------------------
Operating income (loss) (6,135) (6,441) (17,486) (27,152)
Non-operating income (expense):
Interest income (expense), net (128) (132) (661) (554)
Other income (expense), net 528 285 202 759
-----------------------------------------------
Income (loss) before provision
for income taxes from
continuing operations (5,735) (6,288) (17,945) (26,947)
Provision for (benefit from)
income taxes (2,196) 4,039 (2,159) 3,264
-----------------------------------------------
Income (loss) from continuing
operations (3,539) (10,327) (15,786) (30,211)
Income (loss) from discontinued
operations, net of income taxes 6,282 (969) 2,592 (184)
-----------------------------------------------
Net income (loss) $ 2,743 $ (11,296) $ (13,194) $ (30,395)
-----------------------------------------------
Earnings (loss) per share:
Basic and diluted
Income (loss) from continuing
operations $ (0.11) $ (0.32) $ (0.48) $ (0.93)
Income (loss) from discontinued
operations 0.19 (0.03) 0.08 (0.01)
-----------------------------------------------
Net income (loss) $ 0.08 $ (0.35) $ (0.40) $ (0.94)
-----------------------------------------------
Weighted-average shares
outstanding:
Basic and diluted 32,995 32,600 32,843 32,493
Note: Certain prior year amounts have been reclassified to conform to the
current period presentation.
HUDSON GLOBAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
December 31, December 31,
2014 2013
--------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 33,989 $ 37,378
Accounts receivable, less allowance for doubtful
accounts of $986 and $1,041, respectively 74,079 76,467
Prepaid and other 9,604 7,960
Current assets of discontinued operations 1,249 12,518
--------------------------
Total current assets 118,921 134,323
Property and equipment, net 9,840 11,989
Deferred tax assets, non-current 5,648 7,124
Other assets 5,263 5,393
--------------------------
Total assets $ 139,672 $ 158,829
--------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,371 $ 8,899
Accrued expenses and other current liabilities 54,065 51,917
Short-term borrowings - 476
Accrued business reorganization expenses 3,169 3,275
Current liabilities of discontinued operations 3,512 5,251
--------------------------
Total current liabilities 67,117 69,818
Deferred rent and tenant improvement contributions 5,899 5,333
Income tax payable, non-current 2,397 3,872
Other non-current liabilities 5,002 5,421
--------------------------
Total liabilities 80,415 84,444
--------------------------
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 33,671 and 33,543 shares,
respectively 34 34
Additional paid-in capital 476,689 475,461
Accumulated deficit (430,616) (417,422)
Accumulated other comprehensive income 13,613 17,173
Treasury stock, 129 and 211 shares, respectively, at
cost (463) (861)
--------------------------
Total stockholders' equity 59,257 74,385
--------------------------
Total liabilities and stockholders' equity $ 139,672 $ 158,829
--------------------------
HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
For The Three Hudson Hudson Hudson
Months Ended Americas Asia Pacific Europe Corporate Total
December 31, 2014
------------------------------------------------------------
Revenue, from
external customers $ 11,709 $ 58,351 $ 66,617 $ - $ 136,677
------------------------------------------------------------
Gross margin, from
external customers $ 5,293 $ 22,930 $ 25,033 $ - $ 53,256
------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ (138) $ 186 $ 1,840 $ (4,280) $ (2,392)
Business
reorganization
expenses
(recovery) - 67 963 733 1,763
Impairment of
long-lived assets - 314 348 - 662
Non-operating
expense (income),
including
corporate
administration
charges (579) 62 1,224 (1,234) (526)
------------------------------------------------------------
EBITDA (loss) (1) $ 441 $ (257) $ (695) $ (3,779) $ (4,290)
Depreciation and
amortization
expenses 1,317
Interest expense
(income), net 128
Provision for
(benefit from)
income taxes (2,196)
---------------
Income (loss) from
continuing
operations (3,539)
Income (loss) from
discontinued
operations, net of
income taxes 6,282
---------------
Net income (loss) $ 2,743
---------------
For The Three Hudson Hudson Hudson
Months Ended Americas Asia Pacific Europe Corporate Total
December 31, 2013
------------------------------------------------------------
Revenue, from
external customers $ 12,348 $ 55,404 $ 72,247 $ - $ 139,999
------------------------------------------------------------
Gross margin, from
external customers $ 4,894 $ 20,044 $ 27,900 $ - $ 52,838
------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ 1,235 $ (1,271) $ 953 $ (2,924) $ (2,007)
Business
reorganization
expenses
(recovery) 88 887 635 27 1,637
Impairment of
long-lived assets - 257 1,079 - 1,336
Non-operating
expense (income),
including
corporate
administration
charges 715 43 1,470 (2,514) (286)
------------------------------------------------------------
EBITDA (loss) (1) $ 432 $ (2,458) $ (2,231) $ (437) $ (4,694)
Depreciation and
amortization
expenses 1,461
Interest expense
(income), net 132
Provision for
(benefit from)
income taxes 4,039
---------------
Income (loss) from
continuing
operations (10,327)
Income (loss) from
discontinued
operations, net of
income taxes (969)
---------------
Net income (loss) $ (11,296)
---------------
1. Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and 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") 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 and 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, EBITDA and adjusted EBITDA as
presented above may not be comparable with similarly titled measures reported
by other companies.
HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE (continued)
(in thousands)
(unaudited)
For The Three Hudson Hudson Hudson
Months Ended Americas Asia Pacific Europe Corporate Total
September 30, 2014
------------------------------------------------------------
Revenue, from
external customers $ 13,036 $ 66,990 $ 69,252 $ - $ 149,278
------------------------------------------------------------
Gross margin, from
external customers $ 5,570 $ 24,654 $ 25,463 $ - $ 55,687
------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ 738 $ 616 $ (288) $ (3,917) $ (2,851)
Business
reorganization
expenses
(recovery) - 140 421 234 795
Non-operating
expense (income),
including
corporate
administration
charges 705 227 1,583 (2,692) (177)
------------------------------------------------------------
EBITDA (loss) (1) $ 33 $ 249 $ (2,292) $ (1,459) $ (3,469)
Depreciation and
amortization
expenses 1,467
Interest expense
(income), net 192
Provision for
(benefit from)
income taxes (558)
---------------
Income (loss) from
continuing
operations (4,570)
Income (loss) from
discontinued
operations, net of
income taxes (2,452)
---------------
Net income (loss) $ (7,022)
---------------
For The Three Hudson Hudson Hudson
Months Ended March Americas Asia Pacific Europe Corporate Total
31, 2014
------------------------------------------------------------
Revenue, from
external customers $ 12,244 $ 56,430 $ 75,493 $ - $ 144,167
------------------------------------------------------------
Gross margin, from
external customers $ 4,502 $ 20,911 $ 28,616 $ - $ 54,029
------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ 4 $ 110 $ 1,884 $ (3,888) $ (1,890)
Business
reorganization
expenses
(recovery) 91 - 23 - 114
Non-operating
expense (income),
including
corporate
administration
charges 370 414 1,173 (1,761) 196
------------------------------------------------------------
EBITDA (loss) (1) $ (457) $ (304) $ 688 $ (2,127) $ (2,200)
Depreciation and
amortization
expenses 1,371
Interest expense
(income), net 139
Provision for
(benefit from)
income taxes 402
---------------
Income (loss) from
continuing
operations (4,112)
Income (loss) from
discontinued
operations, net of
income taxes (432)
---------------
Net income (loss) $ (4,544)
---------------
1. Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and 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") 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 and 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, EBITDA and adjusted EBITDA as
presented above may not be comparable with similarly titled measures reported
by other companies.
HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - YEAR TO DATE
(in thousands)
(unaudited)
For The Year Hudson Hudson Hudson
Ended December Americas Asia Pacific Europe Corporate Total
31, 2014
-------------------------------------------------------------
Revenue, from
external
customers $ 50,146 $ 246,873 $ 284,173 $ - $ 581,192
-------------------------------------------------------------
Gross margin,
from external
customers $ 20,757 $ 93,014 $ 109,074 $ - $ 222,845
-------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ 1,446 $ 1,908 $ 6,114 $ (16,946) $ (7,478)
Business
reorganization
expenses
(recovery) 94 1,322 1,407 966 3,789
Impairment of
long-lived assets - 314 348 - 662
Non-operating
expense (income),
including
corporate
administration
charges 1,235 1,162 5,546 (8,147) (204)
-------------------------------------------------------------
EBITDA (loss) (1) $ 117 $ (890) $ (1,187) $ (9,765) $ (11,725)
Depreciation and
amortization
expenses 5,559
Interest expense
(income), net 661
Provision for
(benefit from)
income taxes (2,159)
---------------
Income (loss)
from continuing
operations (15,786)
Income (loss)
from discontinued
operations, net
of income taxes 2,592
---------------
Net income (loss) $ (13,194)
---------------
For The Year Hudson Hudson Hudson
Ended December Americas Asia Pacific Europe Corporate Total
31, 2013
-------------------------------------------------------------
Revenue, from
external
customers $ 51,857 $ 232,748 $ 277,967 $ - $ 562,572
-------------------------------------------------------------
Gross margin,
from external
customers $ 18,692 $ 87,162 $ 103,575 $ - $ 209,429
-------------------------------------------------------------
Adjusted EBITDA
(loss) (1) $ 2,315 $ (1,446) $ 634 $ (15,952) $ (14,449)
Business
reorganization
expenses
(recovery) 448 989 3,214 789 5,440
Impairment of
long-lived assets - 257 1,079 - 1,336
Office
integration
expense and
(gains) on
disposal of
business 6 - - - 6
Non-operating
expense (income),
including
corporate
administration
charges 2,578 535 5,538 (9,411) (760)
-------------------------------------------------------------
EBITDA (loss) (1) $ (717) $ (3,227) $ (9,197) $ (7,330) $ (20,471)
Depreciation and
amortization
expenses 5,922
Interest expense
(income), net 554
Provision for
(benefit from)
income taxes 3,264
---------------
Income (loss)
from continuing
operations (30,211)
Income (loss)
from discontinued
operations, net
of income taxes (184)
---------------
Net income (loss) $ (30,395)
---------------
1. Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and 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") 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 and 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, EBITDA and adjusted EBITDA as
presented above may not be comparable with similarly titled measures reported
by other companies.
HUDSON GLOBAL, INC.
RECONCILIATION FOR CONSTANT CURRENCY
(in thousands)
(unaudited)
The company operates on a global basis, with the majority of its gross margin
generated outside of the United States. Accordingly, fluctuations in foreign
currency exchange rates can affect its 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, gross margin, selling, general and
administrative expenses ("SG&A"), business reorganization expenses and other
non-operating income (expense), operating income (loss) and EBITDA (loss)
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. 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.
For The Three Months Ended December 31,
2014 2013
------------------------------------------------------
As As Currency Constant
reported reported translation currency
------------------------------------------------------
Revenue:
Hudson Americas $ 11,709 $ 12,348 $ (17) $ 12,331
Hudson Asia Pacific 58,351 55,404 (3,701) 51,703
Hudson Europe 66,617 72,247 (3,276) 68,971
------------------------------------------------------
Total $ 136,677 $ 139,999 $ (6,994) $ 133,005
------------------------------------------------------
Gross margin:
Hudson Americas $ 5,293 $ 4,894 $ (16) $ 4,878
Hudson Asia Pacific 22,930 20,044 (1,131) 18,913
Hudson Europe 25,033 27,900 (1,647) 26,253
------------------------------------------------------
Total $ 53,256 $ 52,838 $ (2,794) $ 50,044
------------------------------------------------------
SG&A (1):
Hudson Americas $ 5,430 $ 3,658 $ (15) $ 3,643
Hudson Asia Pacific 22,728 21,318 (1,144) 20,174
Hudson Europe 23,211 26,947 (1,551) 25,396
Corporate 4,280 2,922 1 2,923
------------------------------------------------------
Total $ 55,649 $ 54,845 $ (2,709) $ 52,136
------------------------------------------------------
Business reorganization
expenses:
Hudson Americas $ - $ 88 $ - $ 88
Hudson Asia Pacific 67 887 (63) 824
Hudson Europe 963 635 (53) 582
Corporate 733 27 1 28
------------------------------------------------------
Total $ 1,763 $ 1,637 $ (115) $ 1,522
------------------------------------------------------
Operating income (loss):
Hudson Americas $ (261) $ 1,027 $ - $ 1,027
Hudson Asia Pacific (1,017) (3,192) 136 (3,056)
Hudson Europe 288 (1,164) 37 (1,127)
Corporate (5,144) (3,112) - (3,112)
------------------------------------------------------
Total $ (6,134) $ (6,441) $ 173 $ (6,268)
------------------------------------------------------
EBITDA (loss):
Hudson Americas $ 441 $ 432 $ 9 $ 441
Hudson Asia Pacific (257) (2,458) 69 (2,389)
Hudson Europe (695) (2,231) 155 (2,076)
Corporate (3,779) (437) (4) (441)
------------------------------------------------------
Total $ (4,290) $ (4,694) $ 229 $ (4,465)
------------------------------------------------------
Note: Certain prior year amounts have been reclassified to conform to the
current period presentation.
