000-50129
|
59-3547281
|
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
¨
|
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.
|
ITEM 9.01.
|
FINANCIAL STATEMENTS AND EXHIBITS.
|
99.1
|
|
Press Release of Hudson Highland Group, Inc. issued on July 27, 2011.
|
99.2
|
|
Letter to Shareholders issued on July 27, 2011 and posted to the Company’s website.
|
HUDSON HIGHLAND GROUP, INC.
(Registrant)
|
|||
By:
|
/s/ MARY JANE RAYMOND
|
||
Mary Jane Raymond
|
|||
Executive Vice President and Chief Financial Officer
|
|||
Dated: July 27, 2011
|
Exhibit
Number
|
Description
|
|
99.1
|
Press Release of Hudson Highland Group, Inc. issued on July 27, 2011.
|
|
99.2
|
Letter to Shareholders issued on July 27, 2011 and posted to Company’s website.
|
|
For Immediate Release
|
Contact: David F. Kirby
|
|
Hudson Highland Group
|
||
212-351-7216
|
||
david.kirby@hudson.com
|
·
|
Revenue of $247.4 million, an increase of 26.9 percent over the second quarter of 2010, or 13.8 percent in constant currency
|
·
|
Permanent recruitment remained strong, increasing 28.0 percent from the prior year quarter, or 13.3 percent in constant currency
|
·
|
Temporary contracting revenue increased 27.2 percent in the second quarter, or 14.8 percent in constant currency, representing the sixth consecutive quarter of accelerating growth over the prior year period
|
·
|
Gross margin of $95.5 million, or 38.6 percent of revenue, up 28.6 percent from the same period last year, or 14.7 percent in constant currency
|
·
|
EBITDA* of $7.7 million, or 3.1 percent of revenue, improved from $3.1 million in the second quarter of 2010
|
·
|
Net income of $4.2 million, or $0.13 per basic and diluted share, compared with net income of $0.2 million, or $0.01 per basic and diluted share, in the second quarter of 2010
|
·
|
Europe gross margin was up 9.7 percent, led by 10.5 percent growth in continental Europe and 9.0 percent growth in the U.K., compared with second quarter 2010
|
·
|
Australia/New Zealand gross margin was up 16.4 percent compared with the prior year period, led by 27.5 percent growth in permanent recruitment
|
·
|
Americas gross margin was up 29.5 percent compared with the prior year period, driven by 20.4 percent growth in temporary contracting and good improvements in permanent recruitment
|
·
|
Asia gross margin was up 14.0 percent compared with second quarter 2010
|
HUDSON HIGHLAND GROUP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share amounts)
|
(unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenue
|
$ | 247,378 | $ | 194,969 | $ | 465,917 | $ | 375,087 | ||||||||
Direct costs
|
151,911 | 120,732 | 289,252 | 234,430 | ||||||||||||
Gross margin
|
95,467 | 74,237 | 176,665 | 140,657 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative expenses
|
87,405 | 71,411 | 166,213 | 139,743 | ||||||||||||
Depreciation and amortization
|
1,636 | 2,186 | 3,213 | 4,472 | ||||||||||||
Business reorganization and integration expenses
|
396 | 551 | 747 | 664 | ||||||||||||
Total operating expenses
|
89,437 | 74,148 | 170,173 | 144,879 | ||||||||||||
Operating income (loss)
|
6,030 | 89 | 6,492 | (4,222 | ) | |||||||||||
Other (expense) income:
|
||||||||||||||||
Interest, net
|
(375 | ) | (243 | ) | (581 | ) | (475 | ) | ||||||||
Other, net
|
(5 | ) | 846 | 482 | 1,501 | |||||||||||
Income (loss) from continuing operations before provision for income taxes
|
5,650 | 692 | 6,393 | (3,196 | ) | |||||||||||
Provision for income taxes
|
1,426 | 515 | 2,175 | 766 | ||||||||||||
Income (loss) from continuing operations
|
4,224 | 177 | 4,218 | (3,962 | ) | |||||||||||
Income (loss) from discontinued operations, net of income taxes
|
- | 52 | - | (17 | ) | |||||||||||
Net income (loss)
|
$ | 4,224 | $ | 229 | $ | 4,218 | $ | (3,979 | ) | |||||||
Basic earnings (loss) per share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.13 | $ | 0.01 | $ | 0.13 | $ | (0.14 | ) | |||||||
Income (loss) from discontinued operations
|
- | 0.00 | - | (0.00 | ) | |||||||||||
Net income (loss)
|
$ | 0.13 | $ | 0.01 | $ | 0.13 | $ | (0.14 | ) | |||||||
Diluted earnings (loss) per share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.13 | $ | 0.01 | $ | 0.13 | $ | (0.14 | ) | |||||||
Income (loss) from discontinued operations
