Hudson Global, Inc.
Hudson Global Reports 2014 Second Quarter Results
DGAP-News: Hudson Global, Inc. 31.07.2014 / 13:00 --------------------------------------------------------------------- Highest Gross Margin in Six QuartersProgress on Strategic Actions to Focus on Core Business and Improve Efficiency NEW YORK, July 31, 2014 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a leading global talent solutions company, today announced financial results for the second quarter ended June 30, 2014. 2014 Second Quarter Summary -- Revenue of $167.4 million, down 2.3 percent from the second quarter of 2013, or 4.4 percent in constant currency. -- Gross margin of $62.8 million, an increase of 3.8 percent from the second quarter of 2013, or 1.9 percent in constant currency. This quarter's gross margin was the highest dollar level achieved by the company since the fourth quarter of 2012. -- Adjusted EBITDA* loss of $0.8 million, an improvement of 68.2 percent or 63.9 percent in constant currency, as compared with a loss of $2.5 million in the same period last year. Adjusted EBITDA included $1.3 million of charges related to the proxy contest and strategic actions. -- Adjusted EBITDA* loss of $2.9 million in the first half of 2014, as compared with a loss of $7.4 million in the first half of 2013, an improvement of 61.3 percent or 59.2 percent in constant currency. -- Restructuring charges of $1.1 million in the second quarter of 2014, as compared with $1.2 million in the second quarter of 2013. -- Net loss of $4.4 million, or $0.13 per basic and diluted share, as compared with net loss of $5.8 million, or $0.18 per basic and diluted share in the same period last year. * Adjusted EBITDA is defined in the segment tables at the end of this release. Year-over-year gross margin growth in the company's core business lines and geographies was widespread, including 4 percent in Asia Pacific, 9 percent in Europe, and 50 percent in RPO in the Americas, all in constant currency. This growth more than offset the decline in our eDiscovery unit in the Americas. 'We delivered gross margin growth in our major markets and continued to make substantial improvements to our bottom line,' said Manolo Marquez, chairman and chief executive officer at Hudson. 'Our second quarter results are a clear indication that the changes we have put in place are translating to growth and improved financial performance, and will accelerate our path to sustained profitability.' Stephen Nolan, chief financial officer at Hudson said, 'Our focus on disciplined execution, strategic investments, and business efficiencies have resulted in improved performance across most markets and practices.' Strategic Actions As was previously announced, the company engaged Duff & Phelps to begin exploring opportunities to divest the Legal eDiscovery business, and focus on the company's core businesses that are expected to maximize stockholder value. On July 29, 2014, the company's management and board of directors approved the plan for divestiture of the Legal eDiscovery business, which is expected to be completed within 12 months. In addition, the company engaged AlixPartners, LLP, a premier consulting firm in the areas of organization design and operational improvement, to assist management in a comprehensive assessment of the company's organization and operations. The engagement with AlixPartners was focused on identifying opportunities to better align the organization model to a more focused business after the divestiture of eDiscovery, to support future growth in core areas, and improve operating efficiencies and effectiveness. Based upon this work, management recommended and the board of directors approved on July 29, 2014 actions including the optimization of real estate and integration of support services and systems at the regional and corporate level. These initiatives are expected to result in a restructuring charge of up to $7 million which is expected to be taken over the next twelve months, depending on the timing of other strategic actions such as the sale of the company's eDiscovery business. The company expects an ongoing annualized return of 1.5 - 2.0x the charge. Regional Highlights Americas Americas' gross margin decreased 24 percent in the second quarter as compared with the same period in 2013. RPO continued to deliver strong results with 50 percent gross margin growth in the