Hudson Global Posts 20 Percent Revenue Decline
March 21, 2016 – Hudson Global Inc./(NASDAQ:HSON) reported 2015 full-year revenues of $463.2 million, down 20.3 percent (9.7 percent in constant currency), from $581.2 million in 2014. The results excluded the Americas IT and the Netherlands businesses which were sold during the second quarter of 2015.
The New York-based recruiting company record net income of $2.3 million, or $0.07 per basic and diluted share, compared with net loss of $13.2 million, or $0.40 per basic and diluted share, in 2014.
During 2015, the company continued to execute on strategic actions in its previously announced efforts to focus on its core business lines and growth opportunities. During the second quarter, these actions included the divestiture of the company’s Netherlands business as well as its Americas IT business. The company also exited its operations in Ukraine, Czech Republic, Slovakia and Luxembourg.
For the fourth quarter, Hudson posted revenues of $106.1 million, an 8.9 percent decrease (increased 0.9 percent in constant currency) from revenues of $136.7 million during the same period a year ago. These results also excluded the Americas IT and the Netherlands businesses.
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Hudson posted a net loss of $2.6 million during the quarter, or $0.08 per basic and diluted share, compared with net income of $2.7 million, or $0.08per basic and diluted share, for the fourth quarter of 2014.
In the fourth quarter, the company completed the reduction in stranded support costs in the Americas following the exit of its Legal eDiscovery and IT businesses, in the fourth quarter of 2014 and second quarter of 2015, respectively.
With these strategic divestitures complete, the company is now a more streamlined organization that is focused on delivering sustainable profitability in its core businesses — recruitment process outsourcing (RPO), talent management and recruitment — where it continues to invest in fee earners to drive growth.
“We continued to deliver constant currency gross margin growth in key practices and markets in the fourth quarter,” said CEO Stephen Nolan. “After completing significant strategic actions in 2014 and 2015 to narrow our focus on core businesses and reduce our cost structure, we are pleased to have delivered positive adjusted EBITDA in the fourth quarter. As a signal of the progress the company has made, we have initiated a dividend payment to shareholders starting later this month while we expect to continue our share buyback program.”
The company’s shares closed at $2.70. A year ago, they were trading at $2.80.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media