|
- | 0.00 | - | (0.00 | ) | |||||||||||
Net income (loss)
|
$ | 0.13 | $ | 0.01 | $ | 0.13 | $ | (0.14 | ) | |||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
31,593 | 30,947 | 31,501 | 28,616 | ||||||||||||
Diluted
|
32,039 | 31,311 | 31,939 | 28,616 |
HUDSON HIGHLAND GROUP, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except per share amounts)
|
(unaudited)
|
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 34,933 | $ | 29,523 | ||||
Accounts receivable, net
|
159,383 | 128,576 | ||||||
Prepaid and other
|
14,973 | 13,988 | ||||||
Total current assets
|
209,289 | 172,087 | ||||||
Property and equipment, net
|
17,095 | 16,593 | ||||||
Other assets
|
18,131 | 17,154 | ||||||
Total assets
|
$ | 244,515 | $ | 205,834 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Other (expense) income:
|
||||||||
Accounts payable
|
$ | 13,784 | $ | 14,812 | ||||
Accrued expenses and other current liabilities
|
96,761 | 74,990 | ||||||
Short-term borrowings
|
10,145 | 1,339 | ||||||
Accrued business reorganization expenses
|
1,821 | 2,619 | ||||||
Total current liabilities
|
122,511 | 93,760 | ||||||
Other non-current liabilities
|
10,771 | 10,493 | ||||||
Income tax payable, non-current
|
8,319 | 8,303 | ||||||
Total liabilities
|
141,601 | 112,556 | ||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding
|
- | - | ||||||
Common stock, $0.001 par value, 100,000 shares authorized; issued 32,934 and 32,181 shares, respectively
|
33 | 32 | ||||||
Additional paid-in capital
|
469,009 | 466,582 | ||||||
Accumulated deficit
|
(403,975 | ) | (408,199 | ) | ||||
Accumulated other comprehensive income—translation adjustments
|
38,177 | 34,902 | ||||||
Treasury stock, 58 and 9 shares, respectively, at cost
|
(330 | ) | (39 | ) | ||||
Total stockholders’ equity
|
102,914 | 93,278 | ||||||
Total liabilities and stockholders’ equity
|
$ | 244,515 | $ | 205,834 |
HUDSON HIGHLAND GROUP, INC.
|
SEGMENT ANALYSIS - QUARTER TO DATE
|
(in thousands)
|
(unaudited)
|
For the Three Months Ended June 30, 2011
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 100,191 | $ | 86,143 | $ | 50,912 | $ | 10,132 | $ | - | $ | 247,378 | ||||||||||||
Gross margin, from external customers
|
$ | 42,228 | $ | 30,534 | $ | 13,021 | $ | 9,684 | $ | - | $ | 95,467 | ||||||||||||
Business reorganization and integration expenses
|
$ | 396 | $ | - | $ | - | $ | - | $ | - | $ | 396 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
2,390 | 1,375 | 678 | 920 | (5,358 | ) | 5 | |||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,735 | $ | 3,037 | $ | 1,160 | $ | 773 | $ | (44 | ) | $ | 7,661 | |||||||||||
Depreciation and amortization expenses
|
1,636 | |||||||||||||||||||||||
Interest expense (income), net
|
375 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
1,426 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
- | |||||||||||||||||||||||
Net income (loss)
|
$ | 4,224 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
For the Three Months Ended June 30, 2010
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 80,717 | $ | 65,249 | $ | 40,819 | $ | 8,184 | $ | - | $ | 194,969 | ||||||||||||
Gross margin, from external customers
|
$ | 34,559 | $ | 21,723 | $ | 10,039 | $ | 7,916 | $ | - | $ | 74,237 | ||||||||||||
Business reorganization and integration expenses
|
$ | 450 | $ | - | $ | 101 | $ | - | $ | - | $ | 551 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
1,148 | 1,015 | 393 | 38 | (3,440 | ) | (846 | ) | ||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,466 | $ | 1,369 | $ | (991 | ) | $ | 1,311 | $ | (1,034 | ) | $ | 3,121 | ||||||||||
Depreciation and amortization expenses
|
2,186 | |||||||||||||||||||||||
Interest expense (income), net
|
243 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
515 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
(52 | ) | ||||||||||||||||||||||
Net income (loss)
|
$ | 229 | ||||||||||||||||||||||
For the Three Months Ended September 30, 2010
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 80,503 | $ | 72,974 | $ | 37,839 | $ | 9,078 | $ | - | $ | 200,394 | ||||||||||||
Gross margin, from external customers
|
$ | 32,647 | $ | 24,259 | $ | 9,311 | $ | 8,774 | $ | - | $ | 74,991 | ||||||||||||
