Hudson Highland Group Announces Revised 2005 Guidance
December 22 2005 - 8:34AM
PR Newswire (US)
NEW YORK, Dec. 22 /PRNewswire-FirstCall/ -- Hudson Highland Group,
Inc. (NASDAQ:HHGP), today announced that it has lowered guidance
for 2005. The company now expects 2005 full-year EBITDA to range
from $27 to $30 million, revised from $30 to $34 million. The
reduction stems from hiring demand softness that surfaced during
the quarter in Hudson Australia, New Zealand and North America.
Hudson Australia has been adversely affected by hiring freezes from
certain key clients. Hudson New Zealand has been adversely affected
by general economic uncertainty, partially from the reaction to the
recent election. In local currency, Hudson Australia/New Zealand
gross margin was up 4.5 percent during the first nine months of
2005 compared with the year ago period, but has been down 1.6
percent through the first two months of the fourth quarter. Despite
good revenue growth overall, Hudson North America experienced
softer-than-expected demand and contract pricing pressure in the IT
and Accounting & Finance practice groups. During the first nine
months of 2005, revenue was up 39.4 percent compared with the year
ago period, and through the first two months of the fourth quarter,
revenue is up 20.4 percent. "I'm disappointed with the fourth
quarter reduction against expectations, however, the company has
made excellent progress during 2005 and we expect to approximate a
full-year EBITDA margin of 2 percent," said Jon Chait, chairman and
chief executive officer of Hudson Highland Group. The company will
update its 2006 guidance on the year-end earnings call. Hudson
Highland Group Hudson Highland Group is one of the world's leading
professional staffing, retained executive search and human capital
solution providers. We help our clients achieve greater
organizational performance by attracting, selecting, engaging and
developing the best and brightest people for their businesses. Our
approximately 3,800 employees in more than 20 countries are
dedicated to providing unparalleled service and value to our
clients. More information about Hudson Highland Group is available
at http://www.hhgroup.com/ . Safe Harbor Statement This press
release contains statements that the company believes to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact included in this press release,
including those under the caption "Guidance" and other statements
regarding the company's future financial condition, results of
operations, business operations and business prospects, are
forward-looking statements. Words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "predict," "believe" and
similar words, expressions and variations of these words and
expressions are intended to identify forward-looking statements.
All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These
factors include, but are not limited to, the impact of global
economic fluctuations on temporary contracting operations; the
cyclical nature of the company's executive search and mid-market
professional staffing businesses; the company's ability to manage
its growth and fund working capital associated therewith; risks
associated with expansion; risks and financial impact associated
with disposition of non-strategic assets; the company's reliance on
information systems and technology; competition; fluctuations in
operating results; risks relating to foreign operations, including
foreign currency fluctuations; dependence on highly skilled
professionals and key management personnel; the impact of employees
departing with existing executive search clients; risks maintaining
professional reputation and brand name; restrictions imposed by
blocking arrangements; exposure to employment-related claims, and
limits on insurance coverage related thereto; government
regulations; the company's ability to successfully operate as an
independent company and the level of costs associated therewith;
and restrictions on the company's operating flexibility due to the
terms of its credit facility. Additional information concerning
these and other factors is contained in the company's filings with
the Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this press release. The
company assumes no obligation, and expressly disclaims any
obligation, to review or confirm analysts' expectations or
estimates or to update any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE:
Hudson Highland Group, Inc. CONTACT: Mary Jane Raymond,
+1-212-351-7232, or , or David F. Kirby, +1-212-351-7216, , both of
Hudson Highland Group Web site: http://www.hhgroup.com/
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