second quarter, after becoming the largest practice in the Americas on a gross margin basis in the first quarter of 2014. This growth was offset by declines in Legal eDiscovery and IT of 45 percent and 19 percent, respectively. The quarterly decline in Gross Margin, combined with an unusually significant increase in medical costs, resulted in an adjusted EBITDA loss of $0.1 million for the second quarter, compared with adjusted EBITDA of $1.5 million, or 4.1 percent of revenue for the same quarter a year ago. Asia Pacific Asia Pacific's gross margin increased 4 percent in constant currency in the second quarter as compared with the same period in 2013. This was the second consecutive quarter of year-over-year gross margin growth, with all business lines contributing in both quarters. More specifically, growth in the region was driven by strength in talent management and permanent recruitment in China, and Australia. Gross margin increased 30 percent in China in the quarter against the prior year. And in Australia, gross margin increased 6 percent, outperforming the company's major competitors. Talent management delivered 19 percent growth in Asia Pacific, led by large assessment and career transition projects in Australia. A concerted effort to increase front office staff in its highest potential markets and practices in Asia Pacific resulted in a 28 percent increase in fee-earners in the quarter as compared to prior year. The company expects further growth and market share gains in the region as the productivity of these new fee-earners increases. Cost reductions in support areas and real estate, together with top-line growth generated adjusted EBITDA of $1.0 million, or 1.5 percent of revenue, as compared to $0.7 million, or 1.1 percent of revenue in the second quarter of 2013. Europe Europe's gross margin increased 9 percent in constant currency compared with the second quarter of 2013. Against prior year, the region experienced gross margin growth in most countries. Particularly strong growth occurred in permanent recruitment in the UK and Belgium, up 18 percent and 27 percent in constant currency, respectively. Talent management in Continental Europe also grew in the quarter driven by Belgium and France, with gross margin up 7 percent compared with the prior year. Europe delivered adjusted EBITDA of $3.2 million, or 4.2 percent of revenue, as compared with adjusted EBITDA of $0.1 million, or 0.1 percent of revenue for the quarter a year ago. Liquidity and Capital Resources The company ended the second quarter of 2014 with $51.9 million in liquidity, composed of $17.9 million in cash and $34.1 million in availability under its credit facilities. This included $13.1 million of availability from the RBS facility, which will expire on August 4, 2014 and which the company expects to replace with separate facilities for the US and UK prior to such expiration date. This compares with $22.1 million in cash and $35.8 million in availability under its credit facilities at the end of the first quarter of 2014, and $28.3 million in cash and $35.8 million in availability under its credit facilities at the end of the second quarter of 2013. The company used $4.6 million in cash flow from operations during the quarter, and had $2.2 million in outstanding borrowings at the end of the second quarter. Business Outlook Given current economic conditions, the company expects third quarter 2014 revenue of between $165 million and $175 million and adjusted EBITDA of between negative $2 million and breakeven at prevailing exchange rates. In the third quarter of 2013, revenue was $163.6 million and adjusted EBITDA was a loss of $2.9 million. Conference Call/Webcast Hudson will conduct a conference call today at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the company's web site at Hudson.com. The archived call will be available on the investor information section of the company's web site at Hudson.com. About Hudson Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, contracting solutions, recruitment process outsourcing, talent management and eDiscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Operating in 20 countries through relationships with millions of specialized professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com. Forward-Looking Statements This press release contains statements that the company believes to be 