Connecting to LinkedIn...

Blank

CDI Corp. Reports 2012 Third Quarter Results

CDI Corp. Reports 2012 Third Quarter Results

CDI Corp. has reported its financial results for the third quarter ended September 30, 2012.

2012 Third Quarter Key Points

• Revenue of $279.4 million, up 2.5% compared to the prior-year third quarter

• Gross profit margin of 19.6% compared to 21.2% in the same period last year

• Operating profit of $9.0 million versus $4.4 million in prior-year quarter, leading to an operating margin

of 3.2% versus 1.6% in the year ago period. Operating profit in the third quarter ended September 30,

2011, included $0.6 million of severance expense related to senior level executives

• Net income of $5.3 million, or $0.27 per diluted share, versus net income of $2.8 million, or $0.15 per diluted share, in the prior-year quarter. Net income in the third quarter ended September 30, 2011, included the benefit of an income tax credit of $0.3 million under the Hiring Incentives to Restore Employment (HIRE) Act.

“We are pleased with the Company’s third quarter performance as we achieved revenue growth within our target range, and operating income, net income and earnings per share all showed significant gains,” said CDI President and Chief Executive Officer, Paulett Eberhart. “We reported solid revenue increases in each of our strategic industry verticals, and we continued to focus aggressively on cost containment efforts that are appropriate with current economic conditions.”

Business Segment Discussion The Company’s Global Engineering and Technology Solutions segment (GETS) reported revenue of $83.6 million in the third quarter, essentially flat compared to the prior-year third quarter. Revenue rose in each of the segment’s three strategic verticals, Oil, Gas & Chemicals, Aerospace & Industrial Equipment, and Hi- Tech, but was offset by continued weakness in the infrastructure business results in the “Other” vertical.

Operating profit increased 30.3% to $7.5 million versus the prior-year third quarter driven by lower operating expenses related to the restructuring announced in December 2011 as well as by additional cost savings realized during the quarter.

The Company’s Professional Services Staffing segment (PSS) reported a 4.0% increase in third quarter revenue versus the prior-year third quarter. PSS revenue growth was driven by gains in all three strategic verticals, Oil, Gas & Chemicals, Aerospace & Industrial Equipment, and Hi-Tech, partially offset by lower revenues in the “Other” vertical. Operating profit was $4.5 million during the third quarter of 2012, an increase of 9.7% versus the 2011 third quarter. Improvement in PSS operating profit was driven by lower operating expenses related to the 2011 restructuring as well as by additional expense reductions realized during the quarter.

The Company’s franchised Management Recruiters International, Inc. segment (MRI) reported a 1.3% decline in third quarter revenue versus the prior-year third quarter due to lower royalty and franchise fee revenue. Operating profit increased 10.8% to $2.7 million versus the prior year quarter driven primarily by lower operating expenses related the 2011 restructuring.

Business Outlook

For the fourth quarter ending December 31, 2012, CDI anticipates a revenue increase in the range of 0% to 2% compared to the year-ago fourth quarter.

Tags:

Articles similar to

Articles similar to