Q3 Spherion Results Announced
Q3 Spherion Results Announced
Spherion Corporation has announced its financial results for the third quarter ended September 27, 2009.
Spherion president and CEO Roy Krause commented, "Our revenues in the third quarter increased nearly 3% from the prior quarter as the economy continued to show signs of improvement. Additionally, we once again exceeded our 2.0% EBITDA target due to focused cost management."
-- Third quarter 2009 revenues were $420 million, compared with $542
million last year.
-- Loss from continuing operations in the third quarter was $0.1 million,
or $0.00 per share, compared with earnings of $4.1 million, or $0.08 per share, in the prior year.
-- Adjusted EBITDA (defined below) in the third quarter was $9.2 million,
or 2.2% of revenues, compared with $15.4 million, or 2.8% of revenues, in the prior year.
-- Revenues for the first nine months of 2009 were $1.3 billion compared
with $1.7 billion for the same period in 2008. Adjusted loss from
continuing operations for the first nine months of 2009 was $3.0
million, or $0.06 per share, compared with earnings of $11.8 million, or
$0.22 per share, for the same period in 2008. Adjusted EBITDA for the
first nine months was $19.2 million compared with $45.7 million for the
same period last year.
-- Net debt was $11.7 million at the end of the third quarter, compared
with $31.7 million at the end of 2008. Availability under the credit
facility was $101.7 million as of the end of September.
Krause continued, "As the economic recovery takes hold, our focus is now shifting towards growing operating margins through expansion of our higher value services such as recruitment process outsourcing, where we are the industry leader, and professional staffing and solutions, while continuing our focus on operational effectiveness. I believe that we are well positioned operationally and strategically to emerge from this tumultuous period with a more balanced mix of business."
THIRD QUARTER OPERATING PERFORMANCE
Within Professional Services, third quarter revenues were down compared with both the same prior year period and the second quarter, 28.6% and 6.0%, respectively. Gross profit margins in third quarter 2009 were 26.8% compared with 27.6% in the second quarter. SG&A was down 8.4% sequentially compared with the second quarter and represented 22.4% of revenues this quarter compared with 23.0% of revenues in the second quarter. Segment operating profit was $7.1 million, or 4.4% of revenues, compared with $9.1 million, or 4.0% of revenues, last year and $8.0 million in the second quarter, or 4.6% of revenues.
Year over year revenues in Staffing Services for the quarter were down 18.2% compared with the same period last year and up 9.0% compared with the second quarter. Gross profit margins were 14.9% in third quarter 2009 compared with 15.1% in the second quarter. SG&A expenses as a percentage of revenues were 14.8% in third quarter 2009 compared with 15.4% in the second quarter. Segment operating profit was $0.2 million, or 0.1% of revenues, compared with $5.3 million, or 1.7% of revenues, last year and a loss of $0.7 million last quarter, or (0.3%) of revenues.
The Company purchased 405,864 shares of its common stock during the third quarter of 2009 at an average price of $5.74 per share. The Company continues to purchase shares under the Board of Directors' authorization to offset the dilution of employee benefit plans.
Revenues per day in the first three weeks of October were about 5% higher than during the third quarter. The current economic environment and the impact of the holiday season make it difficult to predict how revenues will trend throughout the remainder of the fourth quarter.