SEGMENT AND GEOGRAPHIC DATA

3 Months Ended

Mar. 31, 2012

SEGMENT AND GEOGRAPHIC DATA

NOTE 15 – SEGMENT AND GEOGRAPHIC DATA

Segment Reporting

In the fourth quarter of 2011, the Company reorganized its leadership team to align the Company’s operations with its business strategy to run its global operations in three regions. As a result, the Company revised its reportable segments by aggregating the segments of Hudson Australia New Zealand and Hudson Asia into one segment, Hudson Asia Pacific. The Company has reclassified information for the three months ended March 31, 2011 to reflect this change to the segment reporting in accordance with the requirements of ASC 280-10-50-1 to 9 “Operating Segments” and ASC 280-10-50-10 “Reportable Segments.”

The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated 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 and certain expenses 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 generally accepted accounting principles. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended March 31, 2012
Revenue, from external customers	$	45,170		$	74,263		$	81,157		$	-		$	-		$	200,590
Inter-segment revenue		-			13			18			-			(31	)		-
Total revenue	$	45,170		$	74,276		$	81,175		$	-		$	(31	)	$	200,590
Gross margin, from external customers	$	11,831		$	29,313		$	32,064		$	-		$	-		$	73,208
Inter-segment gross margin		(3	)		(4	)		7			-			-			-
Total gross margin	$	11,828		$	29,309		$	32,071		$	-		$	-		$	73,208
Business reorganization expenses (recovery)	$	20		$	67		$	720		$	133		$	-		$	940
EBITDA (loss) (a)	$	(491	)	$	8		$	(1,087	)	$	(631	)	$	-		$	(2,201	)
Depreciation and amortization		319			694			363			129			-			1,505
Intercompany interest income (expense), net		-			(1,746	)		(108	)		1,854			-			-
Interest income (expense), net		(19	)		(65	)		19			(96	)		-			(161	)
Income (loss) from continuing operations before income taxes	$	(829	)	$	(2,497	)	$	(1,539	)	$	998		$	-		$	(3,867	)
As of  March 31, 2012
Accounts receivable, net	$	31,654		$	45,098		$	55,815		$	-		$	-		$	132,567
Long-lived assets, net of accumulated depreciation and amortization	$	2,478		$	10,389		$	4,902		$	2,406		$	-		$	20,175
Total assets	$	36,997		$	75,506		$	84,660		$	8,614		$	-		$	205,777

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended March 31, 2011
Revenue, from external customers	$	45,812		$	79,017		$	93,710		$	-		$	-		$	218,539
Inter-segment revenue		(2	)		5			9			-			(12	)		-
Total revenue	$	45,810		$	79,022		$	93,719		$	-		$	(12	)	$	218,539
Gross margin, from external customers	$	10,356		$	31,905		$	38,937		$	-		$	-		$	81,198
Inter-segment gross margin		(3	)		(2	)		4			-			1			-
Total gross margin	$	10,353		$	31,903		$	38,941		$	-		$	1		$	81,198
Business reorganization expenses (recovery)	$	-		$	-		$	351		$	-		$	-		$	351
EBITDA (loss) (a)	$	(379	)	$	2,014		$	2,175		$	(1,284	)	$	-		$	2,526
Depreciation and amortization		322			720			466			68			-			1,576
Intercompany interest income (expense), net		-			(1,792	)		(109	)		1,901			-			-
Interest (expense) income , net		(1	)		(104	)		6			(107	)		-			(206	)
Income (loss) from continuing operations before income taxes	$	(702	)	$	(602	)	$	1,606		$	442		$	-		$	744
As of  March 31, 2011
Accounts receivable, net	$	28,608		$	50,341		$	66,556		$	-		$	-		$	145,505
Long-lived assets, net of accumulated depreciation and amortization	$	1,537		$	9,935		$	4,736		$	2,141		$	-		$	18,349
Total assets	$	32,733		$	79,616		$	100,384		$	9,665		$	-		$	222,398

(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.

Geographic Data Reporting

A summary of revenues for the three months ended March 31, 2012 and 2001 and long-lived assets and net assets by geographic area as of March 31, 2012 and 2001 were as follows: 

Information by geographic region	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas		Total
For The Three Months Ended March 31, 2012
Revenue (b)	$	52,007	$	57,644	$	44,636	$	29,041	$	16,728	$	534	$	200,590
For The Three Months Ended March 31, 2011
Revenue (b)	$	63,800	$	61,725	$	45,363	$	29,526	$	17,676	$	449	$	218,539
As of  March 31, 2012
Long-lived assets, net of accumulated depreciation and amortization (c)	$	3,183	$	6,030	$	4,833	$	1,707	$	4,364	$	58	$	20,175
Net assets	$	30,112	$	29,730	$	21,558	$	10,634	$	14,554	$	536	$	107,124
As of  March 31, 2011
Long-lived assets, net of accumulated depreciation and amortization (c)	$	2,907	$	6,381	$	3,686	$	1,814	$	3,561	$	-	$	18,349
Net assets	$	31,964	$	23,091	$	17,452	$	11,302	$	11,890	$	552	$	96,251

(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.