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FORT LAUDERDALE, Fla., Feb. 11 /PRNewswire-FirstCall/ -- Spherion Corporation (NYSE: SFN) today announced financial results for the fourth quarter ended December 30, 2007.
Spherion President and Chief Executive Officer Roy Krause commented, "2007 was a pivotal year for Spherion. The Company successfully grew both revenues and earnings in a staffing and recruiting market that was generally difficult. The performance reflects our focused business strategy and operational execution. Fourth quarter revenues grew on an organic basis 3.1% and adjusted earnings per share from continuing operations grew 33%. Additionally, as recently announced, we have completed the integration of Todays Staffing and a significant portion of the Technisource integration and are excited about the contributions that both of these businesses will make to our 2008 performance."
FINANCIAL HIGHLIGHTS
- Fourth quarter 2007 revenues were 17% higher year over year,
$582 million compared with $498 million last year.
- Earnings from continuing operations in the fourth quarter were $10.0
million, or $0.18 per share, compared with $10.3 million, or $0.18 per
share, in the prior year.
- Adjusted earnings from continuing operations in the fourth quarter of
2007 were $11.1 million, or $0.20 per share compared with adjusted
earnings in the same prior year period of $8.5 million, or $0.15 per
share. Adjusted earnings from continuing operations exclude
acquisition integration costs, a charge related to the bankruptcy of a
vendor manager, and in the prior year certain tax credits and other
items.
- Earnings before interest, taxes, depreciation and amortization (EBITDA)
in the fourth quarter reached $20.8 million, or 3.6% of revenue,
compared with $18.3 million or 3.7% of revenue in the fourth quarter
last year.
- Revenues for the 2007 full year were $2.0 billion, up from revenues for
the same period in 2006 of $1.9 billion. Earnings from continuing
operations for the 2007 full year were up 31% to $29.1 million, or
$0.51 per share, compared with $22.3 million, or $0.39 per share, for
the same period in 2006. Net earnings were $25.3 million, or $0.44 per
share, for full year 2007, compared with $54.7 million, or $0.95 per
share, in 2006.
Krause continued, "In 2007 we made significant progress growing the higher margin areas of our business including specialty administrative services, professional services and recruitment process outsourcing. The fourth quarter addition of Todays Staffing and Technisource continues our strategy of expanding margins and increasing market share in targeted markets. We are excited about the prospects of this strategy and believe it will be successful even as we proceed through this period of economic uncertainty."
OPERATING PERFORMANCE
Within Staffing Services, revenues were up 14.6%; 3.2% on an organic basis. Targeted small and mid-sized accounts increased 20.4%; 2.7% on an organic basis. Gross profit margins were 19.9% in the fourth quarter of 2007 compared with 20.6% in the fourth quarter of 2006 and were down primarily due to less improvement in prior year workers' compensation trends and a higher seasonal ramp in large account business. These margin impacts were partially offset by improvements in managed services due to recruitment process outsourcing expansion and higher permanent placement. Selling, general and administrative expenses were $73.1 million and decreased to 17.1% of revenue in the fourth quarter of 2007 compared with $65.7 million or 17.6% of revenue last year. Segment operating profit was $12.1 million, $12.7 million excluding the impact of the vendor manager bankruptcy or 3.0% of revenue in the fourth quarter of 2007, compared with $11.1 million or 3.0% of revenue in the fourth quarter of 2006.
Within Professional Services, revenues were up 23.2%; 2.7% on an organic basis. Gross profit margins in the fourth quarter of 2007 were 32.0%, compared with 33.3% in the prior year reflecting a lower mix of permanent placement revenues partially offset by improvement in pricing. Selling, general and administrative expenses of $41.3 million decreased to 26.7% of revenue in the fourth quarter of 2007 compared with $35.7 million or 28.5% of revenue in the fourth quarter last year. Segment operating profit was $8.1 million, $8.6 million excluding the impact of the vendor manager bankruptcy or approximately 5.6% of revenue in the fourth quarter of 2007, compared with $6.0 million or approximately 4.8% of revenue in the same period last year.
OTHER ITEMS
During 2007, the Company generated EBITDA of $69.0 million, a 27.7% increase over 2006. The Company had net debt of $92.9 million and availability on its credit facilities of $105 million at the end of the year. Capital expenditures during the fourth quarter were $2.3 million, and full year capital expenditures were $8.3 million.
