CTPartners Executive Search announces record Q4 and full year 2013 results
"The momentum we experienced in the fourth quarter has continued into 2014 as reflected in the guidance we have provided for the first quarter of 2014. We are increasingly optimistic that the growth initiatives we have in place will lead to significantly improved performance for the full year," he added.
Fourth Quarter 2013 Results
Net revenue for the fourth quarter was $34.3 million, a record high for the Company, and represented a 13.6% increase compared with $30.2 million in the prior year’s fourth quarter. North America revenue increased 19.7% to $20.3 million EMEA was up 12.3% at $9.0 million and Asia Pacific revenue grew to $2.4 million, a 35.9% increase compared to $1.8 million. Latin America revenue declined to$2.6 million compared to $3.5 million in the prior year quarter. On a practice basis, year-over-year, Industrial grew 47% to $3.6 million Professional Services increased 32.6% to $6.8 million Life Sciences increased 21.3% to $5.7 million and Financial Services improved 16.6% to $10.2 million. Consumer/Retail and Technology Media & Telecom were lower compared to the year-ago fourth quarter, each with revenue of$4.0 million.
Compensation expense, excluding non-operating expenses, was $25.4 million, or 73.9% of revenue, compared to $23.3 million, or 77.1% of revenue, in the fourth quarter of 2012. General and administrative expenses, excluding non-operating expenses, were $7.3 million, or 21.3% of revenue.
GAAP net income attributable to the Company for the fourth quarter was $0.1 million, or $0.02 per share, compared to a net loss of $1.5 million, or $0.21 per share loss, for last year’s fourth quarter. Excluding after-tax non-operating items of $0.8 million and $1.3 million for 2013 and 2012, respectively, adjusted net income was $0.9 million, or $0.12 per share, compared to an adjusted net loss of $0.2 million, or a loss of $0.03 per share, in the prior year’s fourth quarter. A reconciliation of non-GAAP measures is included in this news release.
Performance Metrics - Fourth Quarter 2013/ Full Year 2013
· The Company was engaged in 342 new search assignments, a 14.4% increase compared to 299 in the year-ago quarter and 1,395 for the full year 2013 compared to 1,352 in 2012.
· The number of placements was 275 compared with 270 in last year’s comparable quarter. The placement rate for this year’s fourth quarter was 80%, resulting in the 2013 full year placement rate at 80% compared to the 2012 placement rate of 78%.
· CTPartners had 128 consultants compared with 103 consultants in 2012, primarily reflecting the Augmentum Consulting Ltd. acquisition and the addition of leading executive search consultants in the second half of 2013. Excluding the new consultants added in the 2013 fourth quarter, the net revenue per consultant was $1.2 million.
· Average revenue per search was up 11.4% at $101,800 compared to$91,400 in the year-ago quarter.
· The Company’s voluntary turnover was one consultant in the fourth quarter of 2013, allowing CTPartners to maintain one of the lowest turnover rates in the executive search industry.
· The number of clients representing repeat business was 79% in the fourth quarter compared with 76% in last year’s fourth quarter and 79% in the 2013 third quarter.
2013 Full Year Financial Results
Net revenue for the full year ended was $130.3 million, a 1.5% increase compared to net revenue of $128.4 million for the year ended December 31, 2012. Compensation expense, excluding non-operating expenses, was $97.9 million, or 75.1% of revenue, compared to $98.3 million, or 76.5% of revenue, in 2012. General and administrative expenses, excluding non-operating expenses, were $28.8 million, or 22.1% of revenue.
GAAP net loss attributable to the Company for the year ended December 31, 2013 was $1.6 million, or $0.23 per share, compared to a net loss of $3.6 million, or $0.51 per share loss, for 2012. Excluding after-tax non-operating items of $3.4 million and $4.7 million for 2013 and 2012 respectively, adjusted net income was $1.8 million, or $0.24 per share compared to adjusted net income of $1.1 million, or $0.16 per share in the prior year. A reconciliation of non-GAAP measures is included in this news release.