Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Entity Registrant Name | 'Hudson Global, Inc. |
Entity Central Index Key | '0001210708 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 32,874,968 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenue | $161,861 | [1] | $165,678 | [1] |
Direct costs | 104,332 | [2] | 109,001 | [2] |
Gross margin | 57,529 | 56,677 | ||
Operating expenses: | ' | ' | ||
Selling, general and administrative expenses | 59,603 | 61,589 | ||
Depreciation and amortization | 1,488 | 1,648 | ||
Business reorganization expenses | 114 | 1,982 | ||
Operating income (loss) | -3,676 | -8,542 | ||
Non-operating income (expense): | ' | ' | ||
Interest income (expense), net | -144 | -146 | ||
Other income (expense), net | -200 | 270 | ||
Income (loss) before provision for income taxes | -4,020 | -8,418 | ||
Provision for (benefit from) income taxes | 524 | -177 | ||
Net income (loss) | -4,544 | -8,241 | ||
Earnings (loss) per share: | ' | ' | ||
Basic (per share) | ($0.14) | ($0.25) | ||
Diluted (per share) | ($0.14) | ($0.25) | ||
Weighted-average shares outstanding: | ' | ' | ||
Basic (in shares) | 32,641 | 32,344 | ||
Diluted (in shares) | 32,641 | 32,344 | ||
Comprehensive income (loss): | ' | ' | ||
Net income (loss) | -4,544 | -8,241 | ||
Other comprehensive income (loss): | ' | ' | ||
Foreign currency translation adjustment, net of income taxes | 1,029 | -1,762 | ||
Pension Liability Adjustment | -25 | 15 | ||
Total other comprehensive income (loss), net of income taxes | 1,004 | -1,747 | ||
Comprehensive income (loss) | ($3,540) | ($9,988) | ||
[1] | Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | |||
[2] | Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other category. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $22,110 | $37,378 |
Accounts receivable, net of allowance for doubtful accounts | 99,335 | 85,901 |
Prepaid and other | 11,494 | 8,762 |
Total current assets | 132,939 | 132,041 |
Property and equipment, net | 14,104 | 13,822 |
Deferred tax assets, non-current | 6,538 | 7,124 |
Other assets, non-current | 5,918 | 5,842 |
Total assets | 159,499 | 158,829 |
Current liabilities: | ' | ' |
Accounts payable | 8,618 | 9,747 |
Accrued expenses and other current liabilities | 60,613 | 54,722 |
Short-term borrowings | 547 | 476 |
Accrued business reorganization expenses | 2,716 | 3,810 |
Total current liabilities | 72,494 | 68,755 |
Deferred rent and tenant improvement contributions | 7,396 | 6,120 |
Income tax payable, non-current | 2,909 | 3,872 |
Other non-current liabilities | 5,465 | 5,697 |
Total liabilities | 88,264 | 84,444 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 34 | 34 |
Additional paid-in capital | 475,957 | 475,461 |
Accumulated deficit | -421,966 | -417,422 |
Accumulated other comprehensive income (loss), net of applicable tax | 18,177 | 17,173 |
Treasury stock, at cost | -967 | -861 |
Total stockholders' equity | 71,235 | 74,385 |
Total liabilities and stockholders' equity | $159,499 | $158,829 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $1,084 | $1,108 |
Preferred stock, par value (per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, issued | 33,115 | 33,543 |
Treasury stock, shares | 240 | 211 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($4,544) | ($8,241) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 1,488 | 1,648 |
Provision for (recovery of) doubtful accounts | 0 | 15 |
Provision for (benefit from) deferred income taxes | 276 | -476 |
Stock-based compensation | 496 | 674 |
Other, net | 96 | 200 |
Changes in assets and liabilities: | ' | ' |
Decrease (increase) in accounts receivable | -12,431 | 2,003 |
Decrease (increase) in prepaid and other assets | -2,267 | -431 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 4,435 | 45 |
Increase (decrease) in accrued business reorganization expenses | -1,181 | 791 |
Net cash provided by (used in) operating activities | -13,632 | -3,772 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -1,498 | -946 |
Net cash provided by (used in) investing activities | -1,498 | -946 |
Cash flows from financing activities: | ' | ' |
Borrowings under credit agreements | 4,119 | 2,747 |
Repayments under credit agreements | -4,050 | -2,747 |
Repayment of capital lease obligations | -122 | -114 |
Purchase of restricted stock from employees | -106 | -359 |
Net cash provided by (used in) financing activities | -159 | -473 |
Effect of exchange rates on cash and cash equivalents | 21 | -952 |
Net increase (decrease) in cash and cash equivalents | -15,268 | -6,143 |
Cash and cash equivalents, beginning of the period | 37,378 | 38,653 |
Cash and cash equivalents, end of the period | 22,110 | 32,510 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest | 67 | 71 |
Cash payments during the period for income taxes, net of refunds | $375 | $374 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2013 | $74,385 | $34 | $475,461 | ($417,422) | $17,173 | ($861) |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 33,332 | ' | ' | ' | ' |
Net income (loss) | -4,544 | ' | ' | -4,544 | ' | ' |
Other comprehensive income (loss), translation adjustments | 1,029 | ' | ' | ' | 1,029 | ' |
Other comprehensive income (loss), pension liability adjustment | -25 | 0 | 0 | 0 | -25 | 0 |
Adjustments Related to Tax Withholding for Share-based Compensation (in shares) | ' | -29 | ' | ' | ' | ' |
Adjustments Related to Tax Withholding for Share-based Compensation | -106 | ' | ' | ' | ' | -106 |
Stock-based compensation (in shares) | ' | -428 | ' | ' | ' | ' |
Stock-based compensation | 496 | ' | 496 | ' | ' | ' |
Ending Balance at Mar. 31, 2014 | $71,235 | $34 | $475,957 | ($421,966) | $18,177 | ($967) |
Ending Balance (in shares) at Mar. 31, 2014 | ' | 32,875 | ' | ' | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
These interim unaudited condensed consolidated financial statements have been prepared in accordance with United States of America (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and related notes of Hudson Global, Inc. and its subsidiaries (the “Company”) filed in its Annual Report on Form 10-K for the year ended December 31, 2013. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of operating revenues and expenses. These estimates are based on management’s knowledge and judgments. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows at the dates and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All significant intra-entity balances and transactions between and among the Company and its subsidiaries have been eliminated in consolidation. | |
Certain prior year amounts have been reclassified to conform to the current period presentation. |
DESCRIPTION_OF_BUSINESS_DESCRI
DESCRIPTION OF BUSINESS DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2014 | |
Description of Business [Abstract] | ' |
Nature of Operations [Text Block] | ' |
NOTE 2 – DESCRIPTION OF BUSINESS | |
The Company is comprised of the operations, assets and liabilities of the three Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe (“Hudson regional businesses” or “Hudson”). The Company provides specialized professional-level recruitment and related talent solutions. The Company’s core service offerings include Permanent Recruitment, Contract Consulting, Legal eDiscovery, Recruitment Process Outsourcing (“RPO”) and Talent Management Solutions. | |
The Company operates in 20 countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. See Note 16 for further details regarding the reportable segments. | |
Corporate expenses are reported separately from the reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, tax, marketing, information technology and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them and have been allocated to the segments as management service fees and are included in the segments’ non-operating other income (expense). | |
The Company’s core service offerings include those services described below. | |
Permanent Recruitment: Offered on both a retained and contingent basis, Hudson’s Permanent Recruitment services leverage its consultants, psychologists and other professionals in the development and delivery of its proprietary methods to identify, select and engage the best-fit talent for critical client roles. | |
Contract Consulting: In Contract Consulting, Hudson provides a range of project management, interim management and professional contract staffing services. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson-employed professionals – either individually or as a team – are placed with client organizations for a defined period of time based on a client's specific business need. | |
Legal eDiscovery: Hudson's Legal eDiscovery services comprise eDiscovery solutions, managed document review (encompassing logistical deployment, project management, process design and productivity management) and contract attorney staffing and are included within temporary contracting services. The most comprehensive of these is Hudson's full-service eDiscovery solution, providing an integrated system of discovery management and review technology deployment for both corporate and law firm clients. | |
RPO: Hudson RPO delivers both permanent recruitment and temporary contracting outsourced recruitment solutions tailored to the individual needs of primarily mid-to-large-cap multinational companies. Hudson RPO's delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients' ongoing business needs. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting. | |
Talent Management Solutions: Featuring embedded proprietary talent assessment and selection methodologies, Hudson’s Talent Management capability encompasses services such as talent assessment (utilizing a variety of competency, attitude and experiential testing), interview training, executive coaching, employee development and outplacement. |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Recently Issued Accounting Pronouncements [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, “Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification Topic 740, Income Taxes" ("ASU 2013-11"). ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The Company adopted the ASU 2013-11 prospectively on January 1, 2014. As of March 31, 2014, the Company reclassified $713 of its unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward in the Condensed Consolidated Balance Sheet. | |
There have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company's Condensed Consolidated Financial Statements. |
REVENUE_DIRECT_COSTS_AND_GROSS
REVENUE, DIRECT COSTS AND GROSS MARGIN | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Revenue, Direct Costs and Gross Margin [Abstract] | ' | |||||||||||||||
REVENUE, DIRECT COSTS AND GROSS MARGIN | ' | |||||||||||||||
REVENUE, DIRECT COSTS AND GROSS MARGIN | ||||||||||||||||
The Company’s revenue, direct costs and gross margin were as follows: | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 119,333 | $ | 30,130 | $ | 12,398 | $ | 161,861 | ||||||||
Direct costs (1) | 100,914 | 486 | 2,932 | 104,332 | ||||||||||||
Gross margin | $ | 18,419 | $ | 29,644 | $ | 9,466 | $ | 57,529 | ||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 128,841 | $ | 26,481 | $ | 10,356 | $ | 165,678 | ||||||||
Direct costs (1) | 106,366 | 610 | 2,025 | 109,001 | ||||||||||||
Gross margin | $ | 22,475 | $ | 25,871 | $ | 8,331 | $ | 56,677 | ||||||||
-1 | Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other category. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||
Incentive Compensation Plan | ||||||||||||||
