Delivers Strong Revenue Performance with
Robust Profitability
Restructuring for Accelerated Growth
Implemented in the Quarter
Declares $0.15 Per Share Cash Dividend
CHICAGO, July 29,
2024 /PRNewswire/ -- Heidrick & Struggles
International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles",
"Heidrick" or the "Company"), a premier provider of global
leadership advisory and on-demand talent solutions, today announced
financial results for its second quarter ended June 30, 2024.
Second Quarter Highlights:
- Net revenue grew to $278.6
million driven by all businesses
- Adjusted EBITDA was $28.8
million
- Adjusted EBITDA margin was 10.3%
"Our team delivered a strong second quarter. In a very complex
operating environment, clients continue to need help engaging,
assessing and enabling critical leadership talent – and our
world-class colleagues met those needs with energy and creativity.
This work helped propel our second quarter revenue beyond the high
end of our outlook range while generating a double-digit EBITDA
margin," stated CEO Tom Monahan.
"Even as we continued to deliver value to clients, we also made
important changes to our leadership team and staffing levels. As a
result, we enter the second half of the year with more targeted
solutions and better alignment of our organization with client
needs. Going forward, we are tightly focused on accelerating
returns from our recent investment cycle and on creating unmatched
value for clients, colleagues and investors."
2024 Second Quarter Results
Consolidated net revenue of $278.6
million compared to $271.2
million in the 2023 second quarter. The Company experienced
revenue growth in On-Demand Talent, Heidrick Consulting, and
Executive Search in the Americas and Asia
Pacific, partially offset by a decrease in Executive Search
in Europe.
Adjusted EBITDA was $28.8 million
compared to $34.9 million in the 2023
second quarter. Adjusted EBITDA margin was 10.3%, compared to 12.9%
in the 2023 second quarter. In Executive Search, Adjusted EBITDA
was $52.7 million compared to
$53.2 million in the prior year
period. In On-Demand Talent, Adjusted EBITDA was a loss of
$1.6 million versus a gain of
$2.6 million in the prior year
period. In Heidrick Consulting, Adjusted EBITDA was a loss of
$1.4 million compared to a loss of
$1.7 million in the prior year
period.
In the 2024 second quarter, the company recorded a non-cash
goodwill impairment charge of $16.2
million primarily related to the Company's On-Demand Talent
segment, a $6.9 million restructuring
charge and a $1.2 million earnout
fair value adjustment. In the 2023 second quarter, the Company
recorded a non-cash goodwill impairment charge of $7.2 million associated with the
Company's Heidrick Consulting segment.
Including these unusual charges in the 2024 second quarter, net
loss was $5.2 million and diluted
loss per share was $0.25. Excluding
these unusual charges in both the 2024 and 2023 second quarters,
adjusted net income was $14.1 million
and adjusted diluted earnings per share was $0.67, with an adjusted effective tax rate of
40.9%, in the 2024 second quarter. This compares to adjusted net
income of $15.0 million and adjusted
diluted earnings per share of $0.73,
with an adjusted effective tax rate of 37.7% in the 2023 second
quarter.
Executive Search net revenue of $210.0 million increased 1.5% compared to net
revenue of $206.8 million in the 2023
second quarter. Excluding the impact of exchange rate fluctuations,
which negatively impacted results by 0.4%, or $0.9 million, net revenue increased 2.0%, or
$4.1 million from the 2023 second
quarter. Net revenue increased 6.1% in the Americas (up 6.3% on a
constant currency basis), decreased 12.0% in Europe (down 11.7% on a constant currency
basis), and increased 0.7% in Asia
Pacific (up 3.3% on a constant currency basis) when compared
to the prior year second quarter. All practice groups, except
for Consumer and Industrial, exhibited growth over the prior year
period.
The Company had 415 Executive Search consultants at June 30, 2024, compared to 423 at June 30, 2023. Productivity, as measured by
annualized Executive Search net revenue per consultant, was
$2.0 million compared to $1.9 million in the 2023 second quarter,
reflecting a lower number of consultants combined with higher
revenue. Average revenue per executive search was approximately
$151,000 compared to $146,000 in the prior year period. The number of
search confirmations decreased 1.6% compared to the year-ago
period.
On-Demand Talent net revenue of $41.9
million increased 6.8% compared to net revenue of
$39.2 million in the 2023 second
quarter. Excluding the impact of exchange rate fluctuations, which
negatively impacted results by $0.2
million, or 0.5%, net revenue increased 7.3%, or
$2.9 million from the 2023 second
quarter.
Heidrick Consulting net revenue of $26.8 million increased 6.2% compared to net
revenue of $25.2 million in the 2023
second quarter. The Company had 85 Heidrick Consulting consultants
at June 30, 2024, compared to 89 at
June 30, 2023.
Consolidated salaries and benefits decreased $1.0 million to $177.9
million compared to $178.9
million in the 2023 second quarter. Year-over-year, fixed
compensation expense decreased $3.0
million due to decreases in separation expense, talent
acquisition and retention costs, retirement and benefits expenses,
and expenses related to the deferred compensation plan, partially
offset by increases in stock compensation, and base salaries and
payroll taxes. Variable compensation increased $1.9 million due to an increase in consultant
production. Salaries and benefits expense was 63.8% of net revenue
for the quarter, compared to 66.0% in the 2023 second quarter.
General and administrative expenses increased $5.9 million, or 14.7%, to $46.5 million compared to $40.5 million in the 2023 second quarter. The
increase was due to the 2024 Global Conference, earnout fair value
adjustments, professional fees, office occupancy, hiring fees, IT,
and marketing, partially offset by decreases in intangible
amortization, travel and entertainment, and the use of external
third-party consultants. As a percentage of net revenue, general
and administrative expenses were 16.7% for the 2024 second quarter
compared to 14.9% in the 2023 second quarter.
