The Solomon Page Group Ltd. Announces Record First Quarter Results
Tuesday February 10, 11:54 am Eastern Time
Company Press Release
SOURCE: The Solomon Page Group
NEW YORK Feb. 10 /PRNewswire/ -- The Solomon Page Group, Ltd. (Nasdaq: SOLP - news) today announced results for its first quarter ended December 31, 1997.
RESULTS
For the first quarter, revenues increased 86% to a record $10,213,000 from $5,478,000 for the same period last year. Income from operations for the three months ended December 31, 1997 increased to $729,000 from $394,000 for the same period last year. Net income for the first quarter was $407,000 compared to $342,000 for the same period a year earlier. Net income for the three months ended December 31, 1997 and 1996 reflects an effective tax rate of 45% and 20% respectively. The increase is due to the utilization of net operating loss carryforwards during 1996. Basic Earnings per share [EPS] was $.08 and $.07 and Diluted EPS was $.07 and $.06 for the three months ended December 31, 1997, respectively. The number of weighted average common shares outstanding utilized to compute basic EPS was 5,129, 285 and 5,139,175 and to compute diluted EPS was 6,136,667 and 5,394,626 for the three months ended December 31, 1997 and 1996, respectively.
The Company continues to experience a strong rate of growth in all of its strategic business sectors. The retained executive search and full time contingency recruitment segments experienced an increase in revenues of 54% to $4,289,000 for the three months ended December 31, 1997, versus $2,782,000 for the year earlier period. The temporary staffing and consulting division reported revenues of $5,924,000 for the first quarter, an increase of 120% over last year's $2,696,000.
On October 31, 1997, the Company's Board of Directors authorized the repurchase of up to 1,000,000 of the Company's Class A Redeemable Common Stock Warrants in the open market or privately negotiated transactions. The Company has completed the repurchase of the 1,000,000 Class A Warrants for an aggregate purchase price of $1,053,997.
THE OUTLOOK
Commenting on the results, Lloyd Solomon, Chief Executive Officer, noted ''We are very pleased with the significant progress and growth the company has experienced towards reaching our goal of becoming a strategic partner with our clients in a variety of disciplines and geographic locations both in full time and temporary staffing. The consistency in the Company's revenue growth and profitability supports our business plan of rapid expansion and diversification. Also, we are excited by the progress of our temporary staffing and consulting efforts in the information technology, accounting and human resources areas. Our accomplishments are a testament to the consultative approach taken to client relationships combined with a strong team commitment to excellence by each of our valued employees.'' In addition, the successful repurchase of 1,000,000 Class A Warrants is indicative of our belief that the long-term outlook for continued growth in revenues and profits is quite strong and that the price of our securities does not appropriately reflect our results or prospects.
COMPANY OVERVIEW
Solomon Page Group Ltd. is a specialty niche provider of staffing solutions in the areas of retained executive search, full time contingency recruitment and temporary staffing and consulting. The company has eight lines of business including four industry (capital markets, publishing & new media, healthcare and fashion services), and four functional (information technology, accounting, human resources and legal) categories. Retained executive search services are provided to clients in the capital markets, publishing & new media, and managed healthcare industries. Full time contingency recruitment is offered in, information technology, accounting, human, resources, legal and fashion services areas, while temporary staffing and consulting is provided in information technology, accounting and human resources.
PLEASE NOTE:
Solomon Page also announced that it will hold a Conference Call on Thursday February 12, 1998 at 9:30 a.m. EST to discuss the first quarter results and the Company's future. Interested parties should call 1-800-946-0719 prior to 9:30 a.m. (Confirmation code is 432622)
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: business conditions and growth in the staffing industry and general economy; competitive factors, risks due to shifts in market demand; changes in service mix; and the risk factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, as well as assumptions regarding the foregoing. The words ''believe,'' ''estimate,'' ''expect,'' ''intend,'' anticipate'' and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on those forward-looking statements. |
