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Global executive search fee revenue edged down 0.3 percent at Korn/Ferry International Inc. (NYSE: KFY) in the company’s fiscal fourth quarter ended April 30 compared with the same period last year. However, revenue rose 5.8 percent in its Futurestep division, which provides recruitment process outsourcing, project recruitment and talent consulting. The acquisitions of PDI Ninth House and Global Novations fueled fourth-quarter revenue in the Los Angeles-based company’s leadership and talent consulting division, which noted an 89.9 percent increase.
Fourth-quarter executive search fee revenue fell in all geographies except North America:
- North America executive search fee revenue: $77.5 million, +1.6 percent
- Europe, the Middle East and Africa: $32.2 million, -1.5 percent
- Asia Pacific: $19.2 million, -1.7 percent
- South America: $7.8 million, -9.3 percent
Futurestep fee revenue benefited from an increase in revenue in RPO and recruitment, according to the company. Fee revenue in the division rose 5.8 percent to $31.0 million in the fourth quarter.
Fee revenue in Korn/Ferry’s leadership and talent consulting operations rose 89.9 percent to $60.1 million in the fourth quarter. Excluding current year acquisitions — PDI Ninth House and Global Novations — fourth-quarter revenue in leadership and talent consulting operations was essentially flat year-over-year.
Total global fee revenue at Korn/Ferry rose 15.0 percent to $227.9 million, but the increase was 1 percent excluding the acquisitions.
Net income rose 1.7 percent in the fourth quarter to $12.2 million. Korn/Ferry included a restructuring charge of $2.9 million in the quarter related to the integration of PDI Ninth House into its leadership and talent consulting division.
Full-year fee revenue rose 2.8 percent to $812.8 million from $790.5 million in fiscal year 2012.
Net income for the year was $33.3 million, down 38.7 percent from $54.3 million the prior fiscal year.
Korn/Ferry International Inc. (NYSE: KFY)
For the fiscal fourth quarter ended April 30, 2013, compared with the same period a year ago.
Fee revenue: $227.9 million, +15.0 percent
Net income: $12.2 million, +1.7 percent
For the fiscal year ended April 30, 2013, compared with 2012.
Fee revenue: $812.8 million, +2.8 percent
Net income: $33.3 million, -38.7 percent