Q2 2020 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry second quarter fiscal year 2020 conference call. At this time all participants are in a listen only mode. Following their prepared remarks, we will conduct a question and answer session. As a reminder, this conference call is being recorded for.
A replay purposes. We have also made available on the Investor Relations section of our web site at Korn Ferry Dot Com a copy of the financial presentation that we will be reviewing with you today.
Before I turn the call over to our host Mr., Gary Berntsen, Let me first read a cautionary statement of to the Investor certain statements made on the call today's such as those relating to the future performance plans goals constitute forward looking statements within the meaning of a private.
Securities Litigation Reform Act of 1995, although the company believes the expectations reflected in such forward looking statements are based on reasonable assumptions investors are cautioned not to place undue reliance on such statements XL results in future periods may differ materially from those currently expected or desired because.
The number of risks and uncertainties, which are beyond the company's control.
All information concerning sucks risks and uncertainties can be found in the release related this presentation.
And in the periodic reports filed the company with a.
SEC, including the company's annual report for fiscal year 2019 also some other comments today may reference non-GAAP financial measures such as constant currency amounts EBITDA and adjusted EBITDA.
Additional information concerning these measures including reconciliations.
To the most directly comparable GAAP financial measure is contained in the financial presentation and earnings release relating to this call both of which are posted in the Investor Relations section of the company's website at Www Dot Korn ferry Dot com with that I will turn the call over to Mr. Berlin Sun. Please go.
Mr Burner.
Okay. Yeah me good afternoon, everybody in seasons greetings. Thank you for joining US clearly this has been an eventful year for Korn ferry.
In November 14th about a month ago, we celebrated our fiftyth anniversary and it really kept a an unprecedented moment in our history is the preeminent global consulting firm.
Fee revenue in the quarter was up 1% at constant currency.
We had a adjusted EBITDA margin of almost 16% and in the quarter. We continue to have a long term balanced approach to capital deployment, we repurchased about $50 million or stock during the quarter. In addition to our normal quarterly dividend on November 1st we completed the acquisition.
And with Miller Heiman strategy execution, and achieve Bora and you know historically, we've only focused on a 10% subs.
The 300 billion dollar market for learning and development and what these acquisitions, we've added professional development upscale capabilities that combined with our current offerings and leadership development dealt that will leverage our digital platform tapping a much bigger opportunity in learning development out.
Sourcing and the companies that have joined US now they trained more than 210000 people a year as I think about this calendar year in the past few years, you know the investments that we've made in our business in operations, including folding the for.
From under one brand with one unified team to handle all of our clients names. So it's really set the foundation to accelerate our growth in the years ahead in the in the foundation for Us.
On the foundation of our go forward strategy is around our IP arguably we have the most comprehensive organizational and people data bases in the world. We rewards data on more than 20 million professionals more than 20000 companies. We've conducted almost 70 million assessed.
Yes, we have organizational benchmark data on 12000 companies or we have 3900 success profiles 330000 job titles.
Yeah, We've got rich IP and you know certainly last anomalies every business, our we put somebody in a job every every three minutes and so you know building on this IP and the investments we've made our growth levers going forward are really going to be.
Right around six key activities one is to continue to extend and reposition the Korn ferry brand a brand that synonymous with enabling people and organizations to exceed their potential it's about creating opportunities for individuals and four companies.
Secondly, we're going to continue the path that weve very systematically gone down around a pragmatic programatic go to market strategy, we've made investments around.
Around account planning.
And account management talent in at the end of at quarter end of our second quarter, we had more than 300 marquee and regional accounts and those represented about 30% of the revenue in our law our long term goal.
Just to have those represent 40, 45% of a portfolio up three we've got to create scalable repeatable outcome based solutions.
Fourth we have to monetize this a fabulous IP that we have and that's the whole thinking behind.
And a new business that we're going to be breaking out separately. This this quarter the third quarter called Kipp digital.
We're going to continue to pursue strategic acquisitions, and finally, we will be of the premier career destination.
