Executive search firm Korn Ferry International (KFY: NYSE) yesterday reported total revenue for the company’s fiscal first quarter ending 31 July of USD 417.1 million, an increase of 47.8% compared with USD 282.2 million last year. 

The company’s margins declined which they attributed to an increase in integration/acquisition and restructuring costs as well as a foreign currency loss relating to the devaluation of the Venezuelan currency.

"I am enormously proud of our company and the results we have achieved during the quarter, and at the same time, continuing to deliver on the Hay Group integration at a scope and pace that has exceeded our initial expectations,” Gary D. Burnison, CEO Korn Ferry, said.

Korn Ferry completed its acquisition of Hay Group in 2015 for approximately USD 452 million.

"We are in the midst of creating a new firm with 65% of our colleagues new to the organization in the last three years, due to expansion and growth.  We are a company that accelerates our clients' business performance through solutions and productized services that span from strategy implementation and organizational design to recruitment and leadership development to compensation and reward strategies.  Our advisory business, now bolstered by our Hay Group combination, has given us more reasons to engage with clients.  Also, our recruiting businesses, Executive Search and Futurestep, have never been stronger than they were in the fourth quarter," Burnison said.

“In the fourth quarter of FY'16, we continued to make significant progress on the Hay Group integration,” Burnison said. “The majority of our fourth quarter efforts were focused on activities associated with integration of our go-to-market activities, our intellectual property and content, our solution sets and service offerings, and our back office systems and business processes.  We incurred a minimal amount of restructuring costs, including real estate co-location.”

The company stated that the integration of Hay Group will be substantially complete in Q1 FY'17.

The acquisition of Hay Group contributed $114.9 million in fee revenue. Fee revenue for Korn Ferry’s business segments in Q4 FY15 was broken down as follows:

Korn Ferry’s Executive Recruitment division operates in four primary geographies; North America, EMEA, Asia-Pacific, and South America. Fee revenue for Q4 FY15 was as follows: 

Korn Ferry stated that assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis they expect Q1 FY17 fee revenue to be in the range of $371 million and $391 million.

In trading yesterday, Korn/Ferry International closed at 27.62, down 2.51% on the day and 9.58% above its 52-week low of 25.21, set on 10 March 2016. Based on its current share price, the company has a market value of USD 1.58 billion.