OLD GREENWICH, Conn., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq: HSON), a leading global total talent solutions company, announced today financial results for the third quarter ended September 30, 2020.

2020 Third Quarter Summary

• Revenue of $25.4 million decreased 1.4% from the third quarter of 2019 and 4.7% in constant currency.
• Adjusted net revenue of $9.1 million decreased 20.4% from the third quarter of 2019 and 22.6% in constant currency.
• Net loss was $1.2 million, or $0.41 per basic and diluted share, compared to net income of $0.4 million, or $0.12 per basic and diluted share, for the third quarter of 2019. Adjusted net loss per diluted share (Non-GAAP measure)* was $0.38 compared to adjusted net income per diluted share of $0.13 in the third quarter of 2019.
• Adjusted EBITDA (Non-GAAP measure)* loss was $0.7 million compared to adjusted EBITDA of $0.8 million in the third quarter of 2019.
• Total cash including restricted cash was $29.7 million at September 30, 2020.

“Our business in the third quarter of 2020 continued to be impacted by the challenging macroeconomic environment caused by COVID-19,” said Jeff Eberwein, Chief Executive Officer of Hudson Global. “We are positioned to respond quickly as activity begins to rebound. We are excited about the recent acquisition of Coit Group and what our new, combined team can accomplish together in the technology space. We believe this accretive combination will generate considerable value for our clients, team, and stockholders.”

* The Company provides Non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such Non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.

Regional Highlights

All growth rate comparisons are in constant currency.

Asia Pacific

Asia Pacific revenue of $19.9 million increased 10% and adjusted net revenue of $5.0 million decreased 13% in the third quarter of 2020 compared to the same period in 2019. EBITDA was $0.5 million in the third quarter of 2020 compared to EBITDA of $0.8 million in the same period one year ago, and adjusted EBITDA was $0.9 million compared to adjusted EBITDA of $1.1 million in the third quarter of 2019.

Americas

In the third quarter of 2020, Americas revenue of $1.9 million decreased 45% and adjusted net revenue of $1.7 million decreased 48% from the third quarter of 2019. EBITDA loss was $0.8 million in the third quarter of 2020 compared to breakeven EBITDA in same period last year. The region recorded an adjusted EBITDA loss of $0.8 million compared to adjusted EBITDA of $0.2 million a year ago.

Europe

Europe revenue in the third quarter of 2020 declined 29% to $3.6 million and adjusted net revenue of $2.4 million decreased 13% from the third quarter of 2019. EBITDA was breakeven in the third quarter of 2020 compared to EBITDA of $0.2 million in the same period of 2019. Adjusted EBITDA was breakeven for the third quarter of 2020 compared to adjusted EBITDA of $0.3 million a year ago.

Corporate Costs

In the third quarter of 2020, the Company's corporate costs were $0.9 million compared to $0.8 million in the prior year quarter. Corporate costs in the third quarter of 2020 period excluded non-recurring expenses of $0.1 million compared to $0.0 million in the third quarter of 2019.

Liquidity and Capital Resources

The Company ended the third quarter of 2020 with $29.7 million in cash, including $0.4 million in restricted cash. The Company used $0.5 million in cash flow from operations during the third quarter of 2020, compared to generating $0.2 million of cash flow from operations in the third quarter of 2019. Year-to-date, the company has used $1.4 million in cash flow from operations compared to using $7.6 million in the first nine months of 2019.

Share Repurchase Program

Through 2019 and 2020 year-to-date, the Company reduced its share count by 16% and continues to view share repurchases as an attractive use of capital. Under its $10 million common stock share repurchase program, the Company has $1.7 million remaining.

COVID-19 Update

As disclosed in previously issued Company press releases as well as in our 2019 Form 10-K and first and second quarter 2020 Form 10-Qs, our business has been adversely impacted by the COVID-19 outbreak and the accompanying economic downturn. This downturn, as well as the uncertainty regarding the duration, spread and intensity of the outbreak, led to an initial reduction in demand for our services in the first three quarters of 2020. Some of our customers have instituted hiring freezes, while other customers that are more capable of working remotely have been allowed to operate somewhat as usual. The expected timeline for this reduction in demand for our services remains uncertain and difficult to predict considering the rapidly evolving landscape but we are beginning to see signs of positive momentum at certain clients.

The Company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves. The Company is confident that it can continue to take appropriate actions to manage the business in this challenging environment due to the flexibility of its workforce and the strength of its balance sheet.

About Hudson Global

Hudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients’ strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.

For more information, please visit us at hudsonrpo.com