Hudson Highland Group Results
Hudson Highland Group, Inc. one of the world's leading providers of permanent recruitment, contract professionals and talent management solutions, has announced financial results for the first quarter ended March 31, 2009.
2009 First Quarter SummaryRevenue of $165.0 million, a decrease of 43.9 percent from $294.0 million for the first quarter of 2008Adjusted EBITDA* loss of $10.0 million, or 6.1 percent of revenue, down from adjusted EBITDA of positive $6.8 million for the first quarter of 2008
EBITDA* loss of $15.9 million, down from EBITDA of positive $5.4 million for the same period last year
Net loss from continuing operations of $15.2 million, or $0.60 per basic and diluted share, compared with net income from continuing operations of $0.4 million, or $0.02 per basic and $0.01 per diluted share, for the first quarter of 2008
Net loss of $5.6 million, or $0.22 per basic and diluted share, compared with net income of $1.4 million, or $0.05 per basic and diluted share, for the first quarter of 2008
"Our operating results continued to be significantly impacted by the deep global recession during the first quarter," said Jon Chait, Hudson Highland Group chairman and chief executive officer. "While we expect the environment to remain challenging, we believe that the first quarter was a financial performance bottom for Hudson."
"Our team has done an admirable job of reducing costs and managing cash given the extraordinary market circumstances," added Mary Jane Raymond, chief financial officer. "Further, we have moved swiftly to identify new pockets of opportunity and remain sharply focused on viable markets in this environment."
During the second quarter of 2009, the company expects to continue to streamline its operations in response to current economic conditions. The company recently increased the size of the 2009 restructuring plan to $11 - $16 million and expects to incur $3 - $6 million of restructuring charges during the second quarter of 2009. First quarter expenses of $5.9 million were related to severance and lease terminations in all three regional businesses of the company.
Liquidity and Capital Resources
The company ended the first quarter of 2009 with $35.0 million in net cash, a decrease from $43.9 million at the end of 2008, and excess availability under its amended credit facility of $5.3 million. The company also received $11.6 million in April 2009 from Heidrick & Struggles, the final earn-out from the sale of Highland Partners in 2006.