CHICAGO, April 24, 2017 /PRNewswire/ -- Heidrick &
Struggles International, Inc. (Nasdaq: HSII), a premier provider of
senior-level executive search, leadership consulting and culture
shaping services globally, today announced financial results for
its first quarter ended March 31,
2017.
(In thousands,
except per share amounts)
|
Three Months
Ended
|
|
Three months
ended
|
(Unaudited)
|
March 31,
2017
|
|
March 31,
2016
|
|
GAAP
|
|
Adjusted*
|
|
GAAP
|
|
|
|
|
|
|
Net revenue
(before reimbursements)
|
$140,006
|
|
$140,006
|
|
$130,189
|
Operating
income
|
6,638
|
|
8,138
|
|
3,868
|
Net
income
|
650
|
|
3,646
|
|
1,325
|
Diluted Earnings
per Share
|
$0.03
|
|
$0.19
|
|
$0.07
|
|
*Adjusted operating
income, net income and diluted earnings per share reflect results
that exclude the impact of a cash settlement with the HMRC related
to the taxation of a legacy U.K. benefit trust
obligation.
|
Krishnan Rajagopalan, Heidrick
& Struggles Acting President and Chief Executive Officer, said,
"We are pleased with first quarter growth in revenue and
profitability. Our Executive Search business showed solid
results and has an improved backlog going into the second
quarter. We continue to invest in consultant talent to drive
future growth. Leadership Consulting continues to grow in
size and significance, though it will show quarter to quarter
variability in results as it continues to scale. Culture
Shaping started off the year slower than we had expected, but our
team remains confident in the growth potential for culture-related
offerings. The year-over-year improvements in operating
income and Adjusted EBITDA(2) reflect the increase in
revenue without a corresponding increase in expenses."
Consolidated net revenue (revenue before reimbursements)
increased 7.5 percent, or $9.8
million, to $140.0 million
from $130.2 million in the 2016 first
quarter, and increased 9.6 percent, or $12.5
million, in constant currency.
Executive Search net revenue increased 7.6 percent year over
year, or $8.8 million, to
$124.5 million from $115.7 million in the 2016 first quarter.
Excluding the impact of exchange rate fluctuations revenue
increased $10.6 million or 9.1
percent. All three regions contributed to first quarter
year-over-year revenue growth in Executive Search, with Americas up
5.1 percent, Europe up 12.0
percent (21.0 percent on a constant currency basis), and
Asia Pacific up 11.9 percent (11.0
percent on a constant currency basis). The Industrial,
Healthcare & Life Sciences and Consumer industry practice
groups were the primary drivers of the year-over-year growth.
Reflecting the company's well-established development and training
program, 28 people were promoted to consultants as Principals
effective January 1, 2017 and six
were promoted from Principal to Partner. There were 363
Executive Search consultants at March 31,
2017 compared to 313 at March
31, 2016. Mostly reflecting the large number of
promotions in the quarter, productivity, as measured by annualized
Executive Search net revenue per consultant, was $1.4 million in the 2017 first quarter compared
to $1.5 million in the 2016 first
quarter. The number of confirmed searches in the 2017 first quarter
increased 7.8 percent compared to the 2016 first quarter and the
average revenue per executive search was $103,300 compared to $103,600 in the 2016 first quarter.
Leadership Consulting net revenue increased 59.6 percent, or
$3.7 million, to $9.8 million from $6.1
million in the 2016 first quarter. Excluding the
impact of exchange rate fluctuations, which negatively impacted
Leadership Consulting revenue by $0.7
million, revenue increased $4.4
million or 71.8 percent. The year-over-year increase mostly
reflects the acquisitions of Decision Strategies International
(DSI) in February 2016 and Philosophy
IB in September 2016. There
were 20 Leadership Consulting consultants at March 31, 2017 compared to 19 at March 31, 2016.
