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Heidrick's Americas Revenue Rises 19.1%

February 22 2011

Heidrick & Struggles International Inc. (NASD: HSII) reported fourth-quarter revenue from the Americas was $66.5 million, up 19.1 percent from the year-ago quarter. Overall, the company reported consolidated revenue rose 15.5 percent to $133.0 million in the fourth quarter ended Dec. 31, 2010, over the year-ago quarter.

"Following the historic drop in our business in 2009, we achieved a number of significant improvements in 2010. Search confirmations were up 15 percent, consolidated net revenue increased 25 percent, leadership consulting services revenue increased 53 percent, and we achieved near-record consultant productivity levels," said L. Kevin Kelly, CEO. "To improve our competitiveness and better position us for future growth, we invested heavily in hiring, development and retention initiatives, as well as our business processes. These investments weighed on our margins, as did challenges we faced in Europe. However, our business in Europe is beginning to show improvement and we are confident that the investments we are making further position us as an integrated provider of leadership advisory services."

The performance in the Americas was attributed to strong growth in the industrial and global technology and services and leadership consulting services units.

Europe revenue rose 7.8 percent in the fourth quarter to $34.9 million. The Asia Pacific region posted revenue of $25.8 million, a 19.3 percent increase over the year-ago quarter.

The average revenue per executive search was $112,600, up from $104,900 in the 2009 period. The company noted salaries and benefits increased 19.1 percent. While the bulk of the increase is tied to the higher revenue, some is due to increased head count as well as a return to certain salaries and benefits that had been eliminated in 2009 in cost-cutting efforts.

The company posted net income of $5.2 million for the quarter, compared with $9.4 million in the year-ago quarter.

The company's full-year revenue rose by 23.8 percent in 2010, hitting $513.2 million. The Americas generated $255.7 million, a 26.9 percent jump over the prior year's results. Europe grew by 6.6 percent to $127.3 million in 2010. The Asia Pacific region showed the biggest improvement over the year, posting 47.5 percent growth to $110.1 million.

Net income for the year was $7.5 million, compared with a loss of $20.9 million in 2009.

The company also reported it expects revenue of $122 million to $128 million (+3.1 percent to +8.2 percent) in the first quarter ending March 31. For the full fiscal year, the company anticipates revenue of $515 million to $545 million (+0.3 percent to +6.2 percent).

Heidrick & Struggles International Inc. (NASD: HSII)
For the fourth quarter ended Dec. 31, 2010, compared with the same period in 2009.
Revenue: $133.0 million, +15.5 percent
Net income: $5.2 million, -44.7 percent
For the full year ended Dec. 31, 2010, compared with the previous year.
Revenue: $513.2 million, +23.8 percent
Net income: $7.5 million vs. a net loss of $20.9 million


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