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CDI Corp. Reports 2012 First Quarter Results

CDI Corp. Reports 2012 First Quarter Results

CDI Corp. has reported financial results for the first quarter ended March 31, 2012.

2012 First Quarter Key Points

Revenue of $280.6 million, up 9.3% compared to the prior-year first quarter, with all three segments reporting gains

Gross profit margin of 19.8% compared to 21.2% in the same period last year

Operating profit of $7.4 million up versus $2.8 million in prior-year quarter, leading to an operating margin of 2.6% versus 1.1% in the year-ago period

First quarter net income of $3.8 million, or $0.20 per diluted share

"The Company's strong first quarter performance reflects sales growth in all three business segments, and savings from the restructuring we announced last December contributed to significant operating margin expansion," said CDI President and Chief Executive Officer, Paulett Eberhart. "Going forward, we are focused on the successful execution of our strategic plan, designed to accelerate growth in targeted markets with a more efficient operating platform."

For the first quarter ended March 31, 2012, CDI reported revenue of $280.6 million, an increase of 9.3% compared to $256.6 million for the 2011 first quarter.

For the quarter ended March 31, 2012, CDI reported operating profit of $7.4 million versus $2.8 million in 2011. Net income in the first quarter of 2012 increased to $3.8 million, or $0.20 per diluted share, compared to $0.7 million, or $0.04 per diluted share in the prior-year first quarter.

Business Segment Discussion

On December 8, 2011, the Company announced business model and organizational changes aligned with a new strategic plan. Effective this quarter, the Company began reporting on three operating segments: Global Engineering and Technology Solutions (GETS) Professional Services Staffing (PSS) and Management Recruiters International, Inc. (MRI). The restructuring announced in December has resulted in reduced operating expenses, which favorably impacted operating profit in all three business segments.

The Company's Global Engineering and Technology Solutions segment (GETS) reported a 2.9% increase in first quarter revenue compared to the prior-year first quarter. Increases in the Oil, Gas and Chemical, and Hi-Tech verticals were somewhat offset by continued weakness in the Company's infrastructure business and a slight decline in the Aerospace and Industrial Equipment vertical. Operating profit increased 49.1% to $5.9 million versus the prior-year first quarter driven primarily by lower expenses.

The Company's Professional Services Staffing segment (PSS) reported a 12.2% increase in first quarter revenue versus the prior-year first quarter. PSS growth was driven by increased revenue in all three strategic verticals with particularly strong performance in the Oil, Gas and Chemical vertical. Operating profit more than doubled to $5.8 million versus the prior-year first quarter driven by the increased revenue and lower expenses.

The Company's franchised recruitment segment (MRI) reported a 12.2% increase in first quarter revenue versus the prior-year first quarter due largely to increases in contract staffing revenue. Operating profit increased 27.9% to $2.3 million versus the prior year driven by the increased revenue and lower expenses. 

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