Fourth Quarter Highlights:
- Net revenue reached a quarterly record of
$285.5 million with growth of 77% over the 4th quarter of 2020. - Operating income grew to
$16.6 million , while adjusted operating income achieved$28.0 million (an increase of 119%) at a margin of 9.8%. - Net income climbed to
$12.5 million and adjusted net income and adjusted diluted earnings per share were$20.8 million (an increase of 78%) and$1.02 (an increase of 73%), respectively. - Adjusted EBITDA was
$36.8 million (an increase of 69%) and adjusted EBITDA margin was 12.9%.
"We are very pleased with our outstanding fourth quarter and year-end performance, which continues to build the foundation for ongoing shareholder value creation," stated
2021 Fourth Quarter Results
Record consolidated net revenue of
Consolidated salaries and benefits were
General and administrative expenses were
The Company's cost of services was
The Company recorded a one-time earnout charge of
Net income was
Adjusted EBITDA increased 69.6% to
Net cash provided by operating activities was
Executive Search net revenue increased 66.3%, or
The Company had 365 Executive Search consultants at
On-Demand Talent, a new business segment which the Company acquired on
Fiscal 2021 Results
Consolidated net revenue was a record
Including restructuring charges of
Net income was
Adjusted EBITDA for 2021 increased 89.0% to
Executive Search net revenue increased 53.7% to
On-Demand Talent, acquired on
Dividend
The Board of Directors declared a 2021 fourth quarter cash dividend of
2022 First Quarter Outlook
The Company expects 2022 first quarter consolidated net revenue of between
Quarterly Webcast and Conference Call
About
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with generally accepted accounting principles in
The non-GAAP financial measures used within this earnings release are adjusted operating income, adjusted operating income margin, adjusted net income, adjusted basic and diluted earnings per share, adjusted effective tax rate, adjusted EBITDA, adjusted EBITDA margin, and impacts of foreign currency on current period results using prior period translation rates. These measures are presented because management uses this information to monitor and evaluate financial results and trends. Management believes this information is also useful for investors. Reconciliations of these non-GAAP financial measures with the most directly comparable measures calculated and presented in accordance with GAAP are provided as schedules attached to this release.
Adjusted operating income reflects the exclusion of one-time earnout obligation adjustments, goodwill impairment, and restructuring charges.
Adjusted operating income margin refers to adjusted operating income as a percentage of net revenue in the same period.
Adjusted net income and adjusted diluted earnings per share reflect the exclusion of one-time earnout obligation adjustments, goodwill impairment, and restructuring charges, net of tax.
Adjusted effective tax rate reflects the exclusion of one-time earnout obligation adjustments, goodwill impairment, and restructuring charges, net of tax.
Adjusted EBITDA refers to earnings before interest, taxes, depreciation, intangible amortization, equity-settled stock compensation expense, earnout accretion, one-time earnout obligation adjustments, contingent compensation related to acquisitions, restructuring charges, goodwill impairment, deferred compensation plan expenses and other non-operating income (expense).
Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net revenue in the same period.
