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Executive search firm Heidrick & Struggles International Inc. (NASD: HSII) reported fourth-quarter net revenue fell 18.3 percent to $103.9 million from $127.2 million in the year-ago quarter.
“Challenging economic conditions and lower confirmations resulted in 2012 financial results that fell short of our expectations, particularly with respect to net revenue,” said L. Kevin Kelly, chief executive officer. “However, we are pleased with the improvements we made to our cost structure, which helped offset the impact of the revenue decline on operating margin.”
All regions and industry practices contributed to the decline. Fourth-quarter Americas net revenue fell 16.7 percent year over year to $57.8 million. Europe net revenue fell 29.2 percent to $23.3 million, and Asia Pacific net revenue fell 8.3 percent to $22.8 million.
Heidrick posted a fourth-quarter net loss of $402,000 compared with a net loss of $4.1 million in the year-ago quarter.
The firm last month acquired Senn-Delaney Leadership Consulting Group, which provides “corporate culture shaping” services. Read the story here.
For the full year 2012, net revenue fell by 15.9 percent to $443.8 million. The company reported net income of $6.2 million compared with a net loss of $33.7 million for 2011. It ended the year with 331 executive search and leadership consulting consultants compared with 347 at the end of 2011.
The company forecasts 2013 first quarter net revenue of between $100 million and $110 million.
Heidrick & Struggles had a market capitalization of $236.3 million, according to Yahoo today.
Heidrick & Struggles International Inc. (NASD: HSII)
For the fourth quarter ended Dec. 31, 2012, compared with the same period in the previous year.
Net revenue: $103.9 million, -18.3 percent
Net loss: $402,000 vs. net loss of $4.1 million
For the fiscal year ended Dec. 31, 2012, compared with the previous year.
Net revenue: $443.8 million, -15.9 percent
Net Income: $6.2 million vs. net loss of $33.7 million