In the consulting world and so the integration of these acquisitions is well underway. We expect the revenue from these acquisitions will add another hundred $20 million to $130 million of revenue and combined with what was our legacy products business initially.
Creates a 400 million dollar Korn ferry digital business.
We would expect that the adjusted EBITDA margin of the Korn Ferry digital business after synergies the bubble talking about will be 27% to 30% and as I said in the current quarter in our third quarter, we're going to begin breaking out digital and their segment reporting.
And our synergies.
We expect that this will contribute about $100 million.
Of EBITDA.
Approximately a third of the company's annualized EBITDA run rate or approximately 19% of the company's annualized run rate net income and that's obviously very meaningful because that revenue stream is durable VIP changes a lot of People's lives.
Yes.
And it's really about knowledge transfer as we look ahead I think one word sums up the current economic environment.
That would be confused.
Part of this results from the socio political climate, whether its social unrest or in a quality elections Brexit trade skirmishes, we can go on and off but the important thing is is what do you do you know what do you do about it and how do you position your organization and I think we've been.
Very transparent over the last few quarters and we've taken a number of stops.
That we feel enable us to seize opportunities when the number one we introduce this regional account program to we've continued driving the marquee account program and the aggressive recruiting of account leaders Weve talked about how we've been moderating head count.
For some time, we've also shared with you our view around professional search and moving them more towards knowledge based assignments.
M&A that you know our track record there talked about the recent acquisitions, we completed and finally.
Weve laid plans here to monetize.
The Korn ferry digital and technology platform, though that we're building and you know in markets like these.
It's great companies that make their best moves and we indeed, a history of seeking opportunity in more turbulent times and as such we have a ball.
We have evolved into a broad based consulting firm in our offerings span a way more than talent acquisition.
Two organizational advisory services learning and development assessments succession rewards and benefits and the more so today.
Corp. areas are much more diversified balance from.
Based on the year to date quarter results Court ordered two year to date results and you expected topline contribution from the recent learning development acquisitions that we just talked about we'd have about almost two thirds of our revenue.
Outside of our historical executive search business.
That's right and that includes almost a billion dollars in revenue from poor solution areas.
Work strategy assessment succession learning development and rewards and benefit so I believe that this this diversification strategy is absolutely taking hold and as we enter.
Another new year, we're going to continue our strategic summit commitment to build the preeminent global organizational consultants, helping our clients synchronized strategy operations in their talent to drive superior performance that that's what it's all about for us so with that.
Right here by with Bob and Brexit vote, Chuck and so Bob I'll turn over to you great. Thanks, Gary and good afternoon, everyone.
Financial results for the second quarter fiscal 20 continue to highlight the strength of our business model and the impact.
Diverse mix of products and solutions that we have really contributes to the growing to durability about revenue base. It was Gary indicated we're operating in a in a confused economic environment driven by a whole host the factors, which really accentuates the importance of our diversification strategy.
Our consolidated fee revenue in the second quarter was 492.4 million, which was down less than 1% year over year at actual currency and up about 1% measured at constant currency from a solution perspective at constant currency, our PEO and pro search.
Continue to accelerate with fee revenue growth of 20%, while our advisory segment was down 1% Exec search was down 3%.
We continue to diligently manage our cost base, which resulted in adjusted EBITDA margin I'm, sorry, adjusted EBITDA of approximately $78 million and adjusted EBITDA margin of 15.9%.
Turning to new business trends globally, new business in the second quarter for all of Korn Ferry was up about 11% over last year's second quarter demand for our PEO and professional services continues to be strong total total new business awards of approximately $150 million.
In the quarter, consisting of $32 million of new professional search assignments and $118 million of longer term ARPO contracts now as the 118 of our appeal contracts approximately $49 million are with new clients are what we call new logos.
And approximately 69 million of extensions and renewals with current clients.
Second quarter, our fuel awards were broad based geographically with strong growth in the U.S the UK in China.
At constant currency, our advisory new business was up about 1% with particular strength in North America, which was up 5% year over year and eggs are exact search new business was down about 5% year over year.
