Form: 8-K

Current report filing

December 9, 2015

Exhibit 99.1

For Immediate Release

Contacts:

Investor Relations: Gregg Kvochak, (310) 556-8550

For Media: Dan Gugler, (310) 226-2645

Korn Ferry International Announces Second Quarter Fiscal 2016 Results of Operations

Highlights

 

  •   Korn Ferry reports record fee revenue of $280.6 million in the second quarter of fiscal 2016, an increase of $24.9 million, or 9.7% ($41.3 million, or 16.2% on a constant currency basis), from Q2 FY’15, with increases across all segments on a constant currency basis:

 

Futurestep

     35.4

Leadership and Talent Consulting

     15.7

Executive Recruitment

     11.1

 

  •   Adjusted EBITDA margin was 16.4% in Q2 FY’16.

 

  •   Adjusted diluted earnings per share was $0.51 in Q2 FY’16, excluding $12.0 million of integration/acquisition costs, compared to diluted earnings per share of $0.51 in Q2 FY’15. Q2 FY’16 diluted earnings per share was $0.35.

 

  •   The Company declared a quarterly dividend of $0.10 per share on December 8, 2015, payable on January 15, 2016 to stockholders of record on December 21, 2015.

Los Angeles, CA, December 9, 2015 – Korn/Ferry International (NYSE: KFY), the preeminent global people and organizational advisory firm, today announced second quarter fee revenue of $280.6 million and adjusted diluted earnings per share of $0.51, excluding integration/acquisition costs of $12.0 million. On a GAAP basis, diluted earnings per share was $0.35 in the three months ended October 31, 2015.

“In our recently completed second fiscal quarter, I am proud to report that Korn Ferry generated the strongest topline results in the Company’s history, representing a 16% year-over-year increase in fee revenue on a constant currency basis,” said Gary D. Burnison, CEO, Korn Ferry. “Now with the close of our acquisition of Hay Group, we have unified two great organizations to create the preeminent advisor for an organization and its people. As a combined firm, we have an unrivaled ability to address the entire talent continuum, a move that affirms the critical role that people and leadership play in driving organization performance.”


Selected Financial Results

(dollars in millions, except per share amounts)

 

     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Fee revenue

   $ 280.6      $ 255.7      $ 548.0      $ 506.9   

Total revenue

   $ 291.4      $ 264.7      $ 570.7      $ 525.0   

Operating income

   $ 29.0      $ 34.4      $ 61.9      $ 53.0   

Operating margin

     10.3     13.5     11.3     10.5

Net income

   $ 18.0      $ 25.4      $ 41.1      $ 39.9   

Basic earnings per share

   $ 0.36      $ 0.52      $ 0.82      $ 0.82   

Diluted earnings per share

   $ 0.35      $ 0.51      $ 0.81      $ 0.80   
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

EBITDA Results (a):

        

EBITDA

   $ 34.0      $ 44.0      $ 75.0      $ 72.0   

EBITDA margin

     12.1     17.2     13.7     14.2
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Adjusted Results (b):

        

EBITDA (a)

   $ 46.0      $ 44.0      $ 87.7      $ 81.9   

EBITDA margin (a)

     16.4     17.2     16.0     16.2

Net income

   $ 25.8      $ 25.4      $ 49.3      $ 46.9   

Basic earnings per share

   $ 0.51      $ 0.52      $ 0.98      $ 0.96   

Diluted earnings per share

   $ 0.51      $ 0.51      $ 0.97      $ 0.94   

 

(a) EBITDA refers to earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to exclude restructuring charges and integration/acquisition costs. EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations).

 

(b) Adjusted results are non-GAAP financial measures that exclude the following (see attached reconciliations):

 

     Second Quarter      Year to Date  
     FY’16      FY’15      FY’16      FY’15  

Integration/acquisition costs

   $ 12.0       $ —         $ 12.7       $ —     

Restructuring charges, net

   $ —         $ —         $ —         $ 9.9   

Fee revenue was $280.6 million in Q2 FY’16, an increase of $24.9 million, or 9.7% ($41.3 million, or 16.2% on a constant currency basis), compared to Q2 FY’15, primarily due to increases of $10.1 million, $7.5 million, and $7.3 million in fee revenue in Futurestep, Executive Recruitment, and Leadership & Talent Consulting, respectively. The overall fee revenue increase was driven by fee revenue growth in certain of our major markets – financial services, life science/healthcare, technology and education/non-profit, partially offset by a decline in industrial and consumer goods.

Compensation and benefit expenses were $188.6 million in Q2 FY’16, an increase of $13.9 million, or 8.0%, compared to the year-ago quarter. The increase was driven, in part, by higher salaries (increase of $9.3 million) due to a 19.9% increase in the average consultant headcount in Q2 FY’16 compared to Q2 FY’15 and $3.3 million in integration costs associated with the Hay Group acquisition.

General and administrative expenses were $44.6 million in Q2 FY’16, an increase of $14.5 million compared to Q2 FY’15. The increase was driven by acquisition costs of $8.6 million that were incurred in Q2 FY’16 related to the Hay Group acquisition and from the fact that in Q2 FY’15, the Company received a $6.2 million insurance reimbursement that reduced legal fees in Q2 FY’15. Neutralizing the effect of these items, general and administrative expenses were essentially flat year-over-year.


