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CDI Corp Looking For Quicker Wins

CDI Corp Looking For Quicker & lsquo;Wins’

CDI Corp. Reports Second Quarter 2013 Results - Second Quarter Highlights

Revenue of $263.4 million, a decline of 4.0% versus the second quarter 2012

Gross profit margin of 19.6% versus 20.2% for the second quarter 2012

Operating and administrative expenses as a percentage of revenue of 17.6% versus 17.4% for the second quarter 2012

Earnings per share of $0.17 in the second quarter 2013 versus $0.25 for the second quarter 2012

“While we are making good progress with the execution of our strategy to grow our focus verticals in both engineering and program staffing, our second quarter results were below last year’s levels, as it is taking longer than expected to convert wins into revenues,” said CDI President and CEO Paulett Eberhart. “We anticipate our new wins to convert into revenue at a progressively faster pace through the third and fourth quarters. In addition, we saw declines in non-program staffing and MRI revenue as well as lower spending by our largest client and government accounts during the second quarter.”

For the second quarter 2013, the Company reported revenue of $263.4 million, a decrease of 4% versus the year-ago quarter. The Company reported second quarter 2013 operating profit of $5.2 million compared to an operating profit of $7.9 million in the prior-year second quarter. The Company reported second quarter 2013 net income of $3.4 million, or $0.17 per diluted share, versus net income of $5.0 million, or $0.25 per diluted share, in the prior-year quarter.

Business Segment Discussion

The Company’s Global Engineering and Technology Solutions segment (GETS) reported second quarter revenue of $80.0 million, a decrease of 1.0% when compared to the prior-year quarter. Increased revenue in the Oil, Gas & Chemicals (OGC) and Aerospace & Industrial Equipment (AIE) verticals was offset by declines in the infrastructure and government services businesses, both reported in “Other,” as well as by lower Hi-Tech revenue. Operating profit was flat at $6.0 million compared to the prior-year quarter, reflecting additional cost savings recognized during the quarter.

The Company’s Professional Services Staffing segment (PSS) reported a 3.7% revenue decrease in the second quarter to $168.8 million when compared to the prior-year quarter. Revenue gains in the OGC vertical were offset by lower revenue driven by project completions and weaker non-program staffing revenue in “Other,” as well as by declines in the Hi-Tech and AIE verticals. PSS operating profit fell to $3.4 million versus $5.1 million in the prior-year second quarter, driven primarily by the revenue decrease.

Management Recruiters International (MRI) second quarter revenue decreased 20.2% to $14.7 million, compared to the prior-year quarter, driven by lower income across all revenue categories. MRI’s second quarter operating profit was $2.3 million compared to $2.7 million in the prior-year quarter, driven primarily by the revenue decrease.

Business Outlook

The Company anticipates revenue for the third quarter of 2013 in the range of $263 million to $273 million, compared to $279.4 million in the year-ago third quarter.

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