LOS ANGELES, July 2, 2020 /PRNewswire/ --
Highlights
- Korn Ferry reports annual fee
revenue of $1,932.7 million,
essentially flat year-over-year (2.2% increase on a constant
currency).
- Net income attributable to Korn
Ferry was $104.9 million in
FY'20 with an operating margin of 9.1% and Adjusted EBITDA of
$301.0 million and Adjusted EBITDA
margin of 15.6%.
- Fee revenue was $440.5 million in
Q4 FY'20, a decrease of 10% (7.9% on a constant currency) as
compared to Q4 FY'19.
- Net loss attributable to Korn
Ferry was $0.8 million in Q4
FY'20, with an operating margin of 5.0%. Adjusted EBITDA was
$69.6 million in Q4 FY'20 with an
Adjusted EBITDA margin of 15.8%.
- Q4 FY'20 diluted loss per share was $0.02 compared to diluted earnings per share
of $0.89 in Q4 FY'19. Adjusted diluted earnings per share was
$0.60 in Q4 FY'20 compared to
$0.88 in Q4 FY'19.
- The Company ended the year with a strong liquidity position
with total cash and cash equivalents and marketable securities of
$863 million, and after setting aside
amounts for bonus payments and deferred compensation arrangements,
investable cash was $532
million.
- The Company repurchased 0.8 million shares, using $24.4 million of cash during the quarter.
Further, the Company declared a quarterly dividend of
$0.10 per share on July 1, 2020 payable on July 15, 2020 to stockholders of record on
July 31, 2020.
Korn Ferry (NYSE: KFY), a global
organizational consulting firm, today announced fourth quarter and
annual fee revenue of $440.5 million
and $1,932.7 million,
respectively. In addition, fourth quarter diluted loss per
share was $0.02 and adjusted diluted
earnings per share was $0.60. Adjusted diluted earnings per share
for the fourth quarter excludes an aggregate of $33.5 million, or $0.62 per share, of restructuring charges, net
due to the corona virus pandemic ("COVID-19"), and
integration/acquisition costs, net of tax due to the acquisition of
Miller Heiman Group, AchieveForum and Strategy Execution ("acquired
companies").
"During the fiscal fourth quarter we generated $441 million in fee revenue, down 10%
year-over-year (7.9% at constant currency). Operating margin was 5%
and Adjusted EBITDA margin was 15.8%," said Gary D. Burnison, CEO, Korn Ferry.
"As we manage our way through COVID-19, our Korn Ferry colleagues are showing their
resilience by quickly pivoting to a different way of working –
whether it's from home or the rapid transition to the virtual
delivery of our services and solutions to clients. I'm
confident that our offerings are more relevant now than ever
before," Burnison added. "I truly feel that over the next 2
years there will be more change than in the last 10 years.
Different work needs to get done, and work needs to get done
differently. That's an opportunity for our company. As
an organizational consulting firm, Korn
Ferry is committed to promoting conscious inclusion –
enabling all people and their organizations to exceed their
potential – and to exceed potential, people need an abundance of
opportunity, development, and sponsorship. Korn Ferry is the right firm at the right time
to help organizations drive performance through change, and I have
never been more proud of our company."
Selected Financial Results
(dollars in millions,
except per share amounts) (a)
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Fee
revenue
|
|
$
|
440.5
|
|
$
|
490.8
|
|
$
|
1,932.7
|
|
$
|
1,926.0
|
Total
revenue
|
|
$
|
449.0
|
|
$
|
502.5
|
|
$
|
1,977.3
|
|
$
|
1,973.9
|
Operating
income
|
|
$
|
22.2
|
|
$
|
62.3
|
|
$
|
176.0
|
|
$
|
140.8
|
Operating
margin
|
|
|
5.0%
|
|
|
12.7%
|
|
|
9.1%
|
|
|
7.3%
|
Net (loss) income
attributable to Korn Ferry
|
|
$
|
(0.8)
|
|
$
|
50.3
|
|
$
|
104.9
|
|
$
|
102.7
|
Basic (loss) earnings
per share
|
|
$
|
(0.02)
|
|
$
|
0.90
|
|
$
|
1.91
|
|
$
|
1.84
|
Diluted (loss)
earnings per share
|
|
$
|
(0.02)
|
|
$
|
0.89
|
|
$
|
1.90
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Results
(b):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
EBITDA
|
|
$
|
26.3
|
|
$
|
82.2
|
|
$
|
228.5
|
|
$
|
197.7
|
EBITDA
margin
|
|
|
6.0%
|
|
|
16.7%
|
|
|
11.8%
|
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results
(c):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Adjusted EBITDA
(b)
|
|
$
|
69.6
|
|
$
|
82.2
|
|
$
|
301.0
|
|
$
|
311.0
|
Adjusted EBITDA
margin (b)
|
|
|
15.8%
|
|
|
16.7%
|
|
|
15.6%
|
|
|
16.1%
|
Adjusted net income
attributable to Korn Ferry
|
|
$
|
32.7
|
|
$
|
49.7
|
|
$
|
161.3
|
|
$
|
187.9
|
Adjusted basic
earnings per share
|
|
$
|
0.60
|
|
$
|
0.89
|
|
$
|
2.94
|
|
$
|
3.36
|
Adjusted diluted
earnings per share
|
|
$
|
0.60
|
|
$
|
0.88
|
|
$
|
2.91
|
|
$
|
3.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(a)
|
Numbers may not total
due to rounding.
|
(b)
|
EBITDA refers to
earnings before interest, taxes, depreciation, and
amortization. Adjusted EBITDA further adjusts EBITDA to
exclude integration/acquisition costs, restructuring charges, net,
separation costs and tradename write-offs. 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 adjust for the following, as
applicable (see attached reconciliations):
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Integration/acquisition costs
|
|
$
|
2.8
|
|
$
|
—
|
|
$
|
12.2
|
|
$
|
6.7
|
Restructuring charges, net
|
|
$
|
40.5
|
|
$
|
—
|
|
$
|
58.6
|
|
$
|
—
|
Separation
costs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.8
|
|
$
|
—
|
Tradename
write-offs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
106.6
|
Debt refinancing
costs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.8
|
|
$
|
—
|
Fiscal 2020 Fourth Quarter Results
The Company reported fee revenue in Q4 FY'20 of $440.5 million, a decrease of 10% (decrease of
7.9% on a constant currency basis) compared to Q4 FY'19. The
decline in fee revenue was primarily due to the impact of COVID-19
on economies around the world, partially offset by fee revenue
generated by the acquired companies in the Digital segment.
Net loss attributable to Korn
Ferry was $0.8 million in Q4
FY'20 as compared to net income attributable to Korn Ferry of $50.3
million in Q4 FY'19. The change from net income to a
net loss attributable to Korn Ferry
was primarily due to a decline in fee revenue and restructuring
charges incurred in Q4 FY'20 in reaction to the impact of COVID-19,
offset by decreases in compensation and benefits expense and income
tax expense.
Operating margin was 5.0% in Q4 FY'20 compared to 12.7% in the
year-ago quarter. The decrease in operating margin was
primarily due to restructuring charges, net associated with the
impact of COVID-19 and the decline in fee revenue in Q4 FY'20.
Adjusted EBITDA margin was 15.8%, compared to 16.7% in the
year-ago quarter.
Fiscal 2020 Results
The Company reported fee revenue in FY'20 of $1,932.7 million, essentially flat when compared
to FY'19. Although fee revenue was essentially flat, there was
a change in mix with an increase in Digital due to fee revenue
generated by the acquired companies and an organic increase in RPO
and Professional Search, offset by decreases in fee revenue in
Executive Search and Consulting.
