Executive search provider Korn Ferry International (NYSE: KFY) reported fee revenue rose 9.7%, or 16.2% on a constant currency basis, in its fiscal second quarter ended Oct. 31. The company, which closed on its acquisition of the Hay Group this month, also announced it plans to take restructuring charges of $20 million to $25 million in its fiscal third quarter related to the integration of the two firms.

Integration costs will include workforce alignment, consolidation of office and eliminating redundant expenses.

But turning to revenue, fee revenue the Los Angeles-based firm exceeded the top end of its guidance of $267 million to $277 million, but excluded integration/acquisition costs of $12.0 million.

Korn Ferry attributed fee revenue growth primarily to increases of $10.1 million, $7.5 million and $7.3 million in fee revenue in Futurestep, executive recruitment, and leadership and talent consulting, respectively.  The overall fee revenue increase was driven by fee revenue growth in certain major markets — financial services, life science/healthcare, technology and education/non-profit, partially offset by a decline in industrial and consumer goods.

Second-quarter executive recruitment fee revenue rose 5.0%, or 11.1% on a constant currency basis. The increase was primarily attributable to a 3.2% increase in the number of engagements billed and a 1.6% increase in the weighted-average fees billed per engagement. On a regional basis, the fee revenue increase was driven by a $10.1 million increase in North America, partially offset by a $2.3 million decrease in South America.

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“In our recently completed second fiscal quarter, I am proud to report that Korn Ferry generated the strongest topline results in the Company’s history, representing a 16% year-over-year increase in fee revenue on a constant currency basis,” said CEO Gary Burnison. “Now with the close of our acquisition of Hay Group, we have unified two great organizations to create the preeminent advisor for an organization and its people. As a combined firm, we have an unrivaled ability to address the entire talent continuum, a move that affirms the critical role that people and leadership play in driving organization performance.”

Fee revenue by segment and geography

*Futurestep includes recruitment process outsourcing, project-based recruitment and other services.

Share price and market cap

Shares in Korn Ferry rose 0.99%% to $37.31 in late morning trading today. The company had a market cap of $2.13 billion, according to Yahoo!