| | | |
| | Investor Contact: | | Randy Atkinson |
| | | | (954) 308-7639 |
| | | | randalatkinson@spherion.com |
| |
| | Media Contact: | | Lesly Cardec |
| FOR IMMEDIATE RELEASE | | | (800) 422-3819 |
| | | | leslycardec@spherion.com |
SPHERION ANNOUNCES FOURTH QUARTER 2009 FINANCIAL RESULTS
FORT LAUDERDALE, Fla., February 3, 2010 — Spherion Corporation (NYSE: SFN) today announced financial results for the fourth quarter and fiscal year ended December 27, 2009.
Spherion president and CEO Roy Krause commented, “We are pleased with the Company’s fourth quarter operating performance. Revenues increased by more than 8% from the prior quarter and adjusted EBITDA, as a percentage of revenue, exceeded 3% for the quarter. We are optimistic that our business is well positioned for organic growth and EBITDA margin expansion as the economic recovery continues.”
FINANCIAL HIGHLIGHTS
- Fourth quarter 2009 revenues were $456 million, compared with $508 million last year.
- Earnings from continuing operations in the fourth quarter were $0.2 million, or $0.00 per share, compared with a loss of $126.2 million, or $2.45 per share, in the prior year.
- Adjusted earnings from continuing operations (defined below) in the fourth quarter were $3.2 million, or $0.06 per share, compared with adjusted earnings in the same prior year period of $0.8 million, or $0.02 per share.
- Adjusted EBITDA (defined below) in the fourth quarter was $14.8 million, or 3.2% of revenues, compared with $9.0 million, or 1.8% of revenues, in the prior year.
- Revenues for the full year 2009 were $1.7 billion compared with $2.2 billion for 2008. Adjusted earnings from continuing operations for the full year 2009 were $0.2 million, or $0.00 per share, compared with earnings of $12.6 million, or $0.24 per share, for 2008. Adjusted EBITDA for 2009 was $34.0 million compared with $54.6 million for 2008.
- Net debt was $5.6 million at the end of 2009, compared with $31.7 million at the end of 2008. Availability under the credit facility was $103.0 million as of the end of December.
Krause continued, “Our focused operating approach and expanded Professional Services business mix helped us achieve our adjusted EBITDA goal of 2.0% for the 2009 year. This level of EBITDA return is almost double the level achieved during the last economic downturn. The acquisition of Tatum announced earlier this week provides additional high margin professional services that will provide us the opportunity to accelerate our growth and operating leverage.”
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FOURTH QUARTER OPERATING PERFORMANCE
Within Professional Services, fourth quarter revenues were down 18.6% compared with the same prior year period, and were up 4.3% from the third quarter. Gross profit margins in fourth quarter 2009 were 27.9% compared with 26.8% in the third quarter. SG&A was up 4.2% sequentially compared with the third quarter and represented 22.3% of revenues this quarter, compared with 22.4% in the third quarter. Segment operating profit was $9.2 million, or 5.5% of revenues, compared with $7.1 million, or 3.4% of revenues, last year and $7.0 million in the third quarter, or 4.4% of revenues.
Year over year revenues in Staffing Services for the quarter were down 4.5% compared with the same period last year, and up 11.0% compared with the third quarter. Gross profit margins were 15.5% in fourth quarter 2009 compared with 14.9% in the third quarter. SG&A expenses as a percentage of revenues were 14.3% in fourth quarter 2009 compared with 14.8% in the third quarter. Segment operating profit was $3.4 million, or 1.2% of revenues, compared with $0.8 million, or 0.2% of revenues, last year and $0.2 million last quarter, or 0.1% of revenues.
OTHER ITEMS
The Company recorded restructuring and other charges during the quarter of $2.0 million ($1.2 million after tax or $0.02 per share) related primarily to adverse developments in a prior year legal matter and severance costs related to cost savings initiatives. Additionally, the Company partially wrote down the value attributed to the Todays Office Professionals tradename. The intangible impairment charge of $2.9, million ($1.8 million after tax or $0.03 per share) resulted from the planned 2010 movement of certain larger accounts historically serviced by Todays to the Company’s Spherion branded staffing operation.
