Korn Ferry Announces First Quarter Fiscal 2019 Results of Operations

Korn Ferry Announces First Quarter Fiscal 2019 Results of Operations

PR Newswire

LOS ANGELES, Sept. 6, 2018 /PRNewswire/ --

Highlights

  • Korn Ferry reports fee revenue of $465.6 million in Q1 FY'19, a 16.0% increase from Q1 FY'18, driven by organic growth in all solutions.
  • During the first quarter the Company announced a rebranding campaign under which it is sunsetting all sub-brands and moving to one unified brand – Korn Ferry. In connection with this, the Company incurred a charge in the amount of $106.6 million related to tradenames from prior acquisitions that the Company will no longer be using, resulting in an operating loss of $55.1 million with an operating margin of (11.8%). Adjusted EBITDA was $70.8 million with Adjusted EBITDA margin of 15.2%.
  • Q1 FY'19 diluted loss per share was $0.70 compared to diluted earnings per share of $0.51 in Q1 FY'18. Adjusted diluted earnings per share was $0.78 in Q1 FY'19 compared to Adjusted diluted earnings per share in Q1 FY'18 of $0.55.
  • The Company declared a quarterly dividend of $0.10 per share on September 5, 2018 payable on October 15, 2018 to stockholders of record on September 28, 2018.

Korn/Ferry International KFY, a global organizational consulting firm, today announced first quarter fee revenue of $465.6 million.  First quarter diluted loss per share was $0.70 and Adjusted diluted earnings per share was $0.78.  Adjusted diluted earnings per share for the first quarter excludes the $106.6 million charge as discussed above and $3.1 million related to retention awards from a prior acquisition, or $1.48 per share.

"I am pleased to report fee revenue of approximately $466 million and strong profits, with Adjusted EBITDA of approximately $71 million during our recently completed first quarter.  Overall, our revenues are up 16% year over year, with balanced growth across the firm," said Gary D. Burnison, CEO of Korn Ferry.  "As disclosed last quarter, we are sunsetting our legacy logos and migrating to one unified brand – Korn Ferry.  Over the next 15 months, we will continue to move our organization towards an industry, solution and geographic orientation to capture the substantial opportunity we have as an organizational consulting firm."

Selected Financial Results

(dollars in millions, except per share amounts) (a)





First Quarter







FY'19





FY'18



Fee revenue



$

465.6





$

401.3



Total revenue



$

478.4





$

414.9



Operating (loss) income



$

(55.1)





$

41.9



Operating margin





(11.8%)







10.5%



Net (loss) income attributable to Korn Ferry



$

(38.6)





$

29.0



Basic (loss) earnings per share



$

(0.70)





$

0.52



Diluted (loss) earnings per share



$

(0.70)





$

0.51





EBITDA Results (b):



First Quarter







FY'19





FY'18



EBITDA



$

(38.9)





$

57.5



EBITDA margin





(8.3%)







14.3%





Adjusted Results (c):



First Quarter







FY'19





FY'18



Adjusted EBITDA (b)



$

70.8





$

60.4



Adjusted EBITDA margin (b)





15.2%







15.0%



Adjusted net income attributable to Korn Ferry



$

44.2





$

31.2



Adjusted basic earnings per share



$

0.79





$

0.55



Adjusted diluted earnings per share



$

0.78





$

0.55



















(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 tradename write-offs, integration/acquisition costs and restructuring charges, net.  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):









First Quarter







FY'19





FY'18



Tradename write-offs

$



106.6



$





Integration/acquisition costs

$



3.1



$



2.6



Restructuring charges, net

$





$



0.3



Fee revenue was $465.6 million in Q1 FY'19, an increase of 16.0% (15.7% increase on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was due to organic growth in all solutions.

Operating margin was (11.8%) in Q1 FY'19 compared to 10.5% in the year-ago quarter.  The decrease in operating margin was primarily due to the $106.6 million tradename write-offs in Q1 FY'19 and an increase in compensation and benefits, partially offset by an increase in fee revenue.