The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages by converting its financial results in a local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly titled measures used by other companies.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the federal securities laws. The forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "outlook," "projects," "forecasts," and similar expressions. Forward-looking statements are not guarantees of future performance, rely on a number of assumptions, and involve certain known and unknown risks and uncertainties that are difficult to predict, many of which are beyond our control. Factors that may cause actual outcomes and results to differ materially from what is expressed, forecasted, or implied in the forward-looking statements include, among other things, the impacts, direct and indirect, of the COVID-19 pandemic (including the emergence of variant strains) on our business, our consultants and employees, and the overall economy; leadership changes, our ability to attract, integrate, develop, manage and retain qualified consultants and senior leaders; our ability to prevent our consultants from taking our clients with them to another firm; our ability to maintain our professional reputation and brand name; the fact that our net revenue may be affected by adverse economic conditions; our clients' ability to restrict us from recruiting their employees; the aggressive competition we face; our heavy reliance on information management systems; the fact that we face the risk of liability in the services we perform; the fact that data security, data privacy and data protection laws and other evolving regulations and cross-border data transfer restrictions may limit the use of our services and adversely affect our business; social, political, regulatory and legal risks in markets where we operate; any challenges to the classification of our on-demand talent as independent contractors; the impact of foreign currency exchange rate fluctuations; the fact that we may not be able to align our cost structure with net revenue; unfavorable tax law changes and tax authority rulings; our ability to realize our tax losses; the timing of the establishment or reversal of valuation allowance on deferred tax assets; any impairment of our goodwill, other intangible assets and other long-lived assets; our ability to execute and integrate future acquisitions; the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive; our ability to access additional credit; and the increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks that could pose a risk to our systems, networks, solutions, services and data. We caution the reader that the list of factors may not be exhaustive. For more information on the factors that could affect the outcome of forward-looking statements, refer to our Annual Report on Form 10-K for the year ended
Contacts:
Investors & Analysts:
wwebb@heidrick.com
Media:
nchang@heidrick.com
Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) |
|||||||
Three Months Ended |
|||||||
2021 |
2020 |
$ Change |
% Change |
||||
Revenue |
|||||||
Revenue before reimbursements (net revenue) |
$ 285,539 |
$ 160,987 |
$ 124,552 |
77.4% |
|||
Reimbursements |
1,654 |
1,200 |
454 |
37.8% |
|||
Total revenue |
287,193 |
162,187 |
125,006 |
77.1% |
|||
Operating expenses |
|||||||
Salaries and benefits |
204,090 |
120,784 |
83,306 |
69.0% |
|||
General and administrative expenses |
46,873 |
25,860 |
21,013 |
81.3% |
|||
Cost of services |
17,968 |
1,548 |
16,420 |
NM |
|||
Restructuring charges |
— |
4,257 |
(4,257) |
(100.0)% |
|||
Reimbursed expenses |
1,654 |
1,200 |
454 |
37.8% |
|||
Total operating expenses |
270,585 |
153,649 |
116,936 |
76.1% |
|||
Operating income |
16,608 |
8,538 |
8,070 |
94.5% |
|||
Non-operating income |
|||||||
Interest, net |
95 |
44 |
|||||
Other, net |
1,203 |
3,467 |
|||||
Net non-operating income |
1,298 |
3,511 |
|||||
Income before income taxes |
17,906 |
12,049 |
|||||
Provision for income taxes |
5,429 |
6,511 |
|||||
Net income |
12,477 |
5,538 |
|||||
Other comprehensive income (loss), net of tax |
(393) |
988 |
|||||
Comprehensive income |
$ 12,084 |
$ 6,526 |
|||||
Weighted-average common shares outstanding |
|||||||
