UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 27, 2010
Hudson
Highland Group, Inc.
(Exact
name of registrant as specified in its charter)
Delaware
(State
or other jurisdiction of incorporation)
|
000-50129
|
59-3547281
|
|
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
560
Lexington Avenue
New
York, NY 10022
(Address
of Principal Executive Offices)
Registrant’s
telephone number, including area code (212) 351-7300
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
¨
|
Written communications pursuant
to Rule 425 under the Securities Act (16 CFR
230.425)
|
|
¨
|
Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (16 CFR
240.14a-12)
|
|
¨
|
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (16 CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (16 CFR
240.13e-4(c)
|
ITEM 2.02.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On
October 27, 2010, Hudson Highland Group, Inc. issued a press release announcing
its financial results for the three and nine months ended September 30,
2010. A copy of such press release is furnished as Exhibit 99.1 to this Current
Report.
Also on
October 27, 2010, Hudson Highland Group, Inc. posted on its web site a Letter to
Shareholders, Employees and Friends, which discusses results for the three
months ended September 30, 2010. A copy of such letter is furnished as
Exhibit 99.2 to this Current Report.
ITEM 9.01. FINANCIAL STATEMENTS AND
EXHIBITS.
(a)
Financial Statements.
None.
(b) Pro
Forma Financial Information.
None.
(c) Shell
Company Transactions
None.
(d)
Exhibits
|
|
99.1
|
Press Release of Hudson Highland
Group, Inc. issued on October 27,
2010.
|
|
|
99.2
|
Letter to Shareholders, Employees
and Friends issued on October 27, 2010 and posted to Company’s
website.
|
2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
HUDSON
HIGHLAND GROUP, INC.
(Registrant)
|
||
|
By:
|
/s/ Mary
Jane Raymond
|
|
|
Mary
Jane Raymond
|
||
|
Executive Vice President and
Chief
Financial Officer |
||
|
Dated:
October 27, 2010
|
||
3
Hudson
Highland Group, Inc.
Current
Report on Form 8-K
Exhibit
Index
|
Exhibit
Number
|
Description
|
|
|
99.1
|
Press
Release of Hudson Highland Group, Inc. issued on October 27,
2010.
|
|
|
99.2
|
Letter
to Shareholders, Employees and Friends issued on October 27, 2010 and
posted to Company’s website.
|
Exhibit
99.1
|
For Immediate Release
|
Contact:
|
David
F. Kirby
|
|
Hudson
Highland Group
|
||
|
212-351-7216
|
||
|
david.kirby@hudson.com
|
Hudson
Highland Group Reports
2010
Third Quarter Financial Results
NEW YORK, NY – October 27, 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 third quarter ended
September 30, 2010.
2010
Third Quarter Summary
|
|
·
|
Revenue
of $200.4 million, an increase of 18.1 percent over the third quarter of
2009, and an increase of 2.8 percent from the second quarter of
2010
|
|
|
·
|
Gross
margin of $75.0 million, or 37.4 percent of revenue, up 16.8 percent from
the same period last year, and an increase of 1.0 percent from the second
quarter of 2010
|
|
|
·
|
EBITDA* of
$1.2 million, or 0.6 percent of revenue, improved from an EBITDA loss of
$6.0 million for the third quarter of 2009, which included $2.9 million of
restructuring charges
|
|
|
·
|
Net loss of $1.9 million, or
$0.06 per basic and diluted share, compared with net loss of $6.9 million,
or $0.26 per basic and diluted share, for the third quarter of
2009
|
*
EBITDA is defined in the segment tables at the end of this release and includes
other non-operating income.
“Hudson
achieved year-over-year revenue and gross margin growth in all four of our core
regions globally during the third quarter, led by strength in permanent
recruitment in Australia, the U.K. and Asia,” said Jon Chait, Hudson Highland
Group’s chairman and chief executive officer. “Our underlying operational trends
remained positive in the third quarter, despite the negative seasonal
impact.”
“We
continue to take disciplined actions and make certain key investments to
position the company for growth,” said Mary Jane Raymond, the company’s
executive vice president and chief financial officer. “The improvements to our
capital structure in 2010 will help the company achieve its long-term
objectives.”
Regional
Results
Regional
results in constant currency were as follows:
|
|
·
|
Europe
gross margin was up 19 percent, led by 38 percent growth in the U.K.,
compared with third quarter 2009. Sequentially, Europe gross margin was
down 9 percent compared with second quarter
2010.
|
|
|
·
|
Australia/New
Zealand (ANZ) gross margin was up 19 percent compared with third quarter
2009, led by an increase of 63 percent in permanent recruitment.
