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Americas business leads growth at Heidrick

February 25 2014

Heidrick & Struggles Inc. (NASD: HSII), a Chicago-based executive search provider, reported fourth-quarter net revenue rose in both the Americas and Europe on a year-over-year basis. Net revenue edged down in Asia-Pacific, but increased on a constant currency basis.

Fourth-quarter net revenue rose 10.4 percent year over year in the Americas to $63.8 million. Improvements in consultant productivity and average revenue per executive search, as well as revenue growth in the consumer markets, industrial and global technology and services search practices, drove the increase in revenue. The improvements were partially offset by declines in the financial services and healthcare and life sciences practices and lower consultant headcount.

Senn Delaney, the culture-shaping firm acquired on Dec. 31, 2012, now meets the materiality threshold and is required to be a separately reported segment. The new culture-shaping segment reported fourth quarter revenue of $7.2 million, of which $6.1 million was from the Americas and $1.1 million from Europe.

Europe net revenue rose 7.7 percent year over year, approximately 5 percent on a constant currency basis, to $25.0 million. Fourth-quarter revenue growth in the industrial search practice and leadership consulting, as well as an improvement in consultant productivity, were partially offset by a revenue decline in the financial services practice.

Asia Pacific net revenue fell 3.9 percent to $22.0 million, but increased approximately 2 percent on a constant currency basis. Growth in the global technology and services search practice was offset by revenue declines in the other practices.

Total global net revenue at Heidrick rose 13.6 percent to $118.0 million from $103.9 million in the 2012 fourth quarter.

The company reported fourth-quarter net income of $1.5 million compared to a net loss of $402,000 in the same quarter year prior.

Shares rose 1.16 percent in morning trading to $17.46 and the firm had a market cap of $316.22 million, according to Yahoo!

For the full year 2013, net revenue rose 4.1 percent to $462.0 million.

The company reported full-year 2013 net income of $6.3 million compared with net income of $6.2 million for 2012.

The company forecasts 2014 first-quarter consolidated net revenue of between $110 million and $120 million.


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