Basic |
19,592 |
19,360 |
|||||
Diluted |
20,301 |
19,865 |
|||||
Earnings per common share |
|||||||
Basic |
$ 0.64 |
$ 0.29 |
|||||
Diluted |
$ 0.61 |
$ 0.28 |
|||||
Salaries and benefits as a % of net revenue |
71.5% |
75.0% |
|||||
General and administrative expenses as a % of net revenue |
16.4% |
16.1% |
|||||
Cost of services as a % of net revenue |
6.3% |
1.0% |
|||||
Operating margin |
5.8% |
5.3% |
Segment Information (In thousands) (Unaudited) |
|||||||||||
Three Months Ended |
|||||||||||
2021 |
2020 |
$ Change |
% |
2021 |
2020 |
||||||
Revenue |
|||||||||||
Executive Search |
|||||||||||
|
$ 168,700 |
$ 96,328 |
$ 72,372 |
75.1% |
|||||||
|
45,084 |
32,135 |
12,949 |
40.3% |
|||||||
|
29,579 |
17,857 |
11,722 |
65.6% |
|||||||
Total Executive Search |
243,363 |
146,320 |
97,043 |
66.3% |
|||||||
On-Demand Talent |
23,630 |
— |
23,630 |
NM |
|||||||
|
18,546 |
14,667 |
3,879 |
26.4% |
|||||||
Revenue before reimbursements (net revenue) |
285,539 |
160,987 |
124,552 |
77.4% |
|||||||
Reimbursements |
1,654 |
1,200 |
454 |
37.8% |
|||||||
Total revenue |
$ 287,193 |
$ 162,187 |
$ 125,006 |
77.1% |
|||||||
Operating income (loss) |
|||||||||||
Executive Search |
|||||||||||
|
$ 42,218 |
$ 21,906 |
$ 20,312 |
92.7% |
25.0% |
22.7% |
|||||
|
5,110 |
4,047 |
1,063 |
26.3% |
11.3% |
12.6% |
|||||
|
4,926 |
(171) |
5,097 |
NM |
16.7% |
(1.0)% |
|||||
Total Executive Search |
52,254 |
25,782 |
26,472 |
102.7% |
21.5% |
17.6% |
|||||
On-Demand Talent5 |
(10,306) |
— |
(10,306) |
NM |
(43.6)% |
—% |
|||||
|
(5,265) |
(6,670) |
1,405 |
21.1% |
(28.4)% |
(45.5)% |
|||||
Total segments |
36,683 |
19,112 |
17,571 |
91.9% |
12.8% |
11.9% |
|||||
Global Operations Support7 |
(20,075) |
(10,574) |
(9,501) |
(89.9)% |
(7.0)% |
(6.6)% |
|||||
Total operating income (loss) |
$ 16,608 |
$ 8,538 |
$ 8,070 |
94.5% |
5.8% |
5.3% |
1 Margin based on revenue before reimbursements (net revenue). 2 Includes restructuring charges of 3 Includes restructuring reversals of 4 Includes restructuring charges of 5 Includes a one-time earnout obligation adjustment of 6 Includes restructuring charges of 7 Includes restructuring charges of
Consolidated Statements of Comprehensive Income (Loss) (In thousands, except per share amounts) (Unaudited) |
|||||||
Year Ended |
|||||||
2021 |
2020 |
$ Change |
% Change |
||||
Revenue |
|||||||
Revenue before reimbursements (net revenue) |
$ 1,003,001 |
$ 621,615 |
$ 381,386 |
61.4% |
|||
Reimbursements |
5,473 |
7,755 |
(2,282) |
(29.4)% |
|||
Total revenue |
1,008,474 |
629,370 |
379,104 |
60.2% |
|||
Operating expenses |
|||||||
Salaries and benefits |
717,411 |
450,424 |
266,987 |
59.3% |
|||
General and administrative expenses |
130,749 |
116,982 |
13,767 |
11.8% |
|||
Cost of services |
52,785 |
4,396 |
48,389 |
NM |
|||
Impairment charges |
— |
32,970 |
(32,970) |
(100.0)% |
|||
Restructuring charges |
3,792 |
52,372 |
(48,580) |
(92.8)% |
|||
Reimbursed expenses |
5,473 |
7,755 |
(2,282) |
(29.4)% |
|||
Total operating expenses |
910,210 |
664,899 |
245,311 |
36.9% |
|||
Operating income (loss) |
98,264 |
(35,529) |
133,793 |
NM |
|||
Non-operating income |
|||||||
Interest, net |
302 |
204 |
|||||
Other, net |
7,463 |
3,927 |
|||||
Net non-operating income |
7,765 |
4,131 |
|||||
Income (loss) before income taxes |
106,029 |
(31,398) |
|||||
Provision for income taxes |
33,457 |
6,309 |
|||||
Net income (loss) |
72,572 |
(37,707) |
|||||
Other comprehensive loss, net of tax |
(1,742) |
(407) |
|||||
Comprehensive income (loss) |
$ 70,830 |
$ (38,114) |
|||||
Weighted-average common shares outstanding |
|||||||
Basic |
19,515 |
19,301 |
|||||
Diluted |
20,296 |
19,301 |
|||||
Earnings (loss) per common share |
|||||||
Basic |
$ 3.72 |
$ (1.95) |
|||||
Diluted |
$ 3.58 |
$ (1.95) |
|||||
Salaries and benefits as a % of net revenue |
71.5% |
72.5% |
|||||
General and administrative expenses as a % of net revenue |
13.0% |
18.8% |
|||||