Net income attributable to Korn
Ferry was $104.9 million in
FY'20 as compared to $102.7 million
in FY'19. The increase in net income attributable to
Korn Ferry was primarily due to a
decrease in general and administrative expenses (due to trade name
write-offs in FY'19), offset by increases in restructuring charges,
net and in the Company's effective income tax rate.
Operating income was $176.0
million in FY'20 with an operating margin of 9.1% compared
to $140.8 million and 7.3% in
FY'19. The increase in operating income was primarily due to
decreases in general and administrative expenses (due to trade name
write-offs in FY'19) and compensation and benefits expense,
partially offset by restructuring charges incurred in FY'20
associated with the impact of COVID-19 and the acquisition of the
acquired companies.
Adjusted EBITDA was $301.0 million
in FY'20 with Adjusted EBITDA margin of 15.6%, compared to
$311.0 million and 16.1%,
respectively, in the year-ago period.
Results by Segment
Selected Consulting Data(a)
(dollars in
millions) (b)
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Fee
revenue
|
|
$
|
121.0
|
|
$
|
144.4
|
|
$
|
543.1
|
|
$
|
568.3
|
Total
revenue
|
|
$
|
123.4
|
|
$
|
148.7
|
|
$
|
557.3
|
|
$
|
585.9
|
Operating (loss)
income
|
|
$
|
(6.6)
|
|
$
|
13.3
|
|
$
|
17.7
|
|
$
|
(34.1)
|
Operating
margin
|
|
|
(5.4%)
|
|
|
9.2%
|
|
|
3.3%
|
|
|
(6.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending number of
consultants and execution staff (c)
|
|
|
1,671
|
|
|
1,881
|
|
|
1,671
|
|
|
1,881
|
Hours worked in
thousands (d)
|
|
|
415
|
|
439
|
|
|
1,758
|
|
|
1,703
|
Average billed rate
(e)
|
|
$
|
292
|
|
$
|
329
|
|
$
|
309
|
|
$
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Results
(f):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
EBITDA
|
|
$
|
(2.3)
|
|
$
|
18.4
|
|
$
|
36.6
|
|
$
|
(15.7)
|
EBITDA
margin
|
|
|
(1.9%)
|
|
|
12.7%
|
|
|
6.7%
|
|
|
(2.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results
(g):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Adjusted EBITDA
(f)
|
|
$
|
11.1
|
|
$
|
18.4
|
|
$
|
61.1
|
|
$
|
66.5
|
Adjusted EBITDA
margin (f)
|
|
|
9.2%
|
|
|
12.7%
|
|
|
11.2%
|
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(a)
|
In fiscal 2020, the
Company changed the composition of its global segments.
Consulting segment represents the consulting business that was
previously included in the Advisory segment. Segment data for
Q4 FY'19 and YTD FY'19 have been recast to reflect the division of
the Advisory segment into the Consulting and Digital segments.
|
(b)
|
Numbers may not total
due to rounding.
|
(c)
|
Represents number of
employees originating, delivering and executing consulting
services.
|
(d)
|
Represents the number
of hours worked by consultant and execution staff during the
period.
|
(e)
|
Represents the amount
of fee revenue divided by the number of hours worked by consultants
and executive staff.
|
(f)
|
EBITDA, EBITDA
margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP
financial measures (see attached reconciliations).
|
(g)
|
Adjusted results are
non-GAAP financial measures that adjust for the following (see
attached reconciliations):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Integration/acquisition costs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5.3
|
Restructuring
charges, net
|
|
$
|
13.4
|
|
$
|
—
|
|
$
|
24.5
|
|
$
|
—
|
Tradename
write-offs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
77.0
|
Reflecting the impact of COVID-19, fee revenue was $121.0 million in Q4 FY'20 compared to
$144.4 million in Q4 FY'19, a
decrease of $23.4 million or 16%
(decrease of 14% on a constant currency basis).
Operating loss was $6.6 million in
Q4 FY'20 with an operating margin of (5.4%) compared to operating
income of $13.3 million and an
operating margin of 9.2%, respectively, in the year-ago
quarter. The decrease in operating income was primarily due to
restructuring charges, net incurred in Q4 FY'20 associated with the
impact of COVID-19 and a decline in fee revenue, partially offset
by decreases in compensation and benefits expense, general and
administrative expenses and cost of services expense.
Adjusted EBITDA was $11.1 million
in Q4 FY'20 with an Adjusted EBITDA margin of 9.2% compared to
$18.4 million and 12.7%,
respectively, in the year-ago quarter.
Selected Digital Data (a)
(dollars
in millions) (b)
Digital is an integrated platform that gives clients direct
access to people and organizational data, insights, analytics, and
digital assets that when used together, give clients a common
language for all talent matters.
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Fee
revenue
|
|
$
|
69.3
|
|
$
|
62.7
|
|
$
|
292.4
|
|
$
|
252.7
|
Total
revenue
|
|
$
|
69.9
|
|
$
|
62.7
|
|
$
|
294.3
|
|
$
|
252.7
|
Operating
income
|
|
$
|
5.9
|
|
$
|
16.7
|
|
$
|
46.9
|
|
$
|
39.7
|
Operating
margin
|
|
|
8.5%
|
|
|
26.6%
|
|
|
16.0%
|
|
|
15.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending number of
consultants
|
|
|
421
|
|
|
350
|
|
|
421
|
|
|
350
|
Subscription &
License fee revenue
|
|
$
|
20.9
|
|
$
|
14.6
|
|
$
|
73.5
|
|
$
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Results
(c):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
EBITDA
|
|
$
|
11.9
|
|
$
|
20.6
|
|
$
|
66.7
|
|
$
|
53.6
|
EBITDA
margin
|
|
|
17.2%
|
|
|
32.8%
|
|
|
22.8%
|
|
|
21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results
(d):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Adjusted EBITDA
(c)
|
|
$
|
17.0
|
|
$
|
20.6
|
|
$
|
83.1
|
|
$
|
84.5
|
Adjusted EBITDA
margin (c)
|
|
|
24.5%
|
|
|
32.8%
|
|
|
28.4%
|
|
|
33.4%
|
____________________
|
(a)
|
In the fiscal 2020,
the Company changed the composition of its global segments.
Digital segment represents the products business that was
previously included in the Advisory segment. Segment data for
Q4 FY'19 and YTD FY'19 have been recast to reflect the division of
the Advisory segment into the Consulting and Digital segments.
|
(b)
|
Numbers may not total
due to rounding.
|
(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 adjust for the following (see
attached reconciliations):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Integration/acquisition costs
|
|
$
|
1.6
|
|
$
|
—
|
|
$
|
5.9
|
|
$
|
1.3
|
Restructuring
charges, net
|
|
$
|
3.4
|
|
$
|
—
|
|
$
|
10.5
|
|
$
|
—
|
Tradename
write-offs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
29.6
|
Fee revenue was $69.3 million in
Q4 FY'20 compared to $62.7 million in
Q4 FY'19, an increase of $6.6 million
or 11% (14% increase on a constant currency basis). The
increase in fee revenue was primarily due to fee revenue generated
by the acquired companies.
Operating income was $5.9 million
in Q4 FY'20 with an operating margin of 8.5% compared to
$16.7 million and an operating margin
of 26.6% in the year-ago quarter. The decrease in operating
income was due to an increase in operating expenses associated with
the acquisition of the acquired companies in addition to
restructuring charges, net incurred in Q4 FY'20 associated with the
impact of COVID-19, partially offset by higher fee revenue.
