Korn/Ferry International saw record Q4 revenueStaff writer ▼ | June 16, 2016
Korn/Ferry International announced record fourth quarter and annual fee revenue of $399.9 million and $1.3 billion, or $405.0 million and $1.3 billion on an adjusted basis, respectively.
Korn Ferry International Fee revenue was $399.9 million
The adjusted diluted earnings per share for the fourth quarter and the full year excluded $32.9 million and $103.9 million, respectively, of restructuring charges, net, integration/acquisition and separation costs, a deferred revenue adjustment related to the Hay Group acquisition (which also impacted adjusted fee revenue) and a non-cash loss relating to the Venezuelan currency devaluation.
In the fourth quarter of FY’16, we continued to make significant progress on the Hay Group integration.
The majority of our fourth quarter efforts were focused on activities associated with integration of our go-to-market activities, our intellectual property and content, our solution sets and service offerings, and our back office systems and business processes. We incurred a minimal amount of restructuring costs, including real estate co-location.
The fourth quarter results benefitted from the third quarter restructuring and integration actions with the new Hay Group segment EBITDA margin coming in at 5.6%, or 15.9% on an adjusted basis.
As previously disclosed, the integration of Hay Group will be substantially complete in Q1 FY’17, which will include additional consolidation of office space and the elimination of other redundant operational and general and administrative expenses.
We estimate the cost of these actions to be in the range of $20 million to $26 million, resulting in incremental annualized savings of approximately $17 million to $23 million. ■