Adjusted EBITDA was $46.0 million in Q2 FY’16, an increase of $2.0 million, or 4.5%, compared to Q2 FY’15. Adjusted EBITDA margin was 16.4% in Q2 FY’16 and 17.2% in Q2 FY’15. Adjusted EBITDA margin for Q2 FY’15 was favorably impacted (by approximately 90 basis points) by the insurance reimbursement discussed above, partially offset by higher other professional fees and additional performance-related bonus expense.

On a GAAP basis, operating income was $29.0 million in Q2 FY’16 and $34.4 million in Q2 FY’15, resulting in an operating margin of 10.3% in Q2 FY’16 compared to 13.5% in the year-ago quarter. The decrease in operating income was due to the increases in compensation and benefit expenses and general and administrative expenses as discussed above, offset by an increase in fee revenue.

Balance Sheet and Liquidity

Cash and marketable securities were $417.7 million at October 31, 2015, compared to $525.4 million at April 30, 2015. Cash and marketable securities decreased by $107.7 million from April 30, 2015, primarily due to Q1 FY’16 payments of FY’15 annual bonuses and $10.3 million in dividend payments made to stockholders during the year, partially offset by cash provided by operating activities. Net of amounts held in trust for deferred compensation plans and accrued bonuses, cash and marketable securities were $186.2 million and $235.6 million at October 31, 2015 and April 30, 2015, respectively. As of October 31, 2015 and April 30, 2015, we held $121.6 million and $143.4 million, respectively, of cash and cash equivalents in foreign locations, net of amounts held in trust for deferred compensation plans and bonuses.

The Company declared a quarterly dividend of $0.10 per share on December 8, 2015, payable on January 15, 2016 to stockholders of record on December 21, 2015.


Results by Segment

Selected Executive Recruitment Data

(dollars in millions)

 

     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Fee revenue

   $ 156.5      $ 149.0      $ 308.6      $ 297.4   

Total revenue

   $ 161.5      $ 154.4      $ 319.5      $ 308.6   

Operating income

   $ 39.2      $ 29.9      $ 74.1      $ 54.1   

Operating margin

     25.1     20.1     24.0     18.2

Ending number of consultants

     494        440        494        440   

Average number of consultants

     490        441        473        436   

Engagements billed

     3,152        3,054        4,845        4,937   

New engagements (a)

     1,380        1,261        2,752        2,513   
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

EBITDA Results (b):

        

EBITDA

   $ 40.6      $ 32.0      $ 77.5      $ 58.4   

EBITDA margin

     26.0     21.5     25.1     19.6
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Adjusted Results (c):

        

EBITDA (b)

   $ 40.6      $ 32.0      $ 77.5      $ 63.9   

EBITDA margin (b)

     26.0     21.5     25.1     21.5

 

(a) Represents new engagements opened in the respective period.

 

(b) 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 exclude the following (see attached reconciliations):

 

     Second Quarter      Year to Date  
     FY’16      FY’15      FY’16      FY’15  

Restructuring charges, net

   $  —         $  —         $  —         $ 5.5   

Executive Recruitment

Fee revenue was $156.5 million in Q2 FY’16, an increase of $7.5 million, or 5.0% ($16.6 million, or 11.1% on a constant currency basis), compared to Q2 FY’15. The overall increase in fee revenue was primarily attributable to a 3.2% increase in the number of engagements billed and a 1.6% increase in the weighted-average fees billed per engagement in Q2 FY’16 compared to Q2 FY’15. On a regional basis, the fee revenue increase was driven by a $10.1 million increase in North America, partially offset by a $2.3 million decrease in South America. On a constant currency basis, all regions, with the exception of South America, experienced year-over-year growth with North America at 13.3%, EMEA at 11.2% and Asia Pacific at 9.9%.

Adjusted EBITDA was $40.6 million and $32.0 million during Q2 FY’16 and Q2 FY’15, respectively. The increase in Adjusted EBITDA was driven by higher fee revenue and decreases in compensation and benefit expenses of $1.2 million and general and administrative expenses of $1.0 million.

Operating income was $39.2 million in Q2 FY’16, an increase of $9.3 million, or 31.1%, compared to Q2 FY’15, resulting in operating margin of 25.1% in Q2 FY’16 compared to 20.1% in Q2 FY’15. Operating income was impacted by all of the above items.


Selected Leadership & Talent Consulting Data

(dollars in millions)

 

     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Fee revenue

   $ 73.6      $ 66.3      $ 142.8      $ 129.9   

Total revenue

   $ 76.0      $ 68.5      $ 147.4      $ 133.9   

Operating income

   $ 7.8      $ 7.8      $ 15.3      $ 11.2   

Operating margin

     10.6     11.7     10.7     8.6

Ending number of consultants (a)

     184        131        184        131   

Staff utilization (b)

     71     71     70     70
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

EBITDA Results (c):

        

EBITDA

   $ 11.3      $ 10.9      $ 21.7      $ 17.8   

EBITDA margin

     15.4     16.4     15.2     13.7
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Adjusted Results (d):

        

EBITDA (c)

   $ 14.7      $ 10.9      $ 25.4      $ 20.6   

EBITDA margin (c)

     19.9     16.4     17.8     15.8

 

(a) Represents number of employees originating consulting services.