Cost of services as a % of net revenue |
5.3% |
0.7% |
|||||
Operating margin |
9.8% |
(5.7)% |
Segment Information (In thousands) (Unaudited) |
|||||||||||
Year Ended Ended |
|||||||||||
2021 |
2020 |
$ Change |
% |
2021 |
2020 |
||||||
Revenue |
|||||||||||
Executive Search |
|||||||||||
|
$ 581,440 |
$ 361,416 |
$ 220,024 |
60.9% |
|||||||
|
170,312 |
124,243 |
46,069 |
37.1% |
|||||||
|
117,008 |
79,511 |
37,497 |
47.2% |
|||||||
Total Executive Search |
868,760 |
565,170 |
303,590 |
53.7% |
|||||||
On-Demand Talent |
66,636 |
— |
66,636 |
NM |
|||||||
|
67,605 |
56,445 |
11,160 |
19.8% |
|||||||
Revenue before reimbursements (net revenue) |
1,003,001 |
621,615 |
381,386 |
61.4% |
|||||||
Reimbursements |
5,473 |
7,755 |
(2,282) |
(29.4)% |
|||||||
Total revenue |
|
$ 629,370 |
$ 379,104 |
60.2% |
|||||||
Operating income (loss) |
|||||||||||
Executive Search |
|||||||||||
|
$ 142,040 |
$ 62,806 |
$ 79,234 |
126.2% |
24.4% |
17.4% |
|||||
|
18,424 |
(22,827) |
41,251 |
180.7% |
10.8% |
(18.4)% |
|||||
|
18,167 |
(6,724) |
24,891 |
NM |
15.5% |
(8.5)% |
|||||
Total Executive Search |
178,631 |
33,255 |
145,376 |
NM |
20.6% |
5.9% |
|||||
On-Demand Talent5 |
(9,272) |
— |
(9,272) |
NM |
(13.9)% |
—% |
|||||
|
(16,162) |
(28,369) |
12,207 |
43.0% |
(23.9)% |
(50.3)% |
|||||
Total segments |
153,197 |
4,886 |
148,311 |
NM |
15.3% |
0.8% |
|||||
Global Operations Support7 |
(54,933) |
(40,415) |
(14,518) |
(35.9)% |
(5.5)% |
(6.5)% |
|||||
Total operating income (loss) |
$ 98,264 |
$ (35,529) |
$ 133,793 |
NM |
9.8% |
(5.7)% |
1 Margin based on revenue before reimbursements (net revenue). |
2 Includes restructuring charges of |
3 Includes a restructuring reversal of |
4 Includes a restructuring reversal of |
5 Includes a one-time earnout obligation adjustment of |
6 Includes restructuring charges of |
7 Includes a restructuring reversal of |
Reconciliation of Operating Income (Loss) and Adjusted Operating Income (Non-GAAP) (In thousands) (Unaudited) |
|||||||
Three Months Ended |
Year Ended |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Revenue before reimbursements (net revenue) |
$ 285,539 |
$ 160,987 |
$ 1,003,001 |
$ 621,615 |
|||
Operating income (loss) |
16,608 |
8,538 |
98,264 |
(35,529) |
|||
Adjustments |
|||||||
Earnout obligation fair value adjustments1 |
11,368 |
— |
11,368 |
— |
|||
Impairment charges2 |
— |
— |
— |
32,970 |
|||
Restructuring charges3 |
— |
4,257 |
3,792 |
52,372 |
|||
Total adjustments |
11,368 |
4,257 |
15,160 |
85,342 |
|||
Adjusted operating income |
$ 27,976 |
$ 12,795 |
$ 113,424 |
$ 49,813 |
|||
Operating margin |
5.8% |
5.3% |
9.8% |
(5.7)% |
|||
Adjusted operating margin |
9.8% |
7.9% |
11.3% |
8.0% |
1 The Company incurred a one-time earnout obligation adjustment of |
2 The Company incurred goodwill impairment charges of approximately |
3 The Company incurred restructuring charges of |
Reconciliation of Net Income (Loss) and Adjusted Net Income (Non-GAAP) (In thousands) (Unaudited) |
|||||||
Three Months Ended |
Year Ended |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Net income (loss) |
$ 12,477 |
$ 5,538 |
$ 72,572 |
$ (37,707) |
|||
Adjustments |
|||||||
Earnout obligation fair value adjustments1 |
8,282 |
— |
8,282 |
— |
|||
Impairment charges, net of tax2 |
— |
— |
— |
32,970 |
|||
Restructuring charges, net of tax3 |
— |
6,093 |
2,642 |
39,956 |
|||
Total adjustments |
8,282 |
6,093 |
10,924 |
72,926 |
|||
Adjusted net income |
$ 20,759 |
$ 11,631 |
$ 83,496 |
$ 35,219 |
|||
Weighted-average common shares outstanding |
|||||||
Basic |
19,592 |
19,360 |
19,515 |
19,301 |
|||
Diluted |
20,301 |
19,865 |
20,296 |
19,893 |
|||
Earnings (loss) per common share |
|||||||
Basic |
$ 0.64 |
$ 0.29 |
$ 3.72 |
$ (1.95) |
|||
Diluted |
$ 0.61 |
$ 0.28 |
$ 3.58 |
$ (1.95) |
|||
Adjusted earnings per common share |
|||||||
Basic |
$ 1.06 |
$ 0.60 |
$ 4.28 |
$ 1.82 |
|||
Diluted |
$ 1.02 |
$ 0.59 |
$ 4.11 |