The Company's cost of services was $29.7
million, or 10.7% of net revenue for the quarter, compared
to $25.3 million, or 9.3% of net
revenue in the 2023 second quarter. This primarily related to an
increase in the volume of On-Demand Talent and Heidrick Consulting
projects.
The Company's research and development expenses were
$5.6 million, or 2.0%, of net revenue
for the quarter compared to $5.7
million, or 2.1%, of net revenue for the second quarter
2023.
Net cash provided by operating activities was $62.5 million compared to net cash provided by
operating activities of $46.9 million
in the 2023 second quarter. Cash, cash equivalents and marketable
securities at June 30, 2024 was
$296.9 million compared to
$239.0 million at June 30, 2023 and $478.2
million at December 31, 2023.
The Company's cash position typically builds throughout the year as
employee bonuses are accrued, mostly to be paid out in the first
half of the year following the year in which they are earned.
Dividend
The Board of Directors declared a 2024 second quarter cash
dividend of $0.15 per share payable
on August 22, 2024, to shareholders
of record at the close of business on August
9, 2024.
2024 Third Quarter Outlook
The Company expects 2024 third quarter consolidated net revenue
of between $260 million and
$280 million, while acknowledging
that continued fluidity in external factors, such as the foreign
exchange and interest rate environments, foreign conflicts,
inflation and macroeconomic constraints on pricing actions, may
impact quarterly results. In addition, this outlook is based on the
average currency rates in June 2024
and reflects, among other factors, management's assumptions for the
anticipated volume of new Executive Search confirmations, On-Demand
Talent projects, and Heidrick Consulting assignments, consultant
productivity, consultant retention, and the seasonality of the
business along with the current backlog.
Quarterly Webcast and Conference Call
Heidrick & Struggles will host a conference call to review
its second quarter results today, July 29,
2024 at 5:30 pm Eastern Time.
Participants may access the Company's call and supporting slides
through its website at www.heidrick.com or by dialing (800)
715-9871 or (646) 307-1963, conference ID# 4805686. For those
unable to participate on the live call, a webcast and copy of the
slides will be archived at www.heidrick.com and available for
up to 30 days following the investor call.
About Heidrick & Struggles International, Inc.
Heidrick & Struggles (Nasdaq: HSII) is a premier provider of
global leadership advisory and on-demand talent solutions, serving
the senior-level talent and consulting needs of the world's top
organizations. In our role as trusted leadership advisors, we
partner with our clients to develop future-ready leaders and
organizations, bringing together our services and offerings in
executive search, diversity and inclusion, leadership assessment
and development, organization and team acceleration, culture
shaping and on-demand, independent talent solutions. Heidrick &
Struggles pioneered the profession of executive search more than 70
years ago. Today, the firm provides integrated talent and human
capital solutions to help our clients change the world, one
leadership team at a time. ® www.heidrick.com
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with
generally accepted accounting principles in the United States ("GAAP"), Heidrick &
Struggles presents certain non-GAAP financial measures. A "non-GAAP
financial measure" is defined as a numerical measure of a company's
financial performance that excludes or includes amounts different
than the most directly comparable measure calculated and presented
in accordance with GAAP in the statements of comprehensive income,
balance sheets or statements of cash flow of the Company.
Non-GAAP financial measures used within this earnings release
are Adjusted EBITDA, Adjusted EBITDA margin, and consolidated net
revenue excluding the impact of exchange rate fluctuations
(referred to as on a constant currency basis). These measures are
presented because management uses this information to monitor and
evaluate financial results and trends. Management believes this
information is also useful for investors to evaluate the
comparability of financial information presented. Reconciliations
of these non-GAAP financial measures to the most directly
comparable measures calculated and presented in accordance with
GAAP are provided as schedules attached to this release.
Adjusted EBITDA refers to net income before interest, other
income or expense, income taxes, depreciation and amortization, as
adjusted, to the extent they occur, for earnout accretion, earnout
fair value adjustments, contingent compensation, deferred
compensation plan income or expense, certain reorganization costs,
impairment charges and restructuring charges.
Adjusted EBITDA margin refers to Adjusted EBITDA as a percentage
of net revenue in the same period.
Adjusted net income and adjusted diluted earnings per share
reflect the exclusion of goodwill impairment, restructuring charges
and earnout fair value adjustments, net of tax.
Adjusted effective tax rate reflects the exclusion of goodwill
impairment, restructuring charges and earnout fair value
adjustments, net of tax.
The Company evaluates its results of operations on both an as
reported and a constant currency basis. The constant currency
presentation is a non-GAAP financial measure, which excludes the
impact of fluctuations in foreign currency exchange rates. The
Company believes providing constant currency information provides
valuable supplemental information regarding its results of
operations, consistent with how it evaluates its performance. The
Company calculates constant currency percentages by converting its
financial results in a local currency for a period using the
average exchange rate for the prior period to which it is
comparing. This calculation may differ from similarly titled
measures used by other companies.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the federal securities laws, including statements
regarding guidance for the third quarter of 2024. The
forward-looking statements are based on current expectations,
estimates, forecasts, and projections about the industry in which
we operate and management's beliefs and assumptions.
