Form 8-K KORN FERRY INTERNATIONAL For: Dec 06

December 6, 2017 4:11 PM

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 6, 2017

 

 

KORN/FERRY INTERNATIONAL

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-14505   95-2623879

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1900 Avenue of the Stars, Suite 2600

Los Angeles, California 90067

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (310) 552-1834

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933

(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On December 6, 2017, Korn/Ferry International (the “Company”) issued a press release announcing its second quarter fiscal year 2018 results. A copy of the press release is attached hereto as Exhibit 99.1. The information in this Item 2.02 and the exhibit hereto are furnished to, but not filed with, the Securities and Exchange Commission.

Item 8.01 Other Events.

On December 6, 2017, the Board of Directors of the Company declared a cash dividend of $0.10 per share that will be paid on January 12, 2018 to holders of the Company’s common stock of record at the close of business on December 20, 2017. The declaration and payment of future dividends under the quarterly dividend policy will be at the discretion of the Board of Directors and will depend upon many factors, including the Company’s earnings, capital requirements, financial conditions, the terms of the Company’s indebtedness and other factors that the Board of Directors may deem to be relevant. The Company may amend, revoke or suspend the dividend policy at any time and for any reason at its discretion.

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits

 

Exhibit 99.1    Press Release, dated December 6, 2017.


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1    Press Release, dated December 6, 2017


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  KORN/FERRY INTERNATIONAL
  (Registrant)
Date: December 6, 2017  
 

/s/ ROBERT P. ROZEK

  (Signature)
  Name: Robert P. Rozek
 

Title:   Executive Vice President, Chief Financial Officer and

            Chief Corporate Officer

Exhibit 99.1

 

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FOR IMMEDIATE RELEASE    Contacts:
   Investor Relations: Gregg Kvochak, (310) 556-8550
   Media: Dan Gugler, (310) 226-2645

Korn Ferry International Announces Second Quarter Fiscal 2018 Results of Operations

Highlights

 

    Korn Ferry reports record fee revenue of $443.0 million in Q2 FY’18 driven by organic growth in all three lines of business as compared to Q2 FY’17:

 

Futurestep

     16.7

Executive Search

     13.2

Hay Group

     5.9

 

    Operating income was $51.2 million in Q2 FY’18 with an operating margin of 11.6%. Adjusted EBITDA was $69.6 million with Adjusted EBITDA margin of 15.7%.

 

    Q2 FY’18 diluted earnings per share was $0.64 compared to diluted earnings per share of $0.52 in Q2 FY’17. Adjusted diluted earnings per share was $0.67 in Q2 FY’18, compared to adjusted diluted earnings per share in Q2 FY’17 of $0.59.

 

    The Company continued to return capital to stockholders during the quarter, paying $5.7 million in dividends and repurchasing $25.2 million worth of its outstanding shares.

 

    The Company declared a quarterly dividend of $0.10 per share on December 6, 2017 payable on January 12, 2018 to stockholders of record on December 20, 2017.

Los Angeles, CA, December 6, 2017 – Korn/Ferry International (NYSE: KFY), the preeminent global people and organizational advisory firm, today announced record fee revenue of $443.0 million for its second quarter of fiscal 2018. In addition, second quarter diluted earnings per share was $0.64 and adjusted earnings per share was $0.67. Adjusted diluted earnings per share for the second quarter excluded $1.5 million, or $0.03 per share, mainly driven by integration/acquisition costs net of related taxes.

“I am pleased to report fee revenue of $443 million, an all-time high, up 10% year over year for our recently completed second quarter. Profits were solid, with diluted earnings per share and adjusted diluted earnings per share of $0.64 and $0.67 and Adjusted EBITDA of approximately $70 million,” said Gary D. Burnison, CEO of Korn Ferry. “Korn Ferry has evolved into a full-fledged consulting firm, with offerings that span search, organizational advisory services, strategy execution, leadership development, compensation and rewards and more. The acquisitions we have made over the years, the talent we have brought on board and our relentless focus on solutions aligned toward our clients’ business outcomes are making a notable impact. I look forward to what the future holds as we enter calendar year 2018.”

 

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Selected Financial Results

(dollars in millions, except per share amounts) (a)

 

                                                                   
     Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Fee revenue

   $ 443.0     $ 401.9     $ 844.3     $ 777.5  

Total revenue

   $ 455.5     $ 415.0     $ 870.4     $ 807.9  

Operating income

   $ 51.2     $ 46.5     $ 92.0     $ 51.1  

Operating margin

     11.6     11.6     10.9     6.6

Net income attributable to Korn Ferry

   $ 36.3     $ 30.2     $ 65.4     $ 33.4  

Basic earnings per share

   $ 0.65     $ 0.53     $ 1.16     $ 0.59  

Diluted earnings per share

   $ 0.64     $ 0.52     $ 1.15     $ 0.58  
EBITDA Results (b):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