 

(b) Calculated by dividing the number of hours our full-time LTC professional staff record to engagements during the period, by the total available working hours during the same 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 the following (see attached reconciliations):

 

     Second Quarter      Year to Date  
     FY’16      FY’15      FY’16      FY’15  

Integration costs

   $ 3.3       $ —         $ 3.6       $ —     

Restructuring charges, net

   $ —         $ —         $ —         $ 2.8   

Leadership & Talent Consulting

Fee revenue was $73.6 million in Q2 FY’16, an increase of $7.3 million, or 11.0% ($10.4 million, or 15.7% on a constant currency basis), from the year-ago quarter. This increase is primarily attributed to higher consulting fee revenue of $7.3 million in Q2 FY’16 compared to Q2 FY’15. The increase in consulting fee revenue includes $6.5 million of fee revenue from Pivot Leadership which was acquired on March 1, 2015.

Adjusted EBITDA was $14.7 million during Q2 FY’16, an increase of $3.8 million (excluding integration costs of $3.3 million), or 34.9%, compared to Q2 FY’15 due to higher fee revenue, partially offset by an increase in compensation and benefit expenses of $3.5 million due to an increase in salaries and related payroll taxes primarily as a result of higher average consultant headcount in Q2 FY’16 compared to the year-ago quarter.


Operating income was $7.8 million in both Q2 FY’16 and Q2 FY’15, resulting in an operating margin of 10.6% in the current quarter compared to 11.7% in the year-ago quarter. Operating income was impacted by all of the above items as well as integration costs of $3.3 million incurred in Q2 FY’16.

Selected Futurestep Data

(dollars in millions)

 

     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Fee revenue

   $ 50.5      $ 40.4      $ 96.6      $ 79.6   

Total revenue

   $ 53.9      $ 41.8      $ 103.8      $ 82.5   

Operating income

   $ 6.9      $ 5.1      $ 13.1      $ 8.6   

Operating margin

     13.6     12.8     13.5     10.8

Engagements billed (a)

     893        711        1,363        1,104   

New engagements (b)

     462        411        933        777   
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

EBITDA Results (c):

        

EBITDA

   $ 7.5      $ 5.6      $ 14.3      $ 9.5   

EBITDA margin

     14.8     14.0     14.8     12.0
     Second Quarter     Year to Date  
     FY’16     FY’15     FY’16     FY’15  

Adjusted Results (d):

        

EBITDA (c)

   $ 7.5      $ 5.6      $ 14.3      $ 10.9   

EBITDA margin (c)

     14.8     14.0     14.8     13.8

 

(a) Represents search engagements billed.

 

(b) Represents new search 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 the following (see attached reconciliations):

 

     Second Quarter      Year to Date  
     FY’16      FY’15      FY’16      FY’15  

Restructuring charges, net

   $ —         $ —         $ —         $ 1.4   

Futurestep

Fee revenue was $50.5 million in Q2 FY’16, an increase of $10.1 million, or 25.0% ($14.3 million, or 35.4% on a constant currency basis), compared to the year-ago quarter. The higher fee revenue was driven by an increase in professional search of $5.6 million due to a 25.6% increase in engagements billed in Q2 FY’16 compared to Q2 FY’15 and a 5.4% increase in the weighted average fees billed per engagements. The rest of the increase was due to $4.5 million in higher fee revenue in recruitment process outsourcing in Q2 FY’16 compared to Q2 FY’15.

Adjusted EBITDA was $7.5 million during Q2 FY’16, an increase of $1.9 million, or 33.9%, compared to Q2 FY’15, due primarily to the increase in fee revenue, partially offset by higher compensation and benefit expenses of $7.0 million and an increase in general and administrative expenses of $1.0 million. The increase in compensation and benefit expenses was the result of a 33.5% increase in average headcount and an increase in the use of outside contractors, both related to the higher levels of fee revenue.


Operating income was $6.9 million in Q2 FY’16, an increase of $1.8 million, compared to Q2 FY’15, resulting in an operating margin of 13.6% in the current quarter compared to 12.8% in the year-ago quarter. Operating income was impacted by the items discussed above.

Outlook

Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, and excluding the impact of the Hay Group acquisition on Korn Ferry consolidated results:

 

  •   Q3 FY’16 stand-alone fee revenue is expected to range from $268 million to $278 million; and

 

  •   Q3 FY’16 stand-alone adjusted diluted earnings per share is likely to range from $0.50 to $0.56.

