SEGMENT AND GEOGRAPHIC DATA

6 Months Ended

Jun. 30, 2011

SEGMENT AND GEOGRAPHIC DATA

NOTE 14 – SEGMENT AND GEOGRAPHIC DATA

The Company operates as four reportable segments: Hudson Europe, Hudson ANZ, Hudson Americas, and Hudson Asia. Corporate expenses are reported separately from the four reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, tax and treasury which are not attributable to the reportable segments.

Segment information is presented in accordance with ASC 280, “Segments Reporting.”  This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue, certain expenses and operating income based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

	Hudson				Hudson				Hudson				Hudson									Inter-segment
	Europe				ANZ				Americas				Asia					Corporate				elimination				Total
For The Three Months Ended June 30, 2011
Revenue, from external customers		$	100,191			$	86,143			$	50,912			$	10,132			$	-			$	-			$	247,378
Inter-segment revenue			70				3				-				3				-				(76	)			-
Total revenue		$	100,261			$	86,146			$	50,912			$	10,135			$	-			$	(76	)		$	247,378
Gross margin, from external customers		$	42,228			$	30,534			$	13,021			$	9,684			$	-			$	-			$	95,467
Inter-segment gross margin			53				(48	)			(5	)			-				-				-				-
Total gross margin		$	42,281			$	30,486			$	13,016			$	9,684			$	-			$	-			$	95,467
Business reorganization and integration expenses		$	396			$	-			$	-			$	-			$	-			$	-			$	396
EBITDA (loss) (a)		$	2,735			$	3,037			$	1,160			$	773			$	(44	)		$	-			$	7,661
Depreciation and amortization			421				728				180				65				242				-				1,636
Interest income (expense), net			(6	)			(212	)			(1	)			4				(160	)			-				(375	)
Income (loss) from continuing operations before income taxes			2,308				2,097				979				712				(446	)			-				5,650
As of  June 30, 2011
Accounts receivable, net		$	67,495			$	51,423			$	31,947			$	8,518			$	-			$	-			$	159,383
Long-lived assets, net of accumulated depreciation and amortization		$	4,644			$	7,397			$	2,040			$	2,613			$	2,637			$	-			$	19,331
Total assets		$	107,402			$	72,103			$	36,641			$	17,742			$	10,627			$	-			$	244,515
	Hudson				Hudson				Hudson				Hudson								Inter-segment
	Europe				ANZ				Americas				Asia					Corporate				elimination				Total
For The Three Months Ended June 30, 2010
Revenue, from external customers		$	80,717			$	65,249			$	40,819			$	8,184			$	-			$	-			$	194,969
Inter-segment revenue			17				-				-				5				-				(22	)			-
Total revenue		$	80,734			$	65,249			$	40,819			$	8,189			$	-			$	(22	)		$	194,969
Gross margin, from external customers		$	34,559			$	21,723			$	10,039			$	7,916			$	-			$	-			$	74,237
Inter-segment gross margin			22				(16	)			-				(7	)			-				1				-
Total gross margin		$	34,581			$	21,707			$	10,039			$	7,909			$	-			$	1			$	74,237
Business reorganization and integration expenses		$	450			$	-			$	101			$	-			$	-			$	-			$	551
EBITDA (loss) (a)		$	2,466			$	1,369			$	(991	)		$	1,311			$	(1,034	)		$	-			$	3,121
Depreciation and amortization			779				559				688				128				32				-				2,186
Interest (expense) income , net			(3	)			14				(1	)			1				(254	)			-				(243	)
Income (loss) from continuing operations before income taxes		$	1,684			$	824			$	(1,680	)		$	1,184			$	(1,320	)		$	-			$	692
As of  June 30, 2010
Accounts receivable, net		$	57,505			$	29,292			$	26,240			$	6,814			$	-			$	-			$	119,851
Long-lived assets, net of accumulated depreciation and amortization		$	5,132			$	6,289			$	1,807			$	2,150			$	2,473			$	-			$	17,851
Total assets		$	84,529			$	50,111			$	30,930			$	15,776			$	19,909			$	-			$	201,255
	Hudson				Hudson				Hudson				Hudson								Inter-segment
	Europe				ANZ				Americas				Asia				Corporate				elimination				Total
For The Six Months Ended June 30,  2011
Revenue, from external customers		$	193,901			$	156,947			$	96,725			$	18,344			$	-			$	-			$	465,917
Inter-segment revenue			79				3				(2	)			10				-				(90	)			-
Total revenue		$	193,980			$	156,950			$	96,723			$	18,354			$	-			$	(90	)		$	465,917
Gross margin, from external customers		$	81,164			$	54,553			$	23,379			$	17,569			$	-			$	-			$	176,665
Inter-segment gross margin			69				(56	)			(19	)			7				-				(1	)			-
Total gross margin		$	81,233			$	54,497			$	23,360			$	17,576			$	-			$	(1	)		$	176,665
Business reorganization and integration expenses		$	747			$	-			$	-			$	-			$	-			$	-			$	747
EBITDA (loss) (a)		$	4,910			$	4,077			$	781			$	1,745			$	(1,326	)		$	-			$	10,187
Depreciation and amortization			887				1,384				502				128				312				-				3,213
Interest income (expense), net			1				(318	)			(2	)			7				(269	)			-				(581	)
Income (loss) from continuing operations before income taxes		$	4,024			$	2,375			$	277			$	1,624			$	(1,907	)		$	-			$	6,393