EBITDA

   $ 67.4     $ 57.5     $ 123.9     $ 77.7  

EBITDA margin

     15.2     14.3     14.7     10.0
Adjusted Results (c):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Adjusted fee revenue

   $ 443.0     $ 401.9     $ 844.3     $ 781.1  

Adjusted EBITDA (b)

   $ 69.6     $ 63.3     $ 128.9     $ 119.7  

Adjusted EBITDA margin (b)

     15.7     15.7     15.3     15.3

Adjusted net income attributable to Korn Ferry

   $ 37.8     $ 34.1     $ 69.0     $ 63.6  

Adjusted basic earnings per share

   $ 0.68     $ 0.60     $ 1.23     $ 1.12  

Adjusted diluted earnings per share

   $ 0.67     $ 0.59     $ 1.21     $ 1.11  

 

(a) Numbers may not total due to rounding.
(b) EBITDA refers to earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to exclude restructuring (recoveries) charges, net and integration/acquisition costs and includes the FY’17 deferred revenue adjustment related to the acquisition of HG (Luxembourg) S.à.r.l (“Legacy Hay”). EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations).
(c) Adjusted results are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

 

                                                                   
     Second Quarter    Year to Date
     FY’18    FY’17    FY’18    FY’17

Integration/acquisition costs

   $ 2.4      $ 5.8        $ 5.0        $ 13.8    

Restructuring (recoveries) charges, net

   $ (0.2    $ —        $ 0.1      $ 24.5  

Deferred revenue adjustment related to the Legacy Hay acquisition

   $ —        $ —        $ —        $ 3.5  

Write-off of debt issuance costs

   $ —        $ —        $ —        $ 1.0  

The Company reported record fee revenue in Q2 FY’18 of $443.0 million, an increase of $41.1 million or 10.2% (an increase of $35.9 million or 8.9% on a constant currency basis) compared to Q2 FY’17. The organic growth was driven by all three lines of business:

 

Futurestep

     16.7

Executive Search

     13.2

Hay Group

     5.9

Fee revenue growth in the quarter was partially offset by increased compensation and benefits as well as general and administrative expenses resulting in operating income and Adjusted EBITDA each growing 10% as compared to Q2 FY’17 and diluted earnings per share and Adjusted diluted earnings per share growing 23.1% and almost 13.6%, respectively, as compared to Q2 FY’17.

 

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Results by Segment

Selected Executive Search Data

(dollars in millions) (a)

 

                                                                   
     Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Fee revenue

   $ 176.8     $ 156.2     $ 338.0     $ 302.6  

Total revenue

   $ 180.6     $ 160.6     $ 346.4     $ 312.1  

Operating income

   $ 35.2     $ 37.4     $ 68.0     $ 64.4  

Operating margin

     19.9     24.0     20.1     21.3

Ending number of consultants

     538       501       538       501  

Average number of consultants

     535       495       528       495  

Engagements billed

     3,723       3,486       5,752       5,312  

New engagements (b)

     1,578       1,509       3,171       2,955  
EBITDA Results (c):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

EBITDA

   $ 37.6     $ 39.0     $ 72.8     $ 67.9  

EBITDA margin

     21.3     25.0     21.5     22.4
Adjusted Results (d):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Adjusted EBITDA (c)

   $ 37.9     $ 39.0     $ 73.1     $ 70.7  

Adjusted EBITDA margin (c)

     21.5     25.0     21.6     23.4

 

(a) Numbers may not total due to rounding.
(b) Represents new engagements opened in the respective period.
(c) EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations).
(d) Adjusted results are non-GAAP financial measures that exclude the following (see attached reconciliations):

 

                                                                   
     Second Quarter      Year to Date  
     FY’18      FY’17      FY’18      FY’17  

Restructuring charges, net

   $   0.3        $ —          $   0.3        $   2.8    

Fee revenue was $176.8 million in Q2 FY’18, an increase of $20.6 million or 13.2% (an increase of $18.6 million or 11.9% on a constant currency basis) compared to Q2 FY’17. The overall increase in fee revenue was attributable to higher fee revenue in the North American, EMEA and APAC regions.

Operating income was $35.2 million in Q2 FY’18 compared to $37.4 million in Q2 FY’17. Operating margin was 19.9% in Q2 FY’18 compared to 24.0% in the year-ago quarter. The decrease in operating income was due to increases in compensation expenses driven by an 8.4% increase in headcount and an increase in the amounts owed under certain deferred compensation plans. In addition, there were increases in general and administrative expenses due to unfavorable impact of foreign exchange rates and slightly higher bad debt expense.

Adjusted EBITDA was $37.9 million in Q2 FY’18 with an adjusted EBITDA margin of 21.5% compared to $39.0 million and 25.0%, respectively, in the year-ago quarter.