With respect to the legacy Hay Group, for the months of December and January, which are generally seasonal low points, we expect operating results to be as follows:

 

  •   Adjusted fee revenue between $75 million and $81 million ($68 million to $74 million including deferred revenue purchase accounting adjustments); and

 

  •   Adjusted EBITDA between $6 million and $8 million (negative EBITDA between $38 million to $49 million including deferred revenue purchase accounting adjustments, integration/acquisition costs, restructuring charges and retention bonuses).(1)

On a combined adjusted basis:

 

  •   Q3 FY’16 adjusted combined fee revenue is expected to be in the range of $343 million and $359 million; and

 

  •   Q3 FY’16 adjusted combined diluted earnings per share is likely to range from $0.48 to $0.56.

On a combined basis, measured by U.S. GAAP:

 

  •   Q3 FY’16 combined fee revenue is expected to be in the range of $336 million and $352 million; and

 

  •   Q3 FY’16 combined diluted loss per share is likely to range between ($0.16) to breakeven.

 

     Q3 FY’16
Fee Revenue
Outlook(2)
         Q3 FY’16
Earnings Per Share
Outlook(3)
 
         Low             High                  Low             High      
     (in millions)                   

Korn Ferry stand-alone fee revenue

   $ 268      $ 278     

Korn Ferry stand-alone adjusted diluted earnings per share

   $ 0.50      $ 0.56   

Hay Group adjusted fee revenue

     75        81     

Hay Group earnings per share contribution

     0.04        0.06   
  

 

 

   

 

 

        

Adjusted combined fee revenue

     343        359     

Increase in intangible asset amortization

     (0.02     (0.02

Hay Group deferred revenue write-off

     (7     (7  

Increase in common stock share count

     (0.04     (0.04
  

 

 

   

 

 

      

 

 

   

 

 

 

Combined US GAAP fee revenue

   $ 336      $ 352     

Adjusted combined diluted earnings per share

     0.48        0.56   
  

 

 

   

 

 

      

 

 

   

 

 

 
      

Hay Group deferred revenue write-off

     (0.08     (0.08
      

Integration/acquisition costs

     (0.22     (0.18
      

Restructuring charges

     (0.26     (0.22
      

Retention bonuses

     (0.03     (0.03
      

Impact from change in tax rate

     (0.05     (0.05
         

 

 

   

 

 

 
      

Combined US GAAP diluted earnings (loss) per share

   $ (0.16   $ 0.00   
         

 

 

   

 

 

 

 

(1)
     Q3 FY’16
Hay Group Adjusted
EBITDA and EBITDA
 
         Low              High      
     (in millions)  

Hay Group Adjusted EBITDA

   $ 8       $ 6   

Hay Group deferred revenue write-off

     (7      (7

Integration/acquisition costs

     (17      (21

Restructuring costs

     (20      (25

Retention bonuses

     (2      (2
  

 

 

    

 

 

 

Hay Group EBITDA

   $ (38    $ (49
  

 

 

    

 

 

 

 

(2) Korn Ferry stand-alone fee revenue is a non-GAAP financial measure that excludes Hay Group fee revenue and the deferred revenue write-off relating to Hay Group. Hay Group adjusted fee revenue and adjusted combined fee revenue are non-GAAP financial measures that exclude the deferred revenue write-off relating to Hay Group.

 

(3) Korn Ferry stand-alone adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed below in the table above. Adjusted combined diluted earnings per share is a non-GAAP financial measure that excludes the items listed below in the table above.

As previously disclosed, the integration of Hay Group will involve workforce alignment, consolidation of office space and the elimination of redundant general and administrative expenses. In order to achieve these cost synergies, we expect to incur restructuring charges in Q3 FY’16 of approximately $20 million to $25 million and expect savings of $25 million to $30 million on a run-rate basis. We believe that at the conclusion of this restructuring plan early in our next fiscal year, the combined Hay Group and legacy LTC Adjusted EBITDA margins will range between 14% to 18%.

Earnings Conference Call Webcast

The earnings conference call will be held today at 7:30 AM (EST) and hosted by CEO Gary Burnison, CFO Robert Rozek and SVP Finance Gregg Kvochak. The conference call will be webcast and available online at www.kornferry.com, accessible through the Investor Relations section. 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 the preeminent global people and organizational advisory firm. We help leaders, organizations and societies succeed by releasing the full power and potential of people. Our nearly 7,000 colleagues deliver services through Korn Ferry and our Hay Group and Futurestep divisions. Visit www.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 and the acquisition of Hay Group. 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, the dependence on attracting and retaining qualified and experienced consultants, our ability to successfully integrate acquired businesses including Hay Group, our ability to recognize the anticipated benefits of the acquisition of Hay Group which may be affected by, among other things, competition, our ability to grow and manage growth profitability, maintain relationships with customers and suppliers and retain key employees, costs related to the acquisition of Hay Group, maintaining our brand name and professional reputation, potential legal liability, 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 with our growth, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities, limited protection of our intellectual property, our ability to enhance and develop new technology, our ability to develop new products and services, consolidation of industries we serve, our ability to successfully recover from a disaster or other business continuity problems, changes in our accounting estimates/assumptions, impairment of goodwill and other intangible assets, deferred tax assets, seasonality, our ability to successfully rationalize our cost structure 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 Commission. Korn 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, adjusted to exclude restructuring charges and integration/acquisition costs, net of income tax effect;

