Hudson Global, Inc.: Hudson Global Reports 2014 Second Quarter Results

    Hudson Global, Inc.: Hudson Global Reports 2014 Second Quarter Results

                     Highest Gross Margin in Six Quarters

Progress on Strategic Actions to Focus on Core Business and Improve Efficiency

NEW YORK, July 31, 2014 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON),
a leading global talent solutions company, today announced financial results
for the second quarter ended June 30, 2014.

2014 Second Quarter Summary

  *Revenue of $167.4 million, down 2.3 percent from the second quarter of
    2013, or 4.4 percent in constant currency.
  *Gross margin of $62.8 million, an increase of 3.8 percent from the second
    quarter of 2013, or 1.9 percent in constant currency. This quarter's gross
    margin was the highest dollar level achieved by the company since the
    fourth quarter of 2012.
  *Adjusted EBITDA* loss of $0.8 million, an improvement of 68.2 percent or
    63.9 percent in constant currency, as compared with a loss of $2.5 million
    in the same period last year. Adjusted EBITDA included $1.3 million of
    charges related to the proxy contest and strategic actions.
  *Adjusted EBITDA* loss of $2.9 million in the first half of 2014, as
    compared with a loss of $7.4 million in the first half of 2013, an
    improvement of 61.3 percent or 59.2 percent in constant currency.
  *Restructuring charges of $1.1 million in the second quarter of 2014, as
    compared with $1.2 million in the second quarter of 2013.
  *Net loss of $4.4 million, or $0.13 per basic and diluted share, as
    compared with net loss of $5.8 million, or $0.18 per basic and diluted
    share in the same period last year.

  * Adjusted EBITDA is defined in the segment tables at the end of this
  release.

Year-over-year gross margin growth in the company's core business lines and
geographies was widespread, including 4 percent in Asia Pacific, 9 percent in
Europe, and 50 percent in RPO in the Americas, all in constant currency. This
growth more than offset the decline in our eDiscovery unit in the Americas.

"We delivered gross margin growth in our major markets and continued to make
substantial improvements to our bottom line," said Manolo Marquez, chairman
and chief executive officer at Hudson. "Our second quarter results are a clear
indication that the changes we have put in place are translating to growth and
improved financial performance, and will accelerate our path to sustained
profitability."

Stephen Nolan, chief financial officer at Hudson said, "Our focus on
disciplined execution, strategic investments, and business efficiencies have
resulted in improved performance across most markets and practices."

Strategic Actions

As was previously announced, the company engaged Duff & Phelps to begin
exploring opportunities to divest the Legal eDiscovery business, and focus on
the company's core businesses that are expected to maximize stockholder value.
On July 29, 2014, the company's management and board of directors approved the
plan for divestiture of the Legal eDiscovery business, which is expected to be
completed within 12 months.

In addition, the company engaged AlixPartners, LLP, a premier consulting firm
in the areas of organization design and operational improvement, to assist
management in a comprehensive assessment of the company's organization and
operations. The engagement with AlixPartners was focused on identifying
opportunities to better align the organization model to a more focused
business after the divestiture of eDiscovery, to support future growth in core
areas, and improve operating efficiencies and effectiveness. Based upon this
work, management recommended and the board of directors approved on July 29,
2014 actions including the optimization of real estate and integration of
support services and systems at the regional and corporate level. These
initiatives are expected to result in a restructuring charge of up to $7
million which is expected to be taken over the next twelve months, depending
on the timing of other strategic actions such as the sale of the company's
eDiscovery business. The company expects an ongoing annualized return of 1.5 -
2.0x the charge.