The Company purchased 550,951 shares of its common stock during the fourth quarter of 2009 at an average price of $5.77 per share under the Board of Directors’ authorization to offset the dilution of employee benefit plans.
OUTLOOK
Revenues per day in January were about 5% lower than during the fourth quarter, consistent with a normal seasonal pull back in our industry. On a year over year basis, revenues per day in January were about flat compared with January 2009. However, Professional Services revenues per day were up about 1% compared with the fourth quarter and up about 2% compared with January 2009.
2
INVITATION TO CONFERENCE CALL
Management will host its conference call February 4, 2010 at 9:00 a.m. Eastern time to discuss information contained in this release and to discuss its previously announced acquisition of Tatum, LLC. Management will also discuss information related to that acquisition in a Power Point presentation posted in the Investor Relations section, Presentations page, of our websitewww.spherion.com. The call may be accessed in one of the following ways:
Via the Telephone:
Please dial 1-(800) 230-1766
The conference call leader is Roy Krause
The pass code: Spherion Earnings Call
Via the Internet:
You may access the call via the Internet through the Company’s Web site:www.spherion.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 throughwww.spherion.com.
ABOUT SPHERION
Spherion Corporation (NYSE:SFN) is a strategic workforce solutions company that provides recruiting, staffing, consulting and outsourcing 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 575 locations in the United States and Canada, Spherion delivers strategic workforce solutions that improve business performance. Spherion provides its services to approximately 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing more than 160,000 people annually through its network, Spherion is one of North America’s largest employers providing general staffing, technology services, professional services and 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 and we may be unable to compete successfully against existing or new competitors; Economic conditions – any further significant economic downturn could result in less demand from customers and lower revenues; 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 the amount of availability we may 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 provisions - certain customer 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 - governmen t regulation may significantly increase our costs; International 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. 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, impairment of goodwill and other intangibles, 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, impairment of goodwill and other intangibles, 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 ad justed 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. 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 |
| | December 27, | | December 28, |
| | 2009 | | 2008 |
| Revenues(1) | $ | 455,634 | | | $ | 507,541 | |
| Cost of services | | 364,379 | | | | 402,440 | |
| Gross profit(2) | | 91,255 | | | | 105,101 | |
| Selling, general and administrative expenses | | 81,765 | | | | 101,425 | |
| Goodwill and intangible asset impairment | | 2,900 | | | | 149,793 | |
| Amortization of intangibles | | 1,635 | | | | 2,018 | |
| Interest expense | | 1,413 | | | | 806 | |
| Interest income | | (42 | ) | | | (87 | ) |
| Restructuring and other charges | | 2,022 | | | | 9,487 | |
