Hudson Highland Group Pre-announces Second Quarter Results and Third Quarter Outlook
July 16 2007 - 7:00AM
PR Newswire (US)
Q2 Charge Expected; Adjusted EBITDA to Meet Guidance Range NEW
YORK, July 16 /PRNewswire-FirstCall/ -- Hudson Highland Group, Inc.
(NASDAQ:HHGP) expects to report EBITDA in the middle of its
guidance range of $12.5-13.5 million, excluding an additional $1.5
million charge for its 2006 restructuring program, for the second
quarter of 2007. The company also expects to report second quarter
revenue between $348-$350 million, below its prior guidance of
$355-$370 million. In addition, the company expects to report a
gross margin dollar increase of approximately 7 percent over the
prior year period. "The second quarter was highlighted by
consistent performance improvement in Europe and the core of our
Asia-Pac region," said Jon Chait, Hudson Highland Group chairman
and chief executive officer. "Our North American operation reduced
its loss in the second quarter compared with a year ago, but the
trajectory of improvement was slower than expected." The company's
expected second quarter restructuring charge is due to a recapture
by the landlord at its former New York City office location. "This
is a positive economic outcome for the company," said Mary Jane
Raymond, executive vice president and chief financial officer.
"This action relieves us of all future related lease obligations,
any potential subtenant default, additional subtenant leasehold
improvements, and approximately half of the broker commissions. The
charge includes those commissions and other lease expenses related
to the unoccupied period during the second quarter." The company
will release its formal guidance for the third quarter of 2007 in
its second quarter earnings release to be issued after market close
on July 25, 2007 and will host a conference call the following day
at 9:00 AM ET. Based on second quarter trends and preliminary
analysis of operational expectations for the third quarter, the
high end of the third quarter adjusted EBITDA guidance range is
expected to be flat compared with adjusted EBITDA for the prior
year third quarter. As a result, the company expects third quarter
adjusted EBITDA guidance to range between $9-$12 million.
Management will conduct a live conference call to be broadcast
simultaneously over the Internet to review these preliminary
results and outlook at 10:00 AM ET later this morning. Jon Chait,
chairman and chief executive officer, Hudson Highland Group, Mary
Jane Raymond, executive vice president and chief financial officer,
and David F. Kirby, director of investor relations, will host the
call. Individuals wishing to participate can join the conference
call by dialing 1-800-374-1532 followed by the participant passcode
7562453 at 9:50 AM ET. For those outside the United States, please
call in on 1-706-634-5594 followed by the participant passcode
7562453. Hudson Highland Group's conference call can also be
accessed online through Yahoo! Finance at http://www.yahoo.com/ and
the investor information section of the company's website at
http://www.hhgroup.com/. About Hudson Highland Group Hudson
Highland Group, Inc. is a leading provider of permanent
recruitment, contract professionals and talent management services
worldwide. From single placements to total outsourced solutions,
Hudson helps clients achieve greater organizational performance by
assessing, recruiting, developing and engaging the best and
brightest people for their businesses. The company employs more
than 3,600 professionals serving clients and candidates in more
than 20 countries. More information 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 company's history of
negative cash flows and operating losses may continue; the ability
of clients to terminate their relationship with the company at any
time; the impact of global economic fluctuations on temporary
contracting operations; risks and financial impact associated with
acquisitions and dispositions 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; restrictions imposed by blocking arrangements; exposure
to employment-related claims and limits on insurance coverage
related thereto; government regulations; 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: David F. Kirby of Hudson Highland Group, +1-212-351-7216,
Web site: http://www.hhgroup.com/
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