Korn Ferry Announces First Quarter Fiscal 2019 Results of Operations
Highlights
Korn Ferry reports fee revenue of$465.6 million in Q1 FY'19, a 16.0% increase from Q1 FY'18, driven by organic growth in all solutions.- During the first quarter the Company announced a rebranding campaign under which it is sunsetting all sub-brands and moving to one unified brand –
Korn Ferry . In connection with this, the Company incurred a charge in the amount of$106.6 million related to tradenames from prior acquisitions that the Company will no longer be using, resulting in an operating loss of$55.1 million with an operating margin of (11.8%). Adjusted EBITDA was$70.8 million with Adjusted EBITDA margin of 15.2%. - Q1 FY'19 diluted loss per share was
$0.70 compared to diluted earnings per share of$0.51 in Q1 FY'18. Adjusted diluted earnings per share was$0.78 in Q1 FY'19 compared to Adjusted diluted earnings per share in Q1 FY'18 of$0.55 . - The Company declared a quarterly dividend of
$0.10 per share onSeptember 5, 2018 payable onOctober 15, 2018 to stockholders of record onSeptember 28, 2018 .
"I am pleased to report fee revenue of approximately
Selected Financial Results
(dollars in millions, except per share amounts) (a)
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Fee revenue |
$ |
465.6 |
$ |
401.3 |
||||
Total revenue |
$ |
478.4 |
$ |
414.9 |
||||
Operating (loss) income |
$ |
(55.1) |
$ |
41.9 |
||||
Operating margin |
(11.8%) |
10.5% |
||||||
Net (loss) income attributable to Korn Ferry |
$ |
(38.6) |
$ |
29.0 |
||||
Basic (loss) earnings per share |
$ |
(0.70) |
$ |
0.52 |
||||
Diluted (loss) earnings per share |
$ |
(0.70) |
$ |
0.51 |
||||
EBITDA Results (b): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
EBITDA |
$ |
(38.9) |
$ |
57.5 |
||||
EBITDA margin |
(8.3%) |
14.3% |
||||||
Adjusted Results (c): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
Adjusted EBITDA (b) |
$ |
70.8 |
$ |
60.4 |
||||
Adjusted EBITDA margin (b) |
15.2% |
15.0% |
||||||
Adjusted net income attributable to Korn Ferry |
$ |
44.2 |
$ |
31.2 |
||||
Adjusted basic earnings per share |
$ |
0.79 |
$ |
0.55 |
||||
Adjusted diluted earnings per share |
$ |
0.78 |
$ |
0.55 |
(a) |
Numbers may not total due to rounding. |
||||||
(b) |
EBITDA refers to earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to exclude tradename write-offs, integration/acquisition costs and restructuring charges, net. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations). |
||||||
(c) |
Adjusted results are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations): |
||||||
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Tradename write-offs |
$ |
106.6 |
$ |
— |
||||
Integration/acquisition costs |
$ |
3.1 |
$ |
2.6 |
||||
Restructuring charges, net |
$ |
— |
$ |
0.3 |
Fee revenue was
Operating margin was (11.8%) in Q1 FY'19 compared to 10.5% in the year-ago quarter. The decrease in operating margin was primarily due to the
Adjusted EBITDA margin was 15.2%, compared to 15.0% in the year-ago quarter.
