SPHERION CORP - FORM 8-K - EX-99.1 - October 27, 2010

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SFN1_SM                 

Investor Contact: Teri L. Miller
(954) 308-8216
terilmiller@sfngroup.com
Media Contact: Lesly Cardec
FOR IMMEDIATE RELEASE (800) 422-3819
leslycardec@sfngroup.com
                                                                                                                 

SFN GROUP ANNOUNCES THIRD QUARTER 2010 FINANCIAL RESULTS

 

            FORT LAUDERDALE, Fla., October 27, 2010 — SFN Group Inc. (NYSE: SFN) today announced financial results for the third quarter ended September 26, 2010. 

 

SFN Group president and CEO Roy Krause commented, “Our third quarter results again reflect improving industry trends and disciplined strategy execution.  Our team continues to effectively drive revenue growth across the business, while improving gross profit margins and managing expenses.  Adjusted EBITDA as a percentage of revenue increased to 3.6% and we achieved strong operating cash flow.”

 

FINANCIAL HIGHLIGHTS

·         Third quarter 2010 revenues were $527 million compared with $420 million last year.  

·         Earnings from continuing operations in the third quarter were $6.0 million, or $0.11 per share, compared with breakeven results in the prior year. 

·         Adjusted earnings from continuing operations (defined below) in the third quarter were $6.0 million, or $0.11 per share, compared with adjusted earnings from continuing operations in the same prior year period of $0.5 million, or $0.01 per share.

·         Adjusted EBITDA (defined below) in the third quarter was $18.9 million, or 3.6% of revenues, compared with $9.2 million, or 2.2% of revenues, in the prior year. 

·         Total debt was $33.0 million at the end of the third quarter.  Availability under the credit facility was $134.1 million as of the end of the quarter.

 

Krause continued, “Long-term industry dynamics are positive and current industry trends continue to improve even in the face of slower U.S. economic growth.  Our business is positioned well to respond to market opportunities and we continue to invest in strategic growth areas such as recruitment process outsourcing and professional services where we have leading market positions.”

1

 

 

 

THIRD QUARTER OPERATING PERFORMANCE

In the third quarter, Professional Services revenues were up 37.7% compared with the same prior year period.  Professional Services represented 47.8% of total Company revenues and experienced increases due to the first quarter 2010 Tatum LLC acquisition and continued year over year growth in all skills and services.  Gross profit margin of 26.7% is up 230 basis points from the same period last year, primarily as a result of improved temporary staffing margins and growth in higher margin outsourcing and permanent placement services. Segment operating profit was $11.8 million in the third quarter or 4.7% of revenues, compared with $7.1million or 3.9% of revenues in the prior year. 

 

Staffing Services revenues increased 16.0% year over year in the third quarter compared with the same period last year.  Gross profit margins increased 90 basis points from the same period last year primarily as a result of increased pay/bill spreads.  SG&A increased modestly compared with the prior year, allowing segment operating profit to increase to $5.9 million or 2.1% of revenues, compared with $0.2 million, or 0.1% of revenues, last year.

 

OUTLOOK

Revenue trends in the first three weeks of October reflect normal seasonal ramping and continued growth in most areas of the business resulting in anticipated growth in total Company revenues for the fourth quarter of 3% to 5% compared with the third quarter of 2010.  Based on our third quarter results, continued revenue growth trends and improving operating leverage, we now anticipate that we will achieve results in the upper half of our full year Adjusted EBITDA target range of 2.75% to 3.0% for 2010.

 

INVITATION TO CONFERENCE CALL

Management will host its conference call on October 28, 2010 at 9:00 a.m. Eastern time to discuss information contained in this release. The call may be accessed in one of the following ways:

 

Via the Telephone:

Please dial 1-(800) 230-1093

The conference call leader is Roy Krause

The pass code: SFN Group Third Quarter Earnings Call

 

Via the Internet: 

You may access the call via the Internet through the Company’s Web site: www.sfngroup.com.

2

 

Replay:

A replay of the call will be available one hour after the live call has ended. You may listen to the replay of the call over the Internet through www.sfngroup.com. 

 

 

ABOUT SFN GROUP, Inc.

SFN Group (NYSE:SFN) is a strategic workforce solutions company that provides professional services and general staffing to help businesses more effectively source, deploy and manage people and the work they do.  As an industry pioneer, SFN Group has sourced, screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs for more than 60 years.