Adjusted EBITDA margin was 15.2%, compared to 15.0% in the year-ago quarter.

Results by Segment

Selected Executive Search Data

(dollars in millions) (a)





First Quarter







FY'19





FY'18



Fee revenue



$

192.9





$

161.2



Total revenue



$

198.0





$

165.8



Operating income



$

40.9





$

32.9



Operating margin





21.2%







20.4%





















Ending number of consultants





545







532



Average number of consultants





543







525



Engagements billed





3,822







3,615



New engagements (b)





1,708







1,659





EBITDA Results (c):



First Quarter







FY'19





FY'18



EBITDA



$

46.8





$

35.2



EBITDA margin





24.2%







21.8%





Adjusted Results (d):



First Quarter







FY'19





FY'18



Adjusted EBITDA (c)



$

46.8





$

35.2



Adjusted EBITDA margin (c)





24.2%







21.9%





















(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 exclude restructuring charges, net (see attached reconciliations).

Fee revenue was $192.9 million in Q1 FY'19, an increase of $31.7 million or 19.7% (19.3% on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was attributable to higher fee revenue in all regions.

Operating income was $40.9 million in Q1 FY'19 compared to $32.9 million in Q1 FY'18. Operating margin was 21.2% in Q1 FY'19 compared to 20.4% in the year-ago quarter.  The increase in operating income was due to higher fee revenue in Q1 FY'19 compared to Q1 FY'18, partially offset by an increase in compensation and benefits expense driven by 3.6% increase in average headcount and an increase in performance related bonus expense.

Adjusted EBITDA was $46.8 million in Q1 FY'19 with an Adjusted EBITDA margin of 24.2% compared to $35.2 million and 21.9%, respectively, in the year-ago quarter.

Selected Advisory Data

(dollars in millions) (a)





First Quarter







FY'19





FY'18



Fee revenue



$

195.4





$

179.5



Total revenue



$

200.1





$

183.3



Operating (loss) income



$

(83.1)





$

19.1



Operating margin





(42.5%)







10.6%





















Ending number of consultants (b)





563







583



Staff utilization (c)





67%







63%





EBITDA Results (d):



First Quarter







FY'19





FY'18



EBITDA



$

(75.1)





$

27.6



EBITDA margin





(38.4%)







15.4%





Adjusted Results (e):



First Quarter







FY'19





FY'18



Adjusted EBITDA (d)



$

34.5





$

30.4



Adjusted EBITDA margin (d)





17.7%







16.9%



















(a)

Numbers may not total due to rounding.

(b)

Represents number of employees originating consulting services. 

(c)

Calculated by dividing the number of hours our full-time Advisory professional staff record to engagements during the period, by the total available working hours during the same 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):









First Quarter







FY'19





FY'18



Tradename write-offs



$

106.6





$



Integration/acquisition costs



$

3.0





$

2.5



Restructuring charges, net



$





$

0.2



Fee revenue was $195.4 million in Q1 FY'19 compared to $179.5 million in Q1 FY'18, an increase of $15.9 million or 8.9% (8.6% on a constant currency basis) compared to Q1 FY'18.  The increase in fee revenue was driven by increases in each of our Advisory solution areas, primarily from Consulting.

Operating loss was $83.1 million in Q1 FY'19 with an operating margin of (42.5%) compared to operating income of $19.1 million and an operating margin of 10.6% in the year-ago quarter.  The change of $102.2 million from operating income in the year-ago quarter to operating loss in the current quarter was primarily due to the tradename write-offs in Q1 FY'19 of $106.6 million.

Adjusted EBITDA was $34.5 million in Q1 FY'19 with an Adjusted EBITDA margin of 17.7% compared to $30.4 million and 16.9%, respectively, in the year-ago quarter.