 

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Selected Hay Group Data

(dollars in millions) (a)

 

                                                                   
     Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Fee revenue

   $ 200.0     $ 188.8     $ 379.4     $ 363.4  

Total revenue

   $ 203.8     $ 192.4     $ 387.1     $ 373.9  

Operating income

   $ 26.4     $ 22.9     $ 45.5     $ 15.2  

Operating margin

     13.2     12.1     12.0     4.2

Ending number of consultants (b)

     594       563       594       563  

Staff utilization (c)

     67     69     65     68
EBITDA Results (d):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

EBITDA

   $ 34.6     $ 31.0     $ 61.8     $ 31.5  

EBITDA margin

     17.3     16.4     16.3     8.7
Adjusted Results (e):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Adjusted fee revenue

   $ 200.0     $ 188.8     $ 379.4     $ 367.0  

Adjusted EBITDA (d)

   $ 36.4     $ 35.3     $ 66.4     $ 65.1  

Adjusted EBITDA margin (d)

     18.2     18.7     17.5     17.7

 

(a) Numbers may not total due to rounding.
(b) Represents number of employees originating consulting services.
(c) Calculated by dividing the number of hours our full-time Hay Group professional staff record to engagements during the period, by the total available working hours during the same period.
(d) EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures (see attached reconciliations).
(e) Adjusted results are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

 

                                                                   
     Second Quarter      Year to Date  
     FY’18      FY’17      FY’18      FY’17  

Integration/acquisition costs

   $ 2.3      $ 4.4        $ 4.9      $ 8.6    

Restructuring (recoveries) charges, net

   $ (0.5    $ —        $ (0.2    $ 21.5  

Deferred revenue adjustment related to the Legacy Hay acquisition

   $ —        $ —        $ —        $ 3.5  

Fee revenue was $200.0 million in Q2 FY’18 compared to $188.8 million in Q2 FY’17, an increase of $11.2 million or 5.9% (an increase of $8.9 million or 4.7% on a constant currency basis) compared to Q2 FY’17. The increase in fee revenue was primarily driven by increases in consulting services.

Operating income was $26.4 million in Q2 FY’18 with an operating margin of 13.2% in the current quarter compared to $22.9 million and 12.1%, respectively, in the year-ago quarter. The change in operating income was primarily due to higher fee revenue compared to the year-ago quarter, offset by increases in compensation and benefits expense and general and administrative expenses driven by a 2.5% increase in headcount and the unfavorable impact of foreign exchange rates.

Adjusted EBITDA was $36.4 million in Q2 FY’18 with an Adjusted EBITDA margin of 18.2% compared to $35.3 million and 18.7%, respectively, in the year-ago quarter.

 

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Selected Futurestep Data

(dollars in millions) (a)

     Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

Fee revenue

   $   66.3     $   56.8     $   126.9     $   111.5  

Total revenue

   $ 71.0     $ 62.0     $ 136.9     $ 121.9  

Operating income

   $ 9.4     $ 7.8     $ 17.6     $ 15.3  

Operating margin

     14.2     13.7     13.9     13.7

Engagements billed (b)

     1,228       1,025       1,907       1,595  

New engagements (c)

     711       559       1,443       1,078  
EBITDA Results (d):    Second Quarter     Year to Date  
     FY’18     FY’17     FY’18     FY’17  

EBITDA

   $ 10.2     $ 8.5     $ 19.2     $ 16.6  

EBITDA margin

     15.4     14.9     15.2     14.9

 

(a) Numbers may not total due to rounding.
(b) Represents search engagements billed.
(c) Represents new search engagements opened in the respective period.
(d) EBITDA and EBITDA margin are non-GAAP financial measures (see attached reconciliations).

Fee revenue was $66.3 million in Q2 FY’18, an increase of $9.5 million or 16.7% (a $8.6 million or 15.1% increase on a constant currency basis), compared to the year-ago quarter. The higher fee revenue was primarily driven by an increase in recruitment process outsourcing and professional search of $7.3 million and $2.8 million, respectively, in Q2 FY’18 compared to Q2 FY’17.

Operating income was $9.4 million in Q2 FY’18, an increase of $1.6 million compared to Q2 FY’17 operating income of $7.8 million. Operating margin was 14.2% in the current quarter compared to 13.7% in the year-ago quarter. The change in operating income was primarily due to higher fee revenue compared to the year-ago quarter, offset by increases in compensation and benefits expense and general and administrative expenses driven by a 16.1% increase in headcount associated with increased recruitment process outsourcing engagements and higher premise costs and bad debt expense.

EBITDA was $10.2 million during Q2 FY’18, an increase of $1.7 million compared to Q2 FY’17. EBITDA margin was 15.4% in Q2 FY’18 compared to 14.9% in the year-ago quarter.

Outlook

Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady and no changes in U.S. tax laws, on a consolidated basis:

 

  Q3 FY’18 fee revenue is expected to be in the range of $406 million and $426 million; and
  Q3 FY’18 diluted earnings per share is likely to range between $0.51 to $0.59.