Sequentially, ANZ gross margin was up 7 percent compared with second
quarter 2010.
|
|
|
·
|
Asia
gross margin was up 29 percent compared with third quarter 2009 and up 9
percent compared with second quarter
2010.
|
|
|
·
|
North
America gross margin was up slightly compared with third quarter 2009 and
down 7 percent compared with second quarter 2010, delivering positive
EBITDA for the first time this
year.
|
Liquidity
and Capital Resources
During
the third quarter, the company signed two new revolving credit facilities,
including a $40 million facility with RBS secured by receivables in the U.S. and
the U.K., and an AUD$15 million facility ($14.5 million) with Commonwealth Bank
of Australia (CBA) secured by receivables in Australia. The combination of
these new credit facilities increased the company’s availability by over $10
million.
The
company ended the third quarter of 2010 with $34.2 million in cash, and had
breakeven cash flow from operations. During the quarter, the company made
its final earn-out payment to Tony Keith Associates in China and recorded costs
associated with the new credit facilities. The company ended the quarter with
$13.9 million in borrowings under all credit facilities.
Availability
under the new RBS and CBA agreements at the end of the third quarter totaled
$26.9 million. Availability under other local country facilities is
$5.8 million for a total availability of $32.8 million.
The
company incurred termination costs related to the prior credit facility of
approximately $0.9 million, consisting of $0.6 million for early termination and
$0.3 million for unamortized costs. The latter is recorded in interest
expense.
Guidance
The
company currently expects fourth quarter 2010 revenue of $210 - $220 million and
EBITDA of $3 - $5 million at prevailing exchange rates. This compares with
revenue of $182.5 million and an EBITDA loss of $5.0 million in the fourth
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, October 28, 2010 at
10:00 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 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; 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 facilities, 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)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Revenue
|
$ | 200,394 | $ | 169,647 | $ | 575,481 | $ | 508,645 | ||||||||
|
Direct
costs
|
125,403 | 105,457 | 359,833 | 317,567 | ||||||||||||
|
Gross
margin
|
74,991 | 64,190 | 215,648 | 191,078 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Selling,
general and administrative expenses
|
74,378 | 67,412 | 214,121 | 208,442 | ||||||||||||
|
Depreciation
and amortization
|
1,981 | 2,741 | 6,453 | 9,369 | ||||||||||||
|
Business
reorganization and integration expenses
|
41 | 2,878 | 705 | 12,279 | ||||||||||||
|
Goodwill
and other impairment charges
|
- | - | - | 1,549 | ||||||||||||
|
Total
operating expenses
|
76,400 | 73,031 | 221,279 | 231,639 | ||||||||||||
|
Operating
loss
|
(1,409 | ) | (8,841 | ) | (5,631 | ) | (40,561 | ) | ||||||||
|
Other
(expense) income:
|
||||||||||||||||
|
Interest,
net
|
(497 | ) | (96 | ) | (972 | ) | (469 | ) | ||||||||
|
Other,
net
|
1,184 | 99 | 2,687 | 773 | ||||||||||||
|
Fee
for early extinguishment of credit facility
|
(563 | ) | - | (563 | ) | - | ||||||||||
|
Loss
from continuing operations before provision for income
taxes
|
(1,285 | ) | (8,838 | ) | (4,479 | ) | (40,257 | ) | ||||||||
|
Provision
for (benefit from) income taxes
|
599 | (1,215 | ) | 1,366 | (2,300 | ) | ||||||||||
|
Loss
from continuing operations
|
(1,884 | ) | (7,623 | ) | (5,845 | ) | (37,957 | ) | ||||||||
|
(Loss)
income from discontinued operations, net of income taxes
|
(14 | ) | 770 | (31 | ) | 7,773 | ||||||||||
|
Net
loss
|
$ | (1,898 | ) | $ | (6,853 | ) | $ | (5,876 | ) | $ | (30,184 | ) | ||||
|
Basic
earnings (loss) per share:
|
||||||||||||||||
|
Loss
from continuing operations
|
$ | (0.06 | ) | $ | (0.29 | ) | $ | (0.20 | ) | $ | (1.47 | ) | ||||
|
(Loss)
income from discontinued operations
|
(0.00 | ) | 0.03 | (0.00 | ) | 0.30 | ||||||||||
|
Net
loss
|
$ | (0.06 | ) | $ | (0.26 | ) | $ | (0.20 | ) | $ | (1.17 | ) | ||||
|
Diluted
earnings (loss) per share:
|
||||||||||||||||
|
Income
(loss) from continuing operations
|
$ | (0.06 | ) | $ | (0.29 | ) | $ | (0.20 | ) | $ | (1.47 | ) | ||||
|
Income
(loss) from discontinued operations
|
- | 0.03 | (0.00 | ) | 0.30 | |||||||||||
|
Net
income (loss)
|
$ | (0.06 | ) | $ | (0.26 | ) | $ | (0.20 | ) | $ | (1.17 | ) | ||||
|
Weighted
average shares outstanding:
|
||||||||||||||||
|
Basic
|
31,225 | 26,311 | 29,493 | 25,744 | ||||||||||||
|
Diluted
|
31,225 | 26,311 | 29,493 | 25,744 | ||||||||||||
HUDSON
