x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 59-3547281 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Large accelerated filer | o | Accelerated filer | x | |
Non-accelerated filer | o | Smaller reporting company | o |
Class | Outstanding on March 31, 2013 | |
Common Stock - $0.001 par value | 32,625,097 |
Page | ||
Item 1. | ||
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) - Three Months Ended March 31, 2013 and 2012 | ||
Condensed Consolidated Balance Sheets – March 31, 2013 and December 31, 2012 | ||
Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2013 and 2012 | ||
Condensed Consolidated Statement of Changes in Stockholders’ Equity – Three Months Ended March 31, 2013 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Revenue | $ | 165,678 | $ | 200,590 | |||
Direct costs | 109,001 | 127,382 | |||||
Gross margin | 56,677 | 73,208 | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 61,589 | 74,465 | |||||
Depreciation and amortization | 1,648 | 1,505 | |||||
Business reorganization expenses | 1,982 | 940 | |||||
Operating income (loss) | (8,542 | ) | (3,702 | ) | |||
Non-operating income (expense): | |||||||
Interest income (expense), net | (146 | ) | (161 | ) | |||
Other income (expense), net | 270 | (4 | ) | ||||
Income (loss) before provision for income taxes | (8,418 | ) | (3,867 | ) | |||
Provision for (benefit from) income taxes | (177 | ) | (646 | ) | |||
Net income (loss) | $ | (8,241 | ) | $ | (3,221 | ) | |
Earnings (loss) per share: | |||||||
Basic | $ | (0.25 | ) | $ | (0.10 | ) | |
Diluted | $ | (0.25 | ) | $ | (0.10 | ) | |
Weighted-average shares outstanding: | |||||||
Basic | 32,344 | 31,765 | |||||
Diluted | 32,344 | 31,765 | |||||
Comprehensive income (loss): | |||||||
Net income (loss) | $ | (8,241 | ) | $ | (3,221 | ) | |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustment, net of income taxes | (1,762 | ) | 1,790 | ||||
Amortization of prior service costs - defined benefit pension plan | 15 | — | |||||
Total other comprehensive income (loss), net of income taxes | (1,747 | ) | 1,790 | ||||
Comprehensive income (loss) | $ | (9,988 | ) | $ | (1,431 | ) |
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 32,510 | $ | 38,653 | |||
Accounts receivable, less allowance for doubtful accounts of $1,135 and $1,167, respectively | 103,023 | 107,216 | |||||
Prepaid and other | 11,807 | 11,543 | |||||
Total current assets | 147,340 | 157,412 | |||||
Property and equipment, net | 18,910 | 20,050 | |||||
Deferred tax assets, non-current | 10,218 | 9,816 | |||||
Other assets | 5,984 | 6,190 | |||||
Total assets | $ | 182,452 | $ | 193,468 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 7,878 | $ | 9,292 | |||
Accrued expenses and other current liabilities | 56,422 | 55,960 | |||||
Short-term borrowings | — | — | |||||
Accrued business reorganization expenses | 2,944 | 1,916 | |||||
Total current liabilities | 67,244 | 67,168 | |||||
Other non-current liabilities | 6,959 | 7,853 | |||||
Deferred rent and tenant improvement contributions | 7,533 | 8,061 | |||||
Income tax payable, non-current | 3,848 | 3,845 | |||||
Total liabilities | 85,584 | 86,927 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 100,000 shares authorized; issued 32,785 and 33,100 shares, respectively | 33 | 33 | |||||
Additional paid-in capital | 474,046 | 473,372 | |||||
Accumulated deficit | (395,268 | ) | (387,027 | ) | |||
Accumulated other comprehensive income | 18,789 | 20,536 | |||||
Treasury stock, 160 and 79 shares, respectively, at cost | (732 | ) | (373 | ) | |||
Total stockholders’ equity | 96,868 | 106,541 | |||||
Total liabilities and stockholders' equity | $ | 182,452 | $ | 193,468 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (8,241 | ) | $ | (3,221 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 1,648 | 1,505 | |||||
Provision for (recovery of) doubtful accounts | 15 | 3 | |||||
Provision for (benefit from) deferred income taxes | (476 | ) | (1,339 | ) | |||
Stock-based compensation | 674 | 921 | |||||
Other, net | 200 | 117 | |||||
Changes in assets and liabilities: | |||||||
Decrease (increase) in accounts receivable | 2,003 | 1,327 | |||||
Decrease (increase) in prepaid and other assets | (431 | ) | 1,441 | ||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 45 | (7,750 | ) | ||||
Increase (decrease) in accrued business reorganization expenses | 791 | (241 | ) | ||||
Net cash provided by (used in) operating activities | (3,772 | ) | (7,237 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (946 | ) | (1,809 | ) | |||
Net cash provided by (used in) investing activities | (946 | ) | (1,809 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under credit agreements | 2,747 | 36,561 | |||||
Repayments under credit agreements | (2,747 | ) | (39,975 | ) | |||
Repayment of capital lease obligations | (114 | ) | (118 | ) | |||
Purchase of restricted stock from employees | (359 | ) | (389 | ) | |||
Net cash provided by (used in) financing activities | (473 | ) | (3,921 | ) | |||
Effect of exchange rates on cash and cash equivalents | (952 | ) | 595 | ||||
Net increase (decrease) in cash and cash equivalents | (6,143 | ) | (12,372 | ) | |||
Cash and cash equivalents, beginning of the period | 38,653 | 37,302 | |||||
Cash and cash equivalents, end of the period | $ | 32,510 | $ | 24,930 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for interest | $ | 71 | $ | 93 | |||
Cash payments during the period for income taxes, net of refunds | $ | 374 | $ | 816 |
Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock | Total | |||||||||||||||||||||
Shares | Value | |||||||||||||||||||||||||
Balance at December 31, 2012 | 33,021 | $ | 33 | $ | 473,372 | $ | (387,027 | ) | $ | 20,536 | $ | (373 | ) | $ | 106,541 | |||||||||||
Net income (loss) | — | — | — | (8,241 | ) | — | — | (8,241 | ) | |||||||||||||||||
Other comprehensive income (loss), currency translation adjustments | — | — | — | — | (1,762 | ) | — | (1,762 | ) | |||||||||||||||||
Other comprehensive income (loss), pension liability adjustment | — | — | — | — | 15 | — | 15 | |||||||||||||||||||
Purchase of restricted stock from employees | (82 | ) | — | — | — | — | (359 | ) | (359 | ) | ||||||||||||||||
Stock-based compensation | (314 | ) | — | 674 | — | — | — | 674 | ||||||||||||||||||
Balance at March 31, 2013 | 32,625 | $ | 33 | $ | 474,046 | $ | (395,268 | ) | $ | 18,789 | $ | (732 | ) | $ | 96,868 |
For The Three Months Ended | |||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||
Gross Margin ($) | % | Gross Margin ($) | % | ||||||||||
Hudson Americas | $ | 8,144 | 14.4 | % | $ | 11,831 | 16.2 | % | |||||
Hudson Asia Pacific | 21,492 | 37.9 | % | 29,313 | 40.0 | % | |||||||
Hudson Europe | 27,041 | 47.7 | % | 32,064 | 43.8 | % | |||||||
Total | $ | 56,677 | 100.0 | % | $ | 73,208 | 100.0 | % |
For The Three Months Ended | |||||||||||||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||||||||||||