On a consolidated adjusted basis:

 

  Q3 FY’18 adjusted diluted earnings per share is expected to be in the range from $0.54 to $0.62.

 

     Q3 FY’18
Earnings Per Share
Outlook (1)
 
     Low      High  

Consolidated diluted earnings per share

   $ 0.51      $ 0.59  

Retention bonuses

     0.04        0.04  

Tax rate impact

     (0.01      (0.01
  

 

 

    

 

 

 

Consolidated adjusted diluted earnings per share

   $ 0.54      $ 0.62  
  

 

 

    

 

 

 

 

(1) Consolidated adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table.

 

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Earnings Conference Call Webcast

The earnings conference call will be held today at 4:30 PM (EST) and hosted by CEO Gary Burnison, CFO Robert Rozek and SVP Finance Gregg Kvochak. The conference call will be webcast and available online at ir.kornferry.com. We will also post to this section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.

 

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About Korn Ferry

Korn Ferry is the preeminent global people and organizational advisory firm. We help leaders, organizations and societies succeed by releasing the full power and potential of people. Our more than 7,000 colleagues deliver services through Executive Search, Hay Group and Futurestep divisions. Visit kornferry.com for more information.

Forward-Looking Statements

Statements in this press release and our conference call that relate to future results and events (“forward-looking statements”) are based on Korn Ferry’s current expectations. These statements, which include words such as “believes”, “expects” or “likely”, include references to our outlook. Readers are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to competition, changes in demand for our services as a result of automation, the dependence on attracting and retaining qualified and experienced consultants, our ability to successfully integrate acquired businesses including Legacy Hay, our ability to recognize the anticipated benefits of the acquisition of Legacy Hay which may be affected by, among other things, competition, our ability to grow and manage growth profitability, maintain relationships with customers and suppliers and retain key employees, costs related to the acquisition of Legacy Hay, maintaining our brand name and professional reputation, potential legal liability, the portability of client relationships, global and local political or economic developments in or affecting countries where we have operations, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure with our growth, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities, changes to data security, data privacy and data protection laws, limited protection of our intellectual property, our ability to enhance and develop new technology, our ability to develop new products and services, consolidation of industries we serve, our ability to successfully recover from a disaster or other business continuity problems, changes in our accounting estimates/assumptions, changes in U.S. tax laws, impairment of goodwill and other intangible assets, deferred tax assets, seasonality, our ability to successfully rationalize our cost structure and employment liability risk. For a detailed description of risks and uncertainties that could cause differences, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:

 

    adjusted net income attributable to Korn/Ferry International, adjusted to exclude restructuring (recoveries) charges, net, integration/acquisition costs and write-off of debt issuance costs and to include the deferred revenue adjustment related to the Legacy Hay acquisition, net of income tax effect;

 

    adjusted basic and diluted earnings per share, adjusted to exclude restructuring (recoveries) charges, net, integration/acquisition costs and write-off of debt issuance costs and to include the deferred revenue adjustment related to the Legacy Hay acquisition, net of income tax effect; and in the case of the outlook section, also adjusted for tax rate impact;

 

    constant currency (calculated using a quarterly average) amounts that represent the outcome that would have resulted had exchange rates in the reported period been the same as those in effect in the comparable prior year period;

 

    EBITDA, or earnings before interest, taxes, depreciation and amortization and EBITDA margin;

 

    Adjusted EBITDA, which is EBITDA further adjusted to exclude restructuring (recoveries) charges, net and integration/acquisition costs and to include the deferred revenue adjustment related to the Legacy Hay acquisition and Adjusted EBITDA margin; and

 

    adjusted fee revenue, which includes revenue that Hay Group would have realized over the ensuing year if not for business combination accounting that requires a company to record the acquisition balance sheet at fair value and write-off deferred revenue where no future services are required to be performed to earn that revenue.

 

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This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain charges and other items that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges represent 1) costs we incurred to acquire and integrate the Legacy Hay acquisition, 2) charges we incurred to restructure the combined company due to the acquisition of Legacy Hay, 3) debt issuance costs written-off upon replacement of our credit facility and 4) revenue that Hay Group would have realized if not for business combination accounting that requires a company to record the acquisition balance sheet at fair value and write-off deferred revenue where no future services are required to be performed to earn that revenue. As such, reported fee revenue can make fee revenue and operating results appear to fluctuate more than they would if business combination accounting did not require deferred revenue to be written off. Adjusted fee revenue is not a measure that substitutes an individually tailored revenue recognition or measurement method for those of GAAP, rather, it is an adjustment for a short period of time that will provide better comparability in the current and future periods. Management believes the presentation of adjusted fee revenue assists management in its evaluation of ongoing operations and provides useful information to investors because it allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be distorted by write-offs required under business combination accounting and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Management no longer has adjusted fee revenue after Q1 FY’17. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Management further believes that EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency amounts, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry’s performance as excluding the impact of exchange rate changes on Korn Ferry’s financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making.

