FORT LAUDERDALE, Fla.,
Oct. 27 /PRNewswire-FirstCall/ -- SFN
Group Inc. (NYSE: SFN) today announced financial results for the
third quarter ended September 26,
2010.
SFN Group president and CEO Roy
Krause commented, "Our third quarter results again reflect
improving industry trends and disciplined strategy execution.
Our team continues to effectively drive revenue growth across
the business, while improving gross profit margins and managing
expenses. Adjusted EBITDA as a percentage of revenue
increased to 3.6% and we achieved strong operating cash flow."
FINANCIAL HIGHLIGHTS
- Third quarter 2010 revenues were $527
million compared with $420
million last year.
- Earnings from continuing operations in the third quarter were
$6.0 million, or $0.11 per share, compared with breakeven results,
in the prior year.
- Adjusted earnings from continuing operations (defined below) in
the third quarter were $6.0 million,
or $0.11 per share, compared with
adjusted earnings from continuing operations in the same prior year
period of $0.5 million, or
$0.01 per share.
- Adjusted EBITDA (defined below) in the third quarter was
$18.9 million, or 3.6% of revenues,
compared with $9.2 million, or 2.2%
of revenues, in the prior year.
- Total debt was $33.0 million at
the end of the third quarter. Availability under the credit
facility was $134.1 million as of the
end of the quarter.
Krause continued, "Long-term industry dynamics are positive and
current industry trends continue to improve even in the face of
slower U.S. economic growth. Our business is positioned well
to respond to market opportunities and we continue to invest in
strategic growth areas such as recruitment process outsourcing and
professional services where we have leading market positions."
THIRD QUARTER OPERATING PERFORMANCE
In the third quarter, Professional Services revenues were up
37.7% compared with the same prior year period. Professional
Services represented 47.8% of total Company revenues and
experienced increases due to the first quarter 2010 Tatum LLC
acquisition and continued year over year growth in all skills and
services. Gross profit margin of 26.7% is up 230 basis points
from the same period last year, primarily as a result of improved
temporary staffing margins and growth in higher margin outsourcing
and permanent placement services. Segment operating profit was
$11.8 million in the third quarter or
4.7% of revenues, compared with $7.1
million or 3.9% of revenues in the prior year.
Staffing Services revenues increased 16.0% year over year in the
third quarter compared with the same period last year. Gross
profit margins increased 90 basis points from the same period last
year primarily as a result of increased pay/bill spreads.
SG&A increased modestly compared with the prior year,
allowing segment operating profit to increase to $5.9 million or 2.1% of revenues, compared with
$0.2 million, or 0.1% of revenues,
last year.
OUTLOOK
Revenue trends in the first three weeks of October reflect
normal seasonal ramping and continued growth in most areas of the
business resulting in anticipated growth in total Company revenues
for the fourth quarter of 3% to 5% compared with the third quarter
of 2010. Based on our third quarter results, continued revenue
growth trends and improving operating leverage, we now anticipate
that we will achieve results in the upper half of our full year
Adjusted EBITDA target range of 2.75% to 3.0% for 2010.
INVITATION TO CONFERENCE CALL
Management will host its conference call on October 28, 2010 at 9:00
a.m. Eastern time to discuss information contained in this
release. The call may be accessed in one of the following ways:
Via the Telephone:
Please dial 1-(800) 230-1093
The conference call leader is Roy
Krause
The pass code: SFN Group Third Quarter Earnings Call
Via the Internet:
You may access the call via the Internet through the Company's
Web site: www.sfngroup.com.
Replay:
A replay of the call will be available one hour after the live
call has ended. You may listen to the replay of the call over the
Internet through www.sfngroup.com.
ABOUT SFN GROUP, Inc.
SFN Group (NYSE: SFN) is a strategic workforce
solutions company that provides professional services and general
staffing to help businesses more effectively source, deploy and
manage people and the work they do. As an industry pioneer,
SFN Group has sourced, screened and placed millions of individuals
in temporary, temp-to-hire and full-time jobs for more than 60
years.
