| | Exhbit 99.1 |
| | Investor Contact: | Randy Atkinson |
| | | (954) 308-7639 |
| | | randalatkinson@spherion.com |
| |
| | Media Contact: | Lesly Cardec |
| FOR IMMEDIATE RELEASE | | (800) 422-3819 |
| | | lesleycardec@spherion.com |
SPHERION ANNOUNCES SECOND QUARTER 2009 FINANCIAL RESULTS
FORT LAUDERDALE, Fla., July 29, 2009 — Spherion Corporation (NYSE: SFN) today announced financial results for the second quarter ended June 28, 2009.
Spherion president and CEO Roy Krause commented, “We are encouraged with our quarterly results as we exceeded our recession adjusted 2.0% EBITDA target, reported positive earnings and brought net debt close to zero.”
FINANCIAL HIGHLIGHTS
Second quarter 2009 revenues were $409 million, compared with $563 million last year.
Earnings from continuing operations in the second quarter were $0.4 million, or $0.01 pershare, compared with earnings of $5.3 million, or $0.10 per share, in the prior year.
Adjusted earnings from continuing operations (defined below) in the second quarter were $0.6million, or $0.01 per share, compared with adjusted earnings in the same prior year period of$4.9 million, or $0.09 per share.
Adjusted EBITDA (defined below) in the second quarter was $9.4 million, or 2.3% of revenues,compared with $16.6 million, or 2.9% of revenues, in the prior year.
Revenues for the first six months of 2009 were $835 million compared with $1,139 million forthe same period in 2008. Adjusted earnings from continuing operations for the first six monthsof 2009 were a loss of $3.5 million, or ($0.07) per share, compared with $7.7 million, or$0.14 per share, for the same period in 2008. Adjusted EBITDA for the first six months was$10.0 million compared with $30.2 million for the same period last year.
Net debt was $0.7 million at the end of the second quarter, compared with $24.0 million at theend of the first quarter 2009.
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Krause continued, “There were signs in the quarter that the demand for our services was beginning to stabilize, not the least of which were our monthly revenue per day trends. Total Company revenues per day during June were only 1% less than during March and Staffing Services revenues per day were actually higher during June than during March. Commercial staffing services, which we provide through our Staffing Services segment, are typically the first to grow during the early stages of an economic recovery. We continue to be focused on our strategy to increase the percentage of professional revenues, enhance account diversification and expand margins.”
SECOND QUARTER OPERATING PERFORMANCE
Within Professional Services, second quarter revenues were down 30.3% compared with the same prior year period and 5.8% compared with the prior quarter. Gross profit margins in second quarter 2009 increased to 27.6% compared with 26.6% in the prior quarter reflecting lower state unemployment taxes (SUTA). Segment cost controls were excellent with SG&A declining by 14.0% sequentially from the prior quarter and representing 23.0% of revenues this quarter compared with 25.1% of revenues last quarter. Segment operating profit was $8.0 million, or 4.6% of revenues, compared with $13.8 million, or 5.6% of revenues, last year and $2.7 million last quarter, or 1.5% of revenues.
Within Staffing Services, year over year revenues in the quarter were down 25.1% compared with the same period last year and 2.5% compared with the prior quarter. Gross profit margins were 15.1% in second quarter 2009 compared with 14.2% in the prior quarter, primarily reflecting lower SUTA costs. SG&A expenses as a percentage of revenues were 15.4% in second quarter 2009 compared with 15.9% in the prior quarter reflecting a 5.8% sequential quarter reduction in SG&A. Segment operating profit was a loss of $0.7 million, or (0.3%) of revenues, compared with $1.6 million, or 0.5% of revenues, last year and a loss of $4.1 million last quarter, or (1.7%) of revenues.
OTHER ITEMS
As previously announced, the Company amended and extended its $250 million asset-based credit facility through July 2013 after the end of the quarter. At closing, excess availability was approximately $110 million (borrowings outstanding under the facility were less than $5 million). The revised credit facility should provide the Company with sufficient liquidity and flexibility to take advantage of growth opportunities as the economy recovers.