Adjusted EBITDA was $17.0 million
in Q4 FY'20 with an Adjusted EBITDA margin of 24.5% compared to
$20.6 million and 32.8%,
respectively, in the year-ago quarter.
Selected Executive Search Data
(dollars in millions) (a)
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Fee
revenue
|
|
$
|
167.9
|
|
$
|
190.9
|
|
$
|
732.5
|
|
$
|
774.8
|
Total
revenue
|
|
$
|
171.2
|
|
$
|
195.3
|
|
$
|
749.2
|
|
$
|
793.4
|
Operating
income
|
|
$
|
37.4
|
|
$
|
42.0
|
|
$
|
156.9
|
|
$
|
179.1
|
Operating
margin
|
|
|
22.3%
|
|
|
22.0%
|
|
|
21.4%
|
|
|
23.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending number of
consultants
|
|
|
556
|
|
|
565
|
|
|
556
|
|
|
565
|
Average number of
consultants
|
|
|
569
|
|
|
558
|
|
|
560
|
|
|
553
|
Engagements
billed
|
|
|
3,424
|
|
|
3,943
|
|
|
9,722
|
|
|
10,318
|
New engagements
(b)
|
|
|
1,229
|
|
|
1,717
|
|
|
6,064
|
|
|
6,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Results
(c):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
EBITDA
|
|
$
|
29.9
|
|
$
|
49.7
|
|
$
|
161.7
|
|
$
|
193.8
|
EBITDA
margin
|
|
|
17.8%
|
|
|
26.0%
|
|
|
22.1%
|
|
|
25.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results
(d):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Adjusted EBITDA
(c)
|
|
$
|
47.5
|
|
$
|
49.7
|
|
$
|
181.1
|
|
$
|
193.8
|
Adjusted EBITDA
margin (c)
|
|
|
28.3%
|
|
|
26.0%
|
|
|
24.7%
|
|
|
25.0%
|
____________________
|
(a)
|
Numbers may not total
due to rounding.
|
(b)
|
Represents new
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 adjust for the following (see
attached reconciliations):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Restructuring charges, net
|
|
$
|
17.5
|
|
$
|
—
|
|
$
|
17.5
|
|
$
|
—
|
Separation
costs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.8
|
|
$
|
—
|
Fee revenue was $167.9 million and
$190.9 million in Q4 FY'20 and Q4
FY'19, respectively, a decrease of $23.0
million or 12% (decrease of 10% on a constant currency
basis). The decrease in fee revenue was attributable to a
decline in fee revenue in all regions due to the decrease in demand
for our products and services as a result of the worldwide economic
downturn associated with COVID-19.
Operating income was $37.4 million
in Q4 FY'20 compared to $42.0 million
in Q4 FY'19. Operating margin was 22.3% in Q4 FY'20 compared
to 22.0% in the year-ago quarter. The decrease in operating
income was mainly due to a decrease in fee revenue and
restructuring charges, net incurred in Q4 FY'20 associated with the
impact of COVID-19, partially offset by decreases in compensation
and benefits expense (due to lower performance related bonus
expense and a decrease in expenses associated with our deferred
compensation and retirement plans) and general and administrative
expenses in Q4 FY'20 compared to the year-ago quarter.
Adjusted EBITDA was $47.5 million
in Q4 FY'20 with an Adjusted EBITDA margin of 28.3% compared to
$49.7 million and 26.0%,
respectively, in the year-ago quarter.
Selected RPO and Professional Search Data
(dollars in millions) (a)
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Fee
revenue
|
|
$
|
82.4
|
|
$
|
92.8
|
|
$
|
364.8
|
|
$
|
330.1
|
Total
revenue
|
|
$
|
84.5
|
|
$
|
95.8
|
|
$
|
376.6
|
|
$
|
341.9
|
Operating
income
|
|
$
|
6.2
|
|
$
|
14.5
|
|
$
|
50.4
|
|
$
|
50.9
|
Operating
margin
|
|
|
7.5%
|
|
|
15.7%
|
|
|
13.8%
|
|
|
15.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engagements billed
(b)
|
|
|
1,206
|
|
|
1,409
|
|
|
3,641
|
|
|
3,595
|
New engagements
(c)
|
|
|
573
|
|
|
781
|
|
|
2,744
|
|
|
2,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Results
(d):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
EBITDA
|
|
$
|
7.0
|
|
$
|
15.6
|
|
$
|
54.4
|
|
$
|
54.4
|
EBITDA
margin
|
|
|
8.5%
|
|
|
16.9%
|
|
|
14.9%
|
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Results
(e):
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Adjusted EBITDA
(d)
|
|
$
|
12.7
|
|
$
|
15.6
|
|
$
|
60.2
|
|
$
|
54.4
|
Adjusted EBITDA
margin (d)
|
|
|
15.4%
|
|
|
16.9%
|
|
|
16.5%
|
|
|
16.5%
|
____________________
|
(a)
|
Numbers may not total
due to rounding.
|
(b)
|
Represents
professional search engagements billed.
|
(c)
|
Represents new
professional search engagements opened in the respective period.
|
(d)
|
EBITDA, EBITDA
margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP
financial measures (see attached reconciliations).
|
(e)
|
Adjusted results are
non-GAAP financial measures that adjust for the following (see
attached reconciliations):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
FY'20
|
|
FY'19
|
|
FY'20
|
|
FY'19
|
Restructuring charges, net
|
|
$
|
5.7
|
|
$
|
—
|
|
$
|
5.7
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue was $82.4 million in
Q4 FY'20, a decrease of $10.4 million
or 11% (decrease of 9% on a constant currency basis), compared to
the year-ago quarter. The lower fee revenue resulted from the
impact of COVID-19 and was driven by a decrease in fee revenue in
recruitment process outsourcing and professional search of
$6.2 million and $4.2 million, respectively, in Q4 FY'20 compared
to Q4 FY'19.
Operating income was $6.2 million
in Q4 FY'20, a decrease of $8.3
million compared to Q4 FY'19 operating income of
$14.5 million. Operating margin
was 7.5% in Q4 FY'20 compared to 15.7% in the year-ago
quarter. The decrease in operating income was due to lower fee
revenue in Q4 FY'20 compared to Q4 FY'19 and restructuring charges,
net incurred in Q4 FY'20 associated with the impact of COVID-19.
This was partially offset by a decrease in compensation and
benefits expense due to lower performance related bonus expense,
offset by an increase in salaries and related payroll taxes driven
by an 8% increase in average headcount during the quarter.
Adjusted EBITDA was $12.7 million
during Q4 FY'20, a decrease of $2.9
million compared to Q4 FY'19. Adjusted EBITDA margin was
15.4% in Q4 FY'20 and 16.9% in Q4 FY'19.
Outlook
Although COVID-19 has been with us for a number of months,
significant uncertainty about its ultimate impact on society and
the global economic environment remains. The pandemic has spread
across the globe, infecting different parts of the world at varying
points in time and with varying levels of intensity. The
response, out of necessity, has been conducted in large part at a
very local level, with societies and economies closing and
reopening at different points in time and in different ways.
Further, the pandemic has had a profound and unprecedented impact
on traditional behavior and societal norms. Governments and
companies have mandated never before seen rules regarding working
from home, social distancing, and workplace safety, and have
severely restricted travel and in-person interaction.