[Tables attached]

 

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KORN FERRY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

 

     Three Months Ended
October 31
    Six Months Ended
October 31
 
     2017     2016     2017     2016  
     (unaudited)  

Fee revenue

   $ 443,018     $ 401,917     $ 844,272     $ 777,538  

Reimbursed out-of-pocket engagement expenses

     12,450       13,037       26,113       30,349  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     455,468       414,954       870,385       807,887  
  

 

 

   

 

 

   

 

 

   

 

 

 

Compensation and benefits

     301,043       270,609       574,997       533,576  

General and administrative expenses

     58,603       54,134       116,864       109,476  

Reimbursed expenses

     12,450       13,037       26,113       30,349  

Cost of services

     19,883       18,874       35,696       35,706  

Depreciation and amortization

     12,447       11,752       24,656       23,196  

Restructuring (recoveries) charges, net

     (202     —         78       24,520  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     404,224       368,406       778,404       756,823  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     51,244       46,548       91,981       51,064  

Other income (loss), net

     3,626       (879     7,158       3,380  

Interest expense, net

     (2,579     (2,736     (5,239     (5,797
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries

     52,291       42,933       93,900       48,647  

Equity in earnings of unconsolidated subsidiaries

     60       29       90       108  

Income tax provision

     15,619       11,906       27,829       13,631  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     36,732       31,056       66,161       35,124  

Net income attributable to noncontrolling interest

     (401     (904     (789     (1,764
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Korn/Ferry International

   $ 36,331     $ 30,152     $ 65,372     $ 33,360  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Korn/Ferry International:

        

Basic

   $ 0.65     $ 0.53     $ 1.16     $ 0.59  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.64     $ 0.52     $ 1.15     $ 0.58  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average common shares outstanding:

        

Basic

     55,390       56,614       55,592       56,401  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     55,978       56,983       56,252       56,863  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends declared per share:

   $ 0.10     $ 0.10     $ 0.20     $ 0.20  
  

 

 

   

 

 

   

 

 

   

 

 

 


KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY SEGMENT

(in thousands)

(unaudited)

 

     Three Months Ended October 31,     Six Months Ended October 31,  
     2017           2016     % Change     2017           2016     % Change  

Fee Revenue:

                

Executive search:

                

North America

   $ 101,544       $ 92,732       9.5   $ 193,377       $ 174,534       10.8

EMEA

     41,346         34,779       18.9     81,467         70,149       16.1

Asia Pacific

     25,912         19,470       33.1     47,490         39,096       21.5

Latin America

     7,964         9,247       (13.9 %)      15,623         18,810       (16.9 %) 
  

 

 

     

 

 

     

 

 

     

 

 

   

Total executive search

     176,766         156,228       13.1     337,957         302,589       11.7

Hay Group

     199,953         188,842       5.9     379,406         363,424       4.4

Futurestep

     66,299         56,847       16.6     126,909         111,525       13.8
  

 

 

     

 

 

     

 

 

     

 

 

   

Total fee revenue

     443,018         401,917       10.2     844,272         777,538       8.6

Reimbursed out-of-pocket engagement expenses

     12,450         13,037       (4.5 %)      26,113         30,349       (14.0 %) 
  

 

 

     

 

 

     

 

 

     

 

 

   

Total revenue

   $ 455,468       $ 414,954       9.8   $ 870,385       $ 807,887       7.7
  

 

 

     

 

 

     

 

 

     

 

 

   
           Margin           Margin           Margin           Margin  

Operating Income (Loss):

                

Executive search:

                

North America

   $ 22,945       22.6   $ 26,272       28.3   $ 44,940       23.2   $ 42,740       24.5

EMEA

     6,345       15.3     6,847       19.7     13,020       16.0     12,874       18.4

Asia Pacific

     4,381       16.9     2,028       10.4     7,522       15.8     4,130       10.6

Latin America

     1,527       19.2     2,284       24.7     2,553       16.3     4,614       24.5
  

 

 

     

 

 

     

 

 

     

 

 

   

Total executive search

     35,198       19.9     37,431       24.0     68,035       20.1     64,358       21.3

Hay Group

     26,370       13.2     22,943       12.1     45,453       12.0     15,200       4.2

Futurestep

     9,409       14.2     7,787       13.7     17,646       13.9     15,300       13.7

Corporate

     (19,733       (21,613       (39,153       (43,794  
  

 

 

     

 

 

     

 

 

     

 

 

   

Total operating income

   $ 51,244       11.6   $ 46,548       11.6   $ 91,981       10.9   $ 51,064       6.6
  

 

 

     

 

 

     

 

 

     

 

 

   


KORN FERRY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

     October 31,     April 30,  
     2017     2017  
     (unaudited)        

ASSETS

    

Cash and cash equivalents

   $ 282,625     $ 410,882  

Marketable securities

     13,671       4,363  

Receivables due from clients, net of allowance for doubtful accounts of $15,930 and $15,455 at October 31, 2017 and April 30, 2017, respectively