With approximately 550 locations in the United States and Canada, SFN delivers strategic workforce
solutions that improve business performance. From outsourcing
to technology to professional services to staffing, SFN delivers
the best combination of people, performance and service to improve
the way work gets done. It provides its services to
approximately 8,000 customers, from Fortune 500 companies to a wide
range of small and mid-size organizations. The company
employs more than 160,000 people annually through its network and
is one of North America's largest
employers. SFN provides its solutions through a family of
specialized businesses: Technisource, Tatum, The Mergis
Group, Todays Office Professionals, SourceRight Solutions and
Spherion Staffing Services. To learn more, visit
www.sfngroup.com.
This release contains statements that are forward looking in
nature and, accordingly, are subject to risks and uncertainties.
Factors that could cause future results to differ from current
expectations include risks associated with: Competition – our
business operates in highly competitive markets with low barriers
to entry and we may be unable to compete successfully against
existing or new competitors; Economic conditions – if the current
economic downturn continues for a significant period or there is
further deterioration in the economy, we could experience lower
demand from customers and lower revenues; Government Regulation -
government regulation may significantly increase our costs,
including payroll-related costs and unemployment taxes; Third-Party
Vendor Managers – providing our services through third-party vendor
managers may expose us to financial losses; Customers – a loss of
customers may result in a material impact on our results of
operations; Debt and debt compliance – market conditions and
failure to meet certain covenant requirements could impact the
amount of availability we may borrow under our revolving lines of
credit and the cost of our borrowings; Business strategy – we may
not achieve the intended effects of our business strategy;
Termination provisions - certain customer contracts contain
termination provisions and pricing risks that could decrease
revenues, profitability and cash flow; Failure to perform – our
failure or inability to perform under customer contracts could
result in damage to our reputation and give rise to legal claims;
Acquisitions – acquisitions could have a material adverse effect on
our financial condition, results of operation and cash flows;
Business interruptions – business interruptions could have an
adverse affect on our operations; Personnel - our business is
dependent upon the availability of qualified personnel and we may
lose key personnel which could cause our business to suffer; Tax
filings – regulatory challenges to our tax filing positions could
result in additional taxes; Litigation – we may be exposed to
employment–related claims and costs and we are a defendant in a
variety of litigation and other actions from time to time; and
International operations – we are subject to business risks
associated with our operations in Canada, which could make those operations
significantly more costly. These and additional factors discussed
in this release and in SFN's filings with the Securities and
Exchange Commission could cause the Company's actual results to
differ materially from any projections contained in this
release.
SFN Group Inc. prepares its financial statements in
accordance with generally accepted accounting principles (GAAP).
Adjusted earnings (loss) from continuing operations is a
non-GAAP financial measure, which excludes certain non-operating
related items. Items excluded from the calculation of
adjusted earnings (loss) from continuing operations include
restructuring and other charges related to acquisition transaction
and integration expenses and cost reduction initiatives.
Adjusted EBITDA from continuing operations is a non-GAAP
financial measure which excludes interest, restructuring and other
charges, taxes, depreciation and amortization from earnings (loss)
from continuing operations. Adjusted earnings (loss) and
adjusted EBITDA from continuing operations are key measures used by
management to evaluate its operations. Adjusted earnings
(loss) and adjusted EBITDA from continuing operations should not be
considered measures of financial performance in isolation or as an
alternative to net earnings (loss) from continuing operations or
net earnings (loss) as determined in the Statement of Operations in
accordance with GAAP, and, as presented, may not be comparable to
similarly titled measures of other companies.
