Hudson Global, Inc. (Nasdaq: HSON), a leading global talent
solutions company, announced today financial results for the fourth
quarter and full year ended December 31, 2023.
2023 Fourth
Quarter Summary
- Revenue of $34.0 million decreased
22.1% from the fourth quarter of 2022, or 22.4% in constant
currency.
- Adjusted net revenue of $16.5
million decreased 25.3% from the fourth quarter of 2022, or 25.9%
in constant currency.
- Net income of $0.7 million, or
$0.23 per diluted share, versus net income of $0.1 million, or
$0.02 per diluted share, in the fourth quarter of 2022. Adjusted
net income per diluted share (Non-GAAP measure)* decreased to $0.04
from adjusted net income per diluted share of $0.33 in the fourth
quarter of 2022.
- Adjusted EBITDA (Non-GAAP measure)*
decreased to $0.1 million, versus adjusted EBITDA of $2.4 million
in the fourth quarter of 2022.
2023 Full-Year
Summary
- Revenue of $161.3 million decreased
19.7% from 2022, or 17.7% in constant currency.
- Adjusted net revenue of $80.3
million decreased 19.1% from 2022, or 18.1% in constant
currency.
- Net income of $2.2 million, or
$0.70 per diluted share, compared to net income of $7.1 million, or
$2.27 per diluted share, in 2022. Adjusted net income per diluted
share (Non-GAAP measure)* of $0.86 decreased from adjusted net
income per diluted share of $3.38 in the prior year.
- Adjusted EBITDA (Non-GAAP measure)*
was $5.9 million, versus adjusted EBITDA of $16.4 million in
2022.
Jeff Eberwein, Chief Executive Officer at Hudson
Global, said, "Our fourth quarter financial results continued to
reflect the year-over-year impact of the slowdown in the US
technology sector and as well as fourth quarter hiring delays at
certain clients, which we expect to recover beginning in the second
quarter of 2024. In addition, we made significant reductions to our
cost structure in the second half of 2023 and first quarter of 2024
while retaining the ability to deliver excellent service to our
clients when activity rebounds."
Mr. Eberwein continued, "The fourth quarter
represented a significant strategic shift for Hudson RPO. In
November, we hired Jake Zabkowicz as Hudson RPO's Global CEO, and
he has begun implementing numerous positive changes to the
business, including expanding our geographic presence as well as
our service offering to existing RPO clients. These growth
initiatives, coupled with 2023's significant new business wins,
give us high confidence in our business improving in 2024. This
confidence is demonstrated by our extensive history of
opportunistic share repurchases, including a recent January 2024
repurchase via a privately negotiated transaction."
* The Company provides Non-GAAP measures as a
supplement to financial results based on accounting principles
generally accepted in the United States ("GAAP"). Constant
currency, adjusted EBITDA, EBITDA, and adjusted net income or loss
per diluted share are defined in the segment tables at the end of
this release and a reconciliation of such Non-GAAP measures to the
most directly comparable GAAP measures is included within such
segment tables.
Regional Highlights
All growth rate comparisons are in
constant currency.
Americas
In the fourth quarter of 2023, Americas revenue
of $6.2 million decreased 38% and adjusted net revenue of $6.0
million also decreased 37% in constant currency compared to the
fourth quarter of 2022. EBITDA was $0.2 million in the fourth
quarter of 2023 compared to EBITDA loss of $0.6 million in same
period last year. Adjusted EBITDA loss was $0.7 million for the
fourth quarter of 2023 compared to adjusted EBITDA of $0.5 million
a year ago.
For full year 2023, Americas revenue of $31.3
million decreased 39% and adjusted net revenue of $30.1 million
decreased 38% in constant currency from 2022. EBITDA loss was $0.7
million for full year 2023 compared to EBITDA of $4.9 million in
2022. Adjusted EBITDA loss was $0.4 million for full year 2023
compared to adjusted EBITDA of $9.3 million in 2022.
Asia Pacific
Asia Pacific revenue of $22.1 million decreased
18% and adjusted net revenue of $6.9 million decreased 18% in
constant currency in the fourth quarter of 2023 compared to the
same period in 2022. EBITDA was $0.4 million in the fourth quarter
of 2023 compared to EBITDA of $1.7 million a year ago. Asia Pacific
delivered adjusted EBITDA of $0.9 million in the fourth quarter of
2023 versus adjusted EBITDA of $2.1 million in the fourth quarter
of 2022.
For full year 2023, Asia Pacific revenue of
$103.9 million decreased 9% and adjusted net revenue of $33.7
million increased 2% in constant currency compared to 2022. EBITDA
for full year 2023 was $5.9 million, compared to EBITDA of $7.3
million in 2022. Adjusted EBITDA for full year 2023 was $7.6
million versus $8.8 million in 2022.