Temporary Contracting | Other | Total | Temporary Contracting | Other | Total | ||||||||||||||||||
Revenue | $ | 128,841 | $ | 36,837 | $ | 165,678 | $ | 150,437 | $ | 50,153 | $ | 200,590 | |||||||||||
Direct costs (1) | 106,366 | 2,635 | 109,001 | 124,071 | 3,311 | 127,382 | |||||||||||||||||
Gross margin | $ | 22,475 | $ | 34,202 | $ | 56,677 | $ | 26,366 | $ | 46,842 | $ | 73,208 |
(1) | Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Other category, which includes the search, permanent recruitment and other human resource solutions’ revenue. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included in selling, general and administrative expenses. |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Stock options | $ | 144 | $ | 245 | ||||
Restricted stock | 480 | 625 | ||||||
Restricted stock units | 50 | 51 | ||||||
Total | $ | 674 | $ | 921 |
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Number of Options | Weighted Average Exercise Price per Share | Number of Options | Weighted Average Exercise Price per Share | ||||||||||
Options outstanding at January 1, | 1,238,650 | $ | 11.21 | 1,396,350 | $ | 11.36 | |||||||
Granted | — | — | — | — | |||||||||
Expired | (12,700 | ) | 13.11 | (10,750 | ) | 15.68 | |||||||
Options outstanding at March 31, | 1,225,950 | 11.19 | 1,385,600 | 11.33 | |||||||||
Options exercisable at March 31, | 825,950 | $ | 14.11 | 973,100 | $ | 13.94 |
For The Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Number of Shares of Restricted Stock | Weighted Average Grant Date Fair Value | Number of Shares of Restricted Stock | Weighted Average Grant Date Fair Value | ||||||||||
Unvested restricted stock at January 1, | 1,028,916 | $ | 4.87 | 1,166,082 | $ | 5.12 | |||||||
Granted | — | — | 607,830 | 4.59 | |||||||||
Vested | (300,263 | ) | 5.35 | (366,299 | ) | 5.04 | |||||||
Forfeited | (329,460 | ) | 4.59 | (100,347 | ) | 5.61 | |||||||
Unvested restricted stock at March 31, | 399,193 | $ | 4.73 | 1,307,266 | $ | 4.86 |
For The Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Number of Shares of Restricted Stock Unit | Weighted Average Grant-Date Fair Value | Number of Shares of Restricted Stock Unit | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested restricted stock units at January 1, | 100,000 | $ | 5.18 | 100,000 | $ | 5.18 | |||||||
Granted | — | — | — | — | |||||||||
Vested | — | — | — | — | |||||||||
Unvested restricted stock units at March 31, | 100,000 | $ | 5.18 | 100,000 | $ | 5.18 |
For The Three Months Ended | |||||||
March 31, | |||||||
($ in thousands, except otherwise stated) | 2013 | 2012 | |||||
Expense recognized for the 401(k) plan | $ | 190 | $ | 193 | |||
Contributions to satisfy prior years' employer-matching liability | |||||||
Number of shares of the Company's common stock issued (in thousands) | — | 124 | |||||
Market value per share of the Company's common stock on contribution date (in dollars) | $ | — | $ | 5.35 | |||
Non-cash contribution made for employer matching liability | $ | — | $ | 666 | |||
Additional cash contribution made for employer-matching liability | $ | 651 | $ | — | |||
Total contribution made for employer-matching liability | $ | 651 | $ | 666 |
Year | ||
Earliest tax years which remain subject to examination by the relevant tax authorities: | ||
U.S. Federal | 2009 | |
Majority of other U.S. state and local jurisdictions | 2008 | |
U.K. | 2011 | |
Australia | 2008 | |
Majority of other foreign jurisdictions | 2007 | |
Earliest tax years which are currently under income tax examination: | ||
State of Illinois | 2010 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Earnings (loss) per share ("EPS"): | ||||||||
Basic | $ | (0.25 | ) | $ | (0.10 | ) | ||
Diluted | $ | (0.25 | ) | $ | (0.10 | ) | ||
EPS numerator - basic and diluted: | ||||||||
Net income (loss) | $ | (8,241 | ) | $ | (3,221 | ) | ||
EPS denominator (in thousands): | ||||||||
Weighted average common stock outstanding - basic | 32,344 | 31,765 | ||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | ||||||
Weighted average number of common stock outstanding - diluted | 32,344 | 31,765 |
(a) | For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. |
Three Months Ended | ||||||
March 31, | ||||||
2013 | 2012 | |||||
Unvested restricted stock | 399,193 | 1,307,266 | ||||
Unvested restricted stock units | 100,000 | 100,000 | ||||
Stock options | 1,225,950 | 1,385,600 | ||||
Total | 1,725,143 | 2,792,866 |
March 31, 2013 | December 31, 2012 | ||||||
Included under the caption "Other assets": | |||||||
Collateral accounts | $ | 619 | $ | 619 | |||
Rental deposits | 1,228 | 1,301 | |||||
Total amount under the caption "Other assets": | $ | 1,847 | $ | 1,920 | |||
Included under the caption "Prepaid and other": | |||||||
Other | $ | 129 | $ | 142 | |||
Client guarantees | 99 | $ | 102 | ||||
Collateral accounts | — | — | |||||
Total amount under the caption "Prepaid and other" | $ | 228 | $ | 244 | |||
Total restricted cash | $ | 2,075 | $ | 2,164 |
March 31, 2013 | December 31, 2012 | ||||||
Computer equipment | $ | 10,501 | $ | 10,889 | |||
Furniture and equipment | 7,761 | 7,840 | |||||
Capitalized software costs | 29,088 | 28,877 | |||||
Leasehold and building improvements | 24,428 | 24,650 | |||||
71,778 | 72,256 | ||||||
Less: accumulated depreciation and amortization | 52,868 | 52,206 | |||||
Property and equipment, net | $ | 18,910 | $ | 20,050 |
March 31, 2013 | December 31, 2012 | ||||||
Capital lease obligation, current | $ | 475 | $ | 467 | |||
Capital lease obligation, non-current | $ | 202 | $ | 324 |
Carrying Value | |||||||
2013 | 2012 | ||||||
Goodwill, January 1, | $ | 2,020 | $ | 1,992 | |||
Additions | — | — | |||||
Impairments | — | — | |||||
Currency translation | 6 | 6 | |||||
Goodwill, March 31, | $ | 2,026 | $ | 1,998 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
2006 Plan | $ | 36 | $ | — | ||||
2008 Plan | — | — | ||||||
2009 Plan | — | (48 | ) | |||||
2012 Plan | 1,946 | 988 | ||||||
Total | $ | 1,982 | $ | 940 |
For The Three Months Ended March 31, 2013 | December 31, 2012 | Changes in Estimate | Additional Charges | Payments | March 31, 2013 | ||||||||||||||
Lease termination payments | $ | 2,678 | $ | 7 | $ | — | $ | (510 | ) | $ | 2,175 | ||||||||
Employee termination benefits | 715 | — | 1,764 | (633 | ) | 1,846 | |||||||||||||
Other associated costs | 27 | — | 211 | (234 | ) | 4 | |||||||||||||
Total | $ | 3,420 | $ | 7 | $ | 1,975 | $ | (1,377 | ) | $ | 4,025 |
March 31, 2013 | December 31, 2012 | ||||||
Current portion of asset retirement obligations | $ | 40 | $ | 52 | |||
Non-current portion of asset retirement obligations | 2,628 | 2,769 | |||||
Total asset retirement obligations | $ | 2,668 | $ | 2,821 |
Level | Fixed Charge Coverage Ratio | Base Rate Revolving Loans | LIBOR Revolving Loans or Letter of Credit Obligations | |||