 

  •   adjusted basic and diluted earnings per share, adjusted to exclude restructuring charges and integration/acquisition costs, net of income tax effect;

 

  •   constant currency 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;

 

  •   adjusted EBITDA, which is EBITDA further adjusted to exclude restructuring charges and integration/acquisition costs, and adjusted EBITDA margin;

 

  •   Hay Group EBITDA, which is EBITDA (as described above) for Hay Group, and Hay Group adjusted EBITDA, which is adjusted EBITDA (as described above) for Hay Group, further adjusted to exclude the deferred revenue write-off relating to Hay Group;

 

  •   Korn Ferry stand-alone fee revenue, which excludes Hay Group fee revenue and the deferred revenue write-off relating to Hay Group, and Hay Group adjusted fee revenue and adjusted combined fee revenue, which exclude the deferred revenue write-off relating to Hay Group;

 

  •   Korn Ferry stand-alone adjusted diluted earnings per share, which excludes Hay Group contribution to earnings per share, increase in amortization expense relating to the additional intangible assets acquired on the acquisition date, increase in common stock issued as part of the acquisition purchase price, incremental charges relating to Hay Group purchase accounting (deferred revenue write-off), and incremental charges associated with the acquisition (the “incremental acquisition charges”), including integration/acquisition costs, restructuring charges, retention bonuses and impact from the change in tax rate; and

 

  •   adjusted combined diluted earnings per share, adjusted to exclude the incremental acquisition charges.


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. The use of these non-GAAP financial measures facilitate comparisons to Korn Ferry’s historical performance. Korn Ferry includes these 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. In the case of constant currency amounts, management believes the presentation of such information provides meaningful 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. In the case of adjusted stand-alone results, management believes the presentation of such information provides investors with the ability to make period-to-period comparisons of Korn Ferry’s operating results, net of the acquisition of Hay Group. Management believes the presentation of adjusted consolidated combined diluted earnings per share provides investors with greater visibility into the impact of the Hay Group acquisition without regard to incremental charges and transaction costs.

[Tables attached]


KORN FERRY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

 

     Three Months Ended
October 31,
    Six Months Ended
October 31,
 
     2015     2014     2015     2014  
     (unaudited)  

Fee revenue

   $ 280,600      $ 255,702      $ 547,994      $ 506,890   

Reimbursed out-of-pocket engagement expenses

     10,739        9,015        22,680        18,152   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     291,339        264,717        570,674        525,042   
  

 

 

   

 

 

   

 

 

   

 

 

 

Compensation and benefits

     188,608        174,656        368,064        343,762   

General and administrative expenses

     44,563        30,145        82,054        67,513   

Reimbursed expenses

     10,739        9,015        22,680        18,152   

Cost of services

     11,236        9,706        21,356        19,171   

Depreciation and amortization

     7,180        6,779        14,603        13,549   

Restructuring charges, net

     —          —          —          9,886   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     262,326        230,301        508,757        472,033   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,013        34,416        61,917        53,009   

Other (loss) income, net

     (2,646     2,362        (2,720     4,539   

Interest expense, net

     (544     (920     (843     (1,714
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries

     25,823        35,858        58,354        55,834   

Equity in earnings of unconsolidated subsidiaries

     540        452        1,265        918   

Income tax provision

     8,392        10,907        18,566        16,816   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 17,971      $ 25,403      $ 41,053      $ 39,936   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share:

        

Basic

   $ 0.36      $ 0.52      $ 0.82      $ 0.82   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.35      $ 0.51      $ 0.81      $ 0.80   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average common shares outstanding:

        

Basic

     49,981        49,082        49,737        48,893   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     50,362        49,740        50,233        49,720   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends declared per share:

   $ 0.10      $ —        $ 0.20      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 


KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY SEGMENT

(in thousands)

(unaudited)

 

     Three Months Ended October 31,     Six Months Ended October 31,  
     2015           2014     % Change     2015           2014     % Change  

Fee Revenue:

                

Executive recruitment:

                

North America

   $ 92,788        $ 82,729        12   $ 183,147        $ 165,029        11

EMEA

     36,570          36,675        (0 %)      72,660          76,972        (6 %) 

Asia Pacific

     20,998          21,157        (1 %)      40,213          40,691        (1 %) 

South America

     6,116          8,369        (27 %)      12,542          14,653        (14 %) 
  

 

 

     

 

 

     

 

 

     

 

 

   

Total executive recruitment

     156,472          148,930        5     308,562          297,345        4

Leadership & Talent Consulting

     73,602          66,408        11     142,842          129,956        10

Futurestep

     50,526          40,364        25     96,590          79,589        21
  

 

 

     

 

 

     

 

 

     

 

 

   

Total fee revenue

     280,600          255,702        10     547,994          506,890        8

Reimbursed out-of-pocket engagement expenses

     10,739          9,015        19     22,680          18,152        25
  

 

 

     

 

 

     

 

 

     

 

 

   

Total revenue

   $ 291,339        $ 264,717        10   $ 570,674        $ 525,042        9
  

 