SFN GROUP,
INC AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited,
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
26,
|
|
September
27,
|
|
|
2010
|
|
2009
|
|
Revenues(1)
|
$
|
527,123
|
|
$
|
420,197
|
|
Cost of services
|
|
414,465
|
|
|
338,558
|
|
Gross
profit(2)
|
|
112,658
|
|
|
81,639
|
|
Selling, general and
administrative expenses
|
|
98,383
|
|
|
77,460
|
|
Amortization of
intangibles
|
|
2,105
|
|
|
1,624
|
|
Interest expense
|
|
1,574
|
|
|
1,228
|
|
Interest income
|
|
(34)
|
|
|
(41)
|
|
Restructuring and other
charges
|
|
-
|
|
|
896
|
|
|
|
102,028
|
|
|
81,167
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations before income taxes
|
|
10,630
|
|
|
472
|
|
Income tax expense
|
|
(4,666)
|
|
|
(525)
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
5,964
|
|
|
(53)
|
|
Earnings from
discontinued operations, net of tax
|
|
-
|
|
|
-
|
|
Net earnings (loss)
|
$
|
5,964
|
|
$
|
(53)
|
|
|
|
|
|
|
|
|
Earnings (loss) per share, Basic
and Diluted:
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
0.11
|
|
$
|
-
|
|
Earnings from
discontinued operations
|
|
-
|
|
|
-
|
|
|
$
|
0.11
|
|
$
|
-
|
|
|
|
|
|
|
|
|
Weighted-average shares used in
computation of earnings per share:
|
|
|
|
|
|
|
Basic
|
|
52,702
|
|
|
51,743
|
|
Diluted
|
|
54,746
|
|
|
51,743
|
|
|
|
|
|
|
|
|
(1) Includes sales of all
company-owned and franchised offices and royalties on sales of
area-based franchised offices.
|
|
(2) Gross profit is revenues
less temporary employee wages, employment related taxes such as
FICA, federal and state unemployment taxes, medical and other
insurance for temporary employees, workers' compensation, benefits,
billable expenses and other direct costs.
|
|
|
|
|
|
|
|
SFN GROUP,
INC AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited,
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
26,
|
|
September
27,
|
|
|
2010
|
|
2009
|
|
Revenues(1)
|
$
|
1,504,213
|
|
$
|
1,255,246
|
|
Cost of services
|
|
1,201,903
|
|
|
1,007,356
|
|
Gross
profit(2)
|
|
302,310
|
|
|
247,890
|
|
Selling, general and
administrative expenses
|
|
278,686
|
|
|
243,923
|
|
Amortization of
intangibles
|
|
6,128
|
|
|
4,879
|
|
Interest expense
|
|
4,723
|
|
|
2,713
|
|
Interest income
|
|
(92)
|
|
|
(131)
|
|
Restructuring and other
charges
|
|
3,302
|
|
|
5,069
|
|
|
|
292,747
|
|
|
256,453
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations before income taxes
|
|
9,563
|
|
|
(8,563)
|
|
Income tax (expense)
benefit
|
|
(3,895)
|
|
|
2,460
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
5,668
|
|
|
(6,103)
|
|
Loss from
discontinued operations, net of tax
|
|
(160)
|
|
|
(399)
|
|
Net earnings (loss)
|
$
|
5,508
|
|
$
|
(6,502)
|
|
|
|
|
|
|
|
|
Earnings (loss) per share,
Basic:(3)
|
|
|
|
|
|
|
Earnings (loss)
from continuing operations
|
$
|
0.11
|
|
$
|
(0.12)
|
|
Loss from
discontinued operations
|
|
-
|
|
|
(0.01)
|
|
|
$
|
0.11
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
Earnings (loss) per share,
Diluted:(3)
|
|
|
|
|
|
|
Earnings (loss)
from continuing operations
|
$
|
0.10
|
|
$
|
(0.12)
|
|
Loss from discontinued
operations
|
|
-
|
|
|
(0.01)
|
|
|
$
|
0.10
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
Weighted-average shares used in
computation of loss per share:
|
|
|
|
|
|
|
Basic
|
|
52,363
|
|
|
52,022
|
|
Diluted
|
|
54,467
|
|
|
52,022
|
|
|
|
|
|
|
|
|
(1) Includes sales of all
company-owned and franchised offices and royalties on sales of
area-based franchised offices.
|
|
(2) Gross profit is revenues
less temporary employee wages, employment related taxes such as
FICA, federal and state unemployment taxes, medical and other
insurance for temporary employees, workers' compensation, benefits,
billable expenses and other direct costs.
|
|
(3) Loss per share amounts are
calculated independently for each component and may not add due to
rounding.