Regional Highlights

Americas

Americas' gross margin decreased 24 percent in the second quarter as compared
with the same period in 2013. RPO continued to deliver strong results with 50
percent gross margin growth in the second quarter, after becoming the largest
practice in the Americas on a gross margin basis in the first quarter of 2014.
This growth was offset by declines in Legal eDiscovery and IT of 45 percent
and 19 percent, respectively. The quarterly decline in Gross Margin, combined
with an unusually significant increase in medical costs, resulted in an
adjusted EBITDA loss of $0.1 million for the second quarter, compared with
adjusted EBITDA of $1.5 million, or 4.1 percent of revenue for the same
quarter a year ago.

Asia Pacific

Asia Pacific's gross margin increased 4 percent in constant currency in the
second quarter as compared with the same period in 2013. This was the second
consecutive quarter of year-over-year gross margin growth, with all business
lines contributing in both quarters. More specifically, growth in the region
was driven by strength in talent management and permanent recruitment in
China, and Australia. Gross margin increased 30 percent in China in the
quarter against the prior year. And in Australia, gross margin increased 6
percent, outperforming the company's major competitors. Talent management
delivered 19 percent growth in Asia Pacific, led by large assessment and
career transition projects in Australia. A concerted effort to increase front
office staff in its highest potential markets and practices in Asia Pacific
resulted in a 28 percent increase in fee-earners in the quarter as compared to
prior year. The company expects further growth and market share gains in the
region as the productivity of these new fee-earners increases. Cost reductions
in support areas and real estate, together with top-line growth generated
adjusted EBITDA of $1.0 million, or 1.5 percent of revenue, as compared to
$0.7 million, or 1.1 percent of revenue in the second quarter of 2013.

Europe

Europe's gross margin increased 9 percent in constant currency compared with
the second quarter of 2013. Against prior year, the region experienced gross
margin growth in most countries. Particularly strong growth occurred in
permanent recruitment in the UK and Belgium, up 18 percent and 27 percent in
constant currency, respectively. Talent management in Continental Europe also
grew in the quarter driven by Belgium and France, with gross margin up 7
percent compared with the prior year. Europe delivered adjusted EBITDA of $3.2
million, or 4.2 percent of revenue, as compared with adjusted EBITDA of $0.1
million, or 0.1 percent of revenue for the quarter a year ago.

Liquidity and Capital Resources

The company ended the second quarter of 2014 with $51.9 million in liquidity,
composed of $17.9 million in cash and $34.1 million in availability under its
credit facilities. This included $13.1 million of availability from the RBS
facility, which will expire on August 4, 2014 and which the company expects to
replace with separate facilities for the US and UK prior to such expiration
date. This compares with $22.1 million in cash and $35.8 million in
availability under its credit facilities at the end of the first quarter of
2014, and $28.3 million in cash and $35.8 million in availability under its
credit facilities at the end of the second quarter of 2013. The company used
$4.6 million in cash flow from operations during the quarter, and had $2.2
million in outstanding borrowings at the end of the second quarter.

Business Outlook

Given current economic conditions, the company expects third quarter 2014
revenue of between $165 million and $175 million and adjusted EBITDA of
between negative $2 million and breakeven at prevailing exchange rates. In the
third quarter of 2013, revenue was $163.6 million and adjusted EBITDA was a
loss of $2.9 million.

Conference Call/Webcast

Hudson will conduct a conference call today at 10:00 a.m. ET to discuss this
announcement. Individuals wishing to listen can access the webcast on the
investor information section of the company's web site at Hudson.com.

The archived call will be available on the investor information section of the
company's web site at Hudson.com.

About Hudson

Hudson is a global talent solutions company with expertise in leadership and
specialized recruitment, contracting solutions, recruitment process
outsourcing, talent management and eDiscovery. We help our clients and
candidates succeed by leveraging our expertise, deep industry and market
knowledge, and proprietary assessment tools and techniques. Operating in 20
countries through relationships with millions of specialized professionals, we
bring an unparalleled ability to match talent with opportunities by assessing,
recruiting, developing and engaging the best and brightest people for our
clients. We combine broad geographic presence, world-class talent solutions
and a tailored, consultative approach to help businesses and professionals
achieve higher performance and outstanding results. More information is
available at Hudson.com.