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'intend,' 'plan,' 'predict,' 'believe' and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the company's ability to successfully achieve its strategic initiatives, including the divestiture of its Legal eDiscovery business; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; the company's ability to collect accounts receivable; the negative cash flows and operating losses that the company has experienced in recent periods and may experience from time to time in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; the company's ability to achieve anticipated cost savings through its cost reduction initiatives; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the company's exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the company's business reorganization initiatives and limits on related insurance coverage; the company's ability to utilize net operating loss carry-forwards; volatility of the company's stock price; the impact of government regulations; restrictions imposed by blocking arrangements; risks related to activist stockholders; and risks related to limited availability under the company's credit facilities. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Financial Tables Follow HUDSON GLOBAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June June 30, 30, -------------------------------------------- 2014 2013 2014 2013 -------------------------------------------- Revenue $ 167,365 $ 171,360 $ 329,226 $ 337,037 Direct costs 104,554 110,856 208,885 219,857 -------------------------------------------- Gross margin 62,811 60,504 120,341 117,180 Operating expenses: Selling, general and 63,612 63,023 123,214 124,613 administrative expenses Depreciation and amortization 1,514 1,656 3,002 3,304 Business reorganization expenses 1,117 1,249 1,231 3,231 -------------------------------------------- Total operating expenses 66,243 65,928 127,447 131,148 -------------------------------------------- Operating income (loss) (3,432) (5,424) (7,106) (13,968) Non-operating income (expense): Interest income (expense), net (206) (155) (350) (300) Other income (expense), net (321) (94) (523) 177 -------------------------------------------- Income (loss) before provision for (3,959) (5,673) (7,979) (14,091) income taxes Provision for (benefit from) income 415 138 939 (39) taxes -------------------------------------------- Net income (loss) $ (4,374) $ (5,811) $ (8,918) $ (14,052) ============================================ Earnings (loss) per share: Basic $ (0.13) $ (0.18) $ (0.27) $ (0.43) -------------------------------------------- Diluted $ (0.13) $ (0.18) $ (0.27) $ (0.43) -------------------------------------------- Weighted-average shares outstanding: Basic 32,752 32,717 32,697 32,532 Diluted 32,752 32,717 32,697 32,532 HUDSON GLOBAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, December 2014 31, 2013 --------------------- ASSETS Current assets: Cash and cash equivalents $ 17,853 $ 37,378 Accounts receivable, less allowance for doubtful accounts 100,508 85,901 of $1,152 and $1,108, respectively Prepaid and other 10,381 8,762 --------------------- Total current assets 128,742 132,041 Property and equipment, net 14,900 13,822 Deferred tax assets, non-current 6,487 7,124 Other assets 5,791 5,842 --------------------- Total assets $ 155,920 $ 158,829 ===================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 8,177 $ 9,747 Accrued expenses and other current liabilities 57,574 54,722 Short-term borrowings 2,183 476 Accrued business reorganization expenses 2,292 3,810 --------------------- Total current liabilities 70,226 68,755 Deferred rent and tenant improvement contributions 7,556 6,120 Income tax payable, non-current 2,929 3,872 Other non-current liabilities 6,600 5,697 --------------------- Total liabilities 87,311 84,444 Stockholders' equity: Preferred stock, $0.001 par value, 10,000 shares - - authorized; none issued or outstanding Common stock, $0.001 par value, 100,000 shares 34 34 authorized; issued 33,134 and 33,543 shares, respectively Additional paid-in capital 476,193 475,461 Accumulated deficit (426,340) (417,422) Accumulated other comprehensive income 19,178 17,173 Treasury stock, 127 and 211 shares, respectively, at cost (456) (861) --------------------- Total stockholders' equity 68,609 74,385 --------------------- Total liabilities and