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Hudson Global, Inc. (HSON)

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Neutralpattern detected
Previous Close14.73
Open14.50
Bid0.00 x 800
Ask0.00 x 900
Day's Range13.01 - 14.56
52 Week Range6.06 - 16.56
Volume24,126
Avg. Volume6,079
Market Cap37.858M
Beta (5Y Monthly)0.48
PE Ratio (TTM)N/A
EPS (TTM)-0.32
Earnings DateNov 05, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateJun 10, 2016
1y Target Est20.00
  • Hudson Global (HSON) Reports Q3 Loss, Tops Revenue Estimates
    Zacks

    Hudson Global (HSON) Reports Q3 Loss, Tops Revenue Estimates

    Hudson Global (HSON) delivered earnings and revenue surprises of -192.31% and 3.73%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?

  • Hudson Global Reports 2020 Third Quarter Results
    GlobeNewswire

    Hudson Global Reports 2020 Third Quarter Results

    OLD GREENWICH, Conn., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq: HSON), a leading global total talent solutions company, announced today financial results for the third quarter ended September 30, 2020.2020 Third Quarter Summary * Revenue of $25.4 million decreased 1.4% from the third quarter of 2019 and 4.7% in constant currency. * Adjusted net revenue of $9.1 million decreased 20.4% from the third quarter of 2019 and 22.6% in constant currency. * Net loss was $1.2 million, or $0.41 per basic and diluted share, compared to net income of $0.4 million, or $0.12 per basic and diluted share, for the third quarter of 2019. Adjusted net loss per diluted share (Non-GAAP measure)* was $0.38 compared to adjusted net income per diluted share of $0.13 in the third quarter of 2019. * Adjusted EBITDA (Non-GAAP measure)* loss was $0.7 million compared to adjusted EBITDA of $0.8 million in the third quarter of 2019. * Total cash including restricted cash was $29.7 million at September 30, 2020. “Our business in the third quarter of 2020 continued to be impacted by the challenging macroeconomic environment caused by COVID-19,” said Jeff Eberwein, Chief Executive Officer of Hudson Global. “We are positioned to respond quickly as activity begins to rebound. We are excited about the recent acquisition of Coit Group and what our new, combined team can accomplish together in the technology space. We believe this accretive combination will generate considerable value for our clients, team, and stockholders.”* The Company provides Non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). 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 HighlightsAll growth rate comparisons are in constant currency.Asia PacificAsia Pacific revenue of $19.9 million increased 10% and adjusted net revenue of $5.0 million decreased 13% in the third quarter of 2020 compared to the same period in 2019. EBITDA was $0.5 million in the third quarter of 2020 compared to EBITDA of $0.8 million in the same period one year ago, and adjusted EBITDA was $0.9 million compared to adjusted EBITDA of $1.1 million in the third quarter of 2019.AmericasIn the third quarter of 2020, Americas revenue of $1.9 million decreased 45% and adjusted net revenue of $1.7 million decreased 48% from the third quarter of 2019. EBITDA loss was $0.8 million in the third quarter of 2020 compared to breakeven EBITDA in same period last year. The region recorded an adjusted EBITDA loss of $0.8 million compared to adjusted EBITDA of $0.2 million a year ago.EuropeEurope revenue in the third quarter of 2020 declined 29% to $3.6 million and adjusted net revenue of $2.4 million decreased 13% from the third quarter of 2019. EBITDA was breakeven in the third quarter of 2020 compared to EBITDA of $0.2 million in the same period of 2019. Adjusted EBITDA was breakeven for the third quarter of 2020 compared to adjusted EBITDA of $0.3 million a year ago.Corporate CostsIn the third quarter of 2020, the Company's corporate costs were $0.9 million compared to $0.8 million in the prior year quarter. Corporate costs in the third quarter of 2020 period excluded non-recurring expenses of $0.1 million compared to $0.0 million in the third quarter of 2019.Liquidity and Capital ResourcesThe Company ended the third quarter of 2020 with $29.7 million in cash, including $0.4 million in restricted cash. The Company used $0.5 million in cash flow from operations during the third quarter of 2020, compared to generating $0.2 million of cash flow from operations in the third quarter of 2019. Year-to-date, the company has used $1.4 million in cash flow from operations compared to using $7.6 million in the first nine months of 2019.Share Repurchase ProgramThrough 2019 and 2020 year-to-date, the Company reduced its share count by 16% 