GlobeNewswire Inc | Mar 11, 2021 08:30AM EST

March 11, 2021

OLD GREENWICH, Conn., March 11, 2021 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq: HSON), a leading global talent solutions company, announced today financial results for the fourth quarter and full year ended December31, 2020.

2020 Fourth Quarter Summary

-- Revenue of $27.3 million increased 7.4% from the fourth quarter of 2019, or 2.3% in constant currency.

-- Adjusted net revenue of $11.3 million increased 1.5% from the fourth quarter of 2019, or decreased 2.5% in constant currency.

-- Net income of $1.2 million, or $0.41 per basic and diluted share, versus net income of $1.5 million, or $0.48 per basic and diluted share, in the fourth quarter of 2019. Adjusted net income per diluted share (Non-GAAP measure)* decreased to $0.20 from adjusted net income per diluted share of $0.51 in the fourth quarter of 2019.

-- Adjusted EBITDA (Non-GAAP measure)* was $0.7 million, versus adjusted EBITDA of $0.9 million in the fourth quarter of 2019.

2020 Full-Year Summary

-- Revenue of $101.4 million increased 8.1% from 2019, or 7.6% in constant currency.

-- Adjusted net revenue of $39.1 million decreased 10.3% from 2019, or 10.6% in constant currency.

-- Net loss of $1.2 million, or $0.43 per basic and diluted share, compared to net loss of $1.0 million, or $0.30 per basic and diluted share, in 2019. Adjusted net loss per diluted share (Non-GAAP measure)* of $0.38 decreased from adjusted net income per diluted share of $0.04 in the prior year.

-- Adjusted EBITDA loss (Non-GAAP measure)* was $0.4 million, versus adjusted EBITDA of $0.5 million in 2019.

2020 was a uniquely challenging year for our clients and our business due to the impacts of the COVID-19 pandemic, said Jeff Eberwein, Chief Executive Officer at Hudson Global. However, we have begun to see activity levels rebound, especially in the life sciences and technology sectors, and we believe we are well positioned to return to growth alongside our clients in 2021.

* The Company provides Non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Constant currency, Adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such Non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.

Regional Highlights

Asia Pacific

Asia Pacific revenue of $20.0 million increased 5% and adjusted net revenue of $5.5 million decreased 8% in constant currency in the fourth quarter of 2020 compared to the same period in 2019. EBITDA was $1.0 million in the fourth quarter of 2020 compared to EBITDA of $1.1 million a year ago. Asia Pacific delivered adjusted EBITDA of $1.5 million in the fourth quarter of 2020 versus adjusted EBITDA of $1.2 million in the fourth quarter of 2019.

For full year 2020, Asia Pacific revenue of $75.6 million increased 23% and adjusted net revenue of $19.8 million decreased 7% in constant currency compared to 2019. The revenue increase in 2020 was due to having a full year of the significant MSP contract in Australia we started in the second quarter of 2019. EBITDA for full year 2020 was $2.9 million, compared to EBITDA of $2.2 million in 2019. Adjusted EBITDA for full year 2020 was $3.9 million up from $3.3 million in 2019.

Americas

In the fourth quarter of 2020, Americas revenue of $3.5 million increased 20% and adjusted net revenue of $3.2 million increased 16% in constant currency compared to the fourth quarter of 2019. These increases were attributable to the acquisition of Coit Group at the beginning of the fourth quarter of 2020. EBITDA was $0.7 million in the fourth quarter of 2020 up from breakeven EBITDA last year. Adjusted EBITDA loss was $0.1 million for the fourth quarter of 2020 compared to adjusted EBITDA of $0.2 million a year ago.

For full year 2020, Americas revenue of $10.9 million decreased 20% and adjusted net revenue of $9.6 million decreased 22% in constant currency from 2019. EBITDA loss was $1.0 million for full year 2020 compared to EBITDA of $0.1 million in 2019. Adjusted EBITDA loss was $1.4 million for full year 2020 compared to adjusted EBITDA of $0.6 million in 2019.