At the end of the second quarter total cash and marketable securities were $609 million, it's up about 86 million compared to the second quarter fiscal 19.
Excluding amounts reserve for deferred comp arrangements and for accrued bonuses are investable cash balance at the end of the second quarter was about 346 million, that's up about 102 million year over year.
We also had outstanding debt at the end of the second quarter of about 273 million should be noted at the second quarter ending cash balance in outstanding debt balance both included incremental $50 million drawn on our revolver to finance a portion of the recent acquisitions.
Thank you spoke about.
In addition to our recent acquisition investments and consistent with our philosophy to maintain a balanced approach to capital allocation.
Fytwenty through the second quarter, including activity to date.
For the third quarter, we have now repurchased in open market transactions about 1.74 million shares using total cash of approximately 66 million.
Currently we have about 184 million remaining on our authorization for share repurchases in less than December 4th the board declared a 10 cents per share dividend payable on January 15 2020.
Finally, adjusted diluted earnings per share in the second quarter 81 cents down approximately four cents compared to the adjusted fully diluted earnings per share in the second quarter fiscal 19, and it's mainly driven by higher effective tax rate in this year second fiscal quarter, which was about 26.8.
For say compared to 23.8 per se in the second quarter fiscal 19.
I'm now going to turn the call over to Greg who will review our operating segments in a little bit more detail. Okay. Thanks, Bob growth for ARPU on professional search continued at a high double digit pace in the second quarter fiscal 2000, and the second quarter RFP on professional search generated $94.8 million a fee revenue, which was up 20% year over year MEGTEC.
Constant currency all geographic regions grew in the second quarter as Bob previously mentioned in the second quarter Arfield professional search new business was strong the second highest quarter ever.
Earnings in profitability for RPL professional search also grew in the second quarter EBITDA was $16.1 million up 2.9 million or 22% year over year, and EBITDA margin improved year over year to 17%.
Now turning to advisory and the second quarter Global Advisory fee revenue was $209.8 million, which was down 1% year over year measured at constant currency in North American Europe Advisory fee revenue grew modestly year over year at constant currency, but was down at both Asia Pacific in Latin America.
In the second quarter EBITDA for advisory was $36.9 million, which was 17.6% margin.
Finally for executive search global fee revenue in the second quarter fiscal 2000 was $187.8 million, which compared year over year as measured at constant currency was down approximately 3%. The total number of dedicated executive search consultants worldwide at the end of the second quarter.
Was 585 up 29 year over year end up 16 sequentially.
Annualized fee revenue production per consultant in the second quarter was $1.3 million and the number of new search assignments opened worldwide. The second quarter was 1719, which was down approximately 2% year over year.
EBITDA for executive search and the second quarter was $44 million with an EBITDA margin of 23.4%.
Now to turn the call back over to Bob to discuss the outlook for the third quarter fiscal 2000, great. Thanks, Greg is Gary talked about starting in fiscal 2000, Q3, we're going to be modifying our segment reporting will be breaking what we call advisory today into two separate reporting segments.
You have consulting NKF digital.
The new Kaye of digital segment will include our legacy products financial results.
Well as the financial results of our recently acquired companies.
Miller Heiman group achieved form in strategy execution.
Over the past 18 months, we've invested into our digital business to digitize, an harmonize the structure of our IP content and data and we are building it technology platform for the efficient delivery of these assets directly to an end consumer or indirectly through a consulting engagement now these investment.
Yes, when combined with the investments made in the recent acquisitions, they really provided us with the opportunity to step back and Relook at the advisory business is split into two new reporting segments.
Further as we recently announced we implemented a restructuring plan to rationalize the company's crossed structure to realize the efficiencies and operational these investments have enabled us to position us to realize.
Now the plan will impact the whole of our existing advisory reporting segment and it includes the elimination of redundant positions in the consolidation of office space.
As we previously announced the costs associated with these actions.
Estimated to range from $20 million to $26 million, primarily paid in cash and we expect to recognize these charges beginning in Q3 of them Fytwenty and expect to conclude the actions early in Q1 of that fly 21, with approximately 18 to 22 million dollar.
