Korn/Ferry International (NYSE: KFY), a global organizational consulting firm, announced first quarter fee revenue of $465.6 million. First quarter diluted loss per share was $0.70 and Adjusted diluted earnings per share was $0.78. Adjusted diluted earnings per share for the first quarter excludes the $106.6 million charge as discussed above and $3.1 million related to retention awards from a prior acquisition, or $1.48 per share.
“I am pleased to report fee revenue of approximately $466 million and strong profits, with Adjusted EBITDA of approximately $71 million during our recently completed first quarter. Overall, our revenues are up 16% year over year, with balanced growth across the firm,” said Gary D. Burnison, CEO of Korn Ferry. “As disclosed last quarter, we are sunsetting our legacy logos and migrating to one unified brand – Korn Ferry. Over the next 15 months, we will continue to move our organization towards an industry, solution and geographic orientation to capture the substantial opportunity we have as an organizational consulting firm.”
- Korn Ferry reports fee revenue of $465.6 million in Q1 FY’19, a 16.0% increase from Q1 FY’18, driven by organic growth in all solutions.
- During the first quarter the Company announced a rebranding campaign under which it is sunsetting all sub-brands and moving to one unified brand – Korn Ferry. In connection with this, the Company incurred a charge in the amount of $106.6 million related to tradenames from prior acquisitions that the Company will no longer be using, resulting in an operating loss of $55.1 million with an operating margin of (11.8%). Adjusted EBITDA was $70.8 million with Adjusted EBITDA margin of 15.2%.
- Q1 FY’19 diluted loss per share was $0.70 compared to diluted earnings per share of $0.51 in Q1 FY’18. Adjusted diluted earnings per share was $0.78 in Q1 FY’19 compared to Adjusted diluted earnings per share in Q1 FY’18 of $0.55.
- The Company declared a quarterly dividend of $0.10 per share on September 5, 2018 payable on October 15, 2018 to stockholders of record on September 28, 2018.