Forward-Looking Statements

This press release contains statements that the company believes to be
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact included in this press release, including statements regarding
the company's future financial condition, results of operations, business
operations and business prospects, are forward-looking statements. Words such
as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict,"
"believe" and similar words, expressions and variations of these words and
expressions are intended to identify forward-looking statements. All
forward-looking statements are subject to important factors, risks,
uncertainties and assumptions, including industry and economic conditions'
that could cause actual results to differ materially from those described in
the forward-looking statements. Such factors, risks, uncertainties and
assumptions include, but are not limited to, global economic fluctuations; the
company's ability to successfully achieve its strategic initiatives, including
the divestiture of its Legal eDiscovery business; risks related to
fluctuations in the company's operating results from quarter to quarter; the
ability of clients to terminate their relationship with the company at any
time; competition in the company's markets; risks associated with the
company's investment strategy; risks related to international operations,
including foreign currency fluctuations; the company's dependence on key
management personnel; the company's ability to attract and retain highly
skilled professionals; the company's ability to collect accounts receivable;
the negative cash flows and operating losses that the company has experienced
in recent periods and may experience from time to time in the future;
restrictions on the company's operating flexibility due to the terms of its
credit facilities; the company's ability to achieve anticipated cost savings
through its cost reduction initiatives; the company's heavy reliance on
information systems and the impact of potentially losing or failing to develop
technology; risks related to providing uninterrupted service to clients; the
company's exposure to employment-related claims from clients, employers and
regulatory authorities, current and former employees in connection with the
company's business reorganization initiatives and limits on related insurance
coverage; the company's ability to utilize net operating loss carry-forwards;
volatility of the company's stock price; the impact of government regulations;
restrictions imposed by blocking arrangements; risks related to activist
stockholders; and risks related to limited availability under the company's
credit facilities. Additional information concerning these and other factors
is contained in the company's filings with the Securities and Exchange
Commission. These forward-looking statements speak only as of the date of this
document. The company assumes no obligation, and expressly disclaims any
obligation, to update any forward-looking statements, whether as a result of
new information, future events or otherwise.

Financial Tables Follow

                             HUDSON GLOBAL, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share amounts)
                                 (unaudited)
                                                              
                        Three Months Ended June 30, Six Months Ended June 30,
                            2014          2013          2014         2013
Revenue                     $167,365    $171,360   $329,226   $337,037
Direct costs                  104,554      110,856     208,885     219,857
Gross margin                   62,811       60,504     120,341     117,180
Operating expenses:                                            
Selling, general and
administrative expenses        63,612       63,023     123,214     124,613
Depreciation and
amortization                    1,514        1,656       3,002       3,304
Business reorganization
expenses                        1,117        1,249       1,231       3,231
Total operating expenses       66,243       65,928     127,447     131,148
Operating income (loss)       (3,432)      (5,424)     (7,106)    (13,968)
Non-operating income
(expense):                                                     
Interest income
(expense), net                  (206)        (155)       (350)       (300)
Other income (expense),
net                             (321)         (94)       (523)         177
Income (loss) before
provision for income
taxes                         (3,959)      (5,673)     (7,979)    (14,091)
Provision for (benefit
from) income taxes                415          138         939        (39)
Net income (loss)           $(4,374)    $(5,811)   $(8,918)  $(14,052)
Earnings (loss) per
share:                                                         
Basic                        $(0.13)     $(0.18)    $(0.27)    $(0.43)
Diluted                      $(0.13)     $(0.18)    $(0.27)    $(0.43)
Weighted-average shares
outstanding:                                                   
Basic                          32,752       32,717      32,697      32,532
Diluted                        32,752       32,717      32,697      32,532



                                      
                             HUDSON GLOBAL, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)
                                                                
