Korn Ferry Pronounces Third Quarter Fiscal 2021 Outcomes of Operations

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FY’21 Third Quarter Highlights

Payment income of $475.four million in Q3 FY’21, a sequential enhance of 9% from Q2 FY’21.

Document web revenue attributable to Korn Ferry of $51.three million in Q3 FY’21.

Working revenue and Adjusted EBITDA had been each all-time highs at $65.2 million (working margin of 13.7%) and $96.7 million (Adjusted EBITDA margin of 20.three%), respectively.

Highest diluted earnings per share and adjusted diluted earnings per share so far at $zero.94 and $zero.95, respectively, for Q3 FY’21.

Repurchased zero.2 million shares or $7.6 million of inventory through the quarter in line with disciplined capital allocation method.

Declared a quarterly dividend of $zero.10 per share on February 21, 2021 payable on April 15, 2021 to stockholders of file on March 10, 2021.

Revenue and earnings steering being reinstated beginning with This autumn FY’21

Korn Ferry (NYSE: KFY), a world organizational consulting agency, at this time introduced third quarter payment income of $475.four million. Third quarter diluted earnings per share was $zero.94 and adjusted diluted earnings per share was $zero.95, each are all-time highs. Adjusted diluted earnings per share for the third quarter excludes an mixture of $zero.6 million, or $zero.01 per share, of restructuring expenses web of tax, as a result of coronavirus pandemic (“COVID-19”).

“Our efficiency for the fiscal third quarter demonstrates the resilience of our enterprise and continued extension of our model, with sturdy sequential payment income progress of 9% and our earnings and profitability reaching file highs,” stated Gary D. Burnison, CEO, Korn Ferry. “I’m extremely happy with the tireless dedication that every one our Korn Ferry colleagues have proven in serving to our purchasers re-imagine their organizational constructions, recruit and retain expertise and develop their folks within the face of extraordinary challenges.”

“In a post-pandemic world, there’ll proceed to be heightened demand for transformational consulting expertise and experience,” Burnison continued. “The steps we’ve got taken to evolve our enterprise right into a extra environment friendly, worthwhile, growth-oriented group have positioned Korn Ferry to supply our purchasers with unparalleled experience, information, and innovation help. With folks on the middle of our technique, we’re attaining our progress goals, delivering long-term worth creation to shareholders and establishing Korn Ferry because the preeminent international organizational consultancy.”

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Chosen Monetary Outcomes
( in tens of millions, besides per share quantities) (a)

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Payment income

$

475.four

$

515.three

$

1,254.9

$

1,492.three

Whole income

$

477.9

$

528.zero

$

1,262.6

$

1,528.four

Working revenue

$

65.2

$

31.6

$

69.5

$

153.eight

Working margin

13.7

%

6.1

%

5.5

%

10.three

%

Web revenue attributable to Korn Ferry

$

51.three

$

20.zero

$

48.three

$

105.7

Primary earnings per share

$

zero.95

$

zero.37

$

zero.89

$

1.92

Diluted earnings per share

$

zero.94

$

zero.36

$

zero.88

$

1.90

EBITDA Outcomes (b):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

EBITDA

$

95.eight

$

51.5

$

142.zero

$

202.2

EBITDA margin

20.2

%

10.zero

%

11.three

%

13.5

%

Adjusted Outcomes (c):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Adjusted EBITDA (b)

$

96.7

$

78.1

$

173.four

$

231.four

Adjusted EBITDA margin (b)

20.three

%

15.2

%

13.eight

%

15.5

%

Adjusted web revenue attributable to Korn Ferry

$

51.9

$

41.zero

$

71.1

$

128.7

Adjusted primary earnings per share

$

zero.96

$

zero.75

$

1.31

$

2.33

Adjusted diluted earnings per share

$

zero.95

$

zero.75

$

1.30

$

2.31

___________

(a)

Numbers could not complete attributable to rounding.

(b)

EBITDA refers to earnings earlier than curiosity, taxes, depreciation and amortization. Adjusted EBITDA additional adjusts EBITDA to exclude integration/acquisition prices, web restructuring expenses and separation prices. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP monetary measures (see hooked up reconciliations).

(c)

Adjusted outcomes are non-GAAP monetary measures that alter for the next, as relevant (see hooked up reconciliations):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Integration/acquisition prices

$

$

6.7

$

zero.7

$

9.three

Restructuring expenses, web

$

zero.eight

$

18.1

$

30.7

$

18.1

Separation prices

$

$

1.eight

$

$

1.eight

Debt refinancing prices

$

$

zero.eight

$

$

zero.eight

Payment income was $475.four million in Q3 FY’21, a lower of eight% (down 9% on a relentless foreign money foundation) in comparison with Q3 FY’20. Whereas RPO and Skilled Search noticed a year-over-year enhance of just about four%, Digital and Govt Search declined year-over-year as these companies continued on the trail to full restoration from the influence of COVID-19 on economies around the globe.

Working margin was 13.7% in Q3 FY’21 in comparison with 6.1% within the year-ago quarter. Adjusted EBITDA margin was 20.three%, in comparison with 15.2% within the year-ago quarter. Web revenue attributable to Korn Ferry was $51.three million in Q3 FY’21 in comparison with $20.zero million in Q3 FY’20.

