Document




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): May 4, 2017
 
HUDSON GLOBAL, INC.
(Exact name of registrant as specified in charter)
 
 
Delaware
 
000-50129
 
59-3547281
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)

1325 Avenue of the Americas
New York, NY 10019
(Address of Principal Executive Offices)
 
Registrant's telephone number, including area code (212) 351-7300
N/A
(Former name or former address, if changed since last report)
 

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:

 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





ITEM 2.02.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 
On May 4, 2017, Hudson Global, Inc. issued a press release announcing its financial results for the three months ended March 31, 2017. A copy of such press release is furnished as Exhibit 99.1 to this Current Report.
 
Included in Exhibit 99.1 are references to “liquidity.” The company believes that this non-GAAP measure provides investors useful information about its combined available cash and borrowing capacity.
 
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 Global, Inc. issued on May 4, 2017.


1




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 GLOBAL, INC.
 (Registrant)
 
 
 
By:
/s/ STEPHEN A. NOLAN
 
Stephen A. Nolan
 
Chief Executive Officer
 
 
 
 
Dated:
May 4, 2017


2




Hudson Global, Inc.
Current Report on Form 8-K
 
Exhibit Index


Exhibit Number
 
Description
99.1
 
Press Release of Hudson Global, Inc. issued on May 4, 2017.



3
Exhibit



Exhibit 99.1
https://cdn.kscope.io/f1cb69766b5abafc95228f3e93152f4e-logo.jpg
    
For Immediate Release 
 
Contact:
 
David F. Kirby
 
 
 
 
Hudson
 
 
 
 
212-351-7216
 
 
 
 
david.kirby@hudson.com

Hudson Global Reports 2017 First Quarter Results


NEW YORK, NY - May 4, 2017 - Hudson Global, Inc. (Nasdaq: HSON), a leading global talent solutions company, today announced financial results for the first quarter ended March 31, 2017.

2017 First Quarter Summary

Revenue of $103.4 million increased 2.2 percent from the first quarter of 2016 and increased 5.4 percent in constant currency.

Gross margin of $42.4 million increased 2.8 percent from the first quarter of 2016 and increased 6.0 percent in constant currency.

Net loss of $1.3 million, or $0.04 per basic and diluted share, compared with net loss of $3.5 million, or $0.10 per basic and diluted share, for the first quarter of 2016.

Adjusted EBITDA* of $0.4 million, compared with an adjusted EBITDA loss of $2.0 million in the first quarter of 2016.

"We delivered solid gross margin growth in key markets around the globe, led by Belgium, Australia/New Zealand, France and the Americas," said Stephen Nolan, chief executive officer at Hudson. "We are pleased to report positive adjusted EBITDA in the first quarter for the first time since 2011, as we benefited from our focus on growth and disciplined execution in core markets and practices."
* Adjusted EBITDA and EBITDA are defined in the segment tables at the end of this release.

1



Regional Highlights

Americas

In the first quarter, Hudson Americas' gross margin increased 15 percent compared with the first quarter of 2016. RPO gross margin increased in the first quarter on continued strong demand across the client base. EBITDA was $0.3 million in the first quarter, compared with EBITDA of $0.2 million a year ago. The region delivered adjusted EBITDA of $0.3 million for the first quarter, compared with adjusted EBITDA of $0.2 million a year ago, driven by gross margin growth.

Asia Pacific

Hudson Asia Pacific's gross margin increased 3 percent in constant currency in the first quarter of 2017 compared with the same period in 2016. Gross margin growth in Australia/New Zealand of 5 percent outweighed flat results in Asia, as China stabilized and Hong Kong delivered growth in the quarter. EBITDA was a loss of $0.7 million in the first quarter, compared with an EBITDA loss of $1.2 million a year ago. Asia Pacific delivered adjusted EBITDA of $0.1 million, improving from an adjusted EBITDA loss of $0.2 million in the first quarter of 2016.

Europe

Hudson Europe's gross margin increased 7 percent in constant currency from the first quarter of 2016. Growth was driven by Continental Europe, with gross margin higher by 22 percent, with double-digit growth in Spain, France, Belgium and Poland, on strong demand in permanent recruitment, as well as talent management. In the U.K., gross margin declined 11 percent against prior year, but increased 4 percent sequentially from the fourth quarter of 2016. EBITDA was $0.9 million in the first quarter, compared with an EBITDA loss of $0.3 million a year ago. Adjusted EBITDA was $1.5 million in the first quarter of 2017, improving by $1.0 million from a year ago.


