Korn/Ferry International Earnings Call Nuggets: Revenue Contributors and Priorities
Kevin McVeigh – Macquarie: I wonder, Gary, it sounds like the LTC business really contributing a nice percentage of the revenue now. As we think about that sustainable kind of adjusted EBITDA target of 16% to 18%, how are we thinking about kind of the different components and how would they contribute to that in terms of the search versus LTC?
Gary Burnison – CEO: Well, we’re very pleased that the non-search business has been very pursuant and we – the Futurestep business is going to have lower margins for sure, but that’s going to be a component of how much RPO activity we have. So as an organization, we are targeting 15% to 18%, and we would expect our LTC business to contribute those kinds of margins the search would be maybe a little bit more and Futurestep would be a little bit less.
Kevin McVeigh – Macquarie: As you think about LTC at 40% does that continue to climb here and just on the back of that it sounds like, if I heard it right pushing up kind of that initiative across all your consultants to kind of tweak the compensation structure as a result of that at all.
Gary Burnison – CEO: well, we’ve continued over time to evolve our compensation structure and we will continue to do that, today it’s all about being relevant and differentiating yourself and fighting for growth. So although compensation is important it is not number one and we have to be more relevant to our clients and we think, going to market is one, bringing a richer deeper set of offerings we will indeed drive the top line and our employees and colleagues will be further differentiated and just as a point of clarification the 40% it not only includes the LTC business, but includes the Futurestep business as well. LTC is about 26% of the topline, Futuresteps’ 14%…