Spherions 2008 Results
Spherion Corporation has announced its financial results for the fourth quarter and fiscal year ended December 28, 2008.
Spherion President and Chief Executive Officer Roy Krause commented, "Challenging economic conditions adversely impacted our Company's performance during the fourth quarter. However, cash flow was strong enabling us to reduce our net debt by nearly $40 million during the quarter. Results include a non-cash goodwill and intangible impairment charge required under accounting rules as a result of the adverse market conditions and the continued decline of our stock price. Our focus on cash flow and containment of operating costs continues to improve our financial stability and flexibility during these challenging economic times."
Fourth quarter 2008 revenues were $508 million, compared with $582 million last year.
Loss from continuing operations in the fourth quarter was $126.2 million compared with earnings of $10.0 million in the prior year.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter were $9.0 million compared with $20.8 million in the fourth quarter last year.
Revenues for the full year 2008 were $2,189 million compared with $2,017 million for 2007. Adjusted EBITDA for 2008 was $54.6 million compared with $69.0 million for 2007.
-- Net debt was $31.7 million at the end of 2008, compared with net debt of $92.9 million at the end of 2007. The Company had unused availability on its credit facilities of approximately $65 million at the end of 2008.
Krause continued, "We reduced SG&A by about $7 million in the fourth quarter compared with the third quarter and took additional actions at the end of the fourth quarter to reduce our first quarter 2009 SG&A in response to economic conditions. We continue to carefully watch gross profit trends and adjust operating costs to maintain appropriate cash flow levels while keeping Spherion positioned to respond positively when the economy improves. We will continue to pay down our debt, and we have ample availability under our credit facility to enable us to grow the business when the economy again begins to create jobs."