Forward-looking statements may be identified by the use of words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," "outlook," "projects," "forecasts," "aim" and
similar expressions. Forward-looking statements are not guarantees
of future performance, rely on a number of assumptions, and involve
certain known and unknown risks and uncertainties that are
difficult to predict, many of which are beyond our control. Factors
that may cause actual outcomes and results to differ materially
from what is expressed, forecasted or implied in the
forward-looking statements include, among other things, our ability
to attract, integrate, develop, manage, retain and motivate
qualified consultants and senior leaders; our ability to prevent
our consultants from taking our clients with them to another firm;
our ability to maintain our professional reputation and brand name;
our clients' ability to restrict us from recruiting their
employees; our heavy reliance on information management systems;
risks arising from our implementation of new technology and
intellectual property to deliver new products and services to our
clients; our dependence on third parties for the execution of
certain critical functions; the fact that we face the risk of
liability in the services we perform; the fact that data security,
data privacy and data protection laws and other evolving
regulations and cross-border data transfer restrictions may limit
the use of our services and adversely affect our business; any
challenges to the classification of our on-demand talent as
independent contractors; the fact that increased cybersecurity
requirements, vulnerabilities, threats and more sophisticated and
targeted cyber-related attacks could pose a risk to our systems,
networks, solutions, services and data; the fact that our net
revenue may be affected by adverse macroeconomic or labor market
conditions, including impacts of inflation and effects of
geopolitical instability; the aggressive competition we face; the
impact of foreign currency exchange rate fluctuations; our ability
to access additional credit; social, political, regulatory, legal
and economic risks in markets where we operate, including the
impact of the ongoing war in Ukraine and the conflict in Israel and the Gaza strip, the risks of an expansion or
escalation of those conflicts and our ability to quickly and
completely recover from any disruption to our business; unfavorable
tax law changes and tax authority rulings; our ability to realize
the benefit of our net deferred tax assets; the fact that we may
not be able to align our cost structure with net revenue; any
impairment of our goodwill, other intangible assets and other
long-lived assets; our ability to maintain an effective system of
disclosure controls and internal control over our financial
reporting and produce accurate and timely financial statements; our
ability to execute and integrate future acquisitions; and the fact
that we have anti-takeover provisions that make an acquisition of
us difficult and expensive. We caution the reader that the list of
factors may not be exhaustive. For more information on these risks,
uncertainties and other factors, refer to our Annual Report on Form
10-K for the year ended December 31,
2023, under the heading "Risk Factors" in Item 1A. The
forward-looking statements contained in this press release speak
only as of the date of this press release. We undertake no
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contacts:
Investors & Analysts:
Suzanne Rosenberg, Vice President, Investor
Relations
srosenberg@heidrick.com
Media:
Bianca Wilson,
Director of Public Relations
bwilson@heidrick.com
Heidrick & Struggles International,
Inc.
Consolidated Statements of Comprehensive Income
(Loss)
(In thousands, except
per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
278,626
|
|
$
271,225
|
|
$
7,401
|
|
2.7 %
|
Reimbursements
|
4,251
|
|
2,552
|
|
1,699
|
|
66.6 %
|
Total
revenue
|
282,877
|
|
273,777
|
|
9,100
|
|
3.3 %
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Salaries and
benefits
|
177,892
|
|
178,916
|
|
(1,024)
|
|
(0.6) %
|
General and
administrative expenses
|
46,453
|
|
40,514
|
|
5,939
|
|
14.7 %
|
Cost of
services
|
29,696
|
|
25,306
|
|
4,390
|
|
17.3 %
|
Research and
development
|
5,605
|
|
5,658
|
|
(53)
|
|
(0.9) %
|
Impairment
charges
|
16,224
|
|
7,246
|
|
8,978
|
|
123.9 %
|
Restructuring
charges
|
6,939
|
|
—
|
|
6,939
|
|
100.0 %
|
Reimbursed
expenses
|
4,251
|
|
2,552
|
|
1,699
|
|
66.6 %
|
Total operating
expenses
|
287,060
|
|
260,192
|
|
26,868
|
|
10.3 %
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(4,183)
|
|
13,585
|
|
(17,768)
|
|
(130.8) %
|
|
|
|
|
|
|
|
|
Non-operating
income
|
|
|
|
|
|
|
|
Interest,
net
|
2,612
|
|
1,913
|
|
|
|
|
Other, net
|
997
|
|
1,377
|
|
|
|
|
Net non-operating
income
|
3,609
|
|
3,290
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(574)
|
|
16,875
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
4,583
|
|
7,893
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(5,157)
|
|
8,982
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax
|
(2,094)
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$ (7,251)
|
|
$
8,907
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
20,259
|
|
20,010
|
|
|
|
|
Diluted
|
20,259
|
|
20,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
Basic
|
$
(0.25)
|
|
$
0.45
|
|
|
|
|
Diluted
|
$
(0.25)
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
as a % of net revenue
|
63.8 %
|
|
66.0 %
|
|
|
|
|
General and
administrative expenses as a % of net revenue
|
16.7 %
|
|
14.9 %
|
|
|
|
|
Cost of services as a %
of net revenue
|
10.7 %
|
|
9.3 %
|
|
|
|
|
Research and
development as a % of net revenue
|
2.0 %
|
|
2.1 %
|
|
|
|
|
Operating
margin
|
(1.5) %
|
|
5.0 %
|
|
|
|
|
Heidrick & Struggles International,
Inc.