stockholders' equity $ 155,920 $ 158,829 ===================== HUDSON GLOBAL, INC. SEGMENT ANALYSIS - QUARTER TO DATE (in thousands) (unaudited) For The Three Months Ended Hudson Hudson Hudson Corporate Total June 30, 2014 Americas Asia Europe Pacific ---------------------------------------------------- Revenue, from external $ 26,263 $ 65,101 $ 76,001 $ - $ 167,365 customers ---------------------------------------------------- Gross margin, from external $ 7,066 $ 24,519 $ 31,226 $ - $ 62,811 customers ---------------------------------------------------- Adjusted EBITDA (loss) (1) $ (139) $ 996 $ 3,203 $ (4,861) $ (801) Business reorganization 3 1,114 - - 1,117 expenses (recovery) Non-operating expense 740 463 1,582 (2,464) 321 (income), including corporate administration charges ---------------------------------------------------- EBITDA (loss) (1) $ (882) $ (581) $ 1,621 $ (2,397) $ (2,239) Depreciation and amortization expenses 1,514 Interest expense (income), net 206 Provision for (benefit from) income taxes 415 ---------- Net income (loss) $ (4,374) ========== For The Three Months Ended Hudson Hudson Hudson Corporate Total June 30, 2013 Americas Asia Europe Pacific ---------------------------------------------------- Revenue, from external $ 37,327 $ 62,869 $ 71,164 $ - $ 171,360 customers ---------------------------------------------------- Gross margin, from external $ 9,245 $ 24,276 $ 26,983 $ - $ 60,504 customers ---------------------------------------------------- Adjusted EBITDA (loss) (1) $ 1,542 $ 713 $ 87 $ (4,856) $ (2,514) Business reorganization 325 - 556 368 1,249 expenses (recovery) Office integration expense 6 - - - 6 and (gains) on disposal of business Non-operating expense 825 490 1,686 (2,908) 93 (income), including corporate administration charges ---------------------------------------------------- EBITDA (loss) (1) $ 386 $ 223 $ (2,155) $ (2,316) $ (3,862) Depreciation and amortization expenses 1,656 Interest expense (income), net 155 Provision for (benefit from) income taxes 138 ---------- Net income (loss) $ (5,811) ========== (1) Non-GAAP earnings before interest, income taxes, and depreciation and amortization ('EBITDA') and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, goodwill and other impairment charges, business reorganization expenses and other expenses ('Adjusted EBITDA') are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. HUDSON GLOBAL, INC. SEGMENT ANALYSIS - QUARTER TO DATE (continued) (in thousands) (unaudited) For The Three Months Ended Hudson Hudson Hudson Corporate Total March 31, 2014 Americas Asia Europe Pacific ---------------------------------------------------- Revenue, from external $ 26,863 $ 56,430 $ 78,568 $ - $ 161,861 customers ---------------------------------------------------- Gross margin, from external $ 6,666 $ 20,911 $ 29,952 $ - $ 57,529 customers ---------------------------------------------------- Adjusted EBITDA (loss) (1) $ (649) $ 110 $ 2,353 $ (3,887) $ (2,073) Business reorganization 91 - 23 - 114 expenses (recovery) Non-operating expense 370 415 1,177 (1,761) 201 (income), including corporate administration charges ---------------------------------------------------- EBITDA (loss) (1) $ (1,110) $ (305) $ 1,153 $ (2,126) $ (2,388) Depreciation and 1,488 amortization expenses Interest expense (income), 144 net Provision for (benefit 524 from) income taxes ---------- Net income (loss) $ (4,544) ========== For The Three Months Ended Hudson Hudson Hudson Corporate Total September 30, 2013 Americas Asia Europe Pacific ---------------------------------------------------- Revenue, from external $ 34,842 $ 58,274 $ 70,471 $ - $ 163,587 customers ---------------------------------------------------- Gross margin, from external $ 9,073 $ 21,348 $ 25,375 $ - $ 55,796 customers ---------------------------------------------------- Adjusted EBITDA (loss) (1) $ 1,295 $ (460) $ 440 $ (4,158) $ (2,883) Business reorganization 208 - 152 368 728 expenses (recovery) Non-operating expense 433 (335) 913 (1,307) (296) (income), including corporate administration charges ---------------------------------------------------- EBITDA (loss) (1) $ 654 $ (125) $ (625) $ (3,219) $ (3,315) Depreciation and 1,529 amortization expenses Interest expense (income), 158 net Provision for (benefit 45 from) income taxes ---------- Net income (loss) $ (5,047) ========== (1) Non-GAAP earnings before