HIGHLAND GROUP, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands, except per share amounts)
(unaudited)
|
September 30,
|
December 31,
|
|||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 34,174 | $ | 36,064 | ||||
|
Accounts
receivable, net
|
129,116 | 98,994 | ||||||
|
Prepaid
and other
|
17,463 | 13,308 | ||||||
|
Total
current assets
|
180,753 | 148,366 | ||||||
|
Property
and equipment, net
|
15,360 | 19,433 | ||||||
|
Other
assets
|
17,975 | 14,145 | ||||||
|
Total
assets
|
$ | 214,088 | $ | 181,944 | ||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 13,567 | $ | 12,811 | ||||
|
Accrued
expenses and other current liabilities
|
75,000 | 54,103 | ||||||
|
Short-term
borrowings
|
13,871 | 10,456 | ||||||
|
Accrued
business reorganization expenses
|
2,398 | 8,784 | ||||||
|
Total
current liabilities
|
104,836 | 86,154 | ||||||
|
Other
non-current liabilities
|
9,260 | 10,768 | ||||||
|
Income
tax payable, non-current
|
8,476 | 8,415 | ||||||
|
Accrued
business reorganization expenses, non-current
|
627 | 347 | ||||||
|
Total
liabilities
|
123,199 | 105,684 | ||||||
|
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 32,214 and
26,836 shares, respectively
|
32 | 27 | ||||||
|
Additional
paid-in capital
|
466,178 | 445,541 | ||||||
|
Accumulated
deficit
|
(409,390 | ) | (403,514 | ) | ||||
|
Accumulated
other comprehensive income—translation adjustments
|
34,107 | 34,509 | ||||||
|
Treasury
stock, 9 and 114 shares, respectively, at cost
|
(38 | ) | (303 | ) | ||||
|
Total
stockholders’ equity
|
90,889 | 76,260 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 214,088 | $ | 181,944 | ||||
HUDSON
HIGHLAND GROUP, INC.
SEGMENT
ANALYSIS - QUARTER TO DATE
(in
thousands)
(unaudited)
| For The Three Month Ended September 30, 2010 |
Hudson
Americas |
Hudson
Europe |
Hudson ANZ
|
Hudson Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 37,839 | $ | 80,503 | $ | 72,974 | $ | 9,078 | $ | - | $ | 200,394 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 9,311 | $ | 32,647 | $ | 24,259 | $ | 8,774 | $ | - | $ | 74,991 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 41 | $ | - | $ | - | $ | - | $ | - | $ | 41 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
(407 | ) | 3,088 | 1,433 | 478 | (5,213 | ) | (621 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
$ | 532 | $ | (2,128 | ) | $ | 1,376 | $ | 1,169 | $ | 244 | $ | 1,193 | |||||||||||
|
Depreciation
and amortization expenses
|
1,981 | |||||||||||||||||||||||
|
Interest
expense, net
|
497 | |||||||||||||||||||||||
|
Provision
for income taxes
|
599 | |||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
14 | |||||||||||||||||||||||
|
Net
income
|
$ | (1,898 | ) | |||||||||||||||||||||
|
For
The Three Month Ended September 30, 2009
|
Hudson
Americas |
Hudson
Europe |
Hudson
ANZ
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 35,705 | $ | 67,898 | $ | 59,026 | $ | 7,018 | $ | - | $ | 169,647 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 9,258 | $ | 29,571 | $ | 18,754 | $ | 6,607 | $ | - | $ | 64,190 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 592 | $ | 1,881 | $ | 405 | $ | - | $ | - | $ | 2,878 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
569 | 554 | (12 | ) | 70 | (1,280 | ) | (99 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
(2,795 | ) | (2,406 | ) | 1,156 | 961 | (2,917 | ) | (6,001 | ) | ||||||||||||||
|
Depreciation
and amortization expenses
|
2,741 | |||||||||||||||||||||||
|
Interest
expense, net
|
96 | |||||||||||||||||||||||
|
Provision
for income taxes
|
(1,215 | ) | ||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
(770 | ) | ||||||||||||||||||||||
|
Net
loss
|
$ | (6,853 | ) | |||||||||||||||||||||
|
For
the Three Months Ended December 31, 2009
|
Hudson
Americas |
Hudson
Europe |
Hudson
ANZ
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 39,010 | $ | 74,503 | $ | 61,494 | $ | 7,497 | $ | - | $ | 182,504 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 10,220 | $ | 33,005 | $ | 18,971 | $ | 7,179 | $ | - | $ | 69,375 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 1,794 | $ | 3,135 | $ | 849 | $ | - | $ | 123 | $ | 5,901 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
(936 | ) | 91 | 177 | (22 | ) | 19 | (671 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
$ | (1,162 | ) | $ | (1,552 | ) | $ | (494 | ) | $ | 1,167 | $ | (3,006 | ) | $ | (5,047 | ) | |||||||
|
Depreciation
and amortization expenses
|
3,175 | |||||||||||||||||||||||
|
Interest
expense, net
|
224 | |||||||||||||||||||||||
|
Benefit
from income taxes
|
(3,450 | ) | ||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
5,429 | |||||||||||||||||||||||
|
Net
loss
|
$ | (10,425 | ) | |||||||||||||||||||||
|
(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.
