JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 10, 1998--AccuStaff
Incorporated (NYSE:ASI), a global provider of business services, including
consulting, outsourcing, outplacement, training and strategic staffing, today
announced record results for the fourth quarter and year ended December 31,
1997.
Revenues for the fourth quarter of 1997 totaled $675.1 million, an increase of 43%
over 1996 revenues of $472.8 million in the year-earlier period. Net income for the
quarter, excluding merger-related costs of $5.0 million associated with the
acquisition of Office Specialists, Inc., which has been accounted for as a pooling of
interests, totaled $33.0 million, an increase of 54% over fourth quarter 1996 net
income of $21.4 million, before merger-related costs of $23.8 million. Diluted
earnings per share, before merger-related costs, rose 50% to $.30 per share,
compared with $.20, excluding merger-related costs incurred in the fourth quarter
of 1996.
For the year ended December 31, 1997, revenues were up 50% to a record $2.4
billion from $1.6 billion in 1996. Net income for 1997, before merger-related costs,
increased 74% to $107 million compared with $61.5 million, excluding
merger-related costs, for 1996. Diluted earnings per share, before merger-related
costs, rose 58% to $.98 in 1997 compared with $.62 in 1996.
The overall gross margin reached 26.2% for the fourth quarter versus 24.5% for
the same period last year, and earnings before interest, taxes, depreciation and
amortization (EBITDA), before merger-related costs, rose to 10.3% versus 8.6%
last year.
The 1997 and 1996 financial results, including per share figures, reflect the
operations of, and shares issued in conjunction with, the acquisitions of Office
Specialists, Inc., Career Horizons, Inc., HJM Consulting, Inc., and the McKinley
Group, Inc., which were tax-free mergers that have been accounted for as poolings
of interests.
Commenting on the results, AccuStaff Chairman, President and Chief Executive
Officer Derek E. Dewan said, "The record results were generated by organic
growth and profitability from existing operations together with the contributions
from acquisitions made throughout the year. Nineteen ninety-seven was an
outstanding year as we continued our strategy of becoming a global business
services company. We completed the acquisition of 26 companies during the year,
including three in the United Kingdom -- marking our entry into the European
market. The integration of all acquired companies continues to proceed smoothly."
Dewan added, "Our financial performance gives us the leverage with which to
invest in technology, and sales and marketing. Allocating resources to these areas
will continue to give us a competitive advantage in the marketplace. We also are
confident that our brand strategy will clearly distinguish us as a high-end, specialty
service provider."
According to Tim Payne, modis President and Chief Operating Officer, "Moving to
the modis brand for our information technology division has been an overwhelming
success. We expect to consummate many strategic vendor and customer alliances
which will help propel us to over a billion dollars in information technology revenue
for 1998."
"Dewan concluded, "We plan to open additional strategically located offices in
1998 and expect our expanded cross-selling efforts to produce even greater results
than in 1997. Together with the growth generated by our acquisition activity, we
expect 1998 to be a great year. We plan to focus our acquisition efforts on both the
U.S. and foreign markets as we pursue our strategic goal of becoming the premier
international provider of business services."
AccuStaff Incorporated is a global provider of business services, including
consulting, outsourcing, outplacement, training, and strategic staffing services, to
the Fortune 1000 and other leading businesses. Headquartered in Jacksonville,
Florida, the Company has over 1,000 company-owned, franchised, and associated
offices in the United States, Canada, the United Kingdom, Continental Europe, and
Latin America.
Statements made in this press release, other than those concerning historical
information, should be considered forward- looking and subject to various risks
and uncertainties. The Company's actual results may differ materially from the
results anticipated in these forward-looking statements as a result of certain factors
set forth under Risk Factors and elsewhere in the Company's reports on Forms
10-K, 10-Q and 8-K made under the Securities Exchange Act of 1934. For
instance, the Company's results of operations may differ materially from those
anticipated in the forward-looking statements due to, among other things:
management's ability to effectively integrate the combined operations of Career
Horizons, Inc. and the Company; the Company's ability to successfully identify
suitable acquisition candidates, complete acquisitions or integrate the acquired
business into its operations; the general level of economic activity in the Company's
markets; increased price competition; and the continued availability of qualified
temporary personnel -- particularly in the information technology and other
professional segments of the Company's businesses. In addition, the market price
of the company's stock may from time to time be significantly volatile as a result
of, among other things: the Company's operating results; the operating results of
other temporary staffing companies; and changes in the performance of the stock
market in general.
ACCUSTAFF INCORPORATED
Unaudited Financial Highlights
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
Operating Highlights: 1997 1996 1997 1996
Revenue $675,145 $ 472,762 $2,424,826 $1,611,447
Gross profit 176,964 115,882 613,728 376,693
Income from operations 59,473 33,982 191,564 101,887
Non-recurring merger and
integration costs (5,000) (25,702) (5,000) (28,502)
Income before provision
for income taxes 47,790 7,458 167,575 69,982
Provision for income
taxes 19,796 12,976 65,542 38,772
Net income (loss) $ 27,994 $ (5,518) $ 102,033 $ 31,210
Pro forma net income
(loss) $ 27,994 $ (2,439) $ 102,033 $ 34,852
Pro forma earnings
(loss) per common and
common share
equivalents $ 0.25 $ (0.01) $ 0.93 $ 0.36
Pro forma earnings per
share before non-
recurring merger and
integration costs $ 0.30 $ 0.20 $ 0.98 $ 0.62
Weighted average shares
outstanding 114,700 111,293 113,109 103,680
As of
Dec. 31, Dec. 31,
Balance Sheet Highlights: 1997 1996
Working capital $ 346,829 $ 280,246
Total assets 1,498,075 929,215
Long-term debt 380,120 20,627
Convertible debentures 86,250 86,250
Stockholders' equity 812,841 669,779
All periods presented reflect the poolings with Career Horizons,
Inc., HJM Consulting, Inc., The McKinley Group, Inc. and Office
Specialists, Inc.
CONTACT: AccuStaff Incorporated, Jacksonville
Michael D. Abney, 904/360-2505
Derek E. Dewan, 904/360-2525
accustaff.com
Quote for referenced ticker symbols: ASI
c 1998, Business Wire
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