$ 1.77 |
1 The Company incurred a one-time earnout obligation adjustment of |
2 The Company incurred goodwill impairment charges of approximately |
3 The Company incurred restructuring charges of |
Consolidated Balance Sheets (In thousands) (Unaudited) |
|||
|
|
||
Current assets |
|||
Cash and cash equivalents |
$ 545,225 |
$ 316,473 |
|
Marketable securities |
— |
19,999 |
|
Accounts receivable, net |
133,750 |
88,123 |
|
Prepaid expenses |
21,754 |
18,956 |
|
Other current assets |
41,449 |
23,279 |
|
Income taxes recoverable |
3,210 |
5,856 |
|
Total current assets |
745,388 |
472,686 |
|
Non-current assets |
|||
Property and equipment, net |
27,085 |
23,492 |
|
Operating lease right-of-use assets |
72,320 |
92,671 |
|
Assets designated for retirement and pension plans |
12,715 |
14,425 |
|
Investments |
36,051 |
31,369 |
|
Other non-current assets |
23,377 |
24,439 |
|
|
138,524 |
91,643 |
|
Other intangible assets, net |
9,169 |
1,129 |
|
Deferred income taxes |
42,169 |
35,958 |
|
Total non-current assets |
361,410 |
315,126 |
|
Total assets |
$ 1,106,798 |
$ 787,812 |
|
Current liabilities |
|||
Accounts payable |
$ 20,374 |
$ 8,799 |
|
Accrued salaries and benefits |
409,026 |
217,908 |
|
Deferred revenue |
51,404 |
38,050 |
|
Operating lease liabilities |
19,332 |
28,984 |
|
Other current liabilities |
24,554 |
23,311 |
|
Income taxes payable |
10,004 |
1,186 |
|
Total current liabilities |
534,694 |
318,238 |
|
Non-current liabilities |
|||
Accrued salaries and benefits |
73,779 |
56,925 |
|
Retirement and pension plans |
55,593 |
53,496 |
|
Operating lease liabilities |
65,625 |
86,816 |
|
Other non-current liabilities |
41,087 |
4,735 |
|
Total non-current liabilities |
236,084 |
201,972 |
|
Total liabilities |
770,778 |
520,210 |
|
Stockholders' equity |
336,020 |
267,602 |
|
Total liabilities and stockholders' equity |
$ 1,106,798 |
$ 787,812 |
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||
Three Months Ended |
||||
2021 |
2020 |
|||
Cash flows - operating activities |
||||
Net income |
$ 12,477 |
$ 5,538 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
Depreciation and amortization |
2,984 |
6,018 |
||
Deferred income taxes |
(5,995) |
(2,380) |
||
Stock-based compensation expense |
4,088 |
3,053 |
||
Accretion expense related to earnout payments |
123 |
— |
||
Gain on marketable securities |
— |
(10) |
||
Loss (gain) on disposal of property and equipment |
8 |
(2) |
||
Impairment charges |
— |
— |
||
Changes in assets and liabilities, net of effects of acquisition: |
||||
Accounts receivable |
48,058 |
32,260 |
||
Accounts payable |
(3,263) |
(2,358) |
||
Accrued expenses |
140,772 |
51,263 |
||
Restructuring accrual |
(37) |
(3,810) |
||
Deferred revenue |
6,330 |
204 |
||
Income taxes recoverable and payable, net |
(3,560) |
7,444 |
||
Retirement and pension plan assets and liabilities |
(298) |
490 |
||
Prepaid expenses |
4,948 |
2,871 |
||
Other assets and liabilities, net |
(10) |
(4,323) |
||
Net cash provided by operating activities |
206,625 |
96,258 |
||
Cash flows - investing activities |
||||
Acquisition of business, net of cash acquired |
(1,549) |
— |
||
Capital expenditures |
(2,338) |
(201) |
||
Purchases of marketable securities and investments |
(326) |
(236) |
||
Proceeds from sales of marketable securities and investments |
169 |
47,219 |
||
Net cash provided by (used in) investing activities |
(4,044) |
46,782 |
||
Cash flows - financing activities |
||||
Cash dividends paid |
(3,450) |
(3,044) |
||
Payment of employee tax withholdings on equity transactions |
(50) |
— |
||
Net cash used in financing activities |
(3,500) |
(3,044) |
||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
(2,148) |
5,916 |
||
Net increase in cash, cash equivalents and restricted cash |
196,933 |
145,912 |
||
Cash, cash equivalents and restricted cash at beginning of period |
348,326 |
170,577 |
||
