2024 Q2 Form 10-Q Financial Statement

#000121070824000032 Filed on May 10, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $35.71M $33.89M $43.07M
YoY Change -20.46% -21.32% -17.04%
Cost Of Revenue $18.10M $17.56M $21.31M
YoY Change -18.9% -17.58% -19.12%
Gross Profit $17.62M $16.33M $21.76M
YoY Change -22.0% -24.97% -14.89%
Gross Profit Margin 49.33% 48.18% 50.53%
Selling, General & Admin $17.52M $18.97M $21.40M
YoY Change -16.09% -11.33% -1.15%
% of Gross Profit 99.43% 116.18% 98.32%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $287.0K $397.0K $348.0K
YoY Change -18.93% 14.08% 7.41%
% of Gross Profit 1.63% 2.43% 1.6%
Operating Expenses $35.90M $36.93M $43.05M
YoY Change -17.55% -14.22% -10.89%
Operating Profit -$187.0K -$3.040M $18.00K
YoY Change -113.8% -16988.89% -99.5%
Interest Expense $94.00K $93.00K $64.00K
YoY Change -27.69% 45.31% 3100.0%
% of Operating Profit 355.56%
Other Income/Expense, Net -$95.00K -$39.00K $133.0K
YoY Change 90.0% -129.32% -371.43%
Pretax Income -$188.0K -$2.986M $215.0K
YoY Change -113.1% -1488.84% -93.95%
Income Tax $253.0K -$88.00K -$139.0K
% Of Pretax Income -64.65%
Net Earnings -$441.0K -$2.898M $354.0K
YoY Change -176.3% -918.64% -88.27%
Net Earnings / Revenue -1.23% -8.55% 0.82%
Basic Earnings Per Share -$0.15 -$0.95 $0.12
Diluted Earnings Per Share -$0.15 -$0.95 $0.11
COMMON SHARES
Basic Shares Outstanding 2.833M shares 2.815M shares 3.033M shares
Diluted Shares Outstanding 3.011M shares 3.041M shares 3.122M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.66M $20.41M $21.93M
YoY Change -35.22% -6.91% 14.49%
Cash & Equivalents $14.66M $20.41M $21.93M
Short-Term Investments
Other Short-Term Assets $2.842M $3.159M $3.064M
YoY Change -4.12% 3.1% 17.89%
Inventory
Prepaid Expenses
Receivables $24.51M $20.97M $27.36M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $42.02M $44.54M $52.35M
YoY Change -20.82% -14.92% 3.31%
LONG-TERM ASSETS
Property, Plant & Equipment $336.0K $317.0K $630.0K
YoY Change -39.46% -49.68% 49.29%
Goodwill $5.724M $5.728M $4.879M
YoY Change 17.32% 17.4% 15.64%
Intangibles $3.040M $3.336M $4.253M
YoY Change -23.5% -21.56% -18.38%
Long-Term Investments
YoY Change
Other Assets $235.0K $277.0K $12.00K
YoY Change 1578.57% 2208.33% 140.0%
Total Long-Term Assets $14.11M $14.66M $13.12M
YoY Change 11.28% 11.76% 3.83%
TOTAL ASSETS
Total Short-Term Assets $42.02M $44.54M $52.35M
Total Long-Term Assets $14.11M $14.66M $13.12M
Total Assets $56.13M $59.20M $65.47M
YoY Change -14.63% -9.57% 3.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.115M $1.974M $1.204M
YoY Change -15.72% 63.95% 13.37%
Accrued Expenses $5.427M $5.701M $7.212M
YoY Change -30.53% -20.95% -5.18%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $1.250M
YoY Change -100.0%
Long-Term Debt Due $1.250M
YoY Change 66.67%
Total Short-Term Liabilities $12.73M $13.89M $17.74M
YoY Change -28.89% -21.66% -2.5%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $450.0K $439.0K $439.0K
YoY Change -0.44% 0.0% 9.2%
Total Long-Term Liabilities $450.0K $439.0K $439.0K
YoY Change -0.44% 0.0% 9.2%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.73M $13.89M $17.74M
Total Long-Term Liabilities $450.0K $439.0K $439.0K
Total Liabilities $13.57M $14.90M $19.07M
YoY Change -28.83% -21.89% -7.04%
SHAREHOLDERS EQUITY
Retained Earnings -$428.6M -$428.1M -$427.1M
YoY Change 0.49% 0.25% -1.02%
Common Stock $493.5M $493.4M $492.0M
YoY Change 0.22% 0.28% 0.46%
Preferred Stock
YoY Change
Treasury Stock (at cost) $20.55M $19.04M $16.91M
YoY Change 17.22% 12.62% 8.71%
Treasury Stock Shares
Shareholders Equity $42.56M $44.30M $46.40M
YoY Change
Total Liabilities & Shareholders Equity $56.13M $59.20M $65.47M
YoY Change -14.63% -9.57% 3.41%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$441.0K -$2.898M $354.0K
YoY Change -176.3% -918.64% -88.27%
Depreciation, Depletion And Amortization $287.0K $397.0K $348.0K
YoY Change -18.93% 14.08% 7.41%
Cash From Operating Activities -$4.273M -$1.785M -$4.954M
YoY Change -261.31% -63.97% 107.63%
INVESTING ACTIVITIES
Capital Expenditures $14.00K $9.000K $38.00K
YoY Change 1300.0% -76.32% -140.86%
Acquisitions
YoY Change
Other Investing Activities $0.00 $1.076M
YoY Change
Cash From Investing Activities -$14.00K $1.067M -$38.00K
YoY Change 1300.0% -2907.89% -59.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.485M -$1.095M -$164.0K
YoY Change -20.5% 567.68% -27.43%
NET CHANGE
Cash From Operating Activities -4.273M -$1.785M -$4.954M
Cash From Investing Activities -14.00K $1.067M -$38.00K
Cash From Financing Activities -1.485M -$1.095M -$164.0K
Net Change In Cash -5.772M -$2.171M -$5.191M
YoY Change -840.0% -58.18% 100.35%
FREE CASH FLOW
Cash From Operating Activities -$4.273M -$1.785M -$4.954M
Capital Expenditures $14.00K $9.000K $38.00K
Free Cash Flow -$4.287M -$1.794M -$4.992M
YoY Change -261.9% -64.06% 117.71%