As of the charges recognized in Q3 of F. White 20.
The annual cost savings in corn KF digital associated with these actions is estimated to be $25 million to $30 million as Gary indicated earlier at the conclusion of the plan. The Newquay of digital segment is expected to have a run rate adjusted EBITDA margin of 27.
30% in the run rate operating margin of 23% to 26%.
Now from an overall Korn ferry perspective, the acquisitions in the totality of the restructuring actions are expected to contribute $35 million to $40 million incremental annual EBITDA, which translates to about $20 million to $25 million of incremental annual net income.
In about 40 to 45 cents of incremental annual EPS.
And our globally and consolidation our backlog of undelivered work entering the fiscal third quarter, which is typically a seasonally slower quarter for us is pretty solid for the month of October Korn Ferry consolidated new business was up 10% at constant currency.
Over in November new business for the whole of Korn ferry was down about 5% constant currency.
Considering these factors assuming worldwide economic conditions financial markets foreign exchange rates.
Stay as they are we expect our consolidated fee revenue in the third quarter of fiscal 20 to range from $490 million to $510 million now of that amount, we expect about 30 million to be coming from the recent acquisitions.
Additionally, we expect our consolidated dilutive diluted earnings per share.
Adjusted to exclude all the restructuring integration and acquisition charges to range from 70 to 78 cents.
And finally, our diluted earnings per share for Q3 of White 20 measured on a USGIF are expected to range from 35 cents to 52 cents per share.
This concludes our prepared remarks.
To answer any questions you have.
Ladies and gentlemen, if he wants to ask a question. Please press one than zero on your telephone they're using a speakerphone. Please pick up the handset before pressing the numbers. Once again, if you have a question that you May press. One then zero at this time.
My first question is from Kevin Mcveigh Credit Credit Suisse go ahead.
Great. Thanks, so much they thank you folks a lot of really really good detail.
Gary.
Given the digital initiatives.
If you could give us a sense of how that impacts the core business and I guess, what I mean is.
A lot of strategies to de lever kind of the digital strategy to kind of to reinvigorate or kind in here.
Reinvigorate enhance kind of the core.
Revenue stream in the business in this case to search business.
Any sense. So you know the growth prospects for that business and I guess I mean longer term, obviously independent it kind of where we are given some of the macro uncertainty.
Well when you when you look at the trouble with any consulting business is a question of scale and.
You know you it's hard to scale people and what we are doing here.
Is creating a foundation, where we can scale IP and for any company for any CEO .
We would say that organizational performance is based on on five things leadership strategy purpose accountability and capability the that the people equation than the organizational equation is absolutely paramount to.
Ceos success, and so we've got IP.
That can help companies identify.
And assess the right kind of people we have IP. They can use to design their organization. We have IP that can be used for learning and development and we have IP that can be used for figuring out how to compensate a workforce and so I as I said in my remarks and.
We do believe that its arguably the most comprehensive organizational people database.
In the World and then so the question for US is how can we change more people's lives, how can we create greater impact.
How can we do knowledge transfer because not every company wants armies of consultants around so we.
We've got IP that we think we can use for knowledge transfer to help.
Organization in its people exceed their potential so I look at it.
From that lands and from the lens of scale and initially we're going to start out here with a 400 million dollar business, though that will throw off initially you know almost 100 million of EBITDA and that that business is more durable.
In many many respects the.
How it impacts the the search business is I fundamentally believe.
That is a very precious business that we have and I talked a lot about IP, but the fact that we put somebody in a job.
Every three minutes is powerful and people return or calls and so if we can give our company more reasons to dialogue with clients throughout the year I think you're going to create a much more powerful organization and I think it will.
Benefit the.
The search part of search part of the business.
But when you look at the market opportunity for us.
It is it's arguably to $300 billion and the executive search market is actually rather small I don't think it's any more than $558 billion.
It's very powerful.
But it's not the by any stretch the imagination, the big component of the market opportunity for us and so we've seen a demonstrated track record.