| | | 89,693 | | | | 263,442 | |
| |
| Earnings (loss) from continuing operations before income taxes | | 1,562 | | | | (158,341 | ) |
| Income tax (expense) benefit | | (1,383 | ) | | | 32,134 | |
| |
| Earnings (loss) from continuing operations | | 179 | | | | (126,207 | ) |
| Loss from discontinued operations, net of tax | | (5 | ) | | | (34 | ) |
| Net earnings (loss) | $ | 174 | | | $ | (126,241 | ) |
| |
| |
| Earnings (loss) per share, Basic and Diluted: | | | | | | | |
| Earnings (loss) from continuing operations | $ | - | | | $ | (2.45 | ) |
| Loss from discontinued operations | | - | | | | (0.00 | ) |
| | $ | - | | | $ | (2.45 | ) |
| |
| Weighted-average shares used in computation of earnings (loss) per share: | | | | | | | |
| Basic | | 51,174 | | | | 51,482 | |
| Diluted | | 53,044 | | | | 51,482 | |
| |
| |
| |
| (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. |
| |
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| | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in thousands, except per share amounts) |
| |
| | Twelve Months Ended |
| | December 27, | | December 28, |
| | 2009 | | 2008 |
| Revenues(1) | $ | 1,710,880 | | | $ | 2,189,156 | |
| Cost of services | | 1,371,735 | | | | 1,707,153 | |
| Gross profit(2) | | 339,145 | | | | 482,003 | |
| Selling, general and administrative expenses | | 325,688 | | | | 448,615 | |
| Goodwill and intangible asset impairment | | 2,900 | | | | 149,793 | |
| Amortization of intangibles | | 6,514 | | | | 8,142 | |
| Interest expense | | 4,126 | | | | 5,703 | |
| Interest income | | (173 | ) | | | (407 | ) |
| Restructuring and other charges | | 7,091 | | | | 11,427 | |
| | 346,146 | | | | 623,273 | |
| |
| Loss from continuing operations before income taxes | | (7,001 | ) | | | (141,270 | ) |
| Income tax benefit | | 1,077 | | | | 26,713 | |
| |
| Loss from continuing operations | | (5,924 | ) | | | (114,557 | ) |
| Loss from discontinued operations, net of tax | | (404 | ) | | | (3,932 | ) |
| Net loss | $ | (6,328 | ) | | $ | (118,489 | ) |
| |
| Loss per share, Basic and Diluted:(3) | | | | | | | |
| Loss earnings from continuing operations | $ | (0.11 | ) | | $ | (2.14 | ) |
| Loss from discontinued operations | | (0.01 | ) | | | (0.07 | ) |
| | $ | (0.12 | ) | | $ | (2.22 | ) |
| |
| Weighted-average shares used in computation of loss per share: | | | | | | | |
| Basic | | 51,810 | | | | 53,490 | |
| Diluted | | 51,810 | | | | 53,490 | |
| | | | | | | | |
| |
| (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. |
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| | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (unaudited, in thousands, except share data) |
| |
| |
| |
| | December 27, | | December 28, |
| Assets | 2009 | | 2008 |
| Current Assets: | | | | | | | |
| Cash and cash equivalents | $ | 8,034 | | | $ | 7,601 | |
| Receivables, less allowance for doubtful accounts of $2,261 and $2,978, respectively | | 228,180 | | | | 269,203 | |
| Deferred tax asset | | 10,236 | | | | 11,198 | |
| Other current assets | | 11,430 | | | | 14,430 | |
| Total current assets | | 257,880 | | | | 302,432 | |
| Property and equipment, net of accumulated depreciation of $140,985 | | | | | | | |
| and $128,323 respectively | | 49,737 | | | | 67,269 | |
| Deferred tax asset | | 135,695 | | | | 132,412 | |
| Goodwill, trade names and other intangibles, net | | 58,237 | | | | 65,856 | |
| Other assets | | 22,042 | | | | 16,412 | |
| | $ | 523,591 | | | $ | 584,381 | |
| |
| Liabilities and Stockholders' Equity | | | | | | | |
| Current Liabilities: | | | | | | | |