     397,374       345,314  

Income taxes and other receivables

     40,312       31,573  

Prepaid expenses and other assets

     66,809       51,542  
  

 

 

   

 

 

 

Total current assets

     800,791       843,674  
  

 

 

   

 

 

 

Marketable securities, non-current

     117,566       115,574  

Property and equipment, net

     115,090       109,567  

Cash surrender value of company owned life insurance policies, net of loans

     115,627       113,067  

Deferred income taxes

     22,167       20,175  

Goodwill

     581,780       576,865  

Intangible assets, net

     210,016       217,319  

Investments and other assets

     99,064       66,657  
  

 

 

   

 

 

 

Total assets

   $ 2,062,101     $ 2,062,898  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Accounts payable

   $ 34,645     $ 37,481  

Income taxes payable

     14,687       4,526  

Compensation and benefits payable

     191,512       248,354  

Term loan

     21,473       19,754  

Other accrued liabilities

     150,855       148,464  
  

 

 

   

 

 

 

Total current liabilities

     413,172       458,579  
  

 

 

   

 

 

 

Deferred compensation and other retirement plans

     222,755       219,905  

Term loan, non-current

     224,626       236,222  

Deferred tax liabilities

     16,807       7,014  

Other liabilities

     50,018       54,130  
  

 

 

   

 

 

 

Total liabilities

     927,378       975,850  
  

 

 

   

 

 

 

Stockholders’ equity

    

Common stock: $0.01 par value, 150,000 shares authorized, 71,529 and 70,811 shares issued and 56,511 and 56,938 shares outstanding at October 31, 2017 and April 30, 2017, respectively

     674,105       692,527  

Retained earnings

     515,811       461,976  

Accumulated other comprehensive loss, net

     (57,902     (71,064
  

 

 

   

 

 

 

Total Korn/Ferry International stockholders’ equity

     1,132,014       1,083,439  

Noncontrolling interest

     2,709       3,609  
  

 

 

   

 

 

 

Total stockholders’ equity

     1,134,723       1,087,048  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,062,101     $ 2,062,898  
  

 

 

   

 

 

 


KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

 

     Three Months Ended     Six Months Ended  
     October 31,     October 31,  
     2017     2016     2017     2016  
     (unaudited)  

Fee revenue

   $ 443,018     $ 401,917     $ 844,272     $ 777,538  

Deferred revenue adjustment due to acquisition (1)

     —         —         —         3,535  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted fee revenue

   $ 443,018     $ 401,917     $ 844,272     $ 781,073  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 51,244     $ 46,548     $ 91,981     $ 51,064  

Depreciation and amortization

     12,447       11,752       24,656       23,196  

Other income (loss), net

     3,626       (879     7,158       3,380  

Equity in earnings of unconsolidated subsidiaries, net

     60       29       90       108  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     67,377       57,450       123,885       77,748  

Deferred revenue adjustment due to acquisition (1)

     —         —         —         3,535  

Restructuring (recoveries) charges, net (2)

     (202     —         78       24,520  

Integration/acquisition costs (3)

     2,393       5,820       4,981       13,847  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 69,568     $ 63,270     $ 128,944     $ 119,650  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin

     11.6     11.6     10.9     6.6

Depreciation and amortization

     2.8     2.9     2.9     3.0

Other income (loss), net

     0.8     (0.2 %)      0.9     0.4

Equity in earnings of unconsolidated subsidiaries, net

     —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

     15.2     14.3     14.7     10.0

Deferred revenue adjustment due to acquisition (1)

     —         —         —         0.4

Restructuring (recoveries) charges, net (2)

     —         —         —         3.1

Integration/acquisition costs (3)

     0.5     1.4     0.6     1.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     15.7     15.7     15.3     15.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Korn/Ferry International

   $ 36,331     $ 30,152     $ 65,372     $ 33,360  

Deferred revenue adjustment due to acquisition (1)

     —         —         —         3,535  

Restructuring (recoveries) charges, net (2)

     (202     —         78       24,520  

Integration/acquisition costs (3)

     2,393       5,820       4,981       13,847  

Write-off of debt issuance costs (4)

     —         —         —         954  

Tax effect on the above items (5)

     (681     (1,916     (1,405     (12,634
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to Korn/Ferry International

   $ 37,841     $ 34,056     $ 69,026     $ 63,582  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share

   $ 0.65     $ 0.53     $ 1.16     $ 0.59  

Deferred revenue adjustment due to acquisition (1)

     —         —         —         0.06  

Restructuring (recoveries) charges, net (2)

     —         —         —         0.43  

Integration/acquisition costs (3)

     0.04       0.10       0.10       0.25  

Write-off of debt issuance costs (4)

     —         —         —         0.02  

Tax effect on the above items (5)