|
|
(2)
|
Prior
year revenue has been reclassed to conform to current year
presentation.
|
HUDSON
HIGHLAND GROUP, INC.
SEGMENT
ANALYSIS - YEAR TO DATE
(in
thousands)
(unaudited)
| For The Nine Months Ended September 30, 2010 |
Hudson
Americas |
Hudson
Europe |
Hudson ANZ
|
Hudson Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 118,165 | $ | 237,875 | $ | 195,045 | $ | 24,396 | $ | - | $ | 575,481 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 28,643 | $ | 99,722 | $ | 63,758 | $ | 23,525 | $ | - | $ | 215,648 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 285 | $ | 536 | $ | (116 | ) | $ | - | $ | - | $ | 705 | |||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
(523 | ) | 5,414 | 3,030 | 704 | (11,312 | ) | (2,687 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
$ | (699 | ) | $ | 771 | $ | 2,994 | $ | 3,076 | $ | (3,196 | ) | $ | 2,946 | ||||||||||
|
Depreciation
and amortization expenses
|
6,453 | |||||||||||||||||||||||
|
Interest
expense, net
|
972 | |||||||||||||||||||||||
|
Provision
for income taxes
|
1,366 | |||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
31 | |||||||||||||||||||||||
|
Net
loss
|
$ | (5,876 | ) | |||||||||||||||||||||
|
For
The Nine Months Ended September 30, 2009
|
Hudson
Americas |
Hudson
Europe |
Hudson
ANZ
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 122,861 | $ | 202,473 | $ | 165,675 | $ | 17,636 | $ | - | $ | 508,645 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 30,741 | $ | 91,155 | $ | 52,718 | $ | 16,464 | $ | - | $ | 191,078 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 3,339 | $ | 6,547 | $ | 2,281 | $ | 98 | $ | 14 | $ | 12,279 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
1,705 | 1,437 | (83 | ) | (151 | ) | (3,681 | ) | (773 | ) | ||||||||||||||
|
EBITDA
(Loss) (1)
|
(10,187 | ) | (8,236 | ) | 221 | (1,717 | ) | (10,500 | ) | (30,419 | ) | |||||||||||||
|
Depreciation
and amortization expenses
|
9,369 | |||||||||||||||||||||||
|
Interest
expense, net
|
469 | |||||||||||||||||||||||
|
Benefit
from income taxes
|
(2,300 | ) | ||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
(7,773 | ) | ||||||||||||||||||||||
|
Net
loss
|
$ | (30,184 | ) | |||||||||||||||||||||
|
(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.
|
|
(2)
|
Prior
year revenue has been reclassed to conform to current year
presentation.
|
Reconciliation
For Constant Currency
(in
thousands)
(unaudited)
The
company defines the term “constant currency” to mean that financial data for a
period are translated into U.S. Dollars using the same foreign currency exchange
rates that were used to translate monthly financial data for the previously
reported period. The company uses constant currency to depict the current period
results at the exchange rates of the prior period. Changes in revenues, 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.