	Hudson			Hudson			Hudson			Hudson						Inter-segment
	Europe			ANZ			Americas			Asia			Corporate			elimination			Total
For The Six Months Ended June 30,  2010
Revenue, from external customers	$	157,372		$	122,071		$	80,325		$	15,319		$	-		$	-		$	375,087
Inter-segment revenue		25			-			-			5			-			(30	)		-
Total revenue	$	157,397		$	122,071		$	80,325		$	15,324		$	-		$	(30	)	$	375,087
Gross margin, from external customers	$	67,074		$	39,499		$	19,331		$	14,753		$	-		$	-		$	140,657
Inter-segment gross margin		43			(26	)		(10	)		(7	)		-			-			-
Total gross margin	$	67,117		$	39,473		$	19,321		$	14,746		$	-		$	-		$	140,657
Business reorganization and integration expenses (recovery)	$	537		$	(116	)	$	243		$	-		$	-		$	-		$	664
EBITDA (loss) (a)	$	2,901		$	1,617		$	(1,232	)	$	1,907		$	(3,442	)	$	-		$	1,751
Depreciation and amortization		1,408			1,116			1,572			300			76			-			4,472
Interest (expense) income, net		(28	)		42			(4	)		1			(486	)		-			(475	)
Income (loss) from continuing operations before income taxes	$	1,465		$	543		$	(2,808	)	$	1,608		$	(4,004	)	$	-		$	(3,196	)

(a) 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 which 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				United		Continental		Other		Other
	Kingdom		Australia		States		Europe		Asia		Americas		Total
For The Three Months Ended June 30, 2011
Revenue (b)	$	67,683	$	74,523	$	50,444	$	32,087	$	22,173	$	468	$	247,378
For The Three Months Ended June 30, 2010
Revenue (b)	$	54,632	$	56,155	$	40,597	$	25,582	$	17,781	$	222	$	194,969
For The Six Months Ended June 30,  2011
Revenue (b)	$	131,483	$	136,248	$	95,807	$	61,612	$	39,849	$	918	$	465,917
For The Six Months Ended June 30,  2010
Revenue (b)	$	104,236	$	106,159	$	79,923	$	52,246	$	32,121	$	402	$	375,087
As of  June 30, 2011
Long-lived assets, net of accumulated depreciation and amortization (c)	$	2,817	$	6,142	$	4,685	$	1,808	$	3,879	$	-	$	19,331
Net assets	$	29,942	$	27,121	$	18,220	$	14,367	$	12,914	$	344	$	102,908
As of  June 30, 2010
Long-lived assets, net of accumulated depreciation and amortization (c)	$	3,223	$	5,015	$	4,980	$	1,186	$	3,447	$	-	$	17,851
Net assets	$	23,913	$	21,373	$	15,093	$	17,239	$	7,760	$	539	$	85,917

 

(b)	Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.
(c)	Comprised of property and equipment and intangibles. Corporate assets are included in the United States.

Hudson ANZ Matters

During January 2011, significant rainfall caused widespread flooding throughout much of Queensland, Australia. On February 22, 2011, a major earthquake caused severe damage in Christchurch, New Zealand. The Company incurred losses related to these events primarily for business interruption and property damage. The Company maintains insurance for such matters and recorded $303 for estimated insurance recoveries under the caption“Selling, general and administrative expense” in the accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2011. The Company continues to assess its losses and the related insurance coverage, and the Company adjusts its assessments as necessary in accordance with ASC 225-30, “Business Interruption Insurance.