The year-over-year enchancment in every of the above measures of profitability was as a result of price saving actions the Firm took in response to the influence of COVID-19 in addition to the truth that the Firm recorded $18 million in restructuring expenses in Q3 FY’20 in reference to the acquisitions of Miller Heiman Group, Obtain Discussion board and Technique Execution (collectively, the “acquired corporations”). These optimistic components had been partially offset by the decline in revenues described above.

Outcomes by Section
Chosen Consulting Knowledge
( in tens of millions) (a)

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Payment income

$

136.three

$

140.5

$

362.three

$

422.1

Whole income

$

136.6

$

144.three

$

363.2

$

433.eight

Working revenue

$

22.2

$

2.7

$

25.9

$

24.three

Working margin

16.three

%

1.9

%

7.1

%

5.eight

%

Ending variety of consultants and execution workers (b)

1,528

1,792

1,528

1,792

Hours labored in hundreds (c)

372

428

1,137

1,344

Common billed price (d)

$

367

$

328

$

319

$

314

EBITDA Outcomes (e):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

EBITDA

$

27.2

$

7.6

$

40.1

$

38.9

EBITDA margin

19.9

%

5.four

%

11.1

%

9.2

%

Adjusted Outcomes (f):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Adjusted EBITDA (e)

$

27.5

$

18.7

$

54.three

$

50.zero

Adjusted EBITDA margin (e)

20.2

%

13.three

%

15.zero

%

11.eight

%

___________

(a)

Numbers could not complete attributable to rounding.

(b)

Represents variety of workers originating, delivering and executing consulting companies.

(c)

The variety of hours labored by marketing consultant and execution workers through the interval.

(d)

The quantity of payment income divided by the variety of hours labored by consultants and execution workers.

(e)

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP monetary measures (see hooked up reconciliations).

(f)

Adjusted outcomes are non-GAAP monetary measures that alter for the next (see hooked up reconciliations):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Restructuring expenses, web

$

zero.three

$

11.1

$

14.2

$

11.1

Payment income was $136.three million in Q3 FY’21 in comparison with $140.5 million in Q3 FY’20, a lower of $four.2 million or three% (down four% on a relentless foreign money foundation). Whereas COVID-19 has had an influence on Consulting payment income when in comparison with the year-ago quarter, the variety of our consulting companies and our means to adapt to delivering the companies in a digital world has led to a rise in payment income of 37% over the previous two fiscal quarters.

Working revenue was $22.2 million in Q3 FY’21 with an working margin of 16.three% in comparison with working revenue of $2.7 million and an working margin of 1.9% within the year-ago quarter. This modification resulted from a lower in web restructuring expenses, a lower in compensation and advantages expense pushed by a discount in headcount and reduces in each basic and administrative bills and value of companies expense, all of which resulted from the price saving initiatives that had been put in place. These expense reductions had been partially offset by the decline in payment income as outlined above.

Adjusted EBITDA was $27.5 million in Q3 FY’21 with an Adjusted EBITDA margin of 20.2% in comparison with $18.7 million and 13.three%, respectively, within the year-ago quarter. The rise in Adjusted EBITDA was as a result of similar components impacting working revenue outlined above aside from web restructuring expenses.

Chosen Digital Knowledge
( in tens of millions) (a)

Digital is an built-in platform that provides purchasers direct entry to folks and organizational information, insights, analytics, and digital belongings that when used collectively, give purchasers a standard language for all expertise issues.

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Payment income

$

75.eight

$

99.four

$

206.eight

$

223.1

Whole income

$

76.zero

$

100.7

$

207.zero

$

224.four

Working revenue

$

19.2

$

eight.5

$

32.four

$

41.zero

Working margin

25.four

%

eight.5

%

15.7

%

18.four

%

Ending variety of consultants

302

464

302

464

Subscription & License payment income

$

22.6

$

21.three

$

66.three

$

52.7

EBITDA Outcomes (b):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

EBITDA

$

27.1

$

14.5

$

54.7

$

54.7

EBITDA margin

35.eight

%

14.6

%

26.four

%

24.5

%

Adjusted Outcomes (c):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Adjusted EBITDA (b)

$

27.1

$

25.9

$

58.2

$

66.1

35.eight

%

26.zero

%

28.1

%

29.6

%

___________

(a)

Numbers could not complete attributable to rounding.

(b)

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP monetary measures (see hooked up reconciliations).

(c)

Adjusted outcomes are non-GAAP monetary measures that alter for the next (see hooked up reconciliations):

Third Quarter

12 months to Date

FY’21

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FY’20

FY’21

FY’20

Integration/acquisition prices

$

$

four.three

$

zero.6

$

four.three

Restructuring expenses, web

$

$

7.zero

$

2.9

$

7.zero

Payment income was $75.eight million in Q3 FY’21 in comparison with $99.four million in Q3 FY’20, a lower of $23.6 million or 24% (down 25% on a relentless foreign money foundation). On account of COVID-19 and the associated contraction in financial exercise, the Firm skilled a decline in demand for pay information growth services and products. As economies around the globe get better and corporations pivot from in individual to digital supply, the Firm expects demand for these services and products to return to pre-pandemic ranges.

Working revenue was $19.2 million in Q3 FY’21 with an working margin of 25.four% in comparison with working revenue of $eight.5 million and an working margin of eight.5% within the year-ago quarter. Contributing to the rise had been decreases in compensation and advantages expense, basic and administrative bills, web restructuring expenses, price of companies expense and integration/acquisition prices referring to the acquired corporations, partially offset by a lower in payment income as outlined above.

