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Jun 30, 2020

Heidrick & Struggles Q2 2020 Earnings Report

Announced second quarter results, maintained cash dividend, and implemented cost savings initiatives.

Key Takeaways

Heidrick & Struggles announced second quarter results with net revenue of $145.6 million. The company reported an operating loss of $24.0 million, which included a non-cash impairment charge of $33.0 million. Adjusted EBITDA was $12.4 million with a margin of 8.5%. The company is implementing restructuring plan in 2020 third quarter to optimize future growth and profitability and expects annual cost savings of $30 million to $40 million.

Net revenue of $145.6 million

Operating loss of $24.0 million and operating margin of (16.5%) reflect a non-cash impairment charge of $33.0 million

Adjusted operating income of $9.0 million and adjusted operating margin of 6.2%

Adjusted EBITDA of $12.4 million and adjusted EBITDA margin of 8.5%

Total Revenue
$146M
Previous year: $173M
-15.9%
EPS
$0.37
Previous year: $0.73
-49.3%
Executive Search
$1.4M
Previous year: $1.7M
-17.6%
Avg. Revenue per Search
$142K
Previous year: $124K
+13.9%
Adjusted EBITDA
$12.4M
Gross Profit
$43.2M
Previous year: $57.6M
-25.0%
Cash and Equivalents
$219M
Previous year: $105M
+107.7%
Free Cash Flow
$38M
Previous year: $32.5M
+17.0%
Total Assets
$788M
Previous year: $704M
+12.0%

Heidrick & Struggles

Heidrick & Struggles

Heidrick & Struggles Revenue by Segment

Heidrick & Struggles Revenue by Geographic Location

Forward Guidance

Given the continued uncertainty due to the COVID-19 pandemic, the Company is not providing financial guidance for the 2020 third quarter.