Heidrick & Struggles Posts 13 Percent Revenue Rise

July 28, 2011 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $142.8 million, an increase 13.3 percent from $126.1 million in the 2010 second quarter. Year over year, net revenue increased 18 percent in the Americas, 8.8 percent in Europe (a decline of approximately three percent on a constant currency basis), and 7.7 percent in Asia Pacific (a decline of approximately three percent on a constant currency basis). Net revenue from the firm’s Leadership Consulting Services unit increased 50 percent to $12.3 million and represented 8.6 percent of consolidated net revenue in the quarter. The number of executive search and leadership consulting consultants at June 30, 2011 was 386, compared to 343 at June 30, 2010, and 372 at March 31, 2011. The number of executive search confirmations in the quarter increased 12.4 percent compared to the 2010 second quarter, and increased 14.8 percent compared to the 2011 first quarter. Net income was $7.4 million and diluted earnings per share $0.41, based upon an effective tax rate in the quarter of 32.5 percent. In the 2010 second quarter, net income was $2.7 million and diluted earnings per share were $0.15, which reflected an effective tax rate of 49.9 percent. CEO L. Kevin Kelly said, "We were pleased with how confirmation trends improved in the second quarter and helped drive double digit sequential revenue growth in each region. The improving productivity is also encouraging given the number of new hires and promotions we've made in the last year. With consultant and employee hiring essentially complete for the year, we are focused on leveraging productivity and lowering operating costs in order to achieve and sustain higher operating margins."

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