interest, income taxes, and depreciation and amortization ('EBITDA') and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, goodwill and other impairment charges, business reorganization expenses and other expenses ('Adjusted EBITDA') are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. HUDSON GLOBAL, INC. SEGMENT ANALYSIS - YEAR TO DATE (continued) (in thousands) (unaudited) For The Six Months Ended Hudson Hudson Hudson Corporate Total June 30, 2014 Americas Asia Europe Pacific ------------------------------------------------------- Revenue, from external $ 53,126 $ 121,532 $ 154,568 $ - $ 329,226 customers ------------------------------------------------------- Gross margin, from $ 13,731 $ 45,430 $ 61,180 $ - $ 120,341 external customers ------------------------------------------------------- Adjusted EBITDA (loss) $ (788) $ 1,107 $ 5,556 $ (8,749) $ (2,874) (1) Business reorganization 93 1,115 23 - 1,231 expenses (recovery) Non-operating expense 1,112 876 2,760 (4,226) 522 (income), including corporate administration charges ------------------------------------------------------- EBITDA (loss) (1) $ (1,993) $ (884) $ 2,773 $ (4,523) $ (4,627) Depreciation and 3,002 amortization expenses Interest expense 350 (income), net Provision for (benefit 939 from) income taxes ----------- Net income (loss) $ (8,918) =========== For The Six Months Ended Hudson Hudson Hudson Corporate Total June 30, 2013 Americas Asia Europe Pacific ------------------------------------------------------- Revenue, from external $ 74,549 $ 119,070 $ 143,418 $ - $ 337,037 customers ------------------------------------------------------- Gross margin, from $ 17,389 $ 45,768 $ 54,023 $ - $ 117,180 external customers ------------------------------------------------------- Adjusted EBITDA (loss) $ 1,184 $ 285 $ (25) $ (8,871) $ (7,427) (1) Business reorganization 308 102 2,427 394 3,231 expenses (recovery) Office integration 6 - - - 6 expense and (gains) on disposal of business Non-operating expense 1,430 827 3,155 (5,589) (177) (income), including corporate administration charges ------------------------------------------------------- EBITDA (loss) (1) $ (560) $ (644) $ (5,607) $ (3,676) $ (10,487) Depreciation and 3,304 amortization expenses Interest expense 300 (income), net Provision for (benefit (39) from) income taxes ----------- Net income (loss) $ (14,052) =========== (1) Non-GAAP earnings before interest, income taxes, and depreciation and amortization ('EBITDA') and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, goodwill and other impairment charges, business reorganization expenses and other expenses ('Adjusted EBITDA') are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. HUDSON GLOBAL, INC. RECONCILIATION FOR CONSTANT CURRENCY (in thousands) (unaudited) The company operates on a global basis, with the majority of its gross margin generated outside of the United States. Accordingly, fluctuations in foreign currency exchange rates can affect its results of operations. Constant currency information compares financial results between periods as if exchange rates had remained constant period-over-period. The company currently defines the term 'constant currency' to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. Changes in revenue, gross margin, selling, general and administrative expenses ('SG&A'), business reorganization expenses and other non-operating income (expense), operating income (loss) and EBITDA (loss) include the effect of changes in foreign currency exchange rates. Variance analysis usually describes period-to-period variances that are calculated using constant currency as a percentage. The company's management reviews and analyzes business results in constant currency and believes these results better represent the company's underlying business trends. The company believes that these calculations are a useful measure, indicating the actual change in operations. There are no significant gains or losses on foreign currency transactions between subsidiaries. Therefore, changes in foreign currency exchange rates generally impact only reported earnings. Three Months Ended June 30, 2014 2013 --------------------------------------------- As As Currency Constant reported reported translation currency --------------------------------------------- Revenue: Hudson Americas $ 26,263 $ 37,327 $ (12) $ 37,315 Hudson Asia Pacific 65,101 