Results by Segment
Selected Executive Search Data
(dollars in millions) (a)
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Fee revenue |
$ |
192.9 |
$ |
161.2 |
||||
Total revenue |
$ |
198.0 |
$ |
165.8 |
||||
Operating income |
$ |
40.9 |
$ |
32.9 |
||||
Operating margin |
21.2% |
20.4% |
||||||
Ending number of consultants |
545 |
532 |
||||||
Average number of consultants |
543 |
525 |
||||||
Engagements billed |
3,822 |
3,615 |
||||||
New engagements (b) |
1,708 |
1,659 |
||||||
EBITDA Results (c): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
EBITDA |
$ |
46.8 |
$ |
35.2 |
||||
EBITDA margin |
24.2% |
21.8% |
||||||
Adjusted Results (d): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
Adjusted EBITDA (c) |
$ |
46.8 |
$ |
35.2 |
||||
Adjusted EBITDA margin (c) |
24.2% |
21.9% |
(a) |
Numbers may not total due to rounding. |
|||||||
(b) |
Represents new engagements opened in the respective period. |
|||||||
(c) |
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations). |
|||||||
(d) |
Adjusted results are non-GAAP financial measures that exclude restructuring charges, net (see attached reconciliations). |
Fee revenue was
Operating income was
Adjusted EBITDA was
Selected Advisory Data
(dollars in millions) (a)
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Fee revenue |
$ |
195.4 |
$ |
179.5 |
||||
Total revenue |
$ |
200.1 |
$ |
183.3 |
||||
Operating (loss) income |
$ |
(83.1) |
$ |
19.1 |
||||
Operating margin |
(42.5%) |
10.6% |
||||||
Ending number of consultants (b) |
563 |
583 |
||||||
Staff utilization (c) |
67% |
63% |
||||||
EBITDA Results (d): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
EBITDA |
$ |
(75.1) |
$ |
27.6 |
||||
EBITDA margin |
(38.4%) |
15.4% |
||||||
Adjusted Results (e): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
Adjusted EBITDA (d) |
$ |
34.5 |
$ |
30.4 |
||||
Adjusted EBITDA margin (d) |
17.7% |
16.9% |
(a) |
Numbers may not total due to rounding. |
||||||
(b) |
Represents number of employees originating consulting services. |
||||||
(c) |
Calculated by dividing the number of hours our full-time Advisory professional staff record to engagements during the period, by the total available working hours during the same period. |
||||||
(d) |
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations). |
||||||
(e) |
Adjusted results are non-GAAP financial measures that adjust for the following (see attached reconciliations): |
||||||
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Tradename write-offs |
$ |
106.6 |
$ |
— |
||||
Integration/acquisition costs |
$ |
3.0 |
$ |
2.5 |
||||
Restructuring charges, net |
$ |
— |
$ |
0.2 |
Fee revenue was
Operating loss was
Adjusted EBITDA was
Selected RPO and Professional Search Data
(dollars in millions) (a)
First Quarter |
||||||||
FY'19 |
FY'18 |
|||||||
Fee revenue |
$ |
77.3 |
$ |
60.6 |
||||
Total revenue |
$ |
80.2 |
$ |
65.8 |
||||
Operating income |
$ |
11.6 |
$ |
8.2 |
||||
Operating margin |
15.1% |
13.6% |
||||||
Engagements billed (b) |
1,346 |
1,205 |
||||||
New engagements (c) |
771 |
732 |
||||||
EBITDA Results (d): |
First Quarter |
|||||||
FY'19 |
FY'18 |
|||||||
EBITDA |
$ |
12.5 |
$ |
9.0 |
||||
EBITDA margin |
16.2% |
14.9% |
(a) |
Numbers may not total due to rounding. |
||||||
(b) |
Represents professional search engagements billed. |
||||||
(c) |
Represents new professional search engagements opened in the respective period. |
||||||
(d) |
EBITDA and EBITDA margin are non-GAAP financial measures (see attached reconciliations). |
Fee revenue was
Operating income was
EBITDA was
Outlook
Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:
- Q2 FY'19 fee revenue is expected to be in the range of
$470 million and$490 million ; and - Q2 FY'19 diluted earnings per share is likely to range between
$0.73 to $0.81 .
On a consolidated adjusted basis:
- Q2 FY'19 Adjusted diluted earnings per share is expected to be in the range from
$0.76 to $0.84 .
Q2 FY'19 |
||||||||
Low |
High |
|||||||
Consolidated diluted earnings per share |
$ |
0.73 |
$ |
0.81 |
||||
Retention bonuses |
0.04 |
0.04 |
||||||
Tax rate impact |
(0.01) |
(0.01) |
||||||
Consolidated as Adjusted diluted earnings per share |
$ |
0.76 |
$ |
0.84 |
(1) |
Consolidated Adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table. |
Earnings Conference Call Webcast
The earnings conference call will be held today at
About
Forward-Looking Statements
Statements in this press release and our conference call that relate to future results and events ("forward-looking statements") are based on
Use of Non-GAAP Financial Measures
This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). In particular, it includes:
- Adjusted net income attributable to
Korn/Ferry International , adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, net of income tax effect; - Adjusted basic and diluted earnings per share, adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, net of income tax effect; and in the case of the outlook section, also adjusted for tax rate impact;
- Constant currency (calculated using a quarterly average) amounts that represent the outcome that would have resulted had exchange rates in the reported period been the same as those in effect in the comparable prior year period;
- EBITDA, or earnings before interest, taxes, depreciation and amortization and EBITDA margin;and
- Adjusted EBITDA, which is EBITDA further adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, and Adjusted EBITDA margin.
