Hudson Global, Inc.

conference operator. Today's conference call is scheduled to begin moments early. Until that time, your lines will again be placed on music hold. Thank you for your patience. Thank you. Thank you. Thank you. Good morning and welcome to the Hudson Global Conference Call. or the first quarter of 2021. Our call this morning will be led by Chief Executive Officer Jeff Eberwine and Chief Financial Officer Matt Diamond. Please be advised that the statements made during the presentation include forward-looking statements under the applicable security laws. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially. from those contained in the forward-looking statements. These risks are discussed in our Form 8K filed today and in our other filings made with the Securities and Exchange Commission, including our annual report on the Form 10K. The company disclaims any obligations to update any forward-looking statements during the course of this conference call. Reference will be made in the non-GAAP terms, such as constant currencies adjusted EBITDA and adjusted earnings per diluted shares. Reconciliation for these measures are included in our earnings release and quarterly slides, both posted on our website, hudsonrpo.com. I encourage you to access our earnings material at this time. as they will serve as a helpful reference guide during our call. I will now turn the call over to Jeff Eberwine. You may begin.

Thank you, Operator, and welcome, everyone. We thank you for your interest in Hudson Global and for joining us today. I'll start by reviewing the first quarter 2021 highlights, and Matt Diamond, our CFO, will provide some additional details on our financial results. I will then give an update on current business conditions. For the first quarter of 2021, we reported revenue of $34.5 million, up 27% year-over-year in constant currency. Adjusted net revenue, formerly referred to as gross profit, was $12.7 million and increased 19% year-over-year in constant currency. SG&A costs were $12 million in the first quarter, up 13% versus the same period last year in constant currency. We reported adjusted EBITDA of 800,000 up from an adjusted EBITDA loss of 100,000 a year ago. In addition, we reported a net loss of 0.2 million or 7 cents a share versus a net loss of 0.5 million or 17 cents a share in the same period last year. We reported adjusted net income per share of 7 cents in the first quarter of 2021 versus an adjusted net loss per share of $0.08 a year ago. Turning to the performance for the quarter by region, our Asia Pacific business grew 29% in constant currency and adjusted net revenue grew 12% in constant currency. Adjusted EBITDA of $1.1 million increased from adjusted EBITDA of $0.6 million a year ago. Our Americas business grew revenue and adjusted net revenue 42% and 46% in constant currency, respectively, mostly due to the acquisition of Coit Group that was made in the fourth quarter of last year. Adjusted EBITDA of $200,000 increased versus last year's adjusted EBITDA of $100,000. Our Europe business grew revenue 6% in constant currency and adjusted net revenue 5% in constant currency. Adjusted EBITDA of $200,000 increased in the first quarter of 2021 increased compared to adjusted EBITDA of 100,000 in the first quarter of last year. Lastly, we believe it's important to highlight that adjusted net revenue for the company as a whole grew at a faster rate than our cost did in Q1, and that was particularly true in Asia Pacific and Europe. This operating leverage that we're seeing is critical to achieving our goal of growing RPO's adjusted EBITDA as a percentage of adjusted net revenue to the 20% level before corporate costs over the long term. I'll now turn the call over to Matt Diamond, our CFO, to review some additional financial details from the first quarter.

Thank you, Jeff, and good morning, everyone. We ended the quarter with $23.6 million in cash and restricted cash. Day sales outstanding was 41 days at March 2021, below DSO of 44 days we had in March 2020. In connection with the acquisition of Coit Group in the fourth quarter of 2020, our balance sheet, as of March 31, 2021, reflects $2.1 million of goodwill and $1.3 million of net intangible assets. The company's working capital, excluding cash, increased by $2.3 million in the first quarter to $6.8 million, up from $4.5 million at the end of the fourth quarter of 2020. As a reminder, in April 2019, We finalized a new credit facility in Australia to support the expected growth in working capital needs as a result of new client wins in that market, but we had nothing drawn on this facility at the end of Q1. The company used $2.4 million in cash flow from operations during the first quarter. The outflow was due to the seasonal moves in working capital we typically see in Q1, as well as the ramp up of a new MSP client in Australia. I'll now turn the call back over to Jeff to give some more perspective on our RPO business and to review current trends in our business.