| Current portion of long-term debt and revolving lines of credit | $ | 12,352 | | | $ | 37,699 | |
| Accounts payable and other accrued expenses | | 57,403 | | | | 67,638 | |
| Accrued salaries, wages and payroll taxes | | 46,381 | | | | 49,888 | |
| Accrued insurance reserves | | 19,037 | | | | 20,145 | |
| Accrued income tax payable | | 806 | | | | 1,236 | |
| Other current liabilities | | 6,399 | | | | 13,234 | |
| Total current liabilities | | 142,378 | | | | 189,840 | |
| Long-term debt, net of current portion | | 1,246 | | | | 1,646 | |
| Accrued insurance reserves | | 14,617 | | | | 16,912 | |
| Deferred compensation | | 14,702 | | | | 12,404 | |
| Other long-term liabilities | | 4,692 | | | | 7,391 | |
| Total liabilities | | 177,635 | | | | 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, 15,896,160 and 13,860,739 shares, respectively | | (113,421 | ) | | | (106,500 | ) |
| Additional paid-in capital | | 853,516 | | | | 850,653 | |
| Accumulated deficit | | (398,210 | ) | | | (391,882 | ) |
| Accumulated other comprehensive income | | 3,418 | | | | 3,264 | |
| Total stockholders' equity | | 345,956 | | | | 356,188 | |
| | $ | 523,591 | | | $ | 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 | | Twelve Months Ended |
| | December 27, | | December 28, | | December 27, | | December 28, |
| | 2009 | | 2008 | | 2009 | | 2008 |
| Adjusted earnings from continuing operations | $ | 3,176 | | | $ | 820 | | | $ | 160 | | | $ | 12,587 | |
| | | | | | | | | | | | | | | | |
| Adjustment of tax valuation allowance | | - | | | | - | | | | - | | | | 1,064 | |
| | | | | | | | | | | | | | | | |
| Impairment of goodwill and other intangibles, net of tax benefit | | (1,766 | ) | | | (121,249 | ) | | | (1,766 | ) | | | (121,249 | ) |
| | | | | | | | | | | | | | | | |
| Restructuring and other charges, net of tax benefit | | (1,231 | ) | | | (5,778 | ) | | | (4,318 | ) | | | (6,959 | ) |
| | | | | | | | | | | | | | | | |
| Earnings (loss) from continuing operations | | 179 | | | | (126,207 | ) | | | (5,924 | ) | | | (114,557 | ) |
| | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net of tax | | (5 | ) | | | (34 | ) | | | (404 | ) | | | (3,932 | ) |
| | | | | | | | | | | | | | | | |
| Net earnings (loss) | $ | 174 | | | $ | (126,241 | ) | | $ | (6,328 | ) | | $ | (118,489 | ) |
| | | | | | | | | | | | | | | | |
| Per share-Diluted amounts(1): | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Adjusted earnings from continuing operations | $ | 0.06 | | | $ | 0.02 | | | $ | - | | | $ | 0.24 | |
| | | | | | | | | | | | | | | | |
| Adjustment of tax valuation allowance | | - | | | | - | | | | - | | | | 0.02 | |
| | | | | | | | | | | | | | | | |
| Impairment of goodwill and other intangibles, net of tax benefit | | (0.03 | ) | | | (2.36 | ) | | | (0.03 | ) | | | (2.27 | ) |
| | | | | | | | | | | | | | | | |
| Restructuring and other charges, net of tax benefit | | (0.02 | ) | | | (0.11 | ) | | | (0.08 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | |
| Earnings (loss) from continuing operations | | - | | | | (2.45 | ) | | | (0.11 | ) | | | (2.14 | ) |
| | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net of tax | | - | | | | - | | | | (0.01 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | |
| Net earnings (loss) | $ | - | | | $ | (2.45 | ) | | $ | (0.12 | ) | | $ | (2.22 | ) |
| |
| Weighted-average shares used in computation of earnings (loss) per share | | 53,044 | | | | 51,482 | | | | 51,810 | | | | 53,490 | |
| | | | | | | | | | |
| (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 | | Twelve Months Ended |
