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Kforce Revenue Rises 11%

[Feb 8, 2012] Kforce Inc. (NASD: KFRC), a Tampa, Fla.-based professional staffing firm, reported fourth-quarter revenue of $285.6 million, a 10.5 percent increase from revenue of $258.5 million in the fourth quarter of the previous year.Temporary staffing revenue rose in all but one of the company’s divisions in the fourth quarter:


Technology: Up 13.1 percent to $156.5 million

Finance/accounting: Up 7.2 percent to $50.9 million

Clinical research: Up 15.4 percent to $26.0 million

Health information management: Up 17.9 percent to $18.4 million

Government solutions: Down 0.2 percent to $23.3 million


Search revenue rose 6.0 percent on a year-over-year basis to $10.4 million in the fourth quarter.Kforce’s fourth-quarter gross margin narrowed to 31.2 percent from 31.9 percent in the year-ago quarter.Fourth-quarter net income rose 11.8 percent to $7.1 million from $6.3 million in the fourth quarter of 2010.Revenue for full-year 2011 totaled $1.11 billion, a 12.1 percent increase from revenue of $990.8 million in 2010. Gross margin for the full year was 31.2 percent, down from 31.5 percent in 2010.Net income for 2011 totaled $27.2 million, up 31.6 percent from $20.6 million in 2010.
Kforce Inc. (NASD: KFRC)
For the fourth quarter ended Dec. 31, 2011, compared with the same period in the previous year.
Revenue: $285.6 million, +10.5 percent
Net income: $7.1 million, +11.8 percent
For the year ended Dec. 31, 2011 compared with the previous year.
Revenue: $1.11 billion, +12.1 percentNet income: $27.2 million, +31.6 percent Read more

IT Employment Hits All-Time High

[Feb 8, 2012] The number of U.S. information technology jobs increased by 13,300 in January to more than 4.1 million jobs, an all-time high according to a monthly index of IT jobs developed by the TechServe Alliance. January’s record surpasses the previous all-time high set in September 2008 when IT employment reached 4,088,600.On an annual basis, IT jobs were up 3.4 percent in 2011, more than double the rate of growth that IT employment experienced in 2010 of 1.5 percent. These latest numbers are based on the re-benchmarked data released by the Bureau of Labor Statistics this month.“I am thrilled that IT employment has surpassed its previous all-time high — an encouraging sign not only for the IT services industry, but the economy at large,” said Mark Roberts, CEO of TechServe Alliance. “Given strong demand for IT talent, high wages these professionals command and the benefits of IT to the broader economy, policymakers should do all they can to create an environment which encourages such work to be performed in the United States.”TechServe Alliance is a collaboration of IT staffing firms, solutions firms, clients, consultants and suppliers dedicated to advancing excellence and ethics within the IT services industry. Read more

Blog: The Executive Forum Comes of Age

[Feb 9, 2012] The Staffing Industry Executive Forum has come of age since the first one in June 1992. Barry Asin, president of Staffing Industry Analysts, writes in The Contingent Blog about the upcoming forum and how the event got its start. For the full blog, click here. Read more

Jobless Claims Fall by 15,000

[Feb 9, 2012] Initial unemployment claims fell to 358,000 in the week ended Feb. 4, a decrease of 15,000 from the previous week’s revised figure of 373,000, according to seasonally adjusted numbers released today by the U.S. Department of Labor.The four-week moving average of initial claims, which reduces the volatility of the weekly numbers, was 366,250 for the week ended Feb. 4, a decrease of 11,000 from the previous week’s revised average of 377,250. Read more