 

With approximately 550 locations in the United States and Canada, SFN delivers strategic workforce solutions that improve business performance.  From outsourcing to technology to professional services to staffing, SFN delivers the best combination of people, performance and service to improve the way work gets done.  It provides its services to approximately 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations.  The company employs more than 160,000 people annually through its network and is one of North America’s largest employers. SFN provides its solutions through a family of specialized businesses:  Technisource, Tatum, The Mergis Group, Todays Office Professionals, SourceRight Solutions and Spherion Staffing Services.  To learn more, visit www.sfngroup.com.

 

 

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. Factors that could cause future results to differ from current expectations include risks associated with: Competition – our business operates in highly competitive markets with low barriers to entry and we may be unable to compete successfully against existing or new competitors; Economic conditions – if the current economic downturn continues for a significant period or there is further deterioration in the economy, we could experience lower demand from customers and lower revenues; Government Regulation - government regulation may significantly increase our costs, including payroll-related costs and unemployment taxes; Third-Party Vendor Managers – providing our services through third-party vendor managers may expose us to financial losses; Customers – a loss of customers may result in a material impact on our results of operations; Debt and debt compliance – market conditions and failure to meet certain covenant requirements could impact the amount of availability we may borrow under our revolving lines of credit and the cost of our borrowings; Business strategy – we may not achieve the intended effects of our business strategy; Termination provisions - certain customer contracts contain termination provisions and pricing risks that could decrease revenues, profitability and cash flow; Failure to perform – our failure or inability to perform under customer contracts could result in damage to our reputation and give rise to legal claims; Acquisitions – acquisitions could have a material adverse effect on our financial condition, results of operation and cash flows; Business interruptions – business interruptions could have an adverse affect on our operations;

3

 

Personnel - our business is dependent upon the availability of qualified personnel and we may lose key personnel which could cause our business to suffer; Tax filings – regulatory challenges to our tax filing positions could result in additional taxes; Litigation – we may be exposed to employment–related claims and costs and we are a defendant in a variety of litigation and other actions from time to time; and International operations – we are subject to business risks associated with our operations in Canada, which could make those operations significantly more costly. These and additional factors discussed in this release and in SFN’s filings with the Securities and Exchange Commission could cause the Company’s actual results to differ materially from any projections contained in this release.

SFN Group Inc. prepares its financial statements in accordance with generally accepted accounting principles (GAAP).   Adjusted earnings (loss) from continuing operations is a non-GAAP financial measure, which excludes certain non-operating related items.  Items excluded from the calculation of adjusted earnings (loss) from continuing operations include restructuring and other charges related to acquisition transaction and integration expenses and cost reduction initiatives.  Adjusted EBITDA from continuing operations is a non-GAAP financial measure which excludes interest, restructuring and other charges, taxes, depreciation and amortization from earnings (loss) from continuing operations.  Adjusted earnings (loss) and adjusted EBITDA from continuing operations are key measures used by management to evaluate its operations.  Adjusted earnings (loss) and adjusted EBITDA from continuing operations should not be considered measures of financial performance in isolation or as an alternative to net earnings (loss) from continuing operations or net earnings (loss) as determined in the Statement of Operations in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies.

4

 

 

 

 

 

 

SFN GROUP, INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

 

Three Months Ended

 

September 26, 2010

  

September 27, 2009

Revenues(1)

$

527,123

 

$

420,197

Cost of services

 

414,465

 

 

338,558

     Gross profit(2)

 

112,658

 

 

81,639

Selling, general and administrative expenses

 

98,383

 

 

77,460

Amortization of intangibles

 

2,105

 

 

1,624

Interest expense

 

1,574

 

 

1,228

Interest income

 

(34

)

 

 

(41

)

Restructuring and other charges

 

-

 

 

896

 

 

102,028

 

 

81,167

 

Earnings from continuing operations before income taxes

 

10,630

 

 

472

Income tax expense

 

(4,666

)

 

 

(525

)

 

Earnings (loss) from continuing operations

 

5,964

 

 

(53

)

    Earnings from discontinued operations, net of tax

 

-

 

 

-

Net earnings (loss)

$

5,964

 

$

(53

)

 

Earnings (loss) per share, Basic and Diluted:

 

 

 

 

 

     Earnings from continuing operations

$

0.11

 

$

-

     Earnings from discontinued operations

 

-

 

 

-

 

$

0.11

 

$

-

 

Weighted-average shares used in computation of earnings per share:

 

 

 

 

 

     Basic

 

52,702

 

 

51,743

     Diluted

 

54,746

 

 

51,743

 

(1) Includes sales of all company-owned and franchised offices and royalties on sales of area-based franchised offices.