Europe
Europe revenue of $5.7 million decreased 17% and
adjusted net revenue of $3.6 million decreased 17% in constant
currency in the fourth quarter of 2023 compared to the fourth
quarter of 2022. EBITDA was $0.6 million in the fourth quarter of
2023, compared to EBITDA of $0.5 million in the same period one
year ago. Adjusted EBITDA was $0.6 million in the fourth quarter of
2023 compared to $0.5 million a year ago.
For full year 2023, Europe revenue of $26.2
million decreased 15% and adjusted net revenue of $16.5 million
increased 2% in constant currency compared to 2022. EBITDA was $1.6
million for full year 2023 compared to $1.5 million in 2022.
Adjusted EBITDA was $2.4 million for full year 2023 compared to
adjusted EBITDA of $2.0 million in 2022.
Corporate Costs
The Company's corporate costs of $0.7 million
for the fourth quarter of 2023 excluded $0.2 million of
non-recurring expenses. This compares to corporate costs of $0.7
million in the fourth quarter of 2022, which also excluded $0.2
million of non-recurring expenses.
The Company's corporate costs of $3.7 million
for the year ended 2023 excluded $0.7 million of non-recurring
expenses. This compares to corporate costs of $3.7 million for the
year ended 2022, which excluded $0.3 million of non-recurring
expenses.
Liquidity and Capital Resources
The Company ended the fourth quarter of 2023
with $23.2 million in cash, including $0.6 million in restricted
cash. The Company generated $3.3 million in cash flow from
operations in the fourth quarter of 2023 compared to $4.4 million
in the fourth quarter of 2022. For the full year, the company
generated $0.3 million in cash flow from operations compared to
$9.5 million a year ago.
Share Repurchase Program
As a reminder, the Company approved a $5 million
common stock share repurchase program, effective August 8, 2023.
Under this program, the Company acquired 11,392 shares for a total
of $0.2 million in the fourth quarter.
In addition, the Company repurchased 44,250
shares in the first quarter of 2024 in a privately negotiated
transaction. The Company continues to view share repurchases as an
attractive use of capital.
NOL Carryforward
As of December 31, 2023, Hudson Global had $301
million of usable net operating losses (“NOL”) in the U.S., which
the Company considers to be a very valuable asset for its
stockholders. In order to protect the value of the NOL for all
stockholders, the Company has a rights agreement and charter
amendment in place that limit beneficial ownership of Hudson Global
common stock to 4.99%. Stockholders who wish to own more than 4.99%
of Hudson Global common stock, or who already own more than 4.99%
of Hudson Global common stock and wish to buy more, may only
acquire additional shares with the Board’s prior written
approval.
COVID-19 Update
The Company is vigilantly monitoring the
business environment surrounding COVID-19 and continues to
proactively address this situation as it evolves. The Company
believes it can continue to take appropriate actions to manage the
business in this challenging environment due to the flexibility of
its workforce and the strength of its balance sheet.
Conference Call/Webcast
The Company will conduct a conference call
today, March 14, 2024, at 10:00 a.m. ET to discuss this
announcement. Individuals wishing to listen can access the webcast
on the investor information section of the Company's web site at
hudsonrpo.com.
If you wish to join the conference call, please
use the dial-in information below:
- Toll-Free Dial-In Number: (833)
816-1383
- International Dial-In Number: (412)
317-0476
The archived call will be available on the
investor information section of the Company's web site at
hudsonrpo.com.
About Hudson Global
Hudson Global, Inc. is a leading global total
talent solutions provider operating under the brand name Hudson
RPO. We deliver innovative, customized recruitment outsourcing and
total talent solutions to organizations worldwide. Through our
consultative approach, we develop tailored talent solutions
designed to meet our clients’ strategic growth initiatives. As a
trusted advisor, we meet our commitments, deliver quality and
value, and strive to exceed expectations.
For more information, please visit us at
hudsonrpo.com or contact us at ir@hudsonrpo.com.
Investor Relations:The Equity GroupLena Cati212 836-9611 /
lcati@equityny.com
Forward-Looking Statements
This press release contains statements that the
Company believes to be "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
Section 21E of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in
this press release, including statements regarding the Company's
future financial condition, results of operations, business
operations and business prospects, are forward-looking statements.
