Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Documentand Entity Information [Abstract] | |
Entity Registrant Name | Hudson Global, Inc. |
Entity Central Index Key | 1,210,708 |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 32,030,932 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 17,015 | $ 14,517 | $ 33,230 | $ 28,472 |
Direct costs | 6,214 | 3,812 | 12,275 | 7,765 |
Gross margin | 10,801 | 10,705 | 20,955 | 20,707 |
Operating expenses: | ||||
Other Selling, General and Administrative Expense | 2,755 | 1,995 | 5,208 | 3,872 |
Salaries, Wages and Officers' Compensation | 9,303 | 9,099 | 19,662 | 17,552 |
Depreciation and amortization | 2 | 79 | 2 | 160 |
Business reorganization | 0 | 1 | 0 | (113) |
Operating income (loss) | (1,259) | (469) | (3,917) | (764) |
Non-operating income (expense): | ||||
Interest income (expense), net | 60 | (4) | 60 | (4) |
Other income (expense), net | (45) | (15) | (112) | (53) |
Income (loss) from continuing operations before provision for income taxes | (1,244) | (488) | (3,969) | (821) |
Provision for income taxes from continuing operations | 109 | 246 | 281 | 392 |
Income (loss) from continuing operations | (1,353) | (734) | (4,250) | (1,213) |
Income (loss) from discontinued operations, net of income taxes | (11) | 1,960 | 13,607 | 1,125 |
Net income (loss) | $ (1,364) | $ 1,226 | $ 9,357 | $ (88) |
Basic and diluted earnings (loss) per share: | ||||
Basic and diluted earnings (loss) per share from continuing operations | $ (0.04) | $ (0.02) | $ (0.13) | $ (0.04) |
Basic and diluted earnings (loss) per share from discontinued operations | 0 | 0.06 | 0.42 | 0.04 |
Basic and diluted earnings (loss) per share | $ (0.04) | $ 0.04 | $ 0.29 | $ 0 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 32,277 | 32,048 | 32,212 | 32,104 |
Diluted (in shares) | 32,277 | 32,048 | 32,212 | 32,104 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | $ (1,364) | $ 1,226 | $ 9,357 | $ (88) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (429) | 1,221 | (96) | 2,620 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 5 | 0 | 4 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | (10,819) | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | (38) | 0 |
Other Comprehensive Income (Loss), Net of Tax | (429) | 1,226 | (10,953) | 2,624 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (1,793) | $ 2,452 | $ (1,596) | $ 2,536 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 38,641 | $ 5,580 |
Accounts receivable, less allowance for doubtful accounts of $52 and $69, respectively | 14,201 | 11,545 |
Prepaid and other | 1,010 | 388 |
Current assets of discontinued operations | 0 | 79,530 |
Total current assets | 53,852 | 97,043 |
Property and equipment, net | 5 | 1 |
Deferred tax assets, non-current | 292 | 324 |
Other assets, non-current | 373 | 371 |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 0 | 13,901 |
Total assets | 54,522 | 111,640 |
Current liabilities: | ||
Accounts payable | 806 | 1,193 |
Accrued expenses and other current liabilities | 8,901 | 7,259 |
Current liabilities of discontinued operations | 366 | 51,952 |
Total current liabilities | 10,073 | 60,404 |
Income tax payable, non-current | 1,978 | 1,682 |
Other non-current liabilities | 578 | 192 |
Total non-current liabilities | 0 | 6,210 |
Total liabilities | 12,629 | 68,488 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 100,000 shares authorized; issued 36,110 and 34,959 shares, respectively | 34 | 34 |
Additional paid-in capital | 484,432 | 483,558 |
Accumulated deficit | (434,062) | (443,419) |
Accumulated other comprehensive income, net of applicable tax | (244) | 10,709 |
Treasury stock, 4,079 and 3,800 shares, respectively, at cost | (8,267) | (7,730) |
Total stockholders' equity | 41,893 | 43,152 |
Total liabilities and stockholders' equity | $ 54,522 | $ 111,640 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | ||
Preferred stock, par value (per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, issued | 36,110 | 34,959 |
Treasury stock, shares | 4,079 | 3,800 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9,357 | $ (88) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 682 | 1,353 |
Provision for (recovery of) doubtful accounts | 30 | 33 |
Provision for (benefit from) deferred income taxes | 219 | 34 |
Stock-based compensation | 874 | 708 |
Gain on sale of consolidated subsidiaries | 14,032 | 0 |
Changes in assets and liabilities, net of effect of dispositions: | ||
Decrease (increase) in accounts receivable | (9,451) | (9,828) |
Decrease (increase) in prepaid and other assets | (582) | (1,080) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (4,844) | 5,195 |
Increase (decrease) in accrued business reorganization | (502) | (1,087) |
Net cash used in operating activities | (18,249) | (4,760) |
Cash flows from investing activities: | ||
Capital expenditures | (284) | (425) |
Proceeds from sale of consolidated subsidiaries, net of cash and restricted cash sold | 27,967 | 0 |
Net cash provided by (used in) investing activities | 27,683 | (425) |
Cash flows from financing activities: | ||
Borrowings under credit agreements | 59,647 | 77,256 |
Repayments under credit agreements | (51,682) | (78,923) |
Repayment of capital lease obligations | (27) | (50) |
Purchase of treasury stock | (3) | (522) |
Purchase of restricted stock from employees | (534) | (5) |
Net cash provided by (used in) financing activities | 7,401 | (2,244) |
Cash, cash equivalents, and restricted cash, beginning of the period | 22,006 | 22,511 |
Cash, cash equivalents, and restricted cash, end of the period | 39,069 | 15,801 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 228 | 719 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 17,063 | (6,710) |
Cash, cash equivalents, and restricted cash, beginning of the period | 5,580 | |
Cash, cash equivalents, and restricted cash, end of the period | 38,641 | |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | (92) | (211) |
Cash received during the period for interest | 55 | 0 |
Net cash payments during the period for income taxes | $ (131) | $ (854) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock |
Beginning Balance (in shares) at Dec. 31, 2017 | 31,159 | |||||
Beginning Balance at Dec. 31, 2017 | $ 43,152 | $ 34 | $ 483,558 | $ (443,419) | $ 10,709 | $ (7,730) |
Net income (loss) | 9,357 | 9,357 | ||||
Other comprehensive income (loss), currency translation adjustments, net of applicable tax | (96) | |||||
Other comprehensive income (loss), net of applicable tax | (10,953) | (10,953) | ||||
Stock Repurchased During Period, Shares | (2) | |||||
Stock-based compensation (in shares) | 1,151 | |||||
Stock-based compensation | 874 | 874 | ||||
Treasury Stock, Value, Acquired, Cost Method | (3) | (3) | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 277 | |||||
Adjustments Related to Tax Withholding for Share-based Compensation | 534 | 534 | ||||
Ending Balance (in shares) at Jun. 30, 2018 | 32,031 | |||||
Ending Balance at Jun. 30, 2018 | $ 41,893 | $ 34 | $ 484,432 | $ (434,062) | $ (244) | $ (8,267) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
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 Article 8 of Regulation S-X of the United States Securities and Exchange Commission ("SEC") for interim financial reporting 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, 2017 . 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 period amounts have been reclassified to conform to the current year presentation with no material impact on the condensed consolidated financial statements. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2018 | |
Description of Business [Abstract] | |
DESCRIPTION OF BUSINESS | 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. During the first quarter of 2018, the Company’s core service offerings included Permanent Recruitment, Contracting, Recruitment Process Outsourcing ("RPO"), and Talent Management Solutions. On March 31, 2018 the Company completed the sale of its Recruitment and Talent Management ("RTM") businesses in three separate transactions and retained its RPO business. The first quarter results for the RTM businesses are reported as discontinued operations. For more information, see Note 5. As a result of the divestiture of the RTM businesses, the Company now operates directly in nine countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. See Note 13 for further details regarding the reportable segments. The Company’s core service offering following the divestiture is RPO. The Company delivers RPO permanent recruitment and contracting outsourced recruitment solutions tailored to the individual needs of primarily mid-to-large-cap multinational companies. The Company's RPO 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. The Company's RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting. 