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Restructuring actions taken over the past nine months have essentially been completed and have positioned the Company's 2009 SG&A to be approximately $330 million, or 27% below total 2008 total SG&A of about $450 million. Cash requirements associated with previously recorded restructuring charges are expected to be $3 million during the second half of 2009.
The Company purchased 400,740 shares of its common stock during the second quarter of 2009 at an average price of $4.15 per share. The Company will continue to purchase shares under the Board of Directors’ authorization to offset the dilution of employee benefit plans.
OUTLOOK
Revenue per day trends in the first three weeks of July are flat compared with the second quarter average revenue per day. However, uncertain economic conditions make it difficult to predict the amount of demand that will be seen throughout the remainder of the third quarter and the rest of the year.
ABOUT SPHERION
Spherion Corporation (NYSE:SFN) is a leading recruiting and staffing company that provides integrated solutions and breakout specialties to meet the evolving needs of companies and job candidates. As an industry pioneer for more than 60 years, Spherion has sourced, screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs.
With approximately 600 locations in the United States and Canada, Spherion delivers innovative workforce solutions that improve business performance. Spherion provides its services to approximately 10,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing more than 215,000 people annually through its network, Spherion is one of North America’s largest employers. Spherion operates under the following brands: Spherion Staffing Services Group for administrative, clerical and light industrial workers; Technisource for technology professionals and solutions; The Mergis Group for accounting and finance and other professional positions; Todays Office Professionals for specialty administrative personnel; and Spherion Recruitment Process Outsourcing. To learn more, visitwww.spherion.com
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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; Economic conditions – any significant economic downturn could result in lower revenues or a significant reduction in demand from our customers may result in a material impact on the results of our operations; 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 requirements could impact our availability to borrow under our revolving lines of credit and the cost of our borrowings; Corporate strategy – we may not achieve the intended effects of our business strategy; Termination pro visions - certain contracts contain termination provisions and pricing risks; 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 – managing or integrating past and future acquisitions may strain our resources; Business interruptions – natural disasters or failures with hardware, software or utilities could adversely affect our ability to complete normal business processes; Tax filings – regulatory challenges to our tax filing positions could result in additional taxes; Personnel - our business is dependent upon the availability of qualified personnel and we may lose key personnel which could cause our business to suffer; 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; Government Regulation -government regulation may significantly increase our costs; Internat ional operations – we are subject to business risks associated with our operations in Canada, which could make those operations significantly more costly; and Common stock – the price of our common stock may fluctuate significantly, which may result in losses for our investors, and further decreases in the Company’s common stock price and market capitalization may impact our ability to comply with the NYSE continued listing standards. These and additional factors discussed in this release and in Spherion’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.
Spherion Corporation prepares its financial statements in accordance with generally accepted accounting principles (GAAP). Adjusted earnings from continuing operations is a non-GAAP financial measure, which excludes certain non-operating related charges. Items excluded from the calculation of adjusted earnings from continuing operations include restructuring and other charges related to cost reduction initiatives, and adjustments to tax valuation allowances. Adjusted EBITDA from continuing operations is a non-GAAP financial measure which excludes interest, restructuring and other charges, taxes, depreciation and amortization from earnings from continuing operations. Adjusted earnings and adjusted EBITDA from continuing operations are key measures used by management to evaluate its operations. Adjusted earnings and adjusted EBITDA from continuing operations should not be considered measures of financial performance in isolation or as an a lternative 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. This measure has material limitations. Items excluded from adjusted earnings from continuing operations are significant components in understanding and assessing financial performance.