Segment Information
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
2024
Margin1
|
|
2023
Margin1
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 147,078
|
|
$ 138,563
|
|
$
8,515
|
|
6.1 %
|
|
|
|
|
Europe
|
40,082
|
|
45,567
|
|
(5,485)
|
|
(12.0) %
|
|
|
|
|
Asia
Pacific
|
22,807
|
|
22,649
|
|
158
|
|
0.7 %
|
|
|
|
|
Total Executive
Search
|
209,967
|
|
206,779
|
|
3,188
|
|
1.5 %
|
|
|
|
|
On-Demand
Talent
|
41,895
|
|
39,240
|
|
2,655
|
|
6.8 %
|
|
|
|
|
Heidrick
Consulting
|
26,764
|
|
25,206
|
|
1,558
|
|
6.2 %
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
278,626
|
|
271,225
|
|
7,401
|
|
2.7 %
|
|
|
|
|
Reimbursements
|
4,251
|
|
2,552
|
|
1,699
|
|
66.6 %
|
|
|
|
|
Total
revenue
|
$ 282,877
|
|
$ 273,777
|
|
$
9,100
|
|
3.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 48,112
|
|
$ 46,079
|
|
$
2,033
|
|
4.4 %
|
|
32.7 %
|
|
33.3 %
|
Europe
|
2,840
|
|
5,456
|
|
(2,616)
|
|
(47.9) %
|
|
7.1 %
|
|
12.0 %
|
Asia
Pacific
|
1,740
|
|
1,630
|
|
110
|
|
6.7 %
|
|
7.6 %
|
|
7.2 %
|
Total Executive
Search
|
52,692
|
|
53,165
|
|
(473)
|
|
(0.9) %
|
|
25.1 %
|
|
25.7 %
|
On-Demand
Talent
|
(1,629)
|
|
2,587
|
|
(4,216)
|
|
(163.0) %
|
|
(3.9) %
|
|
6.6 %
|
Heidrick
Consulting
|
(1,395)
|
|
(1,662)
|
|
267
|
|
16.1 %
|
|
(5.2) %
|
|
(6.6) %
|
Total
segments
|
49,668
|
|
54,090
|
|
(4,422)
|
|
(8.2) %
|
|
17.8 %
|
|
19.9 %
|
Research and
Development
|
(4,781)
|
|
(5,218)
|
|
437
|
|
8.4 %
|
|
(1.7) %
|
|
(1.9) %
|
Global Operations
Support
|
(16,076)
|
|
(13,988)
|
|
(2,088)
|
|
(14.9) %
|
|
(5.8) %
|
|
(5.2) %
|
Total operating
income
|
$ 28,811
|
|
$ 34,884
|
|
$
(6,073)
|
|
(17.4) %
|
|
10.3 %
|
|
12.9 %
|
|
1 Margin based on revenue
before reimbursements (net revenue).
|
Heidrick & Struggles International,
Inc.
Consolidated Statements of Comprehensive
Income
(In thousands, except
per share amounts)
(Unaudited)
|
|
|
Six Months
Ended
June
30,
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
543,823
|
|
$
510,542
|
|
$
33,281
|
|
6.5 %
|
Reimbursements
|
8,152
|
|
5,354
|
|
2,798
|
|
52.3 %
|
Total
revenue
|
551,975
|
|
515,896
|
|
36,079
|
|
7.0 %
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Salaries and
benefits
|
352,305
|
|
337,775
|
|
14,530
|
|
4.3 %
|
General and
administrative expenses
|
87,816
|
|
74,841
|
|
12,975
|
|
17.3 %
|
Cost of
services
|
57,128
|
|
48,138
|
|
8,990
|
|
18.7 %
|
Research and
development
|
11,320
|
|
11,186
|
|
134
|
|
1.2 %
|
Impairment
charges
|
16,224
|
|
7,246
|
|
8,978
|
|
123.9 %
|
Restructuring
charges
|
6,939
|
|
—
|
|
6,939
|
|
100.0 %
|
Reimbursed
expenses
|
8,152
|
|
5,354
|
|
2,798
|
|
52.3 %
|
Total operating
expenses
|
539,884
|
|
484,540
|
|
55,344
|
|
11.4 %
|
|
|
|
|
|
|
|
|
Operating
income
|
12,091
|
|
31,356
|
|
(19,265)
|
|
(61.4) %
|
|
|
|
|
|
|
|
|
Non-operating
income
|
|
|
|
|
|
|
|
Interest,
net
|
6,698
|
|
5,162
|
|
|
|
|
Other, net
|
3,568
|
|
3,186
|
|
|
|
|
Net non-operating
income
|
10,266
|
|
8,348
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
22,357
|
|
39,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
13,482
|
|
15,136
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
8,875
|
|
24,568
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
(6,185)
|
|
368
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
2,690
|
|
$ 24,936
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
20,202
|
|
19,958
|
|
|
|
|
Diluted
|
21,061
|
|
20,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
Basic
|
$
0.44
|
|
$
1.23
|
|
|
|
|
Diluted
|
$
0.42
|
|
$
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
as a % of net revenue
|
64.8 %
|
|
66.2 %
|
|
|
|
|
General and
administrative expenses as a % of net revenue
|
16.1 %
|
|
14.7 %
|
|
|
|
|
Cost of services as a %
of net revenue
|
10.5 %
|
|
9.4 %
|
|
|
|
|
Research and
development as a % of net revenue
|
2.1 %
|
|
2.2 %
|
|
|
|
|
Operating
margin
|
2.2 %
|
|
6.1 %
|
|
|
|
|
Heidrick & Struggles International,
Inc.
