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View All NewsCDI revenue up, but net income falls
CDI Corp. (NYSE: CDI) reported first-quarter revenue rose 2.5 percent year over year to $276.3 million. However, the Philadelphia-based staffing firm reported gross margin narrowed and net income fell 20.1 percent.
The company announced a $900,000 charge to net income related to the departure of former President and CEO Paulett Eberhart this year. The first quarter also included a charge of $400,000 related to the company’s restructuring plans announced in December.
Quote
“We are pleased with our first quarter year-over-year revenue growth, including double-digit gains in the [oil, gas and chemical] and [aerospace and industrial equipment] verticals and in the U.K. staffing business. We continue to face revenue challenges in our government-related businesses, as well as in MRI and non-program staffing. Additionally, sales to our largest customer remain significantly below year-ago levels,” said CDI Interim CEO and President Robert Larney. “We continue to focus on improving gross margins throughout our operations. Our overhead costs are under control as we execute our previously announced restructuring plan. Based on our current outlook, we anticipate higher revenues and profit for CDI throughout the remainder of 2014.”
Revenue
| Q1 2014 (000s) | Q1 2013 (000s) | % growth | |
| Revenue | $276,272 | $269,466 | 2.5% |
Revenue by segment
| Q1 2014 (000s) | Q1 2013 (000s) | % growth | |
| Global Engineering and Technology Solutions | |||
| Oil, gas and chemicals | $32,543 | $29,650 | 9.8% |
| Aerospace and industrial equipment | $19,846 | $16,869 | 17.6% |
| Hi-Tech | $7,910 | $7,621 | 3.8% |
| Other | $21,955 | $23,897 | -8.1% |
| Professional Staffing Services | |||
| Oil, gas and chemicals | $45,063 | $33,342 | 35.2% |
| Aerospace and industrial equipment | $19,917 | $18,917 | 5.3% |
| Hi-Tech | $60,134 | $71,994 | -16.5% |
| Other | $55,025 | $52,855 | 4.1% |
| Management Recruiters International | |||
| Contract staffing | $11,072 | $11,236 | -1.5% |
| Royalties and franchise fees | $2,807 | $3,085 | -9.0% |
Gross margin
| Q1 2014 | Q1 2013 | |
| Gross margin | 18.4% | 18.6% |
Gross margin by segment
| Q1 2014 | Q1 2013 | |
| Global Engineering and Technology Solutions | 27.2% | 27.6% |
| Professional Services Staffing | 12.2% | 12.6% |
| Management Recruiters International | 46.2% | 44.4% |
Net income
| Q1 2014 (000s) | Q1 2013 (000s) | % growth | |
| Net income | $2,041 | $2,553 | -20.1% |
Guidance
CDI anticipates second-quarter revenue of between $268 million and $276 million compared to revenue of $263.4 million in the second quarter of 2013.
Share price
CDI shares were up 11.90 percent in early afternoon trading. The company had a market cap of $322.72 million, according to Yahoo!