Words such as “anticipate,” "estimate," "expect," "project,"
"intend," "plan," "predict," "believe" and similar words,
expressions and variations of these words and expressions are
intended to identify forward-looking statements. All
forward-looking statements are subject to important factors, risks,
uncertainties, and assumptions, including industry and economic
conditions that could cause actual results to differ materially
from those described in the forward-looking statements. Such
factors, risks, uncertainties and assumptions include, but are not
limited to, global economic fluctuations; the Company’s ability to
successfully achieve its strategic initiatives ; risks related to
potential acquisitions or dispositions of businesses by the
Company; the Company’s ability to operate successfully as a company
focused on its RPO business; risks related to fluctuations in the
Company’s operating results from quarter to quarter due to various
factors such as rising inflationary pressures and interest rates;
the loss of or material reduction in our business with any of the
Company’s largest customers; the ability of clients to terminate
their relationship with the Company at any time; competition in the
Company’s markets; the negative cash flows and operating losses
that may recur in the future; risks relating to how future credit
facilities may affect or restrict our operating flexibility; risks
associated with the Company’s investment strategy; risks related to
international operations, including foreign currency fluctuations,
political events, natural disasters or health crises, including the
Russia-Ukraine war, the Hamas-Israel war, and potential conflict in
the Middle East; the Company’s dependence on key management
personnel; the Company’s ability to attract and retain highly
skilled professionals, management, and advisors; the Company’s
ability to collect accounts receivable; the Company’s ability to
maintain costs at an acceptable level; the Company’s heavy reliance
on information systems and the impact of potentially losing or
failing to develop technology; risks related to providing
uninterrupted service to clients; the Company’s exposure to
employment-related claims from clients, employers and regulatory
authorities, current and former employees in connection with the
Company’s business reorganization initiatives, and limits on
related insurance coverage; the Company’s ability to utilize net
operating loss carryforwards; volatility of the Company’s stock
price; the impact of government regulations; restrictions imposed
by blocking arrangements; risks related to the use of new and
evolving technologies; and the adverse impacts of cybersecurity
threats and attacks. Additional information concerning these, and
other factors is contained in the Company's filings with the
Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this document. The Company
assumes no obligation, and expressly disclaims any obligation, to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Financial Tables Follow
HUDSON GLOBAL, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
33,971 |
|
|
$ |
43,591 |
|
|
$ |
161,338 |
|
|
$ |
200,917 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Direct contracting costs and reimbursed expenses |
|
17,421 |
|
|
|
21,427 |
|
|
|
81,071 |
|
|
|
101,707 |
|
Salaries and related |
|
13,653 |
|
|
|
17,994 |
|
|
|
62,859 |
|
|
|
74,373 |
|
Office and general |
|
2,924 |
|
|
|
2,481 |
|
|
|
10,915 |
|
|
|
10,344 |
|
Marketing and promotion |
|
849 |
|
|
|
729 |
|
|
|
3,643 |
|
|
|
3,778 |
|
Depreciation and amortization |
|
391 |
|
|
|
361 |
|
|
|
1,467 |
|
|
|
1,378 |
|
Total operating expenses |
|
35,238 |
|
|
|
42,992 |
|
|
|
159,955 |
|
|
|
191,580 |
|
Operating (loss) income |
|
(1,267 |
) |
|
|
599 |
|
|
|
1,383 |
|
|
|
9,337 |
|
Non-operating income
(expense): |
|
|
|
|
|
|
|
Interest income, net |
|
88 |
|
|
|
55 |
|
|
|
372 |
|
|
|
83 |
|
Other income (expense), net |
|
1,134 |
|
|
|
82 |
|
|
|
813 |
|
|
|
40 |
|
(Loss) income before income
taxes |
|
(45 |
) |
|
|
736 |
|
|
|
2,568 |
|
|
|
9,460 |
|
(Benefit from) provision for
income taxes |
|
(778 |
) |
|
|
674 |
|
|
|
370 |
|
|
|
2,331 |
|
Net income |
$ |
733 |
|
|
$ |
62 |
|
|
$ |
2,198 |
|
|
$ |
7,129 |
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
0.02 |
|
|
$ |
0.72 |
|
|
$ |
2.37 |
|
Diluted |
$ |
0.23 |
|
|
$ |
0.02 |
|
|
$ |
0.70 |
|
|
$ |
2.27 |
|
Weighted-average
shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
3,072 |
|
|
|
3,016 |
|
|
|
3,064 |
|
|
|
3,011 |
|
Diluted |
|
3,158 |
|
|
|
3,139 |
|
|
|
3,140 |
|
|
|
3,138 |
|
|
HUDSON GLOBAL, INC. |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
December 31,2023 |
|
December 31,2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
22,611 |
|
|
$ |
27,123 |
|