62,869 (1,776) 61,093 Hudson Europe 76,001 71,164 5,468 76,632 --------------------------------------------- Total $ 167,365 $ 171,360 $ 3,680 $ 175,040 ============================================= Gross margin: Hudson Americas $ 7,066 $ 9,245 $ (11) $ 9,234 Hudson Asia Pacific 24,519 24,276 (613) 23,663 Hudson Europe 31,226 26,983 1,787 28,770 --------------------------------------------- Total $ 62,811 $ 60,504 $ 1,163 $ 61,667 ============================================= SG&A (1): Hudson Americas $ 7,239 $ 7,709 $ (14) $ 7,695 Hudson Asia Pacific 23,523 23,545 (796) 22,749 Hudson Europe 27,989 26,927 1,675 28,602 Corporate 4,861 4,842 - 4,842 --------------------------------------------- Total $ 63,612 $ 63,023 $ 865 $ 63,888 ============================================= Business reorganization expenses: Hudson Americas $ 3 $ 325 $ - $ 325 Hudson Asia Pacific 1,114 - - - Hudson Europe - 556 15 571 Corporate - 368 - 368 --------------------------------------------- Total $ 1,117 $ 1,249 $ 15 $ 1,264 ============================================= Operating income (loss): Hudson Americas $ (344) $ 961 $ 4 $ 965 Hudson Asia Pacific (920) (114) 215 101 Hudson Europe 2,831 (888) 67 (821) Corporate (4,999) (5,383) - (5,383) --------------------------------------------- Total $ (3,432) $ (5,424) $ 286 $ (5,138) ============================================= EBITDA (loss): Hudson Americas $ (882) $ 386 $ 8 $ 394 Hudson Asia Pacific (581) 223 190 413 Hudson Europe 1,621 (2,155) (22) (2,177) Corporate (2,397) (2,316) - (2,316) --------------------------------------------- Total $ (2,239) $ (3,862) $ 176 $ (3,686) ============================================= (1) SG&A is a measure that management uses to evaluate the segments' expenses. HUDSON GLOBAL, INC. RECONCILIATION FOR CONSTANT CURRENCY (Continued) (in thousands) (unaudited) Six Months Ended June 30, 2014 2013 ----------------------------------------------- As As Currency Constant reported reported translation currency ----------------------------------------------- Revenue: Hudson Americas $ 53,126 $ 74,549 $ (35) $ 74,514 Hudson Asia Pacific 121,532 119,070 (7,303) 111,767 Hudson Europe 154,568 143,418 9,535 152,953 ----------------------------------------------- Total $ 329,226 $ 337,037 $ 2,197 $ 339,234 =============================================== Gross margin: Hudson Americas $ 13,731 $ 17,389 $ (33) $ 17,356 Hudson Asia Pacific 45,430 45,768 (2,390) 43,378 Hudson Europe 61,180 54,023 3,146 57,169 ----------------------------------------------- Total $ 120,341 $ 117,180 $ 723 $ 117,903 =============================================== SG&A (1): Hudson Americas $ 14,551 $ 16,208 $ (36) $ 16,172 Hudson Asia Pacific 44,254 45,439 (2,575) 42,864 Hudson Europe 55,661 54,106 2,950 57,056 Corporate 8,748 8,860 - 8,860 ----------------------------------------------- Total $ 123,214 $ 124,613 $ 339 $ 124,952 =============================================== Business reorganization expenses: Hudson Americas $ 93 $ 308 $ - $ 308 Hudson Asia Pacific 1,115 102 (8) 94 Hudson Europe 23 2,427 141 2,568 Corporate - 394 - 394 ----------------------------------------------- Total $ 1,231 $ 3,231 $ 133 $ 3,364 =============================================== Operating income (loss): Hudson Americas $ (1,308) $ 369 $ 3 $ 372 Hudson Asia Pacific (1,555) (1,473) 312 (1,161) Hudson Europe 4,804 (3,276) 2 (3,274) Corporate (9,047) (9,588) - (9,588) ----------------------------------------------- Total $ (7,106) $ (13,968) $ 317 $ (13,651) =============================================== EBITDA (loss): Hudson Americas $ (1,993) $ (560) $ 13 $ (547) Hudson Asia Pacific (884) (644) 184 (460) Hudson Europe 2,773 (5,607) (202) (5,809) Corporate (4,523) (3,676) - (3,676) ----------------------------------------------- Total $ (4,627) $ (10,487) $ (5) $ (10,492) =============================================== (1) SG&A is a measure that management uses to evaluate the segments' expenses. CONTACT: David F. Kirby Hudson 212-351-7216 david.kirby@hudson.com News Source: NASDAQ OMX --------------------------------------------------------------------- 31.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Hudson Global, Inc. United States ISIN: US4437921061 End of News DGAP News-Service --------------------------------------------------------------------- 280248 31.07.2014
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