| | December 27, | | December 28, | | December 27, | | December 28, |
| | 2009 | | 2008 | | 2009 | | 2008 |
| Adjusted EBITDA from continuing operations | $ | 14,808 | | | $ | 8,962 | | | $ | 33,964 | | | $ | 54,620 | |
| | | | | | | | | | | | | | | | |
| Interest income | | 42 | | | | 87 | | | | 173 | | | | 407 | |
| | | | | | | | | | | | | | | | |
| Interest expense | | (1,413 | ) | | | (806 | ) | | | (4,126 | ) | | | (5,703 | ) |
| | | | | | | | | | | | | | | | |
| Impairment of goodwill and other intangibles | | (2,900 | ) | | | (149,793 | ) | | | (2,900 | ) | | | (149,793 | ) |
| | | | | | | | | | | | | | | | |
| Restructuring and other charges | | (2,022 | ) | | | (9,487 | ) | | | (7,091 | ) | | | (11,427 | ) |
| | | | | | | | | | | | | | | | |
| Depreciation and amortization | | (6,953 | ) | | | (7,304 | ) | | | (27,021 | ) | | | (29,374 | ) |
| | | | | | | | | | | | | | | | |
| Earnings (loss) from continuing operations before income taxes | | 1,562 | | | | (158,341 | ) | | | (7,001 | ) | | | (141,270 | ) |
| | | | | | | | | | | | | | | | |
| Income tax (expense) benefit | | (1,383 | ) | | | 32,134 | | | | 1,077 | | | | 26,713 | |
| | | | | | | | | | | | | | | | |
| Earnings (loss) from continuing operations | $ | 179 | | | $ | (126,207 | ) | | $ | (5,924 | ) | | $ | (114,557 | ) |
| | | | | | | | | | | | | | | | |
| Adjusted EBITDA as a percentage of revenue | | 3.2 | % | | | 1.8 | % | | | 2.0 | % | | | 2.5 | % |
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| | | | | | | | | | | | | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| SEGMENT INFORMATION |
| (unaudited, dollar amounts in thousands) |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 27, | | September 27, | | December 28, | | December 27, | | December 28, |
| | 2009 | | 2009 | | 2008 | | 2009 | | 2008 |
| Revenues: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 167,857 | | | $ | 160,873 | | | $ | 206,105 | | | $ | 681,686 | | | $ | 930,965 | |
| Staffing Services | | 287,777 | | | | 259,324 | | | | 301,436 | | | | 1,029,194 | | | | 1,258,191 | |
| Segment revenue | $ | 455,634 | | | $ | 420,197 | | | $ | 507,541 | | | $ | 1,710,880 | | | $ | 2,189,156 | |
| |
| Gross profit: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 46,755 | | | $ | 43,045 | | | $ | 55,935 | | | $ | 185,401 | | | $ | 272,421 | |
| Staffing Services | | 44,500 | | | | 38,594 | | | | 49,166 | | | | 153,744 | | | | 209,582 | |
| Segment gross profit | $ | 91,255 | | | $ | 81,639 | | | $ | 105,101 | | | $ | 339,145 | | | $ | 482,003 | |
| |
| Segment SG&A: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | (37,508 | ) | | $ | (35,995 | ) | | $ | (48,828 | ) | | $ | (158,476 | ) | | $ | (228,614 | ) |
| Staffing Services | | (41,072 | ) | | | (38,371 | ) | | | (48,414 | ) | | | (154,800 | ) | | | (203,289 | ) |
| Segment SG&A | $ | (78,580 | ) | | $ | (74,366 | ) | | $ | (97,242 | ) | | $ | (313,276 | ) | | $ | (431,903 | ) |
| |
| Segment operating profit (loss): | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 9,247 | | | $ | 7,050 | | | $ | 7,107 | | | $ | 26,925 | | | $ | 43,807 | |
| Staffing Services | | 3,428 | | | | 223 | | | | 752 | | | | (1,056 | ) | | | 6,293 | |
| Segment operating profit | | 12,675 | | | | 7,273 | | | | 7,859 | | | | 25,869 | | | | 50,100 | |
| |
| Unallocated corporate costs | | (3,185 | ) | | | (3,094 | ) | | | (4,183 | ) | | | (12,412 | ) | | | (16,712 | ) |
| Goodwill and intangible asset impairment | | (2,900 | ) | | | - | | | | (149,793 | ) | | | (2,900 | ) | | | (149,793 | ) |