Accounts receivable, less allowance for expected credit losses of
$378 and $51, respectively |
|
19,710 |
|
|
|
26,270 |
|
Restricted cash, current |
|
354 |
|
|
|
160 |
|
Prepaid and other |
|
3,172 |
|
|
|
1,959 |
|
Total current assets |
|
45,847 |
|
|
|
55,512 |
|
Property and equipment, net of
accumulated depreciation of $1,564 and $950, respectively |
|
421 |
|
|
|
673 |
|
Operating lease right-of-use
assets |
|
1,431 |
|
|
|
685 |
|
Goodwill |
|
5,749 |
|
|
|
4,875 |
|
Intangible assets, net of
accumulated amortization of $2,771 and $1,647, respectively |
|
3,628 |
|
|
|
4,516 |
|
Deferred tax assets |
|
3,360 |
|
|
|
1,475 |
|
Restricted cash |
|
205 |
|
|
|
194 |
|
Other assets |
|
317 |
|
|
|
12 |
|
Total assets |
$ |
60,958 |
|
|
$ |
67,942 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
868 |
|
|
$ |
1,678 |
|
Accrued salaries, commissions, and benefits |
|
4,939 |
|
|
|
11,509 |
|
Accrued expenses and other current liabilities |
|
4,635 |
|
|
|
6,348 |
|
Note payable – short term |
|
— |
|
|
|
1,250 |
|
Operating lease obligations, current |
|
768 |
|
|
|
337 |
|
Total current liabilities |
|
11,210 |
|
|
|
21,122 |
|
Income tax payable |
|
87 |
|
|
|
81 |
|
Operating lease
obligations |
|
664 |
|
|
|
348 |
|
Other liabilities |
|
443 |
|
|
|
599 |
|
Total liabilities |
|
12,404 |
|
|
|
22,150 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par value, 10,000 shares authorized; none
issued or outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 20,000 shares authorized; 3,896 and
3,823 shares issued; 2,807 and 2,794 shares outstanding,
respectively |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
493,036 |
|
|
|
491,567 |
|
Accumulated deficit |
|
(425,247 |
) |
|
|
(427,394 |
) |
Accumulated other comprehensive loss, net of applicable tax |
|
(1,290 |
) |
|
|
(1,639 |
) |
Treasury stock, 1,089 and 1,029 shares, respectively, at cost |
|
(17,949 |
) |
|
|
(16,746 |
) |
Total stockholders’ equity |
|
48,554 |
|
|
|
45,792 |
|
Total liabilities and stockholders' equity |
$ |
60,958 |
|
|
$ |
67,942 |
|
|
HUDSON GLOBAL, INC. |
SEGMENT ANALYSIS - QUARTER TO DATE |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended December 31, 2023 |
|
Americas |
|
AsiaPacific |
|
Europe |
|
Corporate |
|
Total |
Revenue, from external customers |
|
$ |
6,246 |
|
|
$ |
22,073 |
|
|
$ |
5,652 |
|
|
$ |
— |
|
|
$ |
33,971 |
|
Adjusted net revenue, from
external customers (1) |
|
$ |
6,044 |
|
|
$ |
6,941 |
|
|
$ |
3,565 |
|
|
$ |
— |
|
|
$ |
16,550 |
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
733 |
|
Provision for income
taxes |
|
|
|
|
|
|
|
|
|
|
(778 |
) |
Interest income, net |
|
|
|
|
|
|
|
|
|
|
(88 |
) |
Depreciation and
amortization |
|
|
|
|
|
|
|
|
|
|
391 |
|
EBITDA (loss) (2) |
|
$ |
172 |
|
|
$ |
404 |
|
|
$ |
587 |
|
|
$ |
(905 |
) |
|
|
258 |
|
Non-operating expense
(income), including corporate administration charges |
|
|
(963 |
) |
|
|
187 |
|
|
|
(87 |
) |
|
|
(271 |
) |
|
|
(1,134 |
) |
Stock-based compensation
expense |
|
|
66 |
|
|
|
85 |
|
|
|
50 |
|
|
|
281 |
|
|
|
482 |
|
Non-recurring severance and
professional fees |
|
|
— |
|
|
|
264 |
|
|
|
32 |
|
|
|
165 |
|
|
|
461 |
|
Compensation expense related
to acquisitions (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA (loss)
(2) |
|
$ |
(725 |
) |
|
$ |
940 |
|
|
$ |
582 |
|
|
$ |
(730 |
) |
|
$ |
67 |
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended December 31, 2022 |
|
Americas |
|
AsiaPacific |
|
Europe |
|
Corporate |
|
Total |
Revenue, from external
customers |
|
$ |
10,058 |
|
|
$ |
27,107 |
|
|
$ |
6,426 |
|
|
$ |
— |
|
|
$ |
43,591 |
|
Adjusted net revenue, from
external customers (1) |
|
$ |
9,553 |
|
|
$ |
8,567 |
|
|
$ |
4,044 |
|
|
$ |
— |
|
|
$ |
22,164 |
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
62 |
|
Benefit from income taxes |
|
|
|
|
|
|
|
|
|
|
674 |
|
Interest income, net |
|
|
|
|
|
|
|
|
|
|
(55 |
) |
Depreciation and
amortization |
|
|
|
|
|
|
|
|
|
|
361 |
|
EBITDA (loss) (2) |
|
$ |
(638 |
) |
|
$ |
1,749 |
|
|
$ |
524 |
|
|
$ |
(593 |
) |
|
|
1,042 |
|
Non-operating expense
(income), including corporate administration charges |
|
|
236 |
|
|
|
232 |
|
|
|
(72 |
) |
|
|
(478 |
) |
|
|
(82 |
) |
Stock-based compensation
expense |
|
|
197 |
|
|
|
75 |
|
|
|
87 |
|
|
|
173 |
|
|
|
532 |
|
Non-recurring severance and
professional fees |
|
|
123 |
|
|
|
49 |
|
|
|
1 |
|
|
|
153 |
|
|
|
326 |
|
Compensation expense related
to acquisitions (3) |
|
|
620 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
620 |
|
Adjusted EBITDA (loss)
(2) |
|
$ |
538 |
|
|
$ |
2,105 |
|
|
$ |
540 |
|
|
$ |
(745 |
) |
|
$ |
2,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Represents Revenue less the Direct
contracting costs and reimbursed expenses caption on the
Consolidated Statements of Operations.