 

(2) Gross profit is revenues less temporary employee wages, employment related taxes such as FICA, federal and state unemployment taxes, medical and other insurance for temporary employees, workers' compensation, benefits, billable expenses and other direct costs.

5

 

 

 

 

 

 

 

 

 

 

 

 

SFN GROUP, INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

 

Nine Months Ended

 

September 26,

 

September 27,

 

2010

 

2009

Revenues(1)

$

1,504,213

 

$

1,255,246

Cost of services

 

1,201,903

 

 

1,007,356

     Gross profit(2)

 

302,310

 

 

247,890

Selling, general and administrative expenses

 

278,686

 

 

243,923

Amortization of intangibles

 

6,128

 

 

4,879

Interest expense

 

4,723

 

 

2,713

Interest income

 

(92

)

 

 

(131

)

Restructuring and other charges

 

3,302

 

 

5,069

 

 

292,747

 

 

256,453

 

Earnings (loss) from continuing operations before income taxes

 

9,563

 

 

(8,563

)

Income tax (expense) benefit

 

(3,895

)

 

 

2,460

 

Earnings (loss) from continuing operations

 

5,668

 

 

(6,103

)

    Loss from discontinued operations, net of tax

 

(160

)

 

 

(399

)

Net earnings (loss)

$

5,508

 

$

(6,502

)

 

Earnings (loss) per share, Basic:(3)

 

 

 

 

 

    Earnings (loss) from continuing operations

$

0.11

 

$

(0.12

)

    Loss from discontinued operations

 

-

 

 

(0.01

)

 

$

0.11

 

$

(0.12

)

 

Earnings (loss) per share, Diluted:(3)

 

 

 

 

 

    Earnings (loss) from continuing operations

$

0.10

 

$

(0.12

)

 Loss from discontinued operations

 

-

 

 

(0.01

)

 

$

0.10

 

$

(0.12

)

 

Weighted-average shares used in computation of loss per share:

 

 

 

 

 

     Basic

 

52,363

 

 

52,022

     Diluted

 

54,467

 

 

52,022

 

(1) Includes sales of all company-owned and franchised offices and royalties on sales of area-based franchised offices.

 

(2) Gross profit is revenues less temporary employee wages, employment related taxes such as FICA, federal and state unemployment taxes, medical and other insurance for temporary employees, workers' compensation, benefits, billable expenses and other direct costs.

 

(3) Loss per share amounts are calculated independently for each component and may not add due to rounding.

6

 

 

 

 

 

 

SFN GROUP, INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

(unaudited)

 

September 26,

December 27,

Assets

2010

  

2009

Current Assets:

 

 

 

 

 

     Cash and cash equivalents

$

5,800

 

$

8,034

     Receivables, less allowance for doubtful accounts of $2,999 and $2,261, respectively

 

297,926

 

 

228,180

     Deferred tax asset

 

11,684

 

 

10,236

     Other current assets

 

13,204

 

 

11,430

          Total current assets

 

328,614

 

 

257,880

Property and equipment, net of accumulated depreciation of $151,317

     and $140,985, respectively

 

40,287

 

 

49,737

Deferred tax asset

 

131,153

 

 

135,695

Goodwill

 

31,073

 

 

810

Trade names and other intangibles, net

 

62,909

 

 

57,427

Other assets

 

21,004

 

 

22,042

 

$

615,040

 

$

523,591

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current Liabilities:

 

  

 

 

  

     Current portion of long-term debt and revolving line of credit

$

30,734

 

$

12,352

     Accounts payable and other accrued expenses

 

85,181

 

 

57,403

     Accrued salaries, wages and payroll taxes

 

67,229

 

 

46,381

     Accrued insurance reserves

 

20,331

 

 

19,037

     Accrued income tax payable

 

-

 

 

806

     Other current liabilities

 

6,093

 

 

6,399

          Total current liabilities

 

209,568

 

 

142,378

Long-term debt, net of current portion

 

2,221

 

 

1,246

Accrued insurance reserves 

 

18,745

 

 

14,617

Deferred compensation

 

15,827

 

 

14,702

Other long-term liabilities

 

5,503

 

 

4,692

          Total liabilities

 

251,864

 

 

177,635

Stockholders' Equity:

 

 

 

 

 

     Preferred stock, par value $0.01 per share; authorized, 2,500,000 shares;

       none issued or outstanding

 