This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding
[Tables attached]
KORN FERRY AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(in thousands, except per share amounts) |
||||||||
Three Months Ended |
||||||||
July 31, |
||||||||
2018 |
2017 |
|||||||
(unaudited) |
||||||||
Fee revenue |
$ |
465,568 |
$ |
401,254 |
||||
Reimbursed out-of-pocket engagement expenses |
12,794 |
13,663 |
||||||
Total revenue |
478,362 |
414,917 |
||||||
Compensation and benefits |
321,905 |
272,756 |
||||||
General and administrative expenses |
168,724 |
58,261 |
||||||
Reimbursed expenses |
12,794 |
13,663 |
||||||
Cost of services |
18,327 |
15,813 |
||||||
Depreciation and amortization |
11,731 |
12,209 |
||||||
Restructuring charges, net |
- |
280 |
||||||
Total operating expenses |
533,481 |
372,982 |
||||||
Operating (loss) income |
(55,119) |
41,935 |
||||||
Other income, net |
4,491 |
3,354 |
||||||
Interest expense, net |
(4,103) |
(3,680) |
||||||
(Loss) income before (benefit) provision for income taxes and |
||||||||
equity in earnings of unconsolidated subsidiaries |
(54,731) |
41,609 |
||||||
Equity in earnings of unconsolidated subsidiaries |
29 |
30 |
||||||
Income tax (benefit) provision |
(16,110) |
12,210 |
||||||
Net (loss) income |
(38,592) |
29,429 |
||||||
Net income attributable to noncontrolling interest |
(19) |
(388) |
||||||
Net (loss) income attributable to Korn/Ferry International |
$ |
(38,611) |
$ |
29,041 |
||||
(Loss) earnings per common share attributable to Korn/Ferry International: |
||||||||
Basic |
$ |
(0.70) |
$ |
0.52 |
||||
Diluted |
$ |
(0.70) |
$ |
0.51 |
||||
Weighted-average common shares outstanding: |
||||||||
Basic |
55,378 |
55,795 |
||||||
Diluted |
55,378 |
56,403 |
||||||
Cash dividends declared per share: |
$ |
0.10 |
$ |
0.10 |
KORN FERRY AND SUBSIDIARIES |
||||||||||||||||
FINANCIAL SUMMARY BY SEGMENT |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended July 31, |
||||||||||||||||
2018 |
2017 |
% Change |
||||||||||||||
Fee revenue: |
||||||||||||||||
Executive Search: |
||||||||||||||||
North America |
$ |
112,097 |
$ |
91,833 |
22.1% |
|||||||||||
EMEA |
46,654 |
40,121 |
16.3% |
|||||||||||||
Asia Pacific |
26,295 |
21,578 |
21.9% |
|||||||||||||
Latin America |
7,878 |
7,659 |
2.9% |
|||||||||||||
Total Executive Search |
192,924 |
161,191 |
19.7% |
|||||||||||||
Advisory |
195,375 |
179,453 |
8.9% |
|||||||||||||
RPO and Professional Search |
77,269 |
60,610 |
27.5% |
|||||||||||||
Total fee revenue |
465,568 |
401,254 |
16.0% |
|||||||||||||
Reimbursed out-of-pocket engagement expenses |
12,794 |
13,663 |
(6.4%) |
|||||||||||||
Total revenue |
$ |
478,362 |
$ |
414,917 |
15.3% |
|||||||||||
Operating (loss) income: |
Margin |
Margin |
||||||||||||||
Executive Search: |
||||||||||||||||
North America |
$ |
26,514 |
23.7% |
$ |
22,070 |
24.0% |
||||||||||
EMEA |
6,969 |
14.9% |
6,675 |
16.6% |
||||||||||||
Asia Pacific |
6,641 |
25.3% |
3,141 |
14.6% |
||||||||||||
Latin America |
754 |
9.6% |
1,026 |
13.4% |
||||||||||||
Total Executive Search |
40,878 |
21.2% |
32,912 |
20.4% |
||||||||||||
Advisory |
(83,079) |
(42.5%) |
19,055 |
10.6% |
||||||||||||
RPO and Professional Search |
11,645 |
15.1% |
8,245 |
13.6% |
||||||||||||
Corporate |
(24,563) |
(18,277) |
||||||||||||||
Total operating (loss) income |
$ |
(55,119) |
(11.8%) |
$ |
41,935 |
10.5% |
KORN FERRY AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except per share amounts) |
||||||||
July 31, |
April 30, |
