SEGMENT AND GEOGRAPHIC DATA

9 Months Ended

Sep. 30, 2011

SEGMENT AND GEOGRAPHIC DATA

NOTE 15 – 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.

															Inter-
	Hudson		Hudson			Hudson			Hudson						segment
	Europe		ANZ			Americas			Asia			Corporate			elimination			Total
For The Three Months Ended September 30, 2011
Revenue, from external customers	$	96,753	$	90,437		$	47,691		$	10,200		$	-		$	-		$	245,081
Inter-segment revenue		24		(4	)		-			-			-			(20	)		-
Total revenue	$	96,777	$	90,433		$	47,691		$	10,200		$	-		$	(20	)	$	245,081
Gross margin, from external customers	$	38,129	$	31,439		$	13,662		$	9,762		$	-		$	-		$	92,992
Inter-segment gross margin		37		(31	)		(2	)		(4	)		-			-			-
Total gross margin	$	38,166	$	31,408		$	13,660		$	9,758		$	-		$	-		$	92,992
Business reorganization and integration expenses (recovery)	$	-	$	-		$	-		$	-		$	-		$	-		$	-
EBITDA (loss) (a)	$	2,020	$	3,934		$	1,459		$	1,289		$	(1,253	)	$	-		$	7,449
Depreciation and amortization		356		705			267			72			137			-			1,537
Interest income (expense), net		15		(211	)		(12	)		2			(122	)		-			(328	)
Income (loss) from continuing operations before income taxes		1,679		3,018			1,180			1,219			(1,512	)		-			5,584
As of  September 30, 2011
Accounts receivable, net	$	61,442	$	48,431		$	33,270		$	8,374		$	-		$	-		$	151,517
Long-lived assets, net of accumulated depreciation and amortization	$	4,918	$	6,420		$	2,574		$	2,877		$	2,540		$	-		$	19,329
Total assets	$	89,746	$	66,243		$	38,558		$	19,522		$	6,118		$	-		$	220,187

															Inter-
	Hudson			Hudson			Hudson			Hudson					segment
	Europe			ANZ			Americas			Asia		Corporate			elimination			Total
For The Three Months Ended September 30, 2010
Revenue, from external customers	$	80,503		$	72,974		$	37,839		$	9,078	$	-		$	-		$	200,394
Inter-segment revenue		38			1			(3	)		12		-			(48	)		-
Total revenue	$	80,541		$	72,975		$	37,836		$	9,090	$	-		$	(48	)	$	200,394
Gross margin, from external customers	$	32,647		$	24,259		$	9,311		$	8,774	$	-		$	-		$	74,991
Inter-segment gross margin		16			(15	)		(5	)		4		-			-			-
Total gross margin	$	32,663		$	24,244		$	9,306		$	8,778	$	-		$	-		$	74,991
Business reorganization and integration expenses (recovery)	$	-		$	-		$	41		$	-	$	-		$	-		$	41
EBITDA (loss) (a)	$	(2,128	)	$	1,376		$	532		$	1,169	$	244		$	-		$	1,193
Depreciation and amortization		769			647			433			94		38			-			1,981
Interest (expense) income , net		-			43			(3	)		1		(538	)		-			(497	)
Income (loss) from continuing operations before income taxes	$	(2,897	)	$	772		$	96		$	1,076	$	(332	)	$	-		$	(1,285	)
As of  September 30, 2010
Accounts receivable, net	$	58,159		$	37,835		$	25,505		$	7,617	$	-		$	-		$	129,116
Long-lived assets, net of accumulated depreciation and amortization	$	4,927		$	6,673		$	1,502		$	2,130	$	2,361		$	-		$	17,593
Total assets	$	89,483		$	57,217		$	30,716		$	16,654	$	20,018		$	-		$	214,088