- Non-GAAP earnings before interest,
income taxes, and depreciation and amortization (“EBITDA”) and
non-GAAP earnings before interest, income taxes, depreciation and
amortization, non-operating income (expense), stock-based
compensation expense, and other non-recurring severance and
professional fees (“Adjusted EBITDA”) are presented to provide
additional information about the Company's operations on a basis
consistent with the measures which the Company uses to manage its
operations and evaluate its performance. Management also uses these
measurements to evaluate capital needs and working capital
requirements. EBITDA and Adjusted EBITDA should not be considered
in isolation or as a substitute for operating income, cash flows
from operating activities, and other income or cash flow statement
data prepared in accordance with generally accepted accounting
principles or as a measure of the Company's profitability or
liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented
above may not be comparable with similarly titled measures reported
by other companies.
- Represents compensation expense
payable per the terms of acquisition agreements.
|
HUDSON GLOBAL, INC. |
SEGMENT ANALYSIS - YEAR TO DATE |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For The Year Ended December 31, 2023 |
|
Americas |
|
AsiaPacific |
|
Europe |
|
Corporate |
|
Total |
Revenue, from external customers |
|
$ |
31,254 |
|
|
$ |
103,857 |
|
|
$ |
26,227 |
|
|
$ |
— |
|
|
$ |
161,338 |
|
Adjusted net revenue, from
external customers (1) |
|
$ |
30,141 |
|
|
$ |
33,675 |
|
|
$ |
16,451 |
|
|
$ |
— |
|
|
$ |
80,267 |
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
2,198 |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
370 |
|
Interest income, net |
|
|
|
|
|
|
|
|
|
|
(372 |
) |
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
1,467 |
|
EBITDA (loss) (2) |
|
$ |
(704 |
) |
|
$ |
5,859 |
|
|
$ |
1,582 |
|
|
$ |
(3,074 |
) |
|
|
3,663 |
|
Non-operating expense
(income), including corporate administration charges |
|
|
(528 |
) |
|
|
1,181 |
|
|
|
436 |
|
|
|
(1,902 |
) |
|
|
(813 |
) |
Stock-based compensation expense |
|
|
407 |
|
|
|
232 |
|
|
|
216 |
|
|
|
614 |
|
|
|
1,469 |
|
Non-recurring severance and professional fees |
|
|
105 |
|
|
|
292 |
|
|
|
156 |
|
|
|
658 |
|
|
|
1,211 |
|
Compensation expense related
to acquisitions (3) |
|
|
338 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
338 |
|
Adjusted EBITDA (loss) (2) |
|
$ |
(382 |
) |
|
$ |
7,564 |
|
|
$ |
2,390 |
|
|
$ |
(3,704 |
) |
|
$ |
5,868 |
|
|
|
|
|
|
|
|
|
|
|
|
For The Year Ended December 31, 2022 |
|
Americas |
|
AsiaPacific |
|
Europe |
|
Corporate |
|
Total |
Revenue, from external customers |
|
$ |
51,639 |
|
|
$ |
118,149 |
|
|
$ |
31,129 |
|
|
$ |
— |
|
|
$ |
200,917 |
|
Adjusted net revenue, from
external customers (1) |
|
$ |
48,990 |
|
|
$ |
34,278 |
|
|
$ |
15,942 |
|
|
$ |
— |
|
|
$ |
99,210 |
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
7,129 |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
2,331 |
|
Interest income, net |
|
|
|
|
|
|
|
|
|
|
(83 |
) |
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
1,378 |
|
EBITDA (loss) (2) |
|
$ |
4,877 |
|
|
$ |
7,282 |
|
|
$ |
1,501 |
|
|
$ |
(2,905 |
) |
|
|
10,755 |
|
Non-operating expense
(income),including corporate administration charges |
|
|
711 |
|
|
|
1,151 |
|
|
|
253 |
|
|
|
(2,155 |
) |
|
|
(40 |
) |
Stock-based compensation expense |
|
|
713 |
|
|
|
302 |
|
|
|
282 |
|
|
|
1,021 |
|
|
|
2,318 |
|
Non-recurring severance and professional fees |
|
|
306 |
|
|
|
86 |
|
|
|
1 |
|
|
|
324 |
|
|
|
717 |
|
Compensation expense related
to acquisitions (3) |
|
|
2,651 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,651 |
|
Adjusted EBITDA (loss) (2) |
|
$ |
9,258 |
|
|
$ |
8,821 |
|
|
$ |
2,037 |
|
|
$ |
(3,715 |
) |
|
$ |
16,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Represents Revenue less the Direct
contracting costs and reimbursed expenses caption on the
Consolidated Statements of Operations.