|
2010
|
2009
|
||||||||||||||||
|
Currency
|
Constant
|
||||||||||||||||
|
As Reported
|
Translation
|
Currency
|
As Reported
|
||||||||||||||
|
Revenue:
|
|||||||||||||||||
|
Hudson
Americas
|
$ | 37,839 | $ | (15 | ) | $ | 37,824 | $ | 35,705 | ||||||||
|
Hudson
Europe
|
80,503 | 5,580 | 86,083 | 67,898 | |||||||||||||
|
Hudson
ANZ
|
72,974 | (5,843 | ) | 67,131 | 59,026 | ||||||||||||
|
Hudson
Asia
|
9,078 | (281 | ) | 8,797 | 7,018 | ||||||||||||
|
Total
|
200,394 | (559 | ) | 199,835 | 169,647 | ||||||||||||
|
Direct
costs:
|
|||||||||||||||||
|
Hudson
Americas
|
28,528 | - | 28,528 | 26,447 | |||||||||||||
|
Hudson
Europe
|
47,856 | 3,144 | 51,000 | 38,327 | |||||||||||||
|
Hudson
ANZ
|
48,715 | (3,901 | ) | 44,814 | 40,272 | ||||||||||||
|
Hudson
Asia
|
304 | (14 | ) | 290 | 411 | ||||||||||||
|
Total
|
125,403 | (771 | ) | 124,632 | 105,457 | ||||||||||||
|
Gross
margin:
|
|||||||||||||||||
|
Hudson
Americas
|
9,311 | (15 | ) | 9,296 | 9,258 | ||||||||||||
|
Hudson
Europe
|
32,647 | 2,436 | 35,083 | 29,571 | |||||||||||||
|
Hudson
ANZ
|
24,259 | (1,942 | ) | 22,317 | 18,754 | ||||||||||||
|
Hudson
Asia
|
8,774 | (267 | ) | 8,507 | 6,607 | ||||||||||||
|
Total
|
$ | 74,991 | $ | 212 | $ | 75,203 | $ | 64,190 | |||||||||
|
Selling,
general and administrative (1)
|
|||||||||||||||||
|
Hudson
Americas
|
$ | 9,572 | $ | (17 | ) | $ | 9,555 | $ | 11,935 | ||||||||
|
Hudson
Europe
|
32,473 | 2,435 | 34,908 | 30,456 | |||||||||||||
|
Hudson
ANZ
|
22,083 | (1,789 | ) | 20,294 | 17,775 | ||||||||||||
|
Hudson
Asia
|
7,224 | (201 | ) | 7,023 | 5,747 | ||||||||||||
|
Corporate
|
5,007 | - | 5,007 | 4,240 | |||||||||||||
|
Total
|
$ | 76,359 | $ | 428 | $ | 76,787 | $ | 70,153 | |||||||||
|
(1)
|
Selling,
general and administrative expenses include depreciation and amortization
expenses.
|
Exhibit
99.2
To:
Shareholders, Employees and Friends
Hudson
Highland Group 2010 Third Quarter Financial Results
Market/Economic
Observations
In the
first half of 2010, we saw macroeconomic improvements in most of our key
markets. Some businesses benefitted more than others, depending on their
relative strengths and exposure to the growth sectors in their markets.
Permanent placement has led this recovery, and our local management teams
capitalized on these conditions to contribute significant improvements to
company results.
During
the third quarter of 2010, we saw most of the underlying growth trends of the
first half of the year continue, though at a moderated rate. Permanent
recruitment remained strong, led by Australia/New Zealand (ANZ), the U.K. and
Asia. Temporary contracting growth was also strong in the U.K. However, many of
our other temporary contracting businesses have yet to experience a robust
recovery, including those in North America and ANZ. In continental Europe,
stronger permanent placement in Belgium and France helped offset the typical
seasonal softness, the reduction in public sector spending and the lack of
economic recovery in the Netherlands. Yet, despite these mixed factors, all four
of our reporting segments delivered revenue and gross margin growth compared
with the prior year period in the third quarter.
Consolidated
revenue was $200 million, representing 18 percent constant currency growth
compared with the third quarter of 2009. This compares with 9 percent
year-over-year growth in the second quarter of 2010. Sequentially, revenue
increased slightly compared with the second quarter, which is unusual given the
typical seasonal decline during the summer months in Europe and North America.
Hudson’s third quarter EBITDA of $1.2 million was $7.2 million better than the
same period last year.
During
the quarter, some of our regional management teams began to add
revenue-producing headcount as demand outpaced capacity. This reduced our
operating leverage from the first half, which was in excess of 100 percent on
both a reported and constant currency basis. Both our North American and
continental European operations were stronger in the last month of the quarter,
a positive sign going into the fourth quarter. For the full year, we expect our
leverage to be greater than 70 percent on a constant currency
basis.
Regional
Highlights
Europe
In the
third quarter of 2010, Hudson Europe gross margin increased 10 percent compared
with the prior year period, or 19 percent in constant currency. Gross margin
growth on a constant currency basis was led by a 38 percent increase in the
U.K., while continental Europe was relatively flat. On a sequential constant
currency basis, Europe’s gross margin was down 9 percent compared with the
second quarter, with the U.K. down slightly combined with a typical summer
decrease in continental Europe.
The U.K.
continued to produce strong competitive results in both permanent recruitment
and temporary contracting services, led by the IT and banking practices. Public
sector recruitment in the U.K. was down 25 percent in the third quarter and now
constitutes approximately 10 percent of the operation’s revenue. On October 20,
the U.K. government announced the budget for next year, featuring a broad
cutback in public expenditures. In addition to the impact on the public sector,
there is some risk of a broad negative impact on the U.K. economy and, in turn,
the staffing industry.