The Company purchased 100,000 shares of its common stock during the fourth quarter of 2007 at an average price of $7.49 per share. For the full year, the Company purchased a total of 1,177,200 shares at an average price of $8.69 per share. The Company also recently announced that its Board of Directors authorized the repurchase of up to $25 million of the Company's outstanding common stock.
OUTLOOK
Krause commented, "We are focused on growing our Company as we continue to change the customer and business mix toward higher margin services across the business. Based on recent trends, the Company anticipates revenue for the first quarter will be between $585 and $600 million, reflecting organic growth of about 1% to 3% over the prior year. Adjusted earnings from continuing operations are expected to be between $0.07 and $0.11 per share, assuming a 40% effective tax rate, and excluding one time costs of $1.0 million related to the recent acquisitions. Earnings from continuing operations inclusive of the one time costs are expected to be between $0.06 and $0.10 per share."
ABOUT SPHERION
Spherion Corporation (NYSE: SFN) is a leading recruiting and staffing company that provides integrated solutions to meet the evolving needs of companies and job candidates. As an industry pioneer for more than 60 years, Spherion has sourced, screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs.
With approximately 700 locations in the United States and Canada, Spherion delivers innovative workforce solutions that improve business performance. Spherion provides its services to more than 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing more than 300,000 people annually through its network, Spherion is one of North America's largest employers. Spherion operates under the following brands: Spherion Staffing Services Group for administrative, clerical and light industrial workers; Technisource for technology professionals and solutions; The Mergis Group for accounting and finance and other professional positions; Todays Staffing for specialty administrative personnel; and Spherion Recruitment Process Outsourcing. To learn more, visit http://www.spherion.com/
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. Factors that could cause future results to differ from current expectations include risks associated with: Competition - our business operates in highly competitive markets with low barriers to entry; Economic conditions - any significant economic downturn could result in lower revenues or a significant reduction in demand from our customers may result in a material impact on the results of our operations; Corporate strategy - we may not achieve the intended effects of our business strategy; Termination provisions - certain contracts contain termination provisions and pricing risks; Failure to perform - our failure or inability to perform under customer contracts could result in damage to our reputation and give rise to legal claims; Disposition of businesses - the disposition of businesses previously sold may create contractual liabilities associated with indemnifications provided; Business interruptions - natural disasters or failures with hardware, software or utilities could adversely affect our ability to complete normal business processes; Tax filings - regulatory challenges to our tax filing positions could result in additional taxes; Personnel - our business is dependent upon the availability of qualified personnel and we may lose key personnel which could cause our business to suffer; Litigation - we may be exposed to employment-related claims and costs and we are a defendant in a variety of litigation and other actions from time to time; Common stock - the price of our common stock may fluctuate significantly, which may result in losses for our investors; Government Regulation - government regulation may increase our costs; International operations - we are subject to business risks associated with our operations in Canada which could make those operations more costly; Integrating acquisitions - managing or integrating any future acquisitions may strain our resources; and Debt compliance - failure to meet certain covenant requirements under our credit facility could impact part or all of our availability to borrow. These and additional factors discussed in this release and in Spherion's filings with the Securities and Exchange Commission could cause the Company's actual results to differ materially from any projections contained in this release.
Spherion Corporation prepares its financial statements in accordance with generally accepted accounting principles (GAAP). Organic revenue growth is a non-GAAP financial measure, which includes pro-forma revenues impacted by acquired companies. Adjusted earnings from continuing operations is a non-GAAP financial measure, which excludes certain non-operating related charges and gains. Items excluded from the calculation of adjusted earnings from continuing operations include certain 2006 work opportunity tax credits due to a late year retroactive law change, interest expense related to adjustment of the Canadian purchase liability, a vendor manager bankruptcy charge, and restructuring and other charges related to acquisitions. EBITDA from continuing operations is a non-GAAP financial measure which excludes interest, taxes, depreciation and amortization from earnings from continuing operations. Organic growth, adjusted earnings and EBITDA from continuing operations are key measures used by management to evaluate its operations. Management includes revenues prior to acquisition date for acquired companies in the organic revenue growth calculation in order to evaluate the Company's operating performance. Organic growth, adjusted earnings and EBITDA from continuing operations should not be considered measures of financial performance in isolation or as an alternative to revenue growth or earnings from continuing operations or net earnings (loss) as determined in the Statement of Earnings in accordance with GAAP, and, as presented, may not be comparable to similarly titled measures of other companies, and therefore this measure has material limitations. Items excluded from adjusted earnings from continuing operations are significant components in understanding and assessing financial performance.