 

     

 

 

     

 

 

     

 

 

   
           Margin           Margin           Margin           Margin  

Operating Income:

                

Executive recruitment:

                

North America

   $ 27,422        29.6   $ 19,117        23.1   $ 51,567        28.2   $ 38,115        23.1

EMEA

     6,929        18.9     5,621        15.3     13,205        18.2     8,264        10.7

Asia Pacific

     3,907        18.6     3,424        16.2     6,893        17.1     5,946        14.6

South America

     970        15.9     1,699        20.3     2,478        19.8     1,772        12.1
  

 

 

     

 

 

     

 

 

     

 

 

   

Total executive recruitment

     39,228        25.1     29,861        20.1     74,143        24.0     54,097        18.2

Leadership & Talent Consulting

     7,778        10.6     7,762        11.7     15,273        10.7     11,222        8.6

Futurestep

     6,896        13.6     5,150        12.8     13,085        13.5     8,607        10.8

Corporate

     (24,889       (8,357       (40,584       (20,917  
  

 

 

     

 

 

     

 

 

     

 

 

   

Total operating income

   $ 29,013        10.3   $ 34,416        13.5   $ 61,917        11.3   $ 53,009        10.5
  

 

 

     

 

 

     

 

 

     

 

 

   


KORN FERRY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

     October 31,
2015
    April 30,
2015
 
     (unaudited)        

ASSETS

    

Cash and cash equivalents

   $ 270,743      $ 380,838   

Marketable securities

     12,109        25,757   

Receivables due from clients, net of allowance for doubtful accounts of $11,291 and $9,958 respectively

     230,442        188,543   

Income taxes and other receivables

     20,956        10,966   

Deferred income taxes

     1,497        3,827   

Prepaid expenses and other assets

     38,504        31,054   
  

 

 

   

 

 

 

Total current assets

     574,251        640,985   
  

 

 

   

 

 

 

Marketable securities, non-current

     134,799        118,819   

Property and equipment, net

     61,665        62,088   

Cash surrender value of company owned life insurance policies, net of loans

     105,472        102,691   

Deferred income taxes

     51,528        56,014   

Goodwill

     250,981        254,440   

Intangible assets, net

     43,547        47,901   

Investments and other assets

     49,945        34,863   
  

 

 

   

 

 

 

Total assets

   $ 1,272,188      $ 1,317,801   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Accounts payable

   $ 17,235      $ 19,238   

Income taxes payable

     5,082        3,813   

Compensation and benefits payable

     142,531        219,364   

Other accrued liabilities

     69,692        63,595   
  

 

 

   

 

 

 

Total current liabilities

     234,540        306,010   
  

 

 

   

 

 

 

Deferred compensation and other retirement plans

     174,345        173,432   

Other liabilities

     23,851        23,110   
  

 

 

   

 

 

 

Total liabilities

     432,736        502,552   
  

 

 

   

 

 

 

Stockholders’ equity

    

Common stock: $0.01 par value, 150,000 shares authorized, 63,586 and 62,863 shares issued and 51,287 and 50,573 shares outstanding, respectively

     473,370        463,839   

Retained earnings

     422,797        392,033   

Accumulated other comprehensive loss, net

     (56,715     (40,623
  

 

 

   

 

 

 

Total stockholders’ equity

     839,452        815,249   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,272,188      $ 1,317,801   
  

 

 

   

 

 

 


KORN FERRY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

RECONCILIATION OF AS REPORTED (GAAP) TO AS ADJUSTED (NON-GAAP)

(in thousands, except per share amounts)

(unaudited)

 

     Three Months Ended
October 31, 2015
    Three Months Ended
October 31, 2014
 
     As Reported     Adjustments     As Adjusted     As Reported     Adjustments      As Adjusted  

Fee revenue

   $ 280,600        $ 280,600      $ 255,702         $ 255,702   

Reimbursed out-of-pocket engagement expenses

     10,739          10,739        9,015           9,015   
  

 

 

     

 

 

   

 

 

      

 

 

 

Total revenue

     291,339          291,339        264,717           264,717   
  

 

 

     

 

 

   

 

 

      

 

 

 

Compensation and benefits

     188,608        (3,310     185,298        174,656           174,656   

General and administrative expenses

     44,563        (8,684     35,879        30,145           30,145   

Reimbursed expenses

     10,739          10,739        9,015           9,015   

Cost of services

     11,236          11,236        9,706           9,706   

Depreciation and amortization

     7,180          7,180        6,779           6,779   

Restructuring charges, net

     —          —          —          —          —           —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     262,326        (11,994     250,332        230,301        —           230,301   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income

     29,013        11,994        41,007        34,416        —           34,416   

Other (loss) income, net

     (2,646       (2,646     2,362           2,362   

Interest expense, net

     (544       (544     (920        (920
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries

     25,823        11,994        37,817        35,858        —           35,858   

Equity in earnings of unconsolidated subsidiaries

     540          540        452           452   

Income tax provision (1) (2)

     8,392        4,168        12,560        10,907           10,907   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net income

