Heidrick & Struggles International (HSII), a provider of executive search, culture shaping, and leadership consulting services, has announced a 95.51 percent jump in profit for the quarter ended Jun. 30, 2014.
The company earned $3.79 million or $0.21 a share in the second-quarter compared with $1.94 million or $0.11 a share a year ago. Analysts on average had predicted net income of $0.19 a share.
Revenue during the second-quarter climbed 10.70 percent to $140.96 million from $127.33 million in the last year period.
Gross margin expanded by 70 basis points over the last year period to 96.54 percent. Operating income for the quarter increased to $12.51 million from $5.74 million in the previous year period. That has resulted in improvement of 437 basis points in operating margins to 8.88 percent.
''Our second quarter results reflect year-over-year and sequential improvements in almost all of our operating segments and key metrics,'' said Tracy R. Wolstencroft, Heidrick & Struggles' president and chief executive officer.
The company is forecasting 2014 third quarter consolidated net revenue of between $123 million and $133 million.
Cash Flow
Heidrick & Struggles International has spent $45.04 million cash to meet operating activities during the first half, as against cash outgo of $48.50 million in the last year period.
The company has spent $2.20 million cash to meet investing activities during the first half, as against cash outgo of $1.50 million in the last year period. It has made net capital expenditure of $1.87 million during the first half, which was higher by 81.44 percent or $0.84 million, from a year ago.
The company has spent $11.64 million from financing activities during the first half, as against cash inflow of $37.12 million in the last year period. It has borrowed net of $3 million through debt during the first half.
The company's cash dividend payment increased 92.50 percent or $2.33 million to $4.85 million.
As on Jun. 30, 2014, the company's cash balance stood at $123.35 million, up 23.73 percent or $23.66 million from Jun. 30, 2013.
Working Capital
Heidrick & Struggles International has witnessed an increase in the working capital over the last one year. The company's working capital stood at $111.27 million as at Jun. 30, 2014, up $6.91 million or 6.62 percent from $104.36 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.70 as at Jun. 30, 2014 from 1.81 on Jun. 30, 2013.
Debt Position
Heidrick & Struggles International has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $32.50 million, down 15.58 percent or $6 million, from Jun. 30, 2013. The company's total debt was 6.18 percent of total assets as on Jun. 30, 2014, compared with 7.85 percent on Jun. 30, 2013.
Shares of the company declined $0.50 or 2.78 percent to trade at $18.47 on Tuesday (9.37AM).
