Heidrick & Struggles Revenue Nosedives 36 Percent
February 23, 2010 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $109.9 million for the fourth quarter ended December 31, 2009, a decline of 18.6 percent from $134.9 million a year ago. Net revenue declined 18.1 percent in the Americas and 28.6 percent in Europe (approximately 34 percent on a constant currency basis), and increased 1.4 percent in the Asia Pacific region (a decline of approximately nine percent on a constant currency basis). Heidrick posted net income of $9.4 million, or 52 cents a share, compared with $5.3 million, or 30 cents a share, a year ago. Analysts were expecting earnings of 35 cents a share on revenue of $105.8 million, according to Thomson Reuters. The number of executive search confirmations in the quarter increased 7.1 percent compared to the 2008 fourth quarter, and declined one percent compared to the 2009 third quarter. The number of consultants at December 31, 2009 was 359, compared to 419 at the prior year. Productivity, as measured by annualized net revenue per consultant, was $1.2 million compared to $1.3 million in the 2008 fourth quarter. The average revenue per executive search was $104,900 compared to $141,300 a year ago. For the full year, Heidrick recorded consolidated net revenue of $395.7 million, a decrease of 35.8 percent from $615.9 million in 2008. Net revenue declined 35.9 percent in the Americas, 40.7 percent in Europe (approximately 35 percent on a constant currency basis) and 25.3 percent in Asia Pacific (approximately 24 percent on a constant currency basis). The firm reported operating loss was $26.7 million compared to operating income of $55.5 million in 2008.