Connecting to LinkedIn...

Blank

CDI Corp. Reports 2011 Third Quarter Results

CDI Corp. Reports 2011 Third Quarter Results

Revenue grows 9.3 percent compared to prior-year third quarter announces quarterly cash dividend

CDI Corp. (NYSE:CDI) (the “Company”) today reported financial results for the third quarter ended September 30, 2011. The Company also announced a quarterly cash dividend of $0.13 per share which will be paid on November 23, 2011 to all shareholders of record as of November 10, 2011.

2011 Third Quarter Key Points

• Revenue of $272.5 million, representing growth of 9.3% compared to the prior-year third quarter

and sequential revenue growth of 3.7%.

• Operating profit of $4.4 million, representing a decrease of 10.5% compared to the prior-year third

quarter. The third quarter ended September 30, 2011, includes $0.6 million of severance payments

to senior level executives. The third quarter ended September 30, 2010, includes $1.5 million of payroll tax credits under the Hiring Incentives to Restore Employment (HIRE) Act.

• Third quarter net income of $2.8 million or $0.15 per diluted share. Third quarter 2011 net income

includes an income tax credit of $0.3 million under the HIRE Act.

“CDI had strong underlying operating performance in the third quarter despite a challenging economic

environment,” commented Paulett Eberhart, CDI’s president and chief executive officer. “Although the

economic outlook remains uncertain, we anticipate growth through the end of the year from increased

demand in some sectors of our business.”

For the third quarter ended September 30, 2011, the Company reported revenue of $272.5 million, an

increase of 9.3% compared to $249.4 million for the 2010 third quarter.

For the third quarter ended September 30, 2011, the Company reported net income of $2.8 million, or

$0.15 per diluted share, versus net income of $1.7 million, or $0.09 per diluted share in the year-ago third quarter.

In September 2011, the Company's current Technical Services Agreement with IBM was extended from October 1 to December 30, 2011. IBM recently informed the Company that it has been selected to continue as a supplier. The Company expects a new three-year agreement with IBM to be executed during the fourth quarter of 2011.

Business Segment Discussion

CDI Engineering Solutions reported a 13.4% increase in third quarter revenue versus the prior-year third quarter driven by increases in the Process & Industrial and Aerospace verticals, which were slightly offset by decreases in the Infrastructure and Government Services verticals. Operating profit increased 47.9% to $5.8 million versus $4.0 million in the prior-year quarter driven primarily by increased revenue and improved SG&A.

CDI IT Solutions third quarter revenue increased slightly versus the year-ago third quarter driven by

growth in a large national account, which was offset by decreases in demand for outsourcing and by the completion of a large staffing project. Operating profit increased 6.9% to $4.2 million versus $3.9 million in the prior-year third quarter due primarily to a favorable non-income tax ruling of $0.4 million.

Management Recruiters International, Inc. third quarter revenue increased 10.2% versus the prior-year third quarter driven by increases in contract staffing revenue, but offset somewhat by decreases in franchise royalty revenue. Operating profit increased 19.0% to $2.3 million versus $1.9 million in the prior-year quarter due primarily to SG&A improvements.

UK-based AndersElite third quarter revenue increased 23.5% versus the prior-year third quarter reflecting increases in contract staffing and in permanent placement. The group’s operating loss of $0.4 million improved versus the year-ago third quarter operating loss of $1.6 million due to the growth in contract staffing and permanent placement revenue.

Business Outlook

For the fourth quarter ending December 31, 2011, the Company anticipates revenue increasing in the

range of 5% to 8% compared to the year-ago fourth quarter.

Tags:

Articles similar to

Articles similar to