Thursday July 27, 6:00 am Eastern Time
Company Press Release
SOURCE: Alternative Resources Corporation
Alternative Resources Corporation Reports Second
Quarter 2000 Financial Results
BARRINGTON, Ill., July 27 /PRNewswire/ -- Alternative Resources Corporation (ARC) (Nasdaq: ALRC - news), a
leading provider of technology management services, today announced second quarter revenues of $65.9 million and a net
loss of ($0.07) per share, EBITDA was $0.3 million and cash earnings per share were marginally positive.
A restructuring of operations that disrupted normal business activities was the principal reason for the revenue reduction.
Revenue from the time and material business was $45.6 million down 22% from $58.2 million last year. Solutions revenue
was $20.2 million down 27% from $27.8 million in the second quarter of 1999. Revenue in the second quarter of 1999
included $1.4 million from the Pacbase consulting business, which was sold in September 1999. Excluding this revenue, the
Solutions business decreased by 23%.
Commenting on the quarter, Raymond R. Hipp, Chairman and Chief Executive Officer said, ``During the quarter we
experienced the full impact of our restructuring. There was significant disruption to the sales and recruiting organizations as
we eliminated the branch structure and management. In addition, we completed an intense training program for all field
personnel as we implemented our salesforce automation and eBusiness exchange applications and processes. Although
these actions contributed to the difficult quarter, they were absolutely necessary to position ARC as an efficient, web-based,
national IT sourcing organization.''
Hipp further commented, ``Despite a very difficult quarter in terms of our transition and training, I am very pleased with the
progress we have made in executing the eBusiness strategies we have previously outlined. This week we rolled out our
''Next Level Careers`` talent exchange that will make us much more efficient and effective in dealing with our customers and
consultants. During the quarter we entered into partnerships with Extensity and ELoyalty as we move ARC into the
eBusiness economy. And, we have grown our consulting business revenue by 100% since the beginning of the year with
many new consulting assignments oriented towards ecommerce, web-enablement type projects. We have also experienced
a significant increase in our traditional solutions pipeline having recently signed agreements with Eloyalty and Cross Country
Automation for full-service help desk projects.''
Hipp concluded by commenting, ``ARC has received a commitment for long-term financing which is expected to close on
August 1st. This re-financing of our $52 million debt, coupled with the progress we are making in our model changes and in
executing our eBusiness strategies makes me cautiously optimistic about the second half of the year.
About ARC
Headquartered in Barrington, Ill., Alternative Resources Corporation, www.arcnow.com , is a leading provider of
information technology management and staffing services. The company serves Fortune 1000 and mid-sized clients
throughout the U.S. and Canada. |
