Corporate Resource Services Announces 1st Quarter Results

Corporate Resource Services Announces 1st Quarter Results

Corporate Resource Services, Inc. has announced its results for its first fiscal quarter of 2011.

Our revenue for the first fiscal quarter of 2011 totaled $44.9 million, an increase of $22.7 million, or 116.8%, as compared to the corresponding quarter in fiscal year 2010. The revenue increase was primarily attributable to the acquisition of the businesses of Insurance Overload Services, Inc. (“Insurance Overload”), Corporate Resource Development, Inc. (“CRD”) and Integrated Consulting Group, Inc. (“ICG”) during the last year. These three businesses increased revenues by $1.5 million, $18.6 million and $1.6 million, respectively. ICG’s business was acquired on December 14, 2010, and therefore, ICG’s results are only included during the last two and one-half weeks of the quarter. Additionally, the business of Accountabilities, Inc. (“Accountabilities”) experienced increased revenues in the first fiscal quarter of 2011 of $2.5 million, or 18%, as compared to the comparable period in fiscal 2010.

On August 27, 2010, Insurance Overload acquired Tri-Overload Staffing, Inc (“Tri-Overload”) from a common owner of the Company. Accordingly, this acquisition has been accounted for as a pooling of interest. As a result, all previously reported financial information with respect to the Company has been restated to include the operating results of Tri-Overload. The Company’s revenue for the first quarter of fiscal 2010 was restated to include $6.6 million, which amount is attributable to revenue earned by Tri-Overload during this period.

Our income from operations increased $983,000 to $941,000 during the first fiscal quarter of 2011, from a loss of ($42,000) in the corresponding period of fiscal 2010 (which amount was restated to include income of $476,000 at Insurance Overload). Accountabilities’ income from operations improved $585,000 during our first fiscal quarter of 2011. Income from operations improved at Insurance Overload as well, growing to $1.5 million in the comparable 2011 period. These improvements were offset by losses from operations at CRD and ICG.

Our diluted earnings per share for the first fiscal quarter of 2011 was $0.01, compared to a loss of ($0.02) per share in the first fiscal quarter of 2010.

Commenting on the first quarter results, Jay Schecter, Chief Executive Officer of the Company stated: “We are beginning to see the benefits of the acquisitions we made during the past year, and we continue to realize economies of scale while, at the same time, strengthening our sales programs and team. We are looking forward to our future performance, which will include the results of Diamond Staffing Services, Inc., our wholly-owned subsidiary, which acquired its business in January 2011.”