Europe

Europe revenue of $3.8 million decreased 20% and adjusted net revenue of $2.6 million decreased 9% in constant currency in the fourth quarter of 2020 compared to the fourth quarter of 2019. EBITDA was $0.2 million in the fourth quarter of 2020, flat versus a year ago. Adjusted EBITDA was $0.2 million in the fourth quarter of 2020 compared to $0.4 million a year ago.

For full year 2020, Europe revenue of $14.9 million decreased 21% and adjusted net revenue of $9.7 million decreased 6% in constant currency compared to 2019. EBITDA was $0.5 million for full year 2020 compared to $0.1 million in 2019. Adjusted EBITDA was $0.4 million for full year 2020 compared to adjusted EBITDA of $0.6 million in 2019.

Corporate Costs

The Company's corporate costs of $0.8 million and $3.3 million for the fourth quarter and year ended 2020 excluded $0.3 million and $0.8 million of non-recurring expenses, respectively. This compares to corporate costs of $0.9 million and $4.1 million for the fourth quarter and year ended 2019, which excluded $0.1 million and $1.1 million of non-recurring expenses, respectively.

Liquidity and Capital Resources

The Company ended the fourth quarter of 2020 with $26.2 million in cash, including $0.4 million in restricted cash. The Company used $0.1 million in cash flow from operations in the fourth quarter of 2020 compared to generating $2.7 million in the fourth quarter of 2019. For the full year, the company used $1.4 million in cash flow from operations compared to using $4.8 million a year ago.

Share Repurchase Program

Through 2019 and 2020, the Company reduced its share count by 16% and continues to view share repurchases as an attractive use of capital. Under its $10 million common stock share repurchase program, the Company has $1.7 million remaining.

NOL Carryforward

Hudson Global has $318 million of usable net operating losses (NOL) in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a rights agreement and charter amendment in place that limit beneficial ownership of Hudson Global common stock to 4.99%. Stockholders who wish to own more than 4.99% of Hudson Global common stock, or who already own more than 4.99% of Hudson Global common stock and wish to buy more, may only acquire additional shares with the Boards prior written approval.

COVID-19 Update

As disclosed in previously issued Company press releases as well as in our Form 10-K and Form 10-Qs, our business has been adversely impacted by the COVID-19 outbreak and the accompanying economic downturn. This downturn, as well as the uncertainty regarding the duration, spread and intensity of the outbreak, led to an initial reduction in demand for our services in 2020. Some of our customers instituted hiring freezes, while other customers that are more capable of working remotely were allowed to operate somewhat as usual. While we have seen some recovery, as evidenced by our fourth quarter results, this demand is still below pre-pandemic levels. The expected timeline for full recovery in demand for our services remains uncertain and difficult to predict considering the rapidly evolving landscape but we are beginning to see signs of positive momentum at certain clients.

The Company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves. The Company is confident that it can continue to take appropriate actions to manage the business in this challenging environment due to the flexibility of its workforce and the strength of its balance sheet.

Conference Call/Webcast

The Company will conduct a conference call today, March 11, 2021, at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at hudsonrpo.com.

If you wish to join the conference call, please use the dial-in information below:

-- Toll-Fee Dial-In Number: (866) 220-5784 -- International Dial-In Number: (615) 622-8063 -- Conference ID #: 4293877

The archived call will be available on the investor information section of the Company's web site at hudsonrpo.com.

About Hudson Global

Hudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.

For more information, please visit us at hudsonrpo.comor contact us at ir@hudsonrpo.com.

