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MPS revenue falls 29%, sale on track

October 29 2009
Staffing Industry Analysts North American Daily News

Third-quarter revenue at MPS Group Inc. (NYSE: MPS) fell 29.4% to $407.8 million from $577.5 million in the third quarter of last year. Third-quarter revenue fell 25% excluding the impact of foreign exchange. Compared with the second quarter, revenue was down 2%.

The Jacksonville FL-based professional staffing firm announced earlier this month it struck a deal to be acquired by Adecco SA for $1.3 billion. The deal is expected to close in the first quarter of 2010.

MPS' North American Professional Services' segment posted third-quarter revenue of $128.3 million, down 33.3% on a year-over-year basis. Its North American Information Technology Services segment reported a 19.4% decline in revenue to $124.8 million.

Its North American Professional Services segment includes finance/accounting, legal, engineering and healthcare staffing services. The North American Information Technology Services segment includes IT staffing and solutions as well as the company's Beeline vendor management system.

Third-quarter gross margin narrowed to 26.8% from 28.4% in the year-ago quarter. A decline in permanent placement fees cut into gross margin, the company reported. Permanent placement fees accounted for 2.9% of revenue in the third quarter of 2009 compared with 5.3% of revenue in the third quarter of 2008.

MPS reported net income of $5.5 million, down 68.3% from the same period last year.

MPS Group Inc. (NYSE: MPS)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $407.8 million, -29.4%
Net income: $5.5 million, -68.3%

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