13% growth in fee revenue for Korn Ferry in Q1 2016
The company reported fee revenue of $267,4m in the first quarter of fiscal 2016,an increase of $16.2 million, or 6.4% ($32.5 million, or 12.9% on a constant currency basis), from Q1 FY'15, with increases realized across all segments on a constant currency basis: Futurestep 27.3%, Leadership and Talent Consulting 13.7% (5.5% organically), Executive Recruitment 8.8%. The overall fee revenue increase was driven by fee revenue growth in certain of its major markets – financial services, life science/healthcare and technology, partially offset by a decline in industrial and consumer goods.
Adjusted EBITDA was $41.7 million in Q1 FY'16, an increase of $3.8 million, or 10.0%, compared to Q1 FY'15. Adjusted diluted earnings per share was $0.47 in Q1 FY'16, excluding $0.7 million of integration/acquisition costs, and $0.43 in Q1 FY'15 excluding $9.9 million of restructuring charges. Q1 FY'16 diluted earnings per share was $0.46 compared to $0.29 in Q1 FY'15.
The Company declared a quarterly dividend of $0.10 per share on September 7, 2015, payable on October 15, 2015 to stockholders of record on September 25, 2015.
"For our fiscal first quarter we reported 13% year over year growth at constant currency and growth within all of our service lines," said Gary D. Burnison, CEO of Korn Ferry. "Our Futurestep offering continued to deliver outsized results growing 27% year over year at constant currency. Our strong performance reaffirms that Korn Ferry is increasingly the people advisory firm that organizations turn to for the people strategies that deliver business strategies."