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Staffmark revenue rises 33%

May 10, 2010

Staffmark, a Cincinnati-based staffing firm, reported first-quarter revenue rose 33.4% from the year-ago quarter to $217.4 million amid increased demand for temporary staffing, according to a filing with the U.S. Securities and Exchange Commission. The increase came primarily in the office/clerical and industrial segments, the company reported.

First-quarter gross margin narrowed to 13.3% from 15.0%. Higher unemployment taxes and downward pricing pressure from clients sent gross margin down, according to Staffmark.

Staffmark is part of Compass Diversified Holdings (NASD: CODI). Compass' CBS Personnel Holdings Inc. brand acquired Staffmark on Jan. 21, 2008, and CBS later adopted the Staffmark name. Compass' total revenue including its nonstaffing businesses for the first quarter was $353.6 million.