Adjusted EBITDA was $27.1 million in Q3 FY’21 with an Adjusted EBITDA margin of 35.eight% in comparison with $25.9 million and 26.zero%, respectively, within the year-ago quarter. The rise in Adjusted EBITDA was as a result of similar components impacting working revenue described above aside from restructuring expenses and integration/acquisition prices.

Chosen Govt Search Knowledge
( in tens of millions) (a)

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Payment income

$

168.1

$

183.6

$

436.three

$

564.6

Whole income

$

168.5

$

188.zero

$

438.zero

$

578.zero

Working revenue

$

26.9

$

32.7

$

40.2

$

119.6

Working margin

16.zero

%

17.eight

%

9.2

%

21.2

%

Ending variety of consultants

522

582

522

582

Common variety of consultants

517

583

539

573

Engagements billed

three,260

three,767

6,464

eight,zero77

New engagements (b)

1,301

1,565

three,747

four,835

EBITDA Outcomes (c):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

EBITDA

$

41.three

$

38.9

$

67.6

$

131.eight

EBITDA margin

24.6

%

21.2

%

15.5

%

23.three

%

Adjusted Outcomes (d):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Adjusted EBITDA (c)

$

41.7

$

40.7

$

78.zero

$

133.6

Adjusted EBITDA margin (c)

24.eight

%

22.1

%

17.9

%

23.7

%

________

(a)

Numbers could not complete attributable to rounding.

(b)

Represents new engagements opened within the respective interval.

(c)

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP monetary measures (see hooked up reconciliations).

(d)

Adjusted outcomes are non-GAAP monetary measures that alter for the next (see hooked up reconciliations):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Restructuring expenses, web

$

zero.four

$

$

10.four

$

Separation prices

$

$

1.eight

$

$

1.eight

Payment income was $168.1 million and $183.6 million in Q3 FY’21 and Q3 FY’20, respectively, a year-over-year lower of $15.5 million or eight% (down 10% on a relentless foreign money foundation). The lower in payment income was attributable to a decline in payment income in all areas, besides North America which was basically flat, as a result of lower in demand for our services and products due to the worldwide financial downturn related to COVID-19.

Working revenue was $26.9 million in Q3 FY’21 in comparison with working revenue of $32.7 million in Q3 FY’20. Working margin was 16.zero% in Q3 FY’21 in comparison with 17.eight% within the year-ago quarter. The change was primarily attributable to a lower in payment income in Q3 FY’21 as in comparison with the year-ago quarter, partially offset by a lower in compensation and advantages expense pushed by a discount in headcount and a decline normally and administrative bills, all of which resulted from the price saving initiatives that had been put in place.

Adjusted EBITDA was $41.7 million in Q3 FY’21 with an Adjusted EBITDA margin of 24.eight% in comparison with $40.7 million and 22.1%, respectively, within the year-ago quarter. The rise in Adjusted EBITDA was as a result of similar components impacting working revenue described above and a rise in different revenue, web in comparison with year-ago quarter.

Chosen RPO and Skilled Search Knowledge
( in tens of millions) (a)

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Payment income

$

95.2

$

91.9

$

249.5

$

282.four

Whole income

$

96.eight

$

95.zero

$

254.three

$

292.2

Working revenue

$

18.four

$

14.1

$

33.zero

$

44.three

Working margin

19.three

%

15.four

%

13.2

%

15.7

%

Engagements billed (b)

1,430

1,375

2,659

three,zero30

New engagements (c)

867

711

2,088

2,171

EBITDA Outcomes (d):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

EBITDA

$

19.5

$

15.2

$

36.three

$

47.5

EBITDA margin

20.5

%

16.6

%

14.5

%

16.eight

%

Adjusted Outcomes (e):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Adjusted EBITDA (d)

$

19.6

$

15.2

$

39.5

$

47.5

Adjusted EBITDA margin (d)

20.6

%

16.6

%

15.eight

%

16.eight

%

___________

(a)

Numbers could not complete attributable to rounding.

(b)

Represents skilled search engagements billed.

(c)

Represents new skilled search engagements opened within the respective interval.

(d)

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP monetary measures (see hooked up reconciliations).

(e)

Adjusted outcomes are non-GAAP monetary measures that alter for the next (see hooked up reconciliations):

Third Quarter

12 months to Date

FY’21

FY’20

FY’21

FY’20

Restructuring expenses, web

$

zero.1

$

$

three.2

$

Payment income was $95.2 million in Q3 FY’21, a rise of $three.three million or four% (1% enhance on a relentless foreign money foundation), in comparison with the year-ago quarter. The upper payment income was pushed by a rise in recruitment course of outsourcing (“RPO”) payment income of $four.zero million, partially offset by a small lower in Skilled Search of $zero.7 million as a result of worldwide financial downturn related to COVID-19. For the quarter, RPO payment income was up 7% (5% at fixed foreign money) whereas skilled search was down 2% (four% on a relentless foreign money), each in comparison with the year-ago quarter.

Working revenue was $18.four million in Q3 FY’21, a rise of $four.three million in comparison with working revenue of $14.1 million in Q3 FY’20. Working margin was 19.three% within the present quarter in comparison with 15.four% within the year-ago quarter. Adjusted EBITDA was $19.6 million in Q3 FY’21 with an Adjusted EBITDA margin of 20.6% in Q3 FY’21 in comparison with $15.2 million and 16.6%, respectively, within the year-ago quarter. The rise in working revenue and Adjusted EBITDA was as a result of increased payment income mentioned above and decrease basic and administrative bills, partially offset by a rise in compensation and advantages expense.

