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Acquisitions bolster CRS’ Q2 revenue

September 26, 2014

Corporate Resource Services Inc. (NASD: CRRS) Thursday reported revenue rose 23.6 percent to $246.1 million in its second quarter ended July 4. Acquisitions made at the end of 2013 fueled the increase and added $32.5 million in revenue. Excluding acquisitions, the company generated organic growth of $14.5 million for the quarter, or 31 percent of the quarter’s growth.

Acquisitions include Staff Management Group and Alar Staffing in the first half of this year.

The filing brings the company current with its Securities and Exchange Commission reports as required in its compliance plan with the Nasdaq.

The New York-based firm provides staffing services as well as cloud-based enterprise applications and hosting services to other staffing firms and professional employer organizations.

Quote

“We are extremely pleased to have completed the filing of our 10-Q within the time mandated by Nasdaq. With our change of auditors we have also adopted some new financial processes that will help us manage the company more effectively,” said CEO John Messina. “We are also pleased by these strong quarterly and half-year results. As we move into our peak placement season, we have seen robust demand from our clients for the upcoming holiday season, as well as demand for our higher margin professional services.”

Revenue

  Q2 2014 ($000s) Q2 2013 ($000s) % growth
Revenue $246,107 $199,127 23.6%

Gross margin

  Q2 2014  Q2 2013 
Gross margin 11.7% 11.6%

Net income

  Q2 2014 (000s) Q2 2013 (000s) % growth
Net income $330 $1,255 -73.7%

Share price and market cap

Shares in Corporate Resources rose 16.18 percent to $1.59 in early afternoon trading today and Corporate Resources has a market cap of approximately $251.5 million, according to Yahoo!