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). |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Pronouncements On January 1, 2018, we adopted Accounting Standards Updates ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") and a series of related accounting standard updates designed to create improved revenue recognition and disclosure comparability in financial statements. For more information, see Note 4. On January 1, 2018, we retroactively adopted ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Financial Accounting Standards Board (the "FASB") Emerging Issues Task Force)." This ASU requires the statements of cash flows to present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are now included with cash and cash equivalents when reconciling the beginning of period and end of period amounts presented on the statements of cash flows. The retrospective application of this new accounting guidance resulted in a decrease of $247 in "Decrease (increase) in prepaid and other assets" in Net Cash used in Operating Activities, an increase of $1,189 in "Cash, Cash Equivalents, and Restricted Cash, beginning of the period," and an increase of $942 in "Cash, Cash Equivalents, and Restricted Cash, end of period" in our accompanying consolidated statement of cash flows for the six months ended June 30, 2017 from what was previously presented in our Quarterly Report on Form 10-Q for the six months ended June 30, 2017. In May 2017, the FASB issued ASU No. 2017-09, "Compensation - Stock Compensation: Scope of Modification Accounting" ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity will account for the effects of a modification unless the fair value of the modified award is the same as the original award, the vesting conditions of the modified award are the same as the original award and the classification of the modified award as an equity instrument or liability instrument is the same as the original award. ASU 2017-09 is effective for all annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted ASU 2017-09 on January 1, 2018. The adoption had no impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which provides guidance on reclassification of certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), enacted on December 22, 2017. ASU No. 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the application of the Tax Act. Additionally, ASU No. 2018-02 requires financial statement preparers to disclose (1) a description of their accounting policy for releasing income tax effects from accumulated other comprehensive income, (2) whether they elect to reclassify the stranded income tax effects from the Tax Act, and (3) information about other income tax effects related to the application of the Tax Act that are reclassified from accumulated other comprehensive income to retained earnings, if any. The amendments in ASU 2018-02 are effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact to its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02") . This ASU requires a company to recognize lease assets and liabilities arising from operation leases in the statement of financial position. This ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, measurement and presentation of expenses and cash flows arising from a lease. Additionally, the criteria for classifying a finance lease versus an operating lease are substantially the same as the previous guidance. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements ("ASU 2018-11") . This ASU allows adoption of the standard as of the effective date without restating prior periods. The amendments in these ASUs are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We plan to adopt this ASU on January 1, 2019. We expect the adoption of ASU 2016-02 will result in the recognition of right-of-use assets and lease liabilities on our consolidated balance sheets for operating leases. There are no other recently issued accounting pronouncements that have had, or that the Company believes will have, a material impact on the Company's condensed consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | REVENUE RECOGNITION Adoption of New Revenue Recognition Guidance On January 1, 2018, the Company adopted ASU 2014-09 using the modified retrospective approach. Under this method, the guidance is applied only to the most current period presented in the financial statements. ASU 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and supersedes most of the previous revenue recognition guidance, including industry-specific guidance. Under ASU 2014-09, an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Our revenue recognition practices remained substantially unchanged as a result of adoption ASU 2014-09 and we did not have any significant changes in our business processes or systems. Nature of Services We account for a contract when both parties to the contract have approved the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Revenues are recognized over time, using an output measure, as the control of the promised services is transferred to the client in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The majority of our contracts are short-term in nature as they include termination clauses that allows either party to cancel within a short termination period, without cause. Revenue includes billable travel and other reimbursable costs and are reported net of sales or use taxes collected from clients and remitted to taxing authorities. We generally determine standalone selling prices based on the prices included in the client contracts, using expected cost plus margin, or other observable prices. The price as specified in our client contracts is generally considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar client in similar circumstances. Certain client contracts have variable consideration, including usage based fees that increase the transaction price and volume rebates or other similar items that generally reduce the transaction price. We estimate variable consideration using the expected value method based on the terms of the client contract and historical evidence. These amounts may be constrained and are only included in revenue to the extent we do not expect a significant reversal when the uncertainty associated with the variable consideration is resolved. Our estimated amounts of variable consideration subject to constraints are not material and we do not believe that there will be significant changes to our estimates. We record accounts receivable when our right to consideration becomes unconditional. Contract assets primarily relate to our rights to consideration for services provided that they are conditional on satisfaction of future performance obligations. A contract liability for deferred revenue is recorded when consideration is received, or is unconditionally due, from a client prior to transferring control of services to the client under the terms of a contract. Deferred revenue balances typically result from advance payments received from clients prior to transfer services. We do not have any material contract assets or liabilities as of and for the six months ended June 30, 2018 . Payment terms vary by client and the services offered. We consider payment terms that exceed one year to be extended payment terms. Substantially all of the Company's contracts include payment terms of 90 days or less and we do not extend payment terms beyond one year. We primarily record revenue on a gross basis as a principal in the Consolidated Statements of Operations and Comprehensive Income based upon the following key factors: • We maintain the direct contractual relationship with the client and are responsible for fulfilling the service promised to the client. • We maintain control over our contractors while the services to the client are being performed, including our contractors' billing rates. RPO Recruitment. We provide complete recruitment outsourcing, project-based outsourcing and recruitment consulting for clients' permanent staff hires. We recognize revenue for our RPO recruitment over time in an amount that reflects the consideration we expect to be entitled to and have an enforceable right to payment in exchange for our services. The client simultaneously receives and consumes the benefits of the services as they are provided. The transaction prices contains both fixed fee and variable usage based consideration. Variable usage based consideration is constrained by candidates accepting offers of permanent employment. We recognized revenue on the fixed fee as the performance obligations are satisfied and usage based fees as the constraint is lifted. We do not incur incremental costs to obtain our RPO recruitment contracts. The costs to fulfill these contracts are expensed as incurred. RPO Contracting. We provide RPO clients with a range of outsourced professional contract staffing services and managed service provider services offered sometimes on a standalone basis and sometimes as part of a blended total talent solution. We recognize revenue for our RPO contracting services over time as services are performed in an amount that reflects the consideration we expect to be entitled to and have an enforceable right to payment in exchange for our services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur incremental costs to obtain our RPO contracting contracts. The costs incurred to fulfill these contracts are expensed as incurred. Unsatisfied performance obligations. As a practical expedient, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an expected original duration of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregation of Revenue The following table presents our disaggregated revenues from continuing operations by revenue source. For additional information on the disaggregated revenues by geographical segment, see Note 13 of the Notes to the Condensed Consolidated Financial Statements. Three Months Ended June 30, 2018 RPO Recruitment RPO Contracting Total Revenue $ 11,696 $ 5,319 $ 17,015 Direct costs (1) 1,464 4,750 6,214 Gross margin $ 10,232 $ 569 $ 10,801 Three Months Ended June 30, 2017 RPO Recruitment RPO Contracting Total Revenue $ 10,987 $ 3,530 $ 14,517 Direct costs (1) 642 3,170 3,812 Gross margin $ 10,345 $ 360 $ 10,705 Six Months Ended June 30, 2018 RPO Recruitment RPO Contracting Total Revenue $ 23,385 $ 9,845 $ 33,230 Direct costs (1) 3,482 8,793 12,275 Gross margin $ 19,903 $ 1,052 $ 20,955 Six Months Ended June 30, 2017 RPO Recruitment RPO Contracting Total Revenue $ 21,055 $ 7,417 $ 28,472 Direct costs (1) 1,090 6,675 7,765 Gross margin $ 19,965 $ 742 $ 20,707 (1) Direct costs in RPO 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. The region where services are provided, the mix of RPO recruitment and RPO contracting, 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 "Salaries and related" in the Condensed Consolidated Statement of Operations. