Hudson Global, Inc. (“the Company”) (NASDAQ: HSON), a leading total
talent solutions provider, has changed its operating brand name
from Hudson to Hudson RPO, effective today, and has launched a new
brand identity, logo, website (www.hudsonrpo.com), and investor
relations presentation as part of this change.
This change marks the completion of a strategic
realignment process launched several years ago to focus on the
Company’s core recruitment process outsourcing (RPO)
business. This process culminated in the sale of all the
Company’s agency recruitment and talent management operations in
Europe and Asia Pacific in three transactions earlier this
year.
“RPO is our core business because it offers a
compelling value proposition for our clients, as well as strong
growth potential for our stockholders," said Jeff Eberwein, Chief
Executive Officer. “The size of the current global RPO market
is an estimated US$5 billion and is projected to grow 10-15 percent
annually going forward.1 In our RPO business, we focus on
partnering with our clients to design recruitment and talent
solutions to support their strategic growth objectives, and we are
delighted to introduce our new operating brand name, logo, and
website to showcase our vision of powering client success through
our total talent solutions.”
To Our Clients:
The Company first offered RPO as a service in
1999 to a global pharmaceutical company in Australia, and, since
2010, industry analysts and RPO clientele alike have recognized
Hudson RPO as a top global RPO provider. For example, Hudson
RPO ranked among HRO Today’s Baker’s Dozen for 2018, marking the
ninth consecutive year Hudson RPO made this prestigious list of the
top RPO providers in the world. Through client surveys, RPO
providers were rated on overall breadth of service, size of deal
managed, and quality of service provided, and Hudson RPO ranked
highly on all of these metrics.
“Now that the Company’s strategic realignment is
complete, we are increasing our investment in people and technology
to enhance our innovation and subject matter expertise, and to best
meet our clients’ growth initiatives,” mentioned Mr. Eberwein. “Our
vision is to be the top RPO provider of professional roles in the
industry.”
To Our Investors:
Given the projected growth of the RPO industry
over the coming years, the Company is committed to investing in its
RPO business to capitalize on these favorable market trends.
In addition to its internal investments, the Company will
also begin to look at profitable, bolt-on acquisition opportunities
in 2019 after it has finished building out the new platform for its
operating business.
The Company is very focused on generating
profitable growth from operations, and is also committed to
reducing corporate costs without impacting its operating business.
The Company believes the run rate for corporate costs in 2019
should be approximately $4 million, which is about 50 percent lower
than in 2018 including severance costs, or about one-third lower
excluding severance costs. As part of the reduction in
corporate costs, the Company has relocated its corporate
headquarters from New York City to Old Greenwich, Connecticut – a
move that will reduce annual rent expense by more than 80
percent.
For 2019, the Company expects to grow gross
profit more than 10 percent versus 2018, and adjusted EBITDA before
corporate costs should grow faster than this rate. This
growth, along with the aforementioned decline in corporate costs,
should enable the Company to generate positive adjusted EBITDA in
2019. Longer term, the Company’s goal is to grow its RPO
business in line with industry growth, or faster, and for adjusted
EBITDA margins to approach 20% of gross profit at the RPO division
level, while holding corporate costs flat. Successfully achieving
this goal should allow corporate-level adjusted EBITDA margins as a
percentage of gross profit to approach the mid-teens range.
For further information pertaining to Hudson
Global, the Company has posted a new investor presentation to the
investor relations section of its new website.
About Hudson
RPO
Hudson Global, Inc. is a leading total talent
solutions provider operating under the brand name Hudson RPO.
We deliver innovative, customized recruitment outsourcing and total
talent solutions to organizations worldwide. Through our
consultative approach, we develop tailored talent solutions
designed to meet our clients’ strategic growth initiatives.
As a trusted advisor, we meet our commitments, deliver quality and
value, and always aim to exceed expectations.
For more information, please visit us at
www.hudsonrpo.com.
Forward-Looking Statements
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 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 important factors, risks,
uncertainties and assumptions, including industry and economic
conditions' that could cause actual results to differ materially
from those described in the forward-looking statements. Such
factors, risks, uncertainties and assumptions include, but are not
limited to, Hudson Global’s ability to achieve anticipated benefits
from the sales of its recruitment and talent management operations
in Europe and Asia Pacific and operate successfully as a Company
focused on its RPO business; global economic fluctuations; the
Company’s ability to successfully achieve its strategic
initiatives; risks related to fluctuations in the Company's
operating results from quarter to quarter; the ability of clients
to terminate their relationship with the Company at any time and
the impact of any loss of a significant client; competition in
the Company's markets; the negative cash flows and operating
losses that may recur in the future; risks associated with the
Company's investment strategy; risks related to international
operations, including foreign currency fluctuations; the Company's
dependence on key management personnel; the Company's ability to
attract and retain highly skilled professionals; the Company's
ability to collect accounts receivable; the Company’s ability to
maintain costs at an acceptable level; the Company's heavy reliance
on information systems and the impact of potentially losing or
failing to develop technology; risks related to providing
uninterrupted service to clients; the Company's exposure to
employment-related claims from clients, employers and regulatory
authorities, current and former employees in connection with the
Company’s business reorganization initiatives and limits on related
insurance coverage; the Company’s ability to utilize net
operating loss carry-forwards; volatility of the Company's stock
price; the impact of government regulations; restrictions
imposed by blocking arrangements; and risks related to potential
acquisitions or dispositions of businesses by the Company.
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 document. The Company assumes no obligation, and
expressly disclaims any obligation, to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
|
|
|
Contact: |
|
Patrick Lyons |
|
|
Hudson Global |
|
|
212-351-7425 |
|
|
patrick.lyons@hudsonrpo.com |
1
https://www.prnewswire.com/news-releases/global-501-bn-recruitment-process-outsourcing-rpo-market-2025-300529971.html.
Hudson Global (NASDAQ:HSON)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hudson Global (NASDAQ:HSON)
Historical Stock Chart
From Apr 2023 to Apr 2024