Heidrick & Struggles International Inc. (HSII, Financial) filed Quarterly Report for the period ended 2012-09-30.
Heidrick & Struggles International, Inc. has a market cap of $216.9 million; its shares were traded at around $12.8 with a P/E ratio of 48.1 and P/S ratio of 0.4. The dividend yield of Heidrick & Struggles International, Inc. stocks is 4.3%.
In Europe, operating income for the three months ended September 30, 2012 decreased $1.9 million to $0.5 million from $2.4 million for the three months ended September 30, 2011. The decrease is due to lower net revenue of $16.2 million, partially offset by declines in salaries and employee benefits expense of $12.6 million and general and administrative expenses of $1.7 million. The decrease in salaries and employee benefits expense reflects a decrease of $7.8 million in fixed compensation and a decrease of $4.8 million in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 91 as of September 30, 2012 compared to 126 as of September 30, 2011. The decrease in general and administrative expense is primarily due to a $1.1 million reduction in premise-related costs, and a $0.5 million decrease in travel and entertainment expenses.
Revenue before reimbursements (net revenue). Consolidated net revenue decreased $60.7 million, or 15.2%, to $339.9 million for the nine months ended September 30, 2012 from $400.6 million for the nine months ended September 30, 2011. The negative impact of exchange rate fluctuations resulted in approximately 2 percentage points of the decrease. All practices, except the Education & Social Enterprise practice contributed to the decline. Net revenue decreased in all regions. The number of confirmed executive searches decreased 18.0% compared to the nine months ended 2011, due in part to a decrease in worldwide headcount as a result of the 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The number of consultants was 332 as of September 30, 2012 compared to 386 as of September 30, 2011. Productivity, as measured by annualized net revenue per consultant, decreased to $1.3 million for the nine months ended 2012 from $1.4 million for the nine months ended 2011, and average revenue per executive search was $112,600 for the nine months ended September 30, 2012 compared to $108,800 for the nine months ended September 30, 2011.
The Americas reported operating income of $49.1 million for the nine months ended September 30, 2012 compared to $44.3 million for the nine months ended September 30, 2011. The increase of $4.9 million is due to a $20.4 million decrease in salaries and employee benefits expense and a $5.0 million decrease in general and administrative expenses partially offset by lower net revenue of $20.5 million. The decrease in salaries and employee benefits expense is due to a $10.9 million reduction in fixed compensation and a $9.5 million decrease in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 156 as of September 30, 2012 compared to 176 as of September 30, 2011. The decrease in general and administrative costs is primarily due to decreases in fees for professional services of $2.1 million, $2.1 million in other operating and infrastructure costs, $1.1 million of premise-related costs, and travel and entertainment expenses of $1.0 million, partially offset by a $1.3 million increase in bad debt expense.
Europe reported an operating income of $3.0 million for the nine months ended September 30, 2012, compared to an operating loss of $2.0 million for the nine months ended September 30, 2011. The increase in operating income is due to decreases in salaries and employee benefits expense of $23.6 million and general and administrative expense of $5.5 million, partially offset by a decrease in net revenue of $24.1 million. The decrease in salaries and employee benefits expense is due to a $17.3 million reduction in fixed compensation and a $6.3 million decrease in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 91 as of September 30, 2012 compared to 126 as of September 30, 2011. The decrease in general and administrative costs is due to a $2.0 million decrease in premise-related costs, a $1.9 million decrease in travel and entertainment expenses, a $0.9 million decrease in other operating and infrastructure costs, and a $0.7 million decrease in bad debt expense.
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Heidrick & Struggles International, Inc. has a market cap of $216.9 million; its shares were traded at around $12.8 with a P/E ratio of 48.1 and P/S ratio of 0.4. The dividend yield of Heidrick & Struggles International, Inc. stocks is 4.3%.
