Korn Ferry (NYSE:KFY) Q1 2020 Earnings Conference Call - Final Transcript

Sep 05, 2019 • 04:30 pm ET


Korn Ferry (NYSE:KFY) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the Korn Ferry First Quarter Fiscal Year 2020 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.

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 in the periodic reports filed by the company with the SEC, including the company's annual report for fiscal year 2019.

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 direct comparable GAAP financial measure is contained in the financial presentation and earnings release related 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, Mr. Burnison.

Gary Burnison

Okay. Thanks, Greg, and good afternoon, everybody, and thanks for joining us. We had a very good quarter. We came in with growth at about 7% constant currency, which is 4% actual. Fee revenue was $485 million. And that growth was clearly driven by our RPO and Professional Search offering which grew at 27% constant currency. And that's the 21st consecutive quarter of double-digit growth for RPO and Professional Search business. We saw revenue growth in all geographies, again constant currency. Asia and South America were up 11%, EMEA was up 7%, and North America was up 5%. Earnings remained very strong. EBITDA was about $75 million. And we continued to allocate capital to share repurchases. We bought back almost 1 million shares to date using about $40 million. Our financial results for the quarter, I think they really demonstrate the durability of our business model. And whether that's driving our clients' organizational efficiency or delivering on an M&A integration, our firm Korn Ferry not only helps organizations, but as importantly teams, leaders and individuals exceed their potential, and that's what this company is all about enabling people and organizations to indeed exceed their potential.

In a couple of months here in November