October 23, 2002

CDI Corp. Reports Stronger Third Quarter 2002 Earnings

Philadelphia, Pa. (October 23, 2002) - CDI Corp. (NYSE: CDI) today reported earnings for the third quarter of 2002.

The company reported earnings per diluted share of $0.27 on an after-tax basis, excluding pre-tax charges of approximately $9.8 million ($0.30 per share on an after-tax basis), which reflect restructuring charges and a loss on sale of certain company-owned offices of Management Recruiters International. Including these items, the company reported a net loss from continuing operations of $0.03 per diluted share.

Consolidated revenues from continuing operations for the third quarter of 2002 were $287.8 million, compared with $298.4 million in the second quarter of 2002. Excluding revenue related to exited accounts, consolidated revenues were essentially flat in comparison with the second quarter of 2002.

"We expect this quarter to mark the end of a year-long series of restructuring initiatives, assuming no marked deterioration of the national economy," said President and Chief Executive Officer Roger H. Ballou. "CDI is financially strong and in an outstanding position to create profitable growth, particularly once the economy begins to rebound.

"Looking ahead, the current business climate gives us no reason to change our conservative outlook," said Ballou. "We expect our profit performance in the fourth quarter of 2002 to be generally consistent with the third quarter before charges, and our current expectation is to have minimal charges. Our business plan is not predicated on material economic improvement. We will achieve our financial targets through disciplined cost control and strict adherence to our strategic growth plan."

Conference Call/Webcast
CDI Corp. will conduct a conference call at 11 a.m. (Eastern) today to discuss this announcement. The conference call will be broadcast live over the Internet and can be accessed by any interested party at www.cdicorp.com. An online replay will be available at www.cdicorp.com for 14 days after the call.

Company Information
CDI Corp. (NYSE: CDI) is a global provider of engineering and information technology project delivery and specialized staffing. Subsidiaries include Todays Staffing and Management Recruiters International, the world's largest executive search and recruitment organization. CDI and its franchisees operate more than 1,400 offices in 27 countries. Visit CDI on the web at www.cdicorp.com.

Safe Harbor Statement
Certain information in this news release contains forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Certain forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or the negative thereof or other comparable terminology, or by discussions of strategy, plans or intentions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include risks and uncertainties such as competitive market pressures, material changes in demand from larger customers, availability of labor, the company's performance on contracts, changes in customers' attitudes towards outsourcing, government policies or judicial decisions adverse to the staffing industry, changes in economic conditions, and delays or unexpected costs associated with its restructuring program. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company assumes no obligation to update such information.

For more information, contact:

Barbara Leary
Vice President, Corporate Communications
Tel: (215) 636-1133
E-mail: barbara.leary@cdicorp.com

Greg Cowan
Executive Vice President, Chief Financial Officer
Tel: (215) 636-1207
E-mail: greg.cowan@cdicorp.com


CDI CORP.
Financial Summary
($000s except per share)

Summary of Earnings

Three months ended September 30, Nine months ended September 30,
 

2002

2001

2002

2001

Revenues

$287,788

$351,756

$899,337

$1,129,069

         

Gross profit

76,819

87,142

234,069

289,371

         

Operating (loss)/profit

(1,165)

(2,496)

(3,176)

6,010

Interest (income)/expense

(111)

867

17

2,729

(Loss)/earningsbefore income taxes and minority interests

(1,054)

(3,363)

(3,193)

3,281

Income tax benefit/(expense)

457

1,273

1,248

(1,280)

(Loss)/earnings from continuing operations before minority interests

(597)

(2,090)

(1,945)

2,001

Minority interests

--

100

135

344

(Loss)/earnings from continuing operations

(597)

(2,190)

(2,080)

1,657

Discontinued operations (net of tax)

27

220

425

1,107

Change in accounting for goodwill, net of tax

--

--

(13,968)

--

Net (loss)/earnings

$(570)

$(1,970)

$(15,623)

$2,764

Per diluted share

       

(Loss)/earnings from continuing operations

$(0.03)

$(0.11)

$(0.11)

$0.09

Discontinued operations (net of tax)

--

$0.01

$0.02

$0.06

Change in accounting for goodwill, net of tax

--

--

$(0.73)

--

Net (loss)/earnings

($0.03)

$(0.10)

$(0.81)

$0.14

Diluted shares (000)

19,248

19,080

19,182

19,193

         

Segment Data

       

Revenues

       

Professional Services

$153,203

$197,107

$481,057

$626,726

Project Management

76,203

85,421

235,934

269,233

Todays Staffing

35,735

45,388

114,547

151,400

Management Recruiters

22,647

23,840

67,799

81,710

         

Operating (loss)/profit

       

Professional Services

$1,992

$1,650

$2,892

$7,280

Project Management

4,660

(1,851)

4,669

(1,117)

Todays Staffing

(2,939)

(492)

(720)

2,882

Management Recruiters

(169)

3,089

4,058

13,482

Corporate Expenses

(4,709)

(4,892)

(14,075)

(16,517)

         

Operating profit/(loss) before restructuring and event-driven charges

Professional Services

$3,934

$2,217

$11,200

$9,047

Project Management

5,227

(1,202)

10,220

(368)

Todays Staffing

914

551

3,361

4,025

Management Recruiters

2,685

3,089

6,912

13,545

Corporate Expenses

(4,113)

(4,778)

(13,450)

(14,803)

Note: "Revenues" and "Cost of Services" have been restated to reflect the inclusion of certain reimbursable costs on a gross basis pursuant to Emerging Issues Task Force Consensus No. 01-14, which became effective in January 2002. In addition, goodwill amortization of approximately $1.5 million per quarter pre-tax is no longer being recorded in accordance with new accounting rules effective January 1, 2002.

CDI CORP.
Financial Summary
($000s)

Summary Balance Sheet

September 30, 2002

September 30, 2001

December 31, 2001
       

Assets

     

Cash and cash equivalents

$72,232

$6,038

$26,255

Receivables

199,656

308,943

252,721

Short term investments

15,129

--

--

Prepaid expenses

6,639

7,152

6,577

Income taxes recoverable

7,111

--

--

Deferred taxes

15,124

13,000

16,786

Assets of discontinued operations

--

17,333

14,840

Current assets

315,891

352,466

317,179

       

Fixed assets, net

30,769

62,997

49,989

Deferred taxes

12,169

--

5,709

Goodwill, net

68,334

90,257

87,469

Other assets

10,988

11,962

12,226

 

$438,151

$517,682

$472,572

       

Liabilities and Shareholders' Equity

     

Outstanding checks

$9,073

$13,854

$10,304

Accounts payable

31,545

40,622

35,281

Accrued expenses

85,606

82,934

88,628

Current taxes

--

7,297

2,512

Current portion of long-term debt

675

--

7,913

Liabilities of discontinued operations

--

4,455

3,513

Current liabilities

126,899

149,162

148,151

       

Long-term debt

--

25,040

--

Deferred income taxes

--

1,194

--

Deferred compensation

11,017

12,412

12,396

Minority interests

--

1,313

1,375

Shareholders' equity

300,235

328,561

310,650

 

$438,151

$517,682

$472,572

 


Close window | Back to top

Copyright 2014 CDI Corporation