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 UpdateAs disclosed in previously issued Company press releases as well as in our 2019 Form 10-K and first and second quarter 2020 Form 10-Qs, our business has been adversely impacted by the COVID-19 outbreak and the accompanying economic downturn. This downturn, as well as the uncertainty regarding the duration, spread and intensity of the outbreak, led to an initial reduction in demand for our services in the first three quarters of 2020. Some of our customers have instituted hiring freezes, while other customers that are more capable of working remotely have been allowed to operate somewhat as usual. The expected timeline for this reduction in demand for our services remains uncertain and difficult to predict considering the rapidly evolving landscape but we are beginning to see signs of positive momentum at certain clients.The Company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves. The Company is confident that 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/WebcastHudson 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.If you wish to join the conference call, please use the dial-in information below: * Toll-Fee Dial-In Number: (866) 220-5784 * International Dial-In Number: (615) 622-8063 * Conference ID : 9879465 The archived call will be available on the investor information section of the Company's web site at hudsonrpo.com.About Hudson GlobalHudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients’ strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.For more information, please visit us at hudsonrpo.com or contact us at ir@hudsonrpo.com.Investor Relations: The Equity Group Lena Cati 212 836-9611 / lcati@equityny.comForward-Looking StatementsThis press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the adverse impacts of the recent coronavirus, or COVID-19 outbreak; the Company’s ability to successfully achieve its strategic initiatives; risks related to the Company’s large cash balance relative to its market capitalization as a small public company; risks related to potential acquisitions or dispositions of businesses by the Company; the Company’s ability to retain and recruit qualified management and/or advisors; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the Company at any time; competition in the Company's markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company's investment strategy; risks related to international operations, including foreign currency fluctuations, political events, natural disasters or health crises, including the ongoing COVID-19 outbreak; the Company's dependence on key management personnel; the Company's ability to attract and retain highly skilled professionals; the Company's ability to collect accounts receivable; the Company’s ability to maintain costs at an acceptable level; the Company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company's exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Company’s business reorganization initiatives, and limits on related insurance coverage; the Company’s ability to utilize net operating loss carry-forwards; volatility of the Company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.Financial Tables FollowHUDSON GLOBAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited)             Three Months Ended September 30, Nine Months Ended September 30,   2020 2019 2020 2019 Revenue $25,413  $25,762  $74,117  $68,363            Operating expenses:         Direct contracting costs and reimbursed expenses  16,343  14,366  46,319  35,912  Salaries and related 8,098  8,857  24,650  27,758  Other selling, general and administrative 2,049  2,022  5,584  6,911  Depreciation and amortization 25  23  73  62  Total operating expenses 26,515  25,268  76,626  70,643  Operating (loss) income (1,102) 494  (2,509) (2,280) Non-operating income (expense):         Interest income, net 14  88  133  526  Other income (expense), net 96  (87) 474  (215) (Loss) income from continuing operation before provision for income taxes (992) 495  (1,902) (1,969) Provision for income taxes from continuing operations 165  149  538  356  (Loss) income from continuing operations (1,157) 346  (2,440) (2,325) (Loss) income from discontinued operations, net of income taxes —  18  —  (113) Net (loss) income $(1,157) $364  $(2,440) $(2,438) Basic and diluted loss per share:         (Loss) earnings per share from continuing operations $(0.41) $0.11  $(0.84) $(0.74) (Loss) earnings per share from discontinued operations —  0.01  —  (0.04) (Loss) earnings per share $(0.41) $0.12  $(0.84) $(0.77) Weighted-average shares outstanding:         Basic 2,858  3,082  2,920  3,150  Diluted 2,858  3,118  