Outlook

Assuming no new main pandemic lockdowns, worldwide financial situations, monetary markets and international alternate charges stay regular, on a consolidated foundation:

Earnings Convention Name Webcast

The earnings convention name will likely be held at this time at 12:00 PM (EST) and hosted by CEO Gary Burnison, CFO Robert Rozek and SVP Finance Gregg Kvochak. The convention name will likely be webcast and accessible on-line at ir.kornferry.com. We can even publish to this part of our web site earnings slides, which can accompany our webcast, and different vital info, and encourage you to assessment the knowledge that we make accessible on our web site.

About Korn Ferry

Korn Ferry is a world organizational consulting agency. We assist purchasers synchronize technique and expertise to drive superior efficiency. We work with organizations to design their constructions, roles, and obligations. We assist them rent the appropriate folks to convey their technique to life. And we advise them on the right way to reward, develop, and encourage their folks. Go to kornferry.com for extra info.

Ahead-Trying Statements

Statements on this press launch and our convention name that relate to our outlook, projections, objectives, methods, future plans and expectations, and different statements of future occasions or situations are forward-looking statements that contain a lot of dangers and uncertainties. Phrases resembling “believes”, “expects”, “anticipates”, “objectives”, “estimates”, “steering”, “could”, “ought to”, “may”, “will” or “doubtless”, and variations of such phrases and related expressions are meant to establish such forward-looking statements. Statements that check with or are based mostly on estimates, forecasts, projections, unsure occasions or assumptions, together with statements referring to anticipated demand for our services and products, the anticipated advantages of the acquisition of the acquired corporations (as outlined beneath), the timing and anticipated advantages of our restructuring plan, the magnitude and period of the influence of the COVID-19 outbreak on our enterprise, workers, prospects and our means to supply companies in affected areas, and the potential alternatives for our enterprise on account of worldwide adjustments in how corporations conduct enterprise on account of COVID-19. Readers are cautioned to not place undue reliance on such statements. Such statements are based mostly on present expectations; precise ends in future durations could differ materially from these presently anticipated or desired due to a lot of dangers and uncertainties which might be past the management of Korn Ferry. The potential dangers and uncertainties embrace these referring to the magnitude and period of the destructive influence of the COVID-19 outbreak on our enterprise, workers, prospects and our means to supply companies in affected areas, international and native political or financial developments in or affecting nations the place we’ve got operations, competitors, adjustments in demand for our companies on account of automation, the dependence on and prices of attracting and retaining certified and skilled consultants, our means to take care of relationships with prospects and suppliers and retain key workers, sustaining our model title repute, potential authorized legal responsibility and regulatory developments, the portability of consumer relationships, consolidation of the industries we serve, foreign money fluctuations in our worldwide operations, dangers associated to progress, alignment of our price construction, restrictions imposed by off-limits agreements, reliance on info processing programs, cyber security vulnerabilities, adjustments to information security, information privateness and information safety legal guidelines, restricted safety of our mental property, our means to boost and develop new know-how, our means to develop new services and products, the utilization and billing charges of our consultants, dependence on third events for the execution of crucial features, our means to efficiently get better from a catastrophe or different enterprise continuity issues, adjustments in our accounting estimates/assumptions, technical steering referring to the Tax Act, treaties, or laws on our enterprise and our firm, impairment of goodwill and different intangible belongings, deferred tax belongings that we could not be capable of use, our indebtedness, the phase-out of the London Interbank Provided Price, enlargement of social media platforms, seasonality, means to impact acquisition and combine just lately acquired corporations, together with these of Miller Heiman Group, AchieveForum, and Technique Execution (collectively, the “acquired corporations”); the flexibility to acknowledge the anticipated advantages of the acquisition of the acquired corporations; the prices associated to the acquisition of the acquired corporations and employment legal responsibility danger. For an in depth description of dangers and uncertainties that would trigger variations, please check with Korn Ferry’s periodic filings with the Securities and Change Fee. Korn Ferry disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

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Use of Non-GAAP Monetary Measures

This press launch incorporates monetary info calculated apart from in accordance with U.S. Usually Accepted Accounting Ideas (“GAAP”). Particularly, it contains:

Adjusted web revenue attributable to Korn Ferry, adjusted to exclude integration/acquisition prices, restructuring expenses, separation prices and debt refinancing prices web of revenue tax impact;

Adjusted primary and diluted earnings per share, adjusted to exclude integration/acquisition prices, restructuring expenses, separation prices and debt refinancing prices web of revenue tax impact;

Fixed foreign money (calculated utilizing a quarterly common) percentages that characterize the share change that will have resulted had alternate charges within the prior interval been the identical as these in impact within the present interval;

EBITDA, or earnings earlier than curiosity, taxes, depreciation and amortization and EBITDA margin; and

Adjusted EBITDA, which is EBITDA additional adjusted to exclude integration/acquisition prices, restructuring expenses and separations prices, and Adjusted EBITDA margin.

This non-GAAP disclosure has limitations as an analytical instrument, shouldn’t be considered as an alternative to monetary info decided in accordance with GAAP, and shouldn’t be thought-about in isolation or as an alternative to evaluation of the Firm’s outcomes as reported beneath GAAP, neither is it essentially corresponding to non-GAAP efficiency measures that could be introduced by different corporations.

