HSON - Earnings call 4 2020 | Hudson Global, Inc.

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Operator

Good morning, and welcome to the Hudson Global conference call for the fourth quarter of 2020.

Our call this morning will be led by Chief Executive Officer, Jeff Eberwein; and Chief Financial Officer, Matt Diamond.

Please be advised that the statements made during the presentation include forward-looking statements under applicable securities laws. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These risks are discussed in our Form 8-K filed today and in our other filings made with the Securities and Exchange Commission, including our annual report on Form 10-K. obligation any any statements. disclaims company to forward-looking update The

encourage adjusted references this made constant During their share. this and included of reference and release time will as helpful I measures as during call, both for currency, access our per their will their website, these posted they earnings to Reconciliations EBITDA on as earnings guide call. the course in such conference be are diluted slides, terms, to hudsonrpo.com. quarterly you materials adjusted at earnings serve non-GAAP

Eberwein. I the will now call turn over to Jeff

Jeffrey Eberwein

Thank thank update reviewing CFO, on our some additional in us interest you, an and fourth welcome, financial operator, for I'll will provide results. today. and highlights, everyone. our the you for joining Diamond, on and give Global We current details quarter your then by conditions. I'll start business XXXX Hudson Matt

reported year-over-year revenue, $XX.X to and the XXXX, of was $XX.X year-over-year million, fourth decreased net Adjusted revenue currency. $XX.X of million X% X% we in up formerly in ago. gross constant EBITDA costs constant profit, were of quarter $XXX,XXX as adjusted For referred We a adjusted X% year same year million currency. ago. reported down the fourth to of compared $XXX,XXX versus SG&A a the EBITDA quarter, period in

year period adjusted of a of reported of quarter XXXX We income year. share income $X.XX per the we net ago. million fourth $X.X $X.XX income the last income share net of net net versus or same addition, share per in In $X.X million versus reported $X.XX share or $X.XX per per adjusted in

region. by to Turning for performance quarter the

Adjusted ago. net from constant year in Our million X% constant Asia of million increased adjusted grew $X.X in of while Pacific revenue a EBITDA $X.X business declined adjusted EBITDA currency, X% currency.

and to year given this is $X.X level I'm million For accomplishment, To adjusted in facing an XXXX, of growth XXXX to the in Pacific business grew million our team the year. of Pacific produce this our results headwinds from been EBITDA amazing full Asia Asia able very XXXX. proud the $X.X generate have them

Our XX% in Adjusted currency, year's positive $XXX,XXX $XXX,XXX. Americas XX% of decreased EBITDA business net EBITDA revenue adjusted respectively. last versus revenue adjusted grew and of and constant loss

Our decline currency, in to compared EBITDA declined of constant XX% revenue $XXX,XXX EMEA quarter decreased business net quarter $XXX,XXX of saw revenue constant Adjusted the adjusted fourth in last in currency. year. fourth X% of the in EBITDA adjusted

additional over call CFO, details the Diamond, to some review from to turn now quarter. fourth I'll financial our Matt the

Matthew Diamond

good was as days acquisition from the morning, our December $XX.X quarter connection $X.X of XX, days goodwill which net balance the of cash. and restricted XX quarter. outstanding cash $X.X had cash flow XXXX, million Group, Thank In Days XX in XXXX, you, everyone. and was with The below the at company of of with and at used million XXXX. December million we $XXX,XXX assets. Coit sheet DSO Jeff, operations of sales intangible during fourth December slightly reflects We ended in

end for Australia in a we April nothing in finalized new had drawn needs split on results. fourth is forgiveness expected in of we reminder, at a facility support wins credit in to for full loan quarter million. forgiveness but down as $X.X market, this capital In working program This facility a client loan. out As XXXX, April into own its our that item labeled the XXXX, PPP received QX. a the of in XXXX, this we the we received new growth the SBA PPP quarter result In of line through loan fourth

more to in over review RPO our business. give current to back perspective Jeff our some call trends to the on business turn now I'll and