Facts In Submission

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DESCRIPTION OF BUSINESS<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    The Company delivers Recruitment Process Outsourcing (“RPO”) services consisting of recruitment and contracting solutions tailored to the individual needs of primarily mid-to-large multinational companies. The Company operates directly in fourteen countries with three reportable geographic business segments: the Americas, Asia Pacific, and Europe. The Company’s RPO delivery teams utilize recruitment process methodologies and project management expertise to meet clients’ ongoing business needs. The Company’s RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting for clients’ permanent staff hires. Hudson’s RPO services leverage the Company’s consultants, supported by the Company’s specialists, in the delivery of its proprietary methods to identify, select, and engage the best-fit talent for critical client roles. In addition, the Company provides RPO clients with a range of outsourced professional contract staffing services and managed service provider services offered sometimes on a standalone basis and sometimes as part of a blended total talent solution. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson RPO-employed professionals - either individually or as a team - are placed with client organizations for a defined period of time based on specific business needs of the client.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 12, 2024, the Company announced that it entered into a strategic agreement with Executive Solutions, a Dubai-based talent solutions company. This agreement allowed the Company to expand its global footprint and client base in the Middle East market. The Company evaluated the agreement under ASC 805 "Business Combinations" and determined that the transaction did not qualify as either a business combination or an asset purchase. Payments associated with this agreement were classified as compensation expense and were included in the "Salaries and related" caption on the Company's Condensed Consolidated Statements of Operations.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In February 2024, Hudson RPO announced an expansion of its service offerings to include executive search in North America, focusing on Life Sciences and Human Resources. This expansion, coupled with the Company’s existing RPO strategy, provides a comprehensive talent acquisition approach, enabling clients to develop streamlined and centralized hiring strategies within a flexible and scalable total talent solution. This service offering better positions the Company as a strategic partner helping clients to implement successful business strategies.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On November 15, 2023, Hudson announced the appointment of Jacob “Jake” Zabkowicz as Global Chief Executive Officer of Hudson RPO. Mr. Zabkowicz leads the vision, strategy, and execution of Hudson RPO’s growth plan, while Jeff Eberwein, Chief Executive Officer of Hudson Global, Inc., continues to focus on capital allocation, acquisitions, corporate strategy, and maximizing shareholder value.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On October 31, 2023, Hudson completed its acquisition of Hudson Global Resources (Singapore) Pte. Ltd. (“Hudson Singapore”), a provider of recruitment services primarily to clients operating in Singapore. Hudson Singapore has a 30-year track record of senior placements and project recruitment work across Southeast Asia including Singapore, Malaysia, the Philippines, Vietnam, Thailand, and Indonesia.</span></div>See Note 14 to the Condensed Consolidated Financial Statements for further details regarding the Company’s reportable segments: Americas, Asia Pacific, and Europe.
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Files In Submission

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