Korn Ferry (NYSE:KFY) Q3 2015 Earnings Conference Call - Preliminary Transcript

Mar 09, 2015 • 04:30 pm ET


Korn Ferry (NYSE:KFY) Q3 2015 Earnings Conference Call - Preliminary Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Korn/Ferry Third Quarter Fiscal Year 2015 Conference Call. At this time all participants are in a listen-only mode. Following the prepared remarks, we will continue a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes.

We have also made available on the investor relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today. 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 and the company's annual report for fiscal 2014 and the 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, EBITDA and adjusted EBITDA.

Additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measure, is contained in the financial presentation and release relating to this call. Both of which are posted on the company's website at www.kornferry.com.

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

Gary Burnison

Okay. Thanks, Nick and good afternoon, everybody. Thanks for joining us.

We had another solid quarter as an organization. Revenue was up about 7% at constant currency. We did have like most global companies, we had a negative impact from FX and it was about $9 million negative for the quarter. So, we came in at $250 million. If it wouldn't have been without that FX, it would have been $259 million in constant currency, but a really good quarter.

Up 7% constant currency and profitability was also strong. EPS was about -- it was up about the same thing, about 7%. We saw steady growth across, really, all lines of business. Last call, we talked about, I was worried about energy. We really did not see any kind of decrease in our energy business through the third quarter. Futurestep just continues to lead the way.

They knocked the cover off the ball. 21% up, constant currency. Search was up 3.5% with all regions being up. Leadership business had a good quarter. That was up 6% constant currency with a really strong EBITDA margin. The LTC EBITDA margin was a little over 18%. We closed an acquisition last week of, I think,