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On March 31, 2018, the Company completed the sale of its RTM Businesses in Belgium, Europe (excluding Belgium) and Asia Pacific ("APAC") in separate transactions (the "Sale Transactions") to Value Plus NV, Morgan Philips Group S.A., and Apache Group Holdings Pty Limited, respectively. The gross proceeds from the sale were $38,960 . In addition $17,626 of debt was assumed by the buyers. The following is a reconciliation of the gross proceeds to the net proceeds as presented in the statement of cash flows for the six months ended June 30, 2018. Gross proceeds $ 38,960 Add: purchase price adjustments 149 Less: cash and restricted cash sold (9,547 ) Less: transaction costs (1,595 ) Net cash proceeds as presented in the statement of cash flows $ 27,967 The divestiture generated a pre-tax gain of $14,032 for the six months ended June 30, 2018, which includes a benefit of $10,819 reclassification adjustment relating to the net foreign currency translation gains previously included in accumulated other comprehensive income. The pre-tax gain is subject to adjustment for various purchase price adjustments. The RTM businesses met the criteria for discontinued operations set forth in Accounting Standards Codification ("ASC") 205 on March 31, 2018 subsequent to approval of the sale by our stockholders. The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented. The carrying amounts of the classes of assets and liabilities from the RTM businesses included in discontinued operations were as follows: June 30, December 31, Cash $ — $ 15,460 Accounts receivable — 60,333 Prepaid and other current assets — 3,737 Total current assets — 79,530 Property and equipment, net — 6,251 Deferred tax assets, non-current — 6,080 Other assets, non-current — 1,570 Total non-current assets — 13,901 Total assets $ — $ 93,431 Accounts payable $ 42 $ 5,764 Accrued expenses and other current liabilities 324 39,108 Short-term borrowings — 7,080 Total current liabilities 366 51,952 Total non-current liabilities — 6,210 Total liabilities $ 366 $ 58,162 Reported results for the discontinued operations by period were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ — $ 99,074 $ 108,463 $ 188,524 Gross margin — 37,621 38,663 70,051 Operating expenses: Salaries and related — 26,963 29,032 51,952 Other selling, general and administrative — 7,368 8,355 14,318 Depreciation and amortization — 608 680 1,193 Business reorganization — (2 ) 50 290 Operating income (loss) — 2,684 546 2,298 Non-operating income (expense): Interest income (expense), net — (115 ) (88 ) (203 ) Other non-operating income (loss) — 7 216 (337 ) Income (Loss) from discontinued operations before taxes and gain (loss) on sale — 2,576 674 1,758 Gain (loss) from sale of discontinued operations (11 ) — 14,032 — Income (loss) from discontinued operations before income taxes (11 ) 2,576 14,706 1,758 Provision (benefit) for income taxes — 616 1,099 633 Income (loss) from discontinued operations $ (11 ) $ 1,960 $ 13,607 $ 1,125 Depreciation, capital expenditures, and significant operating and investment non cash items of the discontinued operations by period were as follows: Six Months Ended June 30, 2018 2017 Depreciation and amortization $ 680 $ 1,193 Stock-based compensation expense $ 233 $ 114 Capital expenditures $ 284 $ 425 RTM Revenue Recognition The Company RTM businesses delivered permanent recruitment, contracting, and talent management solutions to its clients. The contracts have a single performance obligations and we recognized revenue from these services over time in an amount that reflects the consideration expected to be entitled to in exchange for our services. We do not incur incremental costs to obtain these contracts. The costs to fulfill these contracts were expensed as incurred. See Note 4 for additional information on the Company's revenue recognition policies. Permanent recruitment revenue. We recognize permanent placement revenue when employment candidates accept offers of permanent employment. We have a substantial history of estimating the financial impact of permanent placement candidates who do not remain with its clients through the typically 90-day guarantee period. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement services are charged to employment candidates. Temporary contracting revenue . We recognize temporary contracting revenue over time in the amount to which the Company has a right to invoice, when the services are rendered by the Company’s temporary employees which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our temporary contracting contracts. The costs incurred to fulfill these contracts are expensed as incurred. Talent management revenue . Talent management services generally contain a single performance obligation satisfied over time. Revenue is recognized over time as the performance obligation is satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date. We measure revenue using an output method. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer. Disaggregation of Revenue The following table presents our disaggregated revenues from discontinued operations by revenue source. Three Months Ended June 30, 2018 Permanent Recruitment Contracting Talent Management Other Total Revenue $ — $ — $ — $ — $ — Direct costs (1) — — — — — Gross margin $ — $ — $ — $ — $ — Three Months Ended June 30, 2017 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 21,255 $ 66,695 $ 10,559 $ 565 $ 99,074 Direct costs (1) 120 58,886 1,915 532 61,453 Gross margin $ 21,135 $ 7,809 $ 8,644 $ 33 $ 37,621 Six Months Ended June 30, 2018 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 20,700 $ 76,615 $ 10,694 $ 454 $ 108,463 Direct costs (1) 190 67,980 1,225 405 69,800 Gross margin $ 20,510 $ 8,635 $ 9,469 $ 49 $ 38,663 Six Months Ended June 30, 2017 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 39,253 $ 129,229 $ 18,974 $ 1,068 $ 188,524 Direct costs (1) 249 113,773 3,413 1,038 118,473 Gross margin $ 39,004 $ 15,456 $ 15,561 $ 30 $ 70,051 (1) Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, 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 categories. 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
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 May 24, 2016 (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. As determined by the Compensation Committee, equity awards also may be subject to immediate vesting upon the occurrence of certain events following a change in control of the Company. The Company primarily grants restricted stock and restricted stock units to 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. On May 24, 2016, the Company's stockholders approved an amendment and restatement of the ISAP to, among other things, increase the number of shares of the Company's common stock that are reserved for issuance by 2,400,000 shares. As of June 30, 2018 , there were 1,284,467 shares of the Company’s common stock available for future issuance under the ISAP. The following table presents a summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the six months ended June 30, 2018 : Vesting conditions Number of Restricted Stock Units Granted Performance and service conditions (1) (2) 220,000 Performance and service conditions (1) (3) 207,353 Total shares of stock award granted 427,353 (1) The performance conditions with respect to restricted stock units may be satisfied as follows: (a) For employees from the Americas, APAC, and Europe 70% of the restricted stock units may be earned on the basis of performance as measured by a "regional adjusted EBITDA," and 30% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA"; and (b) For employees from the Corporate office 50% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA," and 50% of the restricted stock units may be earned on the basis of performance as measured by a "corporate costs" target. (2) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows: (a) 33% of the restricted stock units will vest on the first anniversary of the grant date; (b) 33% of the restricted stock units will vest on the second anniversary of the grant date; and (c) 34% of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. (3) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows: (a) 66.6% of the restricted stock units will vest on the first anniversary of the last day of the performance period; (b) 16.7% of the restricted stock units will vest on the second anniversary of the last day of the performance period; (c) 16.7% of the restricted stock units will vest on the third anniversary of the last day of the performance period; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. 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. Restricted stock units issued under the Director Plan contain the right to a dividend equivalent award in the form of additional restricted stock units. The dividend equivalent award is calculated using the same rate as the cash dividend paid on a share of the Company's common stock, and then divided by the closing price of the Company’s common stock on the date the dividend is paid to determine the number of additional restricted stock units to grant. Dividend equivalent awards have the same vesting terms as the underlying awards. During the six months ended June 30, 2018 , the Company granted 94,154 restricted stock units to its non-employee directors pursuant to the Director Plan. As of June 30, 2018 , 967,938 restricted stock units are deferred. For the three and six months ended June 30, 2018 and 2017 , the Company’s stock-based compensation expense related to stock options and restricted stock units were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Stock options $ — $ — $ — $ — Restricted stock units 180 517 874 708 Total $ 180 $ 517 $ 874 $ 708 Stock Options Stock options granted by the Company generally expire between five and ten years after the date of grant and have an exercise price of at least 100% of the fair market value of the underlying share of common stock on the date of grant. As of June 30, 2018 , the Company had no unrecognized stock-based compensation expense related to outstanding unvested stock options. Changes in the Company’s stock options for the six months ended June 30, 2018 and 2017 were as follows: Six Months Ended June 30, 2018 2017 Number of Options Weighted Average Exercise Price per Share Number of Options Weighted Average Exercise Price per Share Options outstanding at January 1, 100,000 $ 3.86 123,500 $ 6.16 Expired/forfeited — — (23,500 ) 15.97 Options outstanding at June 30, 100,000 $ 3.86 100,000 $ 3.86 Options exercisable at June 30, 100,000 $ 3.86 100,000 $ 3.86 Restricted Stock Units As of June 30, 2018 , the Company had approximately $732 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 2.45 years . Restricted stock units have no voting or dividend rights until the awards are vested. Changes in the Company’s restricted stock units for the six months ended June 30, 2018 and 2017 were as follows: Six Months Ended June 30, 2018 2017 Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested restricted stock units at January 1, 1,088,933 $ 1.16 480,000 $ 2.79 Granted 521,507 1.74 1,323,033 1.07 Shares earned above target (a) 244,855 1.00 — — Vested (1,256,445 ) 1.19 (381,760 ) 1.47 Forfeited (7,515 ) 1.00 (332,340 ) 2.79 Unvested restricted stock units at June 30, 591,335 $ 1.55 1,088,933 $ 1.16 (a) The number of shares earned above target are based on the performance target established by the Compensation Committee at the initial grant date. