Earnings Press Release Q1-FY'21

Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced first quarter fee revenue of $344.1 million.  First quarter diluted loss per share was $0.58 and adjusted diluted loss per share was $0.19.  Adjusted diluted loss per share for the first quarter excludes an aggregate of $20.6 million, net of tax or $0.39 per share, of restructuring charges, net, due to the coronavirus pandemic (“COVID-19”), and integration/acquisition costs, relating to the acquisition of Miller Heiman Group, AchieveForum and Strategy Execution (“acquired companies”).

“It’s been nearly six months since the pandemic was declared, and the world temporarily paused.  Certainly, that pause impacted our business – during the fiscal first quarter we generated $344 million in fee revenue, down 29% year-over-year (28% at constant currency),” said Gary D. Burnison, CEO, Korn Ferry.  “But the key word is temporarily – our firm is continuing to see some more green shoots, with July new business better than June, June better than May and May better than April.

“I am incredibly proud and motivated by how we’ve positioned ourselves and the opportunity ahead.  From the beginning our firm has faced this crisis from a position of strength when you consider our balance sheet, the depth and breadth of our solutions and the actions we’ve taken to protect the company and preserve its muscle.  Almost every company on the planet is and will have to reimagine their business — their structure, roles, responsibilities and how they compensate, engage, and develop their workforce.  They will need to hire learning-agile, diverse talent and do so in a more inclusive ethos and in an increasingly digital world.  This is in essence Korn Ferry’s businesses – to enable people and organizations to exceed their potential.”

Highlights

• Korn Ferry reports fee revenue of $344.1 million in Q1 FY’21, a decrease of 29% (decrease of 27.8% on a constant currency basis) from Q1 FY’20.
• Net loss attributable to Korn Ferry was $30.8 million in Q1 FY’21.
• Operating loss was $43.8 million in Q1 FY’21 with an operating margin of (12.7%).  Adjusted EBITDA was $10.6 million with an Adjusted EBITDA margin of 3.1%.
• Q1 FY’21 diluted loss per share and adjusted diluted loss per share was $0.58 and $0.19, respectively.

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