| Amortization of intangibles | | (1,635 | ) | | | (1,624 | ) | | | (2,018 | ) | | | (6,514 | ) | | | (8,142 | ) |
| Interest expense | | (1,413 | ) | | | (1,228 | ) | | | (806 | ) | | | (4,126 | ) | | | (5,703 | ) |
| Interest income | | 42 | | | | 41 | | | | 87 | | | | 173 | | | | 407 | |
| Restructuring and other charges | | (2,022 | ) | | | (896 | ) | | | (9,487 | ) | | | (7,091 | ) | | | (11,427 | ) |
| |
| Earnings (loss) from continuing operations before income | | | | | | | | | | | | | | | | | | | |
| taxes | $ | 1,562 | | | $ | 472 | | | $ | (158,341 | ) | | $ | (7,001 | ) | | $ | (141,270 | ) |
| |
| MEMO: | | | | | | | | | | | | | | | | | | | |
| |
| Gross profit margin: | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 27.9 | % | | | 26.8 | % | | | 27.1 | % | | | 27.2 | % | | | 29.3 | % |
| Staffing Services | | 15.5 | % | | | 14.9 | % | | | 16.3 | % | | | 14.9 | % | | | 16.7 | % |
| Total Spherion | | 20.0 | % | | | 19.4 | % | | | 20.7 | % | | | 19.8 | % | | | 22.0 | % |
| |
| |
| Segment SG&A: | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 22.3 | % | | | 22.4 | % | | | 23.7 | % | | | 23.2 | % | | | 24.6 | % |
| Staffing Services | | 14.3 | % | | | 14.8 | % | | | 16.1 | % | | | 15.0 | % | | | 16.2 | % |
| Total Spherion | | 17.2 | % | | | 17.7 | % | | | 19.2 | % | | | 18.3 | % | | | 19.7 | % |
| |
| |
| Segment operating profit (loss): | | | | | | | | | | | | | | | | | | | |
| Professional Services | | 5.5 | % | | | 4.4 | % | | | 3.4 | % | | | 3.9 | % | | | 4.7 | % |
| Staffing Services | | 1.2 | % | | | 0.1 | % | | | 0.2 | % | | | (0.1 | %) | | | 0.5 | % |
| Total Spherion | | 2.8 | % | | | 1.7 | % | | | 1.5 | % | | | 1.5 | % | | | 2.3 | % |
| |
| |
| Segment revenue per billing day: | | | | | | | | | | | | | | | | | | | |
| Professional Services | $ | 2,707 | | | $ | 2,554 | | | $ | 3,324 | | | $ | 2,705 | | | $ | 3,694 | |
| Staffing Services | $ | 4,642 | | | $ | 4,116 | | | $ | 4,862 | | | $ | 4,084 | | | $ | 4,993 | |
| Total Spherion(1) | $ | 7,349 | | | $ | 6,670 | | | $ | 8,186 | | | $ | 6,789 | | | $ | 8,687 | |
| |
| Supplemental Cash Flow and Other Information: | | | | | | | | | | | | | | | | | | | |
| Operating cash flow | $ | 10,508 | | | $ | (7,822 | ) | | $ | 35,477 | | | $ | 41,082 | | | $ | 79,183 | |
| Capital expenditures | $ | 286 | | | $ | 303 | | | $ | 1,716 | | | $ | 2,120 | | | $ | 8,935 | |
| Depreciation and amortization | $ | 6,953 | | | $ | 6,607 | | | $ | 7,303 | | | $ | 27,021 | | | $ | 29,373 | |
| DSO | | 46 | | | | 50 | | | | 49 | | | | 46 | | | | 49 | |
| Billing Days | | 62.0 | | | | 63.0 | | | | 62.0 | | | | 252 | | | | 252 | |
(1)Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding.
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| | | | | | | | | | | | | | | | | | | |
| SPHERION CORPORATION AND SUBSIDIARIES |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| (unaudited, dollar amounts in thousands) |
| |
| | Three Months Ended | | Twelve Months Ended |
| |
| | December 27, 2009 | | September 27, 2009 | | December 28, 2008 | | December 27, 2009 | | December 28, 2008 |
| Professional Services | | | | | | | | | | | | | | | | | | | |
| Revenues by Skill: | | | | | | | | | | | | | | | | | | | |
| Information Technology | $ | 113,684 | | | $ | 110,584 | | | $ | 130,057 | | | $ | 454,238 | | | $ | 581,331 | |
| Finance & Accounting | | 21,120 | | | | 20,527 | | | | 23,385 | | | | 87,068 | | | | 107,555 | |
| Administration | | 15,470 | | | | 14,431 | | | | 28,659 | | | | 71,180 | | | | 123,820 | |
| Other | | 17,583 | | | | 15,331 | | | | 24,004 | | | | 69,200 | | | | 118,259 | |
