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Korn/Ferry Revenue Falls; Restructuring Costs $16 Million

December 06 2012

Fee revenue fell 2.0 percent at Korn/Ferry International Inc. (NYSE: KFY) to $196.2 million in the executive search firm’s fiscal second quarter ended Oct. 31. The year-over-year decline excluded two months of fee revenue from leadership consulting firm Global Novations, which Korn/Ferry acquired in September.

Korn/Ferry also reported net restructuring charges of $15.5 million, which included $11.3 million for workforce reduction and $4.2 million for consolidation of offices.

North America revenue fell 10 percent to $69.4 million. Korn/Ferry also saw fee revenue fall by 16 percent in Asia Pacific; 11 percent in South America; and 6 percent in Europe, the Middle East and Asia. However, Futurestep revenue rose 5 percent to $30.0 million.

Second-quarter net income fell 92.1 percent to $1.2 million including the restructuring charges.

Also today, Korn/Ferry announced it would acquire leadership advisory firm PDI Ninth House for $80 million in cash at closing plus an earn-out of up to $15 million.

Korn/Ferry International (NYSE: KFY)
 For the three months ended Oct. 31, 2012, compared with the same period a year ago.
 Fee revenue: $196.2 million, -2.0 percent
 Net income: $1.2 million, -92.1 percent

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