|
|
|
|
|
|
|
|
SFN GROUP,
INC AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
September
26,
|
|
December
27,
|
|
Assets
|
2010
|
|
2009
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,800
|
|
$
|
8,034
|
|
Receivables, less
allowance for doubtful accounts of $2,999 and $2,261,
respectively
|
|
297,926
|
|
|
228,180
|
|
Deferred tax
asset
|
|
11,684
|
|
|
10,236
|
|
Other current
assets
|
|
13,204
|
|
|
11,430
|
|
Total current assets
|
|
328,614
|
|
|
257,880
|
|
Property and equipment, net of
accumulated depreciation of $151,317
|
|
|
|
|
|
|
and $140,985
respectively
|
|
40,287
|
|
|
49,737
|
|
Deferred tax asset
|
|
131,153
|
|
|
135,695
|
|
Goodwill
|
|
31,073
|
|
|
810
|
|
Trade names and other
intangibles, net
|
|
62,909
|
|
|
57,427
|
|
Other assets
|
|
21,004
|
|
|
22,042
|
|
|
$
|
615,040
|
|
$
|
523,591
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Current portion of
long-term debt and revolving line of credit
|
$
|
30,734
|
|
$
|
12,352
|
|
Accounts payable
and other accrued expenses
|
|
85,181
|
|
|
57,403
|
|
Accrued salaries,
wages and payroll taxes
|
|
67,229
|
|
|
46,381
|
|
Accrued insurance
reserves
|
|
20,331
|
|
|
19,037
|
|
Accrued income tax
payable
|
|
-
|
|
|
806
|
|
Other current
liabilities
|
|
6,093
|
|
|
6,399
|
|
Total current liabilities
|
|
209,568
|
|
|
142,378
|
|
Long-term debt, net of current
portion
|
|
2,221
|
|
|
1,246
|
|
Accrued insurance reserves
|
|
18,745
|
|
|
14,617
|
|
Deferred compensation
|
|
15,827
|
|
|
14,702
|
|
Other long-term
liabilities
|
|
5,503
|
|
|
4,692
|
|
Total liabilities
|
|
251,864
|
|
|
177,635
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
Preferred stock,
par value $0.01 per share; authorized, 2,500,000 shares;
|
|
|
|
|
|
|
none
issued or outstanding
|
|
-
|
|
|
-
|
|
Common stock, par
value $0.01 per share; authorized, 200,000,000; issued
|
|
|
|
|
|
|
65,341,609 shares
|
|
653
|
|
|
653
|
|
Treasury stock, at
cost, 14,271,700 and 15,896,160 shares, respectively
|
|
(98,116)
|
|
|
(113,421)
|
|
Additional paid-in
capital
|
|
849,900
|
|
|
853,516
|
|
Accumulated
deficit
|
|
(392,702)
|
|
|
(398,210)
|
|
Accumulated other
comprehensive income
|
|
3,441
|
|
|
3,418
|
|
Total stockholders' equity
|
|
363,176
|
|
|
345,956
|
|
|
$
|
615,040
|
|
$
|
523,591
|
|
|
|
|
|
|
|
SFN GROUP,
INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL INFORMATION
|
|
(unaudited,
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
26,
|
|
|
September
27,
|
|
|
September
26,
|
|
|
September
27,
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (loss) from
continuing operations
|
$
|
5,964
|
|
$
|
493
|
|
$
|
7,679
|
|
$
|
(3,016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges,
net of tax benefit
|
|
-
|
|
|
(546)
|
|
|
(2,011)
|
|
|
(3,087)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
5,964
|
|
|
(53)
|
|
|
5,668
|
|
|
(6,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations, net of tax
|
|
-
|
|
|
-
|
|
|
(160)
|
|
|
(399)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
5,964
|
|
$
|
(53)
|
|
$
|
5,508
|
|
$
|
(6,502)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share-Diluted amounts (1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (loss) from
continuing operations
|
$
|
0.11
|
|
$
|
0.01
|
|
$
|
0.14
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges,
net of tax benefit
|
|
-
|
|
|
(0.01)
|
|
|
(0.04)
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
0.11
|
|
|
-
|
|
|
0.10
|
|
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
0.11
|
|
$
|
-
|
|
$
|
0.10
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in
computation of earnings
(loss) per share
|
|
54,746
|
|
|
51,743
|
|
|
54,467
|
|
|
52,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Earnings (loss) per
