Hudson Global Revenues Fall After Several Business Units Exit
May 2, 2016 – Hudson Global Inc. / (NASDAQ:HSON) posted first quarter revenues of $101.2 million, down 14.4 percent in constant currency, from a year ago.
However, revenue edged up slightly by 0.4 percent on a constant currency basis when excluding the Americas IT business, which it sold it to Mastech Holdings last June; its Netherlands business, which it sold to InterBalance Group BV; and the Ukraine, Czech Republic, Slovakia and Luxembourg, markets Hudson exited last year.
Hudson’s Americas revenue fell 65 percent year over year, but was up 10.4 percent when excluding the Americas IT business. Hudson’s Europe revenue was down 23.1 percent, or 19.8 percent in constant currency.
The New York-headquartered recruiting company recorded a loss of $3.5 million, or $0.10 cents per share, compared with net loss of $6.8 million, or $0.21 per basic and diluted share, for the first quarter of 2015.
“We are encouraged by the continued gross margin growth in many of our key markets, including Australia, Belgium and the Americas,” said CEO Stephen Nolan. “We delivered significantly improved adjusted EBITDA performance against prior year for the third consecutive quarter, amidst variable economic conditions.” He said he expects to deliver positive adjusted EBITDA in 2016.
During the first quarter, the company continued its share repurchase program which has an authorization of up to $10 million of the company’s common stock. The company purchased 366,113 shares for $1 million as part of the repurchase program during the first quarter. Since the inception of this program in the third quarter of 2015 through the end of the first quarter of 2016, the company has purchased 893,747 shares for $2.4 million.
In addition, Hudson paid its first quarterly cash dividend of $1.7 million, or $0.05 per share, on March 25. On April 27, the board approved its second quarterly cash dividend of $0.05 per share.
For the current quarter ending in July, Hudson Global said it expects revenue in the range of $105 million to $115 million.
The company’s shares closed at $2.57 on Friday. A year ago, they were trading at $2.58. The company has a market cap of $89 million.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media