Korn Ferry Announces Third Quarter Fiscal 2018 Results of Operations

Los Angeles, CA, March 6, 2018 – Korn Ferry (NYSE: KFY), a global organizational consulting firm, today announced fee revenue of $447.6 million for its third quarter of fiscal 2018. In addition, third quarter diluted earnings per share was $0.48 and adjusted diluted earnings per share was $0.70. Adjusted diluted earnings per share for the third quarter excluded $12.7 million, or $0.22 per share, comprised of the impact of the United States Tax Cut and Jobs Act (“Tax Act”) and integration/acquisition costs net of related taxes.

“I am pleased to report 17% year over year growth for our recently completed third quarter, with fee revenue of $448 million and solid profitability, including diluted earnings per share and adjusted diluted earnings per share of $0.48 and $0.70 and adjusted EBITDA of approximately $70 million,” said Gary D. Burnison, CEO of Korn Ferry. “Today Korn Ferry is truly a global organizational consulting firm. We help companies design their organization – the structure, the roles and responsibilities, as well as how they compensate, develop and motivate their people. As importantly, we help organizations select and hire the talent they need to execute their strategy. I’m pleased with the trajectory of our firm and our continued momentum as we enable people and organizations to exceed their potential.”

Highlights

  • Korn Ferry reports record fee revenue of $447.6 million in Q3 FY’18 driven by organic growth in all three lines of business as compared to Q3 FY’17: Futurestep 29.4%, Executive Search 18.1% and Hay Group 12.7%.
  • Operating income was $48.6 million in Q3 FY’18 with an operating margin of 10.9%. Adjusted EBITDA was $70.3 million with Adjusted EBITDA margin of 15.7%.
  • Q3 FY’18 diluted earnings per share was $0.48 compared to diluted earnings per share of $0.42 in Q3 FY’17. Adjusted diluted earnings per share was $0.70 in Q3 FY’18, compared to adjusted diluted earnings per share in Q3 FY’17 of $0.53.
  • The Company continued to return capital to stockholders during the quarter, paying $5.7 million in dividends and repurchasing $3.3 million worth of its outstanding shares. 
  • The Company declared a quarterly dividend of $0.10 per share on March 5, 2018 payable on April 13, 2018 to stockholders of record on March 26, 2018.

About Korn Ferry

Korn Ferry is a global organizational consulting firm. We help companies design their organization – the structure, the roles and responsibilities, as well as how they compensate, develop and motivate their people. As importantly, we help organizations select and hire the talent they need to execute their strategy. Our approximately 7,000 colleagues serve clients in more than 50 countries.