1. SG&A and other non-operating income (expense) is a measure that management
uses to evaluate the segments' expenses.
HUDSON GLOBAL, INC.
RECONCILIATION FOR CONSTANT CURRENCY (continued)
(in thousands)
(unaudited)
For The Year Ended December 31,
2014 2013
--------------------------------------------------------
As As Currency Constant
reported reported translation currency
--------------------------------------------------------
Revenue:
Hudson Americas $ 50,146 $ 51,857 $ (67) $ 51,790
Hudson Asia Pacific 246,873 232,748 (10,321) 222,427
Hudson Europe 284,173 277,967 9,109 287,076
--------------------------------------------------------
Total $ 581,192 $ 562,572 $ (1,279) $ 561,293
--------------------------------------------------------
Gross margin:
Hudson Americas $ 20,757 $ 18,692 $ (63) $ 18,629
Hudson Asia Pacific 93,014 87,162 (3,352) 83,810
Hudson Europe 109,074 103,575 2,144 105,719
--------------------------------------------------------
Total $ 222,845 $ 209,429 $ (1,271) $ 208,158
--------------------------------------------------------
SG&A (1):
Hudson Americas $ 19,343 $ 16,374 $ (58) $ 16,316
Hudson Asia Pacific 90,962 88,537 (3,462) 85,075
Hudson Europe 103,068 103,027 2,045 105,072
Corporate 16,948 15,939 2 15,941
--------------------------------------------------------
Total $ 230,321 $ 223,877 $ (1,473) $ 222,404
--------------------------------------------------------
Business
reorganization
expenses:
Hudson Americas $ 94 $ 448 $ - $ 448
Hudson Asia Pacific 1,322 989 (72) 917
Hudson Europe 1,407 3,214 92 3,306
Corporate 966 789 (1) 788
--------------------------------------------------------
Total $ 3,789 $ 5,440 $ 19 $ 5,459
--------------------------------------------------------
Operating income
(loss):
Hudson Americas $ 870 $ 1,367 $ (5) $ 1,362
Hudson Asia Pacific (3,013) (5,883) 353 (5,530)
Hudson Europe 3,112 (5,251) 18 (5,233)
Corporate (18,455) (17,385) (2) (17,387)
--------------------------------------------------------
Total $ (17,486) $ (27,152) $ 364 $ (26,788)
--------------------------------------------------------
EBITDA (loss):
Hudson Americas $ 117 $ (717) $ 15 $ (702)
Hudson Asia Pacific (890) (3,227) 171 (3,056)
Hudson Europe (1,187) (9,197) (55) (9,252)
Corporate (9,765) (7,330) (5) (7,335)
--------------------------------------------------------
Total $ (11,725) $ (20,471) $ 126 $ (20,345)
--------------------------------------------------------
Note: Certain prior year amounts have been reclassified to conform to the
current period presentation.
1. SG&A and other non-operating income (expense) is a measure that management
uses to evaluate the segments' expenses.
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#1897501]
Unternehmensinformation / Kurzprofil:
Datum: 26.02.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 374597
Anzahl Zeichen: 54549
contact information:
Town:
NEW YORK
Kategorie:
Business News
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