I | Greater than or equal to 1.25:1.0 | 1.25 | % | 2.25 | % | |
II | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | 1.50 | % | 2.50 | % | |
III | Less than 1.10:1.0 | 1.75 | % | 2.75 | % |
March 31, 2013 | |||
Borrowing base | $ | 26,458 | |
Less: adjustments to the borrowing base | |||
Minimum availability | (10,000 | ) | |
Outstanding letters of credits | (2,028 | ) | |
Adjusted borrowing base | 14,430 | ||
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 14,430 | |
Interest rates on outstanding borrowing | 4.50 | % |
(1) | a requirement to maintain a minimum excess availability of $10,000 until such time that, for two consecutive fiscal quarters, the Company’s Fixed Charge Coverage Ratio is at least 1.2x (such occurrence, a “Trigger Event”), at which time the Company’s required minimum excess availability is reduced to $5,000; |
(2) | upon the occurrence of a Trigger Event, maintain a minimum required Fixed Charge Coverage Ratio of 1.1x; |
(3) | maintain a minimum EBITDA (as defined in the Revolver Agreement) for the Company’s North American and U.K. operations of at least $1,000; |
(4) | a limit on the payment of dividends of not more than $5,000 per year and subject to certain conditions; |
(5) | restrictions on the ability of the Company to make additional borrowings, acquire, merge or otherwise fundamentally change the ownership of the Company or repurchase the Company’s stock; |
(6) | a limit on investments, and a limit on acquisitions of not more than $25,000 in cash and $25,000 in non-cash consideration per year, subject to certain conditions set forth in the Revolver Agreement; |
(7) | a limit on dispositions of assets of not more than $4,000 per year; and |
(8) | a limit on the aggregate cumulative amount of cash outflows from Loan Parties to affiliates of the Company that are not Loan Parties not to exceed the aggregate cumulative amount of cash inflows from (i) affiliates that are not Loan Parties to Loan Parties, (ii) equity offerings by the Company and (iii) the proceeds of divestiture or asset sales, in the case of each of the following periods, by more than $5,000 for any quarterly compliance testing period beginning after March 1, 2013 or in the aggregate through December 31, 2013 or for any twelve-month period ending as of the end of each fiscal quarter commencing with the twelve-month period ending December 31, 2013. |
March 31, 2013 | |||
Tranche A: | |||
Borrowing capacity | $ | 14,266 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 14,266 | |
Interest rates on outstanding borrowing | 4.83 | % | |
Tranche B: | |||
Borrowing capacity | $ | 2,928 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 2,928 | |
Interest rates on outstanding borrowing | 6.03 | % | |
Tranche C: | |||
Financial guarantee capacity | $ | 5,210 | |
Less: outstanding financial guarantee requested | (2,979 | ) | |
Additional availability for financial guarantee | $ | 2,231 | |
Interest rates on financial guarantee requested | 1.10 | % |
March 31, | December 31, | |||||||
2013 | 2012 | |||||||
Foreign currency translation adjustments | $ | 19,064 | $ | 20,826 | ||||
Unamortized pension plan obligations | (275 | ) | (290 | ) | ||||
Accumulated other comprehensive income (loss) | $ | 18,789 | $ | 20,536 |
Hudson Americas | Hudson Asia Pacific | Hudson Europe | Corporate | Inter- segment elimination | Total | ||||||||||||||||||
For The Three Months Ended March 31, 2013 | |||||||||||||||||||||||
Revenue, from external customers | $ | 37,223 | $ | 56,201 | $ | 72,254 | $ | — | $ | — | $ | 165,678 | |||||||||||
Inter-segment revenue | (2 | ) | (1 | ) | 25 | — | (22 | ) | — | ||||||||||||||
Total revenue | $ | 37,221 | $ | 56,200 | $ | 72,279 | $ | — | $ | (22 | ) | $ | 165,678 | ||||||||||
Gross margin, from external customers | $ | 8,144 | $ | 21,492 | $ | 27,041 | $ | — | $ | — | $ | 56,677 | |||||||||||
Inter-segment gross margin | (2 | ) | (25 | ) | 26 | — | 1 | — | |||||||||||||||
Total gross margin | $ | 8,142 | $ | 21,467 | $ | 27,067 | $ | — | $ | 1 | $ | 56,677 | |||||||||||
Business reorganization expenses (recovery) | $ | (17 | ) | $ | 102 | $ | 1,871 | $ | 26 | $ | — | $ | 1,982 | ||||||||||
EBITDA (loss) (a) | $ | (947 | ) | $ | (867 | ) | $ | (3,452 | ) | $ | (1,358 | ) | $ | — | $ | (6,624 | ) | ||||||
Depreciation and amortization | 252 | 830 | 405 | 161 | — | 1,648 | |||||||||||||||||
Intercompany interest income (expense), net | — | (665 | ) | (106 | ) | 771 | — | — | |||||||||||||||
Interest income (expense), net | (9 | ) | (42 | ) | 6 | (101 | ) | — | (146 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,208 | ) | $ | (2,404 | ) | $ | (3,957 | ) | $ | (849 | ) | $ | — | $ | (8,418 | ) | ||||||
As of March 31, 2013 | |||||||||||||||||||||||
Accounts receivable, net | $ | 23,442 | $ | 31,627 | $ | 47,954 | $ | — | $ | — | $ | 103,023 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 2,100 | $ | 12,380 | $ | 4,703 | $ | 1,810 | $ | — | $ | 20,993 | |||||||||||
Total assets | $ | 28,443 | $ | 69,140 | $ | 75,216 | $ | 9,653 | $ | — | $ | 182,452 |
Hudson Americas | Hudson Asia Pacific | Hudson Europe | Corporate | Inter- segment elimination | Total | ||||||||||||||||||
For The Three Months Ended March 31, 2012 | |||||||||||||||||||||||
Revenue, from external customers | $ | 45,170 | $ | 74,263 | $ | 81,157 | $ | — | $ | — | $ | 200,590 | |||||||||||
Inter-segment revenue | — | 13 | 18 | — | (31 | ) | — | ||||||||||||||||
Total revenue | $ | 45,170 | $ | 74,276 | $ | 81,175 | $ | — | $ | (31 | ) | $ | 200,590 | ||||||||||
Gross margin, from external customers | $ | 11,831 | $ | 29,313 | $ | 32,064 | $ | — | $ | — | $ | 73,208 | |||||||||||
Inter-segment gross margin | (3 | ) | (4 | ) | 7 | — | — | — | |||||||||||||||
Total gross margin | $ | 11,828 | $ | 29,309 | $ | 32,071 | $ | — | $ | — | $ | 73,208 | |||||||||||
Business reorganization expenses (recovery) | $ | 20 | $ | 67 | $ | 720 | $ | 133 | $ | — | $ | 940 | |||||||||||
EBITDA (loss) (a) | $ | (491 | ) | $ | 8 | $ | (1,087 | ) | $ | (631 | ) | $ | — | $ | (2,201 | ) | |||||||
Depreciation and amortization | 319 | 694 | 363 | 129 | — | 1,505 | |||||||||||||||||
Intercompany interest income (expense), net | — | (1,746 | ) | (108 | ) | 1,854 | — | — | |||||||||||||||
Interest income (expense), net | (19 | ) | (65 | ) | 19 | (96 | ) | — | (161 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | (829 | ) | $ | (2,497 | ) | $ | (1,539 | ) | $ | 998 | $ | — | $ | (3,867 | ) | |||||||
As of March 31, 2012 | |||||||||||||||||||||||
Accounts receivable, net | $ | 31,654 | $ | 45,098 | $ | 55,815 | $ | — | $ | — | $ | 132,567 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 2,478 | $ | 10,389 | $ | 4,902 | $ | 2,406 | $ | — | $ | 20,175 | |||||||||||
Total assets | $ | 36,997 | $ | 75,506 | $ | 84,660 | $ | 8,614 | $ | — | $ | 205,777 |
(a) | Securities and Exchange Commission ("SEC") Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. |