2



Liquidity and Capital Resources

The company ended the first quarter of 2017 with $29.8 million in liquidity, composed of $14.8 million in cash and $15.0 million in availability under its credit facilities. This compares with $21.3 million in cash and $18.6 million in availability under its credit facilities at the end of the fourth quarter of 2016. The company used $9.0 million in cash flow from operations during the first quarter, largely due to growing accounts receivable, up $6.5 million in the first quarter from the fourth quarter of 2016, as well as an additional, monthly contractor payroll in the U.K. that fell within the calendar quarter. This compares with $5.8 million usage of cash in the first quarter of 2016. The company had $11.3 million in outstanding borrowings at the end of the first quarter of 2017, primarily in Australia and the U.K.

Share Repurchase Program

During the first quarter, the company continued its share repurchase program which has an authorization of up to $10 million of the company’s common stock. The company purchased 277,025 shares for $0.3 million as part of the repurchase program during the first quarter. Since the inception of this program in the third quarter of 2015 through the end of the first quarter of 2017, the company has purchased 3,266,152 shares for $6.8 million.

Business Outlook

With respect to forward-looking non-GAAP measures, a reconciliation of the non-GAAP measures to the corresponding GAAP measures is not available without unreasonable efforts due to the variability, complexity and low visibility of the non-cash and other items described below that we exclude from the non-GAAP outlook measures. The variability of these items is likely to have a significant impact on our future GAAP financial results.

Given current economic conditions, the company expects second quarter 2017 revenue of between $104 million and $114 million and adjusted EBITDA of between $1 million and $3 million at prevailing exchange rates. In the second quarter of 2016, revenue was $113.1 million and adjusted EBITDA was a loss of $0.7 million. This outlook assumes an average exchange rate of 1.26 US Dollars to the British Pound, 1.07 US Dollars to the Euro and 0.75 US Dollars to the Australian Dollar.

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.

3



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 around the globe 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 maintain costs at an acceptable level; 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; 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


4



HUDSON GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Revenue
 
$
103,405

 
$
101,227

Direct costs
 
60,973

 
59,965

Gross margin
 
42,432

 
41,262

Operating expenses:
 
 

 
 

Selling, general and administrative expenses
 
42,269

 
43,642

Depreciation and amortization
 
666

 
688

Business reorganization expenses
 
222

 
637

Total operating expenses
 
43,157

 
44,967

Operating income (loss)
 
(725
)
 
(3,705
)
Non-operating income (expense):
 
 

 
 

Interest income (expense), net
 
(88
)
 
(54
)
Other income (expense), net
 
(381
)
 
(137
)
Income (loss) from continuing operation before provision for income taxes
 
(1,194
)
 
(3,896
)
Provision for (benefit from) income taxes from continuing operations
 
155

 
(326
)
Income (loss) from continuing operations
 
(1,349
)
 
(3,570
)
Income (loss) from discontinued operations, net of income taxes
 
35

 
83

Net income (loss)
 
$
(1,314
)
 
$
(3,487
)
Basic and diluted earnings (loss) per share:
 
 

 
 

Basic and diluted earnings (loss) per share from continuing operations
 
$
(0.04
)
 
$
(0.10
)
Basic and diluted earnings (loss) per share from discontinued operations
 

 

Basic and diluted earnings (loss) per share
 
$
(0.04
)
 
$
(0.10
)
Weighted-average shares outstanding:
 
 

 
 

Basic
 
32,161

 
34,631

Diluted
 
32,161

 
34,631




5



HUDSON GLOBAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
 
 
 
 
 
 
March 31,
2017
 
December 31,
2016
ASSETS
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
14,773

 
$
21,322

Accounts receivable, less allowance for doubtful accounts of $798 and $799, respectively
 
66,781

 
58,517

Prepaid and other
 
5,079

 
4,265

Current assets of discontinued operations
 
38

 
38

Total current assets
 
86,671

 
84,142

Property and equipment, net
 
7,028

 
7,041

Deferred tax assets, non-current
 
7,136

 
6,494

Other assets, non-current
 
3,784

 
4,135

Total assets
 
$
104,619

 
$
101,812

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
6,450

 
$
4,666

Accrued expenses and other current liabilities
 
34,199

 
36,154

Short-term borrowings
 
11,310

 
7,770

Accrued business reorganization expenses
 
1,636

 
1,756

Current liabilities of discontinued operations
 
137

 
233

Total current liabilities
 
53,732

 
50,579

Deferred rent and tenant improvement contributions
 
2,787

 
2,968

Income tax payable, non-current
 
2,246

 
2,211

Other non-current liabilities
 
4,019

 
4,169

Total liabilities
 
62,784

 
59,927

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 34,959 and 34,910 shares, respectively
 
