Heidrick & Struggles Posts Major Revenue Decline

July 29, 2009 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $93.1 million for the second quarter ended June 30, 2009, a decline of 45.1 percent from $169.5 million in the 2008 second quarter. Net revenue declined 44.4 percent in the Americas, 48.5 percent in Europe (approximately 39 percent on a constant currency basis), and 40.7 percent in the Asia Pacific region (approximately 36 percent on a constant currency basis). The firm recorded a net loss was $15.8 million, or 93 cents a share, compared with net income of $12.7 million, or 72 cents per share, a year ago. The number of executive search confirmations in the quarter decreased 37.1 percent compared to the 2008 second quarter and was essentially the same as in the 2009 first quarter. The number of consultants at June 2009 was 380, compared to 408 at June 2008, and 403 at March 2009. Productivity, as measured by annualized net revenue per consultant, was $900,000 compared to $1.7 million in the 2008 second quarter. The average revenue per executive search was $102,700 compared to $122,200 in last year's second quarter. “Year-over-year comparisons reflect the severity of this historic recession on our business,” said CEO L. Kevin Kelly. “There were also some encouraging improvements in the business as compared to the first quarter including an increase in net revenue, driven by the Americas and Asia Pacific, and stability in the level of search confirmations.”

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