Information by geographic region | United Kingdom | Australia | United States | Continental Europe | Other Asia Pacific | Other Americas | Total | ||||||||||||||||||||
For The Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Revenue (a) | $ | 47,078 | $ | 42,042 | $ | 36,952 | $ | 25,175 | $ | 14,160 | $ | 271 | $ | 165,678 | |||||||||||||
For The Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Revenue (a) | $ | 52,007 | $ | 57,644 | $ | 44,636 | $ | 29,041 | $ | 16,728 | $ | 534 | $ | 200,590 | |||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 3,548 | $ | 8,595 | $ | 3,866 | $ | 1,147 | $ | 3,785 | $ | 52 | $ | 20,993 | |||||||||||||
Net assets | $ | 25,426 | $ | 29,687 | $ | 21,501 | $ | 6,069 | $ | 13,938 | $ | 247 | $ | 96,868 | |||||||||||||
As of March 31, 2012 | |||||||||||||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization (b) | $ | 3,183 | $ | 6,030 | $ | 4,833 | $ | 1,707 | $ | 4,364 | $ | 58 | $ | 20,175 | |||||||||||||
Net assets | $ | 30,112 | $ | 29,730 | $ | 21,558 | $ | 10,634 | $ | 14,554 | $ | 536 | $ | 107,124 |
• | Executive Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Contingencies |
• | Recent Accounting Pronouncements |
• | Leveraging the value of our global business as exemplified by the launch of the global practices in Legal eDiscovery and Recruitment Process Outsourcing (“RPO”). |
• | Attracting, developing and retaining the right people to increase productivity and profitability. |
• | Focusing on selected clients and services to provide higher value recruitment solutions to their businesses. |
• | Creating a compelling digital presence to help attract both highly-skilled candidates and new clients to grow our business. |
• | Redirecting resources to high-potential strategic businesses, such as RPO and Legal eDiscovery, and growth markets of the world. |
• | Optimizing its operations in under-performing sectors and markets to deliver improved performance, re-engineering of its delivery model, and consolidating operations globally. |
• | Streamlining its back office support areas and business processes, establishing a shared services operation and global centers of excellence, to gain efficiencies of operation. |
• | Revenue was $165.7 million for the three months ended March 31, 2013, compared to $200.6 million for the same period in 2012, a decrease of $34.9 million, or 17.4%. On a constant currency basis, the Company's revenue decreased $33.4 million, or 16.8% . Of this decrease, $20.3 million was in contracting revenue (down 13.6% compared to the same period in 2012) and $10.9 million was in permanent recruitment revenue (down 29.2% compared to the same period in 2012). |
• | Gross margin was $56.7 million for the three months ended March 31, 2013, compared to $73.2 million for the same period in 2012, a decrease of $16.5 million, or 22.6%. On a constant currency basis, gross margin decreased $16.1 million, or 22.2%. Of this decrease, $10.9 million was in permanent recruitment gross margin (down 29.6% compared to the same period in 2012) and $3.7 million was in contracting gross margin (down 14.1% compared to the same period in 2012). |
• | Selling, general and administrative expenses and other non-operating income (expense) (“SG&A and Non-Op”) were $61.3 million for the three months ended March 31, 2013, compared to $74.5 million for the same period in 2012, a decrease of $13.2 million, or 17.7%. On a constant currency basis, SG&A and Non-Op decreased $12.9 million, or 17.3%. SG&A and Non-Op, as a percentage of revenue, was 37.0% for the three months ended March 31, 2013, compared to 37.3% for the same period in 2012. |
• | Business reorganization expenses were $2.0 million for the three months ended March 31, 2013, compared to $0.9 million for the same period in 2012, an increase of $1.0 million on both a reported and constant currency basis. |
• | EBITDA loss was $6.6 million for the three months ended March 31, 2013, an increase of $4.4 million compared to a $2.2 million loss for the same period in 2012. On a constant currency basis, EBITDA decreased $4.3 million. |
• | Net loss was $8.2 million for the three months ended March 31, 2013, compared to $3.2 million for the same period in 2012. On a constant currency basis, net loss increased $5.0 million. |
Three Months Ended March 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
As | As | Currency | Constant | ||||||||||||
$ in thousands | reported | reported | translation | currency | |||||||||||
Revenue: | |||||||||||||||
Hudson Americas | $ | 37,223 | $ | 45,170 | $ | (5 | ) | $ | 45,165 | ||||||
Hudson Asia Pacific | 56,201 | 74,263 | (803 | ) | 73,460 | ||||||||||
Hudson Europe | 72,254 | 81,157 | (689 | ) | 80,468 | ||||||||||
Total | $ | 165,678 | $ | 200,590 | $ | (1,497 | ) | $ | 199,093 | ||||||
Gross margin: | |||||||||||||||
Hudson Americas | $ | 8,144 | $ | 11,831 | $ | (5 | ) | $ | 11,826 | ||||||
Hudson Asia Pacific | 21,492 | 29,313 | (236 | ) | 29,077 | ||||||||||
Hudson Europe | 27,041 | 32,064 | (147 | ) | 31,917 | ||||||||||
Total | $ | 56,677 | $ | 73,208 | $ | (388 | ) | $ | 72,820 | ||||||
SG&A and Non-Op (a): | |||||||||||||||
Hudson Americas | $ | 9,105 | $ | 12,299 | $ | 4 | $ | 12,303 | |||||||
Hudson Asia Pacific | 22,237 | 29,233 | (177 | ) | 29,056 | ||||||||||
Hudson Europe | 28,647 | 32,438 | (113 | ) | 32,325 | ||||||||||
Corporate | 1,330 | 499 | (1 | ) | 498 | ||||||||||
Total | $ | 61,319 | $ | 74,469 | $ | (287 | ) | $ | 74,182 | ||||||
Business reorganization expenses: | |||||||||||||||
Hudson Americas | $ | (17 | ) | $ | 20 | $ | — | $ | 20 | ||||||
Hudson Asia Pacific | 102 | 67 | (1 | ) | 66 | ||||||||||
Hudson Europe | 1,871 | 720 | (10 | ) | 710 | ||||||||||
Corporate | 26 | 133 | 1 | 134 | |||||||||||
Total | $ | 1,982 | $ | 940 | $ | (10 | ) | $ | 930 | ||||||
Operating income (loss): | |||||||||||||||
Hudson Americas | $ | (592 | ) | $ | (64 | ) | $ | (8 | ) | $ | (72 | ) | |||
Hudson Asia Pacific | (1,359 | ) | 1,045 | (51 | ) | 994 | |||||||||
Hudson Europe | (2,388 | ) | 333 | (73 | ) | 260 | |||||||||
Corporate | (4,203 | ) | (5,016 | ) | — | (5,016 | ) | ||||||||
Total | $ | (8,542 | ) | $ | (3,702 | ) | $ | (132 | ) | $ | (3,834 | ) | |||
Net income (loss), consolidated | $ | (8,241 | ) | $ | (3,221 | ) | $ | (43 | ) | $ | (3,264 | ) | |||
EBITDA (loss) (b): | |||||||||||||||
Hudson Americas | $ | (947 | ) | $ | (491 | ) | $ | (8 | ) | $ | (499 | ) | |||
Hudson Asia Pacific | (867 | ) | 8 | (58 | ) | (50 | ) | ||||||||
Hudson Europe | (3,452 | ) | (1,087 | ) | (24 | ) | (1,111 | ) | |||||||
Corporate | (1,358 | ) | (631 | ) | (1 | ) | (632 | ) | |||||||
Total | $ | (6,624 | ) | $ | (2,201 | ) | $ | (91 | ) | $ | (2,292 | ) |