As the world begins to slowly and sporadically reopen, we are
seeing a resurgence of COVID-19 cases in a number of geographies.
The extent to which measures taken are reinstated and new and
incremental measures are put in place, and the manner in which
authoritative bodies continue to respond, remains a major unknown.
While our clients and colleagues are demonstrating real resiliency
as they find new and different ways of working together (including
the adoption of virtual delivery of our services and solutions),
the unprecedented nature of what we are currently experiencing,
combined with conflicting and ever-changing datapoints, continues
to cloud the near-term predictability of our
business. Consequently, and consistent with our approach to
the fourth quarter of FY'20, we will not issue any specific revenue
or earnings guidance for the first quarter of FY'21. We plan to
reassess the suspension of our guidance once we are comfortable
that the coronavirus uncertainties have largely passed.
Earnings Conference Call Webcast
The earnings conference call will be held today at 12:00 PM
(EDT) and hosted by CEO Gary
Burnison, CFO Robert Rozek
and SVP Finance Gregg
Kvochak. The conference call will be webcast and
available online at ir.kornferry.com. 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 a global
organizational consulting firm. We help clients synchronize
strategy and talent to drive superior performance. We work
with organizations to design their structures, roles, and
responsibilities. We help them hire the right people to bring
their strategy to life. And we advise them on how to reward,
develop, and motivate their people. Visit 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 as well as the expected benefits of the acquisition of the
acquired companies (as defined below, the timing and expected
benefits of our recently adopted restructuring plan and the
magnitude and duration of the impact of the COVID-19 outbreak on
our business, employees, customers and our ability to provide
services in affected regions. 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 the magnitude and duration of the negative impact
of the COVID-19 outbreak on our business, employees, customers and
our ability to provide services in affected regions, global and
local political or economic developments in or affecting countries
where we have operations, competition, changes in demand for our
services as a result of automation, the dependence on and costs of
attracting and retaining qualified and experienced consultants, our
ability to maintain relationships with customers and suppliers and
retain key employees, maintaining our brand name and professional
reputation, potential legal liability and regulatory developments,
the portability of client relationships, consolidation of the
industries we serve, currency fluctuations in our international
operations, risks related to growth, alignment of our cost
structure, restrictions imposed by off-limits agreements, reliance
on information processing systems, cyber security vulnerabilities,
changes to data security, data privacy and data protection laws,
limited protection of our intellectual property, our ability to
enhance and develop new technology, our ability to develop new
products and services, the utilization and billing rates of our
consultants, dependence on third parties for the execution of
critical functions, our ability to successfully recover from a
disaster or other business continuity problems, changes in our
accounting estimates/assumptions, technical guidance relating to
the Tax Act, impairment of goodwill and other intangible assets,
deferred tax assets that we may not be able to use, our
indebtedness, the phase-out of the London Interbank Offered Rate,
expansion of social media platforms, seasonality, ability to effect
acquisition and integrate recently acquired companies, including
those of Miller Heiman Group, AchieveForum, and Strategy Execution
(collectively, the "acquired companies"); the ability to recognize
the anticipated benefits of the acquisition of the acquired
companies; the costs related to the acquisition of the acquired
companies 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 attributable to Korn Ferry, adjusted to exclude
integration/acquisition costs, restructuring charges, separation
costs, tradename write-offs, and debt refinancing costs, net of
income tax effect;
- Adjusted basic and diluted earnings per share, adjusted to
exclude integration/acquisition costs, restructuring charges,
separation costs, tradename write-offs, and debt refinancing costs,
net of income tax effect;
- Constant currency (calculated using a quarterly average)
percentages that represent the percentage change that would have
resulted had exchange rates in the prior period been the same as
those in effect in the current period;
- EBITDA, or earnings before interest, taxes, depreciation and
amortization and EBITDA margin;
- Adjusted EBITDA, which is EBITDA further adjusted to exclude
integration/acquisition costs, restructuring charges, separation
costs and tradename write-offs and Adjusted EBITDA margin;
and
- Investable cash represents the amount of funds available to
the Company after taking into consideration the accrued bonus that
will be paid and the amount set aside for deferred
compensation.
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 that may not be indicative
of Korn Ferry's ongoing operating
results. These non-GAAP financial measures are performance
measures and are not indicative of the liquidity of Korn Ferry. These charges, which are
described in the footnotes in the attached reconciliations,
represent 1) costs we incurred to acquire and integrate a portion
of our Digital business, 2) charges we incurred to restructure the
Company as a result of COVID-19 and due to acquisition of the
acquired companies, 3) separation costs, 4) tradename
write-offs associated with the rebranding plan initiated by
Korn Ferry and 5) debt refinancing
costs. The use of non-GAAP financial measures facilitates
comparisons to Korn Ferry's
historical performance. Korn
Ferry includes 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. Adjusted net income attributable to
Korn Ferry, adjusted basic and
diluted earnings per share and Adjusted EBITDA, exclude certain
charges that management does not consider on-going in nature and
allows management and investors to make more meaningful
period-to-period comparisons of the Company's operating
results. Management further believes that EBITDA is useful to
investors because it is frequently used by investors and other
interested parties to measure operating performance among companies
with different capital structures, effective tax rates and tax
attributes and capitalized asset values, all of which can vary
substantially from company to company. Investable cash
provides useful information surrounding the Company's liquidity
position since it is the amount of funds the Company has available
to fund its operations after taking into account accrued bonuses
that will be paid and the amount set aside for payments on deferred
compensation plans. In the case of constant currency
percentages, management believes the presentation of such
information provides useful 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.