SPHERION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in thousands, except per share amounts)
Three Months Ended
December 30, December 31,
2007 2006
Revenues (1) $581,600 $498,270
Cost of services (2) 446,999 379,729
Gross profit 134,601 118,541
Selling, general and administrative
expenses 119,328 105,781
Interest expense 1,155 494
Interest income (869) (989)
Restructuring and other charges 700 126
120,314 105,412
Earnings from continuing operations
before income taxes 14,287 13,129
Income tax expense (4,270) (2,869)
Earnings from continuing operations 10,017 10,260
(Loss) earnings from discontinued
operations, net of tax (250) 29,549
Net earnings $9,767 $39,809
Earnings per share, Basic and Diluted*:
Earnings from continuing
operations $0.18 $0.18
Earnings from discontinued
operations - 0.52
$0.17 $0.70
Weighted-average shares used in
computation of earnings per share:
Basic 55,972 56,557
Diluted 56,633 56,936
(1) Includes sales of all company-owned and licensed offices and
royalties on sales of franchised offices.
(2) Gross profit is revenues less temporary employee wages, employment
related taxes such as FICA, federal and state unemployment taxes,
medical and other insurance for temporary employees, workers'
compensation, benefits, billable expenses and other direct costs.
* Earnings per share amounts are calculated independently for each
component and may not add due to rounding.
SPHERION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in thousands, except per share amounts)
Twelve Months Ended
December 30, December 31,
2007 2006
Revenues (1) $2,017,114 $1,922,735
Cost of services (2) 1,539,128 1,475,656
Gross profit 477,986 447,079
Selling, general and administrative
expenses 431,695 415,415
Interest expense 3,746 1,965
Interest income (4,631) (4,055)
Restructuring and other charges
(credits) 700 (177)
431,510 413,148
Earnings from continuing operations
before income taxes 46,476 33,931
Income tax expense (17,339) (11,608)
Earnings from continuing operations 29,137 22,323
(Loss) earnings from
discontinued operations, net of
tax (3,871) 32,359
Net earnings $25,266 $54,682
Earnings per share-Basic:
Earnings from continuing
operations $0.52 $0.39
(Loss) earnings from discontinued
operations (0.07) 0.57
$0.45 $0.96
Earnings per share-Diluted:
Earnings from continuing
operations $0.51 $0.39
(Loss) earnings from discontinued
operations (0.07) 0.56
$0.44 $0.95
Weighted-average shares used in
computation of earnings per share:
Basic 56,234 57,212
Diluted 56,893 57,784
(1) Includes sales of all company-owned and licensed offices and
royalties on sales of franchised offices.
(2) Gross profit is revenues less temporary employee wages, employment
related taxes such as FICA, federal and state unemployment taxes,
medical and other insurance for temporary employees, workers'
compensation, benefits, billable expenses and other direct costs.
SPHERION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share data)
December 30, December 31,
Assets 2007 2006
Current Assets:
Cash and cash equivalents $15,324 $54,640
Receivables, less allowance for
doubtful accounts of $6,523 and
$3,354, respectively 347,908 274,185
Deferred tax asset 13,413 11,462
Insurance deposit 6,986 24,501
Other current assets 22,606 16,414
Total current assets 406,237 381,202
Goodwill 146,584 49,703
Property and equipment, net of
accumulated depreciation of $118,820
and $93,723, respectively 79,354 87,291
Deferred tax asset 102,024 122,867
Trade names and other intangibles,
net 76,776 271
Insurance deposit 11,259 25,177
Other assets 22,584 26,876
$844,818 $693,387
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and other
accrued expenses $79,779 $78,368
Accrued salaries, wages and
payroll taxes 78,850 59,062
Revolving lines of credit 84,971 -
Accrued insurance reserves 19,174 22,368
