Korn/Ferry International – KFY – Pleased with results for the fiscal year and overall progress in making the brand synonymous with talent management

Korn/Ferry International (NYSE: KFY), a premier global provider  of talent management solutions, announced near record FY’12 fee revenue of $790.5 million compared  to fee revenue of $744.3 million in FY’11.

• FY’12 fee revenue increased $46.2 million, or 6%, to $790.5 million from $744.3 million in FY’11.
• FY’12 diluted earnings per share was $1.15 and excluding separation and restructuring charges, net, adjusted diluted earnings per share was $1.19 in FY’12.
• Cash and marketable securities increased $48.6 million, or 13%, to $417.7 million as of April 30, 2012, in comparison to $369.1 million as of April 30, 2011.
• Fee revenue from industrial, consumer goods, and life sciences/healthcare sectors, increased in FY’12 compared to FY’11, offset by declines in the financial services and technology sectors.
• Fee revenue in Futurestep and LTC services grew 26% and 16%, respectively, from FY’11 to FY’12, further substantiating the success of our diversified model.

“I am pleased with our results for the fiscal year and our overall progress in making the Korn/Ferry  brand synonymous with talent management,” said Gary Burnison, CEO of Korn/Ferry International.  For the fiscal year, we increased our global revenue 6% to $790 million, with an adjusted operating margin of almost 11 percent. “We have continued to elevate our business.  For Executive Search, we have now increased our average fee nearly 50% over the past five years.  Our newer offerings, Futurestep and Leadership and Talent Consulting, experienced double digit growth for the fiscal year, further validating our differentiated strategy.  Looking forward, most businesses are fighting seemingly increasing headwinds.  Nevertheless, driven by our diversified strategy, we will continue to build a brand for Korn/Ferry that is strongly tied to the attraction, engagement, development and retention of an organization’s talent.”

KFY Fiscal 2012 Fourth Quarter Results  

Fee revenue was $198.1 million in Q4 FY’12 compared to $197.3 million in Q4 FY’11, an increase of  $0.8 million, which reflects a $4.0 million increase in fee revenue in Futurestep offset by a $3.2 million  decrease in Executive Recruitment fee revenue.  The increase in fee revenue was driven by a 7%  increase in the weighted-average fee billed per engagement, which was partially offset by a 6%  decrease in the overall number of engagements billed compared to the year-ago fiscal quarter.   Weighted-average fee billed per engagement is impacted by the mix of engagements by geography and segment, and fluctuating foreign currencies.  On a constant currency basis, fee revenue increased $2.0 million.

About Korn/Ferry International – KFY

Korn/Ferry International (KFY), with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier global provider of talent management solutions.  Based in Los Angeles, the firm delivers an array of solutions that help clients to attract, deploy, develop and reward their talent.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.