[Tables attached]
KORN FERRY AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATION (in thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
April
30,
|
|
April
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Fee
revenue
|
|
$
|
440,469
|
|
$
|
490,756
|
|
$
|
1,932,732
|
|
$
|
1,926,033
|
Reimbursed
out-of-pocket engagement expenses
|
|
|
8,507
|
|
|
11,779
|
|
|
44,598
|
|
|
47,829
|
Total revenue
|
|
|
448,976
|
|
|
502,535
|
|
|
1,977,330
|
|
|
1,973,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
283,519
|
|
|
331,665
|
|
|
1,297,994
|
|
|
1,311,240
|
General and
administrative expenses
|
|
|
59,786
|
|
|
64,350
|
|
|
258,957
|
|
|
351,991
|
Reimbursed
expenses
|
|
|
8,507
|
|
|
11,779
|
|
|
44,598
|
|
|
47,829
|
Cost of
services
|
|
|
19,515
|
|
|
20,467
|
|
|
85,886
|
|
|
75,487
|
Depreciation
and amortization
|
|
|
14,956
|
|
|
11,999
|
|
|
55,311
|
|
|
46,489
|
Restructuring
charges, net
|
|
|
40,466
|
|
|
-
|
|
|
58,559
|
|
|
-
|
Total operating expenses
|
|
|
426,749
|
|
|
440,260
|
|
|
1,801,305
|
|
|
1,833,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
22,227
|
|
|
62,275
|
|
|
176,025
|
|
|
140,826
|
Other (loss)
income, net
|
|
|
(10,893)
|
|
|
7,922
|
|
|
(2,879)
|
|
|
10,405
|
Interest
expense, net
|
|
|
(6,998)
|
|
|
(4,169)
|
|
|
(22,184)
|
|
|
(16,891)
|
Income
before provision for income taxes
|
|
|
4,336
|
|
|
66,028
|
|
|
150,962
|
|
|
134,340
|
Income tax
provision
|
|
|
4,957
|
|
|
15,401
|
|
|
43,945
|
|
|
29,544
|
Net (loss)
income
|
|
|
(621)
|
|
|
50,627
|
|
|
107,017
|
|
|
104,796
|
Net income attributable to noncontrolling interest
|
|
|
(181)
|
|
|
(363)
|
|
|
(2,071)
|
|
|
(2,145)
|
Net (loss)
income attributable to Korn Ferry
|
|
$
|
(802)
|
|
$
|
50,264
|
|
$
|
104,946
|
|
$
|
102,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
per common share attributable to Korn Ferry:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02)
|
|
$
|
0.90
|
|
$
|
1.91
|
|
$
|
1.84
|
Diluted
|
|
$
|
(0.02)
|
|
$
|
0.89
|
|
$
|
1.90
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,534
|
|
|
55,173
|
|
|
54,342
|
|
|
55,311
|
Diluted
|
|
|
53,534
|
|
|
55,666
|
|
|
54,767
|
|
|
56,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share:
|
|
$
|
0.10
|
|
$
|
0.10
|
|
$
|
0.40
|
|
$
|
0.40
|
KORN FERRY AND
SUBSIDIARIES
FINANCIAL SUMMARY BY SEGMENT
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
Year Ended April
30,
|
|
|
|
2020
|
|
|
|
|
2019
|
|
% Change
|
|
2020
|
|
|
|
|
2019
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
$
|
120,992
|
|
|
|
|
$
|
144,363
|
|
|
(16.2%)
|
|
$
|
543,095
|
|
|
|
|
$
|
568,321
|
|
|
(4.4%)
|
Digital
|
|
|
69,269
|
|
|
|
|
|
62,719
|
|
|
10.4%
|
|
|
292,366
|
|
|
|
|
|
252,727
|
|
|
15.7%
|
Executive
Search:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
102,196
|
|
|
|
|
|
113,651
|
|
|
(10.1%)
|
|
|
434,624
|
|
|
|
|
|
455,826
|
|
|
(4.7%)
|
EMEA
|
|
39,662
|
|
|
|
|
|
45,307
|
|
|
(12.5%)
|
|
|
170,314
|
|
|
|
|
|
182,829
|
|
|
(6.8%)
|
Asia Pacific
|
|
19,737
|
|
|
|
|
|
24,373
|
|
|
(19.0%)
|
|
|
98,132
|
|
|
|
|
|
104,291
|
|
|
(5.9%)
|
Latin America
|
|
6,260
|
|
|
|
|
|
7,557
|
|
|
(17.2%)
|
|
|
29,400
|
|
|
|
|
|
31,896
|
|
|
(7.8%)
|
Total Executive
Search
|
|
|
167,855
|
|
|
|
|
|
190,888
|
|
|
(12.1%)
|
|
|
732,470
|
|
|
|
|
|
774,842
|
|
|
(5.5%)
|
RPO and Professional
Search
|
|
|
82,353
|
|
|
|
|
|
92,786
|
|
|
(11.2%)
|
|
|
364,801
|
|
|
|
|
|
330,143
|
|
|
10.5%
|
Total fee revenue
|
|
440,469
|
|
|
|
|
|
490,756
|
|
|
(10.2%)
|
|
|
1,932,732
|
|
|
|
|
|
1,926,033
|
|
|
0.3%
|
Reimbursed out-of-pocket engagement expenses
|
|
|
8,507
|
|
|
|
|
|
11,779
|
|
|
(27.8%)
|
|
|
44,598
|
|
|
|
|
|
47,829
|
|
|
(6.8%)
|
Total revenue
|
$
|
448,976
|
|
|
|
|
$
|
502,535
|
|
|
(10.7%)
|
|
$
|
1,977,330
|
|
|
|
|
$
|
1,973,862
|
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income:
|
|
|
|
|
Margin
|
|
|
|
|
Margin
|
|
|
|
|
Margin
|
|
|
|
|
Margin
|
Consulting
|
|
$
|
(6,577)
|
|
|
(5.4%)
|
|
$
|
13,316
|
|
|
9.2%
|
|
$
|
17,695
|
|
|
3.3%
|
|
$
|
(34,115)
|
|
|
(6.0%)
|
Digital
|
|
|
5,873
|
|
|
8.5%
|
|
|
16,675
|
|
|
26.6%
|
|
|
46,909
|
|
|
16.0%
|
|
|
39,732
|
|
|
15.7%
|
Executive
Search:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
32,826
|
|
|
32.1%
|
|
|
28,316
|
|
|
24.9%
|
|
|
113,080
|
|
|
26.0%
|
|
|
120,754
|
|
|
26.5%
|
EMEA
|
|
2,619
|
|
|
6.6%
|
|
|
8,161
|
|
|
18.0%
|
|
|
21,085
|
|
|
12.4%
|
|
|
29,974
|
|
|
16.4%
|
Asia Pacific
|
|
48
|
|
|
0.2%
|
|
|
5,027
|
|
|
20.6%
|
|
|
17,914
|
|
|
18.3%
|
|
|
24,364
|
|
|
23.4%
|
Latin America
|
|
1,861
|
|
|
29.7%
|
|
|
538
|
|
|
7.1%
|
|
|
4,860
|
|
|
16.5%
|
|
|
3,998
|
|
|
12.5%
|
Total Executive
Search
|
|
|
37,354
|
|
|
22.3%
|
|
|
42,042
|
|
|
22.0%
|
|
|
156,939
|
|
|
21.4%
|
|
|
179,090
|
|
|
23.1%
|
RPO and Professional
Search
|
|
|
6,159
|
|
|
7.5%
|
|
|
14,547
|
|
|
15.7%
|
|
|
50,438
|
|
|
13.8%
|
|
|
50,884
|
|
|
15.4%
|
Corporate
|
|
|
(20,582)
|
|
|
|
|
|
(24,305)
|
|
|
|
|
|
(95,956)
|
|
|
|
|
|
(94,765)
|
|
|
|
Total operating income
|
$
|
22,227
|
|
|
5.0%
|
|
$
|
62,275
|
|
|
12.7%
|
|
$
|
176,025
|
|
|
9.1%
|
|
$
|
140,826
|
|
|
7.3%
|
KORN FERRY AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
April
30,
|
|
April
30,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
689,244
|
|
$
|
626,360
|
Marketable
securities
|
|
|
41,951
|
|
|
8,288
|
Receivables due from
clients, net of allowance for doubtful accounts of $23,795 and
$21,582 at April 30, 2020 and 2019, respectively
|
|
|
397,165
|
|
|
404,857
|
Income taxes and
other receivables
|
|
|
38,755
|
|
|
26,767
|
Unearned
compensation
|
|
|
43,117
|
|
|
42,003
|
Prepaid expenses and
other assets
|
|
|
26,851
|
|
|
28,535
|
Total current
assets
|
|
|
1,237,083
|
|
|
1,136,810
|
|
|
|
|
|
|
|
Marketable
securities, non-current
|
|
|
132,134
|
|
|
132,463
|
Property and
equipment, net
|
|
|
142,728
|
|
|
131,505
|
Operating lease
right-of-use assets, net
|
|
|
195,077
|
|
|
-
|
Cash surrender value