Accrued income tax payable 1,042 3,512
Current portion of long-term
debt and other short-term
borrowings 1,064 2,068
Other current liabilities 16,419 8,555
Total current liabilities 281,299 173,933
Long-term debt, net of current
portion 22,148 2,377
Accrued insurance reserves 20,501 20,292
Deferred compensation 17,287 18,984
Other long-term liabilities 2,923 6,659
Total liabilities 344,158 222,245
Stockholders' Equity:
Preferred stock, par value $0.01
per share; authorized,
2,500,000 shares; none issued
or outstanding - -
Common stock, par value $0.01
per share; authorized,
200,000,000; issued
65,341,609 shares 653 653
Treasury stock, at cost,
9,443,034 and 8,777,220 shares,
respectively (83,681) (77,856)
Additional paid-in capital 848,628 844,735
Accumulated deficit (273,393) (300,060)
Accumulated other comprehensive
income 8,453 3,670
Total stockholders' equity 500,660 471,142
$844,818 $693,387
SPHERION CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share amounts)
Management
Guidance
Three
Months Three Months Twelve Months
Ended Ended Ended
March 30, Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2008 2007 2006 2007 2006
Adjusted earnings from
continuing operations $11,146 $8,530 $32,612 $21,876
Work Opportunity Tax Credit
and other credits - 1,481 - -
Adjustment of Canadian
Purchase Liability - - (2,346) -
Vendor management bankruptcy
charge, net of tax (703) - (703) -
Restructuring and other
charges, net of tax benefit
(expense) (426) 249 (426) 447
Earnings from continuing
operations 10,017 10,260 29,137 22,323
(Loss) earnings from
discontinued operations,
net of tax (250) 29,549 (3,871) 32,359
Net earnings $9,767 $39,809 $25,266 $54,682
Per share-Diluted amounts:
Adjusted earnings from $0.07 to
continuing operations $0.11 $0.20 $0.15 $0.57 $0.38
Work Opportunity Tax Credit
and other credits - - 0.03 - -
Adjustment of Canadian
Purchase Liability - - - (0.04) -
Vendor management bankruptcy
charge, net of tax - (0.01) - (0.01) -
Restructuring and other
charges, net of tax benefit
(expense) (0.01) (0.01) - (0.01) 0.01
Earnings from continuing $0.06 to
operations $0.10 0.18 0.18 0.51 0.39
(Loss) earnings from
discontinued operations,
net of tax - 0.52 (0.07) 0.56
Net earnings * $0.17 $0.70 $0.44 $0.95
Diluted weighted-average
shares used in computation
of earnings per share 56,633 56,936 56,893 57,784
* Earnings per share amounts are calculated independently for each
component and may not add due to rounding.
RECONCILIATION OF EBITDA TO EARNINGS FROM CONTINUING OPERATIONS
Three Months Twelve Months
Ended Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2007 2006 2007 2006
EBITDA from continuing operations $20,798 $18,348 $69,000 $54,039
Interest income 869 989 4,631 4,055
Interest expense (1,155) (494) (3,746) (1,965)
Depreciation and amortization (6,225) (5,714) (23,409) (22,198)
Earnings from continuing operations
before income taxes 14,287 13,129 46,476 33,931
Income tax expense (4,270) (2,869) (17,339) (11,608)
Earnings from continuing operations $10,017 $10,260 $29,137 $22,323
EBITDA as a percentage of revenue 3.6% 3.7% 3.4% 2.8%
SPHERION CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(unaudited)
RECONCILIATION OF YEAR-OVER-YEAR REVENUE GROWTH RATE
Three Months Ended Twelve Months Ended
December 30, 2007 December 30, 2007
Profess- Profess-
Total Staffing ional Total Staffing ional
Company Services Services Company Services Services
Organic revenue growth
rate 3.1% 3.2% 2.7% 0.4% 0.1% 0.9%
Revenue growth rate
contributed from
acquisitions 13.6% 11.4% 20.5% 4.5% 2.8% 9.7%
GAAP revenue growth
rate 16.7% 14.6% 23.2% 4.9% 2.9% 10.6%
Three Months Ended December 30, 2007
Revenue Growth Rate Revenue Growth Rate by
by Skill Service
------------------------- -----------------------------
Perma- Tempo-
Total Light Total nent rary Managed