- Non-GAAP earnings before interest,
income taxes, and depreciation and amortization (“EBITDA”) and
non-GAAP earnings before interest, income taxes, depreciation and
amortization, non-operating (income) expense, stock-based
compensation expense, and other non-recurring severance and
professional fees (“Adjusted EBITDA”) are presented to provide
additional information about the Company's operations on a basis
consistent with the measures which the Company uses to manage its
operations and evaluate its performance. Management also uses these
measurements to evaluate capital needs and working capital
requirements. EBITDA and Adjusted EBITDA should not be considered
in isolation or as a substitute for operating income, cash flows
from operating activities, and other income or cash flow statement
data prepared in accordance with generally accepted accounting
principles or as a measure of the Company's profitability or
liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented
above may not be comparable with similarly titled measures reported
by other companies.
- Represents compensation expense
payable per the terms of acquisition agreements.
HUDSON GLOBAL,
INC.RECONCILIATION FOR CONSTANT
CURRENCY(in
thousands)(unaudited)
The Company operates on a global basis, with the
majority of its revenue generated outside of the United States.
Accordingly, fluctuations in foreign currency exchange rates can
affect its results of operations. Constant currency information
compares financial results between periods as if exchange rates had
remained constant period-over-period. The company currently defines
the term “constant currency” to mean that financial data for a
previously reported period are translated into U.S. dollars using
the same foreign currency exchange rates that were used to
translate financial data for the current period. Changes in
revenue, adjusted net revenue, selling, general and administrative
expenses ("SG&A"), and other non-operating income (expense),
operating income (loss) and EBITDA (loss) include the effect of
changes in foreign currency exchange rates. Variance analysis
usually describes period-to-period variances that are calculated
using constant currency as a percentage. The company’s management
reviews and analyzes business results in constant currency and
believes these results better represent the company’s underlying
business trends. The company believes that these calculations are a
useful measure, indicating the actual change in operations. There
are no significant gains or losses on foreign currency transactions
between subsidiaries. Therefore, changes in foreign currency
exchange rates generally impact only reported earnings.
|
For The Three Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
As |
|
As |
|
Currency |
|
Constant |
|
reported |
|
reported |
|
translation |
|
currency |
Revenue: |
|
|
|
|
|
|
|
Americas |
$ |
6,246 |
|
|
$ |
10,058 |
|
|
$ |
(3 |
) |
|
$ |
10,055 |
|
Asia Pacific |
|
22,073 |
|
|
|
27,107 |
|
|
|
(187 |
) |
|
|
26,920 |
|
Europe |
|
5,652 |
|
|
|
6,426 |
|
|
|
367 |
|
|
|
6,793 |
|
Total |
$ |
33,971 |
|
|
$ |
43,591 |
|
|
$ |
177 |
|
|
$ |
43,768 |
|
Adjusted net revenue (1): |
|
|
|
|
|
|
|
Americas |
$ |
6,044 |
|
|
$ |
9,553 |
|
|
$ |
(1 |
) |
|
$ |
9,552 |
|
Asia Pacific |
|
6,941 |
|
|
|
8,567 |
|
|
|
(61 |
) |
|
|
8,506 |
|
Europe |
|
3,565 |
|
|
|
4,044 |
|
|
|
233 |
|
|
|
4,277 |
|
Total |
$ |
16,550 |
|
|
$ |
22,164 |
|
|
$ |
171 |
|
|
$ |
22,335 |
|
SG&A (2): |
|
|
|
|
|
|
|
Americas |
$ |
6,929 |
|
|
$ |
10,076 |
|
|
$ |
(10 |
) |
|
$ |
10,066 |
|
Asia Pacific |
|
6,290 |
|
|
|
6,444 |
|
|
|
(46 |
) |
|
|
6,398 |
|
Europe |
|
3,050 |
|
|
|
3,605 |
|
|
|
215 |
|
|
|
3,820 |
|
Corporate |
|
1,157 |
|
|
|
1,079 |
|
|
|
— |
|
|
|
1,079 |
|
Total |
$ |
17,426 |
|
|
$ |
21,204 |
|
|
$ |
159 |
|
|
$ |
21,363 |
|
Operating income: |
|
|
|
|
|
|
|
Americas |
$ |
(1,137 |
) |
|
$ |
(733 |
) |
|
$ |
— |
|
|
$ |
(733 |
) |
Asia Pacific |
|
556 |
|
|
|
1,960 |
|
|
|
(15 |
) |
|
|
1,945 |
|
Europe |
|
492 |
|
|
|
444 |
|
|
|
19 |
|
|
|
463 |
|
Corporate |
|
(1,178 |
) |
|
|
(1,072 |
) |
|
|
— |
|
|
|
(1,072 |
) |
Total |
$ |
(1,267 |
) |
|
$ |
599 |
|
|
$ |
4 |
|
|
$ |
603 |
|
EBITDA (loss): |
|
|
|
|
|
|
|
Americas |
$ |
172 |
|
|
$ |
(638 |
) |
|
$ |
(2 |
) |
|
$ |
(640 |
) |
Asia Pacific |
|
404 |
|
|
|
1,749 |
|
|
|
(11 |
) |
|
|
1,738 |
|
Europe |
|
587 |
|
|
|
524 |
|
|
|
25 |
|
|
|
549 |
|
Corporate |
|
(905 |
) |
|
|
(593 |
) |
|
|
— |
|
|
|
(593 |
) |
Total |
$ |
258 |
|
|
$ |
1,042 |
|
|
$ |
12 |
|
|
$ |
1,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Represents Revenue less the Direct
contracting costs and reimbursed expenses caption on the
Consolidated Statements of Operations.
