HSON...Adj Q4 EPS = $1.02...Hudson Global Reports 2021 Fourth Quarter and Full-Year Results
OLD GREENWICH, Conn., March 11, 2022 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq: HSON), a leading global talent solutions company, announced today financial results for the fourth quarter and full year ended December 31, 2021.
2021 Fourth Quarter Summary
Revenue of $50.1 million increased 83.2% from the fourth quarter of 2020, or 82.9% in constant currency.
Adjusted net revenue of $22.3 million increased 97.8% from the fourth quarter of 2020, or 97.1% in constant currency.
Net income of $2.1 million, or $0.70 per basic and $0.67 per diluted share, versus net income of $1.2 million, or $0.41 per basic and diluted share, in the fourth quarter of 2020. Adjusted net income per diluted share (Non-GAAP measure)* increased to $1.02 from adjusted net income per diluted share of $0.20 in the fourth quarter of 2020.
Adjusted EBITDA (Non-GAAP measure)* increased to $4.6 million, versus adjusted EBITDA of $0.7 million in the fourth quarter of 2020.
2021 Full-Year Summary
Revenue of $169.2 million increased 66.8% from 2020, or 55.5% in constant currency.
Adjusted net revenue of $68.2 million increased 74.4% from 2020, or 65.4% in constant currency.
Net income of $3.2 million, or $1.11 per basic and $1.07 per diluted share, compared to net loss of $1.2 million, or $0.43 per basic and diluted share, in 2020. Adjusted net income per diluted share (Non-GAAP measure)* of $2.04 increased from adjusted net loss per diluted share of $0.38 in the prior year.
Adjusted EBITDA (Non-GAAP measure)* was $10.0 million, versus adjusted EBITDA loss of $0.4 million in 2020.
“2021 was a tremendous year for our business globally,” said Jeff Eberwein, Chief Executive Officer at Hudson Global. “Our entire team generated very strong growth in revenue, adjusted net revenue, and adjusted EBITDA for the fourth quarter and full year. Our sales activity levels and pipeline remain exceptionally robust and I continue to be encouraged by the increasing level of collaboration across our teams globally. Our technology team and 2020 acquisition, Coit Group, significantly outperformed our expectations in 2021 and has flourished inside of Hudson RPO. I am also pleased with the progress we have been making with the integration of Karani, our recent 2021 acquisition, and continue to be very excited about its growth potential 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, 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
Asia Pacific
Asia Pacific revenue of $32.2 million increased 61% and adjusted net revenue of $8.0 million increased 46% in constant currency in the fourth quarter of 2021 compared to the same period in 2020. EBITDA was $1.9 million in the fourth quarter of 2021 compared to EBITDA of $1.0 million a year ago. Asia Pacific delivered adjusted EBITDA of $2.4 million in the fourth quarter of 2021 versus adjusted EBITDA of $1.5 million in the fourth quarter of 2020.
For full year 2021, Asia Pacific revenue of $118.6 million increased 45% and adjusted net revenue of $28.6 million increased 34% in constant currency compared to 2020. EBITDA for full year 2021 was $5.5 million, compared to EBITDA of $2.9 million in 2020. Adjusted EBITDA for full year 2021 was $7.2 million versus $3.9 million in 2020.
Americas
In the fourth quarter of 2021, Americas revenue of $11.4 million increased 222% and adjusted net revenue of $10.9 million increased 242% in constant currency compared to the fourth quarter of 2020. EBITDA was $1.6 million in the fourth quarter of 2021 compared to EBITDA of $0.7 million in same period last year. Adjusted EBITDA was $2.7 million for the fourth quarter of 2021 compared to adjusted EBITDA loss of $0.1 million a year ago.
For full year 2021, Americas revenue of $28.8 million increased 163% and adjusted net revenue of $27.1 million increased 180% in constant currency from 2020. EBITDA was $1.8 million for full year 2021 compared to EBITDA loss of $1.0 million in 2020. Adjusted EBITDA was $4.7 million for full year 2021 compared to adjusted EBITDA loss of $1.4 million in 2020.
Europe
Europe revenue of $6.4 million increased 66% and adjusted net revenue of $3.5 million increased 30% in constant currency in the fourth quarter of 2021 compared to the fourth quarter of 2020. EBITDA was $0.4 million in the fourth quarter of 2021, compared to EBITDA of $0.2 million in the same period one year ago. Adjusted EBITDA was $0.5 million in the fourth quarter of 2021 compared to $0.2 million a year ago.
For full year 2021, Europe revenue of $21.8 million increased 37% and adjusted net revenue of $12.5 million increased 22% in constant currency compared to 2020. EBITDA was $1.0 million for full year 2021 compared to $0.5 million in 2020. Adjusted EBITDA was $1.6 million for full year 2021 compared to adjusted EBITDA of $0.4 million in 2020.
Corporate Costs
The Company's corporate costs of $0.9 million and $3.4 million for the fourth quarter and year ended 2021 excluded $0.3 million and $0.6 million of non-recurring expenses, respectively. This compares to corporate costs of $0.8 million and $3.3 million for the fourth quarter and year ended 2020, which excluded $0.3 million and $0.8 million of non-recurring expenses, respectively.
Liquidity and Capital Resources
The Company ended the fourth quarter of 2021 with $22.1 million in cash, including $0.4 million in restricted cash. The Company generated $1.7 million in cash flow from operations in the fourth quarter of 2021 compared to an outflow $0.1 million in the fourth quarter of 2020. For the full year, the company generated $2.5 million in cash flow from operations compared to using $1.4 million a year ago.
Share Repurchase Program
The Company has reduced its share count by 15% since December 31, 2018 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.
NOL Carryforward
Hudson Global has $312 million of usable net operating losses (“NOL”) in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a rights agreement and charter amendment in place that limit beneficial ownership of Hudson Global common stock to 4.99%. Stockholders who wish to own more than 4.99% of Hudson Global common stock, or who already own more than 4.99% of Hudson Global common stock and wish to buy more, may only acquire additional shares with the Board’s prior written approval.
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.
