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View All NewsCDI Corp. reports revenue up 6%
CDI Corp. (NYSE: CDI), a Philadelphia-based staffing provider, reported third-quarter revenue rose 6.4 percent year over year to $295.7 million. However, gross margin narrowed to 18.4 percent from 19.0 percent in the year-ago quarter.
Professional staffing services revenue rose 5.7 percent in the third quarter to $192.4 million, and revenue in its Management Recruiters International Inc. segment rose 3.5 percent to $14.9 million.
Third-quarter revenue in the company’s global engineering and technology solutions segment rose 8.5 percent to $88.4 million.
CDI ranks as the sixth-largest US engineering staffing firm and 16th-largest US IT staffing firm. In a separate story, CDI added three members to its executive management team.
Quote
“We are pleased with our financial results in the third quarter, including driving a 22 percent increase in operating profit,” said CEO Scott Freidheim. “CDI has an attractive platform of businesses delivering valued engineering and staffing services. We look forward to leveraging this platform to create shareholder value.”
Revenue
Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
Revenue | $295,732 | $277,916 | 6.4% |
Revenue by segment
Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
Global Engineering and Technology Solutions | |||
Oil, gas and chemicals | $39,786 | $31,677 | 25.6% |
Aerospace and industrial equipment | $17,799 | $19,012 | -6.4% |
Hi-Tech | $8,273 | $7,559 | 9.4% |
Other | $22,530 | $23,247 | -3.1% |
Total | $88,388 | $81,495 | 8.5% |
Professional Staffing Services | |||
Oil, gas and chemicals | $51,386 | $41,120 | 25.0% |
Aerospace and industrial equipment | $21,216 | $18,360 | 15.6% |
Hi-Tech | $57,837 | $68,528 | -15.6% |
Other | $61,987 | $53,994 | 14.8% |
Total | $192,426 | $182,002 | 5.7% |
Management Recruiters International | |||
Contract staffing | $11,600 | $10,837 | 7.0% |
Royalties and franchise fees | $3,318 | $3,582 | -7.4% |
Total | $14,918 | $14,419 | 3.5% |
Gross margin
Q3 2014 | Q3 2013 | |
Gross margin | 18.4% | 19.0% |
Gross margin by segment
Q3 2014 | Q3 2013 | |
Global Engineering and Technology Solutions | 27.6% | 27.8% |
Professional Services Staffing | 12.0% | 12.6% |
Management Recruiters International | 46.6% | 48.8% |
Net income
Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
Net income | $5,441 | $4,566 | 19.2% |
Guidance
CDI expects fourth-quarter revenue in the range of $270 million to $280 million, compared to $ 277.1 million in the same period last year.
Share price and market cap
Shares in CDI fell 34.26 percent to $15.23 in early afternoon trading today and CDI has a market cap of approximately $209.78 million, according to Yahoo!