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income Tax Provision On December 22, 2017, the President of the U.S. signed into law the Tax Act. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Company recognized the income tax effects of the Tax Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, the Company’s financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. The Company did not identify items for which the income tax effects of the Tax Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017 . The Company recorded a provisional amount of $0 tax payable with respect to the deemed mandatory repatriation of undistributed foreign earnings of foreign subsidiaries and the Company has elected to account for the global intangible low-taxed income ("GILTI") tax, if applicable, in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its condensed consolidated financial statements for the year ended December 31, 2017 . On this basis, the net impact on tax expense provided in the Company’s condensed consolidated financial statements for the year ended December 31, 2017 related to the Tax Act is $0 . The ultimate impact may differ from the provisional amounts due to additional analysis, changes in interpretations and assumptions, and additional regulatory guidance. The provisional accounting is expected to be complete when the 2017 U.S. federal income tax return is filed in 2018. During the six months ended June 30, 2018, the Company did not make any adjustments to its provisional amounts included in its condensed consolidated financial statements for the year ended December 31, 2017 . Also, because the Company has not recognized tax benefits in its financial statements for U.S. tax losses, there is $0 tax impact of the inclusion of GILTI income as a period cost during the six months ended June 30, 2018 . Under 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 six months ended June 30, 2018 was $281 on a pre-tax loss from continuing operations of $3,969 , compared to a provision for income taxes of $392 on pre-tax loss from continuing operations of $821 for the same period in 2017 . The Company’s effective income tax rate was negative 7.1% and 47.7% for the six months ended June 30, 2018 and 2017 , respectively. For the six months ended June 30, 2018 , the effective tax rate differed from the U.S. Federal statutory rate of 21% primarily due to the inability of the Company to recognize tax benefits on certain losses until positive earnings are achieved in the U.S. and certain other foreign jurisdictions, non-deductible expenses, and variations from the U.S. tax rate in foreign jurisdictions. For the six months ended June 30, 2017 , the effective tax rate differed from the U.S. Federal statutory rate of 35% primarily due to the inability of the Company to recognize tax benefits on certain losses until positive earnings are achieved in the U.S. and certain other foreign jurisdictions, non-deductible expenses, and variations from the U.S. tax rate in foreign jurisdictions. Uncertain Tax Positions As of June 30, 2018 and December 31, 2017 , the Company had $1,978 and $1,682 , 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 $577 and $566 as of June 30, 2018 and December 31, 2017 , respectively. Estimated interest and penalties are classified as part of the provision for income taxes in the Company’s Condensed Consolidated Statement of Operations and totaled to a provision of $28 and $28 for the six months ended June 30, 2018 and 2017 , 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 June 30, 2018 , 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 2014 Majority of U.S. state and local jurisdictions 2013 Australia 2017 Belgium 2015 Canada 2013 Netherlands 2012 Switzerland 2013 United Kingdom 2017 Jurisdictions in Asia 2018 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 June 30, 2018 , it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $0 to $180 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 | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share 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", unvested restricted stock, and unvested restricted stock units. 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 and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Earnings (loss) per share ("EPS"): EPS - basic and diluted: Income (loss) from continuing operations $ (0.04 ) $ (0.02 ) $ (0.13 ) $ (0.04 ) Income (loss) from discontinued operations — 0.06 0.42 0.04 Net income (loss) $ (0.04 ) $ 0.04 $ 0.29 $ — EPS numerator - basic and diluted: Income (loss) from continuing operations $ (1,353 ) $ (734 ) $ (4,250 ) $ (1,213 ) Income (loss) from discontinued operations (11 ) 1,960 13,607 1,125 Net income (loss) $ (1,364 ) $ 1,226 $ 9,357 $ (88 ) EPS denominator (in thousands): Weighted average common stock outstanding - basic 32,277 32,048 32,212 32,104 Common stock equivalents: stock options and restricted stock units (a) — — — — Weighted average number of common stock outstanding - diluted 32,277 32,048 32,212 32,104 (a) 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 6 for further details on outstanding stock options and unvested restricted stock units) 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 and six months ended June 30, 2018 and 2017 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Unvested restricted stock units 591,335 1,088,933 591,335 1,088,933 Stock options 100,000 100,000 100,000 100,000 Total 691,335 1,188,933 691,335 1,188,933 |
CASH, CASH EQUIVALENTS, AND RES
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2018 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 was as follows: June 30, December 31, Cash and cash equivalents of continuing operations $ 38,641 $ 5,580 Cash and cash equivalents of discontinuing operations — 15,460 Restricted cash included in prepaid and other 111 112 Restricted cash included in other assets 317 102 Restricted cash included in current assets of discontinued operations — 183 Restricted cash included in non-current assets of discontinued operations — 569 Total cash, cash equivalents, and restricted cash $ 39,069 $ 22,006 Restricted cash under the caption "Prepaid and other" primarily includes a bank guarantee for licensing in Switzerland. Restricted cash under the caption "Other assets" primarily include deposits held under a collateral trust agreement, which supports the Company’s workers’ compensation policy. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
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 legal reserves are included under the caption "Other non-current liabilities" in the Condensed Consolidated Balance Sheets. The Company had no reserves as of June 30, 2018 and December 31, 2017 , respectively. Departure of Certain Employees As previously disclosed on July 6, 2018, the Company and David F. Kirby, the Company’s Senior Vice President, Treasury and Investor Relations, determined that Mr. Kirby would leave his positions with the Company effective July 27, 2018. In addition, the Company terminated the employment of its Corporate Counsel and Corporate Secretary effective June 29, 2018. As a result, during the three and six months ended June 30, 2018 the Company recognized severance expense of $601 for the two corporate employees classified within salaries and related expense in the Company's Condensed Consolidated Statement of Operations. As previously disclosed, on April 1, 2018, Stephen A. Nolan gave notice to the Company's Board of Directors of his resignation as Chief Executive Officer and a director of the Company effective as of April 1, 2018. On April 1, 2018, following the resignation of Mr. Nolan, the Board of Directors of the Company appointed Jeffrey E. Eberwein, the Chairman of the Board of Directors, as Chief Executive Officer, and Richard K. Coleman, Jr., a director of the Company, as the Chairman of the Board of Directors. As a result, during the three and six months ended June 30, 2018 the Company recognized additional compensation expense of $0 and $2,024 , respectively to its former Chief Executive Officer classified within salaries and related expense in the Company's Condensed Consolidated Statement of Operations. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss), net of applicable tax, consisted of the following: June 30, December 31, 2018 2017 Foreign currency translation adjustments $ (244 ) $ 10,671 Pension plan obligations — 38 Accumulated other comprehensive income (loss) $ (244 ) $ 10,709 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY On July 30, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $10,000 of the Company's common stock. The Company intends to make purchases from time to time as market conditions warrant. This authorization does not expire. During the three and six months ended June 30, 2018 , the Company repurchased 2,200 shares on the open market for $3 . As of June 30, 2018 , under the July 30, 2015 authorization, the Company had repurchased 3,641,605 shares for a total cost of $7,374 . |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 6 Months Ended |