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| | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in thousands, except per share amounts) |
| |
| |
| | Three Months Ended |
| | June 28, | | June 29, |
| | 2009 | | 2008 |
| Revenues(1) | $ | 409,127 | | | $ | 562,977 | |
| Cost of services | | 325,977 | | | | 432,790 | |
| Gross profit(2) | | 83,150 | | | | 130,187 | |
| Selling, general and administrative expenses | | 78,832 | | | | 118,875 | |
| Amortization of intangibles | | 1,625 | | | | 2,043 | |
| Interest expense | | 727 | | | | 1,575 | |
| Interest income | | (37 | ) | | | (72 | ) |
| Restructuring and other charges | | 374 | | | | 944 | |
| | | 81,521 | | | | 123,365 | |
| |
| Earnings from continuing operations before income taxes | | 1,629 | | | | 6,822 | |
| Income tax expense | | (1,226 | ) | | | (1,473 | ) |
| |
| Earnings from continuing operations | | 403 | | | | 5,349 | |
| Loss from discontinued operations, net of tax | | (116 | ) | | | (3,043 | ) |
| Net earnings | $ | 287 | | | $ | 2,306 | |
| |
| |
| Earnings per share, Basic and Diluted: | | | | | | | |
| Earnings from continuing operations | $ | 0.01 | | | $ | 0.10 | |
| Loss from discontinued operations | | - | | | | (0.06 | ) |
| | $ | 0.01 | | | $ | 0.04 | |
| |
| Weighted-average shares used in computation of earnings per share: | | | | | | | |
| Basic | | 52,030 | | | | 54,352 | |
| Diluted | | 53,528 | | | | 54,826 | |
| |
| (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 stateunemployment taxes, medical and other insurance for temporary employees, workers' compensation, |
| benefits, billableexpenses and other direct costs. |
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| | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in thousands, except per share amounts) |
| |
| | Six Months Ended |
| | June 28, | | June 29, |
| | 2009 | | 2008 |
| Revenues(1) | $ | 835,049 | | | $ | 1,139,440 | |
| Cost of services | | 668,798 | | | | 881,085 | |
| Gross profit(2) | | 166,251 | | | | 258,355 | |
| Selling, general and administrative expenses | | 166,463 | | | | 238,778 | |
| Amortization of intangibles | | 3,255 | | | | 4,087 | |
| Interest expense | | 1,485 | | | | 3,324 | |
| Interest income | | (90 | ) | | | (251 | ) |
| Restructuring and other charges | | 4,173 | | | | 1,940 | |
| | | 175,286 | | | | 247,878 | |
| |
| (Loss) earnings from continuing operations before income taxes | | (9,035 | ) | | | 10,477 | |
| Income tax benefit (expense) | | 2,985 | | | | (2,935 | ) |
| |
| (Loss) earnings from continuing operations | | (6,050 | ) | | | 7,542 | |
| Loss from discontinued operations, net of tax | | (399 | ) | | | (3,954 | ) |
| Net (loss) earnings�� | $ | (6,449 | ) | | $ | 3,588 | |
| |
| |
| (Loss) earnings per share, Basic:(3) | | | | | | | |
| (Loss) earnings from continuing operations | $ | (0.12 | ) | | $ | 0.14 | |
| Loss from discontinued operations | | (0.01 | ) | | | (0.07 | ) |
| | $ | (0.12 | ) | | $ | 0.07 | |
| |
| (Loss) earnings per share, Diluted:(3) | | | | | | | |
| (Loss) earnings from continuing operations | $ | (0.12 | ) | | $ | 0.14 | |
| Loss from discontinued operations | | (0.01 | ) | | | (0.07 | ) |
| | $ | (0.12 | ) | | $ | 0.06 | |
| |
| Weighted-average shares used in computation of (loss) earnings per share: | | | | | | | |
| Basic | | 52,162 | | | | 55,049 | |
| Diluted | | 52,162 | | | | 55,567 | |
| |
| |
| (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 stateunemployment taxes, medical and other insurance for temporary employees, workers' |