Segment Information
(In
thousands)
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
2024
Margin1
|
|
2023
Margin1
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
283,757
|
|
$
265,890
|
|
$
17,867
|
|
6.7 %
|
|
|
|
|
Europe
|
81,563
|
|
84,498
|
|
(2,935)
|
|
(3.5) %
|
|
|
|
|
Asia
Pacific
|
46,128
|
|
46,878
|
|
(750)
|
|
(1.6) %
|
|
|
|
|
Total Executive
Search
|
411,448
|
|
397,266
|
|
14,182
|
|
3.6 %
|
|
|
|
|
On-Demand
Talent
|
79,752
|
|
70,357
|
|
9,395
|
|
13.4 %
|
|
|
|
|
Heidrick
Consulting
|
52,623
|
|
42,919
|
|
9,704
|
|
22.6 %
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
543,823
|
|
510,542
|
|
33,281
|
|
6.5 %
|
|
|
|
|
Reimbursements
|
8,152
|
|
5,354
|
|
2,798
|
|
52.3 %
|
|
|
|
|
Total
revenue
|
$
551,975
|
|
$
515,896
|
|
$
36,079
|
|
7.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Executive
Search
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 89,983
|
|
$ 88,203
|
|
$ 1,780
|
|
2.0 %
|
|
31.7 %
|
|
33.2 %
|
Europe
|
6,193
|
|
7,537
|
|
(1,344)
|
|
(17.8) %
|
|
7.6 %
|
|
8.9 %
|
Asia
Pacific
|
4,935
|
|
5,197
|
|
(262)
|
|
(5.0) %
|
|
10.7 %
|
|
11.1 %
|
Total Executive
Search
|
101,111
|
|
100,937
|
|
174
|
|
0.2 %
|
|
24.6 %
|
|
25.4 %
|
On-Demand
Talent
|
(2,550)
|
|
1,240
|
|
(3,790)
|
|
NM
|
|
(3.2) %
|
|
1.8 %
|
Heidrick
Consulting
|
(3,422)
|
|
(4,457)
|
|
1,035
|
|
23.2 %
|
|
(6.5) %
|
|
(10.4) %
|
Total
segments
|
95,139
|
|
97,720
|
|
(2,581)
|
|
(2.6) %
|
|
17.5 %
|
|
19.1 %
|
Research and
Development
|
(9,706)
|
|
(10,469)
|
|
763
|
|
7.3 %
|
|
(1.8) %
|
|
(2.1) %
|
Global Operations
Support
|
(30,754)
|
|
(26,740)
|
|
(4,014)
|
|
(15.0) %
|
|
(5.7) %
|
|
(5.2) %
|
Total Adjusted
EBITDA
|
$ 54,679
|
|
$ 60,511
|
|
$
(5,832)
|
|
(9.6) %
|
|
10.1 %
|
|
11.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Margin based on revenue
before reimbursements (net revenue).
|
Heidrick & Struggles International,
Inc.
Reconciliation of Net Income (Loss) and Adjusted Net
Income (Non-GAAP)
(In thousands, except
per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net income
(loss)
|
$
(5,157)
|
|
$
8,982
|
|
$
8,875
|
|
$
24,568
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
Impairment charges, net
of tax1
|
14,190
|
|
6,038
|
|
14,190
|
|
6,038
|
Earnout fair value
adjustment, net of tax2
|
749
|
|
—
|
|
749
|
|
—
|
Restructuring charges,
net of tax3
|
4,291
|
|
—
|
|
4,291
|
|
—
|
Total
adjustments
|
19,230
|
|
6,038
|
|
19,230
|
|
6,038
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$
14,073
|
|
$
15,020
|
|
$
28,105
|
|
$
30,606
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
20,259
|
|
20,010
|
|
20,202
|
|
19,958
|
Diluted
|
20,865
|
|
20,637
|
|
21,061
|
|
20,701
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
Basic
|
$
(0.25)
|
|
$
0.45
|
|
$
0.44
|
|
$
1.23
|
Diluted
|
$
(0.25)
|
|
$
0.44
|
|
$
0.42
|
|
$
1.19
|
|
|
|
|
|
|
|
|
Adjusted earnings
per common share
|
|
|
|
|
|
|
|
Basic
|
$
0.69
|
|
$
0.75
|
|
$
1.39
|
|
$
1.53
|
Diluted
|
$
0.67
|
|
$
0.73
|
|
$
1.33
|
|
$
1.48
|
|
1 The
Company recorded goodwill impairment charges of $14.8 million in
the On-Demand Talent segment and $1.5 million in the Europe segment
for the three and six months ended June 30, 2024. The Company
recorded a goodwill impairment charge of $7.2 million in the
Heidrick Consulting segment for the three and six months ended June
30, 2023.
|
2 The
Company recorded a fair value adjustment to increase the On-Demand
Talent earnout by $1.1 million and increase the Heidrick
Consulting earnout by $0.1 million for the three and six months
ended June 30, 2024.
|
3 The
Company recorded restructuring charges of $6.9 million for the
three and six months ended June 30, 2024.
|
Heidrick & Struggles International,
Inc.
Consolidated Balance Sheets
(In
thousands)
(Unaudited)
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
189,922
|
|
$
412,618
|
Marketable
securities
|
106,963
|
|
65,538
|
Accounts receivable,
net
|
187,113
|
|
133,128
|
Prepaid
expenses
|
28,016
|
|
23,597
|
Other current
assets
|
43,745
|
|
47,923
|
Income taxes
recoverable
|
7,660
|
|
10,410
|
Total current
assets
|
563,419
|
|
693,214
|
|
|
|
|
Non-current
assets
|
|
|
|
Property and equipment,
net
|
48,434
|
|
35,752
|
Operating lease
right-of-use assets
|
82,114
|
|
86,063
|
Assets designated for
retirement and pension plans
|
10,779
|
|
11,105
|
Investments
|
55,927
|
|
47,287
|
Other non-current
assets
|
26,875
|
|
17,071
|
Goodwill
|
183,150
|
|
202,252
|
Other intangible
assets, net
|
16,411
|
|
20,842
|
Deferred income
taxes
|
29,216
|
|
28,005
|
Total non-current
assets
|
452,906
|
|
448,377
|
|
|
|
|
Total
assets
|
$ 1,016,325
|
|
$ 1,141,591
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
19,515
|
|
$
20,837
|
Accrued salaries and
benefits
|
190,225
|
|
322,744
|
Deferred
revenue
|
44,679
|
|
45,732
|
Operating lease
liabilities
|
18,044
|
|
21,498
|
Other current
liabilities
|
25,693
|
|
21,823
|
Income taxes
payable
|
8,593
|
|
6,057
|
Total current
liabilities
|
306,749
|
|
438,691
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Accrued salaries and
benefits
|
51,404
|
|
52,108
|
Retirement and pension
plans
|
70,855
|
|
62,100
|
Operating lease
liabilities
|
78,120
|
|
78,204
|
Other non-current
liabilities
|
42,562
|
|
41,808
|
Deferred income
taxes
|
5,703
|
|
6,402
|
Total non-current
liabilities
|
248,644
|
|
240,622
|
|
|
|
|
Total
liabilities
|
555,393
|
|
679,313
|
|
|
|
|
Stockholders'
equity
|
460,932
|
|
462,278
|
|
|
|
|
Total liabilities
and stockholders' equity
|
$ 1,016,325
|
|
$ 1,141,591
|
Heidrick & Struggles International,
Inc.