Culture Shaping net revenue declined 31.0 percent, or
$2.5 million, to $5.8 million from $8.3
million in the 2016 first quarter. Excluding the
impact of exchange rate fluctuations, which negatively impacted
Culture Shaping revenue by $0.2
million, revenue declined $2.4
million or 29.0 percent. The decline in revenue
reflected lower consulting revenue and a decline in enterprise
agreements as a result of a slower than expected start to the
year. There were 18 Culture Shaping consultants at
March 31, 2017 compared to 17 at
March 31, 2016.
On March 31, 2017, the company
reached a settlement with Her Majesty's Revenue & Customs
("HMRC") in the United Kingdom
regarding HMRC's challenge of the tax treatment of certain
contributions made to Employee Benefits Trusts ("EBT") between 2002
and 2008. The net impact recorded in the 2017 first quarter
was $3.7 million, less than HMRC's
proposed adjustment of $4.8 million
as valued on December 31, 2016.
HMRC had challenged that the contributions made to the Trusts
should have been subject to Pay As You Earn Tax and Class 1
National Insurance Contributions in the United Kingdom.
Heidrick & Struggles, among other companies, was first notified
by HMRC of its challenge in 2010 and had been appealing since, as
documented in the company's filings with the SEC.
Consolidated salaries and employee benefits expense in the 2017
first quarter increased 6.7 percent, or $6.1
million, to $97.2 million
from $91.1 million in the 2016 first
quarter. Fixed compensation expense increased $6.4 million, mostly reflecting compensation
related to the acquisitions made in 2016 and new hires, primarily
in Search. The increase also reflects $1.5 million related to the settlement with the
HMRC as noted above. Variable compensation expense decreased
$0.3 million. The composition
of salaries and employee benefits, between fixed and variable
expense, reflects investments the company made in 2016 including a
large increase in new consultants with higher fixed compensation
who have yet to reach full productivity. Salaries and employee
benefits expense was 69.5 percent of net revenue for the quarter
compared to 70.0 percent in the 2016 first quarter.
General and administrative expenses increased 2.6 percent, or
$0.9 million, to $36.1 million from $35.2 million in the 2016
first quarter. Most of this increase reflects costs
associated with ongoing general and administrative expenses related
to the acquisitions made in 2016, including the expense of
third-party consultants and contractors to execute work for
leadership consulting services. As a percentage of net
revenue, general and administrative expenses were 25.8 percent
compared to 27.0 percent in the 2016 first quarter.
Operating income in the 2017 first quarter increased 71.6
percent to $6.6 million and operating
margin was 4.7 percent. This compares to operating income of
$3.9 million and operating margin of
3.0 percent in the 2016 first quarter. Adjusted
EBITDA(2) in the 2017 first quarter increased 14.0
percent, or $1.5 million, to
$12.3 million compared to
$10.8 million in the 2016 first
quarter. The Adjusted EBITDA margin (Adjusted EBITDA as
a percentage of net revenue) in the 2017 first quarter was 8.8
percent compared to 8.3 percent in the 2016 first quarter.
The improvements in operating income and adjusted EBITDA were
primarily driven by the increase in revenue from Executive Search
and Leadership Consulting.
Net income in the 2017 first quarter declined $0.7 million to $0.7
million and diluted earnings per share was $0.03, based on an effective tax rate of 84.1
percent in the quarter and a full-year projected tax rate of
approximately 44 percent. The decline in net income largely
reflects the net $3.7 million
settlement with the HMRC described above and the non-deductibility
of the settlement, as well as other discrete items in the first
quarter. Excluding the settlement, diluted earnings per share
would have been $0.19 based on an
effective tax rate of 54.1 percent. In the 2016 first
quarter, the company reported net income of $1.3 million and diluted earnings per share of
$0.07 based on an effective tax rate
of 66.8 percent in the quarter.
Net cash used by operating activities in the 2017 first quarter,
which includes annual bonus payments, was $110.5 million, compared to $119.2 million in the 2016 first quarter.