Business reorganization and integration expenses
|
$ | - | $ | - | $ | 41 | $ | - | $ | - | $ | 41 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
3,088 | 1,433 | (407 | ) | 478 | (5,213 | ) | (621 | ) | |||||||||||||||
EBITDA (Loss) (1)
|
$ | (2,128 | ) | $ | 1,376 | $ | 532 | $ | 1,169 | $ | 244 | $ | 1,193 | |||||||||||
Depreciation and amortization expenses
|
1,981 | |||||||||||||||||||||||
Interest expense (income), net
|
497 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
599 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
14 | |||||||||||||||||||||||
Net income (loss)
|
$ | (1,898 | ) | |||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 93,710 | $ | 70,804 | $ | 45,812 | $ | 8,213 | $ | - | $ | 218,539 | ||||||||||||
Gross margin, from external customers
|
$ | 38,937 | $ | 24,019 | $ | 10,356 | $ | 7,886 | $ | - | $ | 81,198 | ||||||||||||
Business reorganization and integration expenses
|
$ | 351 | $ | - | $ | - | $ | - | $ | - | $ | 351 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
1,610 | 1,045 | 583 | 91 | (3,816 | ) | (487 | ) | ||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,175 | $ | 1,041 | $ | (379 | ) | $ | 973 | $ | (1,284 | ) | $ | 2,526 | ||||||||||
Depreciation and amortization expenses
|
1,576 | |||||||||||||||||||||||
Interest expense (income), net
|
206 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
750 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
- | |||||||||||||||||||||||
Net income (loss)
|
$ | (6 | ) |
(1)
|
Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) are presented to provide additional information about the company’s operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company’s profitability or liquidity. Furthermore, EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
|
HUDSON HIGHLAND GROUP, INC.
|
SEGMENT ANALYSIS - YEAR TO DATE
|
(in thousands)
|
(unaudited)
|
For the Six Months Ended June 30, 2011
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 193,901 | $ | 156,947 | $ | 96,725 | $ | 18,344 | $ | - | $ | 465,917 | ||||||||||||
Gross margin, from external customers
|
$ | 81,164 | $ | 54,553 | $ | 23,379 | $ | 17,569 | $ | - | $ | 176,665 | ||||||||||||
Business reorganization and integration expenses
|
$ | 747 | $ | - | $ | - | $ | - | $ | - | $ | 747 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
4,000 | 2,420 | 1,261 | 1,011 | (9,174 | ) | (482 | ) | ||||||||||||||||
EBITDA (Loss) (1)
|
$ | 4,910 | $ | 4,077 | $ | 781 | $ | 1,745 | $ | (1,326 | ) | $ | 10,187 | |||||||||||
Depreciation and amortization expenses
|
3,213 | |||||||||||||||||||||||
Interest expense (income), net
|
581 | |||||||||||||||||||||||
Other (expense) income:
|
2,175 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
- | |||||||||||||||||||||||
Net income (loss)
|
$ | 4,218 | ||||||||||||||||||||||
For the Six Months Ended June 30, 2010
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 157,372 | $ | 122,071 | $ | 80,325 | $ | 15,319 | $ | - | $ | 375,087 | ||||||||||||
Gross margin, from external customers
|
$ | 67,074 | $ | 39,499 | $ | 19,331 | $ | 14,753 | $ | - | $ | 140,657 | ||||||||||||
Goodwill and other impairment (recovery)
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Business reorganization and integration expenses
|
537 | (116 | ) | 243 | - | - | 664 | |||||||||||||||||
Non-operating expense (income), including corporate administration charges
|
2,326 | 1,597 | (116 | ) | 226 | (5,534 | ) | (1,501 | ) | |||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,901 | $ | 1,617 | $ | (1,232 | ) | $ | 1,907 | $ | (3,442 | ) | $ | 1,751 | ||||||||||
Depreciation and amortization expenses
|
4,472 | |||||||||||||||||||||||
Interest expense (income), net
|
475 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
766 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
17 | |||||||||||||||||||||||
Net income (loss)
|
$ | (3,979 | ) |
(1)
|
Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) are presented to provide additional information about the company’s operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company’s profitability or liquidity. Furthermore, EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
|
HUDSON HIGHLAND GROUP, INC.