|||||||
2018 |
2018 |
|||||||
(unaudited) |
||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ |
365,729 |
$ |
520,848 |
||||
Marketable securities |
10,952 |
14,293 |
||||||
Receivables due from clients, net of allowance for doubtful accounts of $19,201 and $17,845 at July 31, 2018 and April 30, 2018, respectively |
397,559 |
384,996 |
||||||
Income taxes and other receivables |
36,999 |
29,089 |
||||||
Unearned compensation |
40,713 |
37,333 |
||||||
Prepaid expenses and other assets |
32,056 |
27,700 |
||||||
Total current assets |
884,008 |
1,014,259 |
||||||
Marketable securities, non-current |
123,124 |
122,792 |
||||||
Property and equipment, net |
123,318 |
119,901 |
||||||
Cash surrender value of company owned life insurance policies, net of loans |
121,828 |
120,087 |
||||||
Deferred income taxes |
39,512 |
25,520 |
||||||
Goodwill |
581,858 |
584,222 |
||||||
Intangible assets, net |
93,050 |
203,216 |
||||||
Unearned compensation, non-current |
92,378 |
78,295 |
||||||
Investments and other assets |
20,394 |
19,622 |
||||||
Total assets |
$ |
2,079,470 |
$ |
2,287,914 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Accounts payable |
$ |
35,325 |
$ |
35,196 |
||||
Income taxes payable |
25,790 |
23,034 |
||||||
Compensation and benefits payable |
175,477 |
304,980 |
||||||
Term loan |
26,629 |
24,911 |
||||||
Other accrued liabilities |
150,534 |
170,339 |
||||||
Total current liabilities |
413,755 |
558,460 |
||||||
Deferred compensation and other retirement plans |
234,468 |
227,729 |
||||||
Term loan, non-current |
204,654 |
211,311 |
||||||
Deferred tax liabilities |
1,609 |
9,105 |
||||||
Other liabilities |
60,364 |
61,694 |
||||||
Total liabilities |
914,850 |
1,068,299 |
||||||
Stockholders' equity |
||||||||
Common stock: $0.01 par value, 150,000 shares authorized, 72,171 and 71,631 shares issued and 56,938 and 56,517 shares outstanding at July 31, 2018 and April 30, 2018, respectively |
681,060 |
683,942 |
||||||
Retained earnings |
537,015 |
572,800 |
||||||
Accumulated other comprehensive loss, net |
(56,488) |
(40,135) |
||||||
Total Korn/Ferry International stockholders' equity |
1,161,587 |
1,216,607 |
||||||
Noncontrolling interest |
3,033 |
3,008 |
||||||
Total stockholders' equity |
1,164,620 |
1,219,615 |
||||||
Total liabilities and stockholders' equity |
$ |
2,079,470 |
$ |
2,287,914 |
KORN FERRY AND SUBSIDIARIES |
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||
(in thousands, except per share amounts) |
||||||||
Three Months Ended |
||||||||
July 31, |
||||||||
2018 |
2017 |
|||||||
(unaudited) |
||||||||
Operating (loss) income |
$ |
(55,119) |
$ |
41,935 |
||||
Depreciation and amortization |
11,731 |
12,209 |
||||||
Other income, net |
4,491 |
3,354 |
||||||
Equity in earnings of unconsolidated subsidiaries, net |
29 |
30 |
||||||
EBITDA |
(38,868) |
57,528 |
||||||
Restructuring charges, net (1) |
- |
280 |
||||||
Integration/acquisition costs (2) |
3,107 |
2,588 |
||||||
Tradename write-offs (3) |
106,555 |
- |
||||||
Adjusted EBITDA |
$ |
70,794 |
$ |
60,396 |
||||
Operating margin |
(11.8%) |
10.5% |
||||||
Depreciation and amortization |
2.5% |
3.0% |
||||||
Other income, net |
1.0% |
0.8% |
||||||
Equity in earnings of unconsolidated subsidiaries, net |
- |
- |
||||||
EBITDA margin |
(8.3%) |
14.3% |
||||||
Restructuring charges, net (1) |
- |
0.1% |
||||||
Integration/acquisition costs (2) |
0.6% |
0.6% |
||||||
Tradename write-offs (3) |
22.9% |
- |
||||||
Adjusted EBITDA margin |
