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Corporate Resource revenue rises 34%

May 21 2013

Corporate Resource Services Inc. (OTCBB: CRRS) reported revenue rose 34.2 percent year over year to $194.2 million in its fiscal first quarter ended April 5.

Corporate Resource Services’ fiscal year ends on the Friday closest to December 31, so the quarter included 14 weeks compared to 13 weeks in the same quarter last year. Excluding the effect of the additional week, revenue increased 26.6 percent. The company recently changed its fiscal year, which previously ended on the Friday closest to September 30.

“We’re very excited about the growth that we’re seeing, even if you factor out the extra week,” said CFO Michael Golde. “We are growing pretty rapidly and we’re continuing to grow rapidly.”

The New York-based staffing firm reported first-quarter net income of $37,000 compared to a net loss of $2.7 million in its first quarter of 2012.

Gross margin narrowed to 11.1 from 11.3 percent in the same quarter year prior.

The company this month closed on its previously announced acquisition of Summit Software, which provides enterprise software applications and cloud-based hosting solutions for the PEO and staffing industries. Read the story here.

“The acquisition of Summit Software will provide us with a base, some stability in our margins and our profitability,” said Golde. “We’re very excited about the rest of the year.”

Corporate Resource Services expects second-quarter revenue of between $195 million and $200 million and net income of between $700,000 and $1.2 million. For the full year of 2013, the company now expects net income of between $8.5 million and $10.0 million on revenues of approximately $810 million to $850 million.

The company last year ranked as the 34th-largest staffing firm in the U.S.

Corporate Resource Services Inc. (OTCBB: CRRS)
For the three months ended April 5, 2013, compared with the same period in the previous year.
Revenue: $194.2 million, +34.2 percent
Net income: 37,000 vs. net loss of $2.7 million


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