Consolidated Statements of Cash
Flows
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
June
30,
|
|
|
2024
|
|
2023
|
Cash flows -
operating activities
|
|
|
|
|
Net income
|
|
$
(5,157)
|
|
$
8,982
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
3,910
|
|
4,819
|
Deferred income
taxes
|
|
(2,246)
|
|
(223)
|
Stock-based
compensation expense
|
|
3,465
|
|
1,919
|
Accretion expense
related to earnout payments
|
|
469
|
|
451
|
Gain on marketable
securities
|
|
(441)
|
|
(49)
|
Loss on disposal of
property and equipment
|
|
247
|
|
1
|
Impairment
charges
|
|
16,224
|
|
7,246
|
Changes in assets and
liabilities, net of effects of acquisition:
|
|
|
|
|
Accounts
receivable
|
|
(14,717)
|
|
(35,658)
|
Accounts
payable
|
|
(255)
|
|
(1,777)
|
Accrued
expenses
|
|
57,843
|
|
52,164
|
Restructuring
accrual
|
|
4,386
|
|
—
|
Deferred
revenue
|
|
(2,624)
|
|
396
|
Income taxes
recoverable and payable, net
|
|
645
|
|
495
|
Retirement and pension
plan assets and liabilities
|
|
347
|
|
333
|
Prepaid
expenses
|
|
3,339
|
|
4,500
|
Other assets and
liabilities, net
|
|
(2,913)
|
|
3,341
|
Net cash provided by
operating activities
|
|
62,522
|
|
46,940
|
|
|
|
|
|
Cash flows -
investing activities
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
|
—
|
|
(5,842)
|
Capital
expenditures
|
|
(10,365)
|
|
(3,006)
|
Purchases of marketable
securities and investments
|
|
(109,862)
|
|
(21,511)
|
Proceeds from sales of
marketable securities and investments
|
|
289
|
|
153
|
Net cash used in
investing activities
|
|
(119,938)
|
|
(30,206)
|
|
|
|
|
|
Cash flows -
financing activities
|
|
|
|
|
Repurchases of common
stock
|
|
—
|
|
(904)
|
Cash dividends
paid
|
|
(3,182)
|
|
(3,122)
|
Payment of employee tax
withholdings on equity transactions
|
|
(885)
|
|
—
|
Net cash used in
financing activities
|
|
(4,067)
|
|
(4,026)
|
|
|
|
|
|
Effect of exchange rate
fluctuations on cash, cash equivalents and restricted
cash
|
|
(1,426)
|
|
376
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
(62,909)
|
|
13,084
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
252,831
|
|
204,733
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$ 189,922
|
|
$ 217,817
|
Heidrick & Struggles International,
Inc.
Consolidated Statements of Cash
Flows
(In
thousands)
(Unaudited)
|
|
|
|
Six Months
Ended
June
30,
|
|
|
2024
|
|
2023
|
Cash flows -
operating activities
|
|
|
|
|
Net income
|
|
$
8,875
|
|
$
24,568
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
8,700
|
|
8,692
|
Deferred income
taxes
|
|
(2,333)
|
|
6,446
|
Stock-based
compensation expense
|
|
6,109
|
|
3,772
|
Accretion expense
related to earnout payments
|
|
935
|
|
642
|
Gain on marketable
securities
|
|
(980)
|
|
(1,694)
|
Loss on disposal of
property and equipment
|
|
261
|
|
131
|
Impairment
charges
|
|
16,224
|
|
7,246
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(55,842)
|
|
(59,990)
|
Accounts
payable
|
|
(2,324)
|
|
(2,914)
|
Accrued
expenses
|
|
(124,747)
|
|
(273,811)
|
Restructuring
accrual
|
|
4,386
|
|
—
|
Deferred
revenue
|
|
(673)
|
|
543
|
Income taxes
recoverable and payable, net
|
|
5,368
|
|
(2,588)
|
Retirement and pension
plan assets and liabilities
|
|
5,800
|
|
6,403
|
Prepaid
expenses
|
|
(4,652)
|
|
(2,635)
|
Other assets and
liabilities, net
|
|
(6,009)
|
|
(4,902)
|
Net cash used in
operating activities
|
|
(140,902)
|
|
(290,091)
|
|
|
|
|
|
Cash flows -
investing activities
|
|
|
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
(35,749)
|
Capital
expenditures
|
|
(16,538)
|
|
(6,814)
|
Purchases of marketable
securities and investments
|
|
(115,262)
|
|
(27,683)
|
Proceeds from sales of
marketable securities and investments
|
|
66,574
|
|
268,118
|
Net cash provided by
(used in) investing activities
|
|
(65,226)
|
|
197,872
|
|
|
|
|
|
Cash flows -
financing activities
|
|
|
|
|
Repurchases of common
stock
|
|
—
|
|
(904)
|
Cash dividends
paid
|
|
(6,398)
|
|
(6,234)
|
Payment of employee tax
withholdings on equity transactions
|
|
(3,747)
|
|
(4,141)
|
Acquisition earnout
payments
|
|
—
|
|
(35,946)
|
Net cash used in
financing activities
|
|
(10,145)
|
|
(47,225)
|
|
|
|
|
|
Effect of exchange rate
fluctuations on cash, cash equivalents and restricted
cash
|
|
(6,423)
|
|
1,772
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(222,696)
|
|
(137,672)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
412,618
|
|
355,489
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
189,922
|
|
$
217,817
|
Heidrick & Struggles International,
Inc.