Investor Relations:The Equity GroupLena Cati212 836-9611 / lcati@equityny.com

Forward-Looking Statements

This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as anticipate, "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the adverse impacts of the recent coronavirus, or COVID-19 outbreak; the Companys ability to successfully achieve its strategic initiatives; risks related to potential acquisitions or dispositions of businesses by the Company; the Companys ability to retain and recruit qualified management and/or advisors; the Companys ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company's operating results from quarter to quarter; the loss of or material reduction in our business with any of the Companys largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company's markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company's investment strategy; risks related to international operations, including foreign currency fluctuations, political events, natural disasters or health crises, including the ongoing COVID-19 outbreak; the Company's dependence on key management personnel; the Company's ability to attract and retain highly skilled professionals; the Company's ability to collect accounts receivable; the Companys ability to maintain costs at an acceptable level; the Company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company's exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Companys business reorganization initiatives, and limits on related insurance coverage; the Companys ability to utilize net operating loss carry-forwards; volatility of the Company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial Tables Follow

HUDSON GLOBAL, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(unaudited) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019Revenue $ 27,331 $ 25,448 $ 101,448 $ 93,811 Operating expenses: Direct contracting costs and 16,048 14,333 62,367 50,245 reimbursed expensesSelling, general and 11,314 10,473 41,548 45,142 administrative expensesDepreciation and 106 23 179 85 amortizationTotal operating expenses 27,468 24,829 104,094 95,472 Operating (loss) income (137 ) 619 (2,646 ) (1,661 )Non-operating income (expense):Interest income, net 16 91 149 617 PPP loan forgiveness 1,326 ? 1,326 ? Other (expense) income, net (11 ) (123 ) 463 (338 )Income (loss) fromcontinuing operations before 1,194 587 (708 ) (1,382 )provision for income taxes(Benefit from) provision for (3 ) (896 ) 535 (540 )income taxesIncome (loss) from 1,197 1,483 (1,243 ) (842 )continuing operationsLoss from discontinuedoperations, net of income ? ? ? (113 )taxesNet income (loss) $ 1,197 $ 1,483 $ (1,243 ) $ (955 )Earnings (loss) per share: Basic Earnings (loss) per share $ 0.41 $ 0.48 $ (0.43 ) $ (0.27 )from continuing operationsLoss per share from ? ? ? (0.04 )discontinued operationsEarnings (loss) per share $ 0.41 $ 0.48 $ (0.43 ) $ (0.30 )Diluted Earnings (loss) per share $ 0.41 $ 0.48 $ (0.43 ) $ (0.27 )from continuing operationsLoss per share from ? ? ? (0.04 )discontinued operationsEarnings (loss) per share $ 0.41 $ 0.48 $ (0.43 ) $ (0.30 )Weighted-average shares outstanding:Basic 2,884 3,072 2,911 3,131 Diluted 2,894 3,111 2,911 3,131

HUDSON GLOBAL, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share amounts)(unaudited) December December 31, 31, 2020 2019ASSETS Current assets: Cash and cash equivalents $ 25,806 $ 31,190 Accounts receivable, less allowance for doubtful 13,445 12,795 accounts of $10 and $174, respectivelyRestricted cash, current 152 148 Prepaid and other 889 804 Total current assets 40,292 44,937 Property and equipment, net 115 186 Operating lease right-of-use assets 210 401 Goodwill 2,088 ? Intangible assets, net 1,400 ? Deferred tax assets 1,037 793 Restricted cash 241 380 Other assets 3 7 Total assets $ 45,386 $ 46,704 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 576 $ 1,064 Accrued expenses and other current liabilities 9,241 8,178 Operating lease obligations, current 192 246 Total current liabilities 10,009 9,488 Income tax payable 887 845 Operating lease obligations 22 160 Other liabilities 188 177 Total liabilities 11,106 10,670 Commitments and contingencies Stockholders? equity: Preferred stock, $0.001 par value, 10,000 shares ? ? authorized; none issued or outstandingCommon stock, $0.001 par value, 20,000 sharesauthorized; 3,672 and 3,663 shares issued; 2,685 and 4 4 2,936 shares outstanding, respectivelyAdditional paid-in capital 486,825 486,088 Accumulated deficit (437,750 ) (436,507 )Accumulated other comprehensive loss, net of 526 (479 )applicable taxTreasury stock, 987 and 726 shares, respectively, at (15,325 ) (13,072 )costTotal stockholders? equity 34,280 36,034 Total liabilities and stockholders' equity $ 45,386 $ 46,704