Selected RPO and Professional Search Data

(dollars in millions) (a)





First Quarter







FY'19





FY'18



Fee revenue



$

77.3





$

60.6



Total revenue



$

80.2





$

65.8



Operating income



$

11.6





$

8.2



Operating margin





15.1%







13.6%





















Engagements billed (b)





1,346







1,205



New engagements (c)





771







732





EBITDA Results (d):



First Quarter







FY'19





FY'18



EBITDA



$

12.5





$

9.0



EBITDA margin





16.2%







14.9%



















(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 and EBITDA margin are non-GAAP financial measures (see attached reconciliations).

Fee revenue was $77.3 million in Q1 FY'19, an increase of $16.7 million or 27.6% (27.2% increase on a constant currency basis), compared to the year-ago quarter.  The higher fee revenue was primarily driven by an increase in fee revenue in recruitment process outsourcing and professional search of $9.3 million and $7.4 million, respectively, in Q1 FY'19 compared to Q1 FY'18.

Operating income was $11.6 million in Q1 FY'19, an increase of $3.4 million compared to Q1 FY'18 operating income of $8.2 million.  Operating margin was 15.1% in the current quarter compared to 13.6% in the year-ago quarter. 

EBITDA was $12.5 million during Q1 FY'19, an increase of $3.5 million compared to Q1 FY'18.  EBITDA margin was 16.2% in Q1 FY'19 and 14.9% in Q1 FY'18.

Outlook

Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

  • Q2 FY'19 fee revenue is expected to be in the range of $470 million and $490 million; and
  • Q2 FY'19 diluted earnings per share is likely to range between $0.73 to $0.81.

On a consolidated adjusted basis:

  • Q2 FY'19 Adjusted diluted earnings per share is expected to be in the range from $0.76 to $0.84.

 





Q2 FY'19

Earnings Per Share Outlook

(1)







Low





High



Consolidated diluted earnings per share



$

0.73





$

0.81



Retention bonuses





0.04







0.04



Tax rate impact





(0.01)







(0.01)



Consolidated as Adjusted diluted earnings per share



$

0.76





$

0.84





















(1)

Consolidated Adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table.

Earnings Conference Call Webcast

The earnings conference call will be held today at 4:30 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.  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 FerryThe potential risks and uncertainties include those relating to competition, changes in demand for our services as a result of automation, the dependence on 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, global and local political or economic developments in or affecting countries where we have operations, 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, our ability to successfully recover from a disaster or other business continuity problems, changes in our accounting estimates/assumptions, tax accounting effects of the Tax Act, impairment of goodwill and other intangible assets, deferred tax assets that we may not be able to use, seasonality, risks related to the integration of recently acquired businesses 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 International, adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, net of income tax effect;
  • Adjusted basic and diluted earnings per share, adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, net of income tax effect; and in the case of the outlook section, also adjusted for tax rate impact;
  • Constant currency (calculated using a quarterly average) amounts that represent the outcome that would have resulted had exchange rates in the reported period been the same as those in effect in the comparable prior year period;
  • EBITDA, or earnings before interest, taxes, depreciation and amortization and EBITDA margin; and
  • Adjusted EBITDA, which is EBITDA further adjusted to exclude restructuring charges, net, integration/acquisition costs and tradename write-offs, and Adjusted EBITDA margin.

