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Hudson Global Reports 2015 Third Quarter Results

Adjusted EBITDA Improved by $2.4 Million from Prior Year, Narrowing Loss to $0.4 Million

Expects to Deliver Positive Adjusted EBITDA in Q4

Launched $10 Million Share Repurchase Program in August

NEW YORK, Oct. 30, 2015 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a leading global talent solutions company, today announced financial results for the third quarter ended September 30, 2015.

2015 Third Quarter Summary

  • On a retained** basis, excluding the Americas IT and the Netherlands businesses which were sold during the second quarter of 2015, revenue of $110.0 million declined 14.0 percent in reported currency but increased 0.4 percent in constant currency from the prior year period. On a reported basis, revenue declined 26.3 percent or 14.7 percent in constant currency.

  • On a retained** basis, excluding the Americas IT and the Netherlands businesses, gross margin of $45.1 million declined 10.3 percent in reported currency but increased 3.1 percent in constant currency from the prior year period. On a reported basis, gross margin declined 18.9 percent or 7.2 percent in constant currency.

  • Adjusted EBITDA* loss of $0.4 million, compared with adjusted EBITDA loss of $2.9 million in the third quarter of 2014.

  • Net loss of $2.1 million, or $0.06 per basic and diluted share, compared with net loss of $7.0 million, or $0.21 per basic and diluted share, for the third quarter of 2014.

  • Cash of $36.4 million, increasing 4.5 percent from prior quarter and 94 percent from a year ago, and 262,260 shares repurchased for $0.7 million during the third quarter.

* Adjusted EBITDA and EBITDA are defined in the segment tables at the end of this release.
** See reconciliation for retained revenue and gross margin tables at the end of this release.

"We continued to deliver constant currency gross margin growth in key markets and practices in the third quarter, including Asia Pacific and Recruitment Process Outsourcing (RPO). We are narrowing the gap toward profitability and expect to deliver positive adjusted EBITDA in the fourth quarter," said Stephen Nolan, chief executive officer at Hudson. "Our focus remains on driving growth in our core markets through selective investments in fee earners, while reducing costs."

Strategic Actions

The company continued to execute on strategic actions in its previously announced efforts to focus on its core business lines and growth opportunities. During the second quarter, these actions included the divestiture of the company's Netherlands business as well as its Americas IT business. The company also exited its operations in Ukraine, Czech Republic, Slovakia and Luxembourg. In the third quarter, the company substantially completed the reduction in stranded support costs in the Americas following the exit of the Legal eDiscovery and IT businesses. With these strategic divestitures complete, the company is now a more streamlined organization that is focused on delivering sustainable profitability in its core businesses -- RPO, Talent Management and Recruitment -- where it continues to invest in fee earners to drive growth.

During the third quarter, the company incurred $2.3 million in restructuring charges primarily for real estate actions in all regions.

Share Repurchase Program

During the third quarter, the company commenced a share repurchase program for up to $10 million of the company’s common stock. The company purchased 262,260 shares for $0.7 million as part of the buyback program during the third quarter and an additional 57,908 shares for $0.1 million during October.

Regional Highlights

Americas

In the third quarter, Hudson Americas' gross margin decreased 43 percent in constant currency on a reported basis and was flat on a retained** basis as compared with the third quarter in 2014. After multiple quarters of strong growth in RPO, gross margin overall was flat in the third quarter as growth with new and existing clients was offset by the end of a large contract in 2014. The reduction in stranded support costs following the sale of the Americas Legal eDiscovery and IT businesses was substantially completed by the end of the third quarter. Adjusted EBITDA was a loss of $0.3 million, compared with adjusted EBITDA of $0.7 million for the same period a year ago.

