RSS icon

Top Stories

Search Firm Heidricks Revenue Rises 28 Percent

April 30, 2010
Related Topics: Financial Impact, Candidate Sourcing, Latest News
Reprints

First-quarter net revenue at Heidrick & Struggles International Inc. rose 27.5 percent on a year-over-year basis to $113.7 million. The Chicago-based executive search firm said it got a boost from its financial services business.

“The financial services practice was the first to show a significant decline beginning in 2007 and has been the strongest driver of growth coming out of the recession,” CEO L. Kevin Kelly said in a press release.

This year’s first-quarter report is a sharp contrast to the same quarter a year ago. First-quarter net revenue in 2009 fell 41.8 percent year over year to $89.1 million as the number of executive searches confirmed fell 38.4 percent. The executive search firm also announced a $13.4 million restructuring charge for the quarter that primarily involved severance payments.

Average revenue per executive search was $98,400 in the first quarter, compared with $98,900 in the year-ago quarter. The number of executive search confirmations rose 26.9 percent in the first quarter compared with the first quarter of 2009.

Heidrick’s Americas net revenue rose 24 percent to $57.5 million. The Americas segment includes the U.S., Canada, Mexico and Latin America.

The company posted a first-quarter net loss of $1.8 million, compared with a net loss of $18.9 million in the first quarter of last year.

Heidrick said the first quarter of 2010 included $4.7 million in charges related to moving to a smaller office in London and a judgment against the company in a court case involving a former European employee.

“Operating expenses in the quarter were higher than we had forecasted,” Kelly said. “In addition to the $4.7 million in other charges noted above, margins were negatively impacted by certain other unanticipated costs which we do not expect to recur.”

The company posted a loss per diluted share of 10 cents. Analysts had expected earnings of 15 cents per share, according to Yahoo.com.

The company estimated second-quarter revenue of $117 million to $123 million, a year-over-year increase of 26 to 32 percent.

Heidrick estimated full-year 2010 revenue of $440 million to $480 million, year-over-year growth of 11 to 21 percent.  

Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail editors@workforce.com.

 

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Comments powered by Disqus

Hr Jobs

Loading
View All Job Listings