of company-owned life insurance policies, net of loans
|
|
|
146,408
|
|
|
126,000
|
Deferred income
taxes
|
|
|
55,479
|
|
|
43,220
|
Goodwill
|
|
|
613,943
|
|
|
578,298
|
Intangible assets,
net
|
|
|
111,926
|
|
|
82,948
|
Unearned
compensation, non-current
|
|
|
79,510
|
|
|
80,924
|
Investments and other
assets
|
|
|
29,540
|
|
|
22,684
|
Total
assets
|
|
$
|
2,743,828
|
|
$
|
2,334,852
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
45,684
|
|
$
|
39,156
|
Income taxes
payable
|
|
|
21,158
|
|
|
21,145
|
Compensation and
benefits payable
|
|
|
280,911
|
|
|
328,610
|
Operating lease
liability, current
|
|
|
54,851
|
|
|
-
|
Other accrued
liabilities
|
|
|
221,603
|
|
|
162,047
|
Total current
liabilities
|
|
|
624,207
|
|
|
550,958
|
|
|
|
|
|
|
|
Deferred compensation
and other retirement plans
|
|
|
289,136
|
|
|
257,635
|
Operating lease
liability, non-current
|
|
|
180,766
|
|
|
-
|
Long-term
debt
|
|
|
394,144
|
|
|
222,878
|
Deferred tax
liabilities
|
|
|
1,056
|
|
|
1,103
|
Other
liabilities
|
|
|
30,828
|
|
|
58,891
|
Total
liabilities
|
|
|
1,520,137
|
|
|
1,091,465
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common stock: $0.01
par value, 150,000 shares authorized, 73,205 and 72,442 shares
issued and 54,450 and 56,431 shares outstanding at April 30, 2020
and 2019, respectively
|
|
|
585,560
|
|
|
656,463
|
Retained
earnings
|
|
|
742,993
|
|
|
660,845
|
Accumulated other
comprehensive loss, net
|
|
|
(107,172)
|
|
|
(76,652)
|
Total Korn Ferry
stockholders' equity
|
|
|
1,221,381
|
|
|
1,240,656
|
Noncontrolling
interest
|
|
|
2,310
|
|
|
2,731
|
Total stockholders'
equity
|
|
|
1,223,691
|
|
|
1,243,387
|
Total liabilities and
stockholders' equity
|
|
$
|
2,743,828
|
|
$
|
2,334,852
|
KORN FERRY AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
April
30,
|
|
April
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Net (loss)
income attributable to Korn Ferry
|
$
|
(802)
|
|
$
|
50,264
|
|
$
|
104,946
|
|
$
|
102,651
|
Net income attributable to non-controlling interest
|
|
181
|
|
|
363
|
|
|
2,071
|
|
|
2,145
|
Net (loss)
income
|
|
(621)
|
|
|
50,627
|
|
|
107,017
|
|
|
104,796
|
Income tax
provision
|
|
4,957
|
|
|
15,401
|
|
|
43,945
|
|
|
29,544
|
Income before
provision for income taxes
|
|
4,336
|
|
|
66,028
|
|
|
150,962
|
|
|
134,340
|
Other loss
(income), net
|
|
10,893
|
|
|
(7,922)
|
|
|
2,879
|
|
|
(10,405)
|
Interest
expense, net
|
|
6,998
|
|
|
4,169
|
|
|
22,184
|
|
|
16,891
|
Operating
income
|
|
22,227
|
|
|
62,275
|
|
|
176,025
|
|
|
140,826
|
Depreciation
and amortization
|
|
14,956
|
|
|
11,999
|
|
|
55,311
|
|
|
46,489
|
Other (loss)
income, net
|
|
(10,893)
|
|
|
7,922
|
|
|
(2,879)
|
|
|
10,405
|
EBITDA
|
|
26,290
|
|
|
82,196
|
|
|
228,457
|
|
|
197,720
|
Integration/acquisition costs (1)
|
|
2,833
|
|
|
-
|
|
|
12,152
|
|
|
6,746
|
Restructuring
charges, net (2)
|
|
40,466
|
|
|
-
|
|
|
58,559
|
|
|
-
|
Separation
costs (3)
|
|
-
|
|
|
-
|
|
|
1,783
|
|
|
-
|
Tradename
write-offs (4)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
106,555
|
Adjusted EBITDA
|
$
|
69,589
|
|
$
|
82,196
|
|
$
|
300,951
|
|
$
|
311,021
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
5.0%
|
|
|
12.7%
|
|
|
9.1%
|
|
|
7.3%
|
Depreciation
and amortization
|
|
3.4%
|
|
|
2.4%
|
|
|
2.8%
|
|
|
2.4%
|
Other (loss)
income, net
|
|
(2.4%)
|
|
|
1.6%
|
|
|
(0.1%)
|
|
|
0.6%
|
EBITDA margin
|
|
6.0%
|
|
|
16.7%
|
|
|
11.8%
|
|
|
10.3%
|
Integration/acquisition costs (1)
|
|
0.6%
|
|
|
-
|
|
|
0.7%
|
|
|
0.4%
|
Restructuring
charges, net (2)
|
|
9.2%
|
|
|
-
|
|
|
3.0%
|
|
|
-
|
Separation
costs (3)
|
|
-
|
|
|
-
|
|
|
0.1%
|
|
|
-
|
Tradename
write-offs (4)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5.4%
|
Adjusted EBITDA margin
|
|
15.8%
|
|
|
16.7%
|
|
|
15.6%
|
|
|
16.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Korn Ferry
|
$
|
(802)
|
|
$
|
50,264
|
|
$
|
104,946
|
|
$
|
102,651
|
Integration/acquisition costs (1)
|
|
2,833
|
|
|
-
|
|
|
12,152
|
|
|
6,746
|
Restructuring
charges, net (2)
|
|
40,466
|
|
|
-
|
|
|
58,559
|
|
|
-
|
Separation
costs (3)
|
|
-
|
|
|
-
|
|
|
1,783
|
|
|
-
|
Tradename
write-offs (4)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
106,555
|
Debt
refinancing costs (5)
|
|
-
|
|
|
-
|
|
|
828
|
|
|
-
|
Tax effect on
the adjusted items (6)
|
|
(9,819)
|
|
|
(598)
|
|
|
(16,938)
|
|
|
(28,094)
|
Adjusted net income attributable to Korn Ferry
|
$
|
32,678
|
|
$
|
49,666
|
|
$
|
161,330
|
|
$
|
187,858
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings per common share
|
$
|
(0.02)
|
|
$
|
0.90
|
|
$
|
1.91
|
|
$
|
1.84
|
Integration/acquisition costs (1)
|
|
0.05
|
|
|
-
|
|
|
0.22
|
|
|
0.12
|
Restructuring
charges, net (2)
|
|
0.75
|
|
|
-
|
|
|
1.07
|
|
|
-
|
Separation
costs (3)
|
|
-
|
|
|
-
|
|
|
0.03
|
|
|
-
|
Tradename
write-offs (4)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.93
|
Debt
refinancing costs (5)
|
|
-
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Tax effect on
the adjusted items (6)
|
|
(0.18)
|
|
|
(0.01)
|
|
|
(0.31)
|
|
|
(0.53)
|
Adjusted basic earnings per share
|
$
|
0.60
|
|
$
|
0.89
|
|
$
|
2.94
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
$
|
(0.02)
|
|
$
|
0.89
|
|
$
|
1.90
|
|
$
|
1.81
|
Integration/acquisition costs (1)
|
|
0.05
|
|
|
-
|
|
|
0.22
|
|
|
0.12
|
Restructuring
charges, net (2)
|
|
0.75
|
|
|
-
|
|
|
1.06
|
|
|
-
|
Separation
costs (3)
|
|
-
|
|
|
-
|
|
|
0.03
|
|
|
-
|
Tradename
write-offs (4)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.88
|
Debt
refinancing costs (5)
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
Tax effect on
the adjusted items (6)
|
|
(0.18)
|
|
|
(0.01)
|
|
|
(0.31)
|
|
|
(0.50)
|
Adjusted diluted earnings per share
|
$
|
0.60
|
|
$
|
0.88
|
|
$
|
2.91
|
|
$
|
3.31
|
|
Explanation of
Non-GAAP Adjustments
|
(1)
|
Costs associated with
current and previous acquisitions, such as legal and professional
fees, retention awards and the on-going integration expenses to
combine the companies.