34

 
34

Additional paid-in capital
 
482,456

 
482,265

Accumulated deficit
 
(441,792
)
 
(440,478
)
Accumulated other comprehensive income
 
8,338

 
6,931

Treasury stock, 3,427 and 3,145 shares, respectively, at cost
 
(7,201
)
 
(6,867
)
Total stockholders’ equity
 
41,835

 
41,885

Total liabilities and stockholders' equity
 
$
104,619

 
$
101,812



6



HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended March 31, 2017
 
Hudson
Americas
 
Hudson
Asia Pacific
 
Hudson
Europe
 
Corporate
 
Total
Revenue, from external customers
 
$
4,315

 
$
59,710

 
$
39,380

 
$

 
$
103,405

Gross margin, from external customers
 
$
3,836

 
$
19,735

 
$
18,861

 
$

 
$
42,432

Adjusted EBITDA (loss) (1)
 
$
334

 
$
121

 
$
1,493

 
$
(1,594
)
 
$
354

Business reorganization expenses (recovery)
 
(92
)
 

 
336

 
(22
)
 
222

Stock-based compensation expense
 
33

 
6

 
43

 
109

 
191

Non-operating expense (income),
including corporate administration charges
 
59

 
848

 
235

 
(761
)
 
381

EBITDA (loss) (1)
 
$
334

 
$
(733
)
 
$
879

 
$
(920
)
 
$
(440
)
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
 
666

Interest expense (income), net
 
 
 
 
 
 
 
 
 
88

Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
 
155

Income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
$
(1,349
)
Income (loss) from discontinued operations, net of income taxes
 
 
 
35

Net income (loss)
 
 
 
 
 
 
 
 
 
$
(1,314
)
 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended March 31, 2016
 
Hudson
Americas
 
Hudson
Asia Pacific
 
Hudson
Europe
 
Corporate
 
Total
Revenue, from external customers
 
$
3,837

 
$
51,071

 
$
46,319

 
$

 
$
101,227

Gross margin, from external customers
 
$
3,341

 
$
18,771

 
$
19,150

 
$

 
$
41,262

Adjusted EBITDA (loss) (1)
 
$
241

 
$
(152
)
 
$
471

 
$
(2,569
)
 
$
(2,009
)
Business reorganization expenses (recovery)
 
(16
)
 
197

 
484

 
(28
)
 
637

Stock-based compensation expense
 
28

 
80

 
44

 
219

 
371

Non-operating expense (income),
including corporate administration charges
 
67

 
802

 
273

 
(1,005
)
 
137

EBITDA (loss) (1)
 
$
162

 
$
(1,231
)
 
$
(330
)
 
$
(1,755
)
 
$
(3,154
)
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
 
688

Interest expense (income), net
 
 
 
 
 
 
 
 
 
54

Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
 
(326
)
Income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
$
(3,570
)
Income (loss) from discontinued operations, net of income taxes
 
 
 
83

Net income (loss)
 
 
 
 
 
 
 
 
 
$
(3,487
)

(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, stock-based compensation expense 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.

7



HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE (continued)
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended December 31, 2016
 
Hudson
Americas
 
Hudson
Asia Pacific
 
Hudson
Europe
 
Corporate
 
Total
Revenue, from external customers
 
$
3,901

 
$
59,122

 
$
37,291

 
$

 
$
100,314

Gross margin, from external customers
 
$
3,400

 
$
20,524

 
$
18,850

 
$

 
$
42,774

Adjusted EBITDA (loss) (1)
 
$
587

 
$
373

 
$
1,302

 
$
(1,355
)
 
$
907

Business reorganization expenses (recovery)
 
2

 
(24
)
 
606

 
32

 
616

Stock-based compensation expense
 
27

 
(4
)
 
13

 
130

 
166

Non-operating expense (income),
including corporate administration charges
 
100

 
383

 
378

 
(1,059
)
 
(198
)
EBITDA (loss) (1)
 
$
458

 
$
18

 
$
305

 
$
(458
)
 
$
323

Depreciation and amortization expenses
 
 
 
 
 
 
 
 
 
796

Interest expense (income), net
 
 
 