The Company maintains the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated April 26, 2012 (the “ISAP”), pursuant to which it can issue equity-based compensation incentives to eligible participants. The ISAP permits the granting of stock options, restricted stock, restricted stock units, and other types of equity-based awards. The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) will establish such conditions as it deems appropriate on the granting or vesting of stock options, restricted stock, restricted stock units and other types of equity-based awards. The Company grants primarily restricted stock to its employees, although the Company has recently also granted restricted stock units to certain of its employees. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock of the Company issued under the ISAP. | ||||||||||||||
The Compensation Committee administers the ISAP and may designate any of the following as a participant under the ISAP: any officer or other employee of the Company or its affiliates or individuals engaged to become an officer or employee; consultants or other independent contractors who provide services to the Company or its affiliates; and non-employee directors of the Company. As of March 31, 2014, there were 2,646,103 shares of the Company’s common stock available for future issuance under the ISAP. | ||||||||||||||
A summary of the quantity and vesting conditions for stock-based awards granted to the Company's employees for the three months ended March 31, 2014 was as follows: | ||||||||||||||
Vesting conditions | Number of Shares of Restricted Stock Granted | |||||||||||||
Vest 100% on the third anniversary of the grant date with service conditions only | 5,000 | |||||||||||||
The Company also maintains the Director Deferred Share Plan (the “Director Plan”) pursuant to which it can issue restricted stock units to its non-employee directors. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock issued under the ISAP upon a director ceasing service as a member of the Board of Directors of the Company. The restricted stock units vest immediately upon grant and are credited to each of the non-employee director's retirement accounts under the Director Plan. During the three months ended March 31, 2014, the Company did not grant any restricted stock units to its non-employee directors pursuant to the Director Plan. | ||||||||||||||
For the three months ended March 31, 2014 and 2013, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units was as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options | $ | 57 | $ | 144 | ||||||||||
Restricted stock | 409 | 480 | ||||||||||||
Restricted stock units | 30 | 50 | ||||||||||||
Total | $ | 496 | $ | 674 | ||||||||||
Stock Options | ||||||||||||||
As of March 31, 2014, the Company had approximately $27 of unrecognized stock-based compensation expense related to outstanding unvested stock options. The Company expects to recognize that cost over a weighted average service period of 0.12 years. | ||||||||||||||
Changes in the Company’s stock options for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Options | Average | Options | Average | |||||||||||
Exercise Price | Exercise Price | |||||||||||||
per Share | per Share | |||||||||||||
Options outstanding at January 1, | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | ||||||||
Expired/forfeited | (14,050 | ) | 13.64 | (12,700 | ) | 13.11 | ||||||||
Options outstanding at March 31, | 786,300 | 9.07 | 1,225,950 | 11.19 | ||||||||||
Options exercisable at March 31, | 586,300 | $ | 10.4 | 825,950 | $ | 14.11 | ||||||||
Restricted Stock | ||||||||||||||
As of March 31, 2014, the Company had approximately $705 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock. The Company expects to recognize that cost over a weighted average service period of 1.82 years. | ||||||||||||||
Changes in the Company’s restricted stock for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares of | Average | Shares of | Average | |||||||||||
Restricted | Grant Date | Restricted | Grant Date | |||||||||||
Stock | Fair Value | Stock | Fair Value | |||||||||||
Unvested restricted stock at January 1, | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | ||||||||
Granted | 5,000 | 3.87 | — | — | ||||||||||
Vested | (143,645 | ) | 5.75 | (300,263 | ) | 5.35 | ||||||||
Forfeited | (435,896 | ) | 2.3 | (329,460 | ) | 4.59 | ||||||||
Unvested restricted stock at March 31, | 423,261 | $ | 2.8 | 399,193 | $ | 4.73 | ||||||||
Restricted Stock Units | ||||||||||||||
As of March 31, 2014, the Company had approximately $61 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock units. The Company expects to recognize that cost over a weighted average service period of 1.1 years. | ||||||||||||||
Changes in the Company’s restricted stock units for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Restricted | Average | Restricted | Average | |||||||||||
Stock Units | Grant-Date | Stock Units | Grant-Date | |||||||||||
Fair Value | Fair Value | |||||||||||||
Unvested restricted stock units at January 1, | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | ||||||||
Vested | (2,792 | ) | 3.16 | — | — | |||||||||
Forfeited | (48,160 | ) | 2.42 | — | — | |||||||||
Unvested restricted stock units at March 31, | 64,917 | $ | 4.58 | 100,000 | $ | 5.18 | ||||||||
Defined Contribution Plan and Employer-matching contributions | ||||||||||||||
The Company maintains the Hudson Global, Inc. 401(k) Savings Plan (the “401(k) plan”). The 401(k) plan allows eligible employees to contribute up to 15% of their earnings to the 401(k) plan. The Company has the discretion to match employees’ contributions up to 3% of the employees' earnings through a contribution of the Company’s common stock to the 401(k) plan. Vesting of the Company’s contribution occurs over a five-year period. For the three months ended March 31, 2014 and 2013, the Company’s current year expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
($ in thousands, except otherwise stated) | 2014 | 2013 | ||||||||||||
Expense recognized for the 401(k) plan | $ | 162 | $ | 190 | ||||||||||
Contributions to satisfy prior years' employer-matching liability | ||||||||||||||
Additional cash contribution made for employer-matching liability | $ | — | $ | 651 | ||||||||||
Total contribution made for employer-matching liability | $ | — | $ | 651 | ||||||||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended | ||
Mar. 31, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
Income Tax Disclosure | ' | ||
INCOME TAXES | |||
Under Accounting Standards Codification ("ASC") 270, “Interim Reporting”, and ASC 740-270, “Income Taxes – Intra Period Tax Allocation”, the Company is required to adjust its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate. Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. Applying the provisions of ASC 270 and ASC 740-270 could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. | |||
Effective Tax Rate | |||
The provision for income taxes for the three months ended March 31, 2014 was $524 on a pre-tax loss of $4,020, compared to a benefit from income taxes of $177 on pre-tax loss of $8,418 for the same period in 2013. The Company’s effective income tax rate was negative 13.0% and positive 2.1% for the three months ended March 31, 2014 and 2013, respectively. For three months ended March 31, 2014, the effective tax rate differed from the U.S. Federal statutory rate of 35% due to the inability of the Company to recognize tax benefits on losses in the U.S. and tax provision recorded for certain foreign jurisdictions where the Company has positive earnings. For the three months ended March 31, 2013, the reason the effective tax rate differed from the U.S. Federal statutory rate of 35% was due primarily to the Company's inability to benefit from losses in certain foreign jurisdictions. | |||
Uncertain Tax Positions | |||
As of March 31, 2014 and December 31, 2013, the Company had $2,909 and $3,872, respectively, of unrecognized tax benefits, including interest and penalties, which if recognized in the future, would lower the Company’s annual effective income tax rate. Accrued interest and penalties were $747 and $786 as of March 31, 2014 and December 31, 2013, respectively. Estimated interest and penalties are classified as part of the provision for income taxes in the Company’s Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) and totaled to a benefit of $5 and a provision of $19 for the three months ended March 31, 2014 and 2013, respectively. | |||
In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities. Tax years with net operating losses ("NOLs") remain open until such losses expire or until the statutes of limitations for those years when the NOLs are used expire. As of March 31, 2014, the Company's open tax years, which remain subject to examination by the relevant tax authorities, were principally as follows: | |||
Year | |||
Earliest tax years which remain subject to examination by the relevant tax authorities: | |||
U.S. Federal | 2010 | ||
Majority of U.S. state and local jurisdictions | 2009 | ||
United Kingdom | 2012 | ||
Australia | 2009 | ||
Majority of other non-U.S. jurisdictions | 2008 | ||
The Company believes that its tax reserves are adequate for all years that remain subject to examination or are currently under examination. | |||
Based on information available as of March 31, 2014, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $500 to $700 over the next 12 months as a result of projected resolutions of global tax examinations and controversies and potential expirations of the applicable statutes of limitations. |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS (LOSS) PER SHARE | ' | ||||||||
EARNINGS (LOSS) PER SHARE | |||||||||
Basic earnings (loss) per share (“EPS”) is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options “in-the-money” and unvested restricted stock. The dilutive impact of stock options, unvested restricted stock, and unvested restricted stock units is determined by applying the “treasury stock” method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period; or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met. | |||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three months ended March 31, 2014 and 2013 were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Earnings (loss) per share ("EPS"): | |||||||||
Basic | $ | (0.14 | ) | $ | (0.25 | ) | |||
Diluted | $ | (0.14 | ) | $ | (0.25 | ) | |||
EPS numerator - basic and diluted: | |||||||||
Net income (loss) | $ | (4,544 | ) | $ | (8,241 | ) | |||
EPS denominator (in thousands): | |||||||||
Weighted average common stock outstanding - basic | 32,641 | 32,344 | |||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | |||||||
Weighted average number of common stock outstanding - diluted | 32,641 | 32,344 | |||||||
(a) | For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. | ||||||||
The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three months ended March 31, 2014 and 2013 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Unvested restricted stock | 423,261 | 399,193 | |||||||
Unvested restricted stock units | 64,917 | 100,000 | |||||||
Stock options | 786,300 | 1,225,950 | |||||||
Total | 1,274,478 | 1,725,143 | |||||||
RESTRICTED_CASH
RESTRICTED CASH | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Restricted Cash and Investments [Abstract] | ' | |||||||
RESTRICTED CASH | ' | |||||||
RESTRICTED CASH | ||||||||
A summary of the Company’s restricted cash included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 was as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Included under the caption "Other assets": | ||||||||
Collateral accounts | $ | 619 | $ | 619 | ||||
Rental deposits | 1,202 | 1,195 | ||||||
Total amount under the caption "Other assets": | $ | 1,821 | $ | 1,814 | ||||