share amounts are calculated independently for each component and
may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF ADJUSTED
EBITDA TO EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
26,
|
|
|
September
27,
|
|
|
September
26,
|
|
|
September
27,
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from continuing
operations
|
$
|
18,936
|
|
$
|
9,162
|
|
$
|
38,210
|
|
$
|
19,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
34
|
|
|
41
|
|
|
92
|
|
|
131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,574)
|
|
|
(1,228)
|
|
|
(4,723)
|
|
|
(2,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
charges
|
|
-
|
|
|
(896)
|
|
|
(3,302)
|
|
|
(5,069)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(6,766)
|
|
|
(6,607)
|
|
|
(20,714)
|
|
|
(20,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
before income taxes
|
|
10,630
|
|
|
472
|
|
|
9,563
|
|
|
(8,563)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(4,666)
|
|
|
(525)
|
|
|
(3,895)
|
|
|
2,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
$
|
5,964
|
|
$
|
(53)
|
|
$
|
5,668
|
|
$
|
(6,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percentage of revenue
|
|
3.6%
|
|
|
2.2%
|
|
|
2.5%
|
|
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SFN GROUP,
INC. AND SUBSIDIARIES
|
|
SEGMENT
INFORMATION
|
|
(unaudited,
dollar amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
26,
|
|
June
27,
|
|
September
27,
|
|
|
September
26,
|
|
September
27,
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
$
|
251,857
|
|
$
|
250,087
|
|
$
|
182,911
|
|
$
|
721,519
|
|
$
|
559,372
|
|
|
Staffing Services
|
|
275,266
|
|
|
263,876
|
|
|
237,286
|
|
|
782,694
|
|
|
695,874
|
|
|
Segment revenue
|
$
|
527,123
|
|
$
|
513,963
|
|
$
|
420,197
|
|
$
|
1,504,213
|
|
$
|
1,255,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
$
|
67,219
|
|
$
|
63,949
|
|
$
|
44,574
|
|
$
|
181,115
|
|
$
|
141,094
|
|
|
Staffing Services
|
|
45,439
|
|
|
41,443
|
|
|
37,065
|
|
|
121,195
|
|
|
106,796
|
|
|
Segment gross
profit
|
$
|
112,658
|
|
$
|
105,392
|
|
$
|
81,639
|
|
$
|
302,310
|
|
$
|
247,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment SG&A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
$
|
(55,422)
|
|
$
|
(55,318)
|
|
$
|
(37,454)
|
|
$
|
(156,880)
|
|
$
|
(123,843)
|
|
|
Staffing Services
|
|
(39,529)
|
|
|
(36,774)
|
|
|
(36,912)
|
|
|
(111,706)
|
|
|
(110,853)
|
|
|
Segment
SG&A
|
$
|
(94,951)
|
|
$
|
(92,092)
|
|
$
|
(74,366)
|
|
$
|
(268,586)
|
|
$
|
(234,696)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
$
|
11,797
|
|
$
|
8,631
|
|
$
|
7,120
|
|
$
|
24,235
|
|
$
|
17,251
|
|
|
Staffing Services
|
|
5,910
|
|
|
4,669
|
|
|
153
|
|
|
9,489
|
|
|
(4,057)
|
|
|
Segment operating
profit
|
|
17,707
|
|
|
13,300
|
|
|
7,273
|
|
|
33,724
|
|
|
13,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate
costs
|
|
(3,432)
|
|
|
(3,518)
|
|
|
(3,094)
|
|
|
(10,100)
|
|
|
(9,227)
|
|
|
Amortization of
intangibles
|
|
(2,105)
|
|
|
(2,116)
|
|
|
(1,624)
|
|
|
(6,128)
|
|
|
(4,879)
|
|
|
Interest expense
|
|
(1,574)
|
|
|
(1,688)
|
|
|
(1,228)
|
|
|
(4,723)
|
|
|
(2,713)
|
|
|
Interest income
|
|
34
|
|
|
27
|
|
|
41
|
|
|
92
|
|
|
131
|
|
|
Restructuring and other
charges
|
|
-
|
|
|
(974)
|
|
|
(896)
|
|
|
(3,302)
|
|
|
(5,069)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before income
taxes
|
$
|
10,630
|
|
$
|
5,031
|
|
$
|
472
|
|
$
|
9,563
|
|
$
|
(8,563)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEMO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
|
26.7%
|
|
|
25.6%
|
|
|
24.4%
|
|
|
25.1%
|
|
|
25.2%
|
|
|
Staffing Services
|
|
16.5%
|
|
|
15.7%
|
|
|
15.6%
|
|
|
15.5%
|
|
|
15.3%
|
|
|
Total SFN Group,
Inc.