(a) | SG&A and Non-Op is a measure that management uses to evaluate the segments’ expenses, which include the following captions on the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss): Selling, general and administrative expenses, and other income (expense), net. Corporate management service allocations are included in the segments’ other income (expense). |
(b) | See EBITDA reconciliation in the following section. |
Three Months Ended | ||||||||
March 31, | ||||||||
$ in thousands | 2013 | 2012 | ||||||
Net income (loss) | $ | (8,241 | ) | $ | (3,221 | ) | ||
Adjustments to net income (loss) | ||||||||
Provision for (benefit from) income taxes | (177 | ) | (646 | ) | ||||
Interest expense, net | 146 | 161 | ||||||
Depreciation and amortization expense | 1,648 | 1,505 | ||||||
Total adjustments from net income (loss) to EBITDA (loss) | 1,617 | 1,020 | ||||||
EBITDA (loss) | $ | (6,624 | ) | $ | (2,201 | ) |
Three Months Ended March 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
$ in thousands | As reported | As reported | Currency translation | Constant currency | ||||||||||||
TEMPORARY CONTRACTING DATA (a): | ||||||||||||||||
Temporary contracting revenue: | ||||||||||||||||
Hudson Americas | $ | 35,373 | $ | 41,603 | $ | — | $ | 41,603 | ||||||||
Hudson Asia Pacific | 40,644 | 51,841 | (654 | ) | 51,187 | |||||||||||
Hudson Europe | 52,824 | 56,993 | (634 | ) | 56,359 | |||||||||||
Total | $ | 128,841 | $ | 150,437 | $ | (1,288 | ) | $ | 149,149 | |||||||
Temporary contracting gross margin: | ||||||||||||||||
Hudson Americas | $ | 6,365 | $ | 8,359 | $ | — | $ | 8,359 | ||||||||
Hudson Asia Pacific | 6,745 | 8,079 | (102 | ) | 7,977 | |||||||||||
Hudson Europe | 9,365 | 9,928 | (90 | ) | 9,838 | |||||||||||
Total | $ | 22,475 | $ | 26,366 | $ | (192 | ) | $ | 26,174 | |||||||
Temporary contracting gross margin as a percent of temporary contracting revenue: | ||||||||||||||||
Hudson Americas | 17.99 | % | 20.09 | % | N/A | 20.09 | % | |||||||||
Hudson Asia Pacific | 16.60 | % | 15.58 | % | N/A | 15.58 | % | |||||||||
Hudson Europe | 17.73 | % | 17.42 | % | N/A | 17.46 | % | |||||||||
Total | 17.44 | % | 17.53 | % | N/A | 17.55 | % |
(a) | Temporary contracting gross margin and gross margin as a percent of revenue are shown to provide additional information regarding the Company’s ability to manage its cost structure and to provide further comparability relative to the Company’s peers. Temporary contracting gross margin is derived by deducting the direct costs of temporary contracting from temporary contracting revenue. The Company’s calculation of gross margin may differ from that of other companies. |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | As reported | ||||||||||||
Hudson Americas | ||||||||||||||
Revenue | $ | 37.2 | $ | 45.2 | $ | (7.9 | ) | (17.6 | )% |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | As reported | ||||||||||||
Hudson Americas | ||||||||||||||
Gross margin | $ | 8.1 | $ | 11.8 | $ | (3.7 | ) | (31.2 | )% | |||||
Gross margin as a percentage of revenue | 21.9 | % | 26.2 | % | N/A | N/A | ||||||||
Contracting gross margin as a percentage of contracting revenue | 18.0 | % | 20.1 | % | N/A | N/A |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | As reported | ||||||||||||
Hudson Americas | ||||||||||||||
SG&A and Non-Op | $ | 9.1 | $ | 12.3 | $ | (3.2 | ) | (26.0 | )% | |||||
SG&A and Non-Op as a percentage of revenue | 24.5 | % | 27.2 | % | N/A | N/A |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | As reported | ||||||||||||
Hudson Americas | ||||||||||||||
Operating (loss): | $ | (0.6 | ) | $ | (0.1 | ) | $ | (0.5 | ) | (a) | ||||
EBITDA (loss) | $ | (0.9 | ) | $ | (0.5 | ) | $ | (0.5 | ) | 92.9 | % | |||
EBITDA (loss) as a percentage of revenue | (2.5 | )% | (1.1 | )% | N/A | N/A |
(a) | Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the periods in comparison. |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | Constant currency | ||||||||||||
Hudson Asia Pacific | ||||||||||||||
Revenue | $ | 56.2 | $ | 73.5 | $ | (17.3 | ) | (23.5 | )% |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
As reported | Constant currency | |||||||||||||
Hudson Asia Pacific | ||||||||||||||
Gross margin | $ | 21.5 | $ | 29.1 | $ | (7.6 | ) | (26.1 | )% | |||||
Gross margin as a percentage of revenue | 38.2 | % | 39.6 | % | N/A | N/A | ||||||||
Contracting gross margin as a percentage of contracting revenue | 16.6 | % | 15.6 | % | N/A | N/A |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | Constant currency | ||||||||||||
Hudson Asia Pacific | ||||||||||||||
SG&A and Non-Op | $ | 22.2 | $ | 29.1 | $ | (6.8 | ) | (23.5 | )% | |||||
SG&A and Non-Op as a percentage of revenue | 39.6 | % | 39.6 | % | N/A | N/A |
Three Months Ended March 31, | |||||||||||||
2013 | 2012 | Change in amount | Change in % | ||||||||||
$ in millions | As reported | Constant currency | |||||||||||
Hudson Asia Pacific | |||||||||||||
Operating income (loss): | $ | (1.4 | ) | $ | 1.0 | $ | (2.4 | ) | (a) | ||||
EBITDA (loss) | $ | (0.9 | ) | $ | (0.1 | ) | $ | (0.8 | ) | (a) | |||
EBITDA (loss) as a percentage of revenue | (1.5 | )% | (0.1 | )% | N/A | N/A |
(a) | Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the periods in comparison. |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | Constant currency | ||||||||||||
Hudson Europe | ||||||||||||||
Revenue | $ | 72.3 | $ | 80.5 | $ | (8.2 | ) | (10.2 | )% |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | Constant currency | ||||||||||||
Hudson Europe | ||||||||||||||
Gross margin | $ | 27.0 | $ | 31.9 | $ | (4.9 | ) | (15.3 | )% | |||||
Gross margin as a percentage of revenue | 37.4 | % | 39.7 | % | N/A | N/A | ||||||||
Contracting gross margin as a percentage of contracting revenue | 17.7 | % | 17.5 | % | N/A | N/A |
Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Change in amount | Change in % | |||||||||||
$ in millions | As reported | Constant currency | ||||||||||||
Hudson Europe | ||||||||||||||
SG&A and Non-Op | $ | 28.6 | $ | 32.3 | $ | (3.7 | ) | (11.4 | )% | |||||
SG&A and Non-Op as a percentage of revenue | 39.6 | % | 40.2 | % | N/A | N/A |
Three Months Ended March 31, | |||||||||||||
2013 | 2012 | Change in amount | Change in % | ||||||||||
$ in millions | As reported | Constant currency | |||||||||||
Hudson Europe | |||||||||||||
Operating income (loss): | $ | (2.4 | ) | $ | 0.3 | $ | (2.6 | ) | (a) | ||||
EBITDA (loss) | $ | (3.5 | ) | $ | (1.1 | ) | $ | (2.3 | ) | (a) | |||
EBITDA (loss) as a percentage of revenue | (4.8 | )% | (1.4 | )% | N/A | N/A |
(a) | Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the periods in comparison. |
For the Three Months Ended March 31, | |||||||
(In millions) | 2013 | 2012 | |||||
Net cash provided by (used in) operating activities | $ | (3.8 | ) | $ | (7.2 | ) | |
Net cash provided by (used in) investing activities | (0.9 | ) | (1.8 | ) | |||
Net cash provided by (used in) financing activities | (0.5 | ) | (3.9 | ) | |||
Effect of exchange rates on cash and cash equivalents | (1.0 | ) | 0.6 | ||||
