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View All NewsKorn Ferry revenue up 10%; ‘strongest’ top-line results in firm’s history
Korn Ferry International (NYSE: KFY) revenue rose 10.4 percent in its fiscal fourth quarter ended April 30. The Los Angeles-based executive recruitment firm posted fourth-quarter revenue of $251.7 million. (The effect of exchange rates was not significant, according to the company.)
The Los Angeles-based executive search firm reported overall fee revenue was driven by growth in financial services, technology, life science/healthcare and the industrial sectors.
Fourth-quarter net income rose to $21.2 million from $12.2 million. The fourth-quarter of fiscal year 2013 included a restructuring charge of $2.9 million.
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“As I said, we closed out the year with a really strong quarter, generating about $252 million in fee revenue,” CEO Gary Burnison said in a conference call with analysts. “That was up almost 11 percent constant currency over the prior year. It was the strongest top-line results in the company's 45-year history.”
Fee revenue
| Q4 2014 (000s) | Q4 2013 (000s) | % growth | |
| Fee revenue | $251,712 | $227,902 | 10.4% |
Revenue by segment and geography
| Q4 2014 (000s) | Q4 2013 (000s) | % growth | |
| Executive recruitment | |||
| North America | $80,230 | $77,511 | 3.5% |
| Europe, the Middle East, Africa | $40,175 | $32,242 | 24.6% |
| Asia Pacific | $21,753 | $19,199 | 13.3% |
| South America | $6,028 | $7,839 | -23.1% |
| Total executive recruitment | $148,186 | $136,791 | 8.3% |
| Leadership & Talent Consulting | $66,279 | $60,116 | 10.3% |
| Futurestep* | $37,247 | $30,995 | 20.2% |
| *Futurestep includes recruitment process outsourcing, project recruitment, search and consulting. | |||
Net income
| Q4 2014 (000s) | Q4 2013 (000s) | % growth | |
| Net income | $21,211 | $12,197 | 73.9% |
Guidance
The company estimates net revenue of between $240 million and $250 million in the first quarter of fisal year 2015, a year-over-year increase of between 5.1 percent and 9.4 percent. The company reported it implemented a common technology system to further integrate its legacy business with its recent acquisitions. The company also plans additional actions to rationalize its cost structure.
Share price and market cap
Korn Ferry shares fell 3.71 percent in late morning trading to $29.35. The company had a market cap of $1.46 billion, according to Google.
Full-year results
| FY 2014 (000s) | FY 2013 (000s) | % growth | |
| Net revenue | $960,301 | $812,831 | 18.1% |
| Net income | $72,691 | $33,293 | 118.3% |