|
|
21.4%
|
|
|
20.5%
|
|
|
19.4%
|
|
|
20.1%
|
|
|
19.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment SG&A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
|
22.0%
|
|
|
22.1%
|
|
|
20.5%
|
|
|
21.7%
|
|
|
22.1%
|
|
|
Staffing Services
|
|
14.4%
|
|
|
13.9%
|
|
|
15.6%
|
|
|
14.3%
|
|
|
15.9%
|
|
|
Total SFN Group,
Inc.
|
|
18.0%
|
|
|
17.9%
|
|
|
17.7%
|
|
|
17.9%
|
|
|
18.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
|
4.7%
|
|
|
3.5%
|
|
|
3.9%
|
|
|
3.4%
|
|
|
3.1%
|
|
|
Staffing Services
|
|
2.1%
|
|
|
1.8%
|
|
|
0.1%
|
|
|
1.2%
|
|
|
(0.6%)
|
|
|
Total SFN Group,
Inc.
|
|
3.4%
|
|
|
2.6%
|
|
|
1.7%
|
|
|
2.2%
|
|
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue per billing
day:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services
|
$
|
3,998
|
|
$
|
3,938
|
|
$
|
2,903
|
|
$
|
3,797
|
|
$
|
2,944
|
|
|
Staffing Services
|
$
|
4,369
|
|
$
|
4,156
|
|
$
|
3,766
|
|
$
|
4,119
|
|
$
|
3,662
|
|
|
Total SFN Group, Inc.
(1)
|
$
|
8,367
|
|
$
|
8,094
|
|
$
|
6,670
|
|
$
|
7,917
|
|
$
|
6,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow and Other
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
$
|
13,239
|
|
$
|
(91)
|
|
$
|
(7,822)
|
|
$
|
16,863
|
|
$
|
30,574
|
|
|
Capital expenditures
|
$
|
1,284
|
|
$
|
1,231
|
|
$
|
303
|
|
$
|
3,025
|
|
$
|
1,834
|
|
|
Depreciation and
amortization
|
$
|
6,766
|
|
$
|
7,056
|
|
$
|
6,607
|
|
$
|
20,714
|
|
$
|
20,068
|
|
|
DSO
|
|
52
|
|
|
50
|
|
|
50
|
|
|
52
|
|
|
50
|
|
|
Billing Days
|
|
63.0
|
|
|
63.5
|
|
|
63.0
|
|
|
190.0
|
|
|
190.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Segment Revenue per
billing day is calculated independently for each segment and may
not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SFN GROUP,
INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION
|
|
(unaudited,
dollar amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 26,
2010
|
|
|
June 27,
2010
|
|
|
September
27, 2009
|
|
September
26, 2010
|
|
September
27, 2009
|
|
Professional
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Skill:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Technology
|
$
|
128,413
|
|
$
|
126,972
|
|
$
|
109,155
|
|
$
|
373,379
|
|
$
|
338,533
|
|
|
Finance &
Accounting
|
|
45,381
|
|
|
43,076
|
|
|
20,490
|
|
|
123,493
|
|
|
65,337
|
|
|
Administration
|
|
15,189
|
|
|
14,985
|
|
|
10,341
|
|
|
44,135
|
|
|
39,664
|
|
|
Other
|
|
62,874
|
|
|
65,054
|
|
|
42,925
|
|
|
180,512
|
|
|
115,838
|
|
|
Segment
Revenues
|
$
|
251,857
|
|
$
|
250,087
|
|
$
|
182,911
|
|
$
|
721,519
|
|
$
|
559,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
$
|
192,831
|
|
$
|
190,464
|
|
$
|
143,415
|
|
$
|
556,035
|
|
$
|
455,869
|
|
|
Outsourcing &
Other
|
|
51,634
|
|
|
53,584
|
|
|
34,647
|
|
|
147,613
|
|
|
88,834
|
|
|
Permanent Placement
|
|
7,392
|
|
|
6,039
|
|
|
4,849
|
|
|
17,871
|
|
|
14,669
|
|
|
Segment
Revenues
|
$
|
251,857
|
|
$
|
250,087
|
|
$
|
182,911
|
|
$
|
721,519
|
|
$
|
559,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin by
Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As % of Applicable
Revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
