Korn/Ferry International (KFY, Financial) filed Quarterly Report for the period ended 2008-10-31.
Korn/Ferry International is the world's leading and largestexecutive recruitment firm with the broadest global presence in the executive recruitment industry. KFY provides executive recruitment services exclusively on a retained basis and serve the global recruitment needs of our clients from middle to executive management. KFY's clients are many of the world's largest and most prestigious public and private companies middle-market and emerging growth companies as well as governmental and not-for-profit organizations. Korn/Ferry International has a market cap of $598.31 million; its shares were traded at around $10.89 with a P/E ratio of 8.6 and P/S ratio of 0.72. Korn/Ferry International had an annual average earning growth of 21.1% over the past 5 years.
Asia Pacific reported fee revenue of $21.2 million, a decrease of $3.5 million, or 14%, in the three months ended October 31, 2008 compared to $24.7 million in the three months ended October 31, 2007 from a decrease of 4% in average fees billed per engagement and a 11% decline in the number of engagements billed. The decrease in fee revenue was primarily due to declines in the financial, technology, life science and consumer goods sectors. Exchange rates unfavorably impacted fee revenue for Asia Pacific by $0.4 million in the second quarter of fiscal 2009.
Futurestep. Futurestep reported fee revenue of $29.1 million, an increase of $2.3 million, or 9%, in the three months ended October 31, 2008 compared to $26.8 million in the three months ended October 31, 2007. The improvement in Futuresteps fee revenue is due to an increase in the number of engagements billed offset by a slight decrease in average fee per engagement billed. Of the total increase in fee revenue, North America experienced the largest increase in fee revenue of $2.4 million, or 23.3%, to $12.7 million related to growth from Canada and the United States. Asia fee revenue increased $1.2 million, or 16.9%, to $8.3 million reflecting increased revenue from areas including RPO and individual searches. Europe fee revenue decreased $1.3 million, or 13.8%, to $8.1 million, arising from decreased business in the United Kingdom, Belgium and Norway offset by an increase in France. Exchange rates unfavorably impacted fee revenue by $0.4 million in the second quarter of fiscal 2009.
Executive recruitment general and administrative expenses decreased $1.7 million, or 7%, to $23.2 million in the three months ended October 31, 2008 from $24.9 million in the three months ended October 31, 2007. This decrease was driven by decreases in other types of general expenses including meeting and travel expenses of $1.4 million, realized foreign exchange gains of $1.3 million and business development expenses of $0.3 million. Offsetting the overall decrease in executive recruitment general and administrative expenses is an increase in premise and office expenses of $1.1 million and bad debt expense of $0.2 million. Increased premise and office expenses is attributable to all regions due to increased rent expenses and associated utility costs. Business development increased primarily due to the growth in the business. Executive recruitment general and administrative expenses, as a percentage of fee revenue, was 15% in the second quarter of fiscal 2009 and fiscal 2008.
Futurestep general and administrative expenses increased $0.4 million, or 7%, to $6.1 million in the three months ended October 31, 2008 compared to $5.7 million in the three months ended October 31, 2007 primarily due to an increase in business development expenses of $0.4 million, foreign exchange loss of $0.1 million, premise and office expenses of $0.2 million, general and administrative expenses of $0.1 million in meetings and travel expenses and offset by a decrease in bad debt expenses of $0.4 million. Increases in premise and office expenses resulted from increase in rent expenses noted across all regions and the opening of new offices in Europe and Asia. Futurestep general and administrative expenses, as a percentage of fee revenue, was 21% in the second quarter of fiscal 2009 and fiscal 2008.
Operating Income. Operating income decreased $3.9 million, or 15%, to $21.5 million in the three months ended October 31, 2008 compared to $25.4 million in the three months ended October 31, 2007. This decrease in operating income resulted from a $3.2 million decrease in operating expenses which was offset by a decrease in total revenue of $7.1 million.
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Korn/Ferry International is the world's leading and largestexecutive recruitment firm with the broadest global presence in the executive recruitment industry. KFY provides executive recruitment services exclusively on a retained basis and serve the global recruitment needs of our clients from middle to executive management. KFY's clients are many of the world's largest and most prestigious public and private companies middle-market and emerging growth companies as well as governmental and not-for-profit organizations. Korn/Ferry International has a market cap of $598.31 million; its shares were traded at around $10.89 with a P/E ratio of 8.6 and P/S ratio of 0.72. Korn/Ferry International had an annual average earning growth of 21.1% over the past 5 years.