15.2% |
15.0% |
||||||
Net (loss) income attributable to Korn/Ferry International |
$ |
(38,611) |
$ |
29,041 |
||||
Restructuring charges, net (1) |
- |
280 |
||||||
Integration/acquisition costs (2) |
3,107 |
2,588 |
||||||
Tradename write-offs (3) |
106,555 |
- |
||||||
Tax effect on the above items (4) |
(26,893) |
(724) |
||||||
Adjusted net income attributable to Korn/Ferry International |
$ |
44,158 |
$ |
31,185 |
||||
Basic (loss) earnings per common share |
$ |
(0.70) |
$ |
0.52 |
||||
Restructuring charges, net (1) |
- |
- |
||||||
Integration/acquisition costs (2) |
0.06 |
0.05 |
||||||
Tradename write-offs (3) |
1.92 |
- |
||||||
Tax effect on the above items (4) |
(0.49) |
(0.02) |
||||||
Adjusted basic earnings per share |
$ |
0.79 |
$ |
0.55 |
||||
Diluted (loss) earnings per common share |
$ |
(0.70) |
$ |
0.51 |
||||
Restructuring charges, net (1) |
- |
- |
||||||
Integration/acquisition costs (2) |
0.06 |
0.05 |
||||||
Tradename write-offs (3) |
1.90 |
- |
||||||
Tax effect on the above items (4) |
(0.48) |
(0.01) |
||||||
Adjusted diluted earnings per share |
$ |
0.78 |
$ |
0.55 |
||||
Explanation of Non-GAAP Adjustments |
|||||||||
(1) |
Restructuring plan implemented in order to rationalize our cost structure by eliminating redundant positions and consolidating office space due to a previous acquisition that took place on December 1, 2015. |
||||||||
(2) |
Costs associated with completing a previous acquisition, such as legal and professional fees, and the on-going integration expenses to combine the companies. |
||||||||
(3) |
The Company is implementing a plan to go to market under a single, master brand architecture to simplify the Company's organizational structure by eliminating and/or consolidating certain legal entities and implementing a rebranding of the Company to offer the Company's current products and services using the "Korn Ferry" name, branding and trademarks. As a result of this the Company was required under U.S. generally accepted accounting principles to record a one-time, non-cash tradename write-offs. |
||||||||
(4) |
Tax effect on restructuring charges, net, integration/acquisition costs and tradename write-offs. |
KORN FERRY AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NET (LOSS) INCOME AND OPERATING (LOSS) INCOME (GAAP) TO |
||||||||||||||||||||||||||||||||||||
EBITDA AND ADJUSTED EBITDA (NON-GAAP) |
||||||||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||||||||||
Three Months Ended July 31, 2018 |
||||||||||||||||||||||||||||||||||||
Executive Search |
||||||||||||||||||||||||||||||||||||
North |
EMEA |
Asia |
Latin |
Subtotal |
Advisory |
RPO and |
Corporate |
Consolidated |
||||||||||||||||||||||||||||
Fee revenue |
$ |
112,097 |
$ |
46,654 |
$ |
26,295 |
$ |
7,878 |
$ |
192,924 |
$ |
195,375 |
$ |
77,269 |
$ |
- |
$ |
465,568 |
||||||||||||||||||
Total revenue |
$ |
115,757 |
$ |
47,749 |
$ |
26,625 |
$ |
7,903 |
$ |
198,034 |
$ |
200,147 |
$ |
80,181 |
$ |
- |
$ |
478,362 |
||||||||||||||||||
Net loss attributable to Korn/Ferry International |
$ |
(38,611) |
||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest |
19 |
|||||||||||||||||||||||||||||||||||
Other income, net |
(4,491) |
|||||||||||||||||||||||||||||||||||
Interest expense, net |
4,103 |
|||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
(29) |
|||||||||||||||||||||||||||||||||||
Income tax benefit |
(16,110) |
|||||||||||||||||||||||||||||||||||
Operating income (loss) |
$ |
26,514 |
$ |
6,969 |
$ |
