FOURTH QUARTER AND FULL YEAR 2013 RESULTS March 13, 2014.

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Presentation transcript:

FOURTH QUARTER AND FULL YEAR 2013 RESULTS March 13, 2014

The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements. As a general matter, forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be identified by the use of forward looking terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words, but the absence of these words does not necessarily mean that a statement is not forward-looking. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for the disclosure of forward-looking statements. The forward-looking statements contained in this press release are based upon our historical performance, current plans, estimates, expectations and other factors we believe are appropriate under the circumstances. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved since these forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these statements. Some of the key uncertainties and factors that could affect our future performance and cause actual results to differ materially from those expressed or implied by forward-looking statements are: our expectations regarding our revenues, expenses and operations and our ability to sustain profitability; our ability to recruit and retain qualified executive search consultants to staff our operations appropriately; our ability to expand our customer base and relationships, especially given the off-limit arrangements we are required to enter into with certain of our clients; further declines in the global economy and our ability to execute successfully through business cycles; our anticipated cash needs; projected cost savings as a result of reorganization; our anticipated growth strategies and sources of new revenues; unanticipated trends and challenges in our business and the markets in which we operate; social or political instability in markets where we operate; the impact of foreign currency exchange rate fluctuations; price competition; the ability to forecast, on a quarterly basis, variable compensation accruals that ultimately are determined based on the achievement of annual results; and the mix of profit and loss by country in which we operate. The above list should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our annual report on Form 10-K filed on March 12, The forward looking statements included in this press release are made only as of the date hereof. We do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. You should, however, review the factors and risks we describe in the reports we will file from time to time with the Securities and Exchange Commission. SAFE HARBOR STATEMENT

 Record net revenue of $34.3 million and EPS of $0.12, exceeds prior guidance further demonstrating positive impact of business initiatives  Ongoing expense management leads to operating margin expansion to 4.4% compared to negative 0.7% in Q4’12  Strong performance in North America, Asia Pacific and EMEA  Growth in Professional Services, Industrial, Financial Services and Life Sciences  Search assignments increased 14% over the year-ago quarter 2013 FOURTH QUARTER HIGHLIGHTS Slide 3 Above non-GAAP financial measures exclude items noted on slides 10 & 11 – EPS, net of tax.

SEARCH CONFIRMATIONS BY QUARTER Slide 4

STAFFING - NUMBER OF CONSULTANTS Slide 5 Total Turnover Voluntary Turnover

PRODUCTIVITY – NET REVENUE PER CONSULTANT Slide 5 *Adjusted to include a full quarter of revenue for Augmentum **Excludes Q4 consultant hires; Including Q4 hires net revenue per consultant was $1.1 million in millions

PLACEMENT RATE BY QUARTER Slide 7

NET REVENUE BY REGION Slide 8

NET REVENUE BY PRACTICE Slide 9

NET REVENUE BY QUARTER Slide 10 in millions

QUARTERLY COMPENSATION & BENEFITS EXPENSE Slide 11 *Above non-GAAP measures exclude post-combination compensation and reorganization costs Q1’12Q2’12Q3’12Q4’12Q1’13Q2’13Q3’13Q4’13 Comp. & Benefits* $24.9$25.4$24.7$23.3$22.2$25.9$24.5$25.4 (in millions) 77.1%

QUARTERLY GENERAL & ADMINISTRATIVE COSTS Slide 12 * Above non-GAAP measures exclude foreign exchange gain/loss on funding of foreign subsidiaries and costs incurred for reorganization, acquisitions and restatement Q1’12Q2’12Q3’12Q4’12Q1’13Q2’13Q3’13Q4’13 Gen. & Admin.* $6.7$7.2$6.7$7.1$7.4$7.2$6.9$7.3 (in millions)

QUARTERLY OPERATING INCOME & EPS Slide 13 * Above non-GAAP measures exclude items noted on slides 10 & 11 – EPS, net of tax. EPS*$(0.03) $(0.05) $0.08 $0.12 in millions 3.2% (in millions)

BALANCE SHEET HIGHLIGHTS Slide 14 Q4 2013Q Net cash provided by operating activities$2.9$(0.5) Capital Expenditures$1.7$0.3 Cash on hand at Dec 31$5.7$15.9 (in millions)

 Continued positive impact of transformational hires  Revenue growth and operating efficiencies expected to improve margin and profitability  Improving economy and expanded footprint in key growth regions will drive search confirmations  UK  Mexico  Australia POISED FOR REVENUE & EARNINGS GROWTH Slide 15

 Acquired Johnson Executive Search, leading independent executive search firm based in Australia  Has worked with 25 percent of the ASX100 companies  Addition of six senior search consultants increases number of Company-wide search consultants to 134  Deepens domain expertise in key verticals:  Financial and Professional Services  Technology  Consumer and Industrial  Accretive to 2014 earnings RECENT DEVELOPMENT Slide 16