Our
businesses in Belgium and France both produced local currency revenue increases
compared with the prior year period due to continued strength in permanent
recruitment. Our Netherlands business, Balance, was below prior year in the
third quarter. The Netherlands market in general has not shown much recovery
from the global recession and we have faced greater competition, reduced public
sector spending and pricing pressure in our public sector niche. Intra-quarter
trends, however, were positive with several countries reporting a pick up in
September.
Hudson
Europe produced an adjusted EBITDA of $1.0 million, compared with breakeven in
the prior year period. Leverage in the quarter was negatively impacted by hiring
in both continental Europe and the U.K., an important step to diversify our
business in the region.
|
Hudson Europe
|
Q3 2010
|
Q3 2009
|
||||||
|
(In
thousands)
|
||||||||
|
Gross
margin
|
$ | 32,647 | $ | 29,571 | ||||
|
SG&A
|
31,688 | 29,542 | ||||||
|
Adj.
EBITDA
|
959 | 30 | ||||||
|
Reorganization
cost
|
(0 | ) | 1,881 | |||||
|
Non-operating
expense, including corporate administrative charges
|
3,088 | 554 | ||||||
|
EBITDA
|
(2,128 | ) | (2,406 | ) | ||||
Australia
and New Zealand
Trends
continue to improve in our ANZ business. In New Zealand, gross margin increased
sharply for the first time in eight quarters, fueled by strong demand for
permanent recruitment. Australia also saw surging demand for permanent
recruitment, supported by a relatively strong Australian economy and low
unemployment. In the third quarter, ANZ’s gross margin increased 29 percent
compared with the prior year period on a reported basis and 19 percent in
constant currency. Gross margin growth came primarily from a 63 percent constant
currency increase in permanent recruitment. Compared with the second quarter of
2010, gross margin increased 7 percent in constant currency, driven by an
improvement in both permanent recruitment and temporary contracting. The region
produced an adjusted EBITDA of $2.8 million, compared with $1.5 million in the
prior year period.
|
Hudson ANZ
|
Q3 2010
|
Q3 2009
|
||||||
|
(In
thousands)
|
||||||||
|
Gross
margin
|
$ | 24,259 | $ | 18,754 | ||||
|
SG&A
|
21,450 | 17,207 | ||||||
|
Adj.
EBITDA
|
2,809 | 1,547 | ||||||
|
Reorganization
cost
|
0 | 405 | ||||||
|
Non-operating
expense, including corporate administrative charges
|
1,433 | (12 | ) | |||||
|
EBITDA
|
1,376 | 1,156 | ||||||
Asia
In the
third quarter, our Asia business continued to capitalize on improving economic
conditions in the region. Top line results were subject to more challenging
year-over-year comparisons, as the third quarter of 2009 was the first full
quarter of recovery in Asia. Gross margin increased 29 percent from the prior
year period, and 9 percent sequentially, both on a constant currency basis.
Results benefitted from greater consultant productivity and higher average fees
per placement in all markets, but particularly in China and Singapore. The
financial services business was strong in all markets as was IT and industrials
in China. Adjusted EBITDA in the third quarter was $1.6 million, or about 18
percent of revenue, an improvement from $1.0 million, or 16 percent of revenue,
in the prior year period.
|
Hudson Asia
|
Q3 2010
|
Q3 2009
|
||||||
|
(In
thousands)
|
||||||||
|
Gross
margin
|
$ | 8,774 | $ | 6,607 | ||||
|
SG&A
|
7,127 | 5,576 | ||||||
|
Adj.
EBITDA
|
1,647 | 1,031 | ||||||
|
Reorganization
cost
|
- | - | ||||||
|
Non-operating
expense, including corporate administrative charges
|
478 | 70 | ||||||
|
EBITDA
|
1,169 | 961 | ||||||
Americas
Hudson
Americas produced stable third quarter results, though the region has yet to see
a significant recovery. Gross margin was up slightly compared with the prior
year period driven by growth in Legal and IT. This was the first quarter this
year in which North America generated a positive year-over-year top-line
comparison. Sequentially, revenue and gross margin declined 7 percent from the
second quarter, which was in line with the typical seasonal pattern. We continue
to see only modest recovery in the small and medium-sized businesses where our
Finance and IT practices have historically been strongest. Temporary contracting
gross margin percentage declined 135 basis points compared with the prior year,
due to a mix shift toward Legal, which generally has lower margins than the
Finance and IT practices.