                                                        June 30,  December 31,
                                                         2014        2013
                        ASSETS                                   
Current assets:                                                  
Cash and cash equivalents                               $17,853    $37,378
Accounts receivable, less allowance for doubtful
accounts of $1,152 and $1,108, respectively              100,508      85,901
Prepaid and other                                         10,381       8,762
Total current assets                                     128,742     132,041
Property and equipment, net                               14,900      13,822
Deferred tax assets, non-current                           6,487       7,124
Other assets                                               5,791       5,842
Total assets                                           $155,920   $158,829
         LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities:                                             
Accounts payable                                         $8,177     $9,747
Accrued expenses and other current liabilities            57,574      54,722
Short-term borrowings                                      2,183         476
Accrued business reorganization expenses                   2,292       3,810
Total current liabilities                                 70,226      68,755
Deferred rent and tenant improvement contributions         7,556       6,120
Income tax payable, non-current                            2,929       3,872
Other non-current liabilities                              6,600       5,697
Total liabilities                                         87,311      84,444
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 33,134 and 33,543 shares,
respectively                                                  34          34
Additional paid-in capital                               476,193     475,461
Accumulated deficit                                    (426,340)   (417,422)
Accumulated other comprehensive income                    19,178      17,173
Treasury stock, 127 and 211 shares, respectively, at
cost                                                       (456)       (861)
Total stockholders' equity                                68,609      74,385
Total liabilities and stockholders' equity             $155,920   $158,829



                                     
                            HUDSON GLOBAL, INC.
                     SEGMENT ANALYSIS - QUARTER TO DATE
                               (in thousands)
                                (unaudited)
                                                            
For The Three       Hudson      Hudson     Hudson
Months Ended June  Americas      Asia      Europe     Corporate     Total
30, 2014                       Pacific
Revenue, from
external
customers           $26,263  $65,101   $76,001        $-  $167,365
Gross margin,
from external
customers            $7,066  $24,519   $31,226        $-   $62,811
Adjusted EBITDA
(loss) (1)           $(139)     $996    $3,203  $(4,861)    $(801)
Business
reorganization
expenses
(recovery)                 3     1,114          -          -      1,117
Non-operating
expense (income),
including
corporate
administration
charges                  740       463      1,582    (2,464)        321
EBITDA (loss) (1)     $(882)    $(581)     $1,621   $(2,397)   $(2,239)
Depreciation and amortization expenses                               1,514
Interest expense (income), net                                        206
Provision for (benefit from) income taxes                              415
Net income (loss)                                              $(4,374)
                                                            
For The Three       Hudson      Hudson     Hudson
Months Ended June  Americas      Asia      Europe     Corporate     Total
30, 2013                       Pacific
Revenue, from
external
customers           $37,327  $62,869   $71,164        $-  $171,360
Gross margin,
from external
customers            $9,245  $24,276   $26,983        $-   $60,504
Adjusted EBITDA
(loss) (1)           $1,542     $713       $87  $(4,856)  $(2,514)
Business
reorganization
expenses
(recovery)               325         -        556        368      1,249
Office
integration
expense and
(gains) on
disposal of
business                   6         -          -          -          6
Non-operating
expense (income),
including
corporate
administration
charges                  825       490      1,686    (2,908)         93
EBITDA (loss) (1)      $386     $223  $(2,155)  $(2,316)  $(3,862)
Depreciation and amortization expenses                               1,656
Interest expense (income), net                                        155
Provision for (benefit from) income taxes                              138
Net income (loss)                                              $(5,811)

(1) Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and non-GAAP earnings before interest, income taxes,
depreciation and amortization, non-operating income, goodwill and other
impairment charges, business reorganization expenses and other expenses
("Adjusted EBITDA") are presented to provide additional information about
the company's operations on a basis consistent with the measures which the
company uses to manage its operations and evaluate its performance.
Management also uses these measurements to evaluate capital needs and
working capital requirements. EBITDA and adjusted EBITDA should not be
considered in isolation or as a substitute for operating income, cash flows
from operating activities, and other income or cash flow statement data
prepared in accordance with generally accepted accounting principles or as a
measure of the company's profitability or liquidity. Furthermore, EBITDA and
adjusted EBITDA as presented above may not be comparable with similarly
titled measures reported by other companies.                                 