Calian Revenue Rises 7%

[Feb 9, 2012] Calian Technologies Ltd. (TSX: CTY), an Ottawa, Ont.-based firm that provides staffing and other services, reported revenue rose 6.7 percent on a year-over-year basis to C$56.8 million (US$55.7 million) in its fiscal first quarter ended Dec. 31, 2011.First-quarter revenue in Calian’s business and technology services division, which includes staffing, rose 6.1 percent to C$40.4 million (US$39.6 million) from C$38.1 million in the first quarter of the previous year.First-quarter gross margin was unchanged at 19.2 percent.Net earnings rose 14.4 percent in the first quarter to C$3.6 million (US$3.5 million) from C$3.1 million.
Calian Technologies Ltd. (TSX: CTY)
For the fiscal first quarter ended Dec. 31, 2011, compared with the same period in the previous year.
Revenue: C$56.8 million (US$55.7 million), +6.7 percentNet income: C$3.6 million (US$3.5 million), +14.4 percent Read more

PeopleLink Revenue Rises 27%

[Feb 9, 2012] Groupe Crit, a Paris-based staffing provider, reported 2011 revenue rose 27 percent at PeopleLink LLC on a constant currency basis to $135 million. PeopleLink is a South Bend, Ind.-based staffing provider. Groupe Crit acquired a majority stake in PeopleLink in September 2011. Read more

TrueBlue Q4 Revenue Rises 12%

[Feb 9, 2012] Fourth-quarter revenue rose 12.2 percent at TrueBlue Inc. (NYSE: TBI) to $350.2 million from $312.0 million in the fourth quarter of 2010. Gross margin at the Tacoma, Wash.-based industrial staffing firm narrowed to 26.2 percent in the fourth quarter from 26.3 percent in the year-ago quarter.“Our better-than-expected results were driven by additional demand in the energy industry and a successful holiday season,” said CEO Steve Cooper. “Our focus remains on our vertical market strategy, which includes our specialized expertise in the industries we serve, and increasing our value to local and national customers.”Fourth-quarter net income rose to $7.6 million, up 91.1 percent from net income of $4.0 million in the same period last yearTrueBlue reported full-year revenue of $1.32 billion, a 14.5 percent increase from the $1.15 billion reported in 2010. Full-year gross margin remained unchanged at 26.4 percent, while full-year net income rose 55.2 percent to $30.8 million from $19.8 million in 2010.
TrueBlue Inc. (NYSE: TBI)
For the fourth quarter ended Dec. 30, 2011, compared with the same period in 2010.
Revenue: $350.2 million, +12.2 percentNet income: $7.6 million, +91.1 percent
For the full year ended Dec. 30, 2011, compared to 2010.
Revenue: $1.32 billion, +14.5 percentNet income: $30.8 million, +55.2 percent Read more

Oracle to Buy Taleo for $1.9 Billion

[Feb 9, 2012] Software giant Oracle is acquiring Taleo Corp., a publicly held firm that provides talent management software, including an applicant tracking system for staffing firms. Oracle will pay $1.9 billion net of Taleo’s cash and debt.“Human capital management has become a strategic initiative for organizations,” said Thomas Kurian, executive vice president, Oracle Development. “Taleo’s industry-leading talent management cloud is an important addition to the Oracle Public Cloud.”Taleo’s board has OK’d the acquisition, and the deal is set to close in mid-2012 based on stockholder approval and regulatory approval.Taleo’s cloud manages 15 percent of all U.S. hires with more than 5,000 businesses using it, according to Oracle. Taleo’s software-as-a-service offerings include Taleo Enterprise, for larger firms, and Taleo Business Edition for smaller firms. Taleo reported revenue of $308.9 million in 2011, an increase of 30.2 percent from the previous year. It posted a net loss of $14.5 million in 2011, down from net income of $420,000 in 2010.Staffing firms are just one subset of Taleo’s customers. Examples of large companies using the company’s talent management software include Best Buy, Dell, American Airlines and Hyatt. Oracle reported that Hyatt uses Taleo software for recruiting with Taleo prescreening tools and behavioral assessments. Hyatt recruiters can also access the Taleo system via mobile devices to make offers on open positions. Hyatt has more than 75,000 employees in 45 countries. Taleo is based in Dublin, Calif., and has more than 1,400 employees worldwide. Read more