Adjusted
EBITDA was $0.2 million, an increase of $1.8 million on a slight gross margin
increase.
|
Hudson Americas
|
Q3 2010
|
Q3 2009
|
||||||
|
(In
thousands)
|
||||||||
|
Gross
margin
|
$ | 9,311 | $ | 9,258 | ||||
|
SG&A
|
9,144 | 10,892 | ||||||
|
Adj.
EBITDA
|
167 | (1,634 | ) | |||||
|
Reorganization
cost
|
41 | 592 | ||||||
|
Non-operating
expense, including corporate administrative charges
|
(407 | ) | 569 | |||||
|
EBITDA
|
532 | (2,795 | ) | |||||
Corporate
Corporate
expenses were $5.0 million before allocations, representing an increase from
$4.2 million in the third quarter of 2009. This increase was driven primarily by
higher variable compensation expense due to higher EBITDA compared with the
prior year period. During the quarter, the company reserved $0.2 million in
connection with the discussions regarding a settlement with the SEC. Any such
settlement will depend on a number of factors described in the company's Report
on Form 10-Q for the third quarter, expected to be filed on October 29,
2010.
Liquidity
and Capital Resources
During
the third quarter, the company signed two new revolving credit facilities,
including a $40 million facility with RBS secured by receivables in the U.S. and
the U.K., and an AUD$15 million facility ($14.5 million) with Commonwealth Bank
of Australia (CBA) secured by receivables in Australia. The combination of these
new credit facilities increased the company’s availability by over $10
million.
The
company ended the third quarter of 2010 with $34.2 million in cash, and had
breakeven cash flow from operations. During the quarter, the company made its
final earn-out payment to Tony Keith Associates in China and recorded costs
associated with the new credit facilities. The company ended the quarter with
$13.9 million in borrowings under all credit facilities.
Availability
under the new RBS and CBA agreements at the end of the third quarter totaled
$26.9 million. Availability under other local country facilities is
$5.8 million for a total availability of $32.8 million.
The
company incurred termination costs related to the prior credit facility of
approximately $0.9 million, consisting of $0.6 million for early termination and
$0.3 million for unamortized costs. The latter is recorded in interest
expense.
Guidance
The
company currently expects fourth quarter 2010 revenue of $210 - $220 million and
EBITDA of $3 - $5 million at prevailing exchange rates. This compares with
revenue of $182.5 million and an EBITDA loss of $5.0 million in the fourth
quarter of 2009.
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 facilities, 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.
SEGMENT
ANALYSIS - QUARTER TO DATE
(in
thousands)
(unaudited)
|
For The Three Month Ended September 30, 2010
|
Hudson
Americas
|
Hudson
Europe
|
Hudson ANZ
|
Hudson Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 37,839 | $ | 80,503 | $ | 72,974 | $ | 9,078 | $ | - | $ | 200,394 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 9,311 | $ | 32,647 | $ | 24,259 | $ | 8,774 | $ | - | $ | 74,991 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 41 | $ | - | $ | - | $ | - | $ | - | $ | 41 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
(407 | ) | 3,088 | 1,433 | 478 | (5,213 | ) | (621 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
$ | 532 | $ | (2,128 | ) | $ | 1,376 | $ | 1,169 | $ | 244 | $ | 1,193 | |||||||||||
|
Depreciation
and amortization expenses
|
1,981 | |||||||||||||||||||||||
|
Interest
expense, net
|
497 | |||||||||||||||||||||||
|
Provision
for income taxes
|
599 | |||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
14 | |||||||||||||||||||||||
|
Net
income
|
$ | (1,898 | ) | |||||||||||||||||||||
|
For
The Three Month Ended September 30, 2009
|
Hudson
Americas |
Hudson
Europe |
Hudson
ANZ
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 35,705 | $ | 67,898 | $ | 59,026 | $ | 7,018 | $ | - | $ | 169,647 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 9,258 | $ | 29,571 | $ | 18,754 | $ | 6,607 | $ | - | $ | 64,190 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 592 | $ | 1,881 | $ | 405 | $ | - | $ | - | $ | 2,878 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
569 | 554 | (12 | ) | 70 | (1,280 | ) | (99 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
(2,795 | ) | (2,406 | ) | 1,156 | 961 | (2,917 | ) | (6,001 | ) | ||||||||||||||
|
Depreciation
and amortization expenses
|
2,741 | |||||||||||||||||||||||
|
Interest
expense, net
|
96 | |||||||||||||||||||||||
|
Provision
for income taxes
|
(1,215 | ) | ||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
(770 | ) | ||||||||||||||||||||||
|
Net
loss
|
$ | (6,853 | ) | |||||||||||||||||||||
|
For
the Three Months Ended December 31, 2009
|
Hudson
Americas |
Hudson
Europe |
Hudson
ANZ
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
|
Revenue,
from external customers
|
$ | 39,010 | $ | 74,503 | $ | 61,494 | $ | 7,497 | $ | - | $ | 182,504 | ||||||||||||
|
Gross
margin, from external customers
|
$ | 10,220 | $ | 33,005 | $ | 18,971 | $ | 7,179 | $ | - | $ | 69,375 | ||||||||||||
|
Business
reorganization and integration expenses (recovery)
|
$ | 1,794 | $ | 3,135 | $ | 849 | $ | - | $ | 123 | $ | 5,901 | ||||||||||||
|
Non-operating
expense (income), including corporate administration
charges
|
(936 | ) | 91 | 177 | (22 | ) | 19 | (671 | ) | |||||||||||||||
|
EBITDA
(Loss) (1)
|
$ | (1,162 | ) | $ | (1,552 | ) | $ | (494 | ) | $ | 1,167 | $ | (3,006 | ) | $ | (5,047 | ) | |||||||
|
Depreciation
and amortization expenses
|
3,175 | |||||||||||||||||||||||
|
Interest
expense, net
|
224 | |||||||||||||||||||||||
|
Benefit
from income taxes
|
(3,450 | ) | ||||||||||||||||||||||
|
Loss
(income) from discontinued operations, net of taxes
|
5,429 | |||||||||||||||||||||||
|
Net
loss
|
$ | (10,425 | ) | |||||||||||||||||||||
|
(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.