Consultants throughout the organization, referring engagements across solutions. So for example in this last quarter when we look at the consulting business.
Today.
22% of it came from search process.
I could go on and off so I think we have a track record of.
Delivering quality services and solutions.
Our client facing colleagues actually take advantage of.
And Kevin This is Bob I would just add one thing they love said.
Doing.
The other thing where I think search exec search business will will benefit in.
Be differentiated is it the intellectual property.
Gary discussed the data that we have it sits at the center the organization gets that into each of our solution areas, including six search and so to the extent that what we have is unique in different.
Zero community has the ability to take integrate that into their offering.
In go to market in a differentiated way versus our competitors.
Our next question is from Mark Macron from Baird. Please go ahead.
Good afternoon.
First on.
When we take a look at the ARPU and professional searcher, obviously doing tremendously well up here.
Scott like you're growing faster than the market can you talk a little bit about.
The key drivers.
You're seeing there and how much of the growth would you attribute to the market relative to your out execution relative to others. I think we're out executing I would say that Bob can add I would I say that it's a number one.
The one Korn ferry approach is work. This this last quarter it varies by quarter, but when you look at the referrals from say executive search just take that.
Lens for a second.
Into our PEO it was 35% into professional search it was 50%. So so number one that is that is absolutely working but but I think the but the biggest.
Differentiator is what Bob talked about which is the IP.
And I think that's where we've done a good job.
Integrating the IP holistically through the organization and so you know I would I would absolutely say IP I think we are then taking a one from approach then that the quality of the work that we're doing.
It's obviously phenomenal.
Because you just did this kind of growth, we're putting up here.
You know it's it is stellar let me there's just no other way to describe it yes in my codec I would echo of Gary just said if you think about our.
The IP at the center the organization I grew up in the public accounting environment, which is lines of business audit tax consulting.
The rich, but the IP for tax was unique attacks IP for auto to audit. So on ours is not ours is sort of ubiquitous across the whole of the organization. So everything that sits in the center fueled by box if you will be.
You know permeates Oliver lines of business and if you think about.
Our PEO offering they can bring into the offering successful profiles. They can bring into the offering interview questions. They can bring assessment protocol into their offering they can bring in pay data into their offering.
Other other folks can't do that and so I think thats why were winning.
Next question is from the line of George Tong with Goldman Sachs. Please go ahead.
Hi, Thanks, good morning, good afternoon.
Advisory business, the splitting into key of consulting in Kipp digital how would you distinguish the near and intermediate term growth prospects. So both of those businesses separately and what initiatives do you have to accelerate the growth of key of consulting.
The.
The KF consulting business the real opportunity there is in the United States.
Let me just provide a little bit of context. The just we've added business 50 years and the search business in North America call. It roughly.
$400 million a year the consulting business that we have than it's been.
So.
A lot less than 50 years and more like five is already 200 million, but if you just thank.
You've got this the search business, it's 400, and you think about the market opportunity there.
Even though the enormous market opportunity in consulting.
Around organizational strategy around change management around M&A that is multiples and so I look at Das and say number one that is very tangible very practical.
And not that the entire world is an important because it is but in the last not the last acquisition, but the acquisition we did three years ago.
With the Hay group, 80% of the assets were outside the U.S.
So that's that's really why I'm, highlighting the United States because it is a big market and the business right. Now there is a couple of hundred million dollars annually, what we can do to accelerate that market.
Is to number one be relentless around these marchionne regional accounts be.
Put put account teams against the proactive in selecting.
And having a long game in mind.
Secondly, we have to bring in account leaders.
Third we have to aggressively recruit.
And promote consultants.
In to that organization and I think we also need to move the business over time to bigger engagements because.
Where you're going is one thing, but you also have to look at where you've come from and where we came from in that business through inorganic and organic means a lot of it has been anchored around.
Individual transactions smaller ticket sizes around assessment succession.
Leadership development and so we have to move that business.
Towards.