Staffing Clerical Indus- Staff- Place- Staff- Services
Staffing Services trial ing ment ing
Organic revenue
growth rate 3.2% (1.5)% 11.9% 3.2% 3.7% 2.2% 11.8%
Revenue growth rate
contributed from
acquisitions 11.4% 16.3% 2.2% 11.4% 15.3% 12.7% 0.0%
GAAP revenue growth
rate 14.6% 14.8% 14.1% 14.6% 19.0% 14.9% 11.8%
Twelve Months Ended December 30, 2007
Revenue Growth Rate Revenue Growth Rate
by Skill by Service
------------------------- -----------------------------
Perma- Tempo-
Total Light Total nent rary Managed
Staffing Clerical Indus- Staff- Place- Staff- Services
Staffing Services trial ing ment ing
Organic revenue
growth rate 0.1% (1.3)% 3.0% 0.1% 4.8% (0.8)% 7.1%
Revenue growth rate
contributed from
acquisitions 2.8% 3.8% 0.6% 2.8% 1.8% 3.1% 0.0%
GAAP revenue growth
rate 2.9% 2.5% 3.6% 2.9% 6.6% 2.3% 7.1%
Three Months Ended December 30, 2007
Revenue Growth Rate Revenue Growth Rate
by Skill by Service
------------------------------ ---------------------
Informa- Finance Perma- Tempo-
Total tion & Total nent rary
Profess- Techno- Accoun- Profess- Place- Staff
Professional Services ional logy ting Other ional ment ing
Organic revenue growth
rate 2.7% 1.8% 2.2% 11.5% 2.7% (8.7)% 3.6%
Revenue growth rate
contributed from
acquisitions 20.5% 29.1% 4.2% 0.0% 20.5% 7.2% 22.4%
GAAP revenue growth
rate 23.2% 30.9% 6.4% 11.5% 23.2% (1.5)% 26.0%
Twelve Months Ended December 30, 2007
Revenue Growth Rate Revenue Growth Rate
by Skill by Service
---------------------------- ----------------------
Informa- Finance Perma- Tempo-
Total tion & Total nent rary
Profess- Techno- Accoun- Profess- Place- Staff
Professional Services ional logy ting Other ional ment ing
Organic revenue growth
rate 0.9% (0.4)% 4.7% 6.7% 0.9% 1.5% 0.9%
Revenue growth rate
contributed from
acquisitions 9.7% 13.6% 0.6% 0.0% 9.7% 3.6% 10.4%
GAAP revenue growth
rate 10.6% 13.2% 5.3% 6.7% 10.6% 5.1% 11.3%
SPHERION CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(unaudited, dollar amounts in thousands)
Three Months Ended
December 30, December 31, September 30,
2007 2006 2007
Revenues:
Staffing Services $427,091 $372,832 $362,262
Professional Services 154,509 125,438 132,906
Segment revenue $581,600 $498,270 $495,168
Gross profit:
Staffing Services $85,202 $76,764 $73,855
Professional Services 49,399 41,777 45,149
Segment gross profit $134,601 $118,541 $119,004
Segment SG&A
Staffing Services $(73,120) $(65,672) $(61,933)
Professional Services (41,324) (35,748) (38,958)
Segment SG&A $(114,444) $(101,420) $(100,891)
Segment operating profit:
Staffing Services $12,082 $11,092 $11,922
Professional Services 8,075 6,029 6,191
Segment operating profit 20,157 17,121 18,113
Unallocated corporate costs (4,016) (4,315) (3,876)
Amortization of intangibles (868) (46) (290)
Interest expense (1,155) (494) (259)
Interest income 869 989 1,285
Restructuring and other charges (700) (126) -
Earnings from continuing
operations before income
taxes $14,287 $13,129 $14,973
MEMO:
Gross profit margin:
Staffing Services 19.9% 20.6% 20.4%
Professional Services 32.0% 33.3% 34.0%
Total Spherion 23.1% 23.8% 24.0%
Segment SG&A:
Staffing Services 17.1% 17.6% 17.1%
Professional Services 26.7% 28.5% 29.3%
Total Spherion 19.7% 20.4% 20.4%
Segment operating profit margin:
Staffing Services 2.8% 3.0% 3.3%
Professional Services 5.2% 4.8% 4.7%
Total Spherion 3.5% 3.4% 3.7%
Supplemental Cash Flow Information:
Operating cash flow $19,881 $26,121 $11,232
Capital expenditures $2,292 $5,782 $2,051
Depreciation and amortization $6,225 $5,714 $5,637
DSO 50 50 53
SPHERION CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(unaudited, dollar amounts in thousands)
Twelve Months Ended
December 30, December 31,
2007 2006
Revenues:
Staffing Services $1,472,236 $1,430,062
Professional Services 544,878 492,673
Segment revenue $2,017,114 $1,922,735
