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HSON...WOW...Non-GAAP EPS = $0.78...Going to be a good day...Hudson Global Reports 2021 Third Quarter Results
November 05 2021 - 08:30AM
GlobeNewswire Inc.

Hudson Global, Inc. (Nasdaq: HSON) ("Hudson Global" or "the Company"), a leading global total talent solutions company, announced today financial results for the third quarter ended September 30, 2021.
2021 Third Quarter Summary

Revenue of $45.0 million increased 77.1% from the third quarter of 2020 and 71.8% in constant currency.
Adjusted net revenue of $18.0 million increased 98.8% from the third quarter of 2020 and 92.7% in constant currency.
Net income increased to $1.5 million, or $0.49 per diluted share, compared to net loss of $1.2 million, or $0.41 per diluted share, for the third quarter of 2020. Adjusted net income per diluted share (non-GAAP measure)* was $0.78 compared to adjusted net loss per diluted share of $0.38 in the third quarter of 2020.
Adjusted EBITDA (non-GAAP measure)* was $3.0 million compared to adjusted EBITDA loss of $0.7 million in the third quarter of 2020.
Total cash including restricted cash was $26.5 million at September 30, 2021.
"Our business exhibited very strong growth in revenue, adjusted net revenue, and adjusted EBITDA across all three regions in the third quarter of 2021 versus the prior year quarter," said Jeff Eberwein, Chief Executive Officer of Hudson Global. "I continue to be particularly encouraged by the success and collaboration of our sales teams globally as our new business pipeline remains robust and growing. Coit Group, our 2020 acquisition, has significantly outperformed our expectations this year and we are very excited to see what Karani, our new 2021 acquisition, will be able to do as part of Hudson RPO."

* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Constant currency, adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.

Regional Highlights

All growth rate comparisons are in constant currency.

Asia Pacific

Asia Pacific revenue of $32.3 million increased 58% and adjusted net revenue of $7.9 million increased 54% in the third quarter of 2021 compared to the same period in 2020. EBITDA was $1.8 million in the third quarter of 2021 compared to EBITDA of $0.5 million in the same period one year ago, and adjusted EBITDA was $2.2 million compared to adjusted EBITDA of $0.9 million in the third quarter of 2020.

Americas

In the third quarter of 2021, Americas revenue of $7.4 million increased 280% and adjusted net revenue of $7.0 million increased 315% from the third quarter of 2020. Strong organic growth in the Americas as well as the acquisition of Coit Group in Q4 2020 contributed to the region's top line growth. EBITDA increased to $0.6 million in the third quarter of 2021 compared to EBITDA loss of $0.8 million in same period last year. The region recorded adjusted EBITDA of $1.4 million in the third quarter of 2021 compared to adjusted EBITDA loss of $0.8 million in the same period last year.

Europe

Europe revenue in the third quarter of 2021 increased 39% to $5.3 million and adjusted net revenue of $3.1 million increased 22% from the third quarter of 2020. EBITDA increased to $0.1 million in the third quarter of 2021 compared to EBITDA loss of $0.0 million in the same period one year ago. Adjusted EBITDA increased to $0.2 million in the third quarter of 2021 compared to adjusted EBITDA of $0.0 million in the third quarter of 2020.

Corporate Costs

In the third quarter of 2021, the Company's corporate costs were $0.9 million, flat versus the prior year quarter. Corporate costs for the third quarters of 2021 and 2020 excluded non-recurring expenses of $0.2 million and $0.1 million, respectively.

Liquidity and Capital Resources

The Company ended the third quarter of 2021 with $26.5 million in cash, including $0.3 million in restricted cash. The Company generated $2.3 million in cash flow from operations during the third quarter of 2021, compared to an outflow of $0.5 million of cash flow from operations in the third quarter of 2020.

Share Repurchase Program

Since the beginning of 2019, the Company has reduced its share count by 15% and continues to view share repurchases as an attractive use of capital. Under its $10 million common stock share repurchase program, the Company has $1.7 million remaining.

COVID-19 Update

The Company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves. The Company believes it can continue to take appropriate actions to manage the business in this challenging environment due to the flexibility of its workforce and the strength of its balance sheet.

Conference Call/Webcast

The Company will conduct a conference call today at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at hudsonrpo.com.