Korn/Ferry International KFY
Q3 2013 Earnings Call Transcript

Transcript Call Date 03/06/2013

Operator: Ladies and gentlemen, thank you for standing by, and welcome to Korn/Ferry International Third Quarter Fiscal Year 2013 Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes.

Before, I turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans, and goals constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties which are beyond the Company's control. Additional information concerning such risks and uncertainties can be found in the release relating to this presentation in the Company's Annual Report for fiscal 2012 and in other periodic reports filed by the Company with the SEC.

Also some of the comments today may reference non-GAAP financial measures, such as constant currency amounts. Additional information concerning these measures including reconciliations to the most directly comparable GAAP financial measure is contained in the release relating to this call, which is posted on the Company's website at

With that, I'll turn the call now to Mr. Burnison. Please go ahead Mr. Burnison.

Gary Burnison - CEO: Well, thank you, everybody, and good afternoon. I'm pleased with our results for the quarter, and more importantly, our strategic progress as a firm. Revenue for the quarter was $202 million, that's up 9% over last year, 2% on an organic basis. Our adjusted operating margin was 8%, and we achieved $0.31 of adjusted EPS. The balance sheet continues to be very strong with $305 million of cash and marketable securities and no debt.

The pull of our strategy that we put in place several years ago was evident again this quarter with the overall growth year-over-year within our broader talent management offerings. Futurestep was up 17% year-over-year and our leadership business was up about 5% organically. Obviously it was up a lot more if you include the recent acquisition. And our flagship search business was up 2% sequentially and still continues to maintain its industry-leading position.

We talk a lot at Korn/Ferry about common purpose and our common purpose is to accelerate the destination of our clients and change the lives of people, of clients, candidates, and colleagues, and today when you look around the world, CEOs are faced with a wide variety of issues, most importantly a fight for relevancy and growth. And ultimately regardless of the path that they choose, their organizations workforce, their people, that's what matters most. So questions like, how can a workforce become better aligned with the strategy? What skills are required to execute on their vision? What talent is needed? How will they overcome fatigue, accelerate engagement and establish a common purpose in an overly connected world? And that's exactly what this firm is poised to do.

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