|
Reconciliation For Constant Currency
|
(in thousands)
|
(unaudited)
|
For The Three Months Ended June 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Currency
|
Constant
|
|||||||||||||||
As reported
|
As reported
|
translation
|
currency
|
|||||||||||||
Revenue:
|
||||||||||||||||
Hudson Europe
|
$ | 100,191 | $ | 80,717 | $ | 8,585 | $ | 89,302 | ||||||||
Hudson ANZ
|
86,143 | 65,249 | 13,203 | 78,452 | ||||||||||||
Other (expense) income:
|
50,912 | 40,819 | 13 | 40,832 | ||||||||||||
Hudson Asia
|
10,132 | 8,184 | 602 | 8,786 | ||||||||||||
Total
|
247,378 | 194,969 | 22,403 | 217,372 | ||||||||||||
Direct costs:
|
||||||||||||||||
Hudson Europe
|
57,963 | 46,158 | 4,667 | 50,825 | ||||||||||||
Hudson ANZ
|
55,609 | 43,526 | 8,698 | 52,224 | ||||||||||||
Hudson Americas
|
37,891 | 30,780 | - | 30,780 | ||||||||||||
Hudson Asia
|
448 | 268 | 24 | 292 | ||||||||||||
Total
|
151,911 | 120,732 | 13,389 | 134,121 | ||||||||||||
Gross margin:
|
||||||||||||||||
Hudson Europe
|
42,228 | 34,559 | 3,918 | 38,477 | ||||||||||||
Hudson ANZ
|
30,534 | 21,723 | 4,505 | 26,228 | ||||||||||||
Hudson Americas
|
13,021 | 10,039 | 13 | 10,052 | ||||||||||||
Hudson Asia
|
9,684 | 7,916 | 578 | 8,494 | ||||||||||||
Total
|
$ | 95,467 | $ | 74,237 | $ | 9,014 | $ | 83,251 | ||||||||
Selling, general and administrative (a):
|
||||||||||||||||
Hudson Europe
|
$ | 37,180 | $ | 31,296 | $ | 3,536 | $ | 34,832 | ||||||||
Hudson ANZ
|
26,803 | 19,883 | 3,952 | 23,835 | ||||||||||||
Hudson Americas
|
11,358 | 11,223 | 19 | 11,242 | ||||||||||||
Hudson Asia
|
8,056 | 6,689 | 466 | 7,155 | ||||||||||||
Corporate
|
5,644 | 4,506 | 2 | 4,508 | ||||||||||||
Total
|
$ | 89,041 | $ | 73,597 | $ | 7,975 | $ | 81,572 |
Hudson Europe
|
Q2 2011 | Q2 2010 | ||||||
(In thousands)
|
||||||||
Gross margin
|
$ | 42,228 | $ | 34,559 | ||||
SG&A
|
36,707 | 30,495 | ||||||
Adj. EBITDA
|
5,521 | 4,064 | ||||||
Reorganization Cost
|
396 | 450 | ||||||
Non-operating expense (income), incl.
|
||||||||
corporate administrative charges
|
2,390 | 1,148 | ||||||
EBITDA
|
2,735 | 2,466 |
Hudson ANZ
|
Q2 2011 | Q2 2010 | ||||||
(In thousands)
|
||||||||
Gross margin
|
$ | 30,534 | $ | 21,723 | ||||
SG&A
|
26,122 | 19,339 | ||||||
Adj. EBITDA
|
4,412 | 2,384 | ||||||
Reorganization Cost
|
||||||||
Non-operating expense (income), incl.