   $ 17,971      $ 7,826      $ 25,797      $ 25,403      $ —         $ 25,403   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings per common share:

             

Basic

   $ 0.36        $ 0.51      $ 0.52         $ 0.52   
  

 

 

     

 

 

   

 

 

      

 

 

 

Diluted

   $ 0.35        $ 0.51      $ 0.51         $ 0.51   
  

 

 

     

 

 

   

 

 

      

 

 

 

Weighted-average common shares outstanding:

             

Basic

     49,981          49,981        49,082           49,082   
  

 

 

     

 

 

   

 

 

      

 

 

 

Diluted

     50,362          50,362        49,740           49,740   
  

 

 

     

 

 

   

 

 

      

 

 

 

Explanation of Non-GAAP Adjustments

 

(1) The adjustments result in an effective tax rate of 33% for the as adjusted amounts for the three months ended October 31, 2015.
(2) The three months ended October 31, 2015 includes the tax effect on integration/acquisition costs.


KORN FERRY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

RECONCILIATION OF AS REPORTED (GAAP) TO AS ADJUSTED (NON-GAAP)

(in thousands, except per share amounts)

(unaudited)

 

     Six Months Ended     Six Months Ended  
     October 31, 2015     October 31, 2014  
     As Reported     Adjustments     As Adjusted     As Reported     Adjustments     As Adjusted  

Fee revenue

   $ 547,994        $ 547,994      $ 506,890        $ 506,890   

Reimbursed out-of-pocket engagement expenses

     22,680          22,680        18,152          18,152   
  

 

 

     

 

 

   

 

 

     

 

 

 

Total revenue

     570,674          570,674        525,042          525,042   
  

 

 

     

 

 

   

 

 

     

 

 

 

Compensation and benefits

     368,064        (3,639     364,425        343,762          343,762   

General and administrative expenses

     82,054        (9,029     73,025        67,513          67,513   

Reimbursed expenses

     22,680          22,680        18,152          18,152   

Cost of services

     21,356          21,356        19,171          19,171   

Depreciation and amortization

     14,603          14,603        13,549          13,549   

Restructuring charges, net

     —          —          —          9,886        (9,886     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     508,757        (12,668     496,089        472,033        (9,886     462,147   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     61,917        12,668        74,585        53,009        9,886        62,895   

Other (loss) income, net

     (2,720       (2,720     4,539          4,539   

Interest expense, net

     (843       (843     (1,714       (1,714
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries

     58,354        12,668        71,022        55,834        9,886        65,720   

Equity in earnings of unconsolidated subsidiaries

     1,265          1,265        918          918   

Income tax provision (1) (2)

     18,566        4,383        22,949        16,816        2,942        19,758   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 41,053      $ 8,285      $ 49,338      $ 39,936      $ 6,944      $ 46,880   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share:

            

Basic

   $ 0.82        $ 0.98      $ 0.82        $ 0.96   
  

 

 

     

 

 

   

 

 

     

 

 

 

Diluted

   $ 0.81        $ 0.97      $ 0.80        $ 0.94   
  

 

 

     

 

 

   

 

 

     

 

 

 

Weighted-average common shares outstanding:

            

Basic

     49,737          49,737        48,893          48,893   
  

 

 

     

 

 

   

 

 

     

 

 

 

Diluted

     50,233          50,233        49,720          49,720   
  

 

 

     

 

 

   

 

 

     

 

 

 

Explanation of Non-GAAP Adjustments

 

(1) The adjustments result in an effective tax rate of 32% and 30% for the as adjusted amounts for the six months ended October 31, 2015 and 2014, respectively.
(2) The six months ended October 31, 2015 includes the tax effect on integration/acquisition costs, while the six month ended October 31, 2014 includes the tax effect on restructuring charges.


KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in thousands)

(unaudited)

 

    Three Months Ended October 31, 2015  
    Executive Recruitment                          
    North
America
    EMEA     Asia Pacific     South
America
    Subtotal     Leadership
& Talent
Consulting
    Futurestep     Corporate     Consolidated  

Fee revenue

  $ 92,788      $ 36,570      $ 20,998      $ 6,116      $ 156,472      $ 73,602      $ 50,526      $ —        $ 280,600   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

                  $ 17,971   

Other loss, net

                    2,646   

Interest expense, net

                    544   

Equity in earnings of unconsolidated subsidiaries, net

                    (540

Income tax provision

                    8,392   
                 

 

 

 

Operating income (loss)

  $ 27,422      $ 6,929      $ 3,907      $ 970      $ 39,228      $ 7,778      $ 6,896      $ (24,889     29,013   

Depreciation and amortization

    832        232        223        73        1,360        3,588        578        1,654        7,180   

Other (loss) income, net

    (127     7        (6     33        (93     (17     8        (2,544     (2,646

Equity in earnings of unconsolidated subsidiaries, net

    140        —          —          —          140        —          —          400        540   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    28,267        7,168        4,124        1,076        40,635        11,349        7,482        (25,379     34,087   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    30.5     19.6     19.6     17.6     26.0     15.4     14.8       12.1