|
(2)
|
Restructuring charges
we incurred to rationalize our cost structure by eliminating
redundant positions as a result of COVID-19 and due to the
acquisition of Miller Heiman Group, AchieveForum and Strategy
Execution on November 1, 2019.
|
(3)
|
Costs associated with
certain senior management separation charges.
|
(4)
|
The Company
implemented a plan to go to market under a single, master brand
architecture to simplify the Company's organizational structure by
eliminating and/or consolidating certain legal entities and
implemented a rebranding of the Company to offer the Company's
current products and services using the "Korn Ferry" name, branding
and trademarks. As a result of this the Company was required under
U.S. generally accepted accounting principles to record a one-time,
non-cash tradename write-offs.
|
(5)
|
Costs to write-off
debt issuance costs and interest rate swap as a result of replacing
our prior Credit Agreement with a new senior secured Credit
Agreement.
|
(6)
|
Tax effect on
integration/acquisition costs, restructuring charges, net,
separation costs, tradename write-offs and write-off of debt
issuance cost.
|
KORN FERRY
AND SUBSIDIARIES
RECONCILIATION OF NET (LOSS) INCOME AND OPERATING INCOME (GAAP)
TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(in thousands)
(unaudited)
|
|
.
|
|
Three Months Ended
April 30, 2020
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
Consulting
|
|
Digital
|
|
North
America
|
|
EMEA
|
|
Asia
Pacific
|
|
Latin
America
|
|
Subtotal
|
|
RPO and
Professional Search
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue
|
|
$
|
120,992
|
|
$
|
69,269
|
|
$
|
102,196
|
|
$
|
39,662
|
|
$
|
19,737
|
|
$
|
6,260
|
|
$
|
167,855
|
|
$
|
82,353
|
|
$
|
-
|
|
$
|
440,469
|
Total
revenue
|
|
$
|
123,423
|
|
$
|
69,890
|
|
$
|
104,775
|
|
$
|
40,148
|
|
$
|
20,008
|
|
$
|
6,282
|
|
$
|
171,213
|
|
$
|
84,450
|
|
$
|
-
|
|
$
|
448,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(802)
|
Net income
attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
181
|
Other loss
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,893
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,998
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,957
|
Operating (loss)
income
|
|
$
|
(6,577)
|
|
$
|
5,873
|
|
$
|
32,826
|
|
$
|
2,619
|
|
$
|
48
|
|
$
|
1,861
|
|
$
|
37,354
|
|
$
|
6,159
|
|
$
|
(20,582)
|
|
|
22,227
|
Depreciation and
amortization
|
|
|
4,379
|
|
|
6,105
|
|
|
835
|
|
|
385
|
|
|
307
|
|
|
244
|
|
|
1,771
|
|
|
945
|
|
|
1,756
|
|
|
14,956
|
Other loss,
net
|
|
|
(143)
|
|
|
(43)
|
|
|
(8,791)
|
|
|
(9)
|
|
|
(182)
|
|
|
(198)
|
|
|
(9,180)
|
|
|
(134)
|
|
|
(1,393)
|
|
|
(10,893)
|
EBITDA
|
|
|
(2,341)
|
|
|
11,935
|
|
|
24,870
|
|
|
2,995
|
|
|
173
|
|
|
1,907
|
|
|
29,945
|
|
|
6,970
|
|
|
(20,219)
|
|
|
26,290
|
EBITDA
margin
|
|
|
(1.9%)
|
|
|
17.2%
|
|
|
24.3%
|
|
|
7.6%
|
|
|
0.9%
|
|
|
30.5%
|
|
|
17.8%
|
|
|
8.5%
|
|
|
|
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration/acquisition costs
|
|
|
-
|
|
|
1,605
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,228
|
|
|
2,833
|
Restructuring, charges, net
|
|
|
13,443
|
|
|
3,449
|
|
|
7,244
|
|
|
6,347
|
|
|
3,649
|
|
|
309
|
|
|
17,549
|
|
|
5,742
|
|
|
283
|
|
|
40,466
|
Adjusted
EBITDA
|
|
$
|
11,102
|
|
$
|
16,989
|
|
$
|
32,114
|
|
$
|
9,342
|
|
$
|
3,822
|
|
$
|
2,216
|
|
$
|
47,494
|
|
$
|
12,712
|
|
$
|
(18,708)
|
|
$
|
69,589
|
Adjusted EBITDA
margin
|
|
|
9.2%
|
|
|
24.5%
|
|
|
31.4%
|
|
|
23.6%
|
|
|
19.4%
|
|
|
35.4%
|
|
|
28.3%
|
|
|
15.4%
|
|
|
|
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30, 2019
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
Digital
|
|
North
America
|
|
EMEA
|
|
Asia
Pacific
|
|
Latin
America
|
|
Subtotal
|
|
RPO and
Professional Search
|
|
Corporate
|
|
Consolidated
|
Fee revenue
|
|
$
|
144,363
|
|
$
|
62,719
|
|
$
|
113,651
|
|
$
|
45,307
|
|
$
|
24,373
|
|
$
|
7,557
|
|
$
|
190,888
|
|
$
|
92,786
|
|
$
|
-
|
|
$
|
490,756
|
Total
revenue
|
|
$
|
148,658
|
|
$
|
62,719
|
|
$
|
116,939
|
|
$
|
46,107
|
|
$
|
24,726
|
|
$
|
7,572
|
|
$
|
195,344
|
|
$
|
95,814
|
|
$
|
-
|
|
$
|
502,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
50,264
|
Net income
attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
363
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,922)
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,169
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,401
|
Operating income
(loss)
|
|
$
|
13,316
|
|
$
|
16,675
|
|
$
|
28,316
|
|
$
|
8,161
|
|
$
|
5,027
|
|
$
|
538
|
|
$
|
42,042
|
|
$
|
14,547
|
|
$
|
(24,305)
|
|
|
62,275
|
Depreciation and
amortization
|
|
|
3,953
|
|
|
3,402
|
|
|
973
|
|
|
387
|
|
|
345
|
|
|
105
|
|
|
1,810
|
|
|
930
|
|
|
1,904
|
|
|
11,999
|
Other income,
net
|
|
|
1,096
|
|
|
481
|
|
|
5,553
|
|
|
44
|
|
|
163
|
|
|
59
|
|
|
5,819
|
|
|
165
|
|
|
361
|
|
|
7,922
|
EBITDA and Adjusted
EBITDA
|
|
$
|
18,365
|
|
$
|
20,558
|
|
$
|
34,842
|
|
$
|
8,592
|
|
$
|
5,535
|
|
$
|
702
|
|
$
|
49,671
|
|
$
|
15,642
|
|
$
|
(22,040)
|
|
$
|
82,196
|
EBITDA and Adjusted
EBITDA margin
|
|
|
12.7%
|
|
|
32.8%
|
|
|
30.7%
|
|
|
19.0%
|
|
|
22.7%
|
|
|
9.3%
|
|
|
26.0%
|
|
|
16.9%
|
|
|
|
|
|
16.7%
|
