Heidrick & Struggles Reports First Quarter 2016 Financial Results

Heidrick & Struggles International, Inc. has announced financial results for its first quarter ended March 31, 2016. Heidrick & Struggles has seen their Q1 revenue increase 13.1% year-on-year, buoyed by a strong performance in Europe and the Americas.

Highlights include:

• Consolidated net revenue (revenue before reimbursements) increased 13.1 percent, or $15.0 million, to $130.2 million from $115.2 million in the 2015 first quarter. Net revenue increased 15.9 percent on a constant currency basis.
• The number of Executive Search consultants was 313 at March 31, 2016, compared to 307 at December 31, 2015 and 302 at March 31, 2015.
• Operating income declined $2.8 million to $3.9 million and Adjusted EBITDA declined $1.5 million to $10.8 million.
• The company incurred a one-time charge to operating income and net income of $2.1 million (or $0.11 per share) in the quarter to reposition its Leadership Consulting business, mostly in Europe.
• The company invested $2.2 million in new and existing leadership and client service talent for its Culture Shaping business.
• Salaries and employee benefits expense in the 2016 first quarter increased 16.1 percent, or $12.6 million, to $91.1 million from $78.5 million in the 2015 first quarter.

Heidrick & Struggles singled out its global technology & services, healthcare & life sciences, and financial services practices as key drivers of Q1 revenue growth.

Following the acquisitions of Co Company in the 2015 fourth quarter and Decision Strategies International (DSI) in the 2016 first quarter, the company took the opportunity to reposition its Leadership Consulting business for future growth. The integration of these acquisitions with the company's legacy business and the realignment of resources around its strategic service offering resulted in approximately $2.1 million of non-recurring salary and employee benefits and general and administrative expenses in the 2016 first quarter, primarily in Europe.

To read the full financial report, click here.