2013 Q3 Form 10-Q Financial Statement

#000121070813000034 Filed on October 31, 2013

View on sec.gov

Income Statement

Concept 2013 Q3 2012 Q3
Revenue $139.3M $187.9M
YoY Change -25.86% -23.34%
Cost Of Revenue $88.80M $120.2M
YoY Change -26.13% -20.96%
Gross Profit $50.49M $67.67M
YoY Change -25.38% -27.23%
Gross Profit Margin 36.25% 36.02%
Selling, General & Admin $54.61M $66.07M
YoY Change -17.34% -22.54%
% of Gross Profit 108.17% 97.65%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.530M $1.670M
YoY Change -8.38% 8.44%
% of Gross Profit 3.03% 2.47%
Operating Expenses $54.61M $66.07M
YoY Change -17.34% -22.54%
Operating Profit -$6.125M -$1.600M
YoY Change 282.81% -126.02%
Interest Expense -$146.0K -$161.0K
YoY Change -9.32% -50.91%
% of Operating Profit
Other Income/Expense, Net $294.0K $591.0K
YoY Change -50.25% -348.32%
Pretax Income -$5.977M -$1.170M
YoY Change 410.85% -120.95%
Income Tax -$392.0K $995.0K
% Of Pretax Income
Net Earnings -$5.047M -$2.165M
YoY Change 133.12% -164.02%
Net Earnings / Revenue -3.62% -1.15%
Basic Earnings Per Share -$0.15 -$0.07
Diluted Earnings Per Share -$0.15 -$0.07
COMMON SHARES
Basic Shares Outstanding 32.60M shares 32.16M shares
Diluted Shares Outstanding 32.60M shares 32.16M shares

Balance Sheet

Concept 2013 Q3 2012 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $33.20M $34.90M
YoY Change -4.87% 55.11%
Cash & Equivalents $33.24M $34.88M
Short-Term Investments
Other Short-Term Assets $10.70M $13.00M
YoY Change -17.69% 4.0%
Inventory
Prepaid Expenses
Receivables $82.79M $115.5M
Other Receivables $0.00 $0.00
Total Short-Term Assets $142.2M $163.4M
YoY Change -12.97% -12.38%
LONG-TERM ASSETS
Property, Plant & Equipment $16.39M $20.74M
YoY Change -20.96% 21.26%
Goodwill $2.056M $2.020M
YoY Change 1.78% 1.41%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.791M $5.080M
YoY Change 14.0% -69.4%
Total Long-Term Assets $32.68M $36.41M
YoY Change -10.25% 8.08%
TOTAL ASSETS
Total Short-Term Assets $142.2M $163.4M
Total Long-Term Assets $32.68M $36.41M
Total Assets $174.9M $199.8M
YoY Change -12.47% -9.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.745M $8.529M
YoY Change -20.92% -18.77%
Accrued Expenses $65.60M $65.10M
YoY Change 0.77% -20.51%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $72.32M $73.67M
YoY Change -1.83% -25.59%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $6.228M $6.790M
YoY Change -8.28% -64.64%
Total Long-Term Liabilities $6.228M $6.790M
YoY Change -8.28% -64.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $72.32M $73.67M
Total Long-Term Liabilities $6.228M $6.790M
Total Liabilities $89.06M $93.12M
YoY Change -4.36% -21.22%
SHAREHOLDERS EQUITY
Retained Earnings -$406.1M -$402.3M
YoY Change 0.96%
Common Stock $475.4M $473.2M
YoY Change 0.45%
Preferred Stock
YoY Change
Treasury Stock (at cost) $853.0K $315.0K
YoY Change 170.79%
Treasury Stock Shares 208.0K shares 65.00K shares
Shareholders Equity $85.85M $106.7M
YoY Change
Total Liabilities & Shareholders Equity $174.9M $199.8M
YoY Change -12.47% -9.25%