Banks Pay Most for Finance Grads

[Feb 10, 2012] Finance majors landing financial manager positions with banks earned the highest salary among bachelor’s degree-level grads from the Class of 2011, according to the National Association of Colleges and Employers. Banks paid grads in financial manager positions an average starting salary of $67,700.Finance majors who landed financial analyst positions with banks averaged $49,800. Overall, the average starting salary to finance majors — regardless of position or industry — was $48,300.Other top-paying positions for new grads include aerospace engineer, $61,900; computer scientist/systems analyst, $61,400; industrial engineer, $61,000; and computer software engineer, $60,400.Data contained in NACE’s report is reported by employers. Read more

Group Again Seeks Board-Removal Meeting

[Feb 10, 2012] A shareholder group at Barrett Business Services Inc. (NASD: BBSI) asked for a special shareholder meeting on March 13 to replace the board, according to filings with the U.S. Securities and Exchange Commission. The group had earlier called for a special meeting on Feb. 21. That meeting was not scheduled, but the company said it would consider such a request as long as the request complies with the law.The shareholder group includes Kimberly Sherertz, the widow of former Barrett Chairman and CEO William Sherertz. The group seeks to replace all board members except for Mike Elich, who also serves as CEO. The group would also add a new board slot.Sherertz reported that she and the estate of William Sherertz own more than 25 percent of the outstanding shares and that company bylaws allow those with that level of ownership to call special meetings.“An improved board of directors will benefit every one of the stockholders of Barrett Business Services,” Sherertz said. “A new board will also provide every member of the Barrett Business Services team with the tools that they need to accelerate the organic growth of our company and better serve our clients.”Barrett ranks No. 39 on Staffing Industry Analysts’ 2011 list of largest U.S. staffing firms. The Vancouver, Wash.-based firm provides staffing and professional employer organization services. Read more

California Signs Misclassification Agreement

[Feb 10, 2012] California became the 12th state to sign a memorandum of understanding with the U.S. Department of Labor to work together to root out misclassification of independent contractors.“California is proud to enter into this partnership with the U.S. Department of Labor to work together to attack the problems of the underground economy,” said California Labor Commissioner Julie Su. “Gov. Brown just signed an important law that went into effect on Jan. 1, increasing penalties for willful misclassification. With the Labor Department, we are poised to use all the tools in our arsenal to lift the floor for hardworking employers and employees throughout the state.”Other states with similar memorandums of understanding include Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.The Department of Labor collected more than $5 million in back wages in 2011 for minimum wage and overtime violations that resulted from employees being misclassified as independent contractors or otherwise not treated as employees. Read more

Forecasters: U.S. to Add 144,100 Jobs a Month

[Feb 10, 2012] Forecasters revised up their estimated job growth to average 144,100 per month in 2012, according to the Federal Reserve Bank of Philadelphia’s first-quarter Survey of Professional Forecasters released today. The previous forecast had estimated an average of 123,200 new jobs a month in 2012 in the previous report.Estimated growth in U.S. real gross domestic product for full-year 2012 was lowered to 2.3 percent from a previous estimate of 2.4 percent. Growth is projected to pick up through 2015 when forecasters estimate 3.1 percent growth. Forecasters also estimated the U.S. unemployment rate for 2012 will average 8.3 percent, down from the previous estimate of 8.8 percent.The Survey of Professional Forecasters includes estimates made by 45 economists.Click on the image below to enlarge. Read more

Around the Web

[Feb 13, 2012] The U.S. Department of Labor issued tougher rules for H-2B temporary work visas. The new rules take effect April 23. For more information, read the New York Times article here. Read more

Houston Top City for IT Jobs in 2012

[Feb 13, 2012] Houston is the top place to find an information technology job for the second year in a row, according to a list released today by Modis, an IT staffing firm. Toronto ranked as the second-best city.Houston topped the list due mainly to growing demand for IT support in healthcare as well as oil and gas, two of the city’s main industries, according to Modis. Houston is also the fourth-largest city in the U.S. and has an unemployment rate below the national average, helping to attract new talent from other parts of the country. The skills most in demand in the metro area include network engineers, project managers, business analysts, and Java and .NET developers.Toronto, which ranks No. 2, is the third-largest financial center in North America next to New York and Chicago.Top 12 Cities to Find an IT Job in 2012:


Houston

Toronto

Orlando, Fla.