6,641 |
$ |
754 |
$ |
40,878 |
$ |
(83,079) |
$ |
11,645 |
$ |
(24,563) |
(55,119) |
|||||||||||||||||||
Depreciation and amortization |
979 |
370 |
370 |
107 |
1,826 |
7,431 |
761 |
1,713 |
11,731 |
|||||||||||||||||||||||||||
Other income (loss), net |
3,472 |
340 |
175 |
37 |
4,024 |
570 |
105 |
(208) |
4,491 |
|||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
29 |
- |
- |
- |
29 |
- |
- |
- |
29 |
|||||||||||||||||||||||||||
EBITDA |
30,994 |
7,679 |
7,186 |
898 |
46,757 |
(75,078) |
12,511 |
(23,058) |
(38,868) |
|||||||||||||||||||||||||||
EBITDA margin |
27.6% |
16.5% |
27.3% |
11.4% |
24.2% |
(38.4%) |
16.2% |
(8.3%) |
||||||||||||||||||||||||||||
Integration/acquisition costs |
- |
- |
- |
- |
- |
3,027 |
- |
80 |
3,107 |
|||||||||||||||||||||||||||
Tradename write-offs |
- |
- |
- |
- |
- |
106,555 |
- |
- |
106,555 |
|||||||||||||||||||||||||||
Adjusted EBITDA |
$ |
30,994 |
$ |
7,679 |
$ |
7,186 |
$ |
898 |
$ |
46,757 |
$ |
34,504 |
$ |
12,511 |
$ |
(22,978) |
$ |
70,794 |
||||||||||||||||||
Adjusted EBITDA margin |
27.6% |
16.5% |
27.3% |
11.4% |
24.2% |
17.7% |
16.2% |
15.2% |
||||||||||||||||||||||||||||
Three Months Ended July 31, 2017 |
||||||||||||||||||||||||||||||||||||
Executive Search |
||||||||||||||||||||||||||||||||||||
North |
EMEA |
Asia |
Latin |
Subtotal |
Advisory |
RPO and |
Corporate |
Consolidated |
||||||||||||||||||||||||||||
Fee revenue |
$ |
91,833 |
$ |
40,121 |
$ |
21,578 |
$ |
7,659 |
$ |
161,191 |
$ |
179,453 |
$ |
60,610 |
$ |
- |
$ |
401,254 |
||||||||||||||||||
Total revenue |
$ |
95,205 |
$ |
41,058 |
$ |
21,880 |
$ |
7,664 |
$ |
165,807 |
$ |
183,296 |
$ |
65,814 |
$ |
- |
$ |
414,917 |
||||||||||||||||||
Net income attributable to Korn/Ferry International |
$ |
29,041 |
||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest |
388 |
|||||||||||||||||||||||||||||||||||
Other income, net |
(3,354) |
|||||||||||||||||||||||||||||||||||
Interest expense, net |
3,680 |
|||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
(30) |
|||||||||||||||||||||||||||||||||||
Income tax provision |
12,210 |
|||||||||||||||||||||||||||||||||||
Operating income (loss) |
$ |
22,070 |
$ |
6,675 |
$ |
3,141 |
$ |
1,026 |
$ |
32,912 |
$ |
19,055 |
$ |
8,245 |
$ |
(18,277) |
41,935 |
|||||||||||||||||||
Depreciation and amortization |
949 |
428 |
320 |
107 |
1,804 |
8,085 |
796 |
1,524 |
12,209 |
|||||||||||||||||||||||||||
Other income, net |
282 |
56 |
105 |
20 |
463 |
431 |
8 |
2,452 |
3,354 |
|||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
30 |
- |
- |
- |
30 |
- |
- |
- |
30 |
|||||||||||||||||||||||||||
EBITDA |
23,331 |
7,159 |
3,566 |
1,153 |
35,209 |
27,571 |
9,049 |
(14,301) |
57,528 |
|||||||||||||||||||||||||||
EBITDA margin |
25.4% |
17.8% |
16.5% |
15.1% |
21.8% |
15.4% |
14.9% |
14.3% |
||||||||||||||||||||||||||||
Restructuring charges, net |
- |
- |
40 |
- |
40 |
240 |
- |
- |
280 |
|||||||||||||||||||||||||||
Integration/acquisition costs |
- |
- |
- |
- |
- |
2,549 |
- |
39 |
2,588 |
|||||||||||||||||||||||||||
Adjusted EBITDA |
$ |
23,331 |
$ |
7,159 |
$ |
3,606 |
$ |
1,153 |
$ |
35,249 |
$ |
30,360 |
$ |
9,049 |
$ |
(14,262) |
$ |
60,396 |
||||||||||||||||||
Adjusted EBITDA margin |
25.4% |
17.8% |
16.7% |
15.1% |
21.9% |
16.9% |
14.9% |
15.0% |
View original content:http://www.prnewswire.com/news-releases/korn-ferry-announces-first-quarter-fiscal-2019-results-of-operations-300708297.html
SOURCE
Investor Relations: Gregg Kvochak, (310) 556-8550, Media: Dan Gugler, (310) 226-2645