Following the payment of bonuses, cash and cash
equivalents at March 31, 2017 were
$68.3 million ($43.3 million net of debt) compared to
$165.0 million at December 31, 2016, and $62.0 million at March 31,
2016.
2017 Second Quarter Outlook
The company is forecasting second quarter 2017 consolidated net
revenue of between $153 million and $163
million. This forecast is based on the average currency
rates in March 2017 and reflects,
among other factors, management's assumptions for the anticipated
volume of new Executive Search confirmations, Leadership Consulting
assignments and Culture Shaping services, the current backlog,
consultant productivity, consultant retention, and the seasonality
of its business.
Rajagopalan added, "Heidrick's brand, influence and position in
the global marketplace have never been stronger. Leveraging
our current platform, we intend to expand our impact in Executive
Search and to strengthen and grow our Leadership Consulting and
Culture Shaping service offerings."
Quarterly Conference Call
Executives of Heidrick & Struggles will host a conference
call to review its first quarter 2017 results today, April 24, at 4:00 pm
Central Time. Participants may access the company's call and
supporting slides through its website at www.heidrick.com.
For those unable to participate on the live call, a webcast and
copy of the slides will be archived at www.heidrick.com and
available for up to 30 days following the investor call.
About Heidrick & Struggles International, Inc.
Heidrick & Struggles (Nasdaq: HSII) serves the executive
talent and leadership needs of the world's top organizations as a
premier provider of leadership consulting, culture shaping and
senior-level executive search services. Heidrick & Struggles
pioneered the profession of executive search more than 60 years
ago. Today, the firm serves as a trusted advisor, providing
integrated leadership solutions and helping its clients change the
world, one leadership team at a time. www.heidrick.com.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures.
A "non-GAAP financial measure" is defined as a numerical measure of
a company's financial performance that excludes or includes amounts
different than the most directly comparable measure calculated and
presented in accordance with GAAP in the statements of
comprehensive income, balance sheets or statements of cash flow of
the company. Pursuant to the requirements of Regulation G, this
earnings release contains the most directly comparable GAAP
financial measure to the non-GAAP financial measure.
The non-GAAP financial measures used within this earnings
release are Adjusted diluted earnings per share, Adjusted EBITDA
and Adjusted EBITDA margin. (1)Adjusted diluted
earnings per share reflects the exclusion of a cash settlement with
the HMRC related to the taxation of a legacy U.K. benefit trust
obligation. (2)Adjusted EBITDA refers to
earnings before interest, taxes, depreciation, intangible
amortization, stock-based compensation expense, compensation
expense associated with Senn Delaney
retention awards, earnout accretion expense related to
acquisitions, restructuring charges, goodwill impairment, and other
non-operating income (expense). Adjusted EBITDA margin refers
to Adjusted EBITDA (as explained above) as a percentage of net
revenue in the same period. A reconciliation of Adjusted
EBITDA to Net Income is provided on the last page of this
release. These measures are presented because management uses
this information to monitor and evaluate financial results and
trends. Management believes this information is also useful for
investors.
Safe Harbor Statement
This press release contains forward-looking statements. The
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry in which we
operate and management's beliefs and assumptions. Forward-looking
statements may be identified by the use of words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "projects," "forecasts," and similar expressions.
Forward-looking statements are not guarantees of future performance
and involve certain known and unknown risks, uncertainties and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from what is expressed, forecasted or
implied in the forward-looking statements. Factors that may affect
the outcome of the forward-looking statements include, among other
things, leadership changes, our ability to attract, integrate,
manage and retain qualified consultants and senior leaders; our
ability to develop and maintain strong, long-term relationships
with our clients; declines in the global economy and our ability to
execute successfully through business cycles; the timing, speed or
robustness of any future economic recovery; social or political
instability in markets where we operate; the impact of the U.K.