Included under the caption "Prepaid and other": | ||||||||
Client guarantees | $ | 68 | $ | 61 | ||||
Other | 163 | 172 | ||||||
Total amount under the caption "Prepaid and other" | $ | 231 | $ | 233 | ||||
Total restricted cash | $ | 2,052 | $ | 2,047 | ||||
Collateral accounts include primarily deposits held under a collateral trust agreement, which supports the Company’s workers’ compensation insurance policy. The rental deposits are with banks and include amounts held as guarantees for the rent on the Company’s offices in the Netherlands and rental deposits from sub-tenants in the United Kingdom ("U.K."). The client guarantees are held in banks in Belgium as deposits for various client projects. Other includes a deposit for a business license in Switzerland and social tax payment reserves, which are held with banks for employee social tax payments required by law in the Netherlands. |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ||||||||
As of March 31, 2014 and December 31, 2013, property and equipment, net were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer equipment | $ | 9,505 | $ | 9,395 | ||||
Furniture and equipment | 6,322 | 6,379 | ||||||
Capitalized software costs | 28,152 | 26,963 | ||||||
Leasehold improvements | 21,477 | 20,816 | ||||||
65,456 | 63,553 | |||||||
Less: accumulated depreciation and amortization | 51,352 | 49,731 | ||||||
Property and equipment, net | $ | 14,104 | $ | 13,822 | ||||
The Company had expenditures of approximately $1,277 and $595 for acquired property and equipment, mainly consisting of software and leasehold improvements, which had not been placed in service as of March 31, 2014 and December 31, 2013, respectively. Depreciation expense is not recorded for such assets until they are placed in service. | ||||||||
Non-Cash Capital Expenditures | ||||||||
The Company has acquired certain computer equipment under capital lease agreements. The current portion of the capital lease obligations are included under the caption “Accrued expenses and other current liabilities” in the Condensed Consolidated Balance Sheets and the non-current portion of the capital lease obligations are included under the caption “Other non-current liabilities” in the Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013. A summary of the Company’s equipment acquired under capital lease agreements was as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Capital lease obligation, current | $ | 198 | $ | 315 | ||||
Capital lease obligation, non-current | $ | 3 | $ | 9 | ||||
The Company did not acquire any property and equipment under capital lease agreements during the three months ended March 31, 2014 and 2013. Capital expenditures for the three months ended March 31, 2014 included $630 of landlord-funded tenant improvements for the Company's leased properties in Perth and Melbourne, Australia. |
GOODWILL
GOODWILL | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Goodwill Disclosure [Abstract] | ' | |||
GOODWILL | ' | |||
GOODWILL | ||||
The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption of Other Assets in the accompanying Condensed Consolidated Balance Sheets, for the three months ended March 31, 2014. The goodwill related to the earn-out payment made in 2010 for the Company’s 2007 acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd. | ||||
Carrying Value | ||||
2014 | ||||
Goodwill, January 1, | $ | 2,078 | ||
Currency translation | (54 | ) | ||
Goodwill, March 31, | $ | 2,024 | ||
BUSINESS_REORGANIZATION_EXPENS
BUSINESS REORGANIZATION EXPENSES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
BUSINESS REORGANIZATION EXPENSES | ' | |||||||||||||||||||
BUSINESS REORGANIZATION EXPENSES | ||||||||||||||||||||
Initiated in 2012 and extended during 2013, the Company took steps to accelerate its strategic initiatives with the implementation of the 2012 plan of reorganization ("2012 Plan"). The Company's 2012 Plan is focused on (1) redirecting resources to high-potential strategic businesses, (2) optimizing operations in under-performing sectors and markets to deliver improved performance, re-engineering of the delivery model, and consolidating operations globally, and (3) streamlining back office support areas and business processes, and establishing global centers of excellence, to gain efficiencies of operation. For the three months ended March 31, 2014, restructuring charges associated with these initiatives for the 2012 Plan primarily included employee separation costs and a lease termination payment for an office in the U.S. The actions identified above were completed in the three months ended March 31, 2014. | ||||||||||||||||||||
The Company’s Board previously approved other reorganization plans in 2009, 2008 and 2006 (“Previous Plans”) to streamline the Company’s support operations and the Previous Plans included actions to reduce support functions to match them to the scale of the business, to exit underutilized properties and to eliminate contracts for certain discontinued services. These actions resulted in costs for lease termination payments, employee termination benefits and contract cancellations. Business reorganization expenses for the three months ended March 31, 2014 and 2013 by plan were as follows: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Previous Plans | $ | — | $ | 36 | ||||||||||||||||
2012 Plan | 114 | 1,946 | ||||||||||||||||||
Total | $ | 114 | $ | 1,982 | ||||||||||||||||
The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to prior restructuring plans that were incurred or recovered during the three months ended March 31, 2014. The amounts in the “Changes in Estimate” and “Additional Charges” columns are classified as business reorganization expenses in the Company’s Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). Amounts in the “Payments” column represent primarily the cash payments associated with the reorganization plans. Changes in the accrued business reorganization expenses for the three months ended March 31, 2014 were as follows: | ||||||||||||||||||||
For The Three Months Ended March 31, 2014 | December 31, | Changes in | Additional | Payments | March 31, | |||||||||||||||
2013 | Estimate | Charges | 2014 | |||||||||||||||||
Lease termination payments | $ | 2,445 | $ | — | $ | 92 | $ | (244 | ) | $ | 2,293 | |||||||||
Employee termination benefits | 1,780 | — | 15 | (993 | ) | 802 | ||||||||||||||
Other associated costs | 56 | — | 7 | (35 | ) | 28 | ||||||||||||||
Total | $ | 4,281 | $ | — | $ | 114 | $ | (1,272 | ) | $ | 3,123 | |||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Consulting, Employment and Non-compete Agreements | ||||||||
The Company has entered into various consulting, and employment agreements with certain key members of management. These agreements generally (i) are one year in length, (ii) contain restrictive covenants, (iii) under certain circumstances, provide for compensation and subject to providing the Company with a release, severance payments, and (iv) are automatically renewed annually unless either party gives sufficient notice of termination. | ||||||||
Litigation and Complaints | ||||||||
The Company is subject, from time to time, to various claims, lawsuits, contracts disputes and other complaints from, for example, clients, candidates, suppliers, landlords for both leased and subleased properties, former and current employees, and regulators or tax authorities arising in the ordinary course of business. The Company routinely monitors claims such as these, and records provisions for losses when the claim becomes probable and the amount due is estimable. Although the outcome of these claims cannot be determined, the Company believes that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity. | ||||||||
For matters that have reached the threshold of probable and estimable, the Company has established reserves for legal, regulatory and other contingent liabilities. The Company’s reserves were $334 and $745 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||
Asset Retirement Obligations | ||||||||
The Company has certain asset retirement obligations that are primarily the result of legal obligations for the removal of leasehold improvements and restoration of premises to their original condition upon termination of leases. The asset retirement obligations are included under the caption “Other non-current liabilities” in the Condensed Consolidated Balance Sheets. The Company’s asset retirement obligations that are included in the Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Total asset retirement obligations | $ | 2,625 | $ | 2,533 | ||||
CREDIT_AGREEMENTS
CREDIT AGREEMENTS | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
CREDIT AGREEMENTS | ' | ||||||
CREDIT AGREEMENTS | |||||||
Credit Agreement with RBS Citizens Business Capital | |||||||
The Company and certain of its North American and U.K. subsidiaries ("Loan Parties") have a senior secured revolving credit facility (as amended, the “Revolver Agreement”) with RBS Citizens Business Capital, a division of RBS Asset Finance, Inc. (“RBS”). The Revolver Agreement provides the Company with the ability to borrow up to $40,000, including the issuance of letters of credit. The Company may increase the maximum borrowing amount to $50,000, subject to certain conditions, including lender acceptance. Extensions of credit are based on a percentage of the eligible accounts receivable from the Company's U.K. and North American operations, less required reserves. The maturity date of the Revolver Agreement is August 5, 2014 and will not be renewed with RBS. The Company is actively working to replace the Revolver Agreement with a credit facility with another lender. Borrowings under the Revolver Agreement are secured by substantially all of the assets of the Company and can be made with an interest rate based on a base rate plus an applicable margin or on the LIBOR rate for the applicable period plus an applicable margin. The applicable margin for each rate is based on the Company’s Fixed Charge Coverage Ratio (as defined in the Revolver Agreement) and is determined as follows: | |||||||
Level | Fixed Charge Coverage Ratio | Base Rate Revolving Loans | LIBOR Revolving Loans or Letter of Credit Obligations | ||||
I | Greater than or equal to 1.25:1.0 | 1.25 | % | 2.25 | % | ||
II | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | 1.5 | % | 2.5 | % | ||
III | Less than 1.10:1.0 | 1.75 | % | 2.75 | % | ||
The details of the Revolver Agreement as of March 31, 2014 were as follows: | |||||||
March 31, 2014 | |||||||
Borrowing base | $ | 27,029 | |||||
Less: adjustments to the borrowing base | |||||||
Minimum availability | (10,000 | ) | |||||
Outstanding letters of credits | (1,741 | ) | |||||
Adjusted borrowing base | 15,288 | ||||||
Less: outstanding borrowing | — | ||||||
Additional borrowing availability | $ | 15,288 | |||||
Interest rates on outstanding borrowing | 5 | % | |||||
The Revolver Agreement contains various restrictions and covenants including: | |||||||
-1 | a requirement to maintain a minimum excess availability of $10,000 until such time that, for two consecutive fiscal quarters, the Company’s Fixed Charge Coverage Ratio is at least 1.2x (such occurrence, a “Trigger Event”), at which time the Company’s required minimum excess availability is reduced to $5,000; | ||||||
-2 | upon the occurrence of a Trigger Event, maintain a minimum required Fixed Charge Coverage Ratio of 1.1x; | ||||||
-3 | maintain a minimum EBITDA (as defined in the Revolver Agreement) for the Company’s North American and U.K. operations of at least $1,000; | ||||||
-4 | a limit on the payment of dividends of not more than $5,000 per year and subject to certain conditions; | ||||||