                             HUDSON GLOBAL, INC.
                SEGMENT ANALYSIS - QUARTER TO DATE (continued)
                                (in thousands)
                                 (unaudited)
                                                              
For The Three          Hudson      Hudson     Hudson
Months Ended March    Americas      Asia      Europe    Corporate     Total
31, 2014                          Pacific
Revenue, from
external customers     $26,863  $56,430  $78,568        $-  $161,861
Gross margin, from
external customers      $6,666  $20,911  $29,952        $-   $57,529
Adjusted EBITDA
(loss) (1)              $(649)     $110   $2,353  $(3,887)  $(2,073)
Business
reorganization
expenses (recovery)          91         -        23          -        114
Non-operating
expense (income),
including corporate
administration
charges                     370       415     1,177    (1,761)        201
EBITDA (loss) (1)     $(1,110)   $(305)   $1,153  $(2,126)  $(2,388)
Depreciation and
amortization
expenses                                                            1,488
Interest expense
(income), net                                                         144
Provision for
(benefit from)
income taxes                                                          524
Net income (loss)                                               $(4,544)
                                                              
For The Three          Hudson      Hudson     Hudson
Months Ended          Americas      Asia      Europe    Corporate     Total
September 30, 2013                Pacific
Revenue, from
external customers     $34,842  $58,274  $70,471        $-  $163,587
Gross margin, from
external customers      $9,073  $21,348  $25,375        $-   $55,796
Adjusted EBITDA
(loss) (1)              $1,295   $(460)     $440  $(4,158)  $(2,883)
Business
reorganization
expenses (recovery)         208         -       152        368        728
Non-operating
expense (income),
including corporate
administration
charges                     433     (335)       913    (1,307)      (296)
EBITDA (loss) (1)         $654   $(125)   $(625)  $(3,219)  $(3,315)
Depreciation and
amortization
expenses                                                            1,529
Interest expense
(income), net                                                         158
Provision for
(benefit from)
income taxes                                                           45
Net income (loss)                                               $(5,047)
                                                                        
(1) Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and non-GAAP earnings before interest, income taxes,
depreciation and amortization, non-operating income, goodwill and other
impairment charges, business reorganization expenses and other expenses
("Adjusted EBITDA") are presented to provide additional information about the
company's operations on a basis consistent with the measures which the company
uses to manage its operations and evaluate its performance. Management also
uses these measurements to evaluate capital needs and working capital
requirements. EBITDA and adjusted EBITDA should not be considered in isolation
or as a substitute for operating income, cash flows from operating activities,
and other income or cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of the company's
profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as
presented above may not be comparable with similarly titled measures reported
by other companies.


                             HUDSON GLOBAL, INC.
                 SEGMENT ANALYSIS - YEAR TO DATE (continued)
                                (in thousands)
                                 (unaudited)
                                                             
For The Six         Hudson      Hudson      Hudson
Months Ended June  Americas      Asia       Europe     Corporate     Total
30, 2014                        Pacific
Revenue, from
external
customers           $53,126  $ 121,532  $154,568        $-   $329,226
Gross margin,
from external
customers           $13,731   $45,430   $61,180        $-   $120,341
Adjusted EBITDA
(loss) (1)           $(788)    $1,107    $5,556  $(8,749)   $(2,874)
Business
reorganization
expenses
(recovery)                93      1,115         23          -       1,231
Non-operating
expense (income),
including
corporate
administration
charges                1,112        876      2,760    (4,226)         522
EBITDA (loss) (1)  $(1,993)    $(884)    $2,773  $(4,523)   $(4,627)
Depreciation and
amortization
expenses                                                            3,002
Interest expense
(income), net                                                         350
Provision for
(benefit from)
income taxes                                                          939
Net income (loss)                                               $(8,918)
                                                             