Asia Pacific

Hudson Asia Pacific's gross margin increased 13 percent in constant currency in the third quarter of 2015 from the same period in 2014. This was the seventh consecutive quarter of year-over-year constant currency gross margin growth. Results were fueled by permanent recruitment, up 20 percent, and temporary contracting, up 8 percent, against the third quarter of 2014. This growth in recruitment helped drive overall growth in both of the company’s major Asia Pacific markets, China and Australia, with gross margin increasing 39 percent and 9 percent, respectively, against the prior year period. RPO increased 14 percent from the prior year period, driven by growth in China. Asia Pacific delivered adjusted EBITDA of $2.3 million, or 4.2 percent of revenue, improving from adjusted EBITDA of $0.6 million in the third quarter of 2014.

Europe

Hudson Europe's gross margin decreased 17 percent in constant currency from the third quarter of 2014 on a reported basis, and 7 percent on a retained** basis. Excluding the impact of the Netherlands sale, Continental Europe gross margin increased by 5 percent in constant currency in the quarter. Belgium and Spain continued to deliver gross margin growth, up 11 percent and 26 percent respectively. In the UK, 18 percent growth in RPO was offset by 20 percent declines in recruitment. Adjusted EBITDA of $0.1 million, or 0.3 percent of revenue, improved from a loss of $0.3 million in the third quarter of 2014.

Liquidity and Capital Resources

The company ended the third quarter of 2015 with $55.0 million in liquidity, composed of $36.4 million in cash and $18.6 million in availability under its credit facilities. This compares with $34.8 million in cash and $22.3 million in availability under its credit facilities at the end of the second quarter of 2015. The company generated $4.8 million in cash flow from operations during the third quarter, compared with $2.4 million use of cash in the third quarter of 2014. The company had $34 thousand in outstanding borrowings at the end of the third quarter of 2015.

Business Outlook

Given current economic conditions, the company expects fourth quarter 2015 revenue of between $100 million and $110 million and adjusted EBITDA of between breakeven and $1.5 million at prevailing exchange rates. This outlook assumes an average exchange rate of 1.54 US Dollars to the British Pound, 1.10 US Dollars to the Euro and 0.68 US Dollars to the Australian Dollar. In the fourth quarter of 2014, revenue was $136.7 million and adjusted EBITDA was a loss of $2.4 million. Fourth quarter 2014 revenue would have been $33 million lower including the impact of prevailing exchange rates cited above and excluding revenue attributable to businesses divested in the second quarter of 2015.

Conference Call/Webcast

Hudson will conduct a conference call today 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 Hudson.com.

The archived call will be available on the investor information section of the company's web site at Hudson.com.


About Hudson

Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Operating around the globe through relationships with millions of specialized professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.


Forward-Looking Statements

This press release contains statements that the company believes to be "forward-looking statements" within the meaning of 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 execute its strategic initiatives; risks related to fluctuations in the company's operating results from quarter to quarter; 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; restrictions on the company's operating flexibility due to the terms of its credit facilities; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; the company's ability to collect its accounts receivable; the company’s ability to achieve anticipated cost savings through its cost reduction initiatives; 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 carry-forwards; volatility of the company's stock price; the impact of government regulations; and risks related to activist stockholders. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
Revenue $110,028 $149,278 $357,088 $444,515
Direct costs 64,883 93,591 213,817 274,927
Gross margin 45,145 55,687 143,271 169,588
Operating expenses:
Selling, general and administrative expenses 45,565 58,539 151,281 174,672
Depreciation and amortization 955 1,467 3,040 4,242
Business reorganization expenses and impairment of long-lived assets 2,264 794 5,667 2,026
Total operating expenses 48,784 60,800 159,988 180,940
Gain (loss) on sale and exit of businesses (187) 19,818
Operating income (loss) (3,826) (5,113) 3,101 (11,352)
Non-operating income (expense):
Interest income (expense), net (93) (192) (542) (533)
Other income (expense), net 242 176 215 (325)
Income (loss) from continuing operation before provision for income taxes (3,677) (5,129) 2,774 (12,210)
Provision for (benefit from) income taxes from continuing operations (1,648) (558) (1,317) 37
Income (loss) from continuing operations (2,029) (4,571) 4,091 (12,247)
Income (loss) from discontinued operations, net of income taxes (55) (2,448) 864 (3,690)
Net income (loss) $(2,084) $(7,019) $4,955 $(15,937)
Basic and diluted earnings (loss) per share:
Basic and diluted earnings (loss) per share from continuing operations $(0.06) $(0.14) $0.12 $(0.38)
Basic and diluted earnings (loss) per share from discontinued operations (0.07) 0.03 (0.11)
Basic and diluted earnings (loss) per share $(0.06) $(0.21) $0.15 $(0.49)
Weighted-average shares outstanding:
Basic 34,687 32,910 33,784 32,769
Diluted 34,687 32,910 33,795 32,769