KORN FERRY AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(in thousands)
|
|
|
|
|
|
Year Ended April
30, 2020
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
Digital
|
|
North
America
|
|
EMEA
|
|
Asia
Pacific
|
|
Latin
America
|
|
Subtotal
|
|
RPO and
Professional Search
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue
|
|
$
|
543,095
|
|
$
|
292,366
|
|
$
|
434,624
|
|
$
|
170,314
|
|
$
|
98,132
|
|
$
|
29,400
|
|
$
|
732,470
|
|
$
|
364,801
|
|
$
|
-
|
|
$
|
1,932,732
|
Total
revenue
|
|
$
|
557,255
|
|
$
|
294,261
|
|
$
|
447,528
|
|
$
|
172,978
|
|
$
|
99,209
|
|
$
|
29,493
|
|
$
|
749,208
|
|
$
|
376,606
|
|
$
|
-
|
|
$
|
1,977,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
104,946
|
Net income
attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,071
|
Other loss,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,879
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,184
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,945
|
Operating income
(loss)
|
|
$
|
17,695
|
|
$
|
46,909
|
|
$
|
113,080
|
|
$
|
21,085
|
|
$
|
17,914
|
|
$
|
4,860
|
|
$
|
156,939
|
|
$
|
50,438
|
|
$
|
(95,956)
|
|
|
176,025
|
Depreciation and amortization
|
|
|
17,567
|
|
|
19,261
|
|
|
3,452
|
|
|
1,713
|
|
|
1,311
|
|
|
1,182
|
|
|
7,658
|
|
|
3,906
|
|
|
6,919
|
|
|
55,311
|
Other income (loss),
net
|
|
|
1,326
|
|
|
485
|
|
|
(3,051)
|
|
|
139
|
|
|
11
|
|
|
51
|
|
|
(2,850)
|
|
|
82
|
|
|
(1,922)
|
|
|
(2,879)
|
EBITDA
|
|
|
36,588
|
|
|
66,655
|
|
|
113,481
|
|
|
22,937
|
|
|
19,236
|
|
|
6,093
|
|
|
161,747
|
|
|
54,426
|
|
|
(90,959)
|
|
|
228,457
|
EBITDA
margin
|
|
|
6.7%
|
|
|
22.8%
|
|
|
26.1%
|
|
|
13.5%
|
|
|
19.6%
|
|
|
20.7%
|
|
|
22.1%
|
|
|
14.9%
|
|
|
|
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration/acquisition costs
|
|
|
-
|
|
|
5,937
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,215
|
|
|
12,152
|
Restructuring charges, net
|
|
|
24,504
|
|
|
10,481
|
|
|
7,244
|
|
|
6,347
|
|
|
3,649
|
|
|
309
|
|
|
17,549
|
|
|
5,742
|
|
|
283
|
|
|
58,559
|
Separation
costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,783
|
|
|
-
|
|
|
-
|
|
|
1,783
|
|
|
-
|
|
|
-
|
|
|
1,783
|
Adjusted
EBITDA
|
|
$
|
61,092
|
|
$
|
83,073
|
|
$
|
120,725
|
|
$
|
31,067
|
|
$
|
22,885
|
|
$
|
6,402
|
|
$
|
181,079
|
|
$
|
60,168
|
|
$
|
(84,461)
|
|
$
|
300,951
|
Adjusted EBITDA
margin
|
|
|
11.2%
|
|
|
28.4%
|
|
|
27.8%
|
|
|
18.2%
|
|
|
23.3%
|
|
|
21.8%
|
|
|
24.7%
|
|
|
16.5%
|
|
|
|
|
|
15.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April
30, 2019
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
Digital
|
|
North
America
|
|
EMEA
|
|
Asia
Pacific
|
|
Latin
America
|
|
Subtotal
|
|
RPO and
Professional Search
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue
|
|
$
|
568,321
|
|
$
|
252,727
|
|
$
|
455,826
|
|
$
|
182,829
|
|
$
|
104,291
|
|
$
|
31,896
|
|
$
|
774,842
|
|
$
|
330,143
|
|
$
|
-
|
|
$
|
1,926,033
|
Total
revenue
|
|
$
|
585,893
|
|
$
|
252,727
|
|
$
|
469,743
|
|
$
|
186,131
|
|
$
|
105,543
|
|
$
|
31,960
|
|
$
|
793,377
|
|
$
|
341,865
|
|
$
|
-
|
|
$
|
1,973,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
102,651
|
Net income
attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,145
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,405)
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,891
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,544
|
Operating (loss)
income
|
|
$
|
(34,115)
|
|
$
|
39,732
|
|
$
|
120,754
|
|
$
|
29,974
|
|
$
|
24,364
|
|
$
|
3,998
|
|
$
|
179,090
|
|
$
|
50,884
|
|
$
|
(94,765)
|
|
|
140,826
|
Depreciation and amortization
|
|
|
16,172
|
|
|
12,885
|
|
|
3,890
|
|
|
1,254
|
|
|
1,428
|
|
|
410
|
|
|
6,982
|
|
|
3,255
|
|
|
7,195
|
|
|
46,489
|
Other income (loss),
net
|
|
|
2,203
|
|
|
995
|
|
|
6,699
|
|
|
432
|
|
|
281
|
|
|
322
|
|
|
7,734
|
|
|
268
|
|
|
(795)
|
|
|
10,405
|
EBITDA
|
|
|
(15,740)
|
|
|
53,612
|
|
|
131,343
|
|
|
31,660
|
|
|
26,073
|
|
|
4,730
|
|
|
193,806
|
|
|
54,407
|
|
|
(88,365)
|
|
|
197,720
|
EBITDA
margin
|
|
|
(2.8%)
|
|
|
21.2%
|
|
|
28.8%
|
|
|
17.3%
|
|
|
25.0%
|
|
|
14.8%
|
|
|
25.0%
|
|
|
16.5%
|
|
|
|
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration/acquisition costs
|
|
|
5,304
|
|
|
1,255
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
187
|
|
|
6,746
|
Tradename
write-offs
|
|
|
76,967
|
|
|
29,588
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
106,555
|
Adjusted
EBITDA
|
|
$
|
66,531
|
|
$
|
84,455
|
|
$
|
131,343
|
|
$
|
31,660
|
|
$
|
26,073
|
|
$
|
4,730
|
|
$
|
193,806
|
|
$
|
54,407
|
|
$
|
(88,178)
|
|
$
|
311,021
|
Adjusted EBITDA
margin
|
|
|
11.7%
|
|
|
33.4%
|
|
|
28.8%
|
|
|
17.3%
|
|
|
25.0%
|
|
|
14.8%
|
|
|
25.0%
|
|
|
16.5%
|
|
|
|
|
|
16.1%
|
KORN FERRY AND
SUBSIDIARIES
RECONCILIATION OF CASH AND CASH EQUIVALENTS (GAAP) TO
INVESTABLE CASH (NON-GAAP)
(in thousands)
|
|
|
|
|
|
April
30,
|
|
|
2020
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
689,244
|
add:
|
|
|
|
Marketable
securities
|
|
|
174,085
|
less:
|
|
|
|
Bonus
liability
|
|
|
189,976
|
Deferred
compensation
|
|
|
141,412
|
Investable
cash
|
|
$
|
531,941
|
View original
content:http://www.prnewswire.com/news-releases/korn-ferry-announces-fourth-quarter-and-fiscal-2020-results-of-operations-301087458.html
SOURCE Korn Ferry