November 5, 2019 – Hudson Global Inc. / (NASDAQ:HSON) posted third quarter revenues of $25.8 million, up 50.4 percent from a year ago. By region, Hudson Asia Pacific led the charge, recording a revenue gain of 97 percent. Revenue growth in Asia Pacific was driven by the start of a significant contract in Australia to manage a portion of the contingent workforce for a “large Asia-based technology company,” according to Hudson.
Hudson Europe posted a revenue gain of 20 percent while Hudson America recorded a two percent decline. The Old Greenwich, Conn-based recruiting firm posted a net loss of $0.9 million, or $0.29 per basic and diluted share, compared with net loss of $0.4 million, or $0.12 per basic and diluted share, for the third quarter of 2018.
“In the third quarter, we reported positive adjusted EBITDA, cash flow from operations and net income,” said Jeff Eberwein, CEO of Hudson Global. “Additionally, we grew gross profit in constant currency in all three regions.”
“In September, Hudson RPO ranked among HRO Today magazine’s Bakers Dozen list of top enterprise RPO providers for the tenth consecutive year,” Mr. Eberwein said. “This recognition is a tremendous accolade for all team members at Hudson RPO. We are honored that based on client feedback we have consistently ranked as a top global RPO provider.”
Share Repurchase Program
Under its $10 million common stock share repurchase program initiated in the third quarter of 2015 through the end of the third quarter of 2019, Hudson Global has purchased 427,131 shares for a total of $8.2 million. The company continues to view opportunistic share repurchases as an attractive use of capital and expects to continue its aggressive share repurchase strategy going forward.
Vast Majority of Recruiting Firms Expect Increases in 2019
A brand new report by Bullhorn has found that 79 percent of recruiting firms expect to bring in more revenue this year than last. Optimism reigns across the sector despite growing concerns and emerging challenges related to automation, macroeconomics and politics.
In addition, Hudson Global completed a tender offer in March for 246,863 shares of the company’s common stock for an aggregate cost of $3.7 million, excluding fees and expenses relating to the tender offer. The 246,863 shares purchased as part of this tender offer were in addition to the 427,131 shares purchased under the above-referenced common stock repurchase plan.
Hudson Global recently added Mimi Drake and Connia Nelson as new independent directors to its board of directors. Ms. Drake is co-CEO of Permit Capital Advisors, an investment advisory firm based in suburban Philadelphia. Ms. Nelson is the senior vice president and CHRO for LifeWay.
“Last year we began a formal process to identify potential new directors to enhance our board,” said Richard Coleman, Hudson Global’s chairman of the board. “After conducting a thorough search, we are excited to announce the addition of Ms. Drake and Ms. Nelson to the Hudson Global board. Their extensive management, leadership and human resources experience make them exceptionally qualified to serve as independent directors.”
“Ms. Drake’s board experience coupled with her passion for improving workplace diversity and inclusion will make a significant and immediate contribution to the company,” Mr. Coleman said. “Ms. Nelson’s human resources background and talent management expertise lend themselves particularly well to Hudson Global’s business. And she brings a strong client perspective to our board.”
“Both appointments reflect our strong belief that the makeup of our board should reflect the values, experiences and diversity of thought of our employees and clients,” he said.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media