Jun. 30, 2018 | |
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. 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. The following information is presented net of discontinued operations. For more information see Note 5. Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter-Segment Elimination Total For The Three Months Ended June 30, 2018 Total revenue $ 3,509 $ 9,600 $ 3,906 $ — $ — $ 17,015 Total gross margin $ 2,923 $ 5,759 $ 2,119 $ — $ — $ 10,801 EBITDA (loss) (a) $ (76 ) $ 508 $ 34 $ (1,768 ) $ — $ (1,302 ) Depreciation and amortization — — 2 — — 2 Intercompany interest income (expense), net — (108 ) — 108 — — Interest income (expense), net — — — 60 — 60 Income (loss) from continuing operations before income taxes $ (76 ) $ 400 $ 32 $ (1,600 ) $ — $ (1,244 ) For The Six Months Ended June 30, 2018 Total revenue $ 7,209 $ 18,425 $ 7,596 $ — $ — $ 33,230 Total gross margin $ 6,046 $ 10,682 $ 4,227 $ — $ — $ 20,955 EBITDA (loss) (a) $ 215 $ 1,052 $ 45 $ (5,339 ) $ — $ (4,027 ) Depreciation and amortization — — 2 — — 2 Intercompany interest income (expense), net — (108 ) — 108 — — Interest income (expense), net — — — 60 — 60 Income (loss) from continuing operations before income taxes $ 215 $ 944 $ 43 $ (5,171 ) $ — $ (3,969 ) As of June 30, 2018 Accounts receivable, net $ 2,605 $ 6,787 $ 4,803 $ 6 $ — $ 14,201 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 5 $ — $ — $ 5 Total assets $ 4,618 $ 9,863 $ 8,643 $ 31,398 $ — $ 54,522 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- Segment Elimination Total For The Three Months Ended June 30, 2017 Total revenue $ 4,161 $ 6,817 $ 3,539 $ — $ — $ 14,517 Total gross margin $ 3,731 $ 4,726 $ 2,248 $ — $ — $ 10,705 EBITDA (loss) (a) $ 301 $ 1,055 $ 364 $ (2,125 ) $ — $ (405 ) Depreciation and amortization — — — 79 $ — 79 Interest income (expense), net — — — (4 ) $ — (4 ) Income (loss) from continuing operations before income taxes $ 301 $ 1,055 $ 364 $ (2,208 ) $ — $ (488 ) For The Six Months Ended June 30, 2017 Total revenue $ 8,475 $ 13,159 $ 6,838 $ — $ — $ 28,472 Total gross margin $ 7,571 $ 8,911 $ 4,225 $ — $ — $ 20,707 Business reorganization $ (91 ) $ — $ 1 $ (23 ) $ — $ (113 ) EBITDA (loss) (a) $ 635 $ 1,797 $ 541 $ (3,630 ) $ — $ (657 ) Depreciation and amortization 2 — — 158 — 160 Interest income (expense), net — — — (4 ) — (4 ) Income (loss) from continuing operations before income taxes $ 633 $ 1,797 $ 541 $ (3,792 ) $ — $ (821 ) As of June 30, 2017 Accounts receivable, net $ 2,378 $ 4,793 $ 3,803 $ — $ — $ 10,974 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 1 $ 201 $ — $ 202 Total assets $ 5,637 $ 5,117 $ 4,868 $ 2,298 $ — $ 17,920 (a) SEC Regulation S-K Item 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. (b) Comprised of property and equipment. Corporate assets are included in the United States. Geographic Data Reporting A summary of revenues for the three and six months ended June 30, 2018 and 2017 and long-lived assets and net assets by geographic area as of June 30, 2018 and 2017 , presented net of discontinued operations, were as follows: United Kingdom Australia United States Other Total For The Three Months Ended June 30, 2018 Revenue (a) $ 3,829 $ 8,476 $ 3,281 $ 1,429 $ 17,015 For The Three Months Ended June 30, 2017 Revenue (a) $ 2,682 $ 5,499 $ 3,943 $ 2,393 $ 14,517 For The Six Months Ended June 30, 2018 Revenue (a) $ 7,364 $ 16,115 $ 6,815 $ 2,936 $ 33,230 For The Six Months Ended June 30, 2017 Revenue (a) $ 5,298 $ 10,836 $ 8,047 $ 4,291 $ 28,472 As of June 30, 2018 Long-lived assets, net of accumulated depreciation and amortization (b) $ 5 $ — $ — $ — $ 5 Net assets $ 3,538 $ 3,414 $ 30,069 $ 5,238 $ 42,259 As of June 30, 2017 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 201 $ 1 $ 202 Net assets $ 1,865 $ 2,071 $ 2,292 $ 1,932 $ 8,160 (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. Corporate assets are included in the United States. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our disaggregated revenues from continuing operations by revenue source. For additional information on the disaggregated revenues by geographical segment, see Note 13 of the Notes to the Condensed Consolidated Financial Statements. Three Months Ended June 30, 2018 RPO Recruitment RPO Contracting Total Revenue $ 11,696 $ 5,319 $ 17,015 Direct costs (1) 1,464 4,750 6,214 Gross margin $ 10,232 $ 569 $ 10,801 Three Months Ended June 30, 2017 RPO Recruitment RPO Contracting Total Revenue $ 10,987 $ 3,530 $ 14,517 Direct costs (1) 642 3,170 3,812 Gross margin $ 10,345 $ 360 $ 10,705 Six Months Ended June 30, 2018 RPO Recruitment RPO Contracting Total Revenue $ 23,385 $ 9,845 $ 33,230 Direct costs (1) 3,482 8,793 12,275 Gross margin $ 19,903 $ 1,052 $ 20,955 Six Months Ended June 30, 2017 RPO Recruitment RPO Contracting Total Revenue $ 21,055 $ 7,417 $ 28,472 Direct costs (1) 1,090 6,675 7,765 Gross margin $ 19,965 $ 742 $ 20,707 (1) Direct costs in RPO 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. The region where services are provided, the mix of RPO recruitment and RPO contracting, 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 "Salaries and related" in the Condensed Consolidated Statement of Operations. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reconciliation Of The Gross Proceeds To The Net Proceeds | The following is a reconciliation of the gross proceeds to the net proceeds as presented in the statement of cash flows for the six months ended June 30, 2018. Gross proceeds $ 38,960 Add: purchase price adjustments 149 Less: cash and restricted cash sold (9,547 ) Less: transaction costs (1,595 ) Net cash proceeds as presented in the statement of cash flows $ 27,967 |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the classes of assets and liabilities from the RTM businesses included in discontinued operations were as follows: June 30, December 31, Cash $ — $ 15,460 Accounts receivable — 60,333 Prepaid and other current assets — 3,737 Total current assets — 79,530 Property and equipment, net — 6,251 Deferred tax assets, non-current — 6,080 Other assets, non-current — 1,570 Total non-current assets — 13,901 Total assets $ — $ 93,431 Accounts payable $ 42 $ 5,764 Accrued expenses and other current liabilities 324 39,108 Short-term borrowings — 7,080 Total current liabilities 366 51,952 Total non-current liabilities — 6,210 Total liabilities $ 366 $ 58,162 Reported results for the discontinued operations by period were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ — $ 99,074 $ 108,463 $ 188,524 Gross margin — 37,621 38,663 70,051 Operating expenses: Salaries and related — 26,963 29,032 51,952 Other selling, general and administrative — 7,368 8,355 14,318 Depreciation and amortization — 608 680 1,193 Business reorganization — (2 ) 50 290 Operating income (loss) — 2,684 546 2,298 Non-operating income (expense): Interest income (expense), net — (115 ) (88 ) (203 ) Other non-operating income (loss) — 7 216 (337 ) Income (Loss) from discontinued operations before taxes and gain (loss) on sale — 2,576 674 1,758 Gain (loss) from sale of discontinued operations (11 ) — 14,032 — Income (loss) from discontinued operations before income taxes (11 ) 2,576 14,706 1,758 Provision (benefit) for income taxes — 616 1,099 633 Income (loss) from discontinued operations $ (11 ) $ 1,960 $ 13,607 $ 1,125 Depreciation, capital expenditures, and significant operating and investment non cash items of the discontinued operations by period were as follows: Six Months Ended June 30, 2018 2017 Depreciation and amortization $ 680 $ 1,193 Stock-based compensation expense $ 233 $ 114 Capital expenditures $ 284 $ 425 |
Disaggregation of Revenue From Discontinued Operations | The following table presents our disaggregated revenues from discontinued operations by revenue source. Three Months Ended June 30, 2018 Permanent Recruitment Contracting Talent Management Other Total Revenue $ — $ — $ — $ — $ — Direct costs (1) — — — — — Gross margin $ — $ — $ — $ — $ — Three Months Ended June 30, 2017 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 21,255 $ 66,695 $ 10,559 $ 565 $ 99,074 Direct costs (1) 120 58,886 1,915 532 61,453 Gross margin $ 21,135 $ 7,809 $ 8,644 $ 33 $ 37,621 Six Months Ended June 30, 2018 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 20,700 $ 76,615 $ 10,694 $ 454 $ 108,463 Direct costs (1) 190 67,980 1,225 405 69,800 Gross margin $ 20,510 $ 8,635 $ 9,469 $ 49 $ 38,663 Six Months Ended June 30, 2017 Permanent Recruitment Contracting Talent Management Other Total Revenue $ 39,253 $ 129,229 $ 18,974 $ 1,068 $ 188,524 Direct costs (1) 249 113,773 3,413 1,038 118,473 Gross margin $ 39,004 $ 15,456 $ 15,561 $ 30 $ 70,051 (1) Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, 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 categories. 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. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, restricted stock quantity and vesting conditions | summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the six months ended June 30, 2018 : Vesting conditions Number of Restricted Stock Units Granted Performance and service conditions (1) (2) 220,000 Performance and service conditions (1) (3) 207,353 Total shares of stock award granted 427,353 (1) The performance conditions with respect to restricted stock units may be satisfied as follows: (a) For employees from the Americas, APAC, and Europe 70% of the restricted stock units may be earned on the basis of performance as measured by a "regional adjusted EBITDA," and 30% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA"; and (b) For employees from the Corporate office 50% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA," and 50% of the restricted stock units may be earned on the basis of performance as measured by a "corporate costs" target. (2) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows: (a) 33% of the restricted stock units will vest on the first anniversary of the grant date; (b) 33% of the restricted stock units will vest on the second anniversary of the grant date; and (c) 34% of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. (3) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows: (a) 66.6% of the restricted stock units will vest on the first anniversary of the last day of the performance period; (b) 16.7% of the restricted stock units will vest on the second anniversary of the last day of the performance period; (c) 16.7% of the restricted stock units will vest on the third anniversary of the last day of the performance period; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. |