Highlight of Business Operations:
Revenue before reimbursements (net revenue). Consolidated net revenue decreased $24.9 million, or 17.5%, to $117.3 million for the three months ended September 30, 2012 from $142.2 million for the three months ended September 30, 2011. The negative impact of exchange rate fluctuations resulted in approximately 2 percentage points of the decrease. All practices except the Education & Social Enterprise practice contributed to the decline. The number of confirmed executive searches decreased 20.2% compared to the third quarter of 2011 due in part to a decrease in consultant headcount as a result of the 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The number of consultants was 332 as of September 30, 2012 compared to 386 as of September 30, 2011. Productivity, as measured by annualized net revenue per consultant, was $1.4 million in the third quarter of 2012 compared to $1.5 million in the third quarter of 2011, and average revenue per executive search was $123,700 in the 2012 third quarter compared to $117,600 in the 2011 third quarter.In Europe, operating income for the three months ended September 30, 2012 decreased $1.9 million to $0.5 million from $2.4 million for the three months ended September 30, 2011. The decrease is due to lower net revenue of $16.2 million, partially offset by declines in salaries and employee benefits expense of $12.6 million and general and administrative expenses of $1.7 million. The decrease in salaries and employee benefits expense reflects a decrease of $7.8 million in fixed compensation and a decrease of $4.8 million in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 91 as of September 30, 2012 compared to 126 as of September 30, 2011. The decrease in general and administrative expense is primarily due to a $1.1 million reduction in premise-related costs, and a $0.5 million decrease in travel and entertainment expenses.
Revenue before reimbursements (net revenue). Consolidated net revenue decreased $60.7 million, or 15.2%, to $339.9 million for the nine months ended September 30, 2012 from $400.6 million for the nine months ended September 30, 2011. The negative impact of exchange rate fluctuations resulted in approximately 2 percentage points of the decrease. All practices, except the Education & Social Enterprise practice contributed to the decline. Net revenue decreased in all regions. The number of confirmed executive searches decreased 18.0% compared to the nine months ended 2011, due in part to a decrease in worldwide headcount as a result of the 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The number of consultants was 332 as of September 30, 2012 compared to 386 as of September 30, 2011. Productivity, as measured by annualized net revenue per consultant, decreased to $1.3 million for the nine months ended 2012 from $1.4 million for the nine months ended 2011, and average revenue per executive search was $112,600 for the nine months ended September 30, 2012 compared to $108,800 for the nine months ended September 30, 2011.
The Americas reported operating income of $49.1 million for the nine months ended September 30, 2012 compared to $44.3 million for the nine months ended September 30, 2011. The increase of $4.9 million is due to a $20.4 million decrease in salaries and employee benefits expense and a $5.0 million decrease in general and administrative expenses partially offset by lower net revenue of $20.5 million. The decrease in salaries and employee benefits expense is due to a $10.9 million reduction in fixed compensation and a $9.5 million decrease in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 156 as of September 30, 2012 compared to 176 as of September 30, 2011. The decrease in general and administrative costs is primarily due to decreases in fees for professional services of $2.1 million, $2.1 million in other operating and infrastructure costs, $1.1 million of premise-related costs, and travel and entertainment expenses of $1.0 million, partially offset by a $1.3 million increase in bad debt expense.
Europe reported an operating income of $3.0 million for the nine months ended September 30, 2012, compared to an operating loss of $2.0 million for the nine months ended September 30, 2011. The increase in operating income is due to decreases in salaries and employee benefits expense of $23.6 million and general and administrative expense of $5.5 million, partially offset by a decrease in net revenue of $24.1 million. The decrease in salaries and employee benefits expense is due to a $17.3 million reduction in fixed compensation and a $6.3 million decrease in performance-related compensation. Fixed compensation decreased primarily due to lower headcount as a result of our 2011 restructuring, as well as consultant turnover that exceeded new hires and promotions. The performance-related compensation decrease reflects a decrease in accruals for variable compensation associated with lower net revenue, a decrease in worldwide headcount as a result of the 2011 restructuring, and consultant turnover that exceeded new hires and promotions. The number of consultants was 91 as of September 30, 2012 compared to 126 as of September 30, 2011. The decrease in general and administrative costs is due to a $2.0 million decrease in premise-related costs, a $1.9 million decrease in travel and entertainment expenses, a $0.9 million decrease in other operating and infrastructure costs, and a $0.7 million decrease in bad debt expense.
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