Investor Relations

Press Release

Korn Ferry Announces First Quarter Fiscal 2019 Results of Operations

September 6, 2018

LOS ANGELES, Sept. 6, 2018 /PRNewswire/ --

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 on September 5, 2018 payable on October 15, 2018 to stockholders of record on September 28, 2018.

Korn/Ferry International (NYSE: KFY), a global organizational consulting firm, today announced first quarter fee revenue of $465.6 million.  First quarter diluted loss per share was $0.70 and Adjusted diluted earnings per share was $0.78.  Adjusted diluted earnings per share for the first quarter excludes the $106.6 million charge as discussed above and $3.1 million related to retention awards from a prior acquisition, or $1.48 per share.

"I am pleased to report fee revenue of approximately $466 million and strong profits, with Adjusted EBITDA of approximately $71 million during our recently completed first quarter.  Overall, our revenues are up 16% year over year, with balanced growth across the firm," said Gary D. Burnison, CEO of Korn Ferry.  "As disclosed last quarter, we are sunsetting our legacy logos and migrating to one unified brand – Korn Ferry.  Over the next 15 months, we will continue to move our organization towards an industry, solution and geographic orientation to capture the substantial opportunity we have as an organizational consulting firm."

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 $465.6 million in Q1 FY'19, an increase of 16.0% (15.7% increase on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was due to organic growth in all solutions.

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 $106.6 million tradename write-offs in Q1 FY'19 and an increase in compensation and benefits, partially offset by an increase in fee revenue.

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 $192.9 million in Q1 FY'19, an increase of $31.7 million or 19.7% (19.3% on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was attributable to higher fee revenue in all regions.

Operating income was $40.9 million in Q1 FY'19 compared to $32.9 million in Q1 FY'18. Operating margin was 21.2% in Q1 FY'19 compared to 20.4% in the year-ago quarter.  The increase in operating income was due to higher fee revenue in Q1 FY'19 compared to Q1 FY'18, partially offset by an increase in compensation and benefits expense driven by 3.6% increase in average headcount and an increase in performance related bonus expense.

Adjusted EBITDA was $46.8 million in Q1 FY'19 with an Adjusted EBITDA margin of 24.2% compared to $35.2 million and 21.9%, respectively, in the year-ago quarter.

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 $195.4 million in Q1 FY'19 compared to $179.5 million in Q1 FY'18, an increase of $15.9 million or 8.9% (8.6% on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was driven by increases in each of our Advisory solution areas, primarily from Consulting.

Operating loss was $83.1 million in Q1 FY'19 with an operating margin of (42.5%) compared to operating income of $19.1 million and an operating margin of 10.6% in the year-ago quarter.  The change of $102.2 million from operating income in the year-ago quarter to operating loss in the current quarter was primarily due to the tradename write-offs in Q1 FY'19 of $106.6 million.

Adjusted EBITDA was $34.5 million in Q1 FY'19 with an Adjusted EBITDA margin of 17.7% compared to $30.4 million and 16.9%, respectively, in the year-ago quarter.

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 $77.3 million in Q1 FY'19, an increase of $16.7 million or 27.6% (27.2% increase on a constant currency basis), compared to the year-ago quarter.  The higher fee revenue was primarily driven by an increase in fee revenue in recruitment process outsourcing and professional search of $9.3 million and $7.4 million, respectively, in Q1 FY'19 compared to Q1 FY'18.

Operating income was $11.6 million in Q1 FY'19, an increase of $3.4 million compared to Q1 FY'18 operating income of $8.2 million.  Operating margin was 15.1% in the current quarter compared to 13.6% in the year-ago quarter. 

EBITDA was $12.5 million during Q1 FY'19, an increase of $3.5 million compared to Q1 FY'18.  EBITDA margin was 16.2% in Q1 FY'19 and 14.9% in Q1 FY'18.

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
Earnings Per Share Outlook
(1)




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 4:30 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek and SVP Finance Gregg Kvochak.  The conference call will be webcast and available online at ir.kornferry.com.  We will also post to this section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.

About Korn Ferry

Korn Ferry is a global organizational consulting firm.  We help clients synchronize strategy and talent to drive superior performance.  We work with organizations to design their structures, roles, and responsibilities.  We help them hire the right people to bring their strategy to life.  And we advise them on how to reward, develop, and motivate their people.  Visit kornferry.com for more information.

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 Korn Ferry's current expectations.  These statements, which include words such as "believes", "expects" or "likely", include references to our outlook.  Readers are cautioned not to place undue reliance on such statements.  Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry.  The potential risks and uncertainties include those relating to competition, changes in demand for our services as a result of automation, the dependence on attracting and retaining qualified and experienced consultants, our ability to maintain relationships with customers and suppliers and retain key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, the portability of client relationships, global and local political or economic developments in or affecting countries where we have operations, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities, changes to data security, data privacy and data protection laws, limited protection of our intellectual property, our ability to enhance and develop new technology, our ability to develop new products and services, the utilization and billing rates of our consultants, our ability to successfully recover from a disaster or other business continuity problems, changes in our accounting estimates/assumptions, tax accounting effects of the Tax Act, impairment of goodwill and other intangible assets, deferred tax assets that we may not be able to use, seasonality, risks related to the integration of recently acquired businesses and employment liability risk.  For a detailed description of risks and uncertainties that could cause differences, please refer to Korn Ferry's periodic filings with the Securities and Exchange CommissionKorn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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 Korn Ferry's performance by excluding certain charges and other items that may not be indicative of Korn Ferry's ongoing operating results.  These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry.  These charges represent 1) costs we incurred to acquire and integrate a portion of our Advisory business, 2) charges we incurred to restructure the combined company due to the acquisition of a portion of our Advisory business, and 3) tradename write-offs associated with the rebranding plan initiated by Korn Ferry.  The use of non-GAAP financial measures facilitates comparisons to Korn Ferry's historical performance.  Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making.  Management further believes that EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company.  In the case of constant currency amounts, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company's operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making. 

[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
America



EMEA



Asia
Pacific



Latin
America



Subtotal



Advisory



RPO and
Professional
Search



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
America



EMEA



Asia
Pacific



Latin
America



Subtotal



Advisory



RPO and
Professional
Search



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%


 

Cision View original content:http://www.prnewswire.com/news-releases/korn-ferry-announces-first-quarter-fiscal-2019-results-of-operations-300708297.html

SOURCE Korn Ferry

Investor Relations: Gregg Kvochak, (310) 556-8550, Media: Dan Gugler, (310) 226-2645

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