Net increase (decrease) in cash and cash equivalents | (6.1 | ) | (12.4 | ) |
Level | Fixed Charge Coverage Ratio | Base Rate Revolving Loans | LIBOR Revolving Loans or Letter of Credit Obligations | |||
I | Greater than or equal to 1.25:1.0 | 1.25 | % | 2.25 | % | |
II | Less than 1.25:1.0 but greater than or equal to 1.10:1.0 | 1.50 | % | 2.50 | % | |
III | Less than 1.10:1.0 | 1.75 | % | 2.75 | % |
(In millions) | March 31, 2013 | ||
Borrowing base | $ | 26.5 | |
Less: adjustments to the borrowing base | |||
Minimum availability | (10.0 | ) | |
Outstanding letters of credits | (2.0 | ) | |
Adjusted borrowing base | 14.4 | ||
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 14.4 | |
Interest rates on outstanding borrowing | 4.50 | % |
(1) | a requirement to maintain a minimum excess availability of $10.0 million until such time that, for two consecutive fiscal quarters, the Company’s Fixed Charge Coverage Ratio is at least 1.2x (such occurrence, a “Trigger Event”), at which time the Company’s required minimum excess availability is reduced $5.0 million; |
(2) | upon the occurrence of a Trigger Event, maintain a minimum required Fixed Charge Coverage Ratio of 1.1x; |
(3) | Maintain a minimum EBITDA (as defined in the Revolver Agreement) for the Company’s North American and U.K. operations of at least $1.0 million; |
(4) | a limit on the payment of dividends of not more than $5.0 million per year and subject to certain conditions; |
(5) | restrictions on the ability of the Company to make additional borrowings, acquire, merge or otherwise fundamentally change the ownership of the Company or repurchase the Company’s stock; |
(6) | a limit on investments, and a limit on acquisitions of not more than $25.0 million in cash and $25.0 million in non-cash consideration per year, subject to certain conditions set forth in the Revolver Agreement; |
(7) | a limit on dispositions of assets of not more than $4.0 million per year; and |
(8) | a limit on the aggregate cumulative amount of cash outflows from Loan Parties to affiliates of the Company that are not Loan Parties not to exceed the aggregate cumulative amount of cash inflows from (i) affiliates that are not Loan Parties to Loan Parties, (ii) equity offerings by the Company and (iii) the proceeds of divestiture or asset sales, in the case of each of the following periods, by more than $5.0 million for any quarterly compliance testing period beginning after March 1, 2013 or in the aggregate through December 31, 2013 or for any twelve-month period ending as of the end of each fiscal quarter commencing with the twelve-month period ending December 31, 2013. |
(In millions) | March 31, 2013 | ||
Tranche A: | |||
Borrowing capacity | $ | 14.3 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 14.3 | |
Interest rates on outstanding borrowing | 4.83 | % | |
Tranche B: | |||
Borrowing capacity | $ | 2.9 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 2.9 | |
Interest rates on outstanding borrowing | 6.03 | % | |
Tranche C: | |||
Borrowing capacity | $ | 5.2 | |
Less: outstanding borrowing | (3.0 | ) | |
Additional borrowing availability | $ | 2.2 | |
Interest rates on outstanding borrowing | 1.10 | % |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (a) | ||||||||||
January 1, 2013 - January 31, 2013 | — | $ | — | — | $ | 6,792,000 | ||||||||
February 1, 2013 - February 28, 2013 (b) | 67,605 | $ | 4.45 | — | $ | 6,792,000 | ||||||||
March 1, 2013 - March 31, 2013 (b) | 14,198 | $ | 3.76 | — | $ | 6,792,000 | ||||||||
Total | 81,803 | $ | 4.53 | — | $ | 6,792,000 |
(a) | On February 4, 2008, the Company announced that its Board of Directors authorized the repurchase of a maximum of $15 million of the Company’s common stock. As of March 31, 2013, the Company had repurchased 1,491,772 shares for a total cost of approximately $8.2 million under this authorization. Repurchases of common stock are restricted under the Company’s Revolver Agreement entered into on August 5, 2010, as amended on February 22, 2012, June 26, 2012 and December 31, 2012. |
(b) | Consisted of restricted stock withheld from employees upon the vesting of such shares to satisfy employees’ income tax withholding requirements. |
HUDSON GLOBAL, INC. | |||
(Registrant) | |||
By: | /s/ MANUEL MARQUEZ DORSCH | ||
Manuel Marquez Dorsch | |||
Chairman and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Dated: | May 7, 2013 | ||
By: | /s/ MARY JANE RAYMOND | ||
Mary Jane Raymond | |||
Executive Vice President and Chief Financial Officer | |||
(Principal Financial Officer) | |||
Dated: | May 7, 2013 |
Exhibit No. | Description | |
31.1 | Certification by Chairman and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act. | |
31.2 | Certification by the Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. | |
32.1 | Certification of the Chairman and Chief Executive Officer pursuant to 18 U.S.C. Section 1350. | |
32.2 | Certification of the Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | |
101 | The following materials from Hudson Global, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 are furnished herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) for the three months ended March 31, 2013 and 2012, (ii) the Condensed Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012, (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, (iv) the Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2013, and (v) Notes to Condensed Consolidated Financial Statements. |
1. | I have reviewed this quarterly report on Form 10-Q of Hudson Global, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | May 7, 2013 | /s/ MANUEL MARQUEZ DORSCH |
Manuel Marquez Dorsch | ||
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Hudson Global, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | May 7, 2013 | /s/ MARY JANE RAYMOND |
Mary Jane Raymond | ||
Executive Vice President and Chief Financial Officer |
/s/ MANUEL MARQUEZ DORSCH | |
Manuel Marquez Dorsch | |
May 7, 2013 |
/s/ MARY JANE RAYMOND | |
Mary Jane Raymond | |
May 7, 2013 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Accumulated Other Comprehensive Income [Abstract] | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 19,064 | $ 20,826 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (275) | (290) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 18,789 | $ 20,536 |
GOODWILL (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Goodwill [Roll Forward] | ||
Goodwill, January 1, | $ 2,020 | $ 1,992 |
Additions | 0 | 0 |
Impairments | 0 | 0 |
Currency translation | 6 | 6 |
Goodwill, March 31, | $ 2,026 | $ 1,998 |
RESTRICTED CASH (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 2,075 | $ 2,164 |
Other assets
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,847 | 1,920 |
Other assets | Collateral accounts
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 619 | 619 |
Other assets | Rental deposits