Cash, cash equivalents and restricted cash at end of period |
$ 545,259 |
$ 316,489 |
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||
Year Ended |
||||
2021 |
2020 |
|||
Cash flows - operating activities |
||||
Net income (loss) |
$ 72,572 |
$ (37,707) |
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||
Depreciation and amortization |
19,560 |
26,656 |
||
Deferred income taxes |
(7,481) |
(1,680) |
||
Stock-based compensation expense |
12,760 |
10,199 |
||
Accretion expense related to earnout payments |
486 |
— |
||
Gain on marketable securities |
(1) |
(154) |
||
Loss on disposal of property and equipment |
135 |
287 |
||
Impairment charges |
— |
32,970 |
||
Changes in assets and liabilities, net of effects of acquisition: |
||||
Accounts receivable |
(36,819) |
22,644 |
||
Accounts payable |
(332) |
451 |
||
Accrued expenses |
230,177 |
(26,513) |
||
Restructuring accrual |
(5,061) |
2,479 |
||
Deferred revenue |
12,783 |
(3,688) |
||
Income taxes recoverable and payable, net |
11,377 |
(4,016) |
||
Retirement and pension plan assets and liabilities |
1,145 |
1,794 |
||
Prepaid expenses |
(2,776) |
1,642 |
||
Other assets and liabilities, net |
(37,124) |
(2,011) |
||
Net cash provided by operating activities |
271,401 |
23,353 |
||
Cash flows - investing activities |
||||
Acquisition of businesses, net of cash acquired |
(33,518) |
— |
||
Capital expenditures |
(6,240) |
(7,322) |
||
Purchases of marketable securities and investments |
(2,323) |
(118,904) |
||
Proceeds from sales of marketable securities and investments |
20,822 |
158,852 |
||
Net cash provided by (used in) investing activities |
(21,259) |
32,626 |
||
Cash flows - financing activities |
||||
Proceeds from line of credit |
— |
100,000 |
||
Payments on line of credit |
— |
(100,000) |
||
Cash dividends paid |
(12,377) |
(12,063) |
||
Payment of employee tax withholdings on equity transactions |
(3,140) |
(1,550) |
||
Acquisition earnout payments |
— |
(2,789) |
||
Net cash used in financing activities |
(15,517) |
(16,402) |
||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
(5,855) |
5,193 |
||
Net increase in cash, cash equivalents and restricted cash |
228,770 |
44,770 |
||
Cash, cash equivalents and restricted cash at beginning of period |
316,489 |
271,719 |
||
Cash, cash equivalents and restricted cash at end of period |
$ 545,259 |
$ 316,489 |
Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA (Non-GAAP) (In thousands) (Unaudited) |
|||||||
Three Months Ended |
Year Ended |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Revenue before reimbursements (net revenue) |
$ 285,539 |
$ 160,987 |
$ 1,003,001 |
$ 621,615 |
|||
Net income (loss) |
12,477 |
5,538 |
72,572 |
(37,707) |
|||
Interest, net |
(95) |
(44) |
(302) |
(204) |
|||
Other, net |
(1,203) |
(3,467) |
(7,463) |
(3,927) |
|||
Provision for (benefit from) income taxes |
5,429 |
6,511 |
33,457 |
6,309 |
|||
Operating income (loss) |
16,608 |
8,538 |
98,264 |
(35,529) |
|||
Adjustments |
|||||||
Stock-based compensation expense |
4,014 |
3,038 |
12,325 |
9,679 |
|||
Depreciation |
1,839 |
1,906 |
7,150 |
8,100 |
|||
Intangible amortization |
1,146 |
153 |
2,898 |
738 |
|||
Earnout accretion |
123 |
— |
486 |
— |
|||
Earnout obligation fair value adjustments |
11,368 |
— |
11,368 |
— |
|||
Acquisition contingent consideration |
575 |
460 |
1,973 |
1,942 |
|||
Restructuring charges |
— |
4,257 |
3,792 |
52,372 |
|||
Impairment charges |
— |
— |
— |
32,970 |
|||
Deferred compensation plan |
1,108 |
3,388 |
3,057 |
4,495 |
|||
Total adjustments |
20,173 |
13,202 |
43,049 |
110,296 |
|||
Adjusted EBITDA |
$ 36,781 |
$ 21,740 |
$ 141,313 |
$ 74,767 |
|||
Adjusted EBITDA margin |
12.9% |
13.5% |
14.1% |
12.0% |
View original content:https://www.prnewswire.com/news-releases/heidrick--struggles-achieves-over-1-billion-in-annual-net-revenue-attains-record-profitability-301492010.html
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