 

-

 

 

 

-

     Common stock, par value $0.01 per share; authorized, 200,000,000;

         issued 65,341,609 shares

 

653

 

 

653

     Treasury stock, at cost, 14,271,700 and 15,896,160 shares, respectively

 

(98,116

)

 

 

(113,421

)

     Additional paid-in capital

 

849,900

 

 

853,516

     Accumulated deficit

 

(392,702

)

 

 

(398,210

)

     Accumulated other comprehensive income

 

3,441

 

 

3,418

          Total stockholders' equity

 

363,176

 

 

345,956

 

$

615,040

 

$

523,591

7

 

 

 

 

 

SFN GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(unaudited, in thousands, except per share amounts)

 

Three Months Ended

  

Nine Months Ended

 

September 26,

September 27,

  

September 26,

  

September 27,

 

2010

2009

  

2010

  

2009

Adjusted earnings (loss) from continuing operations

$

5,964

 

$

493

 

$

7,679

$

(3,016

)

Restructuring and other charges, net of tax benefit

 

-

 

 

(546

)

 

 

(2,011

)

 

(3,087

)

Earnings (loss) from continuing operations

 

5,964

 

 

(53

)

 

 

5,668

 

(6,103

)

Earnings (loss) from discontinued operations, net of tax

 

-

 

 

-

 

 

(160

)

 

(399

)

Net earnings (loss)

$

5,964

 

$

(53

)

 

$

5,508

$

(6,502

)

 

Per share-Diluted amounts (1) :

 

 

 

 

 

 

 

 

 

 

Adjusted earnings (loss) from continuing operations

$

0.11

 

$

0.01

 

$

0.14

$

(0.06

)

Restructuring and other charges, net of tax benefit

 

-

 

 

(0.01

)

 

 

(0.04

)

 

(0.06

)

Earnings (loss)  from continuing operations

 

0.11

 

 

-

 

 

0.10

 

(0.12

)

Loss from discontinued operations, net of tax

 

-

 

 

-

 

 

-

 

(0.01

)

Net earnings (loss)

$

0.11

 

$

-

 

$

0.10

$

(0.12

)

Weighted-average shares used in computation of earnings (loss) per share

 

54,746

 

 

51,743

 

 

54,467

 

52,022

(1)  Earnings (loss) per share amounts are calculated independently for each component and may not add due to rounding.

RECONCILIATION OF ADJUSTED EBITDA TO EARNINGS (LOSS) FROM CONTINUING OPERATIONS

 

 

Three Months Ended

  

Nine Months Ended

 

September 26,

  

September 27,

  

September 26,

  

September 27,

 

2010

  

2009

  

2010

  

2009

Adjusted EBITDA from continuing operations

$

18,936

 

$

9,162

 

$

38,210

$

19,156

Interest income

 

34

 

 

41

 

 

92

 

131

Interest expense

 

(1,574

)

 

 

(1,228

)

 

 

(4,723

)

 

(2,713

 )

Restructuring and other charges

 

-

 

 

(896

)

 

 

(3,302

)

 

(5,069

 )

Depreciation and amortization

 

(6,766

)

 

 

(6,607

)

 

 

(20,714

)

 

(20,068

 )

Earnings (loss) from continuing operations before income taxes

 

10,630

 

 

472

 

 

9,563

 

(8,563

 )

Income tax (expense) benefit

 

(4,666

)

 

 

(525

)

 

 

(3,895

)

 

2,460

Earnings (loss) from continuing operations

$

5,964

 

$

(53

)

 

$

5,668

$

(6,103

 )

Adjusted EBITDA  as a percentage of revenue

 

3.6

%

 

 

2.2

%

 

 

2.5

%

 

1.5

 %
8
 
 
 
 
 

SFN GROUP, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(unaudited, dollar amounts in thousands)

 

Three Months Ended

  

Nine Months Ended

 

September 26, 2010

June 27, 2010

September 27, 2009

  

September 26, 2010

September 27, 2009

Revenues:

 

Professional Services

$

251,857

 

$

250,087

 

$

182,911

 

$

721,519

 

$

559,372

 

Staffing Services

 

275,266

 

 

263,876

 

 

237,286

 

 

782,694

 

 

695,874

 

    Segment revenue

$

527,123

 

$

513,963

 

$

420,197

 

$

1,504,213

 

$

1,255,246

Gross profit:

 

Professional Services

$

67,219

 

$

63,949

 