-5 | restrictions on the ability of the Company to make additional borrowings, acquire, merge or otherwise fundamentally change the ownership of the Company or repurchase the Company’s stock; | ||||||
-6 | a limit on investments, and a limit on acquisitions of not more than $25,000 in cash and $25,000 in non-cash consideration per year, subject to certain conditions set forth in the Revolver Agreement; | ||||||
-7 | a limit on dispositions of assets of not more than $4,000 per year; and | ||||||
-8 | a limit on the aggregate cumulative amount of cash outflows from Loan Parties to affiliates of the Company that are not Loan Parties not to exceed the aggregate cumulative amount of cash inflows from (i) affiliates that are not Loan Parties to Loan Parties, (ii) equity offerings by the Company and (iii) the proceeds of divestiture or asset sales, in the case of each of the following periods, by more than $5,000 for any quarterly compliance testing period beginning after March 1, 2013 or in the aggregate through December 31, 2013 or for any twelve-month period ending as of the end of each fiscal quarter commencing with the twelve-month period ending December 31, 2013. | ||||||
The Company was in compliance with all financial covenants under the Revolver Agreement as of March 31, 2014. | |||||||
Credit Agreement with Westpac Banking Corporation | |||||||
Certain Australian and New Zealand subsidiaries of the Company have a facility agreement with Westpac Banking Corporation and Westpac New Zealand Limited (collectively, “Westpac”). On September 30, 2013, the Company and certain of its Australian and New Zealand subsidiaries entered into a waiver letter to waive compliance with a financial covenant contained in the facility agreement at the September 30, 2013 and December 31, 2013 testing dates, and on December 19, 2013, the Company and certain of its Australian and New Zealand subsidiaries entered into a Deed of Variation to the facility agreement (as amended, the “Facility Agreement”) to amend certain terms and conditions of the Facility Agreement. | |||||||
The Facility Agreement provides three tranches: (1) an invoice discounting facility of up to $13,898 (AUD15,000) (“Tranche A”) for an Australian subsidiary of the Company, the availability under which facility is based on an agreed percentage of eligible accounts receivable; (2) an overdraft facility of up to $3,036 (NZD3,500) (“Tranche B”) for a New Zealand subsidiary of the Company; and (3) a financial guarantee facility of up to $4,633 (AUD5,000) (“Tranche C”) for the Australian subsidiary. | |||||||
The Facility Agreement does not have a stated maturity date and can be terminated by Westpac upon 90 days written notice. Borrowings under Tranche A may be made with an interest rate based on the Invoice Finance 30-day Bank Bill Rate (as defined in the Facility Agreement) plus a margin of 0.90%. Borrowings under Tranche B may be made with an interest rate based on the Commercial Lending Rate (as defined in the Facility Agreement) plus a margin of 0.83%. Each of Tranche A and Tranche B bears a fee, payable monthly, equal to 0.90% and 0.65%, respectively, of the size of Westpac’s commitment under such tranche. Borrowings under Tranche C may be made incurring a fee equal to 1.80% of the face value of the financial guarantee requested. Amounts owing under the Facility Agreement are secured by substantially all of the assets of the Australian subsidiary, its Australian parent company and the New Zealand subsidiary (collectively, the “Obligors”) and certain of their subsidiaries. | |||||||
The details of the Facility Agreement as of March 31, 2014 were as follows: | |||||||
March 31, | |||||||
2014 | |||||||
Tranche A: | |||||||
Borrowing capacity | $ | 13,898 | |||||
Less: outstanding borrowing | (208 | ) | |||||
Additional borrowing availability | $ | 13,690 | |||||
Interest rates on outstanding borrowing | 4.58 | % | |||||
Tranche B: | |||||||
Borrowing capacity | $ | 3,036 | |||||
Less: outstanding borrowing | — | ||||||
Additional borrowing availability | $ | 3,036 | |||||
Interest rates on outstanding borrowing | 6.03 | % | |||||
Tranche C: | |||||||
Financial guarantee capacity | $ | 4,633 | |||||
Less: outstanding financial guarantee requested | (3,276 | ) | |||||
Additional availability for financial guarantee | $ | 1,357 | |||||
Interest rates on financial guarantee requested | 1.8 | % | |||||
The Facility Agreement contains various restrictions and covenants applicable to the Obligors and certain of their subsidiaries, including: (a) a requirement that the Obligors maintain (1) a minimum Tangible Net Worth (as defined in the Facility Agreement) as of the last day of each calendar quarter of not less than the higher of 85% of the Tangible Net Worth as of the last day of the previous calendar year and $16,214 (AUD17,500); (2) a minimum Fixed Charge Coverage Ratio (as defined in the Facility Agreement) of 1.0x for the trailing twelve-month period at March 31, 2014 testing date, 1.1x at the June 30, 2014 testing date and 1.5x at all other testing dates thereafter; and (3) a maximum Borrowing Base Ratio (as defined in the Facility Agreement) as of the last day of each calendar quarter of not more than 0.8; and (b) a limitation on certain intercompany payments with permitted payments outside the Obligor group restricted to a defined amount derived from the net profits of the Obligors and their subsidiaries. The Company was in compliance with all financial covenants under the Facility Agreement as of March 31, 2014. | |||||||
Other Credit Agreements | |||||||
The Company also has lending arrangements with local banks through its subsidiaries in the Netherlands, Belgium and Singapore. As of March 31, 2014, the Netherlands subsidiary could borrow up to $1,913 (€1,389) based on an agreed percentage of accounts receivable related to its operations. The Belgium subsidiary has a $1,377 (€1,000) overdraft facility. Borrowings under the Belgium and the Netherlands lending arrangements may be made using an interest rate based on the one-month EURIBOR plus a margin, and the interest rate under each of these arrangements was 2.74% as of March 31, 2014. The lending arrangement in the Netherlands expires annually each June, but can be renewed for one-year periods at that time. The lending arrangement in Belgium has no expiration date and can be terminated with a 15-day notice period. In Singapore, the Company’s subsidiary can borrow up to $795 (SGD1,000) for working capital purposes. Interest on borrowings under the Singapore overdraft facility is based on the Singapore Prime Rate plus a margin of 1.75%, and it was 6.0% on March 31, 2014. The Singapore overdraft facility expires annually each August, but can be renewed for one-year periods at that time. There was an aggregate of $340 in outstanding borrowings under the Belgium, the Netherlands, and Singapore lending agreements as of March 31, 2014. | |||||||
The average aggregate monthly outstanding borrowings under the Revolver Agreement, Facility Agreement and the various credit agreements in Belgium, the Netherlands and Singapore was $182 for the three months ended March 31, 2014. The weighted average interest rate on all outstanding borrowings as of March 31, 2014 was 5.46%. | |||||||
The Company continues to use the aforementioned credit to support its ongoing global working capital requirements, capital expenditures and other corporate purposes and to support letters of credit. Letters of credit and bank guarantees are used primarily to support office leases. |
SHELF_REGISTRATIONS
SHELF REGISTRATIONS | 3 Months Ended |
Mar. 31, 2014 | |
Shelf Registrations Disclosure [Abstract] | ' |
SHELF REGISTRATIONS | ' |
SHELF REGISTRATION | |
The Company has a shelf registration on file with the SEC to enable it to issue up to 1,350,000 shares of its common stock from time to time in connection with acquisitions of businesses, assets or securities of other companies, whether by purchase, merger or any other form of acquisition or business combination. If any shares are issued using this shelf registration, the Company will not receive any proceeds from these offerings other than the assets, businesses or securities acquired. As of March 31, 2014, all of the shares under the shelf registration were available for issuance. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME ACCUMUATED OTHER COMPREHENSIVE INCOME | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||
NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||
Accumulated other comprehensive income (loss), net of tax, consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments | $ | 18,232 | $ | 17,203 | |||||
Pension plan obligations | (55 | ) | (30 | ) | |||||
Accumulated other comprehensive income (loss) | $ | 18,177 | $ | 17,173 | |||||
SEGMENT_AND_GEOGRAPHIC_DATA
SEGMENT AND GEOGRAPHIC DATA | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
SEGMENT AND GEOGRAPHIC DATA | ' | |||||||||||||||||||||||||||
SEGMENT AND GEOGRAPHIC DATA | ||||||||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||||||
The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated to the reportable segments. Segment information is presented in accordance with ASC 280, “Segments Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes. | ||||||||||||||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Elimination | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | ||||||||||||||||||||||||||
For The Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 26,863 | $ | 56,430 | $ | 78,568 | $ | — | $ | — | $ | 161,861 | ||||||||||||||||
Inter-segment revenue | — | — | 79 | — | (79 | ) | — | |||||||||||||||||||||
Total revenue | $ | 26,863 | $ | 56,430 | $ | 78,647 | $ | — | $ | (79 | ) | $ | 161,861 | |||||||||||||||
Gross margin, from external customers | $ | 6,666 | $ | 20,911 | $ | 29,952 | $ | — | $ | — | $ | 57,529 | ||||||||||||||||
Inter-segment gross margin | (3 | ) | (70 | ) | 73 | — | — | — | ||||||||||||||||||||
Total gross margin | $ | 6,663 | $ | 20,841 | $ | 30,025 | $ | — | $ | — | $ | 57,529 | ||||||||||||||||
Business reorganization expenses | $ | 91 | $ | — | $ | 23 | $ | — | $ | — | $ | 114 | ||||||||||||||||
EBITDA (loss) (a) | $ | (1,110 | ) | $ | (305 | ) | $ | 1,153 | $ | (2,126 | ) | $ | — | $ | (2,388 | ) | ||||||||||||
Depreciation and amortization | 225 | 745 | 357 | 161 | — | 1,488 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | — | (130 | ) | 130 | — | — | |||||||||||||||||||||
Interest income (expense), net | (7 | ) | (42 | ) | 11 | (106 | ) | — | (144 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,342 | ) | $ | (1,092 | ) | $ | 677 | $ | (2,263 | ) | $ | — | $ | (4,020 | ) | ||||||||||||
As of March 31, 2014 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 16,427 | $ | 31,258 | $ | 51,650 | $ | — | $ | — | $ | 99,335 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 1,492 | $ | 9,550 | $ | 3,526 | $ | 1,533 | $ | — | $ | 16,101 | ||||||||||||||||
Total assets | $ | 19,688 | $ | 58,223 | $ | 76,718 | $ | 4,870 | $ | — | $ | 159,499 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For The Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 37,223 | $ | 56,201 | $ | 72,254 | $ | — | $ | — | $ | 165,678 | ||||||||||||||||
Inter-segment revenue | (2 | ) | (1 | ) | 25 | — | (22 | ) | — | |||||||||||||||||||
Total revenue | $ | 37,221 | $ | 56,200 | $ | 72,279 | $ | — | $ | (22 | ) | $ | 165,678 | |||||||||||||||
Gross margin, from external customers | $ | 8,144 | $ | 21,492 | $ | 27,041 | $ | — | $ | — | $ | 56,677 | ||||||||||||||||
Inter-segment gross margin | (2 | ) | (25 | ) | 26 | — | 1 | — | ||||||||||||||||||||
Total gross margin | $ | 8,142 | $ | 21,467 | $ | 27,067 | $ | — | $ | 1 | $ | 56,677 | ||||||||||||||||