Administration believes the presentation of non-GAAP monetary measures on this press launch gives significant supplemental info concerning Korn Ferry’s efficiency by excluding sure expenses that will not be indicative of Korn Ferry’s ongoing working outcomes. These non-GAAP monetary measures are efficiency measures and are usually not indicative of the liquidity of Korn Ferry. These expenses, that are described within the footnotes within the hooked up reconciliations, characterize 1) prices we incurred to accumulate and combine a portion of our Digital enterprise, 2) expenses we incurred to restructure the Firm on account of COVID-19 and as a result of acquisition of the acquired corporations, three) separation prices and four) debt refinancing prices. Using non-GAAP monetary measures facilitates comparisons to Korn Ferry’s historic efficiency. Korn Ferry contains non-GAAP monetary measures as a result of administration believes they’re helpful to buyers in permitting for better transparency with respect to supplemental info utilized by administration in its analysis of Korn Ferry’s ongoing operations and monetary and operational decision-making. Adjusted web revenue attributable to Korn Ferry, adjusted primary and diluted earnings per share and Adjusted EBITDA, exclude sure expenses that administration doesn’t contemplate on-going in nature and permits administration and buyers to make extra significant period-to-period comparisons of the Firm’s working outcomes. Administration additional believes that EBITDA is helpful to buyers as a result of it’s incessantly utilized by buyers and different events to measure working efficiency amongst corporations with completely different capital constructions, efficient tax charges and tax attributes and capitalized asset values, all of which may differ considerably from firm to firm. Within the case of fixed foreign money percentages, administration believes the presentation of such info gives helpful supplemental info concerning Korn Ferry’s efficiency as excluding the influence of alternate price adjustments on Korn Ferry’s monetary efficiency permits buyers to make extra significant period-to-period comparisons of the Firm’s working outcomes, to raised establish working developments that will in any other case be masked or distorted by alternate price adjustments and to carry out associated development evaluation, and gives a better diploma of transparency of knowledge utilized by administration in its analysis of Korn Ferry’s ongoing operations and monetary and operational decision-making.

[Tables attached]

KORN FERRY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in hundreds, besides per share quantities)

Three Months Ended

9 Months Ended

January 31,

January 31,

2021

2020

2021

2020

(unaudited)

Payment income

$

475,360

$

515,325

$

1,254,896

$

1,492,263

Reimbursed out-of-pocket engagement bills

2,520

12,654

7,656

36,zero91

Whole income

477,880

527,979

1,262,552

1,528,354

Compensation and advantages

326,333

348,597

917,530

1,zero14,475

Basic and administrative bills

47,271

71,355

140,836

199,171

Reimbursed bills

2,520

12,654

7,656

36,zero91

Price of companies

20,zero28

30,822

50,198

66,371

Depreciation and amortization

15,735

14,863

46,068

40,355

Restructuring expenses, web

838

18,093

30,732

18,093

Whole working bills

412,725

496,384

1,193,zero20

1,374,556

Working revenue

65,155

31,595

69,532

153,798

Different revenue, web

14,935

5,055

26,374

eight,zero14

Curiosity expense, web

(7,298

)

(6,919

)

(21,686

)

(15,186

)

Earnings earlier than provision for revenue taxes

72,792

29,731

74,220

146,626

Earnings tax provision

21,204

eight,775

25,409

38,988

Web revenue

51,588

20,956

48,811

107,638

Web revenue attributable to noncontrolling curiosity

(269

)

(963

)

(547

)

(1,890

)

Web revenue attributable to Korn Ferry

$

51,319

$

19,993

$

48,264

$

105,748

Earnings per widespread share attributable to Korn Ferry:

Primary

$

zero.95

$

zero.37

$

zero.89

$

1.92

Diluted

$

zero.94

$

zero.36

$

zero.88

$

1.90

Weighted-average widespread shares excellent:

Primary

52,596

53,999

53,zero30

54,611

Diluted

53,zero13

54,264

53,396

55,006

Money dividends declared per share:

$

zero.10

$

zero.10

$

zero.30

$

zero.30

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY SEGMENT

( in hundreds)

(unaudited)

Three Months Ended January 31,

9 Months Ended January ’31,

2021

2020

% Change

2021

2020

% Change

Payment income:

Consulting

$

136,268

$

140,525

(three.zero

%)

$

362,271

$

422,103

(14.2

%)

Digital

75,791

99,389

(23.7

%)

206,807

223,zero97

(7.three

%)

Govt Search:

North America

106,zero02

106,888

(zero.eight

%)

266,485

332,428

(19.eight

%)

EMEA

35,991

44,301

(18.eight

%)

97,701

130,652

(25.2

%)

Asia Pacific

21,643

25,089

(13.7

%)

59,702

78,395

(23.eight

%)

Latin America

four,468

7,283

(38.7

%)

12,419

23,140

(46.three

%)

Whole Govt Search

168,104

183,561

(eight.four

%)

436,307

564,615

(22.7

%)

RPO and Skilled Search

95,197

91,850

three.6

%

249,511

282,448

(11.7

%)

Whole payment income

475,360

515,325

(7.eight

%)

1,254,896

1,492,263

(15.9

%)

Reimbursed out-of-pocket engagement bills

2,520

12,654

(80.1

%)