| compensation, benefits, billableexpenses and other direct costs. |
| |
| (3)Earnings per share amounts are calculated independently for each component and may not add due to rounding. |
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| | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (unaudited, in thousands, except share data) |
| |
| |
| |
| | June 28, | | December 28, |
| Assets | 2009 | | 2008 |
| Current Assets: | | | | | | | |
| Cash and cash equivalents | $ | 5,856 | | | $ | 7,601 | |
| Receivables, less allowance for doubtful accounts of $2,214 and $2,978, respectively | | 228,939 | | | | 269,203 | |
| Deferred tax asset | | 10,202 | | | | 11,198 | |
| Other current assets | | 10,751 | | | | 14,430 | |
| Total current assets | | 255,748 | | | | 302,432 | |
| Property and equipment, net of accumulated depreciation of $131,258 | | | | | | | |
| and $128,323 respectively | | 58,171 | | | | 67,269 | |
| Deferred tax asset | | 136,831 | | | | 132,412 | |
| Goodwill, trade names and other intangibles, net | | 62,977 | | | | 65,856 | |
| Other assets | | 15,868 | | | | 16,412 | |
| | $ | 529,595 | | | $ | 584,381 | |
| |
Liabilities and Stockholders' Equity | | | | | | | |
| Current Liabilities: | | | | | | | |
| Current portion of long-term debt and revolving lines of credit | $ | 4,978 | | | $ | 37,699 | |
| Accounts payable and other accrued expenses | | 64,584 | | | | 67,638 | |
| Accrued salaries, wages and payroll taxes | | 47,793 | | | | 49,888 | |
| Accrued insurance reserves | | 19,753 | | | | 20,145 | |
| Accrued income tax payable | | 568 | | | | 1,236 | |
| Other current liabilities | | 8,407 | | | | 13,234 | |
| Total current liabilities | | 146,083 | | | | 189,840 | |
| Long-term debt, net of current portion | | 1,583 | | | | 1,646 | |
| Accrued insurance reserves | | 15,309 | | | | 16,912 | |
| Deferred compensation | | 11,789 | | | | 12,404 | |
| Other long-term liabilities | | 5,557 | | | | 7,391 | |
| Total liabilities | | 180,321 | | | | 228,193 | |
| 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, 15,096,703 and 13,860,739 shares, respectively | | (109,379 | ) | | | (106,500 | ) |
| Additional paid-in capital | | 853,018 | | | | 850,653 | |
| Accumulated deficit | | (398,331 | ) | | | (391,882 | ) |
| Accumulated other comprehensive income | | 3,313 | | | | 3,264 | |
| Total stockholders' equity | | 349,274 | | | | 356,188 | |
| | $ | 529,595 | | | $ | 584,381 | |
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| | | | | | | | | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION |
| (unaudited, in thousands, except per share amounts) |
| |
| | Three Months Ended | | Six Months Ended |
| | June 28, | | June 29, | | June 28, | | June 29, |
| | 2009 | | 2008 | | 2009 | | 2008 |
| |
| Adjusted earnings (loss) from continuing operations | $ | 631 | | | $ | 4,860 | | | $ | (3,509 | ) | | $ | 7,659 | |
| Adjustment of tax valuation allowance | | - | | | | 1,064 | | | | - | | | | 1,064 | |
| Restructuring and other charges, net of tax benefit | | (228 | ) | | | (575 | ) | | | (2,541 | ) | | | (1,181 | ) |
| Earnings (loss) from continuing operations | | 403 | | | | 5,349 | | | | (6,050 | ) | | | 7,542 | |
| Loss from discontinued operations, net of tax | | (116 | ) | | | (3,043 | ) | | | (399 | ) | | | (3,954 | ) |
| Net earnings (loss) | $ | 287 | | | $ | 2,306 | | | $ | (6,449 | ) | | $ | 3,588 | |
| Per share-Diluted amounts(1): | | | | | | | | | | | | | | | |
| Adjusted earnings (loss) from continuing operations | $ | 0.01 | | | $ | 0.09 | | | $ | (0.07 | ) | | $ | 0.14 | |
