Heidrick & Struggles Reports First Quarter 2014 Financial Results
Heidrick & Struggles International, Inc. has announced the financial results for its first quarter ended March 31, 2014.
Consolidated net revenue was $111.1 million in the first quarter, up 7.9 percent from $103.0 million in the 2013 first quarter. Exchange rate fluctuations negatively impacted net revenue by $0.5 million, or less than 1 percent.
Executive Search and Leadership Consulting net revenue increased 7.4 percent year over year, or $7.2 million, to $104.6 million. The increase was driven by a 42.6 percent increase in Europe (approximately 37 percent on a constant currency basis) and a 5.0 percent increase in Asia Pacific (approximately 12 percent on a constant currency basis), partially offset by a 2.7 percent revenue decline in the Americas. From a global practices perspective, the consumer markets, financial services and global technology and services industry groups each achieved double-digit revenue growth, partially offset by declines in the Healthcare and Life Sciences, Education, Nonprofit and Social Enterprise, and Industrial practices.
Revenue from Culture Shaping services increased 16.9 percent, or $0.9 million, to $6.5 million from $5.6 million in the 2013 first quarter. Reported results in the 2013 first quarter excluded $2.0 million of pre-acquisition deferred revenue that the company was unable to recognize related to Senn Delaney as a result of purchase accounting.
The company ended the first quarter with 303 Executive Search and Leadership Consulting consultants compared to 293 at December 31, 2013 and 322 at March 31, 2013. Productivity, as measured by annualized net revenue per consultant, increased to $1.4 million compared to $1.2 million in the 2013 first quarter. Specific to executive search, the company's primary business, the number of confirmed searches increased 8.5 percent compared to the 2013 first quarter and the average revenue per executive search was $101,200 compared to $103,100 in the 2013 first quarter.
"Our first quarter results show progress but also significant room for growth and improved profitability," said Tracy R. Wolstencroft, Heidrick & Struggles' President and Chief Executive Officer. "Net revenue increased 8 percent year over year, with particularly good improvement in Europe, and we saw positive confirmation trends and productivity improvement. I am encouraged by these results and by the growth in our consultant base since the end of the year."
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search-consult is published by Dillistone Systems, supplier of FileFinder Executive Search software. Dillistone Systems is part of Dillistone Group Plc, as are Voyager Recruitment Software and FCP Internet, supplier of the Evolve Recruitment Software SaaS system.