referendum to leave the European Union (Brexit); the impact of
foreign currency exchange rate fluctuations; unfavorable tax law
changes and tax authority rulings; price competition; the ability
to forecast, on a quarterly basis, variable compensation accruals
that ultimately are determined based on the achievement of annual
results; our ability to utilize our tax losses; the timing of the
establishment or reversal of valuation allowances on deferred tax
assets; the mix of profit and loss by country; our reliance on
information management systems; any impairment of our goodwill and
other intangible assets; and the ability to align our cost
structure and headcount with net revenue. For more information on
the factors that could affect the outcome of forward-looking
statements, refer to our Annual Report on Form 10-K for the year
ended December 31, 2016, under Risk
Factors in Item 1A and our quarterly filings with the SEC. We
caution the reader that the list of factors may not be exhaustive.
We undertake no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Press Release Contacts:
H&S Investors & Analysts Contact:
Julie Creed - Vice President, Investor Relations
& Real Estate
1 312 496 1774, jcreed@heidrick.com
H&S Media Contact:
Jon
Harmon - Vice President, Corporate Communications,
Marketing
1 312 496 1593, jharmon@heidrick.com
Heidrick &
Struggles International, Inc.
|
Condensed
Consolidated Statements of Comprehensive
Income
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
$
Change
|
|
%
Change
|
Revenue:
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$ 140,006
|
|
$
130,189
|
|
$
9,817
|
|
7.5%
|
Reimbursements
|
4,171
|
|
4,098
|
|
73
|
|
1.8%
|
Total
revenue
|
144,177
|
|
134,287
|
|
9,890
|
|
7.4%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
97,235
|
|
91,118
|
|
6,117
|
|
6.7%
|
General and
administrative expenses
|
36,133
|
|
35,203
|
|
930
|
|
2.6%
|
Reimbursed
expenses
|
4,171
|
|
4,098
|
|
73
|
|
1.8%
|
Total operating
expenses
|
137,539
|
|
130,419
|
|
7,120
|
|
5.5%
|
Operating
income
|
6,638
|
|
3,868
|
|
2,770
|
|
71.6%
|
|
|
|
|
|
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
Interest,
net
|
197
|
|
72
|
|
|
|
|
Other, net
|
(2,741)
|
|
49
|
|
|
|
|
Net non-operating
income (expense)
|
(2,544)
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
4,094
|
|
3,989
|
|
|
|
|
Provision for income
taxes
|
3,444
|
|
2,664
|
|
|
|
|
Net
income
|
650
|
|
1,325
|
|
|
|
|
Other comprehensive
income, net of tax
|
2,625
|
|
1,330
|
|
|
|
|
Comprehensive
income
|
$
3,275
|
|
$
2,655
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
18,628
|
|
18,448
|
|
|
|
|
Dilutive common
shares
|
591
|
|
531
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
19,219
|
|
18,979
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
$
0.03
|
|
$
0.07
|
|
|
|
|
Diluted net income
per common share
|
$
0.03
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits as a % of net revenue
|
69.5%
|
|
70.0%
|
|
|
|
|
General and
administrative expense as a % of net revenue
|
25.8%
|
|
27.0%
|
|
|
|
|
Operating income as a
% of net revenue
|
4.7%
|
|
3.0%
|
|
|
|
|
Heidrick &
Struggles International, Inc.