|
25.0%
|
|
|
23.9%
|
|
|
23.2%
|
|
|
23.8%
|
|
|
23.6%
|
|
|
Outsourcing &
Other
|
|
22.4%
|
|
|
23.2%
|
|
|
18.5%
|
|
|
21.0%
|
|
|
21.3%
|
|
|
Permanent Placement
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
Total Professional
Services
|
|
26.7%
|
|
|
25.6%
|
|
|
24.4%
|
|
|
25.1%
|
|
|
25.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per billing day by
Skill: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information
Technology
|
$
|
2,038
|
|
$
|
2,000
|
|
$
|
1,733
|
|
$
|
1,965
|
|
$
|
1,782
|
|
|
Finance &
Accounting
|
$
|
720
|
|
$
|
678
|
|
$
|
325
|
|
$
|
650
|
|
$
|
344
|
|
|
Administration
|
$
|
241
|
|
$
|
236
|
|
$
|
164
|
|
$
|
232
|
|
$
|
209
|
|
|
Other
|
$
|
998
|
|
$
|
1,024
|
|
$
|
681
|
|
$
|
950
|
|
$
|
610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per billing day by
Service: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
$
|
3,061
|
|
$
|
2,999
|
|
$
|
2,276
|
|
$
|
2,927
|
|
$
|
2,399
|
|
|
Outsourcing &
Other
|
$
|
820
|
|
$
|
844
|
|
$
|
550
|
|
$
|
777
|
|
$
|
468
|
|
|
Permanent Placement
|
$
|
117
|
|
$
|
95
|
|
$
|
77
|
|
$
|
94
|
|
$
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staffing
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Skill:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clerical
|
$
|
145,438
|
|
$
|
141,808
|
|
$
|
135,650
|
|
$
|
426,139
|
|
$
|
424,606
|
|
|
Light Industrial
|
|
129,828
|
|
|
122,068
|
|
|
101,636
|
|
|
356,555
|
|
|
271,268
|
|
|
Segment
Revenues
|
$
|
275,266
|
|
$
|
263,876
|
|
$
|
237,286
|
|
$
|
782,694
|
|
$
|
695,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
$
|
273,364
|
|
$
|
261,904
|
|
$
|
235,937
|
|
$
|
776,962
|
|
$
|
691,441
|
|
|
Permanent Placement
|
|
1,902
|
|
|
1,972
|
|
|
1,349
|
|
|
5,732
|
|
|
4,433
|
|
|
Segment
Revenues
|
$
|
275,266
|
|
$
|
263,876
|
|
$
|
237,286
|
|
$
|
782,694
|
|
$
|
695,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin by
Service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As % of Applicable
Revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
|
15.9%
|
|
|
15.1%
|
|
|
15.1%
|
|
|
14.9%
|
|
|
14.8%
|
|
|
Permanent Placement
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
Total Staffing
Services
|
|
16.5%
|
|
|
15.7%
|
|
|
15.6%
|
|
|
15.5%
|
|
|
15.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per billing day by
Skill: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clerical
|
$
|
2,309
|
|
$
|
2,233
|
|
$
|
2,153
|
|
$
|
2,243
|
|
$
|
2,235
|
|
|
Light Industrial
|
$
|
2,061
|
|
$
|
1,922
|
|
$
|
1,613
|
|
$
|
1,877
|
|
$
|
1,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per billing day by
Service: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Staffing
|
$
|
4,339
|
|
$
|
4,124
|
|
$
|
3,745
|
|
$
|
4,089
|
|
$
|
3,639
|
|
|
Permanent Placement
|
$
|
30
|
|
$
|
31
|
|
$
|
21
|
|
$
|
30
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Segment Revenue per
billing day is calculated independently for each segment and may
not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE SFN Group, Inc.
Copyright . 27 PR Newswire