CDI Corp announces Q3 results
For the third quarter 2013, the Company reported revenue of $277.9 million, a decrease of 0.5% versus the year-ago quarter. The Company reported third quarter 2013 operating profit of $6.9 million compared to an operating profit of $9.0 million in the prior-year third quarter. The Company reported third quarter 2013 net income of $4.5 million, or $0.23 per diluted share, versus net income of $5.3 million, or $0.27 per diluted share, in the prior-year quarter.
Business Segment Discussion The Company’s Global Engineering and Technology Solutions segment (GETS) reported third quarter revenue of $81.5 million, a decrease of 2.5% when compared to the prior-year quarter. Increased revenue in the Oil, Gas & Chemicals vertical (OGC) was offset by declines in Aerospace & Industrial Equipment (AIE), Hi-Tech and the infrastructure and government services businesses reported in “Other.” Operating profit decreased to $6.5 million compared to $7.5 million in the prior-year third quarter, reflecting lower gross profit margins partially offset by reduced operating expenses.
The Company’s Professional Services Staffing segment (PSS) reported a 2.0% revenue increase in the third quarter to $182.0 million when compared to the prior-year quarter. Revenue gains in the OGC vertical and “Other” were partially offset by declines in the AIE and Hi-Tech verticals. PSS operating profit decreased to $4.2 million versus $4.5 million in the prior-year third quarter, driven primarily by increased operating expenses.
Management Recruiters International (MRI) third quarter revenue decreased 17.5% to $14.4 million, compared to the prior-year quarter, driven by lower income in both revenue categories. MRI’s third quarter operating profit was $2.2 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 fourth quarter of 2013 in the range of $263 million to $273 million, compared to $270.5 million in the year-ago fourth quarter.
Fourth Quarter Settlement In October 2013, the Company entered into a settlement agreement with a third party to resolve claims pursued by the Company. Under this agreement, the Company received a favorable settlement payment in the amount of $3.25 million, which will be reflected in fourth quarter 2013 results.