|
|
(2)
|
Prior
year revenue has been reclassed to conform to current year
presentation.
|
HUDSON
HIGHLAND GROUP, INC.
Reconciliation
For Constant Currency
(in
thousands)
(unaudited)
The
company defines the term “constant currency” to mean that financial data for a
period are translated into U.S. Dollars using the same foreign currency exchange
rates that were used to translate monthly financial data for the previously
reported period. The company uses constant currency to depict the current period
results at the exchange rates of the prior period. Changes in revenues, 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.
|
2010
|
2009
|
||||||||||||||||
|
Currency
|
Constant
|
||||||||||||||||
|
As Reported
|
Translation
|
Currency
|
As Reported
|
||||||||||||||
|
Revenue:
|
|||||||||||||||||
|
Hudson
Americas
|
$ | 37,839 | $ | (15 | ) | $ | 37,824 | $ | 35,705 | ||||||||
|
Hudson
Europe
|
80,503 | 5,580 | 86,083 | 67,898 | |||||||||||||
|
Hudson
ANZ
|
72,974 | (5,843 | ) | 67,131 | 59,026 | ||||||||||||
|
Hudson
Asia
|
9,078 | (281 | ) | 8,797 | 7,018 | ||||||||||||
|
Total
|
200,394 | (559 | ) | 199,835 | 169,647 | ||||||||||||
|
Direct
costs:
|
|||||||||||||||||
|
Hudson
Americas
|
28,528 | - | 28,528 | 26,447 | |||||||||||||
|
Hudson
Europe
|
47,856 | 3,144 | 51,000 | 38,327 | |||||||||||||
|
Hudson
ANZ
|
48,715 | (3,901 | ) | 44,814 | 40,272 | ||||||||||||
|
Hudson
Asia
|
304 | (14 | ) | 290 | 411 | ||||||||||||
|
Total
|
125,403 | (771 | ) | 124,632 | 105,457 | ||||||||||||
|
Gross
margin:
|
|||||||||||||||||
|
Hudson
Americas
|
9,311 | (15 | ) | 9,296 | 9,258 | ||||||||||||
|
Hudson
Europe
|
32,647 | 2,436 | 35,083 | 29,571 | |||||||||||||
|
Hudson
ANZ
|
24,259 | (1,942 | ) | 22,317 | 18,754 | ||||||||||||
|
Hudson
Asia
|
8,774 | (267 | ) | 8,507 | 6,607 | ||||||||||||
|
Total
|
$ | 74,991 | $ | 212 | $ | 75,203 | $ | 64,190 | |||||||||
|
Selling,
general and administrative (1)
|
|||||||||||||||||
|
Hudson
Americas
|
$ | 9,572 | $ | (17 | ) | $ | 9,555 | $ | 11,935 | ||||||||
|
Hudson
Europe
|
32,473 | 2,435 | 34,908 | 30,456 | |||||||||||||
|
Hudson
ANZ
|
22,083 | (1,789 | ) | 20,294 | 17,775 | ||||||||||||
|
Hudson
Asia
|
7,224 | (201 | ) | 7,023 | 5,747 | ||||||||||||
|
Corporate
|
5,007 | - | 5,007 | 4,240 | |||||||||||||
|
Total
|
$ | 76,359 | $ | 428 | $ | 76,787 | $ | 70,153 | |||||||||
|
(1)
|
Selling,
general and administrative expenses include depreciation and amortization
expenses.
|