$

44,574

 

$

181,115

 

$

141,094

 

Staffing Services

45,439

 

 

41,443

 

 

37,065

 

 

121,195

 

 

106,796

 

    Segment gross profit

$

112,658

 

$

105,392

 

$

81,639

 

$

302,310

 

$

247,890

Segment SG&A:

 

Professional Services

$

(55,422

)

 

$

(55,318

)

 

$

(37,454

)

 

$

(156,880

)

 

$

(123,843

)

 

Staffing Services

 

(39,529

)

 

 

(36,774

)

 

 

(36,912

)

 

 

(111,706

)

 

 

(110,853

)

 

    Segment SG&A

$

(94,951

)

 

$

(92,092

)

 

$

(74,366

)

 

$

(268,586

)

 

$

(234,696

)

Segment operating profit (loss):

 

Professional Services

$

11,797

 

$

8,631

 

$

7,120

 

$

24,235

 

$

17,251

 

Staffing Services

 

5,910

 

 

4,669

 

 

153

 

 

9,489

 

 

(4,057

)

 

    Segment operating profit

 

17,707

 

 

13,300

 

 

7,273

 

 

33,724

 

 

13,194

 

Unallocated corporate costs

 

(3,432

)

 

 

(3,518

)

 

 

(3,094

)

 

 

(10,100

)

 

 

(9,227

)

 

Amortization of intangibles

 

(2,105

)

 

 

(2,116

)

 

 

(1,624

)

 

 

(6,128

)

 

 

(4,879

)

 

Interest expense

 

(1,574

)

 

 

(1,688

)

 

 

(1,228

)

 

 

(4,723

)

 

 

(2,713

)

 

Interest income

 

34

 

 

27

 

 

41

 

 

92

 

 

131

 

Restructuring and other charges

 

-

 

 

(974

)

 

 

(896

)

 

 

(3,302

)

 

 

(5,069

)

 

Earnings (loss) from continuing operations before income taxes

$

10,630

 

$

5,031

 

$

472

 

$

9,563

 

$

(8,563

)

MEMO:

Gross profit margin:

 

Professional Services

 

26.7

%

 

 

25.6

%

 

 

24.4

%

 

 

25.1

%

 

 

25.2

%

 

Staffing Services

 

16.5

%

 

 

15.7

%

 

 

15.6

%

 

 

15.5

%

 

 

15.3

%

 

    Total SFN Group, Inc.

 

21.4

%

 

 

20.5

%

 

 

19.4

%

 

 

20.1

%

 

 

19.7

%

Segment SG&A:

 

Professional Services

 

22.0

%

 

 

22.1

%

 

 

20.5

%

 

 

21.7

%

 

 

22.1

%

 

Staffing Services

 

14.4

%

 

 

13.9

%

 

 

15.6

%

 

 

14.3

%

 

 

15.9

%

 

    Total SFN Group, Inc.

 

18.0

%

 

 

17.9

%

 

 

17.7

%

 

 

17.9

%

 

 

18.7

%

Segment operating profit (loss):

 

Professional Services

 

4.7

%

 

 

3.5

%

 

 

3.9

%

 

 

3.4

%

 

 

3.1

%

 

Staffing Services

 

2.1

%

 

 

1.8

%

 

 

0.1

%

 

 

1.2

%

 

 

(0.6

%)

 

    Total SFN Group, Inc.

 

3.4

%

 

 

2.6

%

 

 

1.7

%

 

 

2.2

%

 

 

1.1

%

Segment revenue per billing day:

 

Professional Services

$

3,998

 

$

3,938

 

$

2,903

 

$

3,797

 

$

2,944

 

Staffing Services

$

4,369

 

$

4,156

 

$

3,766

 

$

4,119

 

$

3,662

 

    Total SFN Group, Inc. (1)

$

8,367

 

$

8,094

 

$

6,670

 

$

7,917

 

$

6,607

Supplemental Cash Flow and Other Information:

 

Operating cash flow

$

13,239

 

$

(91

)

 

$

(7,822

)

 

$

16,863

 

$

30,574

 

Capital expenditures

$

1,284

 

$

1,231

 

$

303

 

$

3,025

 

$

1,834

 

Depreciation and amortization

$

6,766

 

$

7,056

 

$

6,607

 

$

20,714

 

$

20,068

 

DSO

 

52

 

 

50

 

 

50

 

 

52

 

 

50

 

Billing Days

 

63.0

 

 

63.5

 

 

63.0

 

 

190.0

 

 

190.0

(1) Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding.