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,228 | 1,301 |
Prepaid and other
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 228 | 244 |
Prepaid and other | Collateral accounts
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 0 | 0 |
Prepaid and other | Others
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 129 | 142 |
Prepaid and other | Client guarantees
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 99 | $ 102 |
CREDIT AGREEMENTS (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
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Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate based on fixed charge coverage ratio | is determined as follows:
|
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RBS Citizens Business Capital
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The details of the Revolver Agreement as of March 31, 2013 were as follows:
|
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Westpac Bank
|
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Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The details of the Facility Agreement as of March 31, 2013 were as follows:
|
STOCK-BASED COMPENSATION (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation expense | For the three months ended March 31, 2013 and 2012, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in stock options | Changes in the Company’s stock options for the three months ended March 31, 2013 and 2012 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in restricted stock | Changes in the Company’s restricted stock for the three months ended March 31, 2013 and 2012 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in restricted stock units | Changes in the Company’s restricted stock units for the three months ended March 31, 2013 and 2012 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of expenses and contributions for the prior years' employer-matching liability for the 401(k) plan | For the three months ended March 31, 2013 and 2012, the Company’s expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows:
|
BUSINESS REORGANIZATION EXPENSES (Changes in accrued business reorganization expenses) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 15 Months Ended |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2013
Employee
|
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Number of Positions Eliminated | 37 | |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | $ 3,420 | |
Changes in estimate | 7 | |
Additional charges | 1,975 | |
Payments | (1,377) | |
Balance, end of period | 4,025 | 4,025 |
Lease termination payments
|
||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 2,678 | |
Changes in estimate | 7 | |
Additional charges | 0 | |
Payments | (510) | |
Balance, end of period | 2,175 | 2,175 |
Employee termination benefits
|
||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 715 | |
Changes in estimate | 0 | |
Additional charges | 1,764 | |
Payments | (633) | |
Balance, end of period | 1,846 | 1,846 |
Other associated costs
|
||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | 27 | |
Changes in estimate | 0 | |
Additional charges | 211 | |
Payments | (234) | |
Balance, end of period | $ 4 | $ 4 |
STOCK-BASED COMPENSATION Defined contribution plan and non-cash employer-matching contributions (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Discolusre of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation arrangement award vesting period | 5 years | |
Defined contribution pan, maximum annual contribution per employee percent | 15.00% | |
Defined contribution plan, employer matching contribution percent | 3.00% | |
Expense recognized for the 401(k) plan | $ 190 | $ 193 |
Number of shares of the Company's common stock issued | 0 | 124 |
Market value per share of the Company's common stock on contribution date (in dollars) | $ 0.00 | $ 5.35 |
Non-cash contribution made for employer matching liability | 0 | 666 |
Other Postretirement Benefits Payments | 651 | 0 |
Cash and Noncash pension and other postretirement contributions | $ 651 | $ 666 |
REVENUE, DIRECT COSTS AND GROSS MARGIN Revenue, Direct Costs and Gross Margin (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||
Revenue | $ 165,678 | [1] | $ 200,590 | [1] | ||||
Direct costs | 109,001 | [2] | 127,382 | [2] | ||||
Gross margin | 56,677 | 73,208 | ||||||
Temporary Contracting
|
||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||
Revenue | 128,841 | 150,437 | ||||||
Direct costs | 106,366 | [2] | 124,071 | [2] | ||||
Gross margin | 22,475 | 26,366 | ||||||
Other
|
||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||
Revenue | 36,837 | 50,153 | ||||||
Direct costs | 2,635 | [2] | 3,311 | [2] | ||||
Gross margin | $ 34,202 | $ 46,842 | ||||||
|
CREDIT AGREEMENTS (Details)
In Thousands, unless otherwise specified |
3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 01, 2012
Base rate revolving loan
Greater than or equal to 1.25:1.0
|
Feb. 01, 2012
Base rate revolving loan
Less than 1.25:1.0 but greater than or equal to 1.10:1.0
|
Feb. 01, 2012
Base rate revolving loan
Less than 1.10:1.0
|
Feb. 01, 2012
LIBOR Revolving Loans or Letter of Credit Obligations
Greater than or equal to 1.25:1.0
|
Feb. 01, 2012
LIBOR Revolving Loans or Letter of Credit Obligations
Less than 1.25:1.0 but greater than or equal to 1.10:1.0
|
Feb. 01, 2012
LIBOR Revolving Loans or Letter of Credit Obligations
Less than 1.10:1.0
|
Mar. 31, 2013
RBS Citizens Business Capital
USD ($)
|
Mar. 31, 2013
RBS Citizens Business Capital
Overdraft Facility
USD ($)
|
Aug. 05, 2010
RBS Citizens Business Capital
Overdraft Facility
USD ($)
|
Mar. 31, 2013
RBS Citizens Business Capital
Overdraft Facility
North American and U.K. Operations
USD ($)
|
Mar. 31, 2013
Westpac Bank
|
Mar. 31, 2013
Westpac Bank
Line of Credit [Member]
USD ($)
|
Mar. 31, 2013
Westpac Bank
Line of Credit [Member]
AUD
|
Mar. 31, 2013
Westpac Bank
Invoice Discounting Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Invoice Discounting Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Invoice Discounting Facility
AUD
|
Mar. 31, 2013
Westpac Bank
Invoice Discounting Facility
Bank Bill Rate
|
Mar. 31, 2013
Westpac Bank
Overdraft Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Overdraft Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Overdraft Facility
NZD
|
Mar. 31, 2013
Westpac Bank
Overdraft Facility
Commercial Lending Rate
|
Mar. 31, 2013
Westpac Bank
Financial Guarantee Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Financial Guarantee Facility
USD ($)
|
Nov. 29, 2011
Westpac Bank
Financial Guarantee Facility
AUD
|
Mar. 31, 2013
Lending Arrangements Belgium, Netherlands, Singapore, and Mainland China Banks
Overdraft Facility
USD ($)
|
Mar. 31, 2013
Lending Arrangements Belgium Bank
Invoice Discounting Facility
|
Mar. 31, 2013
Lending Arrangements Netherlands and Belgium Banks