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 and other items 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 represent 1) costs we incurred to acquire and integrate a portion of our Advisory business, 2) charges we incurred to restructure the combined company due to the acquisition of a portion of our Advisory business, and 3) tradename write-offs associated with the rebranding plan initiated by Korn Ferry.  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.  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.  In the case of constant currency amounts, 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 OPERATIONS

(in thousands, except per share amounts)







Three Months Ended







July 31,







2018





2017







(unaudited)



 Fee revenue



$

465,568





$

401,254



 Reimbursed out-of-pocket engagement expenses





12,794







13,663



           Total revenue





478,362







414,917





















 Compensation and benefits





321,905







272,756



 General and administrative expenses





168,724







58,261



 Reimbursed expenses





12,794







13,663



 Cost of services





18,327







15,813



 Depreciation and amortization





11,731







12,209



 Restructuring charges, net





-







280



           Total operating expenses





533,481







372,982





















 Operating (loss) income





(55,119)







41,935



 Other income, net





4,491







3,354



 Interest expense, net





(4,103)







(3,680)



          (Loss) income before (benefit) provision for income taxes and

















           equity in earnings of unconsolidated subsidiaries





(54,731)







41,609



 Equity in earnings of unconsolidated subsidiaries





29







30



 Income tax (benefit) provision





(16,110)







12,210



 Net (loss) income





(38,592)







29,429



           Net income attributable to noncontrolling interest





(19)







(388)



 Net (loss) income attributable to Korn/Ferry International



$

(38,611)





$

29,041





















 (Loss) earnings per common share attributable to Korn/Ferry International:

















      Basic



$

(0.70)





$

0.52



      Diluted



$

(0.70)





$

0.51





















 Weighted-average common shares outstanding:

















      Basic





55,378







55,795



      Diluted





55,378







56,403





















 Cash dividends declared per share:



$

0.10





$

0.10



 

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY SEGMENT

(in thousands)

(unaudited)







Three Months Ended July 31,







2018





2017





% Change



























Fee revenue:























Executive Search:

























North America

$

112,097





$

91,833







22.1%



EMEA



46,654







40,121







16.3%



Asia Pacific



26,295







21,578







21.9%



Latin America



7,878







7,659







2.9%

Total Executive Search



192,924







161,191







19.7%

Advisory



195,375







179,453







8.9%

RPO and Professional Search



77,269







60,610







27.5%



Total fee revenue



465,568







401,254







16.0%

Reimbursed out-of-pocket engagement expenses



12,794







13,663







(6.4%)



Total revenue

$

478,362





$

414,917







15.3%

Operating (loss) income:







Margin









Margin

Executive Search:



























North America

$

26,514





23.7%



$

22,070







24.0%



EMEA



6,969





14.9%





6,675







16.6%



Asia Pacific



6,641





25.3%





3,141







14.6%



Latin America



754





9.6%





1,026







13.4%

Total Executive Search



40,878





21.2%





32,912







20.4%

Advisory



(83,079)





(42.5%)





19,055







10.6%

RPO and Professional Search



11,645





15.1%





8,245







13.6%

Corporate



(24,563)











(18,277)













 Total operating (loss) income

$

(55,119)





(11.8%)



$

41,935







10.5%

 

KORN FERRY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)







July 31,





April 30,







2018





2018







(unaudited)











ASSETS

















Cash and cash equivalents



$

365,729





$

520,848



Marketable securities





10,952







14,293



Receivables due from clients, net of allowance for doubtful accounts of $19,201 and $17,845 at July 31, 2018 and April 30, 2018, respectively





397,559







384,996



Income taxes and other receivables





36,999







29,089



Unearned compensation





40,713







37,333



Prepaid expenses and other assets





32,056







27,700



Total current assets





884,008







1,014,259





















Marketable securities, non-current





123,124







122,792



Property and equipment, net





123,318







119,901



Cash surrender value of company owned life insurance policies, net of loans





121,828







120,087



Deferred income taxes





39,512







25,520



Goodwill





581,858







584,222



Intangible assets, net





93,050







203,216



Unearned compensation, non-current





92,378







78,295



Investments and other assets





20,394







19,622



Total assets



$

2,079,470





$

2,287,914





















LIABILITIES AND STOCKHOLDERS' EQUITY

















Accounts payable



$

35,325





$

35,196



Income taxes payable





25,790







23,034



Compensation and benefits payable





175,477







304,980



Term loan





26,629







24,911



Other accrued liabilities





150,534







170,339



Total current liabilities





413,755







558,460





















Deferred compensation and other retirement plans





234,468







227,729



Term loan, non-current





204,654







211,311



Deferred tax liabilities





1,609







9,105



Other liabilities





60,364







61,694



Total liabilities





914,850







1,068,299





















Stockholders' equity

















Common stock: $0.01 par value, 150,000 shares authorized, 72,171 and 71,631 shares issued and 56,938 and 56,517 shares outstanding at July 31, 2018 and April 30, 2018, respectively





