Korn/Ferry Recruits Higher Revenue: Fool by Numbers

On June 6, Korn/Ferry (NYSE: KFY  ) , an executive search company, released earnings for the fourth quarter ended April 30.

• Revenue increased by 24.1% because of higher average fees across all segments.
  
  
• Cash, cash equivalents, and marketable securities increased 16.6% to $324.3 million, primarily because of improved operating cash flows.
  
  
• Looking ahead, analysts estimate first-quarter fee revenue of $176 million to $185 million, and diluted EPS of $0.34 to $0.36.
  
  
• Korn/Ferry carries a four-star rating (out of five) in Motley Fool CAPS, while major competitor Heidrick & Struggles International   (Nasdaq: HSII  ) carries a three-star rating.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q4 2007	Q4 2006	Change
Sales	$189.8	$152.9	24.1%
Net Profit	$13.5	$20.3	(33.3%)
EPS	$0.30	$0.45	(33.3%)
Diluted Shares	47.3	47.2	0.1%

Get back to basics with the income statement.

Margin Checkup

	Q4 2007	Q4 2006	Change*
	10.2%	13.5%	(3.3)
	7.1%	13.3%	(6.1)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q4 2007	Q4 2006	Change
Cash + ST Invest.	$324.3	$278.2	16.6%
Accounts Rec.	$107.8	$87.3	23.4%

Liabilities	Q4 2007	Q4 2006	Change
Accounts Payable	$10.4	$9.7	6.7%
Long-Term Debt	$0.0	$45.1	(100.0%)

The balance sheet reflects the company's health.  

Cash Flow Highlights
Korn/Ferry kept its cash flow data to itself, alas.

Free cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.