Korn/Ferry International F1Q10 (Qtr End 07/31/09) Earnings Call Transcript

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2009-09-09 13:34:16.0

Tags: Korn/Ferry International, Call Transcript, Quarter, Earnings, UBS AG, Real Estate, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Andrew Fones - UBS.

Andrew Fones - UBS

Can you just kind of drill down in terms of the impacts of Whitehead by division. If I understand correctly, it added about $5.9 million in revenue in the quarter and did you say that it added $5.3 million in EMEA, so I guess $0.5 million across the other divisions, is that right?

Mike DiGregorio

The figure was $5.8 million and that adjust in the EMEA region.

Gary Burnison

Remember Andrew that was for about 45 days or so, in the quarter.

Andrew Fones - UBS

Yes, that was going to be my other question, but so 5.8 in EMEA. Can you give us the numbers in the other divisions, please?

Gary Burnison

Essentially nil

Andrew Fones - UBS

Was it fairly to minimize in the other area?

Gregg Kvochak

That’s what Mike just said. He said essentially nothing, yes.

Andrew Fones - UBS

Then in terms of the cost savings, the $18 million that you mentioned annualized. How should we expect those to kind of flow in over the next couple of quarters? Likely to be out there annualized right, in two quarters or three quarters. How should we think about that?

Mike DiGregorio

Essentially, a lot of the actions were taken at the end of the quarter. So those start to rollout pretty much this quarter. So we won’t necessarily get the full impact during the quarter, but we expect to complete the majority of those actions by the end of the quarter.

Andrew Fones - UBS

So you’re saying that a lot of the actions were happened in Q1, but there are some outstanding that’ll be concluded by the end of Q2?

Gregg Kvochak

What Mike said, basically some happened very late in the first quarter. So with we likely will not realize the full impact of those savings in the second quarter, but certainly by the third and fourth quarter, we should be at the appropriate $18 million annualized rate.

Mike DiGregorio

We mentioned before, the savings were roughly split between people and real estate costs, and so again the bulk of the people actions we’re taken and so we will start to get those. Some of the real estate actions, again majority of those we’re taken as well, but some will actually rollout here during the quarter.

Andrew Fones - UBS

 

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