Business reorganization expenses | $ | (17 | ) | $ | 102 | $ | 1,871 | $ | 26 | $ | — | $ | 1,982 | |||||||||||||||
EBITDA (loss) (a) | $ | (947 | ) | $ | (867 | ) | $ | (3,452 | ) | $ | (1,358 | ) | $ | — | $ | (6,624 | ) | |||||||||||
Depreciation and amortization | 252 | 830 | 405 | 161 | — | 1,648 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (665 | ) | (106 | ) | 771 | — | — | ||||||||||||||||||||
Interest income (expense), net | (9 | ) | (42 | ) | 6 | (101 | ) | — | (146 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,208 | ) | $ | (2,404 | ) | $ | (3,957 | ) | $ | (849 | ) | $ | — | $ | (8,418 | ) | |||||||||||
As of March 31, 2013 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 23,442 | $ | 31,627 | $ | 47,954 | $ | — | $ | — | $ | 103,023 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 2,100 | $ | 12,380 | $ | 4,703 | $ | 1,810 | $ | — | $ | 20,993 | ||||||||||||||||
Total assets | $ | 28,443 | $ | 69,140 | $ | 75,216 | $ | 9,653 | $ | — | $ | 182,452 | ||||||||||||||||
(a) | Securities and Exchange Commission ("SEC") Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | |||||||||||||||||||||||||||
Geographic Data Reporting | ||||||||||||||||||||||||||||
A summary of revenues for the three months ended March 31, 2014 and 2013 and long-lived assets and net assets by geographic area as of March 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
Information by geographic region | United | Australia | United | Continental | Other | Other | Total | |||||||||||||||||||||
Kingdom | States | Europe | Asia Pacific | Americas | ||||||||||||||||||||||||
For The Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 50,859 | $ | 42,448 | $ | 26,638 | $ | 27,709 | $ | 13,982 | $ | 225 | $ | 161,861 | ||||||||||||||
For The Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 47,078 | $ | 42,042 | $ | 36,952 | $ | 25,175 | $ | 14,160 | $ | 271 | $ | 165,678 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 2,976 | $ | 5,968 | $ | 2,999 | $ | 542 | $ | 3,582 | $ | 34 | $ | 16,101 | ||||||||||||||
Net assets | $ | 22,170 | $ | 18,510 | $ | 10,623 | $ | 8,653 | $ | 11,071 | $ | 208 | $ | 71,235 | ||||||||||||||
As of March 31, 2013 | ||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 3,548 | $ | 8,595 | $ | 3,866 | $ | 1,147 | $ | 3,785 | $ | 52 | $ | 20,993 | ||||||||||||||
Net assets | $ | 25,426 | $ | 29,687 | $ | 21,501 | $ | 6,069 | $ | 13,938 | $ | 247 | $ | 96,868 | ||||||||||||||
(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | ||||||||||||||||||||||||||||
(b) Comprised of property and equipment and intangibles. Corporate assets are included in the United States. |
REVENUE_DIRECT_COSTS_AND_GROSS1
REVENUE, DIRECT COSTS AND GROSS MARGIN Revenue, Direct Costs and Gross Margin (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Revenue, Direct Costs and Gross Margin [Abstract] | ' | |||||||||||||||
Revenue, direct costs and gross margin | ' | |||||||||||||||
The Company’s revenue, direct costs and gross margin were as follows: | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 119,333 | $ | 30,130 | $ | 12,398 | $ | 161,861 | ||||||||
Direct costs (1) | 100,914 | 486 | 2,932 | 104,332 | ||||||||||||
Gross margin | $ | 18,419 | $ | 29,644 | $ | 9,466 | $ | 57,529 | ||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 128,841 | $ | 26,481 | $ | 10,356 | $ | 165,678 | ||||||||
Direct costs (1) | 106,366 | 610 | 2,025 | 109,001 | ||||||||||||
Gross margin | $ | 22,475 | $ | 25,871 | $ | 8,331 | $ | 56,677 | ||||||||
-1 | Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other category. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). |
STOCKBASED_COMPENSATION_StockB
STOCK-BASED COMPENSATION Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock Quantity and Vesting Conditions [Table Text Block] | ' | |||||||||||||
A summary of the quantity and vesting conditions for stock-based awards granted to the Company's employees for the three months ended March 31, 2014 was as follows: | ||||||||||||||
Vesting conditions | Number of Shares of Restricted Stock Granted | |||||||||||||
Vest 100% on the third anniversary of the grant date with service conditions only | 5,000 | |||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||
For the three months ended March 31, 2014 and 2013, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units was as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options | $ | 57 | $ | 144 | ||||||||||
Restricted stock | 409 | 480 | ||||||||||||
Restricted stock units | 30 | 50 | ||||||||||||
Total | $ | 496 | $ | 674 | ||||||||||
Changes in stock options | ' | |||||||||||||
Changes in the Company’s stock options for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Options | Average | Options | Average | |||||||||||
Exercise Price | Exercise Price | |||||||||||||
per Share | per Share | |||||||||||||
Options outstanding at January 1, | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | ||||||||
Expired/forfeited | (14,050 | ) | 13.64 | (12,700 | ) | 13.11 | ||||||||
Options outstanding at March 31, | 786,300 | 9.07 | 1,225,950 | 11.19 | ||||||||||
Options exercisable at March 31, | 586,300 | $ | 10.4 | 825,950 | $ | 14.11 | ||||||||
Changes in restricted stock | ' | |||||||||||||
Changes in the Company’s restricted stock for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares of | Average | Shares of | Average | |||||||||||
Restricted | Grant Date | Restricted | Grant Date | |||||||||||
Stock | Fair Value | Stock | Fair Value | |||||||||||
Unvested restricted stock at January 1, | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | ||||||||
Granted | 5,000 | 3.87 | — | — | ||||||||||
Vested | (143,645 | ) | 5.75 | (300,263 | ) | 5.35 | ||||||||
Forfeited | (435,896 | ) | 2.3 | (329,460 | ) | 4.59 | ||||||||
Unvested restricted stock at March 31, | 423,261 | $ | 2.8 | 399,193 | $ | 4.73 | ||||||||
Changes in restricted stock units | ' | |||||||||||||
Changes in the Company’s restricted stock units for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Restricted | Average | Restricted | Average | |||||||||||
Stock Units | Grant-Date | Stock Units | Grant-Date | |||||||||||
Fair Value | Fair Value | |||||||||||||
Unvested restricted stock units at January 1, | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | ||||||||
Vested | (2,792 | ) | 3.16 | — | — | |||||||||
Forfeited | (48,160 | ) | 2.42 | — | — | |||||||||
Unvested restricted stock units at March 31, | 64,917 | $ | 4.58 | 100,000 | $ | 5.18 | ||||||||
Schedule of expenses and contributions for the prior years' employer-matching liability for the 401(k) plan | ' | |||||||||||||
For the three months ended March 31, 2014 and 2013, the Company’s current year expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
($ in thousands, except otherwise stated) | 2014 | 2013 | ||||||||||||
Expense recognized for the 401(k) plan | $ | 162 | $ | 190 | ||||||||||
Contributions to satisfy prior years' employer-matching liability | ||||||||||||||
Additional cash contribution made for employer-matching liability | $ | — | $ | 651 | ||||||||||
Total contribution made for employer-matching liability | $ | — | $ | 651 | ||||||||||
INCOME_TAXES_Open_Years_Subjec
INCOME TAXES Open Years Subject to Tax Examination (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
Open Years Subject to Tax Examination [Table Text Block] | ' | ||
As of March 31, 2014, the Company's open tax years, which remain subject to examination by the relevant tax authorities, were principally as follows: | |||
Year | |||
Earliest tax years which remain subject to examination by the relevant tax authorities: | |||
U.S. Federal | 2010 | ||
Majority of U.S. state and local jurisdictions | 2009 | ||
United Kingdom | 2012 | ||
Australia | 2009 | ||
Majority of other non-U.S. jurisdictions | 2008 |
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of earnings per share, basic and diluted | ' | ||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three months ended March 31, 2014 and 2013 were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Earnings (loss) per share ("EPS"): | |||||||||
Basic | $ | (0.14 | ) | $ | (0.25 | ) | |||
Diluted | $ | (0.14 | ) | $ | (0.25 | ) | |||
EPS numerator - basic and diluted: | |||||||||
Net income (loss) | $ | (4,544 | ) | $ | (8,241 | ) | |||
EPS denominator (in thousands): | |||||||||
Weighted average common stock outstanding - basic | 32,641 | 32,344 | |||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | |||||||
Weighted average number of common stock outstanding - diluted | 32,641 | 32,344 | |||||||
(a) | For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. | ||||||||
Schedule of antidilutive securities excluded from computation of earnings per share | ' | ||||||||
The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three months ended March 31, 2014 and 2013 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Unvested restricted stock | 423,261 | 399,193 | |||||||
Unvested restricted stock units | 64,917 | 100,000 | |||||||
Stock options | 786,300 | 1,225,950 | |||||||
Total | 1,274,478 | 1,725,143 | |||||||
RESTRICTED_CASH_Tables
RESTRICTED CASH (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Restricted Cash and Investments [Abstract] | ' | |||||||
Schedule of restricted cash and cash equivalents | ' | |||||||
A summary of the Company’s restricted cash included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 was as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Included under the caption "Other assets": | ||||||||
Collateral accounts | $ | 619 | $ | 619 | ||||
Rental deposits | 1,202 | 1,195 | ||||||
Total amount under the caption "Other assets": | $ | 1,821 | $ | 1,814 | ||||
Included under the caption "Prepaid and other": | ||||||||
Client guarantees | $ | 68 | $ | 61 | ||||
Other | 163 | 172 | ||||||
Total amount under the caption "Prepaid and other" | $ | 231 | $ | 233 | ||||
Total restricted cash | $ | 2,052 | $ | 2,047 | ||||
PROPERTY_AND_EQUIPMENT_NET_Pro
PROPERTY AND EQUIPMENT, NET Property and Equipment, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property, plant and equipment | ' | |||||||
As of March 31, 2014 and December 31, 2013, property and equipment, net were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer equipment | $ | 9,505 | $ | 9,395 | ||||
Furniture and equipment | 6,322 | 6,379 | ||||||
Capitalized software costs | 28,152 | 26,963 | ||||||
Leasehold improvements | 21,477 | 20,816 | ||||||
65,456 | 63,553 | |||||||
Less: accumulated depreciation and amortization | 51,352 | 49,731 | ||||||
Property and equipment, net | $ | 14,104 | $ | 13,822 | ||||
Schedule of capital leased obligations | ' | |||||||
A summary of the Company’s equipment acquired under capital lease agreements was as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Capital lease obligation, current | $ | 198 | $ | 315 | ||||
Capital lease obligation, non-current | $ | 3 | $ | 9 | ||||
GOODWILL_Tables
GOODWILL (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Goodwill Disclosure [Abstract] | ' | |||
Schedule of goodwill | ' | |||
The goodwill related to the earn-out payment made in 2010 for the Company’s 2007 acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd. | ||||
Carrying Value | ||||
2014 | ||||
Goodwill, January 1, | $ | 2,078 | ||
Currency translation | (54 | ) | ||
Goodwill, March 31, | $ | 2,024 | ||
BUSINESS_REORGANIZATION_EXPENS1
BUSINESS REORGANIZATION EXPENSES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Business reorganization expenses | ' | |||||||||||||||||||
Business reorganization expenses for the three months ended March 31, 2014 and 2013 by plan were as follows: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Previous Plans | $ | — | $ | 36 | ||||||||||||||||
2012 Plan | 114 | 1,946 | ||||||||||||||||||