For The Six         Hudson      Hudson      Hudson
Months Ended June  Americas      Asia       Europe     Corporate     Total
30, 2013                        Pacific
Revenue, from
external
customers           $74,549  $ 119,070  $143,418        $-   $337,037
Gross margin,
from external
customers           $17,389   $45,768   $54,023        $-   $117,180
Adjusted EBITDA
(loss) (1)           $1,184      $285     $(25)  $(8,871)   $(7,427)
Business
reorganization
expenses
(recovery)               308        102      2,427        394       3,231
Office
integration
expense and
(gains) on
disposal of
business                   6          -          -          -           6
Non-operating
expense (income),
including
corporate
administration
charges                1,430        827      3,155    (5,589)       (177)
EBITDA (loss) (1)    $(560)    $(644)  $(5,607)  $(3,676)  $(10,487)
Depreciation and
amortization
expenses                                                            3,304
Interest expense
(income), net                                                         300
Provision for
(benefit from)
income taxes                                                         (39)
Net income (loss)                                              $(14,052)

(1) Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and non-GAAP earnings before interest, income taxes,
depreciation and amortization, non-operating income, goodwill and other
impairment charges, business reorganization expenses and other expenses
("Adjusted EBITDA") are presented to provide additional information about the
company's operations on a basis consistent with the measures which the company
uses to manage its operations and evaluate its performance. Management also
uses these measurements to evaluate capital needs and working capital
requirements. EBITDA and adjusted EBITDA should not be considered in isolation
or as a substitute for operating income, cash flows from operating activities,
and other income or cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of the company's
profitability or liquidity. Furthermore, EBITDA and adjusted EBITDA as
presented above may not be comparable with similarly titled measures reported
by other companies.

                                      
                                      
                             HUDSON GLOBAL, INC.
                     RECONCILIATION FOR CONSTANT CURRENCY
                          (in thousands) (unaudited)
                                                              
The company operates on a global basis, with the majority of its gross margin
generated outside of the United States. Accordingly, fluctuations in foreign
currency exchange rates can affect its results of operations. Constant
currency information compares financial results between periods as if exchange
rates had remained constant period-over-period. The company currently defines
the term "constant currency" to mean that financial data for a previously
reported period are translated into U.S. dollars using the same foreign
currency exchange rates that were used to translate financial data for the
current period.Changes in revenue, gross margin, selling, general and
administrative expenses ("SG&A"), business reorganization expenses and other
non-operating income (expense), operating income (loss) and EBITDA (loss)
include the effect of changes in foreign currency exchange rates. Variance
analysis usually describes period-to-period variances that are calculated
using constant currency as a percentage. The company's management reviews and
analyzes business results in constant currency and believes these results
better represent the company's underlying business trends. The company
believes that these calculations are a useful measure, indicating the actual
change in operations. There are no significant gains or losses on foreign
currency transactions between subsidiaries. Therefore, changes in foreign
currency exchange rates generally impact only reported earnings.
                                                              