| Adjustment of tax valuation allowance | | - | | | | 0.02 | | | | - | | | | 0.02 | |
| Restructuring and other charges, net of tax benefit | | - | | | | (0.01 | ) | | | (0.05 | ) | | | (0.02 | ) |
| Earnings (loss) from continuing operations | | 0.01 | | | | 0.10 | | | | (0.12 | ) | | | 0.14 | |
| Loss from discontinued operations, net of tax | | - | | | | (0.06 | ) | | | (0.01 | ) | | | (0.07 | ) |
| Net earnings (loss) | $ | 0.01 | | | $ | 0.04 | | | $ | (0.12 | ) | | $ | 0.06 | |
| |
| Weighted-average shares used in computation of earnings (loss) per share | | 53,528 | | | | 54,826 | | | | 52,162 | | | | 55,567 | |
| (1)Earnings 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 | | Six Months Ended |
| | June 28, | | June 29, | | June 28, | | June 29, |
| | 2009 | | 2008 | | 2009 | | 2008 |
| Adjusted EBITDA from continuing operations | $ | 9,367 | | | $ | 16,572 | | | $ | 9,994 | | | $ | 30,232 | |
| Interest income | | 37 | | | | 72 | | | | 90 | | | | 251 | |
| Restructuring and other charges | | (374 | ) | | | (944 | ) | | | (4,173 | ) | | | (1,940 | ) |
| Interest expense | | (727 | ) | | | (1,575 | ) | | | (1,485 | ) | | | (3,324 | ) |
| Depreciation and amortization(2) | | (6,674 | ) | | | (7,303 | ) | | | (13,461 | ) | | | (14,742 | ) |
| Earnings (loss) from continuing operations before income taxes | | 1,629 | | | | 6,822 | | | | (9,035 | ) | | | 10,477 | |
| Income tax (expense) benefit | | (1,226 | ) | | | (1,473 | ) | | | 2,985 | | | | (2,935 | ) |
| Earnings (loss) from continuing operations | $ | 403 | | | $ | 5,349 | | | $ | (6,050 | ) | | $ | 7,542 | |
| Adjusted EBITDA as a percentage of revenue | | 2.3 | % | | | 2.9 | % | | | 1.2 | % | | | 2.7 | % |
| (2)Includes depreciation and amortization from continuing operations only. |
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| | | | | | | | | | | | | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| SEGMENT INFORMATION |
| (unaudited, dollar amounts in thousands) |
| |
| | Three Months Ended | | Six Months Ended |
| | June 28, | | March 29, | | June 29, | | June 28, | | June 29, |
| | | 2009 | | | | 2009 | | | | 2008 | | | 2009 | | 2008 |
| Revenues: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 171,184 | | | $ | 181,772 | | | $ | 245,444 | | | $ | 352,956 | | | $ | 499,512 | |
| Staffing Services | | 237,943 | | | | 244,150 | | | | 317,533 | | | | 482,093 | | | | 639,928 | |
| Segment revenues | $ | 409,127 | | | $ | 425,922 | | | $ | 562,977 | | | $ | 835,049 | | | $ | 1,139,440 | |
| |
| Gross profit: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 47,253 | | | $ | 48,348 | | | $ | 75,183 | | | $ | 95,601 | | | $ | 150,763 | |
| Staffing Services | | 35,897 | | | | 34,753 | | | | 55,004 | | | | 70,650 | | | | 107,592 | |
| Segment gross profit | $ | 83,150 | | | $ | 83,101 | | | $ | 130,187 | | | $ | 166,251 | | | $ | 258,355 | |
| |
| Segment SG&A: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | (39,299 | ) | | $ | (45,674 | ) | | $ | (61,366 | ) | | $ | (84,973 | ) | | $ | (123,115 | ) |
| Staffing Services | | (36,550 | ) | | | (38,807 | ) | | | (53,445 | ) | | | (75,357 | ) | | | (107,383 | ) |
| Segment SG&A | $ | (75,849 | ) | | $ | (84,481 | ) | | $ | (114,811 | ) | | $ | (160,330 | ) | | $ | (230,498 | ) |
| |
| Segment operating profit (loss): | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 7,954 | | | $ | 2,674 | | | $ | 13,817 | | | $ | 10,628 | | | $ | 27,648 | |
| Staffing Services | | (653 | ) | | | (4,054 | ) | | | 1,559 | | | | (4,707 | ) | | | 209 | |