Total | $ | 114 | $ | 1,982 | ||||||||||||||||
Changes in accrued business reorganization expenses | ' | |||||||||||||||||||
Changes in the accrued business reorganization expenses for the three months ended March 31, 2014 were as follows: | ||||||||||||||||||||
For The Three Months Ended March 31, 2014 | December 31, | Changes in | Additional | Payments | March 31, | |||||||||||||||
2013 | Estimate | Charges | 2014 | |||||||||||||||||
Lease termination payments | $ | 2,445 | $ | — | $ | 92 | $ | (244 | ) | $ | 2,293 | |||||||||
Employee termination benefits | 1,780 | — | 15 | (993 | ) | 802 | ||||||||||||||
Other associated costs | 56 | — | 7 | (35 | ) | 28 | ||||||||||||||
Total | $ | 4,281 | $ | — | $ | 114 | $ | (1,272 | ) | $ | 3,123 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of asset retirement obligations | ' | |||||||
The Company’s asset retirement obligations that are included in the Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Total asset retirement obligations | $ | 2,625 | $ | 2,533 | ||||
CREDIT_AGREEMENTS_Tables
CREDIT AGREEMENTS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Line of Credit Facility [Line Items] | ' | ||||||
Interest rate based on fixed charge coverage ratio | ' | ||||||
The applicable margin for each rate is based on the Company’s Fixed Charge Coverage Ratio (as defined in the Revolver Agreement) and is determined as follows: | |||||||
Level | Fixed Charge Coverage Ratio | Base Rate Revolving Loans | LIBOR Revolving Loans or Letter of Credit Obligations | ||||
I | Greater than or equal to 1.25:1.0 | 1.25 | % | 2.25 | % | ||
II | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | 1.5 | % | 2.5 | % | ||
III | Less than 1.10:1.0 | 1.75 | % | 2.75 | % | ||
RBS Citizens Business Capital | ' | ||||||
Line of Credit Facility [Line Items] | ' | ||||||
Schedule of Line of Credit Facilities | ' | ||||||
The details of the Revolver Agreement as of March 31, 2014 were as follows: | |||||||
March 31, 2014 | |||||||
Borrowing base | $ | 27,029 | |||||
Less: adjustments to the borrowing base | |||||||
Minimum availability | (10,000 | ) | |||||
Outstanding letters of credits | (1,741 | ) | |||||
Adjusted borrowing base | 15,288 | ||||||
Less: outstanding borrowing | — | ||||||
Additional borrowing availability | $ | 15,288 | |||||
Interest rates on outstanding borrowing | 5 | % | |||||
Westpac Bank | ' | ||||||
Line of Credit Facility [Line Items] | ' | ||||||
Schedule of Line of Credit Facilities | ' | ||||||
The details of the Facility Agreement as of March 31, 2014 were as follows: | |||||||
March 31, | |||||||
2014 | |||||||
Tranche A: | |||||||
Borrowing capacity | $ | 13,898 | |||||
Less: outstanding borrowing | (208 | ) | |||||
Additional borrowing availability | $ | 13,690 | |||||
Interest rates on outstanding borrowing | 4.58 | % | |||||
Tranche B: | |||||||
Borrowing capacity | $ | 3,036 | |||||
Less: outstanding borrowing | — | ||||||
Additional borrowing availability | $ | 3,036 | |||||
Interest rates on outstanding borrowing | 6.03 | % | |||||
Tranche C: | |||||||
Financial guarantee capacity | $ | 4,633 | |||||
Less: outstanding financial guarantee requested | (3,276 | ) | |||||
Additional availability for financial guarantee | $ | 1,357 | |||||
Interest rates on financial guarantee requested | 1.8 | % |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||
Accumulated other comprehensive income (loss), net of tax, consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments | $ | 18,232 | $ | 17,203 | |||||
Pension plan obligations | (55 | ) | (30 | ) | |||||
Accumulated other comprehensive income (loss) | $ | 18,177 | $ | 17,173 | |||||
SEGMENT_AND_GEOGRAPHIC_DATA_Se
SEGMENT AND GEOGRAPHIC DATA Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of segment reporting information | ' | |||||||||||||||||||||||||||
Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes. | ||||||||||||||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Elimination | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | ||||||||||||||||||||||||||
For The Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 26,863 | $ | 56,430 | $ | 78,568 | $ | — | $ | — | $ | 161,861 | ||||||||||||||||
Inter-segment revenue | — | — | 79 | — | (79 | ) | — | |||||||||||||||||||||
Total revenue | $ | 26,863 | $ | 56,430 | $ | 78,647 | $ | — | $ | (79 | ) | $ | 161,861 | |||||||||||||||
Gross margin, from external customers | $ | 6,666 | $ | 20,911 | $ | 29,952 | $ | — | $ | — | $ | 57,529 | ||||||||||||||||
Inter-segment gross margin | (3 | ) | (70 | ) | 73 | — | — | — | ||||||||||||||||||||
Total gross margin | $ | 6,663 | $ | 20,841 | $ | 30,025 | $ | — | $ | — | $ | 57,529 | ||||||||||||||||
Business reorganization expenses | $ | 91 | $ | — | $ | 23 | $ | — | $ | — | $ | 114 | ||||||||||||||||
EBITDA (loss) (a) | $ | (1,110 | ) | $ | (305 | ) | $ | 1,153 | $ | (2,126 | ) | $ | — | $ | (2,388 | ) | ||||||||||||
Depreciation and amortization | 225 | 745 | 357 | 161 | — | 1,488 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | — | (130 | ) | 130 | — | — | |||||||||||||||||||||
Interest income (expense), net | (7 | ) | (42 | ) | 11 | (106 | ) | — | (144 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,342 | ) | $ | (1,092 | ) | $ | 677 | $ | (2,263 | ) | $ | — | $ | (4,020 | ) | ||||||||||||
As of March 31, 2014 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 16,427 | $ | 31,258 | $ | 51,650 | $ | — | $ | — | $ | 99,335 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 1,492 | $ | 9,550 | $ | 3,526 | $ | 1,533 | $ | — | $ | 16,101 | ||||||||||||||||
Total assets | $ | 19,688 | $ | 58,223 | $ | 76,718 | $ | 4,870 | $ | — | $ | 159,499 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For The Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 37,223 | $ | 56,201 | $ | 72,254 | $ | — | $ | — | $ | 165,678 | ||||||||||||||||
Inter-segment revenue | (2 | ) | (1 | ) | 25 | — | (22 | ) | — | |||||||||||||||||||
Total revenue | $ | 37,221 | $ | 56,200 | $ | 72,279 | $ | — | $ | (22 | ) | $ | 165,678 | |||||||||||||||
Gross margin, from external customers | $ | 8,144 | $ | 21,492 | $ | 27,041 | $ | — | $ | — | $ | 56,677 | ||||||||||||||||
Inter-segment gross margin | (2 | ) | (25 | ) | 26 | — | 1 | — | ||||||||||||||||||||
Total gross margin | $ | 8,142 | $ | 21,467 | $ | 27,067 | $ | — | $ | 1 | $ | 56,677 | ||||||||||||||||
Business reorganization expenses | $ | (17 | ) | $ | 102 | $ | 1,871 | $ | 26 | $ | — | $ | 1,982 | |||||||||||||||
EBITDA (loss) (a) | $ | (947 | ) | $ | (867 | ) | $ | (3,452 | ) | $ | (1,358 | ) | $ | — | $ | (6,624 | ) | |||||||||||
Depreciation and amortization | 252 | 830 | 405 | 161 | — | 1,648 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (665 | ) | (106 | ) | 771 | — | — | ||||||||||||||||||||
Interest income (expense), net | (9 | ) | (42 | ) | 6 | (101 | ) | — | (146 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,208 | ) | $ | (2,404 | ) | $ | (3,957 | ) | $ | (849 | ) | $ | — | $ | (8,418 | ) | |||||||||||
As of March 31, 2013 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 23,442 | $ | 31,627 | $ | 47,954 | $ | — | $ | — | $ | 103,023 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 2,100 | $ | 12,380 | $ | 4,703 | $ | 1,810 | $ | — | $ | 20,993 | ||||||||||||||||
Total assets | $ | 28,443 | $ | 69,140 | $ | 75,216 | $ | 9,653 | $ | — | $ | 182,452 | ||||||||||||||||
(a) | Securities and Exchange Commission ("SEC") Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | |||||||||||||||||||||||||||
Revenue and long-lived assets by geographic area | ' | |||||||||||||||||||||||||||
A summary of revenues for the three months ended March 31, 2014 and 2013 and long-lived assets and net assets by geographic area as of March 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
Information by geographic region | United | Australia | United | Continental | Other | Other | Total | |||||||||||||||||||||
Kingdom | States | Europe | Asia Pacific | Americas | ||||||||||||||||||||||||
For The Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 50,859 | $ | 42,448 | $ | 26,638 | $ | 27,709 | $ | 13,982 | $ | 225 | $ | 161,861 | ||||||||||||||
For The Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 47,078 | $ | 42,042 | $ | 36,952 | $ | 25,175 | $ | 14,160 | $ | 271 | $ | 165,678 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 2,976 | $ | 5,968 | $ | 2,999 | $ | 542 | $ | 3,582 | $ | 34 | $ | 16,101 | ||||||||||||||
Net assets | $ | 22,170 | $ | 18,510 | $ | 10,623 | $ | 8,653 | $ | 11,071 | $ | 208 | $ | 71,235 | ||||||||||||||
As of March 31, 2013 | ||||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 3,548 | $ | 8,595 | $ | 3,866 | $ | 1,147 | $ | 3,785 | $ | 52 | $ | 20,993 | ||||||||||||||
Net assets | $ | 25,426 | $ | 29,687 | $ | 21,501 | $ | 6,069 | $ | 13,938 | $ | 247 | $ | 96,868 | ||||||||||||||
(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | ||||||||||||||||||||||||||||
(b) Comprised of property and equipment and intangibles. Corporate assets are included in the United States. |
DESCRIPTION_OF_BUSINESS_DESCRI1
DESCRIPTION OF BUSINESS DESCRIPTION OF BUSINESS(Details) | 3 Months Ended |
Mar. 31, 2014 | |
segments | |
Country | |
Description of Business [Abstract] | ' |
Number of Countries in which Entity Operates | 20 |
Number of Reportable Segments | 3 |
REVENUE_DIRECT_COSTS_AND_GROSS2
REVENUE, DIRECT COSTS AND GROSS MARGIN Revenue, Direct Costs and Gross Margin (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ' | ' | ||
Revenue | $161,861 | [1] | $165,678 | [1] |
Direct costs | 104,332 | [2] | 109,001 | [2] |
Gross margin | 57,529 | 56,677 | ||
Temporary Contracting | ' | ' | ||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ' | ' | ||
Revenue | 119,333 | 128,841 | ||
Direct costs | 100,914 | [2] | 106,366 | [2] |
Gross margin | 18,419 | 22,475 | ||
Permanent Recruitment | ' | ' | ||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ' | ' | ||
Revenue | 30,130 | 26,481 | ||
Direct costs | 486 | [2] | 610 | [2] |
Gross margin | 29,644 | 25,871 | ||
Other Than Temporary Contracting and Permanent Recruitment | ' | ' | ||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ' | ' | ||
Revenue | 12,398 | 10,356 | ||
Direct costs | 2,932 | [2] | 2,025 | [2] |
Gross margin | $9,466 | $8,331 | ||
[1] | Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | |||
[2] | Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Companybs contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other category. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). |
STOCKBASED_COMPENSATION_StockB1
STOCK-BASED COMPENSATION Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock reserved for issuance to participants | 2,646,103 | ' |
Stock-based compensation | $496 | $674 |
Defined Contribution Plan, Cost Recognized | 162 | 190 |
Other Postretirement Benefits Payments | 0 | 651 |
Cash and Noncash pension and other postretirement contributions | 0 | 651 |
Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation | 57 | 144 |
Restricted stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% on the third anniversary of the grant date with service conditions only | 5,000 | ' |
Stock-based compensation | 409 | 480 |
Granted, Number of share of restricted stock (units) | 5,000 | 0 |
Restricted stock units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation | $30 | $50 |
STOCKBASED_COMPENSATION_Stock_
STOCK-BASED COMPENSATION Stock options activity (Details) (Stock options, USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average service period | '1 month 12 days | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $27 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' |
Options outstanding, weighted average exercise price per share, At the Beginning of the Year | $9.15 | $11.21 |
