Corporate Resource Services announces record revenues
Corporate Resource Services has also made substantial progress toward becoming current with its Securities and Exchange Commission (the "SEC") reports by finalizing its Annual Report on Form 10-K for the year ended January 3, 2014, the filing of which is imminent.
Revenue for the fiscal year 2013 ended January 3, 2014 was $819.7 million, an increase of $139.9 million, or 20.6 percent, as compared to fiscal 2012. The Company had 16.4 percent organic growth, with acquisitions accounting for $28.7 million in total revenue.
Gross profit for the fiscal year 2013 increased by $16.4 million, or 20.5 percent to $96.4 million, a gross margin of 11.8 percent.
For fiscal 2013, selling, general and administrative expenses and non-cash equity compensation increased by $9.2 million or 12.4 percent to $83.7 million, or 10.2 percent of revenues, as compared to $74.4 million, or 10.9 percent of revenue for fiscal 2012. The increase was primarily due to increased professional fees, an increase in stock-based compensation expenses of $4.4 million, NASDAQ listing fees in fiscal 2013, and costs relating to growth investments. This increase was offset by the Company's ability to curb and reduce non-personnel costs, including ongoing consolidation of Company offices and functions.
Sustained revenue growth has allowed the Company to better leverage its fixed costs as indicated by the year-over-year decrease in selling, general and administrative costs as a percentage of revenues. In addition, the Company has completed and continues to undertake initiatives to reduce selling, general and administrative costs through consolidation of select offices and administrative functions. We expect that the integration of recently acquired operations as well as the continued growth of revenues will continue to reduce selling, general and administrative costs as a percentage of revenues in 2014 and beyond.
Operating income for fiscal 2013 was $10.6 million, an improvement of $7.4 million compared to operating income of $3.2 million for fiscal 2012. The improvement in operating income reflects a 20.6 percent revenue growth and a decrease in depreciation and amortization expenses $(0.2) million to $1.8 million as compared to $2.0 million for fiscal year 2012, primarily due to the timing of acquisitions and the fluctuation in the amortization of acquisition-related long-lived assets.
Net income was $2.8 million, compared to a loss in fiscal 2012 of $1.7 million.
Adjusted EBITDA, a non-GAAP measure defined as earnings before interest, taxes, depreciation, amortization of identifiable intangibles, equity-based compensation expense, loss from equity investment and change in fair value of contingent consideration, was $17.8 million for fiscal 2013, an increase of 176% from $6.5 million in 2012.
"We are pleased with the strong 2013 results and to bring our 2013 audit to a close with the filing of our Form 10-K with the SEC," said John Messina, CEO of Corporate Resource Services. "While the past few months have been challenging on several fronts, we have continued to focus on executing our business strategy and moving the business forward."
Added Mr. Messina, "We have made strategic acquisitions to expand our footprint, establish strategic partnerships and to obtain technology that is complementary to our business. We are confident in our ability to execute our organic growth strategy, and continue to improve our margins through higher margin acquisitions outside the light industry segment of staffing. We have also maintained financial stability, and are focused on cultivating new banking relationships with major financial institutions to secure the capital resources necessary to position CRS for continued growth as we pursue niche acquisition opportunities. We remain focused on completing our 10-Q for 2014 first quarter, which we expect to file as soon as possible, but within 45 days."