Hudson Loses $74 Million
Hudson Highland Group, Inc. has announced its financial results for the fourth quarter and full-year ended December 31, 2008.
In the final quarter the company had revenue of $207.4 million, a decrease of 28.2% from $288.8 million for the fourth quarter of 2007. Gross margin of $86.5 million was down 33.2% from $129.4 million, for the same period last year. Hudson made a net loss of $80.3 million, compared with net income of $12.0 million for the fourth quarter of 2007.
The 2008 Full-Year Summary produced revenue of $1.08 billion, down 7.9% from $1.17 billion in 2007. Gross margin of $464.1 million, was down 8.3%. EBITDA* loss of $58.6 million, including a $67.1 million non-cash impairment charge, was down from EBITDA of $31.3 million, or 2.7 percent of revenue for 2007
Hudson made a net loss of $74.3 million, compared with net income of $15.0 million in 2007.
"Uncertainty about the future course of world economies, compounded by unprecedented volatility in the global equity markets, had a significant negative impact during the fourth quarter on both permanent and contract hiring intentions across multiple industries and geographies," said Jon Chait, Hudson Highland Group chairman and chief executive officer. "We expect first quarter demand, historically a seasonal low point, to be soft as well."
"We took additional steps during the fourth quarter to reduce our cost base as demand declined, and will continue our expense management diligence as these dynamic market conditions play out," added Mary Jane Raymond, executive vice president and chief financial officer. "We ended the year with $43.9 million in net cash and had positive cash flow from operations for the fourth quarter and full year."