Expired, weighted average exercise price per share | $13.64 | $13.11 |
Options outstanding, weighted average exercise price per share, At the End of the Period | $9.07 | $11.19 |
Options exercisable, weighted average exercise price per share, At the End of the Period | $10.40 | $14.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Number of Options, At the Beginning of the Year | 800,350 | 1,238,650 |
Expired, number of options | -14,050 | -12,700 |
Options outstanding, Number of Options, At the End of the Period | 786,300 | 1,225,950 |
Options exercisable, Number of Options, At the End of the Period | 586,300 | 825,950 |
STOCKBASED_COMPENSATION_Restri
STOCK-BASED COMPENSATION Restricted stock (Details) (Restricted stock, USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average service period | '1 year 9 months 24 days | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $705 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' |
Non-vested restricted stock (units), weighted average grant date fair value, At the Beginning of the Year | $3 | $4.87 |
Granted, weighted average grant date fair value | $3.87 | $0 |
Vested, weighted average grant date fair value | $5.75 | $5.35 |
Forfeited, weighted average grant date fair value | $2.30 | $4.59 |
Non-vested restricted stock (units), weighted average grant date fair value, At the End of the Period | $2.80 | $4.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the Beginning of the Year | 997,802 | 1,028,916 |
Granted, Number of share of restricted stock (units) | 5,000 | 0 |
Vested, number of share of restricted stock (units) | -143,645 | -300,263 |
Forfeited, number of share of restricted stock | -435,896 | -329,460 |
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the End of the Period | 423,261 | 399,193 |
STOCKBASED_COMPENSATION_Restri1
STOCK-BASED COMPENSATION Restricted stock units (Details) (Restricted stock units, USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted stock units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average service period | '1 year 1 month 9 days | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $61 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' |
Non-vested restricted stock (units), weighted average grant date fair value, At the Beginning of the Year | $3.65 | $5.18 |
Vested, weighted average grant date fair value | $3.16 | $0 |
Forfeited, weighted average grant date fair value | $2.42 | $0 |
Non-vested restricted stock (units), weighted average grant date fair value, At the End of the Period | $4.58 | $5.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the Beginning of the Year | 115,869 | 100,000 |
Vested, number of share of restricted stock (units) | -2,792 | 0 |
Forfeited, number of share of restricted stock | -48,160 | 0 |
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the End of the Period | 64,917 | 100,000 |
STOCKBASED_COMPENSATION_Define
STOCK-BASED COMPENSATION Defined contribution plan and non-cash employer-matching contributions (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Discolusre of Defined Contribution Plan Related Costs, Share-based Payments [Abstract] | ' | ' |
Share-based compensation arrangement award vesting period | '5 years | ' |
Defined contribution pan, maximum annual contribution per employee percent | 15.00% | ' |
Defined contribution plan, employer matching contribution percent | 3.00% | ' |
Defined Contribution Plan, Cost Recognized | $162 | $190 |
Other Postretirement Benefits Payments | 0 | 651 |
Cash and Noncash pension and other postretirement contributions | $0 | $651 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 48 Months Ended | 60 Months Ended | 24 Months Ended | 60 Months Ended | 72 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
U.S. Federal [Member] | Other U.S. state and local juristictions [Member] | United Kingdon [Member] | Australia [Member] | Other Jurisdictions [Member] | ||||
Tax open years subject to examination [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Open Tax Year | ' | ' | ' | '2010 | '2009 | '2012 | '2009 | '2008 |
Income tax benefit (provision) | $524 | ($177) | ' | ' | ' | ' | ' | ' |
Pre-tax income (loss) | -4,020 | -8,418 | ' | ' | ' | ' | ' | ' |
Effective income tax rate | -13.00% | 2.10% | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 2,909 | ' | 3,872 | ' | ' | ' | ' | ' |
Accrued interest and penalties | 747 | ' | 786 | ' | ' | ' | ' | ' |
Estimated interest and penalties benefit | -5 | 19 | ' | ' | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 500 | ' | ' | ' | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | $700 | ' | ' | ' | ' | ' | ' | ' |
EARNINGS_LOSS_PER_SHARE_Comput
EARNINGS (LOSS) PER SHARE (Computation of basic and diluted earnings (loss) per share) (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Earnings (loss) per share (EPS): | ' | ' | ||
Basic (per share) | ($0.14) | ($0.25) | ||
Diluted (per share) | ($0.14) | ($0.25) | ||
EPS numerator - basic and diluted: | ' | ' | ||
Net income (loss) | ($4,544) | ($8,241) | ||
EPS denominator: | ' | ' | ||
Weighted-average common stock outstanding - basic (in shares) | 32,641 | 32,344 | ||
Common stock equivalents: stock options and other stock-based awards (a) | 0 | [1] | 0 | [1] |
Weighted-average number of common stock outstanding - diluted (in shares) | 32,641 | 32,344 | ||
[1] | For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. |
EARNINGS_LOSS_PER_SHARE_Antidi
EARNINGS (LOSS) PER SHARE (Antidilutive securities excluded from the computation of earnings (loss) per share) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 1,274,478 | 1,725,143 |
Unvested restricted stock | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 423,261 | 399,193 |
Unvested restricted stock units | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 64,917 | 100,000 |
Stock options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 786,300 | 1,225,950 |
RESTRICTED_CASH_Details
RESTRICTED CASH (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $2,052 | $2,047 |
Other Noncurrent Assets [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 1,821 | 1,814 |
Other Noncurrent Assets [Member] | Collateral accounts | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 619 | 619 |
Other Noncurrent Assets [Member] | Rental deposits | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 1,202 | 1,195 |
Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 231 | 233 |
Prepaid Expenses and Other Current Assets [Member] | Others | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 163 | 172 |
Prepaid Expenses and Other Current Assets [Member] | Client guarantees | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $68 | $61 |
PROPERTY_AND_EQUIPMENT_NET_Pro1
PROPERTY AND EQUIPMENT, NET Property and Equipment, Net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Payments for (Proceeds from) Leasehold Improvements Funded by Tenant Allowance | $630 | ' |
Property, Plant and Equipment, Gross | 65,456 | 63,553 |
Less: acccumulated depreciation and amortization | 51,352 | 49,731 |
Property and equipment, net | 14,104 | 13,822 |
Property Plant and Equipment, Capital Expenditure Not Yet Placed in Service | 1,277 | 595 |
Capital lease obligation, current | 198 | 315 |
Capital lease obligation, non-current | 3 | 9 |
Computer equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 9,505 | 9,395 |
Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 6,322 | 6,379 |
Capitalized software costs | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 28,152 | 26,963 |
Leasehold and building improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $21,477 | $20,816 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, At the Beginning of the Year | $2,078 |
Currency translation | -54 |
Goodwill, At the End of the Period | $2,024 |
BUSINESS_REORGANIZATION_EXPENS2
BUSINESS REORGANIZATION EXPENSES (Reorganization expenses by Plan) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Business reorganization expenses | $114 | $1,982 |
Pre 2012 Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Business reorganization expenses | 0 | 36 |
2012 Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Business reorganization expenses | $114 | $1,946 |
BUSINESS_REORGANIZATION_EXPENS3
BUSINESS REORGANIZATION EXPENSES (Changes in accrued business reorganization expenses) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Restructuring Reserve [Roll Forward] | ' |
Balance, beginning of year | $4,281 |
Changes in estimate | 0 |
Additional charges | 114 |
Payments | -1,272 |
Balance, end of period | 3,123 |
Lease termination payments | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance, beginning of year | 2,445 |
Changes in estimate | 0 |
Additional charges | 92 |
Payments | -244 |
Balance, end of period | 2,293 |
Employee termination benefits | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance, beginning of year | 1,780 |
Changes in estimate | 0 |
Additional charges | 15 |
Payments | -993 |
Balance, end of period | 802 |
Other associated costs | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance, beginning of year | 56 |
Changes in estimate | 0 |
Additional charges | 7 |
Payments | -35 |
Balance, end of period | $28 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Key members of management | ||
Commitments And Contingencies [Line Items] | ' | ' | ' |
Loss Contingency Accrual | $334 | $745 | ' |
Usual length of consulting, employment and non-compete agreements | ' | ' | '1 year |
Asset retirement obligation: | ' | ' | ' |
Total asset retirement obligations | $2,625 | $2,533 | ' |
CREDIT_AGREEMENTS_Details
CREDIT AGREEMENTS (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 05, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Base rate revolving loan | Base rate revolving loan | Base rate revolving loan | LIBOR Revolving Loans or Letter of Credit Obligations | LIBOR Revolving Loans or Letter of Credit Obligations | LIBOR Revolving Loans or Letter of Credit Obligations | RBS Citizens Business Capital | RBS Citizens Business Capital | RBS Citizens Business Capital | RBS Citizens Business Capital | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Lending Arrangements Belgium, Netherlands, Singapore, and Mainland China Banks | Lending Arrangements Netherlands and Belgium Banks | Minimum | Belgium Subsidiary | Belgium Subsidiary | Belgium Subsidiary | Netherlands subsidiary | Netherlands subsidiary | Netherlands subsidiary | Singapore Subsidiary | Singapore Subsidiary | Singapore Subsidiary | Singapore Subsidiary | |
Greater than or equal to 1.25:1.0 | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | Less than 1.10:1.0 | Greater than or equal to 1.25:1.0 | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | Less than 1.10:1.0 | USD ($) | Overdraft Facility | Overdraft Facility | Overdraft Facility | Line of Credit [Member] | Line of Credit [Member] | Invoice Discounting Facility | Invoice Discounting Facility | Invoice Discounting Facility | Overdraft Facility | Overdraft Facility | Overdraft Facility | Financial Guarantee Facility | Financial Guarantee Facility | Overdraft Facility | Overdraft Facility | RBS Citizens Business Capital | Lending Arrangements Belgium Bank | Lending Arrangements Belgium Bank | Lending Arrangements Belgium Bank | Lending Arrangements Netherlands Bank | Lending Arrangements Netherlands Bank | Lending Arrangements Netherlands Bank | Overdraft Facility | Lending Arrangements Singapore Bank | Lending Arrangements Singapore Bank | Lending Arrangements Singapore Bank | ||
