CDI Corp. revenue decreases 13.2%
"We continue to make progress on the key elements of our transformation. The impact of our initiatives is not yet evident in our financial results, nor do these results reflect the potential of CDI," said Scott J. Freidheim, chief executive officer and president. "Our performance improvement program continues, with new talent additions, enhancements to our operating processes and systems, and advances in client service relationships. In addition, we continue to focus our corporate development to access new andcomplementary sources of profitable growth, and we today announce two transactions."
The second quarter saw revenue of $246.8m, a decrease of 13.2% versus second quarter 2014, adjusted EBITDA of $4.7 million versus $10.2 million in second quarter 2014 and adjusted earnings per diluted share of $0.00 versus $0.22 for second quarter 2014.
It entered definitive agreement to acquire India-based ScaleneWorks, a talent acquisition services company and initiated formation of Congruent Talent, a company created in partnership with two leading certified national minority suppliers to provide large enterprises with scalable and efficient fulfillment of skilled talent while meeting their supplier diversity program objectives
In the second quarter 2015, the Company's net loss attributable to CDI was $0.2 million versus net income attributable to CDI of $4.4 million in the prior-year second quarter. In the second quarter 2015, the Company's net earnings per diluted share were $(0.01) versus $0.22 per diluted share in the prior-year second quarter.
Global Engineering and Technology Solutions segment (GETS) reported $84.4 million in second quarter revenue, an increase of 0.2% versus the prior-year second quarter. Revenue growth in the Oil, Gas & Chemicals (OGC) vertical increased 13%, offsetting declines in the other verticals. GETS operating profit was $1.5 million compared to $2.2 million in the prior-year quarter. Second quarter 2014 operating profit included a $0.1 million restructuring charge.
Professional Staffing Services segment (PSS) reported $149.4 million in revenue for the second quarter 2015, a decrease of 19.1% compared to the prior-year second quarter with declines across our North American industry verticals and in our UK-based staffing business. PSS operating profit was $3.0 million versus $6.9 million in the prior-year second quarter.
Management Recruiters International, Inc. (MRI) reported second quarter 2015 revenue of $13.0 million, a decrease of 14.9% compared to the prior-year second quarter, driven primarily by a decline in contract staffing revenue. MRI's second quarter 2015 operating profit was $1.6 million compared to $1.8 million in the prior-year second quarter. During the quarter, MRI sold eight new franchises, leading to its second consecutive quarter of net franchise additions.
CDI ended the quarter with $39.2 million in cash and cash equivalents versus $36.3 million at the end of fourth quarter 2014, and$32.4 million at the end of second quarter 2014. Total liquidity, including availability under CDI's bank and credit facilities, totaled$98.2 million at June 30, 2015 versus $106.9 million at the end of fourth quarter 2014, and $102.6 million at the end of second quarter 2014. Net cash generated by operations during first half 2015 was $12.2 million versus $0.5 million generated in the prior-year period.
The Company anticipates revenue for the third quarter 2015 in the range of $240 million to $250 million. This guidance reflects expected continued weakness in our North American staffing business.