MPS Group, Inc. (NYSE:MPS), a leading provider of
specialty staffing, consulting and business solutions, today announced financial results for the
second quarter and six months ended June 30, 2009. Second quarter revenue of $418 million
and diluted net income per common share of $0.03 were at the high end of the range of
guidance previously provided by management.
JACKSONVILLE, Fla. (July 29, 2009) — MPS Group, Inc. (NYSE:MPS), a leading provider of
specialty staffing, consulting and business solutions, today announced financial results for the
second quarter and six months ended June 30, 2009. Second quarter revenue of $418 million
and diluted net income per common share of $0.03 were at the high end of the range of
guidance previously provided by management.
Revenue decreased 29% versus last year's second quarter. Excluding the impact of
acquisitions and changes in foreign currency exchange rates, revenue was down 23% versus
the second quarter of 2008. On a sequential basis, revenue declined 3% versus the first
quarter of 2009. Excluding the impact of changes in foreign currency exchange rates, revenue
decreased 5% sequentially versus the first quarter of 2009.
Revenue from the North American business units was down 23% in the second quarter versus
the prior year’s second quarter. On a sequential basis, revenue from the North American
business units declined 5%; however, the Company's accounting and legal staffing businesses
experienced revenue increases versus the first quarter of 2009 due to solid execution amid a
relatively weak demand environment.
Revenue from the International business units, composed primarily of operations in the United
Kingdom and Continental Europe, declined 38% versus the second quarter of 2008. Excluding
the impact of an acquisition and changes in foreign currency exchange rates, revenue from the
International business units was down 21%. On a sequential basis, revenue increased
compared with the first quarter due to the beneficial effect of changes in foreign currency
exchange rates.
Second quarter gross margin of 27.2% was adversely affected by fewer permanent placement
fees, which represented 3.3% of total revenue in the second quarter of 2009 versus 6.2% of
total revenue in the prior year’s second quarter. On a sequential basis, permanent placement
revenue as a percentage of total revenue stabilized as the decline in permanent placement
revenue moderated in comparison to recent quarters.
During the second quarter of 2009, the Company generated operating cash flow of $16 million.
As of June 30, 2009, the Company had a cash balance of $124 million and no borrowings on
its credit facility.
MPS Group Announces Second Quarter 2009 Results
Payne, MPS Group Chief Executive Officer, stated, "The hiring environment remains
very challenging; however, it is encouraging that the pace of decline in revenue has slowed.
Anecdotal evidence, such as job orders, numbers of layoffs at our clients, and client
commentary, points to some degree of stabilization."
"Our balance sheet remains strong with $124 million in cash and no borrowings on our credit
facility," added Robert Crouch, MPS Group Chief Financial Officer. "Within this current
environment, we estimate that third quarter revenue and diluted net income per common share
will be in the range of $380 million to $410 million and $0.00 to $0.03, respectively. We
caution investors that our ability to estimate future results is affected by uncertain economic
conditions."
Conference Call Scheduled Today
The live broadcast of MPS Group's conference call will begin at 10:00 a.m. Eastern Time
today. The link to this event may be found at the Company's website: www.mpsgroup.com. If
you prefer, you may listen to the call by dialing (913) 312-0673 (confirmation number
6459357).
If you are unable to participate at that time, online and telephonic replays will be available two
hours after the call ends and will continue until 6:00 p.m. on August 5, 2009. To access the
telephonic replay, please dial (719) 457-0820 and enter 6459357 when prompted for the
passcode. The link for the online replay may also be found on the Company's website.
About MPS Group
MPS Group is a leading provider of staffing, consulting, and solutions in the disciplines of
information technology, finance and accounting, law, engineering, marketing and creative,
property, and healthcare. MPS Group delivers its services to businesses and government
entities in the United States, Europe, Canada, Australia, and Asia. A Fortune 1000 company
with headquarters in Jacksonville, Florida, MPS Group trades on the New York Stock
Exchange. For more information about MPS Group, please visit www.mpsgroup.com.
MPS Group Announces Second Quarter 2009 Results
Looking Statements
This press release contains forward-looking statements that are subject to certain risks,
uncertainties or assumptions described above and may be affected by other factors, including,
but not limited to: fluctuations in the economies and financial markets in the U.S. and foreign
countries where we do business and in the Company's industry segments in particular;
industry trends toward consolidating vendor lists; the demand for the Company's services,
including the impact of changes in utilization rates; consolidation or bankruptcy of major
customers; the effect of competition, including the Company's ability to expand into new
markets and to remain profitable or maintain profit margins in the face of pricing pressures; the
Company's ability to retain significant existing customers or obtain new customers; the
Company's ability to recruit, place and retain consultants and professional employees; the
Company's ability to identify and complete acquisition targets and to successfully integrate
acquired operations into the Company; possible changes in governmental laws and regulations
affecting the Company's operations, including possible changes to laws and regulations
relating to benefits for consultants and temporary personnel, and possible increased regulation
of the employer-employee relationship; employment-related claims, costs, and other litigation
matters; adjustments during periodic tax audits; litigation relating to prior and current
transactions and activities; claims and liabilities asserted for the acts or omissions of our
temporary employees; fluctuations in interest rates or foreign currency exchange rates; loss of
key employees; fluctuations in the price of the Company's common stock due to actual or
anticipated changes in quarterly operating results, financial estimates, statements by securities
analysts, and other events; and other factors discussed in the Company's filings with the
Securities and Exchange Commission. In some cases, you can identify forward-looking
statements by terminology such as: "will," "may," "should," "could," "expects," "intends,"
"plans," "hopes," "indicates," "projects," "can," "anticipates," "perhaps," “probably,” "believes,"
"estimates," "appears," "predicts," "potential," "continues," "would," or "become," or other
comparable terminology or the negative of these terms or other comparable terminology.
Readers are urged to review and consider the matters discussed in "Item 1A. Risk Factors" of
the Company's Form 10-K for the year ended December 31, 2008 and discussion of risks or
uncertainties in subsequent filings with the Securities and Exchange Commission.
Should one or more of these risks, uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual results, performance or achievements of the
Company may vary materially from any future results, performance or achievements
expressed or implied by the forward-looking statements. Forward-looking statements are
based on beliefs and assumptions of the Company's management and on information then
currently available to management. Undue reliance should not be placed on such forwardlooking
statements. Forward-looking statements are not guarantees of performance. Such
forward-looking statements were prepared by the Company based upon information available
at the time of such statements. Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update publicly any of them in light of
new information or future events.
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