Integration/acquisition costs

    —          —          —          —          —          3,310        —          8,684        11,994   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 28,267      $ 7,168      $ 4,124      $ 1,076      $ 40,635      $ 14,659      $ 7,482      $ (16,695   $ 46,081   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    30.5     19.6     19.6     17.6     26.0     19.9     14.8       16.4
    Three Months Ended October 31, 2014  
    Executive Recruitment                          
    North
America
    EMEA     Asia Pacific     South
America
    Subtotal     Leadership
& Talent
Consulting
    Futurestep     Corporate     Consolidated  

Fee revenue

  $ 82,729      $ 36,675      $ 21,157      $ 8,369      $ 148,930      $ 66,408      $ 40,364      $ —        $ 255,702   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

                  $ 25,403   

Other income, net

                    (2,362

Interest expense, net

                    920   

Equity in earnings of unconsolidated subsidiaries, net

                    (452

Income tax provision

                    10,907   
                 

 

 

 

Operating income (loss)

  $ 19,117      $ 5,621      $ 3,424      $ 1,699      $ 29,861      $ 7,762      $ 5,150      $ (8,357     34,416   

Depreciation and amortization

    891        446        261        85        1,683        3,279        459        1,358        6,779   

Other income (loss), net

    194        (1     149        13        355        (172     25        2,154        2,362   

Equity in earnings of unconsolidated subsidiaries, net

    110        —          —          —          110        —          —          342        452   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    20,312        6,066        3,834        1,797        32,009        10,869        5,634        (4,503     44,009   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    24.6     16.5     18.1     21.5     21.5     16.4     14.0       17.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 20,312      $ 6,066      $ 3,834      $ 1,797      $ 32,009      $ 10,869      $ 5,634      $ (4,503   $ 44,009   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    24.6     16.5     18.1     21.5     21.5     16.4     14.0       17.2


KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in thousands)

(unaudited)

 

    Six Months Ended October 31, 2015  
    Executive Recruitment                          
    North
America
    EMEA     Asia Pacific     South
America
    Subtotal     Leadership
& Talent
Consulting
    Futurestep     Corporate     Consolidated  

Fee revenue

  $ 183,147      $ 72,660      $ 40,213      $ 12,542      $ 308,562      $ 142,842      $ 96,590      $ —        $ 547,994   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

                  $ 41,053   

Other loss, net

                    2,720   

Interest expense, net

                    843   

Equity in earnings of unconsolidated subsidiaries, net

                    (1,265

Income tax provision

                    18,566   
                 

 

 

 

Operating income (loss)

  $ 51,567      $ 13,205      $ 6,893      $ 2,478      $ 74,143      $ 15,273      $ 13,085      $ (40,584     61,917   

Depreciation and amortization

    1,659        597        469        151        2,876        7,336        1,163        3,228        14,603   

Other (loss) income, net

    (95     150        12        272        339        (880     8        (2,187     (2,720

Equity in earnings of unconsolidated subsidiaries, net

    226        —          —          —          226        —          —          1,039        1,265   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    53,357        13,952        7,374        2,901        77,584        21,729        14,256        (38,504     75,065   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    29.1     19.2     18.3     23.1     25.1     15.2     14.8       13.7

Integration/acquisition costs

    —          —          —          —          —          3,639        —          9,029        12,668   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 53,357      $ 13,952      $ 7,374      $ 2,901      $ 77,584      $ 25,368      $ 14,256      $ (29,475   $ 87,733   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    29.1     19.2     18.3     23.1     25.1     17.8     14.8       16.0
    Six Months Ended October 31, 2014  
    Executive Recruitment                          
    North
America
    EMEA     Asia Pacific     South
America
    Subtotal     Leadership
& Talent
Consulting
    Futurestep     Corporate     Consolidated  

Fee revenue

  $ 165,029      $ 76,972      $ 40,691      $ 14,653      $ 297,345      $ 129,956      $ 79,589      $ —        $ 506,890   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

                  $ 39,936   

Other income, net

                    (4,539

Interest expense, net

                    1,714   

Equity in earnings of unconsolidated subsidiaries, net

                    (918

Income tax provision

                    16,816   
                 

 

 

 

Operating income (loss)

  $ 38,115      $ 8,264      $ 5,946      $ 1,772      $ 54,097      $ 11,222      $ 8,607      $ (20,917     53,009   

Depreciation and amortization

    1,795        935        555        170        3,455        6,531        905        2,658        13,549   

Other income, net

    323        45        258        46        672        45        23        3,799        4,539   

Equity in earnings of unconsolidated subsidiaries, net

    178        —          —          —          178        —          —          740        918   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    40,411        9,244        6,759        1,988        58,402        17,798        9,535        (13,720     72,015   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    24.5     12.0     16.6     13.6     19.6     13.7     12.0       14.2

Restructuring charges, net

    1,151        3,987        17        377        5,532        2,758        1,424        172        9,886   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 41,562      $ 13,231      $ 6,776      $ 2,365      $ 63,934      $ 20,556      $ 10,959      $ (13,548   $ 81,901   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    25.2     17.2     16.7     16.1     21.5     15.8     13.8       16.2