Hewitt Associates, Inc. (NYSE: HEW), a global human resources consulting and outsourcing services company, today reported results for its fiscal 2010 third quarter ended June 30, 2010.
Reported net revenues (revenues before reimbursements) were approximately unchanged at $730.6 million, compared with $729.0 million in the prior-year quarter. Net revenues declined 1% after adjusting for foreign currency translation, acquisitions and divestitures, and third-party revenues in both periods.
Reported operating income declined 27% to $79.2 million, compared with $109.1 million in the prior-year quarter. Excluding unusual items in both periods discussed below, adjusted current quarter operating income declined 16% to $104.9 million, compared with $124.3 million in the prior-year quarter 1.
Reported net income increased to $77.9 million, or $0.82 per diluted share, compared with $68.4 million, or $0.71 per diluted share in the prior-year quarter. Excluding unusual items in both periods discussed below, adjusted net income was $57.4 million, or $0.60 per diluted share, compared with $77.9 million, or $0.81 per diluted share in the prior-year quarter.
Free cash flow, a non-GAAP measure, was $264.2 million for the current nine-month period, compared with $192.3 million in the prior-year period.
“We made good progress against many of our operating objectives this quarter,” said Russ Fradin, chairman and chief executive officer. “Our Consulting business delivered a more positive growth performance and our HR BPO business remained profitable despite an expected decline in revenue. Our Benefits Outsourcing business continues to compete in a challenging environment, which depressed our recent results, and we remain optimistic about its longer term prospects. “During the quarter, we took actions to lower our cost structure consistent with our ongoing lean initiatives, namely further streamlining our real estate facilities and implementing operational process improvements. We look forward to the future as we remain focused on providing our clients with exceptional service,” added Fradin.