Korn/Ferry International (NYSE:KFY) Q2 2019 Earnings Conference Call Transcript

Dec 06, 2018 • 11:00 am ET


Korn/Ferry International (NYSE:KFY) Q2 2019 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Korn/Ferry Second Quarter Fiscal Year 2019 Conference Call. At this time all participants are in a listen-only mode. Following the prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com a copy of the financial presentation that we will be reviewing with you today.

(Forward-Looking Cautionary Statements)

Also, some of the comments today may reference non-GAAP financial measures such as adjusted fee revenue, 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 earnings release relating to this call, both of which are posted in the Investor Relations section of the company's website at www.kornferry.com.

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

Gary Burnison

Okay. Thanks, John. Wishing season greetings to everybody. Thank you for joining us. It's certainly a special time of the year, but particularly for Korn Ferry. We achieved the best top line and bottom line results in our history. To say that I'm proud of our performance is an understatement. Growth, constant currency, was up about 15% pretty balanced. All geographies, industries were up. Advisory, which was great to see, was up 12%. Products were up 11%. Profits were extraordinary. Adjusted EBITDA was $80 million. And the margin -- adjusted EBITDA margin was 16%.

For any CEO leading a company today, it's not just about strategy, but it's about how you synchronize that strategy with your organization and your talent. And that's exactly the company that we're creating, a company that is clearly the preeminent global organizational consulting firm, a company that has real impact in the world. And if you take a look at the data and the foundation that we've built to truly have impact in the world, it's impressive when you consider that 1.2 million people a year take part in our leadership development programs. We have engagement, reward and management data on 25 million professionals, 25,000 companies, 120 million data points on global professionals, organizational benchmarking data on 2,500 organizations. I mean, clearly, Korn Ferry has this unique ability to be able to synchronize strategy and talent for clients, and it's all built on IP. So I'm very, very proud of what we have achieved, but equally, I'm very optimistic about the future for us.

New business has been very good. Gregg and Bob are with me, they'll talk about that. October, I think, was our best month of new business in the company's history. We're going to continue to execute on our strategy of driving an integrated go-to-market strategy. We're going to continue to take IP in data and infuse it into the foundation of the house that we're building. You know what we're doing around the brand. We're going to continue