Cashflow Statement

Concept 2013 Q3 2012 Q3
OPERATING ACTIVITIES
Net Income -$5.047M -$2.165M
YoY Change 133.12% -164.02%
Depreciation, Depletion And Amortization $1.530M $1.670M
YoY Change -8.38% 8.44%
Cash From Operating Activities $5.630M $7.940M
YoY Change -29.09% -212.78%
INVESTING ACTIVITIES
Capital Expenditures -$750.0K -$920.0K
YoY Change -18.48% -49.73%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities -$750.0K -$920.0K
YoY Change -18.48% -49.73%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -810.0K -1.560M
YoY Change -48.08% -41.35%
NET CHANGE
Cash From Operating Activities 5.630M 7.940M
Cash From Investing Activities -750.0K -920.0K
Cash From Financing Activities -810.0K -1.560M
Net Change In Cash 4.070M 5.460M
YoY Change -25.46% -147.35%
FREE CASH FLOW
Cash From Operating Activities $5.630M $7.940M
Capital Expenditures -$750.0K -$920.0K
Free Cash Flow $6.380M $8.860M
YoY Change -27.99% -270.06%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTE 2 &#8211; DESCRIPTION OF BUSINESS</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is comprised of the operations, assets and liabilities of the three Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe (&#8220;Hudson regional businesses&#8221; or &#8220;Hudson&#8221;). The Company provides specialized professional-level recruitment and related talent solutions worldwide. The Company&#8217;s core service offerings include Permanent Recruitment, Contract Consulting, Legal eDiscovery, Recruitment Process Outsourcing (&#8220;RPO&#8221;) and Talent Management Solutions.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company operates in </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">20</font><font style="font-family:inherit;font-size:10pt;"> countries with </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">three</font><font style="font-family:inherit;font-size:10pt;"> reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. See Note </font><font style="font-family:inherit;font-size:10pt;color:#000000;font-weight:normal;text-decoration:none;">16</font><font style="font-family:inherit;font-size:10pt;"> for further details regarding the reportable segments. </font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Corporate expenses are reported separately from the reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, tax, marketing, information technology and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them and have been allocated to the segments as management service fees and are included in the segments&#8217; non-operating other income (expense).</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s core service offerings include those services described below.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Permanent Recruitment:</font><font style="font-family:inherit;font-size:10pt;"> Offered on both a retained and contingent basis, Hudson&#8217;s Permanent Recruitment services leverage its consultants, psychologists and other professionals in the development and delivery of its proprietary methods to identify, select and engage the best-fit talent for critical client roles.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Contract Consulting:</font><font style="font-family:inherit;font-size:10pt;"> In Contract Consulting, Hudson provides a range of project management, interim management and professional contract staffing services. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson-employed professionals &#8211; either individually or as a team &#8211; are placed with client organizations for a defined period of time based on a client's specific business need.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Legal eDiscovery:</font><font style="font-family:inherit;font-size:10pt;"> Hudson&#8217;s Legal eDiscovery services are composed of eDiscovery solutions, managed document review (encompassing logistical deployment, project management, process design and productivity management), and contract attorney staffing. The most comprehensive of these is the Company&#8217;s full-service eDiscovery solution, providing an integrated system of discovery management and review technology deployment for both corporate and law firm clients.&#160;</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">RPO:</font><font style="font-family:inherit;font-size:10pt;"> Hudson RPO delivers outsourced recruitment solutions tailored to the individual needs of mid- to large-cap multinational companies. Hudson RPO delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients&#8217; ongoing business needs. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Talent Management Solutions:</font><font style="font-family:inherit;font-size:10pt;"> Featuring embedded proprietary talent assessment and selection methodologies, Hudson&#8217;s Talent Management capability encompasses services such as talent assessment (utilizing a variety of competency, attitude and experiential testing), interview training, executive coaching, employee development and outplacement.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
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dei Amendment Flag
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dei Document Fiscal Year Focus
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2013
dei Document Period End Date
DocumentPeriodEndDate
2013-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
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0001210708
CY2013Q3 dei Entity Common Stock Shares Outstanding
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dei Entity Filer Category
EntityFilerCategory
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dei Entity Registrant Name
EntityRegistrantName
Hudson Global, Inc.

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