 

681,060







 

683,942



Retained earnings





537,015







572,800



Accumulated other comprehensive loss, net





(56,488)







(40,135)



Total Korn/Ferry International stockholders' equity





1,161,587







1,216,607



Noncontrolling interest





3,033







3,008



Total stockholders' equity





1,164,620







1,219,615



Total liabilities and stockholders' equity



$

2,079,470





$

2,287,914



 

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)







Three Months Ended







July 31,







2018





2017







(unaudited)



 Operating (loss) income



$

(55,119)





$

41,935



 Depreciation and amortization





11,731







12,209



 Other income, net





4,491







3,354



 Equity in earnings of unconsolidated subsidiaries, net





29







30



           EBITDA





(38,868)







57,528



 Restructuring charges, net (1)





-







280



 Integration/acquisition costs (2)





3,107







2,588



 Tradename write-offs (3)





106,555







-



           Adjusted EBITDA



$

70,794





$

60,396





















 Operating margin





(11.8%)







10.5%



 Depreciation and amortization





2.5%







3.0%



 Other income, net





1.0%







0.8%



 Equity in earnings of unconsolidated subsidiaries, net





-







-



            EBITDA margin





(8.3%)







14.3%



 Restructuring charges, net (1)





-







0.1%



 Integration/acquisition costs (2)





0.6%







0.6%



 Tradename write-offs (3)





22.9%







-



           Adjusted EBITDA margin





15.2%







15.0%





















 Net (loss) income attributable to Korn/Ferry International



$

(38,611)





$

29,041



 Restructuring charges, net (1)





-







280



 Integration/acquisition costs (2)





3,107







2,588



 Tradename write-offs (3)





106,555







-



 Tax effect on the above items (4)





(26,893)







(724)



           Adjusted net income attributable to Korn/Ferry International



$

44,158





$

31,185





















 Basic (loss) earnings per common share



$

(0.70)





$

0.52



 Restructuring charges, net (1)





-







-



 Integration/acquisition costs (2)





0.06







0.05



 Tradename write-offs (3)





1.92







-



 Tax effect on the above items (4)





(0.49)







(0.02)



           Adjusted basic earnings per share



$

0.79





$

0.55





















 Diluted (loss) earnings per common share



$

(0.70)





$

0.51



 Restructuring charges, net (1)





-







-



 Integration/acquisition costs (2)





0.06







0.05



 Tradename write-offs (3)





1.90







-



 Tax effect on the above items (4)





(0.48)







(0.01)



           Adjusted diluted earnings per share



$

0.78





$

0.55

























Explanation of Non-GAAP Adjustments

(1)

Restructuring plan implemented in order to rationalize our cost structure by eliminating redundant positions and consolidating office space due to a previous acquisition that took place on December 1, 2015.

(2)

Costs associated with completing a previous acquisition, such as legal and professional fees, and the on-going integration expenses to combine the companies.

(3)

The Company is implementing 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 implementing 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.

(4)

Tax effect on restructuring charges, net, integration/acquisition costs and tradename write-offs.