Jeffrey Eberwein

the for COVID-XX impacts our XXXX Thank a pandemic. Matt. due challenging year to of was and the business uniquely you, clients our

we the is well sciences and rebound, especially sectors, and Although begun in see positioned and levels we've uncertain, to XXXX. in our activity technology the life from we're recovery to alongside believe growth clients COVID-XX uneven to return

reminder, quarter us we As lowering and the our recovers we in pleased effectiveness, with far. XXXX. while thus and our profitable have its Americas, Coit we integration very in drive growth will the which fourth believe business acquired particularly structure, sales marketing are Group Also, cost our as improved also a enable in to

their Importantly, I challenging to want the highly business all clients our in working dedication flexibility, hard to and for our dedicated through. work and conditions thank of employees our been we've

please for the you line open can questions. Operator,

Operator

will question & first Josh from of your Vogel line Presenters, Instructions] come from Sidoti the [Operator Company.

Josh Vogel

the if positions It Jeff, you game still well. in about Coit business it's the to or region actually, X I curious in, fruition potentially relatively going months also that tech expands here. your is guess to pipeline you that. on I come early I with that any just seeing it's within or basis. in were there you presence. talk we're of integration was but was around serve that And about -- mentioned know how a global opportunities the clients X that

Jeffrey Eberwein

of X have was larger one and then question. on plus the Yes. not projects keep they're the X time what X partnership. doing, a be a we're international done have of being we really if good had done for after have business to X and is projects separately. And a tech other of or done couldn't equals really really it that -- might they if thought good But acquisition more international. just interestingly, partnering good separately. go with where And good synergy long momentum in will neither They've company No, our that some areas the doing really them is the that growth. good could And us potential seeing able

technology won it's came -- a Australia we've Coit. in example, through up ramping that medium-sized for through referral So a project

had Australia Coit. and So it's a we in their about presence it historically on they not couldn't might acquired have we a because haven't client not they done that have known own had

starting time. and are nice some synergies, and and only that's to going we grow see to we think better get bigger So over

Josh Vogel

about about opportunity today think of you can where to pipeline, just and more talk That's when small- medium-sized years the projects larger seeing helpful. past? we those with regard you're versus projects And

Jeffrey Eberwein

No, our different Fortune our where are always conversations lot momentum improve, where have in we've XXX our companies. market good and time-sensitive. particularly been really, that's clients base much region are to to in help being Yes. in has response to is it. months. response are A And sciences Most region of in more we new And we them and projects, business is and each our able biggest and good are the larger But a lot And another developing that sectors. and regard. business to that where technology quickly that care there that in and And seeing are that call is teams different And question. long thaw price-sensitive services. to demand, business our respond order we is sectors X a business is medium-sized new on really good of that. financial client start developed life health medium-sized Said each wins cycle wins way, more rapid and phenomenon. a fastest-growing this teams, start emerging. rapid recent to and recovery has having slow-moving cases been in important. and less in But no a of businesses, are seeing it sales And but that

Josh Vogel

of is the some know curious, appreciate drive management And costs quarter, you bit. how little are there. the potential Americas And And moves Darren. going? just rationalize under or bench that may We efficiencies? shifting the you there last I I other insight either strategic consolidated gears any and Europe to a that make was

Jeffrey Eberwein

question. Good No, well that thus really, far. really Yes. has gone

have, research we of good And -- those that that markets management you HR it the We there, just or team proposals or some where invested things are savings really do both sales rather to people we've some management Europe. one in taken the team Americas synergies marketing combined of were that like doing seeing And market client in marketing. do like on and working then market. than able and said, we and doing in or of

the a U.S. is reasons, we off variety that that been to be geographic the the was us in because believe. has area been that and starting we pay rebound, and of investment for we a that's and was lot hit sales the the of winning new growing that team strongest Americas, hardest in So the business have for going to XXXX, have the in area

Josh Vogel

back your queue. more the remains And sheet in I'll Great. very one balance question. robust. jump Obviously,

what they easing, also, you're where capital appetite they And allocation strategy in XXXX, maybe your too somewhat we some in with commentary wheelhouse? just Or your around think are challenges are capital prices. when COVID-related asking an in acquisitions, allocation. priorities high? for are Are Just about seeing environment just what around especially