HUDSON GLOBAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30,
2015
December 31,
2014
ASSETS
Current assets:
Cash and cash equivalents $36,361 $33,989
Accounts receivable, less allowance for doubtful accounts of $915 and $986 respectively 65,721 74,079
Prepaid and other 7,102 9,604
Current assets of discontinued operations 161 1,249
Total current assets 109,345 118,921
Property and equipment, net 7,807 9,840
Deferred tax assets, non-current 6,806 5,648
Other assets 4,460 5,263
Total assets $128,418 $139,672
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $4,521 $6,371
Accrued expenses and other current liabilities 42,118 54,065
Short-term borrowings 34
Accrued business reorganization expenses 4,321 3,169
Current liabilities of discontinued operations 2,025 3,512
Total current liabilities 53,019 67,117
Deferred rent and tenant improvement contributions 4,465 5,899
Income tax payable, non-current 2,330 2,397
Other non-current liabilities 4,539 5,002
Total liabilities 64,353 80,415
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value, 100,000 shares authorized; issued 34,951 and 33,671 shares, respectively 34 34
Additional paid-in capital 480,546 476,689
Accumulated deficit (425,661) (430,616)
Accumulated other comprehensive income 10,142 13,613
Treasury stock, 381 and 129 shares, respectively, at cost (996) (463)
Total stockholders’ equity 64,065 59,257
Total liabilities and stockholders' equity $128,418 $139,672



HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
For The Three Months Ended September 30, 2015 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $3,735 $55,609 $50,684 $ $110,028
Gross margin, from external customers $3,176 $23,376 $18,593 $ $45,145
Adjusted EBITDA (loss) (1) $(321) $2,324 $149 $(2,572) $(420)
Business reorganization expenses (recovery) and impairment of long-lived assets 589 336 1,278 61 2,264
Gain (loss) on sale and exit of businesses (20) (167) (187)
Non-operating expense (income),
including corporate administration charges
99 308 798 (1,447) (242)
EBITDA (loss) (1) $(1,029) $1,680 $(2,094) $(1,186) $(2,629)
Depreciation and amortization expenses 955
Interest expense (income), net 93
Provision for (benefit from) income taxes (1,648)
Income (loss) from continuing operations (2,029)
Income (loss) from discontinued operations, net of income taxes (55)
Net income (loss) $(2,084)
For The Three Months Ended September 30, 2014 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $13,036 $66,990 $69,252 $ $149,278
Gross margin, from external customers $5,570 $24,654 $25,463 $ $55,687
Adjusted EBITDA (loss) (1) $738 $616 $(288) $(3,918) $(2,852)
Business reorganization expenses (recovery) 140 421 233 794
Non-operating expense (income),
including corporate administration charges
705 226 1,583 (2,690) (176)
EBITDA (loss) (1) $33 $250 $(2,292) $(1,461) $(3,470)
Depreciation and amortization expenses 1,467
Interest expense (income), net 192
Provision for (benefit from) income taxes (558)
Income (loss) from continuing operations $(4,571)
Income (loss) from discontinued operations, net of income taxes (2,448)
Net income (loss) $(7,019)
(1) 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, goodwill and other impairment charges, business reorganization expenses and other expenses (“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



HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE (continued)
(in thousands)
(unaudited)
For The Three Months Ended June 30, 2015 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $10,183 $57,374 $55,186 $ $122,743
Gross margin, from external customers $5,081 $23,820 $21,321 $ $50,222
Adjusted EBITDA (loss) (1) $(290) $1,935 $986 $(3,418) $(787)
Business reorganization expenses (recovery) (5) 325 520 1,220 2,060
Change in control stock-based compensation expense 418 647 699 777 2,541
Gain (loss) on sale and exit of businesses 15,938 4,067 20,005
Non-operating expense (income),
including corporate administration charges
(207) 1,593 386 (1,732) 40
EBITDA (loss) (1) $15,442 $(630) $3,448 $(3,683) $14,577
Depreciation and amortization expenses 974
Interest expense (income), net 369
Provision for (benefit from) income taxes 460
Income (loss) from continuing operations 12,774
Income (loss) from discontinued operations, net of income taxes 1,103
Net income (loss) $13,877
For The Three Months Ended December 31, 2014 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $11,709 $58,351 $66,617 $ $136,677
Gross margin, from external customers $5,293 $22,930 $25,033 $53,256
Adjusted EBITDA (loss) (1) $(138) $186 $1,840 $(4,280) $(2,392)
Business reorganization expenses (recovery) 67 963 733 1,763
Impairment of long-lived assets 314 348 662
Non-operating expense (income),
including corporate administration charges
(579) 62 1,224 (1,234) (527)
EBITDA (loss) (1) $441 $(257) $(695) $(3,779) $(4,290)
Depreciation and amortization expenses 1,317
Interest expense (income), net 128
Provision for (benefit from) income taxes (2,196)
Income (loss) from continuing operations (3,539)
Income (loss) from discontinued operations, net of income taxes 6,282
Net income (loss) $2,743
(1) 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, goodwill and other impairment charges, business reorganization expenses and other expenses (“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.


HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - YEAR TO DATE (continued)
(in thousands)
(unaudited)
For The Nine Months Ended September 30, 2015 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $24,896 $166,123 $166,069 $ $357,088
Gross margin, from external customers $12,876 $68,073 $62,322 $ $143,271
Adjusted EBITDA (loss) (1) $(1,522) $5,151 $1,112 $(10,210) $(5,469)
Business reorganization expenses (recovery) and impairment of long-lived assets 1,006 669 2,678 1,314 5,667
Change in control stock-based compensation expense 418 647�� 699 777 2,541
Gain (loss) on sale and exit of businesses 15,918 3,900 19,818
Non-operating expense (income),
including corporate administration charges
184 1,983 2,433 (4,815) (215)
EBITDA (loss) (1) $12,788 $1,852 $(798) $(7,486) $6,356
Depreciation and amortization expenses 3,040
Interest expense (income), net 542
Provision for (benefit from) income taxes (1,317)
Income (loss) from continuing operations 4,091
Income (loss) from discontinued operations, net of income taxes 864
Net income (loss) $4,955
For The Nine Months Ended September 30, 2014 Hudson
Americas
Hudson
Asia Pacific
Hudson
Europe
Corporate Total
Revenue, from external customers $38,437 $188,522 $217,556 $ $444,515
Gross margin, from external customers $15,464 $70,083 $84,041 $ $169,588
Adjusted EBITDA (loss) (1) $1,585 $1,724 $4,274 $(12,668) $(5,085)
Business reorganization expenses (recovery) 93 1,255 444 233 2,025
Non-operating expense (income),
including corporate administration charges
1,818 1,104 4,321 (6,918) 325
EBITDA (loss) (1) $(326) $(635) $(491) $(5,983) $(7,435)
Depreciation and amortization expenses 4,242
Interest expense (income), net 533
Provision for (benefit from) income taxes 37
Income (loss) from continuing operations (12,247)
Income (loss) from discontinued operations, net of income taxes (3,690)
Net income (loss) $(15,937)
(1) 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, goodwill and other impairment charges, business reorganization expenses and other expenses (“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.


HUDSON GLOBAL, INC.
RECONCILIATION FOR CONSTANT CURRENCY
(in thousands) (unaudited)

The company operates on a global basis, with the majority of its gross margin 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, gross margin, selling, general and administrative expenses ("SG&A"), business reorganization expenses 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.

