Heidrick & Struggles Posts Big Declines

November 1, 2012 – The nation's No. 3 executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $117.3 million for the third quarter ended September 30, 2012, down 17.5 percent from $142.2 million a year ago. Year over year, net revenue declined 5.8 percent in the Americas, 43 percent in Europe (approximately 38 percent on a constant currency basis), and 15.2 percent in Asia Pacific (approximately 12 percent on a constant currency basis). All industry sectors failed to perform except the firm's education & social enterprise practice. Net revenue from Heidrick's leadership consulting business was $8.9 million, down 31.3 percent from the prior year quarter, and represented a declining percentage of total net revenue. With less business came 54 cuts in the firm's recruiting and leadership consultant ranks. Executive search confirmations in the quarter declined by 20 percent while productivity, as measured by annualized net revenue per consultant, declined to $1.4 million from $1.5 million in the same reporting period in 2011. Average revenue per recruitment assignment dropped to $117,600 from $123,700 in the comparable third quarter last year. For the nine months ended September 30, 2012 consolidated net revenue of $339.9 million declined 15.2 percent from $400.6 million in the first nine months of 2011. Last year the firm grew about six percent for the year.