Jeffrey Eberwein

always Yes. that's has few marketing, really those about investment as a catching term. focused of grow it areas medium have growth top over had in have great of important price the area, time. significant sales years. in to it all and But up of the at priority and do to internal at some it's we talked highest buying a tool technology, been previously particularly time, will stock our are that priority. all And the long investments. is We the being and then the look be And really won't when maybe we've history look No, quite toolkit, And back past the we those much but in amount and growth in internal our has on a stock we regard. buybacks to investments in a cheap. opportunities And past, particularly acquisition the as

encourage just a there. our I people so actions look as guide And to at would past

going we're things can things. on are good company, to many bigger the plus say could say, business to a is I just looking front, the a I so means be takes and really equal And there where goal looking, we team It at to target's so our do looking is X se. the strong important that be to would a line. and it's to is we end. a regard X looking thing are plus an in which we and ones are hard We're situations And X." over together guess at most it And ones make it's but to look get willing willing inside those buyer where per seller. environment equals there "Gee, X a are at that X, acquisition X Growth not really predict

Operator

[Operator of Sidoti question coming line we do Presenters, Instructions] Company. Josh a the Vogel & from from have follow-up

Josh Vogel

think we again. thoughts XXXX of mix a we should when curious around geographic year your like In directionally what absence and about here but just seeing exiting from based geographic about if today me guidance, sort potential today? split think you're sitting that. of on the the XXXX, Just your It's just business of any and how we're

Jeffrey Eberwein

bigger, a that of thumb, much Asia Good bigger around a Rough lower XX% in growth, everyone problem, math But incredibly XX%. and a Yes. this and Pac Americas XXXX. adjusted and Asia same them question. is that up basic is percentage much is base. rule XX%, if is the And held dollar because it's it's Europe around this is net particular, around for on business revenue, well just in so has Pac because

really a part of to and the team costs managing that virtual was did Our it. environment, transitioning good job

impacted. really exposure last some hit heavily it client heavily, have travel, retail, part year. really areas luxury, wasn't don't that the Another of just hard were We is to of our hospitality, base

And the impacted as COVID or was country as biggest the Europe which in not company, whole our then is was. by Australia, U.S. the

really, up well. really held business that so And

at more and higher freezes cost and that client So -- did and disproportionately starting level, And we've structure reduced had the is business some had loss a the there just it's hit we that the activity. was just have now and and then hardest, Americas the and we lowered clients hiring rebounding.

just all growth the in in goal grow we to But for a by growth be And growth met. our we're of So lower going reiterate, we seen Americas have off a see that far highest strongest growth year, to Europe will and we but we'll have in think the we base. And at and the then least it's XX% regions good Americas. think XXXX, that, to a growth Asia Pac. be good in to going is think

Josh Vogel

you need comfortable of a from how location opening November more the That's CoEs? about just What last we perspective. When that over helpful. business, And call and mentioned on one And see feel I just we before excellence to back was should one. just you time. about you in the thinking timing think centers looking of those and curious spoke one to about do reinvesting add and where

Jeffrey Eberwein

No, it's flexible, key because to part which key it's response business, in what really question to I'm it's in business important Yes. And our high people asked is a and which a a teams that that's in is sciences glad also developing of winning like being about key a really -- these RPO. a it's you and demand model. technology. rapid life And

happy So say in a excellence to in of I'm we, QX, center that Tampa. just opened

And the team our in is aggressively support hiring to office, is that office so Americas open. We're going business. and that

we're we other in before studying of areas mentioned center we we've of Pac. centers And And X Scotland, and excellence open that Asia have to a have in excellence.

in time the one the then could in in there Europe Pac matter some one a just in so be before a point. the second And we West. at point, probably could region, think And EMEA see and a second be there in Asia one some third U.S., a it's somewhere I of at

So had like be there'll think X. X future a of the point at beginning And where We we have year, now X. the we have excellence. I more centers the in of

Operator

Instructions] call concludes turn today's That will the session. question-and-answer I closing for to Eberwein Jeff [Operator now remarks. over

Jeffrey Eberwein

in joining to your again Hudson you for interest update all We us forward for look and next today Thank quarter's call. Global.

Operator

on Thank call. section will lovely again, the for presenters. has the you you available of day. hudsonrpo.com. sir. recorded Hudson thank you, Investors call safe, much, a Thank our so and fourth have And quarter be been Stay website, Global conference Today's and joining

Hudson Global (HSON) 11 Mar 212020 Q4 Earnings call transcript