Bill,
Numerous temporary employment companies have reported stellar earnings in the third quarter ending September. I expect that SOLP will also have a banner fourth quarter ending October regardless of the warrants. Don't be surprised if SOLP tops out around $6.75 at the ask. Other announcements regarding the success of the warrant buyback could drive the price even higher.
If SOLP was not doing well would they be utilizing cash to buy back warrants? My expectations are high! We should see an eps better than last years fourth quarter which was $0.08 eps.
Regards,
Tom
NEW YORK, Dec. 18 /PRNewswire/ -- The Solomon-Page Group Ltd. Nasdaq: SOLP), a provider of professional placement services in the areas of retained executive search, contingency recruitment and interim staffing, reported significantly higher revenues and profits for both its three month and fiscal year-end reporting periods ended September 30, 1996, compared with the same periods a year earlier.
For the three month period, revenues rose 162 percent to $5,623,000 from $2,147,000 a year ago. Net income for the three months was $391,000, or eight cents per common share, compared with a loss of $772,000 or (16 cents) per common share for the same period a year earlier.
Revenues for the fiscal year ended September 30, were $17,166,000, up 134 percent from $7,331,000 last year. Net income was $710,000, or 14 cents per share, against a loss of $1,928,000, or (39 cents) last year.
Primary income (loss) per common share for the three months and fiscal years ended September 30, reflect an increase in the weighted average common shares outstanding to 5,139,285 compared with 4,916,311 a year ago, as a result of the Company's initial public offering in October, 1994.
The Company continues to experience a strong rate of growth in all of its strategic business niches. The retained executive search and contingency recruitment segments experienced an increase in revenues of 105 percent to approximately $3,014,000 for the three months versus $1,468,000 a year earlier, and for the fiscal year increased 81% to $10,559,000, from $5,831,000 a year earlier. Information Technology Partners, Inc. (ITP), a wholly owned subsidiary of Solomon-Page established in November 1994 to provide interim staffing services to the information technology market, reported revenues of $2,609,000 for the quarter, an increase of 284 percent over last year's $679,000, while for the fiscal year revenues went up 340% to $6,607,000 from $1,500,000 a year earlier.
Commenting on the results, Lloyd Solomon, chief executive officer, noted, "It is management's belief that the gains in revenues and profits in fiscal 1996 illustrated the value of the Company's aggressive, growth strategy employed during fiscal 1995. The addition of experienced professionals in all business niches in conjunction with the infrastructure implemented to support current anticipated growth has enhanced the Company's strategic position in the staffing industry."
Solomon-Page Group Ltd. provides retained executive search services in capital markets, publishing and healthcare, contingency recruitment in fashion services, accounting, legal, human resources and information technologies, and interim staffing in information technologies. The Company has offices in New York, New Jersey, Atlanta and San Diego.
On September 18, 1996, the Company terminated an agreement relating to 794,136 escrow shares that had been made available for issuance to certain executives of the Company to avoid charges to earnings that would have had to be recognized had vesting occurred. These escrow shares were to have been released based on the achievement by the Company of prescribed levels of pre-tax earnings. In consideration for terminating the escrow share agreement, the Company granted stock options to purchase 200,000 shares of common stock at fair market value on date of grant to each of the three executives who would have been eligible to receive escrow shares.
The Company announced separately that its Board of Directors had authorized the repurchase by the Company of up to 500,000 shares of its common stock. The purchases will be made from time to time in the open market and may also be made in privately negotiated transactions. There are (5,139,285)shares of the Company's common stock outstanding. |