|
||||||||
corporate administrative charges
|
1,375 | 1,015 | ||||||
EBITDA
|
3,037 | 1,369 |
Hudson Asia
|
Q2 2011 | Q2 2010 | ||||||
(In thousands)
|
||||||||
Gross margin
|
$ | 9,684 | $ | 7,916 | ||||
SG&A
|
7,991 | 6,567 | ||||||
Adj. EBITDA
|
1,693 | 1,349 | ||||||
Reorganization Cost
|
||||||||
Non-operating expense (income), incl.
|
||||||||
corporate administrative charges
|
920 | 38 | ||||||
EBITDA
|
773 | 1,311 |
Hudson Americas
|
Q2 2011 | Q2 2010 | ||||||
(In thousands)
|
||||||||
Gross margin
|
$ | 13,021 | $ | 10,039 | ||||
SG&A
|
11,183 | 10,536 | ||||||
Adj. EBITDA
|
1,838 | (497 | ) | |||||
Reorganization Cost
|
- | 101 | ||||||
Non-operating expense (income), incl.
|
||||||||
corporate administrative charges
|
678 | 393 | ||||||
EBITDA
|
1,160 | (991 | ) |
HUDSON HIGHLAND GROUP, INC.
|
SEGMENT ANALYSIS - QUARTER TO DATE
|
(in thousands)
|
(unaudited)
|
For the Three Months Ended June 30, 2011
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 100,191 | $ | 86,143 | $ | 50,912 | $ | 10,132 | $ | - | $ | 247,378 | ||||||||||||
Gross margin, from external customers
|
$ | 42,228 | $ | 30,534 | $ | 13,021 | $ | 9,684 | $ | - | $ | 95,467 | ||||||||||||
Business reorganization and integration expenses
|
$ | 396 | $ | - | $ | - | $ | - | $ | - | $ | 396 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
2,390 | 1,375 | 678 | 920 | (5,358 | ) | 5 | |||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,735 | $ | 3,037 | $ | 1,160 | $ | 773 | $ | (44 | ) | $ | 7,661 | |||||||||||
Depreciation and amortization expenses
|
1,636 | |||||||||||||||||||||||
Interest expense (income), net
|
375 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
1,426 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
- | |||||||||||||||||||||||
Net income (loss)
|
$ | 4,224 | ||||||||||||||||||||||
For the Three Months Ended June 30, 2010
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 80,717 | $ | 65,249 | $ | 40,819 | $ | 8,184 | $ | - | $ | 194,969 | ||||||||||||
Gross margin, from external customers
|
$ | 34,559 | $ | 21,723 | $ | 10,039 | $ | 7,916 | $ | - | $ | 74,237 | ||||||||||||
Business reorganization and integration expenses
|
$ | 450 | $ | - | $ | 101 | $ | - | $ | - | $ | 551 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
1,148 | 1,015 | 393 | 38 | (3,440 | ) | (846 | ) | ||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,466 | $ | 1,369 | $ | (991 | ) | $ | 1,311 | $ | (1,034 | ) | $ | 3,121 | ||||||||||
Depreciation and amortization expenses
|
2,186 | |||||||||||||||||||||||
Interest expense (income), net
|
243 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
515 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
(52 | ) | ||||||||||||||||||||||
Net income (loss)
|
$ | 229 | ||||||||||||||||||||||
For the Three Months Ended September 30, 2010
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 80,503 | $ | 72,974 | $ | 37,839 | $ | 9,078 | $ | - | $ | 200,394 | ||||||||||||
Gross margin, from external customers
|
$ | 32,647 | $ | 24,259 | $ | 9,311 | $ | 8,774 | $ | - | $ | 74,991 | ||||||||||||
Business reorganization and integration expenses
|
$ | - | $ | - | $ | 41 | $ | - | $ | - | $ | 41 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
3,088 | 1,433 | (407 | ) | 478 | (5,213 | ) | (621 | ) | |||||||||||||||
EBITDA (Loss) (1)
|
$ | (2,128 | ) | $ | 1,376 | $ | 532 | $ | 1,169 | $ | 244 | $ | 1,193 | |||||||||||