                                    Three Months Ended June 30,
                          2014                        2013
                           As            As          Currency      Constant
                        reported      reported     translation     currency
Revenue:                                                       
Hudson Americas            $26,263     $37,327        $(12)    $37,315
Hudson Asia Pacific          65,101       62,869       (1,776)      61,093
Hudson Europe                76,001       71,164         5,468      76,632
Total                     $167,365    $171,360       $3,680   $175,040
Gross margin:                                                  
Hudson Americas             $7,066      $9,245        $(11)     $9,234
Hudson Asia Pacific          24,519       24,276         (613)      23,663
Hudson Europe                31,226       26,983         1,787      28,770
Total                      $62,811     $60,504       $1,163    $61,667
SG&A (1):                                                      
Hudson Americas             $7,239      $7,709        $(14)     $7,695
Hudson Asia Pacific          23,523       23,545         (796)      22,749
Hudson Europe                27,989       26,927         1,675      28,602
Corporate                     4,861        4,842             -       4,842
Total                      $63,612     $63,023         $865    $63,888
Business
reorganization
expenses:                                                      
Hudson Americas                 $3        $325           $-       $325
Hudson Asia Pacific           1,114            -             -           -
Hudson Europe                     -          556            15         571
Corporate                         -          368             -         368
Total                       $1,117      $1,249          $15     $1,264
Operating income (loss):                                        
Hudson Americas             $(344)        $961           $4       $965
Hudson Asia Pacific           (920)        (114)           215         101
Hudson Europe                 2,831        (888)            67       (821)
Corporate                   (4,999)      (5,383)             -     (5,383)
Total                     $(3,432)    $(5,424)         $286   $(5,138)
EBITDA (loss):                                                 
Hudson Americas             $(882)        $386           $8       $394
Hudson Asia Pacific           (581)          223           190         413
Hudson Europe                 1,621      (2,155)          (22)     (2,177)
Corporate                   (2,397)      (2,316)             -     (2,316)
Total                     $(2,239)    $(3,862)         $176   $(3,686)

(1) SG&A is a measure that management uses to evaluate the segments'
expenses.



                                      
                             HUDSON GLOBAL, INC.
               RECONCILIATION FOR CONSTANT CURRENCY (Continued)
                          (in thousands) (unaudited)
                                                               
                                                               
                                         Six Months Ended June 30,
                                  2014                   2013
                                   As         As       Currency    Constant
                                reported   reported   translation  currency
Revenue:                                                        
Hudson Americas                  $53,126   $74,549     $(35)   $74,514
Hudson Asia Pacific               121,532    119,070    (7,303)    111,767
Hudson Europe                     154,568    143,418      9,535    152,953
Total                           $329,226  $337,037    $2,197  $339,234
Gross margin:                                                   
Hudson Americas                  $13,731   $17,389     $(33)   $17,356
Hudson Asia Pacific                45,430     45,768    (2,390)     43,378
Hudson Europe                      61,180     54,023      3,146     57,169
Total                           $120,341  $117,180      $723  $117,903
SG&A (1):                                                       
Hudson Americas                  $14,551   $16,208     $(36)   $16,172
Hudson Asia Pacific                44,254     45,439    (2,575)     42,864
Hudson Europe                      55,661     54,106      2,950     57,056
Corporate                           8,748      8,860          -      8,860
Total                           $123,214  $124,613      $339  $124,952
Business reorganization
expenses:                                                       
Hudson Americas                      $93      $308        $-      $308
Hudson Asia Pacific                 1,115        102        (8)         94
Hudson Europe                          23      2,427        141      2,568
Corporate                               -        394          -        394
Total                             $1,231    $3,231      $133    $3,364
Operating income (loss):                                        
Hudson Americas                 $(1,308)      $369        $3      $372
Hudson Asia Pacific               (1,555)    (1,473)        312    (1,161)
Hudson Europe                       4,804    (3,276)          2    (3,274)
Corporate                         (9,047)    (9,588)          -    (9,588)
Total                           $(7,106) $(13,968)      $317 $(13,651)
EBITDA (loss):                                                  
Hudson Americas                 $(1,993)    $(560)       $13    $(547)
Hudson Asia Pacific                 (884)      (644)        184      (460)
Hudson Europe                       2,773    (5,607)      (202)    (5,809)
Corporate                         (4,523)    (3,676)          -    (3,676)
Total                           $(4,627) $(10,487)      $(5) $(10,492)

(1) SG&A is a measure that management uses to evaluate the segments'
expenses.

CONTACT: David F. Kirby
         Hudson
         212-351-7216
         david.kirby@hudson.com

------------------------------------------------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Hudson Global, Inc. via Globenewswire
HUG#1844592
 
Press spacebar to pause and continue. Press esc to stop.