 

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET (LOSS) INCOME AND OPERATING (LOSS) INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in thousands)

(unaudited)







Three Months Ended July 31, 2018







Executive Search







































North

America





EMEA





Asia

Pacific





Latin

America





Subtotal





Advisory





RPO and

Professional

Search





Corporate





Consolidated













































































Fee revenue



$

112,097





$

46,654





$

26,295





$

7,878





$

192,924





$

195,375





$

77,269





$

-





$

465,568



Total revenue



$

115,757





$

47,749





$

26,625





$

7,903





$

198,034





$

200,147





$

80,181





$

-





$

478,362













































































Net loss attributable to Korn/Ferry International



































































$

(38,611)



Net income attributable to noncontrolling interest





































































19



Other income, net





































































(4,491)



Interest expense, net





































































4,103



Equity in earnings of unconsolidated subsidiaries, net





































































(29)



Income tax benefit





































































(16,110)



Operating income (loss)



$

26,514





$

6,969





$

6,641





$

754





$

40,878





$

(83,079)





$

11,645





$

(24,563)







(55,119)



Depreciation and amortization





979







370







370







107







1,826







7,431







761







1,713







11,731



Other income (loss), net





3,472







340







175







37







4,024







570







105







(208)







4,491



Equity in earnings of unconsolidated subsidiaries, net





29







-







-







-







29







-







-







-







29



EBITDA





30,994







7,679







7,186







898







46,757







(75,078)







12,511







(23,058)







(38,868)



EBITDA margin





27.6%







16.5%







27.3%







11.4%







24.2%







(38.4%)







16.2%















(8.3%)













































































Integration/acquisition costs





-







-







-







-







-







3,027







-







80







3,107



Tradename write-offs





-







-







-







-







-







106,555







-







-







106,555



Adjusted EBITDA



$

30,994





$

7,679





$

7,186





$

898





$

46,757





$

34,504





$

12,511





$

(22,978)





$

70,794



Adjusted EBITDA margin





27.6%







16.5%







27.3%







11.4%







24.2%







17.7%







16.2%















15.2%

















































































Three Months Ended July 31, 2017







Executive Search







































North

America





EMEA





Asia

Pacific





Latin

America





Subtotal





Advisory





RPO and

Professional

Search





Corporate





Consolidated













































































Fee revenue



$

91,833





$

40,121





$

21,578





$

7,659





$

161,191





$

179,453





$

60,610





$

-





$

401,254



Total revenue



$

95,205





$

41,058





$

21,880





$

7,664





$

165,807





$

183,296





$

65,814





$

-





$

414,917













































































Net income attributable to Korn/Ferry International



































































$

29,041



Net income attributable to noncontrolling interest





































































388



Other income, net





































































(3,354)



Interest expense, net





































































3,680



Equity in earnings of unconsolidated subsidiaries, net





































































(30)



Income tax provision





































































12,210



Operating income (loss)



$

22,070





$

6,675





$

3,141





$

1,026





$

32,912





$

19,055





$

8,245





$

(18,277)







41,935



Depreciation and amortization





949







428







320







107







1,804







8,085







796







1,524







12,209



Other income, net





282







56







105







20







463







431







8







2,452







3,354



Equity in earnings of unconsolidated subsidiaries, net





30







-







-







-







30







-







-







-







30



EBITDA





23,331







7,159







3,566







1,153







35,209







27,571







9,049







(14,301)







57,528



EBITDA margin





25.4%







17.8%







16.5%







15.1%







21.8%







15.4%







14.9%















14.3%













































































Restructuring charges, net





-







-







40







-







40







240







-







-







280



Integration/acquisition costs





-







-







-







-







-







2,549







-







39







2,588



Adjusted EBITDA



$

23,331





$

7,159





$

3,606





$

1,153





$

35,249





$

30,360





$

9,049





$

(14,262)





$

60,396



Adjusted EBITDA margin





25.4%







17.8%







16.7%







15.1%







21.9%







16.9%







14.9%















15.0%



 

Cision View original content:http://www.prnewswire.com/news-releases/korn-ferry-announces-first-quarter-fiscal-2019-results-of-operations-300708297.html

SOURCE Korn Ferry

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