7,656

36,zero91

(78.eight

%)

Whole income

$

477,880

$

527,979

(9.5

%)

$

1,262,552

$

1,528,354

(17.four

%)

Working revenue (loss):

Margin

Margin

Margin

Margin

Consulting

$

22,175

16.three

%

$

2,663

1.9

%

$

25,869

7.1

%

$

24,272

5.eight

%

Digital

19,214

25.four

%

eight,463

eight.5

%

32,410

15.7

%

41,zero36

18.four

%

Govt Search:

North America

17,655

16.7

%

21,808

20.four

%

32,411

12.2

%

80,254

24.1

%

EMEA

three,114

eight.7

%

four,644

10.5

%

(1,596

)

(1.6

%)

18,466

14.1

%

Asia Pacific

5,844

27.zero

%

5,zero70

20.2

%

9,958

16.7

%

17,866

22.eight

%

Latin America

264

5.9

%

1,198

16.four

%

(578

)

(four.7

%)

2,999

13.zero

%

Whole Govt Search

26,877

16.zero

%

32,720

17.eight

%

40,195

9.2

%

119,585

21.2

%

RPO and Skilled Search

18,360

19.three

%

14,144

15.four

%

33,zero27

13.2

%

44,279

15.7

%

Company

(21,471

)

(26,395

)

(61,969

)

(75,374

)

Whole working revenue

$

65,155

13.7

%

$

31,595

6.1

%

$

69,532

5.5

%

$

153,798

10.three

%

KORN FERRY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in hundreds, besides per share quantities)

January 31,

April 30,

2021

2020

(unaudited)

ASSETS

Money and money equivalents

$

694,128

$

689,244

Marketable securities

45,931

41,951

Receivables due from purchasers, web of allowance for uncertain accounts of $29,174 and $23,795 at January 31, 2021 and April 30, 2020, respectively

448,448

397,165

Earnings taxes and different receivables

45,154

38,755

Unearned compensation

53,188

43,117

Pay as you go bills and different belongings

28,737

26,851

Whole present belongings

1,315,586

1,237,083

Marketable securities, non-current

157,zero23

132,134

Property and tools, web

134,226

142,728

Working lease right-of-use belongings, web

182,675

195,zero77

Money give up worth of company-owned life insurance coverage insurance policies, web of loans

162,549

146,408

Deferred revenue taxes

57,865

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55,479

Goodwill

625,549

613,943

Intangible belongings, web

97,696

111,926

Unearned compensation, non-current

104,650

79,510

Investments and different belongings

25,648

29,540

Whole belongings

$

2,863,467

$

2,743,828

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable

$

37,858

$

45,684

Earnings taxes payable

9,664

21,158

Compensation and advantages payable

301,147

280,911

Working lease legal responsibility, present

48,998

54,851

Different accrued liabilities

237,743

221,603

Whole present liabilities

635,410

624,207

Deferred compensation and different retirement plans

333,551

289,136

Working lease legal responsibility, non-current

164,656

180,766

Lengthy-term debt

394,629

394,144

Deferred tax liabilities

380

1,zero56

Different liabilities

39,847

30,828

Whole liabilities

1,568,473

1,520,137

Stockholders’ fairness

Frequent inventory: $zero.01 par worth, 150,000 shares licensed, 74,911 and 73,205 shares issued and 53,997 and 54,450 shares excellent at January 31, 2021 and April 30, 2020, respectively

576,798

585,560

Retained earnings

774,303

742,993

Collected different complete loss, web

(57,914

)

(107,172

)

Whole Korn Ferry stockholders’ fairness

1,293,187

1,221,381

Noncontrolling curiosity

1,807

2,310

Whole stockholders’ fairness

1,294,994

1,223,691

Whole liabilities and stockholders’ fairness

$

2,863,467

$

2,743,828

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

( in hundreds, besides per share quantities)

Three Months Ended

9 Months Ended

January 31,

January 31,

2021

2020

2021

2020

(unaudited)

Web revenue attributable to Korn Ferry

$

51,319

$

19,993

$

48,264

$

105,748

Web revenue attributable to non-controlling curiosity

269

963

547

1,890

Web revenue

51,588

20,956

48,811

107,638

Earnings tax provision

21,204

eight,775

25,409

38,988

Earnings earlier than provision for revenue taxes

72,792

29,731

74,220

146,626

Different revenue, web

(14,935

)

(5,055

)

(26,374

)

(eight,zero14

)

Curiosity expense, web

7,298

6,919

21,686

15,186

Working revenue

65,155

31,595

69,532

153,798

Depreciation and amortization

15,735

14,863

46,068

40,355

Different revenue, web

14,935

5,055

26,374

eight,zero14

EBITDA

95,825

51,513

141,974

202,167

Integration/acquisition prices (1)

6,704

737

9,319

Restructuring expenses, web (2)

838

18,093

30,732

18,093

Separation prices (three)

1,783

1,783

Adjusted EBITDA

$

96,663

$

78,093

$

173,443

$

231,362

Working margin

13.7

%

6.1

%

5.5

%

10.three

%

Depreciation and amortization

three.three

%

2.9

%

three.7

%

2.7

%

Different revenue, web

three.2

%

1.zero

%

2.1

%

zero.5

%

EBITDA margin

20.2

%

10.zero

%

11.three

%

13.5

%

Integration/acquisition prices (1)

