EXHIBIT 99.1
FINANCIAL
RELATIONS BOARD
FOR FURTHER INFORMATION:
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD
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Bob Ende General Info: Marilynn Meek (212) 827-3773
Senior Vice President Investor Info: Susan Garland (212) 827-3775
of Finance
COMFORCE Corporation
(516) 437-3300
bende@comforce.com
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COMFORCE CORPORATION ANNOUNCES REPURCHASE
OF $6.0 MILLION PRINCIPAL AMOUNT OF SENIOR NOTES
Woodbury, NY - April 19, 2005 - COMFORCE Corporation (ASE: CFS), a leading
provider of specialty staffing, consulting and outsourcing services, today
announced it has successfully repurchased $6.0 million principal amount of its
12% Senior Notes for consideration of $6.1 million, using available funds under
its bank credit facility. Including this most recent repurchase since June 30,
2000, the Company has re duced its public debt from $138.8 million to $58.4
million. This has enabled the Company to reduce its annual interest expense by
approximately $9.0 million.
John Fanning, Chairman and Chief Executive Officer of COMFORCE Corporation,
commented, "We are most pleased to announce the recent repurchase. It has
enabled us to further reduce our interest expense and strengthen our balance
sheet. We are committed to improving the capital structure of COMFORCE and we
will continue to explore additional ways to improve our balance sheet and cash
flow."
About COMFORCE
COMFORCE Corporation provides specialty staffing, consulting and outsourcing
services primarily to Fortune 500 companies. The Company operates in three
business segments - Human Capital Management Services, Staff Augmentation, and
Financial Outsourcing Services. The Human Capital Management Services segment
provides consulting services for managing the contingent workforce through its
PRO Unlimited subsidiary. The Staff Augmentation segment provides Healthcare
Support Services, including RightSourcing Vendor Management Services and Nurse
Staffing Services, Sarbanes-Oxley Specialists, Technical Services, Information
Technology (IT), Telecom, and Other Staffing Services. The Financial Outsourcing
Services segment provides payroll, funding and outsourcing services to
independent consulting and staffing companies. COMFORCE has thirty-six (36)
offices nationwide.
To view the Company's web page visit http://www.comforce.com
Various statements made in this release concerning the Company's expectations
are forward looking statements. The Company may be unable to realize its
objectives due to various important factors, including, but not limited to: the
loss of key customers, weakness in job growth, a reduction in corporate or
government spending, adverse economic conditions generally or in key industries
served by the Company, or a reduction in the demand for outsourcing
services generally which could heighten competition among staffing companies and
negatively impact revenues and margins; the Company's significant leverage may
leave it with a diminished ability to obtain additional financing for working
capital, capital expenditures or acquisitions, for retiring higher interest rate
debt or for otherwise improving the Company's competitiveness and capital
structure or expanding its operations; and the heightened standards under which
the Company must evaluate annually the retention of goodwill on its books and
create a greater likelihood that the Company will be required to write-off
goodwill in future periods (in addition to the write-offs of $71.6 million in
2002 and $24.5 million in 2003), which could have a material adverse impact on
its financial condition and results of operations. Additional important factors
are described under "Forward Looking Statements" in Part II, Item 7 of the
Company's 10-K for the year ended December 26, 2004 and under "Risk Factors" in
the S-8 of the Company filed with the SEC on April 24, 2003 (Registration No.
333-104730). These disclosures may be accessed through the SEC's web site at
"www.sec.gov" and will be forwarded free of charge upon request made to Linda
Annicelli, VP of Administration, at COMFORCE Corporation, 415 Crossways Park
Drive, P.O. Box 9006, Woodbury, New York 11797, telephone 516-437-3300.
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