Reconciliation of Net Income (Loss) to Adjusted
EBITDA (Non-GAAP)
(In
thousands)
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenue before
reimbursements (net revenue)
|
$
278,626
|
|
$
271,225
|
|
$
543,823
|
|
$
510,542
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(5,157)
|
|
8,982
|
|
8,875
|
|
24,568
|
Interest,
net
|
(2,612)
|
|
(1,913)
|
|
(6,698)
|
|
(5,162)
|
Other, net
|
(997)
|
|
(1,377)
|
|
(3,568)
|
|
(3,186)
|
Provision for income
taxes
|
4,583
|
|
7,893
|
|
13,482
|
|
15,136
|
Operating income
(loss)
|
(4,183)
|
|
13,585
|
|
12,091
|
|
31,356
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
Depreciation
|
1,990
|
|
2,172
|
|
4,483
|
|
4,176
|
Intangible
amortization
|
1,920
|
|
2,647
|
|
4,217
|
|
4,516
|
Earnout
accretion
|
469
|
|
451
|
|
935
|
|
642
|
Earnout fair value
adjustments
|
1,211
|
|
—
|
|
1,211
|
|
—
|
Acquisition contingent
consideration
|
3,285
|
|
3,784
|
|
5,273
|
|
5,443
|
Deferred compensation
plan
|
956
|
|
1,603
|
|
3,306
|
|
3,736
|
Reorganization
costs
|
—
|
|
3,396
|
|
—
|
|
3,396
|
Impairment
charges
|
16,224
|
|
7,246
|
|
16,224
|
|
7,246
|
Restructuring
charges
|
6,939
|
|
—
|
|
6,939
|
|
—
|
Total
adjustments
|
32,994
|
|
21,299
|
|
42,588
|
|
29,155
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 28,811
|
|
$ 34,884
|
|
$ 54,679
|
|
$ 60,511
|
Adjusted EBITDA
margin
|
10.3 %
|
|
12.9 %
|
|
10.1 %
|
|
11.9 %
|
Heidrick & Struggles International,
Inc.
Reconciliation of Operating Income to Adjusted EBITDA
by Line of Business (Non-GAAP)
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
June 30, 2024
|
|
Executive
Search
|
|
On-Demand
Talent
|
|
Heidrick
Consulting
|
|
Research &
Development
|
|
Global
Operations Support
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
209,967
|
|
$ 41,895
|
|
$ 26,764
|
|
$
—
|
|
$
—
|
|
$
278,626
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)1
|
46,821
|
|
(21,695)
|
|
(6,530)
|
|
(5,605)
|
|
(17,174)
|
|
(4,183)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
863
|
|
117
|
|
82
|
|
809
|
|
119
|
|
1,990
|
Intangible
amortization
|
20
|
|
1,533
|
|
367
|
|
—
|
|
—
|
|
1,920
|
Earnout
accretion
|
—
|
|
409
|
|
60
|
|
—
|
|
—
|
|
469
|
Earnout fair value
adjustments
|
—
|
|
1,125
|
|
86
|
|
—
|
|
—
|
|
1,211
|
Acquisition contingent
compensation
|
295
|
|
1,835
|
|
1,155
|
|
—
|
|
—
|
|
3,285
|
Deferred compensation
plan
|
920
|
|
—
|
|
18
|
|
15
|
|
3
|
|
956
|
Impairment
charges
|
1,463
|
|
14,761
|
|
—
|
|
—
|
|
—
|
|
16,224
|
Restructuring
charges
|
2,310
|
|
286
|
|
3,367
|
|
—
|
|
976
|
|
6,939
|
Total
adjustments
|
5,871
|
|
20,066
|
|
5,135
|
|
824
|
|
1,098
|
|
32,994
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 52,692
|
|
$
(1,629)
|
|
$
(1,395)
|
|
$
(4,781)
|
|
$ (16,076)
|
|
$ 28,811
|
Adjusted EBITDA
margin
|
25.1 %
|
|
(3.9) %
|
|
(5.2) %
|
|
(1.7) %
|
|
(5.8) %
|
|
10.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2023
|
|
Executive
Search
|
|
On-Demand
Talent
|
|
Heidrick
Consulting
|
|
Research &
Development
|
|
Global
Operations Support
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
206,779
|
|
$ 39,240
|
|
$ 25,206
|
|
$
—
|
|
$
—
|
|
$
271,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)1
|
46,940
|
|
(2,862)
|
|
(10,686)
|
|
(5,658)
|
|
(14,149)
|
|
13,585
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
1,297
|
|
116
|
|
183
|
|
416
|
|
160
|
|
2,172
|
Intangible
amortization
|
53
|
|
2,151
|
|
443
|
|
—
|
|
—
|
|
2,647
|
Earnout
accretion
|
—
|
|
394
|
|
57
|
|
—
|
|
—
|
|
451
|
Acquisition contingent
compensation
|
1,165
|
|
1,561
|
|
1,058
|
|
—
|
|
—
|
|
3,784
|
Deferred compensation
plan
|
1,541
|
|
—
|
|
37
|
|
24
|
|
1
|
|
1,603
|
Reorganization
costs
|
2,169
|
|
1,227
|
|
—
|
|
—
|
|
—
|
|
3,396
|
Impairment
charges
|
—
|
|
—
|
|
7,246
|
|
—
|
|
—
|
|
7,246
|
Total
adjustments
|
6,225
|
|
5,449
|
|
9,024
|
|
440
|
|
161
|
|
21,299
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 53,165
|
|
$
2,587
|
|
$
(1,662)
|
|
$
(5,218)
|
|
$ (13,988)
|
|
$ 34,884
|
Adjusted EBITDA
margin
|
25.7 %
|
|
6.6 %
|
|
(6.6 %)
|
|
(1.9) %
|
|
(5.2) %
|
|
12.9 %
|
|
1 The
Company does not allocate interest income or expense, other income
or expense, and the provision for income taxes to the Company's
reportable operating segments. As such, the Company has concluded
that operating income (loss) represents the most directly
comparable measure of financial performance presented in accordance
with U.S. GAAP for the reconciliation of Adjusted EBITDA in this
presentation.
