Korn Ferry (NYSE:KFY) Q3 2015 Earnings Conference Call - Final Transcript
Mar 09, 2015 • 04:30 pm ET
think, a really special development company called Pivot Leadership. And what they do is they provide really a high-touch, customized, immersion-type development programs for CEOs around the world. World-class people, world-class intellectual property and really, add to our capabilities to transform companies by working with leadership teams to really accelerate their strategy through people.
I think as that acquisition and certainly what we've been doing over the last few years as it shows, is that we're committed to creating the preeminent authority on leadership and talent. And so, going forward, we're going to continue to deploy capital, to invest in IP, as well as top talent and solutions, and we're really going to focus over the next coming quarters on really five areas.
Number one, continuing to relentlessly drive a proactive, go-to-market strategy. We deal with 5,000 clients a year. We have an enormous opportunity to broaden the conversation, deepen the relationships. Two, we have got to create a more global, solutions-oriented organization. Three, we're going to continue to innovate and principally through leveraging and commercializing our IP, we've got this Korn/Ferry Institute. We're going to continue to make investments in that Institute around talent analytics and learning and enterprise agility. Number four, we have to develop our people to broaden the conversation and to make this a career, lifetime destination for our colleagues. And then, finally, we are going to have a balanced approach to M&A and capital.
So, that's kind of an overview. I think, again, very, very, very solid quarter, given that it covers the Christmas time and holiday time. And, with that, let me turn it over to Bob. Bob?
Great. Thanks, Gary, and good afternoon, everyone. Despite the seasonal impact of fewer working days and the effect of the foreign currency that Gary talked about, our reported fee revenue -- we continued to post strong financial results in the third quarter. We remain focused on the execution of our strategy which includes the disciplined deployment of capital according to the parameters that we talked about on our last call.
As Gary mentioned on March 1st, we closed on the Pivot Leadership acquisition, which is really an investment that will strengthen our leading market position in L&TC. Pivot's customer base, their intellectual property and strong business development team are an excellent complement to our leadership and talent consulting business.
In the third quarter, at actual exchange rates, we achieved consolidated fee revenue of $249.5 million, that's up 3% year-over-year and down 2.4% sequentially. However, at constant currency, our fee revenue in the third quarter actually grew $16.4 million or almost 7% year-over-year and was flat compared to the second quarter. All three of our major service lines grew year-over-year in the third quarter when measured at constant currency.
Overall, just to give you a sense of our new business trends, they remained positive in the third quarter. In Executive Search, new orders were flat when compared to the third quarter of FY '14, and down about