     (0.01     (0.03     (0.03     (0.23
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted basic earnings per share

   $ 0.68     $ 0.60     $ 1.23     $ 1.12  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per common share

   $ 0.64     $ 0.52     $ 1.15     $ 0.58  

Deferred revenue adjustment due to acquisition (1)

     —         —         —         0.06  

Restructuring (recoveries) charges, net (2)

     —         —         —         0.43  

Integration/acquisition costs (3)

     0.04       0.10       0.09       0.24  

Write-off of debt issuance costs (4)

     —         —         —         0.02  

Tax effect on the above items (5)

     (0.01     (0.03     (0.03     (0.22
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

   $ 0.67     $ 0.59     $ 1.21     $ 1.11  
  

 

 

   

 

 

   

 

 

   

 

 

 

Explanation of Non-GAAP Adjustments

 

(1) This represents the deferred revenue recorded on the opening balance sheet of Hay Group, required by fair value accounting. The adjustment is included in the Hay Group segment for the six months ended October 31, 2016. Management has no longer adjusted fee revenue after Q1 FY’17.
(2) Restructuring plan implemented in order to rationalize our cost structure by eliminating redundant positions and consolidating office space due to the acquisition of Legacy Hay on December 1, 2015.
(3) Costs associated with completing the acquisition of Legacy Hay, such as legal and professional fees, and the on-going integration expenses to combine the companies.
(4) Write-off of debt issuance costs as a result of replacing our prior Credit Agreement with a new senior secured Credit Agreement.
(5) Tax effect on deferred revenue adjustment associated with the acquisition of Legacy Hay, restructuring (recoveries) charges, net, integration/acquisition costs and write-off of debt issuance cost.


KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in thousands)

(unaudited)

 

    Three Months Ended October 31, 2017  
    Executive Search                          
    North
America
    EMEA     Asia
Pacific
    Latin
America
    Subtotal     Hay Group     Futurestep     Corporate     Consolidated  

Fee revenue

  $ 101,544     $ 41,346     $ 25,912     $ 7,964     $ 176,766     $ 199,953     $ 66,299     $ —       $ 443,018  

Total revenue

  $ 104,329     $ 42,073     $ 26,187     $ 7,994     $ 180,583     $ 203,836     $ 71,049     $ —       $ 455,468  

Net income attributable to Korn/Ferry International

                  $ 36,331  

Net income attributable to noncontrolling interest

                    401  

Other income, net

                    (3,626

Interest expense, net

                    2,579  

Equity in earnings of unconsolidated subsidiaries, net

                    (60

Income tax provision

                    15,619  
                 

 

 

 

Operating income (loss)

  $ 22,945     $ 6,345     $ 4,381     $ 1,527     $ 35,198     $ 26,370     $ 9,409     $ (19,733     51,244  

Depreciation and amortization

    984       459       371       111       1,925       8,143       784       1,595       12,447  

Other income, net

    290       43       94       39       466       57       —         3,103       3,626  

Equity in earnings of unconsolidated subsidiaries, net

    60       —         —         —         60       —         —         —         60  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    24,279       6,847       4,846       1,677       37,649       34,570       10,193       (15,035     67,377  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    23.9     16.6     18.7     21.1     21.3     17.3     15.4       15.2

Restructuring (recoveries) charges, net

    —         —         273       —         273       (481     6       —         (202

Integration/acquisition costs

    —         —         —         —         —         2,313       —         80       2,393  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 24,279     $ 6,847     $ 5,119     $ 1,677     $ 37,922     $ 36,402     $ 10,199     $ (14,955   $ 69,568  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    23.9     16.6     19.8     21.1     21.5     18.2     15.4       15.7
    Three Months Ended October 31, 2016  
    Executive Search                          
    North
America
    EMEA     Asia
Pacific
    Latin
America
    Subtotal     Hay Group     Futurestep     Corporate     Consolidated  

Fee revenue

  $ 92,732     $ 34,779     $ 19,470     $ 9,247     $ 156,228     $ 188,842     $ 56,847     $ —       $ 401,917  

Total revenue

  $ 95,902     $ 35,507     $ 19,929     $ 9,296     $ 160,634     $ 192,352     $ 61,968     $ —       $ 414,954  

Net income attributable to Korn/Ferry International

                  $ 30,152  

Net income attributable to noncontrolling interest

                    904  

Other loss, net

                    879  

Interest expense, net

                    2,736  

Equity in earnings of unconsolidated subsidiaries, net

                    (29

Income tax provision

                    11,906  
                 

 

 

 

Operating income (loss)

  $ 26,272     $ 6,847     $ 2,028     $ 2,284     $ 37,431     $ 22,943     $ 7,787     $ (21,613     46,548  

Depreciation and amortization

    990       229       264       174       1,657       8,025       669       1,401       11,752  