HUDSON GLOBAL, INC.SEGMENT ANALYSIS - QUARTER TO DATE(in thousands)(unaudited) For The Three AsiaMonths Ended Pacific Americas Europe Corporate TotalDecember 31, 2020Revenue, fromexternal $ 19,972 $ 3,538 $ 3,821 $ ? $ 27,331 customersAdjusted netrevenue, from $ 5,483 $ 3,167 $ 2,633 $ ? $ 11,283 externalcustomers ^(1)Net income $ 1,197 Benefit from (3 )income taxesInterest income, (16 )netDepreciation and 106 amortizationEBITDA (loss) ^ $ 998 $ 723 $ 158 $ (595 ) 1,284 (2)Non-operating expense (income),includingcorporateadministration 483 (1,262 ) 46 (582 ) (1,315 )charges and PPPloan forgivenessStock-basedcompensation 11 92 1 62 166 expenseNon-recurringseverance and ? 209 ? 315 524 professional feesCompensationexpense related ? 91 ? ? 91 to the Coitacquisition ^(3)Adjusted EBITDA $ 1,492 $ (147 ) $ 205 $ (800 ) $ 750 (loss) ^(2) For The Three AsiaMonths Ended Pacific Americas Europe Corporate TotalDecember 31, 2019Revenue, fromexternal $ 17,869 $ 2,933 $ 4,646 $ ? $ 25,448 customersAdjusted netrevenue, from $ 5,593 $ 2,733 $ 2,789 $ ? $ 11,115 externalcustomers ^(1)Net income $ 1,483 Benefit from (896 )income taxesInterest income, (91 )netDepreciation and 23 amortizationEBITDA (loss) ^ $ 1,059 $ 43 $ 223 $ (806 ) 519 (2)Non-operating expense (income),includingcorporate 147 114 137 (275 ) 123 administrationchargesStock-basedcompensation 22 6 3 119 150 expenseNon-recurringseverance and ? ? ? 97 97 professional feesAdjusted EBITDA $ 1,228 $ 163 $ 363 $ (865 ) $ 889 (loss) ^(2)

-- Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. -- Non-GAAP earnings before interest, income taxes, and depreciation and amortization (EBITDA) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, business reorganization expenses, stock-based compensation expense, and other non-recurring expenses (Adjusted EBITDA) are presented to provide additional information 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 these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. -- Represents compensation expense payable to the principals of Coit per the terms of the acquisition agreement, including a promissory note for $1.35 million payable over three years.

HUDSON GLOBAL, INC.SEGMENT ANALYSIS - YEAR TO DATE(in thousands)(unaudited) For The Year AsiaEnded December Pacific Americas Europe Corporate Total31, 2020Revenue, fromexternal $ 75,633 $ 10,866 $ 14,949 $ ? $ 101,448 customersAdjusted netrevenue, from $ 19,814 $ 9,598 $ 9,669 $ ? $ 39,081 externalcustomers ^(1)Net loss $ (1,243 )Provision for 535 income taxesInterest (149 )income, netDepreciationand 179 amortizationEBITDA (loss) $ 2,877 $ (1,044 ) $ 481 $ (2,992 ) (678 )^(2)Non-operatingexpense (income),includingcorporateadministration 1,002 (1,076 ) (74 ) (1,641 ) (1,789 )charges andPPP loanforgivenessStock-basedcompensation 60 88 6 583 737 expenseNon-recurringseverance and ? 528 ? 755 1,283 professionalfeesCompensationexpenserelated to the ? 91 ? ? 91 Coitacquisition ^(3)AdjustedEBITDA (loss) $ 3,939 $ (1,413 ) $ 413 $ (3,295 ) $ (356 )^(2) For The Year AsiaEnded December Pacific Americas Europe Corporate Total31, 2019Revenue, fromexternal $ 61,438 $ 13,565 $ 18,808 $ ? $ 93,811 customersAdjusted netrevenue, from $ 21,177 $ 12,291 $ 10,098 $ ? $ 43,566 externalcustomers ^(1)Net loss $ (955 )Loss fromdiscontinuedoperations, (113 )net of incometaxesLoss fromcontinuing (842 )operationsBenefit from (540 )income taxesInterest (617 )income, netDepreciationand 85 amortizationEBITDA (loss) $ 2,194 $ 60 $ 84 $ (4,252 ) (1,914 )^(2)Non-operatingexpense (income),includingcorporate 957 563 544 (1,726 ) 338 administrationchargesStock-basedcompensation 102 26 8 825 961 expenseNon-recurringseverance and ? ? ? 1,072 1,072 professionalfeesAdjustedEBITDA (loss) $ 3,253 $ 649 $ 636 $ (4,081 ) $ 457 ^(2)

-- Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. -- Non-GAAP earnings before interest, income taxes, and depreciation and amortization (EBITDA) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, business reorganization expenses, stock-based compensation expense, and other non-recurring expenses (Adjusted EBITDA) are presented to provide additional information 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 these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. -- Represents compensation expense payable to the principals of Coit per the terms of the acquisition agreement, including a promissory note for $1.35 million payable over three years.

HUDSON GLOBAL, INC.RECONCILIATION FOR CONSTANT CURRENCY(in thousands)(unaudited)

The Company operates on a global basis, with the majority of its revenue generated outside of the United States. Accordingly, fluctuations in foreign currency exchange rates can affect its results of operations. Constant currency information compares financial results between periods as if exchange rates had remained constant period-over-period. The company currently defines the term constant currency to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. Changes in revenue, adjusted net revenue, selling, general and administrative expenses ("SG&A"), business reorganization expenses and other non-operating income (expense), operating income (loss) and EBITDA (loss) include the effect of changes in foreign currency exchange rates. Variance analysis usually describes period-to-period variances that are calculated using constant currency as a percentage. The companys management reviews and analyzes business results in constant currency and believes these results better represent the companys underlying business trends. The company believes that these calculations are a useful measure, indicating the actual change in operations. There are no significant gains or losses on foreign currency transactions between subsidiaries. Therefore, changes in foreign currency exchange rates generally impact only reported earnings.

For The Three Months Ended December 31, 2020 2019 As As Currency Constant reported reported translation currencyRevenue: Asia Pacific $ 19,972 $ 17,869 $ 1,120 $ 18,989 Americas 3,538 2,933 4 2,937 Europe 3,821 4,646 155 4,801 Total $ 27,331 $ 25,448 $ 1,279 $ 26,727 Adjusted net revenue ^(1): Asia Pacific $ 5,483 $ 5,593 $ 343 $ 5,936 Americas 3,167 2,733 4 2,737 Europe 2,633 2,789 105 2,894 Total $ 11,283 $ 11,115 $ 452 $ 11,567 SG&A ^(2): Asia Pacific $ 4,002 $ 4,387 $ 258 $ 4,645 Americas 3,705 2,576 10 2,586 Europe 2,430 2,430 129 2,559 Corporate 1,177 1,080 ? 1,080 Total $ 11,314 $ 10,473 $ 397 $ 10,870 Operating income (loss): Asia Pacific $ 1,467 $ 1,194 $ 81 $ 1,275 Americas (623 ) 152 (5 ) 147 Europe 197 355 (24 ) 331 Corporate (1,178 ) (1,082 ) ? (1,082 )Total $ (137 ) $ 619 $ 52 $ 671 EBITDA (loss): Asia Pacific $ 998 $ 1,059 $ 74 $ 1,133 Americas 723 43 (5 ) 38 Europe 158 223 (29 ) 194 Corporate (595 ) (806 ) (2 ) (808 )Total $ 1,284 $ 519 $ 38 $ 557

-- Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. -- SG&A is a measure that management uses to evaluate the segments expenses and includes salaries and related costs and other selling, general and administrative costs.