- SG&A is a measure that
management uses to evaluate the segments’ expenses and includes
salaries and related costs and other selling, general and
administrative costs.
HUDSON GLOBAL,
INC.RECONCILIATION FOR CONSTANT CURRENCY
(continued)(in
thousands)(unaudited)
|
For The Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
As |
|
As |
|
Currency |
|
Constant |
|
reported |
|
reported |
|
translation |
|
currency |
Revenue: |
|
|
|
|
|
|
|
Americas |
$ |
31,254 |
|
|
$ |
51,639 |
|
|
$ |
(98 |
) |
|
$ |
51,541 |
|
Asia Pacific |
|
103,857 |
|
|
|
118,149 |
|
|
|
(4,643 |
) |
|
|
113,506 |
|
Europe |
|
26,227 |
|
|
|
31,129 |
|
|
|
(126 |
) |
|
|
31,003 |
|
Total |
$ |
161,338 |
|
|
$ |
200,917 |
|
|
$ |
(4,867 |
) |
|
$ |
196,050 |
|
Adjusted net revenue (1): |
|
|
|
|
|
|
|
Americas |
$ |
30,141 |
|
|
$ |
48,990 |
|
|
$ |
(71 |
) |
|
$ |
48,919 |
|
Asia Pacific |
|
33,675 |
|
|
|
34,278 |
|
|
|
(1,294 |
) |
|
|
32,984 |
|
Europe |
|
16,451 |
|
|
|
15,942 |
|
|
|
184 |
|
|
|
16,126 |
|
Total |
$ |
80,267 |
|
|
$ |
99,210 |
|
|
$ |
(1,181 |
) |
|
$ |
98,029 |
|
SG&A (2): |
|
|
|
|
|
|
|
Americas |
$ |
31,699 |
|
|
$ |
43,696 |
|
|
$ |
(264 |
) |
|
$ |
43,432 |
|
Asia Pacific |
|
26,427 |
|
|
|
25,556 |
|
|
|
(957 |
) |
|
|
24,599 |
|
Europe |
|
14,350 |
|
|
|
14,199 |
|
|
|
161 |
|
|
|
14,360 |
|
Corporate |
|
4,941 |
|
|
|
5,044 |
|
|
|
— |
|
|
|
5,044 |
|
Total |
$ |
77,417 |
|
|
$ |
88,495 |
|
|
$ |
(1,060 |
) |
|
$ |
87,435 |
|
Operating income: |
|
|
|
|
|
|
|
Americas |
$ |
(2,514 |
) |
|
$ |
4,298 |
|
|
$ |
(43 |
) |
|
$ |
4,255 |
|
Asia Pacific |
|
6,894 |
|
|
|
8,378 |
|
|
|
(328 |
) |
|
|
8,050 |
|
Europe |
|
1,988 |
|
|
|
1,726 |
|
|
|
25 |
|
|
|
1,751 |
|
Corporate |
|
(4,985 |
) |
|
|
(5,065 |
) |
|
|
— |
|
|
|
(5,065 |
) |
Total |
$ |
1,383 |
|
|
$ |
9,337 |
|
|
$ |
(346 |
) |
|
$ |
8,991 |
|
EBITDA (loss): |
|
|
|
|
|
|
|
Americas |
$ |
(704 |
) |
|
$ |
4,877 |
|
|
$ |
(55 |
) |
|
$ |
4,822 |
|
Asia Pacific |
|
5,859 |
|
|
|
7,282 |
|
|
|
(272 |
) |
|
|
7,010 |
|
Europe |
|
1,582 |
|
|
|
1,501 |
|
|
|
34 |
|
|
|
1,535 |
|
Corporate |
|
(3,074 |
) |
|
|
(2,905 |
) |
|
|
— |
|
|
|
(2,905 |
) |
Total |
$ |
3,663 |
|
|
$ |
10,755 |
|
|
$ |
(293 |
) |
|
$ |
10,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Represents Revenue less the Direct
contracting costs and reimbursed expenses caption on the
Consolidated Statements of Operations.