														Inter-
	Hudson		Hudson			Hudson			Hudson					segment
	Europe		ANZ			Americas			Asia		Corporate			elimination			Total
For The Nine Months Ended September 30,  2011
Revenue, from external customers	$	290,656	$	247,383		$	144,415		$	28,544	$	-		$	-		$	710,998
Inter-segment revenue		102		-			(2	)		10		-			(110	)		-
Total revenue	$	290,758	$	247,383		$	144,413		$	28,554	$	-		$	(110	)	$	710,998
Gross margin, from external customers	$	119,294	$	85,992		$	37,040		$	27,331	$	-		$	-		$	269,657
Inter-segment gross margin		106		(87	)		(21	)		2		-			-			-
Total gross margin	$	119,400	$	85,905		$	37,019		$	27,333	$	-		$	-		$	269,657
Business reorganization and integration expenses (recovery)	$	747	$	-		$	-		$	-	$	-		$	-		$	747
EBITDA (loss) (a)	$	6,930	$	8,011		$	2,242		$	3,034	$	(2,580	)	$	-		$	17,637
Depreciation and amortization		1,243		2,089			770			200		448			-			4,750
Interest income (expense), net		15		(530	)		(14	)		9		(390	)		-			(910	)
Income (loss) from continuing operations before income taxes	$	5,702	$	5,392		$	1,458		$	2,843	$	(3,418	)	$	-		$	11,977

																Inter-
	Hudson			Hudson			Hudson			Hudson						segment
	Europe			ANZ			Americas			Asia			Corporate			elimination			Total
For The Nine Months Ended September 30,  2010
Revenue, from external customers	$	237,875		$	195,045		$	118,165		$	24,396		$	-		$	-		$	575,481
Inter-segment revenue		73			1			(4	)		18			-			(88	)		-
Total revenue	$	237,948		$	195,046		$	118,161		$	24,414		$	-		$	(88	)	$	575,481
Gross margin, from external customers	$	99,722		$	63,758		$	28,643		$	23,525		$	-		$	-		$	215,648
Inter-segment gross margin		58			(40	)		(7	)		(1	)		-			(10	)		-
Total gross margin	$	99,780		$	63,718		$	28,636		$	23,524		$	-		$	(10	)	$	215,648
Business reorganization and integration expenses (recovery)	$	536		$	(116	)	$	285		$	-		$	-		$	-		$	705
EBITDA (loss) (a)	$	771		$	2,994		$	(699	)	$	3,076		$	(3,196	)	$	-		$	2,946
Depreciation and amortization		2,176			1,764			2,005			394			114			-			6,453
Interest (expense) income, net		(27	)		85			(7	)		2			(1,025	)		-			(972	)
Income (loss) from continuing operations before income taxes	$	(1,432	)	$	1,315		$	(2,711	)	$	2,684		$	(4,335	)	$	-		$	(4,479	)

(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.

	United				United		Continental		Other		Other
Information by geographic region	Kingdom		Australia		States		Europe		Asia		Americas		Total
For The Three Months Ended September 30, 2011
Revenue (b)	$	67,890	$	76,882	$	46,952	$	28,368	$	24,250	$	739	$	245,081
For The Three Months Ended September 30, 2010
Revenue (b)	$	57,274	$	62,604	$	37,548	$	22,702	$	19,975	$	291	$	200,394
For The Nine Months Ended September 30,  2011
Revenue (b)	$	199,373	$	213,130	$	142,759	$	89,981	$	64,099	$	1,656	$	710,998
For The Nine Months Ended September 30,  2010
Revenue (b)	$	161,509	$	168,762	$	117,470	$	74,948	$	52,097	$	695	$	575,481
As of  September 30, 2011
Long-lived assets, net of accumulated depreciation and amortization (c)	$	3,181	$	5,406	$	5,122	$	1,724	$	3,896	$	0	$	19,329
Net assets	$	31,099	$	27,357	$	16,255	$	12,490	$	14,376	$	413	$	101,990
As of  September 30, 2010
Long-lived assets, net of accumulated depreciation and amortization (c)	$	2,991	$	5,395	$	3,716	$	2,071	$	3,420	$	0	$	17,593
Net assets	$	28,555	$	22,952	$	16,288	$	12,709	$	9,781	$	604	$	90,889

(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 $500 for estimated insurance recoveries under the caption “Selling, general and administrative expense” in the accompanying Condensed Consolidated Statement of Operations for the nine months ended September 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.