Schedule of stock-based compensation expense | For the three and six months ended June 30, 2018 and 2017 , the Company’s stock-based compensation expense related to stock options and restricted stock units were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Stock options $ — $ — $ — $ — Restricted stock units 180 517 874 708 Total $ 180 $ 517 $ 874 $ 708 |
Changes in stock options | Changes in the Company’s stock options for the six months ended June 30, 2018 and 2017 were as follows: Six Months Ended June 30, 2018 2017 Number of Options Weighted Average Exercise Price per Share Number of Options Weighted Average Exercise Price per Share Options outstanding at January 1, 100,000 $ 3.86 123,500 $ 6.16 Expired/forfeited — — (23,500 ) 15.97 Options outstanding at June 30, 100,000 $ 3.86 100,000 $ 3.86 Options exercisable at June 30, 100,000 $ 3.86 100,000 $ 3.86 |
Changes in restricted stock units | Changes in the Company’s restricted stock units for the six months ended June 30, 2018 and 2017 were as follows: Six Months Ended June 30, 2018 2017 Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested restricted stock units at January 1, 1,088,933 $ 1.16 480,000 $ 2.79 Granted 521,507 1.74 1,323,033 1.07 Shares earned above target (a) 244,855 1.00 — — Vested (1,256,445 ) 1.19 (381,760 ) 1.47 Forfeited (7,515 ) 1.00 (332,340 ) 2.79 Unvested restricted stock units at June 30, 591,335 $ 1.55 1,088,933 $ 1.16 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Open Years Subject to Tax Examination | As of June 30, 2018 , 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 2014 Majority of U.S. state and local jurisdictions 2013 Australia 2017 Belgium 2015 Canada 2013 Netherlands 2012 Switzerland 2013 United Kingdom 2017 Jurisdictions in Asia 2018 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Earnings (loss) per share ("EPS"): EPS - basic and diluted: Income (loss) from continuing operations $ (0.04 ) $ (0.02 ) $ (0.13 ) $ (0.04 ) Income (loss) from discontinued operations — 0.06 0.42 0.04 Net income (loss) $ (0.04 ) $ 0.04 $ 0.29 $ — EPS numerator - basic and diluted: Income (loss) from continuing operations $ (1,353 ) $ (734 ) $ (4,250 ) $ (1,213 ) Income (loss) from discontinued operations (11 ) 1,960 13,607 1,125 Net income (loss) $ (1,364 ) $ 1,226 $ 9,357 $ (88 ) EPS denominator (in thousands): Weighted average common stock outstanding - basic 32,277 32,048 32,212 32,104 Common stock equivalents: stock options and restricted stock units (a) — — — — Weighted average number of common stock outstanding - diluted 32,277 32,048 32,212 32,104 (a) 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 6 for further details on outstanding stock options and unvested restricted stock units) 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 and six months ended June 30, 2018 and 2017 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Unvested restricted stock units 591,335 1,088,933 591,335 1,088,933 Stock options 100,000 100,000 100,000 100,000 Total 691,335 1,188,933 691,335 1,188,933 |
CASH, CASH EQUIVALENTS, AND R26
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restricted Cash and Investments [Abstract] | |
Schedule of restricted cash and cash equivalents | of June 30, 2018 and December 31, 2017 was as follows: June 30, December 31, Cash and cash equivalents of continuing operations $ 38,641 $ 5,580 Cash and cash equivalents of discontinuing operations — 15,460 Restricted cash included in prepaid and other 111 112 Restricted cash included in other assets 317 102 Restricted cash included in current assets of discontinued operations — 183 Restricted cash included in non-current assets of discontinued operations — 569 Total cash, cash equivalents, and restricted cash $ 39,069 $ 22,006 |
ACCUMUATED OTHER COMPREHENSIVE
ACCUMUATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss), net of applicable tax, consisted of the following: June 30, December 31, 2018 2017 Foreign currency translation adjustments $ (244 ) $ 10,671 Pension plan obligations — 38 Accumulated other comprehensive income (loss) $ (244 ) $ 10,709 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter-Segment Elimination Total For The Three Months Ended June 30, 2018 Total revenue $ 3,509 $ 9,600 $ 3,906 $ — $ — $ 17,015 Total gross margin $ 2,923 $ 5,759 $ 2,119 $ — $ — $ 10,801 EBITDA (loss) (a) $ (76 ) $ 508 $ 34 $ (1,768 ) $ — $ (1,302 ) Depreciation and amortization — — 2 — — 2 Intercompany interest income (expense), net — (108 ) — 108 — — Interest income (expense), net — — — 60 — 60 Income (loss) from continuing operations before income taxes $ (76 ) $ 400 $ 32 $ (1,600 ) $ — $ (1,244 ) For The Six Months Ended June 30, 2018 Total revenue $ 7,209 $ 18,425 $ 7,596 $ — $ — $ 33,230 Total gross margin $ 6,046 $ 10,682 $ 4,227 $ — $ — $ 20,955 EBITDA (loss) (a) $ 215 $ 1,052 $ 45 $ (5,339 ) $ — $ (4,027 ) Depreciation and amortization — — 2 — — 2 Intercompany interest income (expense), net — (108 ) — 108 — — Interest income (expense), net — — — 60 — 60 Income (loss) from continuing operations before income taxes $ 215 $ 944 $ 43 $ (5,171 ) $ — $ (3,969 ) As of June 30, 2018 Accounts receivable, net $ 2,605 $ 6,787 $ 4,803 $ 6 $ — $ 14,201 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 5 $ — $ — $ 5 Total assets $ 4,618 $ 9,863 $ 8,643 $ 31,398 $ — $ 54,522 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- Segment Elimination Total For The Three Months Ended June 30, 2017 Total revenue $ 4,161 $ 6,817 $ 3,539 $ — $ — $ 14,517 Total gross margin $ 3,731 $ 4,726 $ 2,248 $ — $ — $ 10,705 EBITDA (loss) (a) $ 301 $ 1,055 $ 364 $ (2,125 ) $ — $ (405 ) Depreciation and amortization — — — 79 $ — 79 Interest income (expense), net — — — (4 ) $ — (4 ) Income (loss) from continuing operations before income taxes $ 301 $ 1,055 $ 364 $ (2,208 ) $ — $ (488 ) For The Six Months Ended June 30, 2017 Total revenue $ 8,475 $ 13,159 $ 6,838 $ — $ — $ 28,472 Total gross margin $ 7,571 $ 8,911 $ 4,225 $ — $ — $ 20,707 Business reorganization $ (91 ) $ — $ 1 $ (23 ) $ — $ (113 ) EBITDA (loss) (a) $ 635 $ 1,797 $ 541 $ (3,630 ) $ — $ (657 ) Depreciation and amortization 2 — — 158 — 160 Interest income (expense), net — — — (4 ) — (4 ) Income (loss) from continuing operations before income taxes $ 633 $ 1,797 $ 541 $ (3,792 ) $ — $ (821 ) As of June 30, 2017 Accounts receivable, net $ 2,378 $ 4,793 $ 3,803 $ — $ — $ 10,974 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 1 $ 201 $ — $ 202 Total assets $ 5,637 $ 5,117 $ 4,868 $ 2,298 $ — $ 17,920 (a) SEC Regulation S-K Item 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. (b) Comprised of property and equipment. Corporate assets are included in the United States. |
Revenue and long-lived assets by geographic area | A summary of revenues for the three and six months ended June 30, 2018 and 2017 and long-lived assets and net assets by geographic area as of June 30, 2018 and 2017 , presented net of discontinued operations, were as follows: United Kingdom Australia United States Other Total For The Three Months Ended June 30, 2018 Revenue (a) $ 3,829 $ 8,476 $ 3,281 $ 1,429 $ 17,015 For The Three Months Ended June 30, 2017 Revenue (a) $ 2,682 $ 5,499 $ 3,943 $ 2,393 $ 14,517 For The Six Months Ended June 30, 2018 Revenue (a) $ 7,364 $ 16,115 $ 6,815 $ 2,936 $ 33,230 For The Six Months Ended June 30, 2017 Revenue (a) $ 5,298 $ 10,836 $ 8,047 $ 4,291 $ 28,472 As of June 30, 2018 Long-lived assets, net of accumulated depreciation and amortization (b) $ 5 $ — $ — $ — $ 5 Net assets $ 3,538 $ 3,414 $ 30,069 $ 5,238 $ 42,259 As of June 30, 2017 Long-lived assets, net of accumulated depreciation and amortization (b) $ — $ — $ 201 $ 1 $ 202 Net assets $ 1,865 $ 2,071 $ 2,292 $ 1,932 $ 8,160 (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. Corporate assets are included in the United States. |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 6 Months Ended |
Jun. 30, 2018countriessegments | |
Description of Business [Abstract] | |
Number of Reportable Segments | segments | 3 |
Number of Countries in which Entity Operates | countries | 9 |
ACCOUNTING PRONOUNCEMENTS ACCOU
ACCOUNTING PRONOUNCEMENTS ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (Decrease) in Prepaid Expense and Other Assets | $ 582 | $ 1,080 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 39,069 | 15,801 | $ 22,006 | $ 22,511 |
Accounting Standards Update 2016-18 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (Decrease) in Prepaid Expense and Other Assets | 247 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 942 | $ 1,189 |
REVENUE RECOGNITION REVENUE REC
REVENUE RECOGNITION REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 17,015 | $ 14,517 | $ 33,230 | $ 28,472 |
Direct costs | 6,214 | 3,812 | 12,275 | 7,765 |
Gross margin | 10,801 | 10,705 | 20,955 | 20,707 |
RPO Recruitment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,696 | 10,987 | 23,385 | 21,055 |
Direct costs | 1,464 | 642 | 3,482 | 1,090 |
