LOS ANGELES, June 29 /PRNewswire-FirstCall/ -- Korn/Ferry International (NYSE: KFY), a premier global provider of talent management solutions, announced it has made an adjustment to its fourth quarter fiscal 2009 results of operations subsequent to the issuance of its press release on June 9, 2009. The adjustment was made to correct compensation and benefit expenses that had been recorded twice by the Company during the periods covering fiscal 2002 through fiscal 2009 for expenses relating to employee contributions to a health and welfare benefit plan. The cumulative impact of this adjustment was a $3.7 million decrease in compensation and benefits expense for the quarter and year ended April 30, 2009, a $4.0 million increase in cash and cash equivalents and a $0.3 million increase in accrued compensation and benefits liability as of April 30, 2009. This adjustment increased operating profit by $3.7 million and decreased net loss by $2.3 million, or $0.05 per basic and diluted share for the quarter and year ended April 30, 2009. Based on the Company's analysis of the adjustment it was not considered material to any individual prior period or the current period. A revised balance sheet and income statement reflecting the adjustment are attached.
Korn/Ferry International (NYSE: KFY), with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to attract, develop, retain and sustain their talent. Visit www.kornferry.com for more information on the Korn/Ferry International family of companies, and www.kornferryinstitute.com for thought leadership, intellectual property and research.
KORN/FERRY INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
April 30, April 30,
---------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited) (unaudited)
Fee revenue $106,980 $208,204 $638,223 $790,570
Reimbursed out-of-pocket
engagement expenses 7,446 12,246 37,905 45,072
----- ------ ------ ------
Total revenue 114,426 220,450 676,128 835,642
------- ------- ------- -------
Compensation and benefits 76,783 148,072 442,632 540,056
General and
administrative expenses 29,566 33,374 126,882 134,542
Out-of-pocket
engagement expenses 10,317 16,086 49,388 58,750
Depreciation and amortization 2,946 2,740 11,583 10,441
Restructuring charges 25,070 - 41,915 -
------ --- ------ ---
Total operating
expenses 144,682 200,272 672,400 743,789
------- ------- ------- -------
Operating (loss) income (30,256) 20,178 3,728 91,853
Interest and other income
(loss), net 1,064 1,063 (15,801) 7,137
----- ----- ------- -----
(Loss) income before
(benefit) provision
for income taxes
and equity in
earnings of
unconsolidated
subsidiaries (29,192) 21,241 (12,073) 98,990
(Benefit) provision for
income taxes (11,943) 6,328 384 36,081
Equity in earnings of
unconsolidated
subsidiaries, net 49 833 2,365 3,302
--- --- ----- -----
Net (loss) income $(17,200) $15,746 $(10,092) $66,211
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Basic (loss) earnings per
common share $(0.40) $0.36 $(0.23) $1.50
====== ===== ====== =====
Basic weighted average common
shares outstanding 43,475 43,230 43,522 44,012
====== ====== ====== ======
Diluted (loss) earnings per
common share $(0.40) $0.36 $(0.23) $1.46
====== ===== ====== =====
Diluted weighted
average common shares
outstanding 43,475 44,333 43,522 45,528
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KORN/FERRY INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
As of April 30,
2009 2008
---- ----
ASSETS
------
Cash and cash equivalents $255,000 $305,296
Marketable securities 4,263 5,940
Receivables due from clients, net of
allowance for doubtful accounts
of $11,197 and $11,504, respectively 67,308 119,952
Income taxes and other receivables 9,001 7,071
Deferred income taxes 14,583 10,401
Prepaid expenses and other assets 21,442 20,057
------ ------
Total current assets 371,597 468,717
------- -------
Marketable securities, non-current 70,992 78,026
Property and equipment, net 27,970 32,462
Cash surrender value of company owned life
insurance policies, net of loans 63,108 81,377
Deferred income taxes 45,141 47,128
Goodwill 133,331 142,699
Intangible assets, net 16,928 15,519
Other assets 11,812 14,286
------ ------
Total assets $740,879 $880,214
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LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Accounts payable $10,282 $15,309
Income taxes payable 2,059 20,948
Compensation and benefits payable 116,705 199,081
Other accrued liabilities 44,301 37,120
------ ------
Total current liabilities 173,347 272,458
------- -------
Deferred compensation and other retirement plans 99,238 105,719
Other liabilities 9,195 5,903
----- -----
Total liabilities 281,780 384,080
Shareholders' equity
Common stock: $0.01 par value, 150,000
shares authorized, 56,185 and
54,786 shares issued and 44,729 and 44,593
shares outstanding, respectively 368,430 358,568
Retained earnings 84,922 95,014
Accumulated other comprehensive income 6,285 43,097
----- ------
Shareholders' equity 459,637 496,679
Less: notes receivable from shareholders (538) (545)
---- ----
Total shareholders' equity 459,099 496,134
------- -------
Total liabilities and shareholders' equity $740,879 $880,214
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