Highlight of Business Operations:
Fee revenue decreased 3% in the second quarter of fiscal 2009 to $189.3 million compared to $195.9 million in the second quarter of fiscal 2008, with decreases in all executive recruitment regions offset by an increase of $2.3 million in Futurestep . The North America and Asia regions experienced the largest dollar decreases in fee revenue. In the second quarter of fiscal 2009, we earned an operating profit of $21.5 million with operating income from executive recruitment of $26.6 million and $1.2 million from Futurestep, offset by corporate expenses of $6.3 million. This represents a decrease of 15% over the prior years second quarter operating income of $25.4 million.Asia Pacific reported fee revenue of $21.2 million, a decrease of $3.5 million, or 14%, in the three months ended October 31, 2008 compared to $24.7 million in the three months ended October 31, 2007 from a decrease of 4% in average fees billed per engagement and a 11% decline in the number of engagements billed. The decrease in fee revenue was primarily due to declines in the financial, technology, life science and consumer goods sectors. Exchange rates unfavorably impacted fee revenue for Asia Pacific by $0.4 million in the second quarter of fiscal 2009.
Futurestep. Futurestep reported fee revenue of $29.1 million, an increase of $2.3 million, or 9%, in the three months ended October 31, 2008 compared to $26.8 million in the three months ended October 31, 2007. The improvement in Futuresteps fee revenue is due to an increase in the number of engagements billed offset by a slight decrease in average fee per engagement billed. Of the total increase in fee revenue, North America experienced the largest increase in fee revenue of $2.4 million, or 23.3%, to $12.7 million related to growth from Canada and the United States. Asia fee revenue increased $1.2 million, or 16.9%, to $8.3 million reflecting increased revenue from areas including RPO and individual searches. Europe fee revenue decreased $1.3 million, or 13.8%, to $8.1 million, arising from decreased business in the United Kingdom, Belgium and Norway offset by an increase in France. Exchange rates unfavorably impacted fee revenue by $0.4 million in the second quarter of fiscal 2009.
Executive recruitment general and administrative expenses decreased $1.7 million, or 7%, to $23.2 million in the three months ended October 31, 2008 from $24.9 million in the three months ended October 31, 2007. This decrease was driven by decreases in other types of general expenses including meeting and travel expenses of $1.4 million, realized foreign exchange gains of $1.3 million and business development expenses of $0.3 million. Offsetting the overall decrease in executive recruitment general and administrative expenses is an increase in premise and office expenses of $1.1 million and bad debt expense of $0.2 million. Increased premise and office expenses is attributable to all regions due to increased rent expenses and associated utility costs. Business development increased primarily due to the growth in the business. Executive recruitment general and administrative expenses, as a percentage of fee revenue, was 15% in the second quarter of fiscal 2009 and fiscal 2008.
Futurestep general and administrative expenses increased $0.4 million, or 7%, to $6.1 million in the three months ended October 31, 2008 compared to $5.7 million in the three months ended October 31, 2007 primarily due to an increase in business development expenses of $0.4 million, foreign exchange loss of $0.1 million, premise and office expenses of $0.2 million, general and administrative expenses of $0.1 million in meetings and travel expenses and offset by a decrease in bad debt expenses of $0.4 million. Increases in premise and office expenses resulted from increase in rent expenses noted across all regions and the opening of new offices in Europe and Asia. Futurestep general and administrative expenses, as a percentage of fee revenue, was 21% in the second quarter of fiscal 2009 and fiscal 2008.
Operating Income. Operating income decreased $3.9 million, or 15%, to $21.5 million in the three months ended October 31, 2008 compared to $25.4 million in the three months ended October 31, 2007. This decrease in operating income resulted from a $3.2 million decrease in operating expenses which was offset by a decrease in total revenue of $7.1 million.
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Gurus who own KFY
KFY is in the portfolios of Robert Olstein.More on KFY:
Gurus buys and sells of KFY
10-year financial history of KFY.
Insider buys/sells of KFY.
