CDI Corp. reports Q2 2014 results revealing a 7.9% revenue increase
Second Quarter Highlights
Revenue of $284.3 million, an increase of 7.9% versus second quarter 2013
Gross profit margin of 18.6% versus 19.6% for second quarter 2013
Operating profit of $7.0 million for second quarter 2014 versus $5.2 million for second quarter 2013
Earnings per diluted share of $0.22 versus $0.17 for second quarter 2013
"We are pleased with our second quarter revenue growth, including gains in all of our business segments. Strong demand and market share increases in our OGC and AIE operations allowed us to more than offset continuing revenue challenges in our government-related businesses and with our largest customer," said CDI Interim CEO and President and CFO, Robert Larney. "Operating profit rose 33% during the quarter due to volume increases and prudent expense management. Our continuing focus is to improve operating profit margins throughout our businesses."
For the second quarter of 2014, the Company reported revenue of $284.3 million, an increase of 7.9% versus the prior-year quarter. The Company reported second quarter 2014 operating profit of $7.0 million compared to operating profit of $5.2 million in the prior-year quarter. The Company reported second quarter 2014 net income of $4.4 million, or $0.22 per diluted share, versus net income of$3.4 million, or $0.17 per diluted share, in the prior-year quarter.
Business Segment Discussion
The Company's Global Engineering and Technology Solutions segment (GETS) reported a 5.4% increase in second quarter revenue to$84.3 million when compared to the prior-year quarter. Increased revenue in the Oil, Gas & Chemicals (OGC), Aerospace & Industrial Equipment (AIE), and Hi-Tech verticals was partially offset by declines in the infrastructure and government services businesses, both reported in "Other." Operating profit was $2.2 million versus $2.8 million in the prior-year quarter.
The Company's Professional Staffing Services segment (PSS) reported a 9.5% revenue increase in the second quarter to $184.7 millionwhen compared to the prior-year quarter. Revenue increased 64% in OGC while AIE and "Other" grew at more modest rates in contrast to a decline in Hi-Tech. PSS operating profit was $6.9 million versus $5.2 million the prior-year quarter.
Management Recruiters International, Inc. (MRI) second quarter revenue increased 4.2% to $15.3 million compared to the prior-year second quarter, driven by an increase in contract staffing. Royalty and franchise fee revenue was essentially flat versus the year-ago quarter. MRI's second quarter operating profit was $1.8 million compared to $2.1 million in the prior-year quarter.
The Company anticipates revenues for the third quarter of 2014 in the range of $286 million to $296 million, compared to $277.9 millionin the prior-year third quarter.