|
Segment
Information
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
$
Change
|
|
%
Change
|
|
Margin
*
|
|
Margin
*
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Executive Search
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
77,098
|
|
$
73,390
|
|
$
3,708
|
|
5.1%
|
|
|
|
|
|
Europe
|
26,205
|
|
23,401
|
|
2,804
|
|
12.0%
|
|
|
|
|
|
Asia
Pacific
|
21,182
|
|
18,937
|
|
2,245
|
|
11.9%
|
|
|
|
|
|
Total Executive
Search
|
124,485
|
|
115,728
|
|
8,757
|
|
7.6%
|
|
|
|
|
Leadership Consulting
|
9,766
|
|
6,118
|
|
3,648
|
|
59.6%
|
|
|
|
|
Culture Shaping
|
5,755
|
|
8,343
|
|
(2,588)
|
|
-31.0%
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
140,006
|
|
130,189
|
|
9,817
|
|
7.5%
|
|
|
|
|
|
Reimbursements
|
4,171
|
|
4,098
|
|
73
|
|
1.8%
|
|
|
|
|
|
Total
revenue
|
$ 144,177
|
|
$ 134,287
|
|
$
9,890
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
Executive Search
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
19,067
|
|
$
17,794
|
|
$
1,273
|
|
7.2%
|
|
24.7%
|
|
24.2%
|
|
Europe
|
99
|
|
1,289
|
|
(1,190)
|
|
-92.3%
|
|
0.4%
|
|
5.5%
|
|
Asia
Pacific
|
3,320
|
|
619
|
|
2,701
|
|
436.3%
|
|
15.7%
|
|
3.3%
|
|
Total Executive
Search
|
22,486
|
|
19,702
|
|
2,784
|
|
14.1%
|
|
18.1%
|
|
17.0%
|
Leadership Consulting
|
(882)
|
|
(2,561)
|
|
1,679
|
|
65.6%
|
|
-9.0%
|
|
-41.9%
|
Culture Shaping
|
(2,965)
|
|
(2,056)
|
|
(909)
|
|
-44.2%
|
|
-51.5%
|
|
-24.6%
|
|
Total
segments
|
18,639
|
|
15,085
|
|
3,554
|
|
23.6%
|
|
13.3%
|
|
11.6%
|
Global Operations Support
|
(12,001)
|
|
(11,217)
|
|
(784)
|
|
-7.0%
|
|
-8.6%
|
|
-8.6%
|
|
Total operating
income
|
$
6,638
|
|
$
3,868
|
|
$
2,770
|
|
71.6%
|
|
4.7%
|
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Margin based on
revenue before reimbursements (net revenue).
|
Heidrick &
Struggles International, Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
68,329
|
|
$
165,011
|
|
Accounts receivable,
net
|
|
111,366
|
|
93,191
|
|
Prepaid
expenses
|
|
24,407
|
|
21,602
|
|
Other current
assets
|
|
16,539
|
|
13,779
|
|
Income taxes
recoverable
|
|
4,454
|
|
4,847
|
|
|
Total current
assets
|
|
225,095
|
|
298,430
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
|
40,057
|
|
35,099
|
|
Assets designated for
retirement and pension plans
|
|
15,896
|
|
15,698
|
|
Investments
|
|
19,763
|
|
17,346
|
|
Other non-current
assets
|
|
14,257
|
|
9,322
|
|
Goodwill
|
|
152,558
|
|
151,844
|
|
Other intangible
assets, net
|
|
19,009
|
|
20,690
|
|
Deferred income
taxes
|
|
30,873
|
|
33,073
|
|
|
Total non-current
assets
|
|
292,413
|
|
283,072
|
|
|
|
|
|
|
|
Total
assets
|
|
$
517,508
|
|
$
581,502
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
9,880
|
|
$
7,952
|
|
Accrued salaries and
employee benefits
|
|
72,076
|
|
155,523
|
|
Deferred revenue,
net
|
|
32,482
|
|
28,367
|
|
Other current
liabilities
|
|
23,200
|
|
24,133
|
|
Income taxes
payable
|
|
4,402
|
|
4,617
|
|
|
Total current
liabilities
|
|
142,040
|
|
220,592
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Non-current
debt
|
|
25,000
|
|
-
|
|
Accrued salaries and
employee benefits
|
|
21,804
|
|
34,993
|
|
Retirement and
pension plans
|
|
41,766
|
|
39,039
|
|
Other non-current
liabilities
|
|
28,381
|
|
28,288
|
|
|
Total non-current
liabilities
|
|
116,951
|
|
102,320
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