Bigger more impactful engagements sizable engagements that have to be anchored around business outcomes, which one where we're having quite a bit of success is M&A. Another one is culture change.
So so those are the those are the things we have to do on the consulting business on the digital business.
You also have to recognize where we came from and we came from Buxton placements and we've got to go analog to digital so we're putting in the business. Bob can tell you the exact mounts product or five or 6 million Bucks a quarter ended the underlying platform and I think we have to continue.
New to do that because that will be the differentiator. Our our IP is world class, we know what separates grateful.
The other part of that is in the learning development outsourcing I think we can create a business much like we did with RP up around LDL learning development outsourcing and finally I'd say the other thing is that with that with a digital business.
A lot of the work that we've done up to this point has focused on.
The top 10% or so of a company that's not always true.
You know, it's more ensure that not well. The reality is you know there are many many many others in an organization and I think that through these last three acquisitions we've done.
We've got a real focus on scale.
And how can we create platforms where companies can license our IP to touch thousands of People's lives.
Our next question is from the line as Marc Riddick with Sidoti. Please go ahead.
Hi, good evening.
Good evening, we wanted to.
Good evening I wanted to touch on.
Now with the and we're certainly looking forward to.
Making this part of the reporting and having having access to it so that information going forward as you as you go through this part of the journey, but I wanted to sort of discussion where this puts you on your thoughts on M&A going forward does this and the prioritization that use that you currently have when you look at the overall company and.
Does this sort of.
Just sidelines for little while or how should we think about that going forward.
Well, we're never on the sidelines. The question is do we actually throw the ball and so we're very much always in the market.
And so what I can what I can ask I can't answer as whether we're actually going to pull the trigger on something.
Because at.
It depends on a whole host split, but clearly you've got an enormous market opportunity very fragmented market I don't think theres, one consultancy, that's solely focused on and organization.
Strategy and its people and how you synchronize that show you. When you look out you have to believe the car is going to continue to.
Not only grow organically, but has to make.
Meaningful investments and acquisitions so I.
We're always on the field, we're never on the sidelines.
I think this this integration here will be done.
Rather quickly.
We've already taken a number of steps, even though just closed.
November November 1st.
So I I'm not.
Concerned about our capability.
To digest.
So we're always on the field.
But we're also very very pragmatic and systematic about how we feel about this we're we're disciplined we're price discipline were culture discipline.
And we'll continue to that to me that way.
And we're also mindful that the capital housing.
And implied tops.
And we talked with the beating that cost of capital.
Yes, Mark says Bubba. So if you think about you to go back when we did the Hay group transaction December 15.
That one at the time, we were about $1 billion there half a billion. So was it was up almost kind of a big boy.
We digest that over say 18 months.
This transaction, obviously, we're close to 2 billion so 100.
$23 billion revenue.
We fully expect to be.
Integrated sort of beginning of next fiscal year, so much much quicker than what we saw the Hay group.
And we have a question coming from the line as Mark Marcon from Baird. Please go ahead.
All right.
Good afternoon can you talk a little bit more about Miller heiman and what it would it specifically we'll be adding when we think about the $120 million to $130 million in revenue what the margin profile is and if we could do to aggregate.
What what the contribution there is going to be relative to.
Some of the restructuring efforts that you're going to put in place.
In terms of what bad contribution would be.
Good cost a lot of.
To unpack there.
Let me let me.
Hopefully provide a little bit of contacts and Bob you can you can maybe talk about the margins and the like the we would expect based on.
The current environment as we see it today that we would.
Have a 400 million dollar a digital court for digital business. When you break that down about 100 million of it would be around rewards where companies license our data.
820 million would be around assessments assessment succession.
60 million would be around or strategy that they're licensing our IP to set up an organization spans and layers a job profiles all about the final piece is 120 million around learning development and that is.
Principally anchor around around the professional and below level.
And so the Miller heiman piece.
Comes in to that 120 million and Im not I don't I'm not going to break out the exact size of that yeah. Because it's just it's just too soon.
But it's it's certainly more than 50% of 120 million what it does for us is that in any kind of environment.
