Heidrick & Struggles Post 15.8 Percent Revenue Gain

February 22, 2011 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $127.2 million for the fourth quarter ended December 31, 2010, a gain of 15.8 percent from $109.9 million a year ago. Net revenue increased 19.1 percent in the Americas, 7.8 percent in Europe (approximately 14 percent on a constant currency basis), and 19.3 percent in the Asia Pacific region (approximately 13 percent on a constant currency basis). Heidrick posted net income of $5.2 million, or 29 cents a share, compared with $9.4 million, or 52 cents a share, a year ago. Analysts were expecting earnings of 37 cents a share on revenue of $124.5 million, according to Thomson Reuters. The number of executive search and leadership consulting consultants at the end of the year was 347, compared to 359 at the end of 2009. The average revenue per executive search was $112,600 compared to $104,900 the previous year. For the full year, Heidrick recorded consolidated net revenue of $493.1 million, a rise of 24.6 percent from $395.7 million in 2009. Net revenue increased 26.9 percent in the Americas region, 6.6 percent in Europe (approximately nine percent on a constant currency basis), and 47.5 percent in Asia Pacific (approximately 39 percent on a constant currency basis). "Following the historic drop in our business in 2009, we achieved a number of significant improvements in 2010. To improve our competitiveness and better position us for future growth, we invested heavily in hiring, development, and retention initiatives, as well as our business processes,” said CEO L. Kevin Kelly. “These investments weighed on our margins, as did challenges we faced in Europe. However, our business in Europe is beginning to show improvement and we are confident that the investments we are making further position us as an integrated provider of leadership advisory services."