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Fourth-quarter revenue at SFN Group Inc. (NYSE: SFN) rose 20.5 percent from the year-ago quarter to $549.2 million.
"Longer-term industry dynamics are positive, and we are positioned well for continued growth. In the second half of 2010, we made operating investments in sales and recruiting staff to further organic growth." President and CEO Roy Krause said. "Additionally, in the fourth quarter, we repaid the balance on our revolver with our strong cash flow. Future investments will be focused on expanding our presence in key Professional Services areas and share repurchases, as appropriate."
Revenue in the Fort Lauderdale FL-based staffing company's professional services unit rose 28.8 percent to $254.4 million, representing 46.3 percent of total company revenue. Professional services continues to receive a boost from its acquisition in the first quarter of Tatum LLC and continued year-over-year growth in all skills and services. Tatum is an Atlanta-based firm that provides chief financial officer staffing as well as CFO-related services and consulting.
Fourth-quarter revenue at SFN by professional skill increased in all segments:
-Finance/accounting rose 124.4 percent year-over-year to $47.9 million
-Information technology rose 16.8 percent to $130.7 million
-Administration rose 22.1 percent to $15.0 million
-Other professional rose 17.1 percent to $60.8 million.
Outside of professional, SFN's clerical staffing revenue rose 12.0 percent to $163.1 million and light industrial revenue rose 17.0 percent to $131.7 million.
SFN's Fourth-quarter gross margin improved to 22.2 percent from 20.0 percent in the year-ago quarter.
Net income rose to $9.4 million in the fourth quarter from $174,000 in the same period a year ago.
SFN Group Inc. (NYSE: SFN)
For the fourth quarter ended Dec. 26, 2010, compared with the same period the previous year.
Revenue: $549.2 million, +20.5 percent
Net income: $9.4 million vs. $174,000
For the 2010 fiscal year ended Dec. 26, 2010 compared with the previous year.
Revenue: $2.1 billion, +20.0 percent
Net income: $14.9 million vs. net loss of $6.3 million