| Segment operating profit (loss) | | 7,301 | | | | (1,380 | ) | | | 15,376 | | | | 5,921 | | | | 27,857 | |
| |
| Unallocated corporate costs | | (2,983 | ) | | | (3,150 | ) | | | (4,064 | ) | | | (6,133 | ) | | | (8,280 | ) |
| Amortization of intangibles | | (1,625 | ) | | | (1,630 | ) | | | (2,043 | ) | | | (3,255 | ) | | | (4,087 | ) |
| Interest expense | | (727 | ) | | | (758 | ) | | | (1,575 | ) | | | (1,485 | ) | | | (3,324 | ) |
| Interest income | | 37 | | | | 53 | | | | 72 | | | | 90 | | | | 251 | |
| Restructuring and other charges | | (374 | ) | | | (3,799 | ) | | | (944 | ) | | | (4,173 | ) | | | (1,940 | ) |
| |
| Earnings (loss) from continuing | | | | | | | | | | | | | | | | | | | |
| operations before income taxes | $ | 1,629 | | | $ | (10,664 | ) | | $ | 6,822 | | | $ | (9,035 | ) | | $ | 10,477 | |
| |
| MEMO: | | | | | | | | | | | | | | | | | | | |
| Gross profit margin: | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 27.6 | % | | | 26.6 | % | | | 30.6 | % | | | 27.1 | % | | | 30.2 | % |
| Staffing Services | | 15.1 | % | | | 14.2 | % | | | 17.3 | % | | | 14.7 | % | | | 16.8 | % |
| Total Spherion | | 20.3 | % | | | 19.5 | % | | | 23.1 | % | | | 19.9 | % | | | 22.7 | % |
| |
| Segment SG&A: | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 23.0 | % | | | 25.1 | % | | | 25.0 | % | | | 24.1 | % | | | 24.6 | % |
| Staffing Services | | 15.4 | % | | | 15.9 | % | | | 16.8 | % | | | 15.6 | % | | | 16.8 | % |
| Total Spherion | | 18.5 | % | | | 19.8 | % | | | 20.4 | % | | | 19.2 | % | | | 20.2 | % |
| |
| Segment operating profit (loss): | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 4.6 | % | | | 1.5 | % | | | 5.6 | % | | | 3.0 | % | | | 5.5 | % |
| Staffing Services | | (0.3 | %) | | | (1.7 | %) | | | 0.5 | % | | | (1.0 | %) | | | 0.0 | % |
| Total Spherion | | 1.8 | % | | | (0.3 | %) | | | 2.7 | % | | | 0.7 | % | | | 2.4 | % |
| |
| Segment revenue per billing day: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 2,696 | | | $ | 2,863 | | | $ | 3,835 | | | $ | 2,779 | | | $ | 3,933 | |
| Staffing Services | $ | 3,747 | | | $ | 3,845 | | | $ | 4,961 | | | $ | 3,796 | | | $ | 5,039 | |
| Total Spherion(1) | $ | 6,443 | | | $ | 6,707 | | | $ | 8,797 | | | $ | 6,575 | | | $ | 8,972 | |
| |
| Supplemental Cash Flow and Other Information: | | | | | | | | | | | | | | | | | | | |
| Operating cash flow | $ | 26,474 | | | $ | 11,922 | | | $ | 28,377 | | | $ | 38,396 | | | $ | 36,640 | |
| Capital expenditures | $ | 703 | | | $ | 828 | | | $ | 2,256 | | | $ | 1,531 | | | $ | 4,863 | |
| Depreciation and amortization | $ | 6,674 | | | $ | 6,787 | | | $ | 7,303 | | | $ | 13,461 | | | $ | 14,742 | |
| DSO | | 51 | | | | 53 | | | | 52 | | | | 51 | | | | 52 | |
| Billing Days | | 63.5 | | | | 63.5 | | | | 64.0 | | | | 127.0 | | | | 127.0 | |
| (1)Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding. |
| 9 |
| | | | | | | | | | | | | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| (unaudited, dollar amounts in thousands) |
| |
| | Three Months Ended | | Six Months Ended |
| | June 28, 2009 | | March 29, 2009 | | June 29, 2008 | | June 28, 2009 | | June 29, 2008 |
| Professional Services | | | | | | | | | | | | | | | | | | | |
| Revenues by Skill: | | | | | | | | | | | | | | | | | | | |
| Information Technology | $ | 112,673 | | | $ | 117,297 | | | $ | 151,060 | | | $ | 229,970 | | | $ | 309,200 | |
| Finance & Accounting | | 22,990 | | | | 22,431 | | | | 29,584 | | | | 45,421 | | | | 58,412 | |
| Administration | | 18,848 | | | | 22,431 | | | | 33,520 | | | | 41,279 | | | | 65,452 | |