Other (loss) income, net

    (92     (80     24       24       (124     (11     —         (744     (879

Equity in earnings of unconsolidated subsidiaries, net

    29       —         —         —         29       —         —         —         29  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    27,199       6,996       2,316       2,482       38,993       30,957       8,456       (20,956     57,450  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    29.3     20.1     11.9     26.8     25.0     16.4     14.9       14.3

Integration/acquisition costs

    —         —         —         —         —         4,365       —         1,455       5,820  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 27,199     $ 6,996     $ 2,316     $ 2,482     $ 38,993     $ 35,322     $ 8,456     $ (19,501   $ 63,270  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    29.3     20.1     11.9     26.8     25.0     18.7     14.9       15.7


KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in thousands)

(unaudited)

 

    Six Months Ended October 31, 2017  
    Executive Search                          
    North
America
    EMEA     Asia
Pacific
    Latin
America
    Subtotal     Hay Group     Futurestep     Corporate     Consolidated  

Fee revenue

  $ 193,377     $ 81,467     $ 47,490     $ 15,623     $ 337,957     $ 379,406     $ 126,909     $ —       $ 844,272  

Total revenue

  $ 199,534     $ 83,131     $ 48,067     $ 15,658     $ 346,390     $ 387,132     $ 136,863     $ —       $ 870,385  

Net income attributable to Korn/Ferry International

                  $ 65,372  

Net income attributable to noncontrolling interest

                    789  

Other income, net

                    (7,158

Interest expense, net

                    5,239  

Equity in earnings of unconsolidated subsidiaries, net

                    (90

Income tax provision

                    27,829  
                 

 

 

 

Operating income (loss)

  $ 44,940     $ 13,020     $ 7,522     $ 2,553     $ 68,035     $ 45,453     $ 17,646     $ (39,153     91,981  

Depreciation and amortization

    1,933       887       691       218       3,729       16,228       1,580       3,119       24,656  

Other income, net

    572       99       199       59       929       89       8       6,132       7,158  

Equity in earnings of unconsolidated subsidiaries, net

    90       —         —         —         90       —         —         —         90  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    47,535       14,006       8,412       2,830       72,783       61,770       19,234       (29,902     123,885  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    24.6     17.2     17.7     18.1     21.5     16.3     15.2       14.7

Restructuring (recoveries) charges, net

    —         —         313       —         313       (241     6       —         78  

Integration/acquisition costs

    —         —         —         —         —         4,862       —         119       4,981  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 47,535     $ 14,006     $ 8,725     $ 2,830     $ 73,096     $ 66,391     $ 19,240     $ (29,783   $ 128,944  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    24.6     17.2     18.4     18.1     21.6     17.5     15.2       15.3
    Six Months Ended October 31, 2016  
    Executive Search                          
    North
America
    EMEA     Asia
Pacific
    Latin
America
    Subtotal     Hay Group     Futurestep     Corporate     Consolidated  

Fee revenue

  $ 174,534     $ 70,149     $ 39,096     $ 18,810     $ 302,589     $ 363,424     $ 111,525     $ —       $ 777,538  

Deferred revenue adjustment due to acquisition

    —         —         —         —         —         3,535       —         —         3,535  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted fee revenue

  $ 174,534     $ 70,149     $ 39,096     $ 18,810     $ 302,589     $ 366,959     $ 111,525     $ —       $ 781,073  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

  $ 181,327     $ 71,756     $ 40,109     $ 18,910     $ 312,102     $ 373,860     $ 121,925     $ —       $ 807,887  

Net income attributable to Korn/Ferry International

                  $ 33,360  

Net income attributable to noncontrolling interest

                    1,764  

Other income, net

                    (3,380

Interest expense, net

                    5,797  

Equity in earnings of unconsolidated subsidiaries, net

                    (108

Income tax provision

                    13,631  
                 

 

 

 

Operating income (loss)

  $ 42,740     $ 12,874     $ 4,130     $ 4,614     $ 64,358     $ 15,200     $ 15,300     $ (43,794     51,064  

Depreciation and amortization

    1,820       440       489       288       3,037       16,041       1,292       2,826       23,196  

Other income (loss), net

    196       (56     111       97       348       224       (2     2,810       3,380  

Equity in earnings of unconsolidated subsidiaries, net

    108       —         —         —         108       —         —         —         108  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    44,864       13,258       4,730       4,999       67,851       31,465       16,590       (38,158     77,748  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin

    25.7     18.9     12.1     26.6     22.4     8.7     14.9       10.0

Restructuring charges, net

    1,706       128       622       360       2,816       21,488       —         216       24,520  

Integration/acquisition costs

    —         —         —         —         —         8,629       —         5,218       13,847  

Deferred revenue adjustment due to acquisition

    —         —         —         —         —         3,535       —         —         3,535  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 46,570     $ 13,386     $ 5,352     $ 5,359     $ 70,667     $ 65,117     $ 16,590     $ (32,724   $ 119,650  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    26.7     19.1     13.7     28.5     23.4     17.7     14.9       15.3

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