| Segment Revenues | $ | 167,857 | | | $ | 160,873 | | | $ | 206,105 | | | $ | 681,686 | | | $ | 930,965 | |
| |
| Revenues by Service: | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 163,103 | | | $ | 156,024 | | | $ | 199,404 | | | $ | 662,263 | | | $ | 882,227 | |
| Permanent Placement | | 4,754 | | | | 4,849 | | | | 6,701 | | | | 19,423 | | | | 48,738 | |
| Segment Revenues | $ | 167,857 | | | $ | 160,873 | | | $ | 206,105 | | | $ | 681,686 | | | $ | 930,965 | |
| |
| Gross Profit Margin by Service: | | | | | | | | | | | | | | | | | | | |
| (As % of Applicable Revenues) | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | | 25.8 | % | | | 24.5 | % | | | 24.7 | % | | | 25.1 | % | | | 25.4 | % |
| Permanent Placement | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| Total Professional Services | | 27.9 | % | | | 26.8 | % | | | 27.1 | % | | | 27.2 | % | | | 29.3 | % |
| |
| Revenues per billing day by Skill:(1) | | | | | | | | | | | | | | | | | | | |
| Information Technology | $ | 1,834 | | | $ | 1,755 | | | $ | 2,098 | | | $ | 1,803 | | | $ | 2,307 | |
| Finance & Accounting | $ | 341 | | | $ | 326 | | | $ | 377 | | | $ | 346 | | | $ | 427 | |
| Administration | $ | 250 | | | $ | 229 | | | $ | 462 | | | $ | 282 | | | $ | 491 | |
| Other | $ | 284 | | | $ | 243 | | | $ | 387 | | | $ | 275 | | | $ | 469 | |
| |
| Revenues per billing day by Service:(1) | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 2,631 | | | $ | 2,477 | | | $ | 3,216 | | | $ | 2,628 | | | $ | 3,501 | |
| Permanent Placement | $ | 77 | | | $ | 77 | | | $ | 108 | | | $ | 77 | | | $ | 193 | |
| |
| Staffing Services | | | | | | | | | | | | | | | | | | | |
| Revenues by Skill: | | | | | | | | | | | | | | | | | | | |
| Clerical | $ | 175,306 | | | $ | 157,691 | | | $ | 184,267 | | | $ | 645,451 | | | $ | 757,941 | |
| Light Industrial | | 112,471 | | | | 101,633 | | | | 117,169 | | | | 383,743 | | | | 500,250 | |
| Segment Revenues | $ | 287,777 | | | $ | 259,324 | | | $ | 301,436 | | | $ | 1,029,194 | | | $ | 1,258,191 | |
| |
| Revenues by Service: | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 285,970 | | | $ | 257,975 | | | $ | 299,122 | | | $ | 1,022,954 | | | $ | 1,244,634 | |
| Permanent Placement | | 1,807 | | | | 1,349 | | | | 2,314 | | | | 6,240 | | | | 13,557 | |
| Segment Revenues | $ | 287,777 | | | $ | 259,324 | | | $ | 301,436 | | | $ | 1,029,194 | | | $ | 1,258,191 | |
| |
| Gross Profit Margin by Service: | | | | | | | | | | | | | | | | | | | |
| (As % of Applicable Revenues) | | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | | 14.9 | % | | | 14.4 | % | | | 15.7 | % | | | 14.4 | % | | | 15.7 | % |
| Permanent Placement | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| Total Staffing Services | | 15.5 | % | | | 14.9 | % | | | 16.3 | % | | | 14.9 | % | | | 16.7 | % |
| |
| Revenues per billing day by Skill:(1) | | | | | | | | | | | | | | | | | | | |
| Clerical | $ | 2,828 | | | $ | 2,503 | | | $ | 2,972 | | | $ | 2,561 | | | $ | 3,008 | |
| Light Industrial | $ | 1,814 | | | $ | 1,613 | | | $ | 1,890 | | | $ | 1,523 | | | $ | 1,985 | |
| |
| Revenues per billing day by Service:(1) | | | | | | | | | | | | | | | | | | |
| Temporary Staffing & Other | $ | 4,612 | | | $ | 4,095 | | | $ | 4,825 | | | $ | 4,059 | | | $ | 4,939 | |
| Permanent Placement | $ | 29 | | | $ | 21 | | | $ | 37 | | | $ | 25 | | | $ | 54 | |
(1)Segment Revenue per billing day is calculated independently for each segment and may not add due to rounding.
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