A CEO will always be looking.
Out there the way that they are solid and and what Miller Heiman gives for us.
Is rich IP.
And great people.
Around how accompany can drive growth and and turbulent times, it's actually even more important than when the wins behind your back. So it gives us the ability to do sales performance is also fits very very nicely with our.
Our business because we.
Place.
Manny.
Hundreds.
If not thousands of.
Sales professionals.
And so there is there's synergy there with parts of our talent acquisition business. So that's how I would set the context around the 400 million and we would expect.
After after we do the synergies that thought would essentially be today in today's environment run rate EBITDA of 100 million Bucks something like that Yes America I would I would also add I would encourage you not to look at it is sort of individual pieces.
Using an analogy issues when we did the.
Hey, good transaction when we integrate these businesses, we do it as quickly as possible and it's like creating a milkshake, which is once you have Glenn you can't pull apart right and I'll tell you.
12 over one am November Onest, Gary it blend.
We're working.
As hard as we can to not only to integrate the back office, but the integrate the go to market activities.
Folding these businesses into the one point ferry models, but we don't we don't even think about them as individual business.
Longer so I think you know if you step back what we bought probably mid single digit EBITDA margins and when we get through everything that we're doing as Gary indicated 27, a 30%.
EBITDA margins on the sort of the digital milkshake, if you will.
That's great and what about the PKF consulting the traditional consulting how should we think about that.
Yes, I think some of the actions, we're taking Merck impact that business and again when we get through all this you should be thinking about EBITDA margins in the state of 12% to 15% range for that business.
Great. Thank you.
Next question is from Marc Riddick with Sidoti. Please go ahead.
Hey, there again I did just wanted to ask a follow up as to what I didn't know what's been a fairly short period of time I was wondering if there was any feedback that you received from some of the marquee clients that that you deal with and what their receptivity was to where are your.
From the transaction and some of the opportunities that you see as far as a feedback received from them as well. Thank you yeah, we already secured a million and a half dollars deal actually a win together and again as Bob said, it's hard to.
If you focused on one.
You know again the other two companies that we bought how tremendous capability and tremendous people, particularly around professional development broad based professional development.
You know Miller heiman.
It's a brand that that is very very very well known as so we have gotten a positive.
Feedback not only actually from clients, but from many consultants in our own organization that have gone through Miller Heiman training and in fact, we're going to use it likely do if all of our IP.
On on on ourselves. So the feedback has been good and we have absolutely incorporated their teams.
Into the marquee and regional account program.
Our next question is from Mark Micron from Baird. Please go ahead.
Hey, Gary.
We've been through multiple cycles together you've got.
Tremendous.
You know perspective in terms of talking a global leader.
Around the globe from your perspective on where you're setting.
And obviously, there's lots of different opinions out there, but from where you're sitting.
I think things.
From a macro perspective feel.
The same better or worse today than they did say three months ago.
I think the ATP report.
On on the job market was more right than wrong.
And I think there is more cautious this now.
On the part of Ceos than there was three months ago and I'm, whether you put that on the December 12 election in Britain, where they put it on all the other things that are happening.
But I would say, there's there's certainly more caution today.
Then there was three months ago.
Thank you.
It appears there are no further questions in the queue right now Mr Burn in Sun.
Okay. Thank you for for any company.
Successful strategy implementation is about execution and that's about.
Getting the people on the organizational and cultural aspects ride and.
That's that's what we do were more than talent acquisition more than leadership development more than rewards, we focus on making change happen and we're going to make change happen in 2020. So.
Great holiday season, and we'll talk to you.
If not sooner in the new calendar year. Thank you very much bye bye.
Ladies and gentlemen, this conference call will be available for replay for one week starting today at 730 PM Eastern time running through December 12, ending at Midnight you May access the 18 T. executive playback service by dialing 866 207 104.
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<unk> Dot Korn ferry Dot com in the Investor Relations section.
That does conclude your conference for today you may now disconnect.
Thanks, Tony.
Thank you very much.
[noise].
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