San Francisco

Minneapolis

McLean, Va. 

Walnut Creek, Calif.

Detroit

Jacksonville, Fla. 

New York

Denver

Boston 


The rankings are based on internal data from Modis’ branch network. Modis is a division of Adecco S.A. Read more

Barrett Denies Second Special Meeting

[Feb 13, 2012]  Barrett Business Services Inc. (NASD: BBSI) rebuffed a shareholder group’s new plans for a special meeting to elect new board members, replacing the present directors. The group had announced new plans last week for a special meeting on March 13. The group said it owns more than 25 percent of outstanding shares, and it reported company bylaws allow for those owning 25 percent to call a special meeting. The group includes Kimberly Sherertz, the widow of former Barrett Chairman and CEO William Sherertz.However, the company reported today that it calculates the group owns less than 25 percent of outstanding shares and that the group apparently miscalculated its percentage of ownership. The Barrett “board is fully prepared to call a special meeting,” said Chairman Anthony Meeker. “However, the company cannot be expected to call a special stockholders meeting on behalf of a particular stockholder that has not been validly requested under applicable law and the company’s bylaws. In addition, the board notes the substantial cost, management time and distraction from business operations that would be caused by a contested special meeting. When Ms. Sherertz and her group provide evidence of sufficient share ownership and voting entitlement and comply with any other legal requirements, we will move ahead promptly to call a special meeting.”The shareholder group originally requested a special meeting on Feb. 21, but that was rejected by the company.The group seeks to replace all board members except for Mike Elich, who also serves as CEO. The group would also add a new board slot.Barrett ranks No. 39 on Staffing Industry Analysts’ 2011 list of largest U.S. staffing firms. The Vancouver, Wash.-based firm provides staffing and professional employer organization services. Read more

Source2 Revenue Rises 62%

[Feb 13, 2012] Source2, an Orlando, Fla.-based staffing provider, reported fourth-quarter revenue rose 62.0 percent to $5.0 million from $3.1 million in the year-ago period.Fourth-quarter gross margin fell to 19.6 percent from 23.3 percent in the year-ago period.The company posted a net loss in the fourth quarter of $24,623, compared to a net loss of $113,144 in the fourth-quarter of the previous year.For the fiscal year ended Dec. 31, 2011, the company posted revenue of $16.2 million, an 18.6 percent increase from revenue of $13.7 million in 2010.Full-year gross margin was 22.3 percent, compared to 25.7 percent in 2010.Full-year net income fell in 2011 to $4,336 from $350,073 in 2010, due primarily to higher interest expenses and an increase in government contracts, according to Source2.
Source2
For the fourth quarter ended Dec 31, 2011, compared with the same period in 2010.
Revenue: $5.0 million, +62.0 percentNet loss: $24,623, compared with a loss of $113,144
For full-year ended Dec. 31, 2011, compared with the previous year.
Revenue: $16.2 million, +18.6 percentNet income: $4,336 vs. $350,073 Read more

Fortune Industries Revenue Falls 6.5%

[Feb 13, 2012] Fortune Industries Inc. (AMEX: FFI), an Indianapolis-based professional employer organization (PEO), reported revenue fell 6.5 percent to $14.8 million in its fiscal second quarter ended Dec. 31, 2011, from revenue of $15.9 million in the same period in the previous year.Gross margin improved to 21.0 percent in the quarter from 19.8 percent in the year-ago quarter.Fortune posted net income of $417,000 in the quarter, up 11.5 percent from $374,000 posted in the same period last year.The company had 14,550 worksite employees on Dec. 31, a sequential decline of 591 from 15,141 on Sept. 30, the end of the previous quarter.
Fortune Industries Inc. (AMEX: FFI)
For the fiscal second quarter ended Dec. 31, 2011, compared with the same period a year ago.
Revenue: $14.8 million, +6.5 percentNet income: $417,000, +11.5 percent Read more