Gross profit:
Staffing Services $296,303 $285,537
Professional Services 181,683 161,542
Segment gross profit $477,986 $447,079
Segment SG&A
Staffing Services $(260,844) $(261,410)
Professional Services (153,452) (138,263)
Segment SG&A $(414,296) $(399,673)
Segment operating profit:
Staffing Services $35,459 $24,127
Professional Services 28,231 23,279
Segment operating profit 63,690 47,406
Unallocated corporate costs (15,993) (15,541)
Amortization of intangibles (1,406) (201)
Interest expense (3,746) (1,965)
Interest income 4,631 4,055
Restructuring and other charges (700) 177
Earnings from continuing
operations before income
taxes $46,476 $33,931
MEMO:
Gross profit margin:
Staffing Services 20.1% 20.0%
Professional Services 33.3% 32.8%
Total Spherion 23.7% 23.3%
Segment SG&A:
Staffing Services 17.7% 18.3%
Professional Services 28.2% 28.1%
Total Spherion 20.5% 20.8%
Segment operating profit margin:
Staffing Services 2.4% 1.7%
Professional Services 5.2% 4.7%
Total Spherion 3.2% 2.5%
Supplemental Cash Flow Information:
Operating cash flow $56,144 $46,085
Capital expenditures $8,298 $22,677
Depreciation and amortization $23,409 $22,198
DSO 50 50
SPHERION CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(unaudited, dollar amounts in thousands)
Three Months Ended
Dec. 30 Dec. 31 Sept. 30,
2007 2006 2007
Staffing Services
Revenue by Skill:
Clerical $264,668 $230,530 $219,546
Light Industrial 162,423 142,302 142,716
Segment Revenue $427,091 $372,832 $362,262
Revenue by Service:
Temporary Staffing $371,012 $323,000 $309,739
Managed Services 50,254 44,938 46,480
Permanent Placement 5,825 4,894 6,043
Segment Revenue $427,091 $372,832 $362,262
Gross Profit Margin by Service:
(As % of Applicable Revenue)
Temporary Staffing 17.1% 18.3% 17.3%
Managed Services 31.9% 28.7% 30.4%
Permanent Placement 100.0% 100.0% 100.0%
Total Staffing Services 19.9% 20.6% 20.4%
Professional Services
Revenue by Skill:
Information Technology $107,847 $82,413 $87,053
Finance & Accounting 27,503 25,840 26,980
Other 19,159 17,185 18,873
Segment Revenue $154,509 $125,438 $132,906
Revenue by Service:
Temporary Staffing $141,966 $112,710 $119,071
Permanent Placement 12,543 12,728 13,835
Segment Revenue $154,509 $125,438 $132,906
Gross Profit Margin by Service:
(As % of Applicable Revenue)
Temporary Staffing 26.0% 25.8% 26.3%
Permanent Placement 100.0% 100.0% 100.0%
Total Professional Services 32.0% 33.3% 34.0%
SPHERION CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(unaudited, dollar amounts in thousands)
Twelve Months Ended
Dec. 30, 2007 Dec. 31, 2006
Staffing Services
Revenue by Skill:
Clerical $920,558 $897,746
Light Industrial 551,678 532,316
Segment Revenue $1,472,236 $1,430,062
Revenue by Service:
Temporary Staffing $1,259,411 $1,231,301
Managed Services 189,574 176,944
Permanent Placement 23,251 21,817
Segment Revenue $1,472,236 $1,430,062
Gross Profit Margin by Service:
(As % of Applicable Revenue)
Temporary Staffing 17.0% 17.3%
Managed Services 30.9% 29.0%
Permanent Placement 100.0% 100.0%
Total Staffing Services 20.1% 20.0%
Professional Services
Revenue by Skill:
Information Technology $362,569 $320,389
Finance & Accounting 109,712 104,225
Other 72,597 68,059
Segment Revenue $544,878 $492,673
Revenue by Service:
Temporary Staffing $489,713 $440,170
Permanent Placement 55,165 52,503
Segment Revenue $544,878 $492,673
Gross Profit Margin by Service:
(As % of Applicable Revenue)
Temporary Staffing 25.8% 24.8%
Permanent Placement 100.0% 100.0%
Total Professional Services 33.3% 32.8%
SOURCE: Spherion Corporation
CONTACT: Investors, Randy Atkinson, +1-954-308-7639,
randalatkinson@spherion.com, or Media, Kip Havel, 800-422-3819,
kiphavel@spherion.com, both of Spherion Corporation
Web site: http://www.spherion.com/
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