1.three

%

zero.1

%

zero.7

%

Restructuring expenses, web (2)

zero.1

%

three.5

%

2.four

%

1.2

%

Separation prices (three)

zero.four

%

zero.1

%

Adjusted EBITDA margin

20.three

%

15.2

%

13.eight

%

15.5

%

Web revenue attributable to Korn Ferry

$

51,319

$

19,993

$

48,264

$

105,748

Integration/acquisition prices (1)

6,704

737

9,319

Restructuring expenses, web (2)

838

18,093

30,732

18,093

Separation prices (three)

1,783

1,783

Debt refinancing prices (four)

828

828

Tax impact on the adjusted gadgets (5)

(276

)

(6,451

)

(eight,597

)

(7,119

)

Adjusted web revenue attributable to Korn Ferry

$

51,881

$

40,950

$

71,136

$

128,652

Primary earnings per widespread share

$

zero.95

$

zero.37

$

zero.89

$

1.92

Integration/acquisition prices (1)

zero.12

zero.01

zero.17

Restructuring expenses, web (2)

zero.02

zero.34

zero.57

zero.33

Separation prices (three)

zero.03

zero.03

Debt refinancing prices (four)

zero.02

zero.02

Tax impact on the adjusted gadgets (5)

(zero.01

)

(zero.13

)

(zero.16

)

(zero.14

)

Adjusted primary earnings per share

$

zero.96

$

zero.75

$

1.31

$

2.33

Diluted earnings per widespread share

$

zero.94

$

zero.36

$

zero.88

$

1.90

Integration/acquisition prices (1)

zero.12

zero.01

zero.17

Restructuring expenses, web (2)

zero.02

zero.34

zero.57

zero.33

Separation prices (three)

zero.03

zero.03

Debt refinancing prices (four)

zero.02

zero.02

Tax impact on the adjusted gadgets (5)

(zero.01

)

(zero.12

)

(zero.16

)

(zero.14

)

Adjusted diluted earnings per share

$

zero.95

$

zero.75

$

1.30

$

2.31

Clarification of Non-GAAP Changes

(1)

Prices related to earlier acquisitions, resembling authorized charges, retention awards and the on-going integration bills to mix the businesses.

(2)

Restructuring expenses we incurred to rationalize our price construction by eliminating redundant positions due to COVID-19 and as a result of acquisition of Miller Heiman Group, AchieveForum and Technique Execution on November 1, 2019.

(three)

Prices related to sure senior administration separation expenses.

(four)

Prices to write-off debt issuance prices and rate of interest swap on account of changing our prior Credit score Settlement with a brand new senior secured Credit score Settlement.

(5)

Tax impact on integration/acquisition prices, restructuring expenses, web, separation prices and write-offs of debt issuance prices.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in hundreds)

(unaudited)

Three Months Ended January 31, 2021

Govt Search

Consulting

Digital

North
America

EMEA

Asia
Pacific

Latin
America

Subtotal

RPO and
Skilled
Search

Company

Consolidated

Payment income

$

136,268

$

75,791

$

106,zero02

$

35,991

$

21,643

$

four,468

$

168,104

$

95,197

$

$

475,360

Whole income

$

136,593

$

75,967

$

106,325

$

36,016

$

21,680

$

four,468

$

168,489

$

96,831

$

$

477,880

Web revenue attributable to Korn Ferry

$

51,319

Web revenue attributable to noncontrolling curiosity

269

Different revenue, web

(14,935

)

Curiosity expense, web

7,298

Earnings tax provision

21,204

Working revenue (loss)

$

22,175

$

19,214

$

17,655

$

three,114

$

5,844

$

264

$

26,877

$

18,360

$

(21,471

)

65,155

Depreciation and amortization

four,zero51

7,403

680

345

231

193

1,449

929

1,903

15,735

Different revenue, web

943

494

12,611

61

323

1

12,996

242

260

14,935

EBITDA

27,169

27,111

30,946

three,520

6,398

458

41,322

19,531

(19,308

)

95,825

EBITDA margin

19.9

%

35.eight

%

29.2

%

9.eight

%

29.6

%

10.three

%

24.6

%

20.5

%

20.2

%

Restructuring, expenses, web

346

23

(5

)

398

(23

)

370

99

838

Adjusted EBITDA

$

27,515

$

27,134

$

30,941

$

three,918

$

6,375

$

458

$

41,692

$

19,630

$

(19,308

)

$

96,663

Adjusted EBITDA margin

20.2

%

35.eight

%

29.2

%

10.9

%

29.5

%

10.three

%

24.eight

%

20.6

%

20.three

%

Three Months Ended January 31, 2020

Govt Search

Consulting

Digital

North
America

EMEA

Asia
Pacific

Latin
America

Subtotal

RPO and
Skilled
Search

Company

Consolidated

Payment income

$

140,525

$

99,389

$

106,888

$

44,301

$

25,089

$

7,283

$

183,561

$

91,850

$

$

515,325

Whole income

$

144,298

$

100,663

$

110,230

$

45,zero77

$

25,365

$

7,351

$

188,zero23

$

94,995

$

$

527,979

Web revenue attributable to Korn Ferry

$

19,993

Web revenue attributable to noncontrolling curiosity

963

Different revenue, web

(5,055

)

Curiosity expense, web

6,919

Earnings tax provision

eight,775

Working revenue (loss)