|
Heidrick & Struggles International,
Inc.
Reconciliation of Operating Income (Loss) to Adjusted
EBITDA (Non-GAAP)
(In
thousands)
(Unaudited)
|
|
|
Six Months Ended
June 30, 2024
|
|
Executive
Search
|
|
On-Demand
Talent
|
|
Heidrick
Consulting
|
|
Research &
Development
|
|
Global
Operations
Support
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
411,448
|
|
$ 79,752
|
|
$ 52,623
|
|
$
—
|
|
$
—
|
|
$
543,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)1
|
92,353
|
|
(26,544)
|
|
(10,372)
|
|
(11,320)
|
|
(32,026)
|
|
12,091
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
2,104
|
|
248
|
|
279
|
|
1,563
|
|
289
|
|
4,483
|
Intangible
amortization
|
37
|
|
3,368
|
|
812
|
|
—
|
|
—
|
|
4,217
|
Earnout
accretion
|
—
|
|
815
|
|
120
|
|
—
|
|
—
|
|
935
|
Earnout fair value
adjustments
|
—
|
|
1,125
|
|
86
|
|
—
|
|
—
|
|
1,211
|
Acquisition contingent
compensation
|
(335)
|
|
3,391
|
|
2,217
|
|
—
|
|
—
|
|
5,273
|
Deferred compensation
plan
|
3,179
|
|
—
|
|
69
|
|
51
|
|
7
|
|
3,306
|
Impairment
charges
|
1,463
|
|
14,761
|
|
—
|
|
—
|
|
—
|
|
16,224
|
Restructuring
charges
|
2,310
|
|
286
|
|
3,367
|
|
—
|
|
976
|
|
6,939
|
Total
adjustments
|
8,758
|
|
23,994
|
|
6,950
|
|
1,614
|
|
1,272
|
|
42,588
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
101,111
|
|
$
(2,550)
|
|
$
(3,422)
|
|
$
(9,706)
|
|
$ (30,754)
|
|
$ 54,679
|
Adjusted EBITDA
margin
|
24.6 %
|
|
(3.2 %)
|
|
(6.5 %)
|
|
(1.8 %)
|
|
(5.7) %
|
|
10.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2023
|
|
Executive
Search
|
|
On-Demand
Talent
|
|
Heidrick
Consulting
|
|
Research &
Development
|
|
Global
Operations Support
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before
reimbursements (net revenue)
|
$
397,266
|
|
$ 70,357
|
|
$ 42,919
|
|
$
—
|
|
$
—
|
|
$
510,542
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)1
|
90,633
|
|
(7,226)
|
|
(13,802)
|
|
(11,186)
|
|
(27,063)
|
|
31,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
2,640
|
|
201
|
|
351
|
|
664
|
|
320
|
|
4,176
|
Intangible
amortization
|
105
|
|
3,868
|
|
543
|
|
—
|
|
—
|
|
4,516
|
Earnout
accretion
|
—
|
|
585
|
|
57
|
|
—
|
|
—
|
|
642
|
Acquisition contingent
compensation
|
1,800
|
|
2,585
|
|
1,058
|
|
—
|
|
—
|
|
5,443
|
Deferred compensation
plan
|
3,590
|
|
—
|
|
90
|
|
53
|
|
3
|
|
3,736
|
Reorganization
costs
|
2,169
|
|
1,227
|
|
—
|
|
—
|
|
—
|
|
3,396
|
Impairment
charges
|
—
|
|
—
|
|
7,246
|
|
—
|
|
—
|
|
7,246
|
Total
adjustments
|
10,304
|
|
8,466
|
|
9,345
|
|
717
|
|
323
|
|
29,155
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
100,937
|
|
$
1,240
|
|
$
(4,457)
|
|
$ (10,469)
|
|
$ (26,740)
|
|
$ 60,511
|
Adjusted EBITDA
margin
|
25.4 %
|
|
1.8 %
|
|
(10.4 %)
|
|
(2.1 %)
|
|
(5.2 %)
|
|
11.9 %
|
|
1 The
Company does not allocate interest income or expense, other income
or expense, and the provision for income taxes to the Company's
reportable operating segments. As such, the Company has concluded
that operating income (loss) represents the most directly
comparable measure of financial performance presented in accordance
with U.S. GAAP for the reconciliation of Adjusted EBITDA in this
presentation.
|
View original
content:https://www.prnewswire.com/news-releases/heidrick--struggles-reports-second-quarter-2024-results-302208923.html
SOURCE Heidrick & Struggles