Gross margin | 10,232 | 10,345 | 19,903 | 19,965 |
RPO Contracting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,319 | 3,530 | 9,845 | 7,417 |
Direct costs | 4,750 | 3,170 | 8,793 | 6,675 |
Gross margin | $ 569 | $ 360 | $ 1,052 | $ 742 |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Additional Details (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on disposition of business | $ 14,032 | $ 0 | ||
Currency transaction and translation reclassification adjustment | $ 0 | $ 0 | 10,819 | $ 0 |
RTM | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on disposition of business | 14,032 | |||
Proceeds from divestiture of businesses | 38,960 | |||
Debt assumed by buyer | $ 17,626 | 17,626 | ||
Currency transaction and translation reclassification adjustment | $ 10,819 |
DISCONTINUED OPERATIONS - Recon
DISCONTINUED OPERATIONS - Reconcilliation (Details) - RTM - Discontinued Operations $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross proceeds | $ 38,960 |
Add: purchase price adjustments | 149 |
Less: cash and restricted cash sold | (9,547) |
Less: transaction costs | (1,595) |
Net cash proceeds as presented in the statement of cash flows | $ 27,967 |
DISCONTINUED OPERATIONS - Balan
DISCONTINUED OPERATIONS - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Total current assets | $ 0 | $ 79,530 |
Total non-current assets | 0 | 13,901 |
Liabilities | ||
Total current liabilities | 366 | 51,952 |
Total non-current liabilities | 0 | 6,210 |
Discontinued Operations | RTM | ||
Assets | ||
Cash | 0 | 15,460 |
Accounts receivable | 0 | 60,333 |
Prepaid and other current assets | 0 | 3,737 |
Total current assets | 0 | 79,530 |
Property and equipment, net | 0 | 6,251 |
Deferred tax assets, non-current | 0 | 6,080 |
Other assets, non-current | 0 | 1,570 |
Total non-current assets | 0 | 13,901 |
Total assets | 0 | 93,431 |
Liabilities | ||
Accounts payable | 42 | 5,764 |
Accrued expenses and other current liabilities | 324 | 39,108 |
Short-term borrowings | 0 | 7,080 |
Total current liabilities | 366 | 51,952 |
Total non-current liabilities | 0 | 6,210 |
Total liabilities | $ 366 | $ 58,162 |
DISCONTINUED OPERATIONS DISCO35
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations | $ (11) | $ 1,960 | $ 13,607 | $ 1,125 |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 99,074 | 108,463 | 188,524 |
Gross margin | 0 | 37,621 | 38,663 | 70,051 |
Salaries and related | 0 | 26,963 | 29,032 | 51,952 |
Other selling, general and administrative | 0 | 7,368 | 8,355 | 14,318 |
Depreciation and amortization | 0 | 608 | 680 | 1,193 |
Business reorganization | 0 | (2) | 50 | 290 |
Operating income (loss) | 0 | 2,684 | 546 | 2,298 |
Interest income (expense), net | 0 | (115) | (88) | (203) |
Other non-operating income (loss) | 0 | 7 | 216 | (337) |
Income (Loss) from discontinued operations before taxes and gain (loss) on sale | 0 | 2,576 | 674 | 1,758 |
Gain (loss) from sale of discontinued operations | (11) | 0 | 14,032 | 0 |
Income (loss) from discontinued operations before income taxes | (11) | 2,576 | 14,706 | 1,758 |
Provision (benefit) for income taxes | 0 | 616 | 1,099 | 633 |
Income (loss) from discontinued operations | $ (11) | $ 1,960 | $ 13,607 | $ 1,125 |
DISCONTINUED OPERATIONS DISCO36
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Depreciation and amortization | $ 680 | $ 1,193 |
Stock-based compensation expense | 233 | 114 |
Capital expenditures | $ 284 | $ 425 |
DISCONTINUED OPERATIONS DISCO37
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 17,015 | $ 14,517 | $ 33,230 | $ 28,472 |
Direct costs | 6,214 | 3,812 | 12,275 | 7,765 |
Gross margin | 10,801 | 10,705 | 20,955 | 20,707 |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 99,074 | 108,463 | 188,524 |
Direct costs | 0 | 61,453 | 69,800 | 118,473 |
Gross margin | 0 | 37,621 | 38,663 | 70,051 |
Permanent Recruitment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 11,696 | 10,987 | 23,385 | 21,055 |
Direct costs | 1,464 | 642 | 3,482 | 1,090 |
Gross margin | 10,232 | 10,345 | 19,903 | 19,965 |
Permanent Recruitment | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 21,255 | 20,700 | 39,253 |
Direct costs | 0 | 120 | 190 | 249 |
Gross margin | 0 | 21,135 | 20,510 | 39,004 |
Contracting | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 66,695 | 76,615 | 129,229 |
Direct costs | 0 | 58,886 | 67,980 | 113,773 |
Gross margin | 0 | 7,809 | 8,635 | 15,456 |
Talent Management | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 10,559 | 10,694 | 18,974 |
Direct costs | 0 | 1,915 | 1,225 | 3,413 |
Gross margin | 0 | 8,644 | 9,469 | 15,561 |
Other | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 565 | 454 | 1,068 |
Direct costs | 0 | 532 | 405 | 1,038 |
Gross margin | $ 0 | $ 33 | $ 49 | $ 30 |
STOCK-BASED COMPENSATION Stock-
STOCK-BASED COMPENSATION Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 24, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,400,000 | ||||
Common stock reserved for issuance to participants | 1,284,467 | 1,284,467 | |||
Share-based compensation arrangement award vesting period | 5 years | ||||
Stock-based compensation | $ 180 | $ 517 | $ 874 | $ 708 | |
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Shares Earned Above Target | 244,855 | 0 | |||
Granted, Number of share of restricted stock (shares) | 521,507 | 1,323,033 | |||
Stock-based compensation | 180 | 517 | $ 874 | $ 708 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Shares Earned Above Target, Weighted Average Grant Date Fair Value | $ 1 | $ 0 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 427,353 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Option Award Exercise Price as a Percentage of the Fair Market Value of a Share of Common Stock | 100.00% | ||||
Stock-based compensation | $ 0 | $ 0 | $ 0 | $ 0 | |
Non-Employee Director | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of share of restricted stock (shares) | 94,154 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 967,938 | 967,938 | |||
Americas, Asia Pacific and Europe [Member] | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of EBITDA | 70.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of Gross Margin Ratio | 30.00% | ||||
Corporate | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of Gross Margin Ratio | 50.00% | ||||
Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | ||||
Share-based Compensation Award, Tranche One [Member] | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance and service conditions | 220,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 66.60% | ||||
Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | ||||
Share-based Compensation Award, Tranche Two [Member] | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance and service conditions | 207,353 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 16.70% | ||||
Share-based Compensation Award, Tranche Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 34.00% | ||||
Share-based Compensation Award, Tranche Three [Member] | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 16.70% |
STOCK-BASED COMPENSATION Stock
STOCK-BASED COMPENSATION Stock options activity (Details) - Stock options - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Option Award Exercise Price as a Percentage of the Fair Market Value of a Share of Common Stock | 100.00% | |
Total compensation cost not yet recognized | $ 0 | |
Weighted average service period | 0 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Number of Options, At the Beginning of the Year (shares) | 100,000 | 123,500 |
Expired, number of options (shares) | 0 | (23,500) |
Options outstanding, Number of Options, At the End of the Period (shares) | 100,000 | 100,000 |
Options exercisable, Number of Options, At the End of the Period (shares) | 100,000 | 100,000 |
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 (usd per share) | $ 3.86 | $ 6.16 |
Expired, weighted average exercise price per share (usd per share) | 0 | 15.97 |
Options outstanding, weighted average exercise price per share, At the End of the Period (usd per share) | 3.86 | 3.86 |
Options exercisable, weighted average exercise price per share, At the End of the Period (usd per share) | $ 3.86 | $ 3.86 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 5 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years |
STOCK-BASED COMPENSATION Restri
STOCK-BASED COMPENSATION Restricted stock units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation cost not yet recognized | $ 732 | |
Weighted average service period | 2 years 5 months 12 days | |
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 (shares) | 1,088,933 | 480,000 |
Granted, Number of share of restricted stock (shares) | 521,507 | 1,323,033 |
Vested, number of share of restricted stock (shares) | (1,256,445) | (381,760) |
Forfeited, number of share of restricted stock (shares) | (7,515) | (332,340) |
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the End of the Period (shares) | 591,335 | 1,088,933 |
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 (usd per share) | $ 1.16 | $ 2.79 |
Granted, weighted average grant date fair value (usd per share) | 1.74 | 1.07 |
Vested, weighted average grant date fair value (usd per share) | 1.19 | 1.47 |
Forfeited, weighted average grant date fair value (usd per share) | 1 | 2.79 |
Non-vested restricted stock (units), weighted average grant date fair value, At the End of the Period (usd per share) | $ 1.55 | $ 1.16 |
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Shares Earned Above Target | 244,855 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Shares Earned Above Target, Weighted Average Grant Date Fair Value | $ 1 | $ 0 |
Non-Employee Director | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted, Number of share of restricted stock (shares) | 94,154 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Tax open years subject to examination [Line Items] | |||||
Tax Cuts And Jobs Act Of 2017 Incomplete Accounting Provisional Federal And State Income Tax Expense Benefit | $ 0 | ||||