USD ($) | USD ($) | North American and U.K. Operations | USD ($) | AUD | USD ($) | AUD | Bank Bill Rate | USD ($) | NZD | Commercial Lending Rate | USD ($) | AUD | USD ($) | EURIBOR | Overdraft Facility | Overdraft Facility | Overdraft Facility | years | Overdraft Facility | Overdraft Facility | Singapore Prime Rate | USD ($) | SGD | Overdraft Facility | ||||||||||
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | years | Singapore Prime Rate | |||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $40,000 | ' | ' | ' | ' | $13,898 | 15,000 | ' | $3,036 | 3,500 | ' | $4,633 | 5,000 | ' | ' | ' | ' | $1,377 | € 1,000 | ' | $1,913 | € 1,389 | ' | $795 | 1,000 | ' |
Line of credit facility, maximum borrowing capacity increased borrowing amount subject to certain conditions | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate increase | 1.25% | 1.50% | 1.75% | 2.25% | 2.50% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | ' | ' | 0.83% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' |
Borrowing base | ' | ' | ' | ' | ' | ' | 27,029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum availability | ' | ' | ' | ' | ' | ' | -10,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | -1,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted borrowing base | ' | ' | ' | ' | ' | ' | 15,288 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: outstanding borrowing | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | -208 | ' | ' | 0 | ' | ' | ' | ' | 340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing availability | ' | ' | ' | ' | ' | ' | 15,288 | ' | ' | ' | ' | ' | ' | 13,690 | ' | ' | 3,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rates on outstanding borrowing | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | 4.58% | 4.58% | ' | 6.03% | 6.03% | ' | ' | ' | ' | 2.74% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% |
Fixed charges coverage ratio | ' | ' | ' | ' | ' | ' | ' | 1.2 | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenants, Minimum Fixed Charges Coverage Ratio Required on June 30 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenants, Minimum Fixed Charges Coverage Ratio Required Under Waiver Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings before interest, taxes, depreciation, and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt convenant, dividend restrictions | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, business acquisition, cost of acquired entity, cash limit | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, business acquisition, cost of acquired entity, noncash consideration limit | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, disposition of assets, limit | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenants, Maximum Amount of Net Cash Outflows to Non Loan Parties Affialiates | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900.00% | 900.00% | ' | 0.65% | 0.65% | ' | 1.80% | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,898 | ' | ' | 3,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial guarantee capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,633 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: outstanding financial guarantee requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,276 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional availability for financial guarantee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,357 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rates on financial guarantee requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.80% | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,214 | 17,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing base ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lending arrangement expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | 1 | 1 | ' |
Terminated notice period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, average outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $182 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHELF_REGISTRATIONS_Details
SHELF REGISTRATIONS (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Shelf Registration Statements [Abstract] | ' |
Number of shares remaining under current registration | 1,350,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $18,232 | $17,203 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -55 | -30 |
Accumulated other comprehensive income (loss), net of applicable tax | $18,177 | $17,173 |
SEGMENT_AND_GEOGRAPHIC_DATA_Se1
SEGMENT AND GEOGRAPHIC DATA Segment Information (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
segments | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Number of Reportable Segments | 3 | ' | ' | ||
Revenue, from external customers | $161,861 | $165,678 | ' | ||
Inter-segment revenue | 0 | 0 | ' | ||
Total revenue | 161,861 | [1] | 165,678 | [1] | ' |
Gross margin, from external customer | 57,529 | 56,677 | ' | ||
Inter-segment gross margin | 0 | 0 | ' | ||
Gross margin | 57,529 | 56,677 | ' | ||
Business reorganization expenses (recovery) | 114 | 1,982 | ' | ||
EBITDA (loss) | -2,388 | [2] | -6,624 | [2] | ' |
Depreciation and amortization | 1,488 | 1,648 | ' | ||
Intercompany interest income (expense), net | 0 | 0 | ' | ||
Interest income (expense), net | -144 | -146 | ' | ||
Income (loss) before provision for income taxes | -4,020 | -8,418 | ' | ||
Accounts receivable, net | 99,335 | 103,023 | 85,901 | ||
Long-lived assets, net of accumulated depreciation and amortization | 16,101 | [3] | 20,993 | [3] | ' |
Total assets | 159,499 | 182,452 | 158,829 | ||
Hudson Americas | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue, from external customers | 26,863 | 37,223 | ' | ||
Inter-segment revenue | 0 | -2 | ' | ||
Total revenue | 26,863 | 37,221 | ' | ||
Gross margin, from external customer | 6,666 | 8,144 | ' | ||
Inter-segment gross margin | -3 | -2 | ' | ||
Gross margin | 6,663 | 8,142 | ' | ||
Business reorganization expenses (recovery) | 91 | -17 | ' | ||
EBITDA (loss) | -1,110 | [2] | -947 | [2] | ' |
Depreciation and amortization | 225 | 252 | ' | ||
Intercompany interest income (expense), net | 0 | 0 | ' | ||
Interest income (expense), net | -7 | -9 | ' | ||
Income (loss) before provision for income taxes | -1,342 | -1,208 | ' | ||
Accounts receivable, net | 16,427 | 23,442 | ' | ||
Long-lived assets, net of accumulated depreciation and amortization | 1,492 | 2,100 | ' | ||
Total assets | 19,688 | 28,443 | ' | ||
Hudson Asia Pacific | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue, from external customers | 56,430 | 56,201 | ' | ||
Inter-segment revenue | 0 | -1 | ' | ||
Total revenue | 56,430 | 56,200 | ' | ||
Gross margin, from external customer | 20,911 | 21,492 | ' | ||
Inter-segment gross margin | -70 | -25 | ' | ||
Gross margin | 20,841 | 21,467 | ' | ||
Business reorganization expenses (recovery) | 0 | 102 | ' | ||
EBITDA (loss) | -305 | [2] | -867 | [2] | ' |
Depreciation and amortization | 745 | 830 | ' | ||
Intercompany interest income (expense), net | 0 | -665 | ' | ||
Interest income (expense), net | -42 | -42 | ' | ||
Income (loss) before provision for income taxes | -1,092 | -2,404 | ' | ||
Accounts receivable, net | 31,258 | 31,627 | ' | ||
Long-lived assets, net of accumulated depreciation and amortization | 9,550 | 12,380 | ' | ||
Total assets | 58,223 | 69,140 | ' | ||
Hudson Europe | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue, from external customers | 78,568 | 72,254 | ' | ||
Inter-segment revenue | 79 | 25 | ' | ||
Total revenue | 78,647 | 72,279 | ' | ||
Gross margin, from external customer | 29,952 | 27,041 | ' | ||
Inter-segment gross margin | 73 | 26 | ' | ||
Gross margin | 30,025 | 27,067 | ' | ||
Business reorganization expenses (recovery) | 23 | 1,871 | ' | ||
EBITDA (loss) | 1,153 | [2] | -3,452 | [2] | ' |
Depreciation and amortization | 357 | 405 | ' | ||
Intercompany interest income (expense), net | -130 | -106 | ' | ||
Interest income (expense), net | 11 | 6 | ' | ||
Income (loss) before provision for income taxes | 677 | -3,957 | ' | ||
Accounts receivable, net | 51,650 | 47,954 | ' | ||
Long-lived assets, net of accumulated depreciation and amortization | 3,526 | 4,703 | ' | ||
Total assets | 76,718 | 75,216 | ' | ||
Corporate | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue, from external customers | 0 | 0 | ' | ||
Inter-segment revenue | 0 | 0 | ' | ||
Total revenue | 0 | 0 | ' | ||
Gross margin, from external customer | 0 | 0 | ' | ||
Inter-segment gross margin | 0 | 0 | ' | ||
Gross margin | 0 | 0 | ' | ||
Business reorganization expenses (recovery) | 0 | 26 | ' | ||
EBITDA (loss) | -2,126 | [2] | -1,358 | [2] | ' |
Depreciation and amortization | 161 | 161 | ' | ||
Intercompany interest income (expense), net | 130 | 771 | ' | ||
Interest income (expense), net | -106 | -101 | ' | ||
Income (loss) before provision for income taxes | -2,263 | -849 | ' | ||
Accounts receivable, net | 0 | 0 | ' | ||
Long-lived assets, net of accumulated depreciation and amortization | 1,533 | 1,810 | ' | ||
Total assets | 4,870 | 9,653 | ' | ||
Inter-segment elimination | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue, from external customers | 0 | 0 | ' | ||
Inter-segment revenue | -79 | -22 | ' | ||
Total revenue | -79 | -22 | ' | ||
Gross margin, from external customer | 0 | 0 | ' | ||
Inter-segment gross margin | 0 | 1 | ' | ||
Gross margin | 0 | 1 | ' | ||
Business reorganization expenses (recovery) | 0 | 0 | ' | ||
EBITDA (loss) | 0 | [2] | 0 | [2] | ' |
Depreciation and amortization | 0 | 0 | ' | ||
Intercompany interest income (expense), net | 0 | 0 | ' | ||
Interest income (expense), net | 0 | 0 | ' | ||
Income (loss) before provision for income taxes | 0 | 0 | ' | ||
Accounts receivable, net | 0 | 0 | ' | ||
Long-lived assets, net of accumulated depreciation and amortization | 0 | 0 | ' | ||
Total assets | $0 | $0 | ' | ||
[1] | Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | ||||
[2] | SEC") Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | ||||
[3] | Comprised of property and equipment and intangibles. Corporate assets are included in the United States. |
SEGMENT_AND_GEOGRAPHIC_DATA_Ge
SEGMENT AND GEOGRAPHIC DATA Geographic Data Reporting (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | $161,861 | [1] | $165,678 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 16,101 | [2] | 20,993 | [2] | ' |
Net assets | 71,235 | 96,868 | 74,385 | ||
United Kingdon [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 50,859 | [1] | 47,078 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 2,976 | [2] | 3,548 | [2] | ' |
Net assets | 22,170 | 25,426 | ' | ||
Australia [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 42,448 | [1] | 42,042 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 5,968 | [2] | 8,595 | [2] | ' |
Net assets | 18,510 | 29,687 | ' | ||
United States | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 26,638 | [1] | 36,952 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 2,999 | [2] | 3,866 | [2] | ' |
Net assets | 10,623 | 21,501 | ' | ||
Europe | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 27,709 | [1] | 25,175 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 542 | [2] | 1,147 | [2] | ' |
Net assets | 8,653 | 6,069 | ' | ||
Asia Pacific | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 13,982 | [1] | 14,160 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 3,582 | [2] | 3,785 | [2] | ' |
Net assets | 11,071 | 13,938 | ' | ||
Other Americas | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenue | 225 | [1] | 271 | [1] | ' |
Long-lived assets, net of accumulated depreciation and amortization | 34 | [2] | 52 | [2] | ' |
Net assets | $208 | $247 | ' | ||
[1] | Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. | ||||
[2] | Comprised of property and equipment and intangibles. Corporate assets are included in the United States. |