 
 
 
 
 
 
93

Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
 
(458
)
Income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
$
(108
)
Income (loss) from discontinued operations, net of income taxes
 
 
 
(184
)
Net income (loss)
 
 
 
 
 
 
 
 
 
$
(292
)
 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended June 30, 2016
 
Hudson
Americas
 
Hudson
Asia Pacific
 
Hudson
Europe
 
Corporate
 
Total
Revenue, from external customers
 
$
3,661

 
$
62,039

 
$
47,367

 
$

 
$
113,067

Gross margin, from external customers
 
$
3,180

 
$
22,416

 
$
21,243

 
$

 
$
46,839

Adjusted EBITDA (loss) (1)
 
$
(45
)
 
$
1,259

 
$
2,308

 
$
(4,244
)
 
$
(722
)
Business reorganization expenses (recovery)
 
(22
)
 
77

 
109

 
(20
)
 
144

Stock-based compensation expense
 
47

 
118

 
93

 
496

 
754

Non-operating expense (income),
including corporate administration charges
 
108

 
489

 
553

 
(1,137
)
 
13

EBITDA (loss) (1)
 
$
(178
)
 
$
575

 
$
1,553

 
$
(3,583
)
 
$
(1,633
)
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
 
805

Interest expense (income), net
 
 
 
 
 
 
 
 
 
101

Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
 
808

Income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
$
(3,347
)
Income (loss) from discontinued operations, net of income taxes
 
 
 
209

Net income (loss)
 
 
 
 
 
 
 
 
 
$
(3,138
)

(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, stock-based compensation expense 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.


8



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.
 
Three Months Ended March 31,
 
2017
 
2016
 
As
 
As
 
Currency
 
Constant
 
reported
 
reported
 
translation
 
currency
Revenue:
 
 
 
 
 
 
 
Hudson Americas
$
4,315

 
$
3,837

 
$
9

 
$
3,846

Hudson Asia Pacific
59,710

 
51,071

 
1,852

 
52,923

Hudson Europe
39,380

 
46,319

 
(5,006
)
 
41,313

Total
$
103,405

 
$
101,227

 
$
(3,145
)
 
$
98,082

Gross margin:
 
 
 
 
 
 
 
Hudson Americas
$
3,836

 
$
3,341

 
$
8

 
$
3,349

Hudson Asia Pacific
19,735

 
18,771

 
353

 
19,124

Hudson Europe
18,861

 
19,150

 
(1,576
)
 
17,574

Total
$
42,432

 
$
41,262

 
$
(1,215
)
 
$
40,047

SG&A (1):
 
 
 
 
 
 
 
Hudson Americas
$
3,530

 
$
3,128

 
$
9

 
$
3,137

Hudson Asia Pacific
19,563

 
18,943

 
389

 
19,332

Hudson Europe
17,472

 
18,784

 
(1,613
)
 
17,171

Corporate
1,704

 
2,787

 

 
2,787

Total
$
42,269

 
$
43,642

 
$
(1,215
)
 
$
42,427

Business reorganization expenses:
 
 
 
 
 
 
 
Hudson Americas
$
(92
)
 
$
(16
)
 
$

 
$
(16
)
Hudson Asia Pacific

 
197

 
2

 
199

Hudson Europe
336

 
484

 
(43
)
 
441

Corporate
(22
)
 
(28
)
 

 
(28
)
Total
$
222

 
$
637

 
$
(41
)
 
$
596

Operating income (loss):
 
 
 
 
 
 
 
Hudson Americas
$
392

 
$
206

 
$
(1
)
 
$
205

Hudson Asia Pacific
(313
)
 
(833
)
 
(56
)
 
(889
)
Hudson Europe
958

 
(240
)
 
107

 
(133
)
Corporate
(1,762
)
 
(2,838
)
 

 
(2,838
)
Total
$
(725
)
 
$
(3,705
)
 
$
50

 
$
(3,655
)
EBITDA (loss):
 
 
 
 
 
 
 
Hudson Americas
$
334

 
$
162

 
$

 
$
162

Hudson Asia Pacific
(726
)
 
(1,231
)
 
(55
)
 
(1,286
)
Hudson Europe
880

 
(330
)
 
82

 
(248
)
Corporate
(928
)
 
(1,755
)
 

 
(1,755
)
Total
$
(440
)
 
$
(3,154
)
 
$
27

 
$
(3,127
)

(1)
SG&A is a measure that management uses to evaluate the segments’ expenses.

9