| Other | | 16,673 | | | | 19,613 | | | | 31,280 | | | | 36,286 | | | | 66,448 | |
| Segment Revenues | $ | 171,184 | | | $ | 181,772 | | | $ | 245,444 | | | $ | 352,956 | | | $ | 499,512 | |
| |
| Revenues by Service: | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 166,475 | | | $ | 176,661 | | | $ | 229,341 | | | $ | 343,136 | | | $ | 469,711 | |
| Permanent Placement | | 4,709 | | | | 5,111 | | | | 16,103 | | | | 9,820 | | | | 29,801 | |
| Segment Revenues | $ | 171,184 | | | $ | 181,772 | | | $ | 245,444 | | | $ | 352,956 | | | $ | 499,512 | |
| |
| Gross Profit Margin by Service: | | | | | | | | | | | | | | | | | | | |
| (As % of Applicable Revenues) | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | | 25.6 | % | | | 24.5 | % | | | 25.8 | % | | | 25.0 | % | | | 25.8 | % |
| Permanent Placement | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| Total Professional Services | | 27.6 | % | | | 26.6 | % | | | 30.6 | % | | | 27.1 | % | | | 30.2 | % |
| |
| Revenues per billing day by Skill:(1) | | | | | | | | | | | | | | | | | | | |
| Information Technology | $ | 1,774 | | | $ | 1,847 | | | $ | 2,360 | | | $ | 1,811 | | | $ | 2,435 | |
| Finance & Accounting | $ | 362 | | | $ | 353 | | | $ | 462 | | | $ | 358 | | | $ | 460 | |
| Administration | $ | 297 | | | $ | 353 | | | $ | 524 | | | $ | 325 | | | $ | 515 | |
| Other | $ | 263 | | | $ | 309 | | | $ | 489 | | | $ | 286 | | | $ | 523 | |
| |
Revenues per billing day by Service:(1) | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 2,622 | | | $ | 2,782 | | | $ | 3,583 | | | $ | 2,702 | | | $ | 3,699 | |
| Permanent Placement | $ | 74 | | | $ | 80 | | | $ | 252 | | | $ | 77 | | | $ | 235 | |
| |
| Staffing Services | | | | | | | | | | | | | | | | | | | |
| Revenues by Skill: | | | | | | | | | | | | | | | | | | | |
| Clerical | $ | 151,296 | | | $ | 161,158 | | | $ | 191,655 | | | $ | 312,454 | | | $ | 383,721 | |
| Light Industrial | | 86,647 | | | | 82,992 | | | | 125,878 | | | | 169,639 | | | | 256,207 | |
| Segment Revenues | $ | 237,943 | | | $ | 244,150 | | | $ | 317,533 | | | $ | 482,093 | | | $ | 639,928 | |
| |
| Revenues by Service: | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 236,629 | | | $ | 242,380 | | | $ | 314,030 | | | $ | 479,009 | | | $ | 631,879 | |
| Permanent Placement | | 1,314 | | | | 1,770 | | | | 3,503 | | | | 3,084 | | | | 8,049 | |
| Segment Revenues | $ | 237,943 | | | $ | 244,150 | | | $ | 317,533 | | | $ | 482,093 | | | $ | 639,928 | |
| |
| Gross Profit Margin by Service: | | | | | | | | | | | | | | | | | | | |
| (As % of Applicable Revenues) | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | | 14.6 | % | | | 13.6 | % | | | 16.4 | % | | | 14.1 | % | | | 15.8 | % |
| Permanent Placement | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| Total Staffing Services | | 15.1 | % | | | 14.2 | % | | | 17.3 | % | | | 14.7 | % | | | 16.8 | % |
| |
| Revenues per billing day by Skill:(1) | | | | | | | | | | | | | | | | | | | |
| Clerical | $ | 2,383 | | | $ | 2,538 | | | $ | 2,995 | | | $ | 2,460 | | | $ | 3,021 | |
| Light Industrial | $ | 1,365 | | | $ | 1,307 | | | $ | 1,967 | | | $ | 1,336 | | | $ | 2,017 | |
| |
| Revenues per billing day by Service:(1) | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 3,726 | | | $ | 3,817 | | | $ | 4,907 | | | $ | 3,772 | | | $ | 4,975 | |
| Permanent Placement | $ | 21 | | | $ | 28 | | | $ | 55 | | | $ | 24 | | | $ | 63 | |
| (1)Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding. |
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