$

2,663

$

eight,463

$

21,808

$

four,644

$

5,zero70

$

1,198

$

32,720

$

14,144

$

(26,395

)

31,595

Depreciation and amortization

four,417

5,832

847

422

329

295

1,893

979

1,742

14,863

Different revenue (loss), web

558

193

three,963

29

106

162

four,260

88

(44

)

5,055

EBITDA

7,638

14,488

26,618

5,zero95

5,505

1,655

38,873

15,211

$

(24,697

)

51,513

EBITDA margin

5.four

%

14.6

%

24.9

%

11.5

%

21.9

%

22.7

%

21.2

%

16.6

%

10.zero

%

Integration/acquisition prices

four,332

2,372

6,704

Restructuring, expenses, web

11,zero61

7,zero32

18,093

Separation prices

1,783

1,783

1,783

Adjusted EBITDA

$

18,699

$

25,852

$

26,618

$

6,878

$

5,505

$

1,655

$

40,656

$

15,211

$

(22,325

)

$

78,093

Adjusted EBITDA margin

13.three

%

26.zero

%

24.9

%

15.5

%

21.9

%

22.7

%

22.1

%

16.6

%

15.2

%

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND OPERATING INCOME (GAAP) TO

EBITDA AND ADJUSTED EBITDA (NON-GAAP)

(in hundreds)

(unaudited)

9 Months Ended January 31, 2021

Govt Search

Consulting

Digital

North
America

EMEA

Asia
Pacific

Latin
America

Subtotal

RPO and
Skilled
Search

Company

Consolidated

Payment income

$

362,271

$

206,807

$

266,485

$

97,701

$

59,702

$

12,419

$

436,307

$

249,511

$

$

1,254,896

Whole income

$

363,234

$

207,zero27

$

267,790

$

97,925

$

59,840

$

12,419

$

437,974

$

254,317

$

$

1,262,552

Web revenue attributable to Korn Ferry

$

48,264

Web revenue attributable to noncontrolling curiosity

547

Different revenue, web

(26,374

)

Curiosity expense, web

21,686

Earnings tax provision

25,409

Working revenue (loss)

$

25,869

$

32,410

$

32,411

$

(1,596

)

$

9,958

$

(578

)

$

40,195

$

33,zero27

$

(61,969

)

69,532

Depreciation and amortization

12,123

21,134

2,126

1,062

756

597

four,541

2,814

5,456

46,068

Different revenue (loss), web

2,zero67

1,114

21,944

111

715

56

22,826

462

(95

)

26,374

EBITDA

40,zero59

54,658

56,481

(423

)

11,429

75

67,562

36,303

(56,608

)

141,974

EBITDA margin

11.1

%

26.four

%

21.2

%

(zero.four

%)

19.1

%

zero.6

%

15.5

%

14.5

%

11.three

%

Integration/acquisition prices

556

181

737

Restructuring expenses, web

14,223

2,947

958

eight,868

181

405

10,412

three,150

30,732

Adjusted EBITDA

$

54,282

$

58,161

$

57,439

$

eight,445

$

11,610

$

480

$

77,974

$

39,453

$

(56,427

)

$

173,443

Adjusted EBITDA margin

15.zero

%

28.1

%

21.6

%

eight.6

%

19.four

%

three.9

%

17.9

%

15.eight

%

13.eight

%

9 Months Ended January 31, 2020

Govt Search

Consulting

Digital

North
America

EMEA

Asia
Pacific

Latin
America

Subtotal

RPO and
Skilled
Search

Company

Consolidated

Payment income

$

422,103

$

223,zero97

$

332,428

$

130,652

$

78,395

$

23,140

$

564,615

$

282,448

$

$

1,492,263

Whole income

$

433,832

$

224,371

$

342,753

$

132,830

$

79,201

$

23,211

$

577,995

$

292,156

$

$

1,528,354

Web revenue attributable to Korn Ferry

$

105,748

Web revenue attributable to noncontrolling curiosity

1,890

Different revenue, web

(eight,zero14

)

Curiosity expense, web

15,186

Earnings tax provision

38,988

Working revenue (loss)

$

24,272

$

41,zero36

$

80,254

$

18,466

$

17,866

$

2,999

$

119,585

$

44,279

$

(75,374

)

153,798

Depreciation and amortization

13,188

13,156

2,617

1,328

1,004

938

5,887

2,961

5,163

40,355

Different revenue (loss), web

1,469

528

5,740

148

193

249

6,330

216

(529

)

eight,zero14

EBITDA

38,929

54,720

88,611

19,942

19,063

four,186

131,802

47,456

(70,740

)

202,167

EBITDA margin

9.2

%

24.5

%

26.7

%

15.three

%

24.three

%

18.1

%

23.three

%

16.eight

%

13.5

%

Integration/acquisition prices

four,332

four,987

9,319

Restructuring expenses, web

11,zero61

7,zero32

18,093

Separation prices

1,783

1,783

1,783

Adjusted EBITDA

$

49,990

$

66,084

$

88,611

$

21,725

$

19,063

$

four,186

$

133,585

$

47,456

$

(65,753

)

$

231,362

Adjusted EBITDA margin

11.eight

%

29.6

%

26.7

%

16.6

%

24.three

%

18.1

%

23.7

%

16.eight

%

15.5

%

View supply model on businesswire.com: https://www.businesswire.com/information/house/20210222005201/en/

Contacts

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

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