Depreciation and amortization expenses
|
1,981 | |||||||||||||||||||||||
Interest expense (income), net
|
497 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
599 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
14 | |||||||||||||||||||||||
Net income (loss)
|
$ | (1,898 | ) | |||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
Hudson
Europe
|
Hudson
ANZ
|
Hudson
Americas
|
Hudson
Asia
|
Corporate
|
Total
|
||||||||||||||||||
Revenue, from external customers
|
$ | 93,710 | $ | 70,804 | $ | 45,812 | $ | 8,213 | $ | - | $ | 218,539 | ||||||||||||
Gross margin, from external customers
|
$ | 38,937 | $ | 24,019 | $ | 10,356 | $ | 7,886 | $ | - | $ | 81,198 | ||||||||||||
Business reorganization and integration expenses
|
$ | 351 | $ | - | $ | - | $ | - | $ | - | $ | 351 | ||||||||||||
Non-operating expense (income), including corporate administration charges
|
1,610 | 1,045 | 583 | 91 | (3,816 | ) | (487 | ) | ||||||||||||||||
EBITDA (Loss) (1)
|
$ | 2,175 | $ | 1,041 | $ | (379 | ) | $ | 973 | $ | (1,284 | ) | $ | 2,526 | ||||||||||
Depreciation and amortization expenses
|
1,576 | |||||||||||||||||||||||
Interest expense (income), net
|
206 | |||||||||||||||||||||||
Provision for (benefit from) income taxes
|
750 | |||||||||||||||||||||||
Loss (income) from discontinued operations, net of taxes
|
- | |||||||||||||||||||||||
Net income (loss)
|
$ | (6 | ) |
(1)
|
Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) are presented to provide additional information about the company’s operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company’s profitability or liquidity. Furthermore, EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
|
HUDSON HIGHLAND GROUP, INC.
|
Reconciliation For Constant Currency
|
(in thousands)
|
(unaudited)
|
For The Three Months Ended June 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Currency
|
Constant
|
|||||||||||||||
As reported
|
As reported
|
translation
|
currency
|
|||||||||||||
Revenue:
|
||||||||||||||||
Hudson Europe
|
$ | 100,191 | $ | 80,717 | $ | 8,585 | $ | 89,302 | ||||||||
Hudson ANZ
|
86,143 | 65,249 | 13,203 | 78,452 | ||||||||||||
Other (expense) income:
|
50,912 | 40,819 | 13 | 40,832 | ||||||||||||
Hudson Asia
|
10,132 | 8,184 | 602 | 8,786 | ||||||||||||
Total
|
247,378 | 194,969 | 22,403 | 217,372 | ||||||||||||
Direct costs:
|
||||||||||||||||
Hudson Europe
|
57,963 | 46,158 | 4,667 | 50,825 | ||||||||||||
Hudson ANZ
|
55,609 | 43,526 | 8,698 | 52,224 | ||||||||||||
Hudson Americas
|
37,891 | 30,780 | - | 30,780 | ||||||||||||
Hudson Asia
|
448 | 268 | 24 | 292 | ||||||||||||
Total
|
151,911 | 120,732 | 13,389 | 134,121 | ||||||||||||
Gross margin:
|
||||||||||||||||
Hudson Europe
|
42,228 | 34,559 | 3,918 | 38,477 | ||||||||||||
Hudson ANZ
|
30,534 | 21,723 | 4,505 | 26,228 | ||||||||||||
Hudson Americas
|
13,021 | 10,039 | 13 | 10,052 | ||||||||||||
Hudson Asia
|
9,684 | 7,916 | 578 | 8,494 | ||||||||||||
Total
|
$ | 95,467 | $ | 74,237 | $ | 9,014 | $ | 83,251 | ||||||||
Selling, general and administrative (a):
|
||||||||||||||||
Hudson Europe
|
$ | 37,180 | $ | 31,296 | $ | 3,536 | $ | 34,832 | ||||||||
Hudson ANZ
|
26,803 | 19,883 | 3,952 | 23,835 | ||||||||||||
Hudson Americas
|
11,358 | 11,223 | 19 | 11,242 | ||||||||||||
Hudson Asia
|
8,056 | 6,689 | 466 | 7,155 | ||||||||||||
Corporate
|
5,644 | 4,506 | 2 | 4,508 | ||||||||||||
Total
|
$ | 89,041 | $ | 73,597 | $ | 7,975 | $ | 81,572 |