Overdraft Facility
EURIBOR
|
Mar. 31, 2013
Netherlands subsidiary
Lending Arrangements Netherlands Bank
years
|
Mar. 31, 2013
Netherlands subsidiary
Lending Arrangements Netherlands Bank
Overdraft Facility
USD ($)
|
Mar. 31, 2013
Netherlands subsidiary
Lending Arrangements Netherlands Bank
Overdraft Facility
EUR (€)
|
Mar. 31, 2013
Belgium Subsidiary
Lending Arrangements Belgium Bank
|
Mar. 31, 2013
Belgium Subsidiary
Lending Arrangements Belgium Bank
Overdraft Facility
USD ($)
|
Mar. 31, 2013
Belgium Subsidiary
Lending Arrangements Belgium Bank
Overdraft Facility
EUR (€)
|
Mar. 31, 2013
Singapore Subsidiary
Overdraft Facility
Singapore Prime Rate
|
Mar. 31, 2013
Singapore Subsidiary
Lending Arrangements Singapore Bank
USD ($)
years
|
Mar. 31, 2013
Singapore Subsidiary
Lending Arrangements Singapore Bank
SGD
|
Mar. 31, 2013
Singapore Subsidiary
Lending Arrangements Singapore Bank
Overdraft Facility
Singapore Prime Rate
|
Mar. 31, 2013
Mainland China Subsidiary
Lending Arrangements China Bank
USD ($)
years
|
Mar. 31, 2013
Mainland China Subsidiary
Lending Arrangements China Bank
Overdraft Facility
|
Mar. 31, 2013
Mainland China Subsidiary
Lending Arrangements China Bank
Overdraft Facility
People's Republic of China Six Month Rate
|
Mar. 31, 2013
Minimum
RBS Citizens Business Capital
Overdraft Facility
USD ($)
|
Dec. 31, 2012
Amendment No. 3 [Member]
RBS Citizens Business Capital
Overdraft Facility
|
|
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 40,000 | $ 20,838 | 20,000 | $ 2,928 | 3,500 | $ 5,210 | 5,000 | $ 2,265 | € 1,767 | $ 1,281 | € 1,000 | $ 806 | 1,000 | $ 1,000 | ||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity increased borrowing amount subject to certain conditions | 50,000 | |||||||||||||||||||||||||||||||||||||||||
Deferred financing costs | 1,457 | |||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate increase | 1.25% | 1.50% | 1.75% | 2.25% | 2.50% | 2.75% | 0.75% | 0.83% | 1.75% | 2.00% | ||||||||||||||||||||||||||||||||
Line of credit facility, minimum excess availability | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||||||||||
Borrowing base | 26,458 | |||||||||||||||||||||||||||||||||||||||||
Minimum availability | (10,000) | 10,000 | 5,000 | |||||||||||||||||||||||||||||||||||||||
Outstanding letters of credit | (2,028) | |||||||||||||||||||||||||||||||||||||||||
Adjusted borrowing base | 14,430 | |||||||||||||||||||||||||||||||||||||||||
Less: outstanding borrowing | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Additional borrowing availability | 14,430 | 14,266 | 2,928 | |||||||||||||||||||||||||||||||||||||||
Interest rates on outstanding borrowing | 4.50% | 4.83% | 6.03% | 2.61% | 6.00% | 7.60% | ||||||||||||||||||||||||||||||||||||
Fixed charges coverage ratio | 1.2 | 1.5 | 1.5 | |||||||||||||||||||||||||||||||||||||||
Earnings before interest, taxes, depreciation, and amortization | 1,000 | |||||||||||||||||||||||||||||||||||||||||
Debt convenant, dividend restrictions | 5,000 | |||||||||||||||||||||||||||||||||||||||||
Debt covenant, business acquisition, cost of acquired entity, cash limit | 25,000 | |||||||||||||||||||||||||||||||||||||||||
Debt covenant, business acquisition, cost of acquired entity, noncash consideration limit | 25,000 | |||||||||||||||||||||||||||||||||||||||||
Debt covenant, disposition of assets, limit | 4,000 | |||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Covenants, Maximum Amount of Net Cash Outflows to Non Loan Parties Affialiates | 5,000 | |||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.65% | 0.65% | 1.10% | |||||||||||||||||||||||||||||||||||||||
Borrowing capacity | 14,266 | 2,928 | ||||||||||||||||||||||||||||||||||||||||
Financial guarantee capacity | 5,210 | |||||||||||||||||||||||||||||||||||||||||
Less: outstanding financial guarantee requested | (2,979) | |||||||||||||||||||||||||||||||||||||||||
Additional availability for financial guarantee | 2,231 | |||||||||||||||||||||||||||||||||||||||||
Interest rates on financial guarantee requested | 1.10% | |||||||||||||||||||||||||||||||||||||||||
Tangible net worth | 85.00% | 85.00% | ||||||||||||||||||||||||||||||||||||||||
Minimum tangible net amount | 18,233 | 17,500 | ||||||||||||||||||||||||||||||||||||||||
Maximum borrowing base ratio | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||||||||||
Lending arrangement expiration | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Terminated notice period | 90 days | 30 days | 15 days | |||||||||||||||||||||||||||||||||||||||
Line of credit facility, average outstanding amount | $ 0 | |||||||||||||||||||||||||||||||||||||||||
Debt, weighted average interest rate | 0.00% |
PROPERTY AND EQUIPMENT, NET Property and Equipment, Net (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 71,778 | $ 72,256 |
Less: acccumulated depreciation and amortization | 52,868 | 52,206 |
Property and equipment, net | 18,910 | 20,050 |
Property Plant and Equipment, Capital Expenditure Not Yet Placed in Service | 1,009 | 778 |
Capital lease obligation, current | 475 | 467 |
Capital lease obligation, non-current | 202 | 324 |
Computer equipment
|
||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,501 | 10,889 |
Furniture and equipment
|
||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 7,761 | 7,840 |
Capitalized software costs
|
||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 29,088 | 28,877 |
Leasehold and building improvements
|
||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 24,428 | $ 24,650 |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Recently Issued Accounting Pronouncements [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In March 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-05, “Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). ASU 2013-05 provides clarification regarding whether Subtopic 810-10, Consolidation - Overall, or Subtopic 830-30, Foreign Currency Matters - Translation of Financial Statements, applies to the release of cumulative translation adjustments into net income when a reporting entity either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets that constitute a business within a foreign entity. ASU 2013-05 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. The Company's adoption of ASU 2013-05 is not expected to have a material impact on the Company's Consolidated Financial Statements. In February 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income", an amendment to FASB ASC Topic 220. ASU 2013-02 requires disclosure of amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes to financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for the Company for annual and interim periods beginning January 1, 2013. The Company's adoption of ASU 2013-02 did not have a material impact on the Company's Consolidated Financial Statements. |
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