Income tax benefit (provision) | $ 281,000 | $ 392,000 | |||
Pre-tax income (loss) | $ (1,244,000) | $ (488,000) | $ (3,969,000) | $ (821,000) | |
Effective income tax rate | (7.10%) | (47.70%) | |||
U.S. Federal statutory rate | 21.00% | 35.00% | |||
Unrecognized tax benefits | 1,978,000 | $ 1,978,000 | 1,682,000 | ||
Accrued interest and penalties | 577,000 | 577,000 | $ 566,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 28,000 | $ 28,000 | |||
U.S. Federal [Member] | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,014 | ||||
Other U.S. state and local juristictions [Member] | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,013 | ||||
Australia | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,017 | ||||
BELGIUM | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,015 | ||||
CANADA | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,013 | ||||
NETHERLANDS | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,012 | ||||
SWITZERLAND | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,013 | ||||
United Kingdon | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,017 | ||||
Justifications in Asia [Member] | |||||
Tax open years subject to examination [Line Items] | |||||
Open Tax Year | 2,018 | ||||
Minimum | |||||
Tax open years subject to examination [Line Items] | |||||
Possible decrease of unrecognized tax benefits | 0 | $ 0 | |||
Maximum | |||||
Tax open years subject to examination [Line Items] | |||||
Possible decrease of unrecognized tax benefits | $ 180,000 | $ 180,000 |
EARNINGS (LOSS) PER SHARE (Comp
EARNINGS (LOSS) PER SHARE (Computation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings (loss) per share (EPS): | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.04) | $ (0.02) | $ (0.13) | $ (0.04) |
Income (loss) from discontinued operations (in dollars per share) | 0 | 0.06 | 0.42 | 0.04 |
Basic and diluted earnings (loss) per share | $ (0.04) | $ 0.04 | $ 0.29 | $ 0 |
EPS numerator - basic and diluted: | ||||
Income (loss) from continuing operations | $ (1,353) | $ (734) | $ (4,250) | $ (1,213) |
Income (loss) from discontinued operations, net of income taxes | (11) | 1,960 | 13,607 | 1,125 |
Net income (loss) | $ (1,364) | $ 1,226 | $ 9,357 | $ (88) |
EPS denominator: | ||||
Weighted-average common stock outstanding - basic (in shares) | 32,277 | 32,048 | 32,212 | 32,104 |
Common stock equivalents: stock options and restricted stock units | 0 | 0 | 0 | 0 |
Weighted-average number of common stock outstanding - diluted (in shares) | 32,277 | 32,048 | 32,212 | 32,104 |
EARNINGS (LOSS) PER SHARE (Anti
EARNINGS (LOSS) PER SHARE (Antidilutive securities excluded from the computation of earnings (loss) per share) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 691,335 | 1,188,933 | 691,335 | 1,188,933 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 591,335 | 1,088,933 | 591,335 | 1,088,933 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 100,000 | 100,000 | 100,000 | 100,000 |
CASH, CASH EQUIVALENTS, AND R44
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 38,641 | $ 5,580 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 39,069 | 22,006 | $ 15,801 | $ 22,511 |
Continuing Operations [Member] | Prepaid Expenses and Other Current Assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 111 | 112 | ||
Continuing Operations [Member] | Other Noncurrent Assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 317 | 102 | ||
Discontinued Operations | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 0 | 15,460 | ||
Discontinued Operations | Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 0 | 183 | ||
Discontinued Operations | Other Assets Noncurrent [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 0 | $ 569 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | |||
Severance Costs | $ 601,000 | $ 601,000 | |
Legal Reserves | 0 | 0 | $ 0 |
Chief Executive Officer | |||
Commitments And Contingencies [Line Items] | |||
Compensation | $ 0 | $ 2,024,000 |
ACCUMUATED OTHER COMPREHENSIV46
ACCUMUATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ (244) | $ 10,671 |
Pension plan obligations | 0 | 38 |
Accumulated other comprehensive income (loss) | $ (244) | $ 10,709 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Thousands, $ in Thousands | 6 Months Ended | 35 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jul. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount of stock repurchase program | $ 10,000 | |||
Purchase of treasury stock | $ 3 | $ 522 | ||
Open Market | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 3 | |||
Stock Repurchased and Retired During Period, Shares | 2,200 | |||
June 30 2015 Authorization [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 3,641,605 | |||
Purchase of treasury stock | $ 7,374 |
SEGMENT AND GEOGRAPHIC DATA Seg
SEGMENT AND GEOGRAPHIC DATA Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segments | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | segments | 3 | ||||
Revenue | $ 17,015 | $ 14,517 | $ 33,230 | $ 28,472 | |
Gross margin | 10,801 | 10,705 | 20,955 | 20,707 | |
Business reorganization | 0 | 1 | 0 | (113) | |
EBITDA (loss) | (1,302) | (405) | (4,027) | (657) | |
Depreciation and amortization | 2 | 79 | 2 | 160 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | 0 | 0 | |||
Interest income (expense), net | 60 | (4) | 60 | (4) | |
Income (loss) from continuing operations before provision for income taxes | (1,244) | (488) | (3,969) | (821) | |
Accounts receivable, net | 14,201 | 10,974 | 14,201 | 10,974 | $ 11,545 |
Long-lived assets, net of accumulated depreciation and amortization (b) | 5 | 202 | 5 | 202 | |
Total assets | 54,522 | 17,920 | 54,522 | 17,920 | $ 111,640 |
Operating Segments | Hudson Americas | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 3,509 | 4,161 | 7,209 | 8,475 | |
Gross margin | 2,923 | 3,731 | 6,046 | 7,571 | |
Business reorganization | (91) | ||||
EBITDA (loss) | (76) | 301 | 215 | 635 | |
Depreciation and amortization | 0 | 0 | 0 | 2 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | 0 | 0 | |||
Interest income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations before provision for income taxes | (76) | 301 | 215 | 633 | |
Accounts receivable, net | 2,605 | 2,378 | 2,605 | 2,378 | |
Long-lived assets, net of accumulated depreciation and amortization (b) | 0 | 0 | 0 | 0 | |
Total assets | 4,618 | 5,637 | 4,618 | 5,637 | |
Operating Segments | Hudson Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 9,600 | 6,817 | 18,425 | 13,159 | |
Gross margin | 5,759 | 4,726 | 10,682 | 8,911 | |
Business reorganization | 0 | ||||
EBITDA (loss) | 508 | 1,055 | 1,052 | 1,797 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | (108) | (108) | |||
Interest income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations before provision for income taxes | 400 | 1,055 | 944 | 1,797 | |
Accounts receivable, net | 6,787 | 4,793 | 6,787 | 4,793 | |
Long-lived assets, net of accumulated depreciation and amortization (b) | 0 | 0 | 0 | 0 | |
Total assets | 9,863 | 5,117 | 9,863 | 5,117 | |
Operating Segments | Hudson Europe | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 3,906 | 3,539 | 7,596 | 6,838 | |
Gross margin | 2,119 | 2,248 | 4,227 | 4,225 | |
Business reorganization | 1 | ||||
EBITDA (loss) | 34 | 364 | 45 | 541 | |
Depreciation and amortization | 2 | 0 | 2 | 0 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | 0 | 0 | |||
Interest income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations before provision for income taxes | 32 | 364 | 43 | 541 | |
Accounts receivable, net | 4,803 | 3,803 | 4,803 | 3,803 | |
Long-lived assets, net of accumulated depreciation and amortization (b) | 5 | 1 | 5 | 1 | |
Total assets | 8,643 | 4,868 | 8,643 | 4,868 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Gross margin | 0 | 0 | 0 | 0 | |
Business reorganization | (23) | ||||
EBITDA (loss) | (1,768) | (2,125) | (5,339) | (3,630) | |
Depreciation and amortization | 0 | 79 | 0 | 158 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | 108 | 108 | |||
Interest income (expense), net | 60 | (4) | 60 | (4) | |
Income (loss) from continuing operations before provision for income taxes | (1,600) | (2,208) | (5,171) | (3,792) | |
Accounts receivable, net | 6 | 0 | 6 | 0 | |
Long-lived assets, net of accumulated depreciation and amortization (b) | 0 | 201 | 0 | 201 | |
Total assets | 31,398 | 2,298 | 31,398 | 2,298 | |
Inter-Segment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Gross margin | 0 | 0 | 0 | 0 | |
Business reorganization | 0 | ||||
EBITDA (loss) | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Segment Reporting Information, Intersegment Interest Income (Expense), Net | 0 | 0 | |||
Interest income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations before provision for income taxes | 0 | 0 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | 0 | 0 | |
Long-lived assets, net of accumulated depreciation and amortization (b) | 0 | 0 | 0 | 0 | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT AND GEOGRAPHIC DATA Geo
SEGMENT AND GEOGRAPHIC DATA Geographic Data Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 17,015 | $ 14,517 | $ 33,230 | $ 28,472 |
Long-lived assets | 5 | 202 | 5 | 202 |
Net assets | 42,259 | 8,160 | 42,259 | 8,160 |
United Kingdon | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,829 | 2,682 | 7,364 | 5,298 |
Long-lived assets | 5 | 0 | 5 | 0 |
Net assets | 3,538 | 1,865 | 3,538 | 1,865 |
Australia | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,476 | 5,499 | 16,115 | 10,836 |
Long-lived assets | 0 | 0 | 0 | 0 |
Net assets | 3,414 | 2,071 | 3,414 | 2,071 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,281 | 3,943 | 6,815 | 8,047 |
Long-lived assets | 0 | 201 | 0 | 201 |
Net assets | 30,069 | 2,292 | 30,069 | 2,292 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,429 | 2,393 | 2,936 | 4,291 |
Long-lived assets | 0 | 1 | 0 | 1 |
Net assets | $ 5,238 | $ 1,932 | $ 5,238 | $ 1,932 |