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EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Tom Calcaterra
Chief Financial Officer
(813)-251-1700
ROMAC INTERNATIONAL, INC. "THE KNOWLEDGEFORCE RESOURCE" ANNOUNCES 64% INCREASE
IN THIRD QUARTER EARNINGS PER SHARE
TAMPA, FLORIDA (October 14, 1997) - Romac International, Inc. (Nasdaq-NHM: ROMC
- - "Romac") today announced results for its third quarter and nine months ended
September 30, 1997.
THE NUMBERS
For the third quarter, net service revenues increased to $45.9 million from
$26.4 million for the same period last year. This represents an increase of
73.9%. Net income increased to $3.0 million for the third quarter of 1997 from
$1.8 million for the same period last year. This represents an increase of
66.7%. Fully-Diluted earnings per share increased to $.23 for the third quarter
of 1997 from $.14 per share for the same period last year. This represents an
increase of 64.3%. Fully-Diluted weighted average shares outstanding for the
third quarter increased by 3.9% to 13.3 million from 12.8 million for the same
period in 1996.
For the nine months ended September 30, 1997, net service revenues increased to
$120.5 million from $64.8 million for the same period last year. This represents
an increase of 86.0%. Net income increased to $7.5 million for the first nine
months of 1997 from $4.1 million for the same period last year. This represents
an increase of 82.9%. Fully-Diluted earnings per share increased to $.58 for the
first nine months of 1997 from $.36 for the same period last year. This
represents an increase of 61.1%. Fully-Diluted weighted average shares
outstanding for the first nine months of the year increased by 12.2 % to 12.9
million from 11.5 million for the same period in 1996.
THE SERVICES
Romac International, Inc. provides people-driven outcomes to client and
candidate customers in the specialty areas of information technology, finance
and accounting, human resources, pharmaceutical, health care, manufacturing
services, life insurance, investments and banking. The Company partners
principally with Fortune 1000 companies in sixteen metropolitan markets.
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THE BUSINESS
David L. Dunkel, President and CEO of Romac International, Inc. said, "We are
very pleased with our financial performance for the third quarter of 1997.
During the quarter, on a functional basis, Information Technology, Finance and
Accounting, Human Resources and Operating Specialties all grew substantially.
Additionally, during the third quarter, we focused on the expansion of our
Executive Solutions service offering, which provides high level finance and
accounting professionals on a flexible basis. On the acquisition front, the
addition of UQ Solutions and Sequent in September 1997 to the Romac team
significantly strengthens our information technologies market presence in
Chicago and the Silicon Valley area."
"Additionally, we made several important management additions with Ron English
being named President of Romac Information Technologies and Jack Causa being
named President of Romac Finance and Accounting. Pete Alonso, formerly with
Romac Information Technologies, was promoted to President of Romac Operating
Specialties, which includes our pharmaceutical, health care, manufacturing
services, life insurance, investments and banking specialties. Finally, our
internal PeopleSoft implementation is ahead of schedule as we reported September
results from the new system only five months after selecting it."
THE OUTLOOK
Mr. Dunkel added, "We are excited about our prospects and the opportunities
before us. In closing, we would like to thank our client customers, our
KnowledgeForce and our operating and servicing personnel for their continued
exceptional efforts."
Certain of the above statements contained in this press release are
forward-looking statements that involve a number of risks and uncertainties.
Such forward looking statements are within the meaning of that term in Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Act of 1934, as amended. Factors that could cause actual results to differ
materially include the following: business conditions and growth in the staffing
industry and general economy; competitive factors; risks due to shifts in market
demand; changes in service mix; ability of the Company to complete acquisitions;
and the risk factors listed from time to time in the Company's reports filed
with the Securities and Exchange Commission, as well as assumptions regarding
the foregoing. The words "believe," "estimate", "expect," "intend."
"anticipate"and similar expressions and variations thereof identify certain of
such forward-looking statements, which speak only as of the dates on which they
were made. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise. Readers are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
indicated in the forward-looking statements as a result of various factors.
Readers are cautioned not to place undue reliance on these forward-looking
statements.
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ROMAC INTERNATIONAL, INC.
STATEMENT OF SELECTED OPERATING DATA
FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBERR30,31,
1997 1996 1997 1996
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(UNAUDITED) (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE DATA) (IN THOUSANDS EXCEPT PER SHARE DATA)
NET SERVICE REVENUES:
FLEXIBLE BILLINGS $39,006 $21,063 $101,456 $51,488
SEARCH FEES 6,909 5,371 19,051 13,300
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NET SERVICE REVENUES $45,915 $26,434 $120,507 $64,788
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NET INCOME $ 3,040 $ 1,805 $ 7,546 $ 4,118
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EARNINGS PER SHARE - PRIMARY $ 0.23 $ 0.14 $ 0.59 $ 0.36
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WEIGHTED AVERAGE SHARES O/S-PRIMARY 13,164 12,712 12,835 11,411
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EARNINGS PER SHARE - FULLY-DILUTED $ 0.23 $ 0.14 $ 0.58 $ 0.36
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WEIGHTED AVERAGE SHARES O/S-FULLY-DILUTED 13,263 12,801 12,917 11,482
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FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
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(UNAUDITED (UNAUDITED)
(IN THOUSANDS) (IN THOUSANDS)
NET SERVICE REVENUES (BY FUNCTION):
INFORMATION TECHNOLOGY $23,743 $10,709 $ 58,160 $31,612
FINANCE AND ACCOUNTING 17,363 12,480 $ 48,379 26,422
HUMAN RESOURCES 2,661 2,246 $ 8,472 4,505
OPERATING SPECIALITIES 2,148 999 $ 5,496 2,249
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NET SERVICE REVENUES (BY FUNCTION): $45,915 $26,434 $120,507 $64,788
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