9

 

SFN GROUP, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited, dollar amounts in thousands)

 

Three Months Ended

  

Nine Months Ended

 

September 26, 2010

  

June 27, 2010

  

September 27, 2009

    

September 26, 2010

  

September 27, 2009

Professional Services

Revenues by Skill:

   Information Technology

$

128,413

 

$

126,972

 

$

109,155

 

$

373,379

 

$

338,533

   Finance & Accounting

 

45,381

 

 

43,076

 

 

20,490

 

 

123,493

 

 

65,337

   Administration

 

15,189

 

 

14,985

 

 

10,341

 

 

44,135

 

 

39,664

   Other

 

62,874

 

 

65,054

 

 

42,925

 

 

180,512

 

 

115,838

       Segment Revenues

$

251,857

 

$

250,087

 

$

182,911

 

$

721,519

 

$

559,372

Revenues by Service:

   Temporary Staffing

$

192,831

 

$

190,464

 

$

143,415

 

$

556,035

 

$

455,869

   Outsourcing & Other

 

51,634

 

 

53,584

 

 

34,647

 

 

147,613

 

 

88,834

   Permanent Placement

 

7,392

 

 

6,039

 

 

4,849

 

 

17,871

 

 

14,669

       Segment Revenues

$

251,857

  

$

250,087

  

$

182,911

  

$

721,519

  

$

559,372

Gross Profit Margin by Service:

   (As % of Applicable Revenues)

   Temporary Staffing

 

25.0

%

 

 

23.9

%

 

 

23.2

%

 

 

23.8

%

 

 

23.6

%

   Outsourcing & Other

 

22.4

%

 

 

23.2

%

 

 

18.5

%

 

 

21.0

%

 

 

21.3

%

   Permanent Placement

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

       Total Professional Services

 

26.7

%

 

 

25.6

%

 

 

24.4

%

 

 

25.1

%

 

 

25.2

%

Revenues per billing day by Skill: (1)

   Information Technology

$

2,038

 

$

2,000

 

$

1,733

 

$

1,965

 

$

1,782

   Finance & Accounting

$

720

 

$

678

 

$

325

 

$

650

 

$

344

   Administration

$

241

 

$

236

 

$

164

 

$

232

 

$

209

   Other

$

998

 

$

1,024

 

$

681

 

$

950

 

$

610

Revenues per billing day by Service: (1)

   Temporary Staffing

$

3,061

 

$

2,999

 

$

2,276

 

$

2,927

 

$

2,399

   Outsourcing & Other

$

820

 

$

844

 

$

550

 

$

777

 

$

468

   Permanent Placement

$

117

 

$

95

 

$

77

 

$

94

 

$

77

Staffing Services

Revenues by Skill:

   Clerical

$

145,438

 

$

141,808

 

$

135,650

 

$

426,139

 

$

424,606

   Light Industrial

 

129,828

 

 

122,068

 

 

101,636

 

 

356,555

 

 

271,268

       Segment Revenues

$

275,266

 

$

263,876

 

$

237,286

 

$

782,694

 

$

695,874

Revenues by Service:

Temporary Staffing

$

273,364

 

$

261,904

 

$

235,937

 

$

776,962

 

$

691,441

Permanent Placement

 

1,902

 

 

1,972

 

 

1,349

 

 

5,732

 

 

4,433

      Segment Revenues

$

275,266

 

$

263,876

 

$

237,286

 

$

782,694

 

$

695,874

Gross Profit Margin by Service:

   (As % of Applicable Revenues)

   Temporary Staffing

 

15.9

%

 

 

15.1

%

 

 

15.1

%

 

 

14.9

%

 

 

14.8

%

   Permanent Placement

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

       Total Staffing Services

 

16.5

%

 

 

15.7

%

 

 

15.6

%

 

 

15.5

%

 

 

15.3

%

Revenues per billing day by Skill: (1)

   Clerical

$

2,309

 

$

2,233

 

$

2,153

 

$

2,243

 

$

2,235

   Light Industrial

$

2,061

 

$

1,922

 

$

1,613

 

$

1,877

 

$

1,428

Revenues per billing day by Service: (1)

Temporary Staffing

$

4,339

 

$

4,124

 

$

3,745

 

$

4,089

 

$

3,639

Permanent Placement

$

30

 

$

31

 

$

21

 

$

30

 

$

23

(1) Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding.

10

SPHERION CORP Reports