HUDSON GLOBAL, INC.RECONCILIATION FOR CONSTANT CURRENCY (continued)(in thousands)(unaudited)

For The Year Ended December 31, 2020 2019 As As Currency Constant reported reported translation currencyRevenue: Asia Pacific $ 75,633 $ 61,438 $ 300 $ 61,738 Americas 10,866 13,565 (12 ) 13,553 Europe 14,949 18,808 170 18,978 Total $ 101,448 $ 93,811 $ 458 $ 94,269 Adjusted net revenue ^(1): Asia Pacific $ 19,814 $ 21,177 $ 16 $ 21,193 Americas 9,598 12,291 (6 ) 12,285 Europe 9,669 10,098 141 10,239 Total $ 39,081 $ 43,566 $ 151 $ 43,717 SG&A ^(2): Asia Pacific $ 15,941 $ 17,957 $ (87 ) $ 17,870 Americas 11,814 11,739 ? 11,739 Europe 9,160 9,473 135 9,608 Corporate 4,633 5,973 ? 5,973 Total $ 41,548 $ 45,142 $ 48 $ 45,190 Operating income (loss): Asia Pacific $ 3,827 $ 3,112 $ 102 $ 3,214 Americas (2,218 ) 605 (6 ) 599 Europe 383 605 ? 605 Corporate (4,638 ) (5,983 ) ? (5,983 )Total $ (2,646 ) $ (1,661 ) $ 96 $ (1,565 )EBITDA (loss): Asia Pacific $ 2,877 $ 2,194 $ 110 $ 2,304 Americas (1,044 ) 60 (5 ) 55 Europe 481 84 (6 ) 78 Corporate (2,992 ) (4,252 ) (2 ) (4,254 )Total $ (678 ) $ (1,914 ) $ 97 $ (1,817 )

-- Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. -- SG&A is a measure that management uses to evaluate the segments expenses and includes salaries and related costs and other selling, general and administrative costs.

HUDSON GLOBAL, INC.RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE(in thousands, except per share amounts)(unaudited)

Adjusted Diluted Per Shares DilutedFor The Three Months Ended December Net Income Outstanding Share31, 2020Net income $ 1,197 2,894 $ 0.41 Non-recurring items (after tax) (801 ) 2,894 (0.28 )Compensation expense related to the 183 2,894 0.06 Coit acquisition (after tax) ^(1)Adjusted net income ^(2) $ 579 2,894 $ 0.20

Adjusted Diluted Per Shares DilutedFor The Three Months Ended December Net Income Outstanding Share31, 2019Net income $ 1,483 3,111 $ 0.48 Non-recurring items (after tax) 97 3,111 0.03 Adjusted net income ^(2) $ 1,580 3,111 $ 0.51

Adjusted Diluted Per Shares DilutedFor The Year Ended December 31, Net Loss Outstanding Share2020Net loss $ (1,243 ) 2,911 $ (0.43 )Non-recurring items (after tax) (44 ) 2,911 (0.01 )Compensation expense related to the 183 2,911 0.06 Coit acquisition (after tax) ^(1)Adjusted net loss ^(2) $ (1,104 ) 2,911 $ (0.38 )

Adjusted Diluted Shares Per DilutedFor The Year Ended December 31, Net Outstanding Share2019 IncomeNet loss $ (955 ) 3,131 $ (0.30 )Non-recurring items (after tax) 1,072 3,131 0.34 Adjusted net income ^(2) $ 117 3,131 $ 0.04

Represents compensation expense payable to the principals of Coit per the terms of the acquisition agreement, including a promissory note for $1.35(1) million payable over three years, and $500k of the Company's common stock vesting over 30 months.

Adjusted net income or loss and adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as PPP loan forgiveness, acquisition-related costs, and non-recurring severance and professional fees after tax that are presented to provide additional information about the company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital(2) needs and working capital requirements. Adjusted net income or loss and adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.