- SG&A is a measure that
management uses to evaluate the segments’ expenses and includes
salaries and related costs and other selling, general and
administrative costs.
|
HUDSON GLOBAL, INC.RECONCILIATION OF
ADJUSTED NET INCOME PER DILUTED SHARE(in
thousands, except per share
amounts)(unaudited) |
|
|
|
Adjusted |
|
Diluted Shares |
|
Per Diluted |
For The Three Months
Ended December 31, 2023 |
|
Net Income |
|
Outstanding |
|
Share (1) |
Net income |
|
$ |
733 |
|
|
3,158 |
|
|
$ |
0.23 |
|
Non-recurring severance,
professional fees, and other (after tax) |
|
|
(617 |
) |
|
3,158 |
|
|
|
(0.19 |
) |
Compensation expense related
to acquisitions (after tax) (2) |
|
|
— |
|
|
3,158 |
|
|
|
— |
|
Adjusted net income (3) |
|
$ |
116 |
|
|
3,158 |
|
|
$ |
0.04 |
|
|
|
Adjusted |
|
Diluted Shares |
|
Per Diluted |
For The Three Months
Ended December 31, 2022 |
|
Net Income |
|
Outstanding |
|
Share |
Net income |
|
$ |
62 |
|
|
3,139 |
|
|
$ |
0.02 |
|
Non-recurring severance and
professional fees (after tax) |
|
|
326 |
|
|
3,139 |
|
|
|
0.10 |
|
Compensation expense related
to acquisitions (after tax) (2) |
|
|
636 |
|
|
3,139 |
|
|
|
0.20 |
|
Adjusted net income (3) |
|
$ |
1,024 |
|
|
3,139 |
|
|
$ |
0.33 |
|
|
|
Adjusted |
|
Diluted Shares |
|
Per Diluted |
For The Year Ended
December 31, 2023 |
|
Net Income |
|
Outstanding |
|
Share |
Net income |
|
$ |
2,198 |
|
|
3,140 |
|
|
$ |
0.70 |
|
Non-recurring severance,
professional fees, and other (after tax) |
|
|
133 |
|
|
3,140 |
|
|
|
0.04 |
|
Compensation expense related
to acquisitions (after tax) (2) |
|
|
356 |
|
|
3,140 |
|
|
|
0.11 |
|
Adjusted net income (3) |
|
$ |
2,687 |
|
|
3,140 |
|
|
$ |
0.86 |
|
|
|
Adjusted |
|
Diluted Shares |
|
Per Diluted |
For The Year Ended
December 31, 2022 |
|
Net Income |
|
Outstanding |
|
Share |
Net income |
|
$ |
7,129 |
|
|
3,138 |
|
|
$ |
2.27 |
|
Non-recurring severance and
professional fees (after tax) |
|
|
717 |
|
|
3,138 |
|
|
|
0.23 |
|
Compensation expense related
to acquisitions (after tax) (2) |
|
$ |
2,758 |
|
|
3,138 |
|
|
|
0.88 |
|
Adjusted net income (3) |
|
$ |
10,604 |
|
|
3,138 |
|
|
$ |
3.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Amounts may not sum due to
rounding.
- Represents compensation expense
payable per the terms of the Coit acquisition, including a
promissory note for $1.35 million payable over three years, and
$500k of the Company's common stock vesting over 30 months, as well
as earn out payments. In addition, in 2022 represents compensation
expense payable in the form of a CFO retention payment per the
terms of the Karani acquisition.
- Adjusted net income or loss per
diluted share are Non-GAAP measures defined as reported net income
or loss and reported net income or loss per diluted share before
items such as acquisition-related costs and non-recurring severance
and professional fees after tax that are presented to provide
additional information about the Company's operations on a basis
consistent with the measures that the Company uses to manage its
operations and evaluate its performance. Management also uses these
measurements to evaluate capital needs and working capital
requirements. Adjusted net income or loss per diluted share should
not be considered in isolation or as substitutes for net income or
loss and net income or loss per share and other income or cash flow
statement data prepared in accordance with generally accepted
accounting principles or as measures of the Company's profitability
or liquidity. Further, adjusted net income or loss and adjusted net
income or loss per diluted share as presented above may not be
comparable with similarly titled measures reported by other
companies.
Hudson Global (NASDAQ:HSON)
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Hudson Global (NASDAQ:HSON)
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