Three Months Ended September 30,
2015 2014
As As Currency Constant
reported reported translation currency
Revenue:
Hudson Americas$3,735 $13,036 $(32) $13,004
Hudson Asia Pacific55,609 66,990 (13,190) 53,800
Hudson Europe50,684 69,252 (7,092) 62,160
Total$110,028 $149,278 $(20,314) $128,964
Gross margin:
Hudson Americas$3,176 $5,570 $(31) $5,539
Hudson Asia Pacific23,376 24,654 (4,040) 20,614
Hudson Europe18,593 25,463 (2,974) 22,489
Total$45,145 $55,687 $(7,045) $48,642
SG&A (1):
Hudson Americas$3,494 $4,834 $(32) $4,802
Hudson Asia Pacific20,931 23,981 (3,872) 20,109
Hudson Europe18,569 25,806 (3,065) 22,741
Corporate2,571 3,918 3,918
Total$45,565 $58,539 $(6,969) $51,570
Business reorganization expenses:
Hudson Americas$589 $ $ $
Hudson Asia Pacific336 140 (33) 107
Hudson Europe1,278 421 (53) 368
Corporate61 233 1 234
Total$2,264 $794 $(85) $709
Operating income (loss):
Hudson Americas$(1,314) $601 $3 $604
Hudson Asia Pacific1,654 (442) 36 (406)
Hudson Europe(1,467) (1,010) 158 (852)
Corporate(2,699) (4,262) (1) (4,263)
Total$(3,826) $(5,113) $196 $(4,917)
EBITDA (loss):
Hudson Americas$(1,029) $33 $12 $45
Hudson Asia Pacific1,680 250 (144) 106
Hudson Europe(2,094) (2,292) 339 (1,953)
Corporate(1,186) (1,461) (1) (1,462)
Total$(2,629) $(3,470) $206 $(3,264)
(1) SG&A is a measure that management uses to evaluate the segments’ expenses.





HUDSON GLOBAL, INC.
RECONCILIATION FOR RETAINED REVENUE AND GROSS MARGIN
(in millions) (unaudited)
Revenue, Q3 2015 vs Q3 2014
Reported Retained (1)
Q3 2015Variance
vs Q3 2014
Constant
Currency
Q3 2015Variance
vs Q3 2014
Constant
Currency
Americas$3.7 (71.3)%(71.3)% $3.7 1.1%2.0%
Asia Pacific55.6 (17.0)%3.4% 55.6 (17.0)%3.4%
Europe50.7 (26.8)%(18.5)% 50.7 (11.5)%(2.8)%
Total$110.0 (26.3)%(14.7)% $110.0 (14.0)%0.4%
Gross Margin, Q3 2015 vs Q3 2014
Reported Retained (1)
Q3 2015Variance
vs Q3 2014
Constant
Currency
Q3 2015Variance
vs Q3 2014
Constant
Currency
Americas$3.2 (43.0)%(42.7)% $3.2 (0.8)%0.1%
Asia Pacific23.4 (5.2)%13.4% 23.4 (5.2)%13.4%
Europe18.6 (27.0)%(17.2)% 18.7 (17.1)%(6.9)%
Total$45.2 (18.9)%(7.2)% $45.2 (10.3)%3.1%
(1) Retained revenue and gross margin and divested revenue and gross margin are non-GAAP terms that management believes provide a better understanding of the underlying revenue and gross margin trends in the business following the divestitures in the second quarter of 2015. Divested revenue and gross margin includes such items attributable to the following businesses: the Americas IT staffing business, the Netherlands business, Ukraine, Czech Republic, Slovakia and Luxembourg. The non-GAAP financial measures do not replace the presentation of GAAP financial results and should only be used as a supplement to, not as a substitute for, Hudson’s financial results presented in accordance with GAAP. The above table provides a reconciliation of the non-GAAP financial measure used in its financial reporting to the most directly comparable GAAP financial measure.


Contact: David F. Kirby Hudson 212-351-7216 david.kirby@hudson.com

Source:Hudson Global, Inc.