258,517
|
|
258,590
|
|
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
|
$
517,508
|
|
$
581,502
|
Heidrick &
Struggles International, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Cash flows -
operating activities:
|
|
|
|
|
Net income
|
$
650
|
|
$
1,325
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
3,808
|
|
3,672
|
|
|
Deferred income
taxes
|
2,381
|
|
2,270
|
|
|
Stock-based
compensation expense
|
1,640
|
|
1,831
|
|
|
Accretion expense
related to earnout payments
|
426
|
|
345
|
|
|
Changes in assets and
liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
Accounts
receivable
|
(17,179)
|
|
(17,048)
|
|
|
|
Accounts
payable
|
(325)
|
|
1,523
|
|
|
|
Accrued
expenses
|
(98,115)
|
|
(105,719)
|
|
|
|
Deferred
revenue
|
3,871
|
|
4,304
|
|
|
|
Income taxes payable,
net
|
323
|
|
(5,812)
|
|
|
|
Retirement and
pension assets and liabilities
|
2,393
|
|
2,294
|
|
|
|
Prepaid
expenses
|
(2,604)
|
|
(2,564)
|
|
|
|
Other assets and
liabilities, net
|
(7,795)
|
|
(5,603)
|
|
|
|
|
Net cash used in
operating activities
|
(110,526)
|
|
(119,182)
|
|
|
|
|
|
|
|
|
Cash flows -
investing activities:
|
|
|
|
|
Restricted
cash
|
-
|
|
6,501
|
|
Acquisition of
business
|
-
|
|
(8,770)
|
|
Capital
expenditures
|
(4,163)
|
|
(721)
|
|
Purchases of
available for sale investments
|
(1,806)
|
|
(2,132)
|
|
Proceeds from sale of
available for sale investments
|
256
|
|
119
|
|
|
|
|
Net cash used in
investing activities
|
(5,713)
|
|
(5,003)
|
|
|
|
|
|
|
|
|
Cash flows -
financing activities:
|
|
|
|
|
Proceeds from line of
credit
|
40,000
|
|
-
|
|
Payments on line of
credit
|
(15,000)
|
|
-
|
|
Cash dividends
paid
|
(2,598)
|
|
(2,450)
|
|
Payment of employee
tax withholdings on equity transactions
|
(2,392)
|
|
(2,676)
|
|
Acquisition earnout
payments
|
(2,189)
|
|
(387)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
17,821
|
|
(5,513)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
1,736
|
|
1,293
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
(96,682)
|
|
(128,405)
|
Cash and cash
equivalents at beginning of period
|
165,011
|
|
190,452
|
Cash and cash
equivalents at end of period
|
$
68,329
|
|
$
62,047
|
Heidrick
& Struggles International, Inc.
|
Reconciliation of Net Income and Operating
Income (GAAP) to
|
Adjusted
EBITDA (Non-GAAP)
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenue
before reimbursements (net revenue)
|
$ 140,006
|
|
$ 130,189
|
|
|
|
|
|
|
|
Net
income
|
650
|
|
1,325
|
|
Interest,
net
|
(197)
|
|
(72)
|
|
Other,
net
|
2,741
|
|
(49)
|
|
Provision for
income taxes
|
3,444
|
|
2,664
|
Operating
income
|
6,638
|
|
3,868
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Salaries and
employee benefits
|
|
|
|
|
|
Stock-based
compensation expense
|
1,640
|
|
1,831
|
|
|
Senn Delaney
retention awards
|
-
|
|
1,073
|
|
General and
administrative expenses
|
|
|
|
|
|
Depreciation
|
1,834
|
|
2,285
|
|
|
Intangible
amortization
|
1,767
|
|
1,387
|
|
|
Earnout
accretion
|
426
|
|
345
|
|
|
|
Total
adjustments
|
5,667
|
|
6,921
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
12,305
|
|
$
10,789
|
Adjusted
EBITDA Margin
|
8.8%
|
|
8.3%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/heidrick--struggles-reports-first-quarter-2017-financial-results-300444433.html
SOURCE Heidrick & Struggles International, Inc.