2,920  3,150  HUDSON GLOBAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited)         September 30, 2020 December 31, 2019 ASSETS     Current assets:     Cash and cash equivalents $29,345  $31,190  Accounts receivable, less allowance for doubtful accounts of $20 and $174, respectively 11,916  12,795  Restricted cash, current 154  148  Prepaid and other 1,213  804  Total current assets 42,628  44,937  Property and equipment, net 132  186  Operating lease right-of-use assets 269  401  Deferred tax assets 725  793  Restricted cash 234  380  Other assets 7  7  Total assets $43,995  $46,704  LIABILITIES AND STOCKHOLDERS’ EQUITY     Current liabilities:     Accounts payable $392  $1,064  Accrued expenses and other current liabilities 8,920  8,178  Short-term debt 810  —  Operating lease obligations, current 230  246  Total current liabilities 10,352  9,488  Income tax payable 859  845  Operating lease obligations 43  160  Long-term debt 516  —  Other liabilities 167  177  Total liabilities 11,937  10,670  Commitments and contingencies     Stockholders’ equity:     Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding —  —  Common stock, $0.001 par value, 20,000 shares authorized; 3,672 and 3,663 shares issued; 2,685 and 2,936 shares outstanding, respectively 4  4  Additional paid-in capital 486,659  486,088  Accumulated deficit (438,947) (436,507) Accumulated other comprehensive loss, net of applicable tax (333) (479) Treasury stock, 987 and 726 shares, respectively, at cost (15,325) (13,072) Total stockholders’ equity 32,058  36,034  Total liabilities and stockholders' equity $43,995  $46,704  HUDSON GLOBAL, INC. SEGMENT ANALYSIS - QUARTER TO DATE (continued) RECONCILIATION OF ADJUSTED EBITDA (in thousands) (unaudited)             For The Three Months Ended September 30, 2020 Asia Pacific Americas Europe Corporate Total Revenue, from external customers $19,877  $1,934  $3,602  $—  $25,413  Adjusted net revenue, from external customers (1) $5,002  $1,678  $2,390  $—  $9,070  Net loss         $(1,157) Provision from income taxes         165  Interest income, net         (14) Depreciation and amortization         25  EBITDA (loss) (2) $517  $(789) $(40) $(669) (981) Non-operating expense (income), including corporate administration charges 415  26  88  (625) (96) Stock-based compensation expense 11  —  1  322  334  Non-recurring severance and professional fees —  1  —  81  82  Adjusted EBITDA (loss) (2) $943  $(762) $49  $(891) $(661)             For The Three Months Ended September 30, 2019 Asia Pacific Americas Europe Corporate Total Revenue, from external customers $17,436  $3,510  $4,816  $—  $25,762  Adjusted net revenue, from external customers (1) $5,574  $3,205  $2,617  $—  $11,396  Net income         $364  Income from discontinued operations, net of income taxes         18  Income from continuing operations         346  Provision for income taxes         149  Interest income, net         (88) Depreciation and amortization         23  EBITDA (loss) (2) $821  $3  $178  $(572) 430  Non-operating expense (income), including corporate administration charges 267  161  144  (485) 87  Stock-based compensation expense 22  (3) (9) 192  202  Non-recurring severance and professional fees —  —  —  37  37  Adjusted EBITDA (loss) (2) $1,110  $161  $313  $(828) $756  (1) Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. (2) Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and Non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, business reorganization expenses, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. HUDSON GLOBAL, INC. SEGMENT ANALYSIS - YEAR TO DATE (continued) RECONCILIATION OF ADJUSTED EBITDA (in thousands) (unaudited)             For The Nine Months Ended September 30, 2020 Asia Pacific Americas Europe Corporate Total Revenue, from external customers $55,661  $7,328  $11,128  $—  $74,117  Adjusted net revenue, from external customers (1) $14,331  $6,431  $7,036  $—  $27,798  Net loss         $(2,440) Provision from income taxes         538  Interest income, net         (133) Depreciation and amortization         73  EBITDA (loss) (2) $1,879  $(1,767) $323  $(2,397) (1,962) Non-operating expense (income), including corporate administration charges 519  186  (120) (1,059) (474) Stock-based compensation expense 49  (4) 5  521  571  Non-recurring severance and professional fees —  319  —  440  759  Adjusted EBITDA (loss) (2) $2,447  $(1,266) $208  $(2,495) $(1,106)             For The Nine Months Ended September 30, 2019 Asia Pacific Americas Europe Corporate Total Revenue, from external customers $43,569  $10,632  $14,162  $—  $68,363  Adjusted net revenue, from external customers (1) $15,584  $9,558  $7,309  $—  $32,451  Net loss         $(2,438) Loss from discontinued operations, net of income taxes         (113) Loss from continuing operations         (2,325) Provision for income taxes         356  Interest income, net         (526) Depreciation and amortization         62  EBITDA (loss) (2) $1,135  $17  $(139) $(3,446) (2,433) Non-operating expense (income), including corporate administration charges 810  449  407  (1,451) 215  Stock-based compensation expense 80  20  5  706  811  Non-recurring severance and professional fees —  —  —  975  975  Adjusted EBITDA (loss) (2) $2,025  $486  $273  $(3,216) $(432) (1) Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. (2) Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and Non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, business reorganization expenses, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. HUDSON GLOBAL, INC. RECONCILIATION OF CONSTANT CURRENCY MEASURES (in thousands) (unaudited)The Company operates on a global basis, with the majority of its revenue generated outside of the United States. Accordingly, fluctuations in foreign currency exchange rates can affect its results of operations. Constant currency information compares financial results between periods as if exchange rates had remained constant period-over-period. The Company defines the term “constant currency” to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. Changes in revenue, adjusted net revenue, selling, general and administrative expenses ("SG&A"), other non-operating income (expense), operating income (loss) and EBITDA (loss) include the effect of changes in foreign currency exchange rates. The Company’s management reviews and analyzes business results in constant currency and believes these results better represent the Company’s underlying business trends. The Company believes that these calculations are a useful measure, indicating the actual change in operations. There are no significant gains or losses on foreign currency transactions between subsidiaries. Therefore, changes in foreign currency exchange rates generally impact only reported earnings. Three Months Ended September 30,  2020 2019  As As Currency Constant  reported reported translation currency Revenue:        Asia Pacific$19,877  $17,436  $677  $18,113  Americas1,934  3,510  (2) 3,508  Europe3,602  4,816  238  5,054  Total$25,413  $25,762  $913  $26,675  Adjusted net revenue (1)        Asia Pacific$5,002  $5,574  $196  $5,770  Americas1,678  3,205  (6) 3,199  Europe2,390  2,617  131  2,748  Total$9,070  $11,396  $321  $11,717  SG&A:(2)        Asia Pacific$4,070  $4,477  $161  $4,638  Americas2,537  3,052  (3) 3,049  Europe2,245  2,295  115  2,410  Corporate1,295  1,055  (2) 1,053  Total$10,147  $10,879  $271  $11,150  Operating income (loss):        Asia Pacific$919  $1,075  $33  $1,108  Americas(767) 160  —  160  Europe42  316  17  333  Corporate(1,296) (1,057) 2  (1,055) Total$(1,102) $494  $52  $546  EBITDA (loss):        Asia Pacific$517  $821  $21  $842  Americas(789) 3  —  3  Europe(40) 178  9  187  Corporate(669) (572) (1) (573) Total$(981) $430  $29  $459  (1) Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. (2) SG&A is a measure that management uses to evaluate the segments’ expenses and includes salaries and related costs and other selling, general and administrative costs. HUDSON GLOBAL, INC. RECONCILIATION OF ADJUSTED NET LOSS PER DILUTED SHARE (in thousands, except per share amounts) (unaudited)  Adjusted Diluted Shares Per Diluted For The Three Months Ended September 30, 2020 Net Loss Outstanding Share Net loss $(1,157) 2,858  $(0.41) Add: Non-recurring items (after-tax) 82  2,858  0.03  Adjusted net loss (1) $(1,075) 2,858  $(0.38)   Adjusted Diluted Shares Per Diluted For The Three Months Ended September 30, 2019 Net Income Outstanding Share Net income $364  3,118  $0.12  Add: Non-recurring items (after-tax) 37  3,118  0.01  Adjusted net income (1) $401  3,118  $0.13  (1) Adjusted net income or loss and adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as non-recurring severance and professional fees after tax that are presented to provide additional information about the company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss and adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the company's profitability or liquidity. Further, Adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.

  • Analysts Estimate Hudson Global (HSON) to Report a Decline in Earnings: What to Look Out for
    Zacks

    Analysts Estimate Hudson Global (HSON) to Report a Decline in Earnings: What to Look Out for

    Hudson Global (HSON) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.