QPS Acquires Iowa Staffing Firm

[Feb 14, 2012] QPS Employment Group, a Brookfield, Wis.-based staffing and recruiting firm, acquired USA Staffing, a recruiting firm based in Ames, Iowa, that focuses on industrial, skilled trades and clerical. QPS will take over USA Staffing’s 10 locations.“We’re excited about this acquisition, which allows us to expand our geographical reach outside of Wisconsin and Illinois,” said Dan McNulty, QPS’ chief operating officer. “This acquisition is the first step in our plan to increase our presence throughout the Midwest.”USA Staffing Owner/President Steve Risius will stay on as a consultant. USA Staffing’s associate employees who are currently working on assignment at local companies will be retained and moved to QPS’ payroll. The company’s name will not be retained, as the operations and internal staff will be folded into QPS’ business.Terms of the transaction are not disclosed. This is QPS’ sixth acquisition since 2006. Read more

Barrett Revenue Up 15%

[Feb 14, 2012] Fourth-quarter revenue rose 15.2 percent on a year-over-year basis at Barrett Business Services Inc. (NASD: BBSI) to $84.7 million. The increase came through continued growth from the Vancouver, Wash.-based firm’s professional employer organization (PEO) division.Barrett’s fourth-quarter PEO revenue rose 30.8 percent to $53.4 million.Barrett also provides traditional staffing services with revenue in this division falling 4.4 percent in the fourth quarter to $31.3 million from $32.7 million in the same period last year.The company’s fourth-quarter gross margin fell to 9.9 percent from 18.5 percent in the year-ago quarter.Barrett posted an $8.5 million increase to its workers compensation reserve. And net loss for the fourth quarter was $93,000, compared to net income of $3.1 million in the year-ago quarter.“The workers’ comp charge we recorded in the quarter stems from our self-insurance program for our client workers’ compensation claims,” said CEO Michael Elich. “Recent history driven by the prolonged recession has indicated that open claims in prior years are continuing to remain open longer and are more expensive compared to previous historical experience. However, we believe this quarter’s adjustment strengthens our balance sheet as we turn our attention toward driving further shareholder value.”For the fiscal year ended Dec. 31, 2011, the company posted revenue of $314.9 million, a 15.3 percent increase from revenue of $273.1 million in 2010.Full-year PEO revenue rose 29.0 percent to $190.1 million, but full-year staffing revenue fell 0.8 percent to $124.8 million.Full-year gross margin was 13.8 percent, compared to 16.4 percent in 2010.Full-year net income rose 92.8 percent to $14.3 million, compared to $7.4 million in 2010.For the first quarter ending March 31, 2012, the company expects gross revenues to range from $417 - $423 million, compared to $331.1 million for the first quarter of 2011.Presently, a group of Barrett shareholders is pursuing the possibility of a special shareholder meeting for a vote to replace most of the board. For more, click here.
Barrett Business Services Inc. (NASD: BBSI)
For the fourth quarter ended Dec. 31, 2011, compared with the same period in 2010.
Revenue: $84.7 million, +15.2 percentNet loss: $93,000 vs. net income of $3.1 million
For full-year ended Dec. 31, 2011, compared with the previous year.
Revenue: $314.9 million, +15.3 percentNet income: $14.3 million, +92.8 percent Read more

Insperity Revenue Rises 14%

[Feb 14, 2012] Insperity Inc. (NYSE: NSP) reported fourth-quarter revenue rose 13.7 percent on a year-over-year basis to $495.1 million. Revenue rose amid a 9.7 percent increase in the average number of worksite employees paid per month and a 3.6 percent increase in revenue per worksite employee.The Houston-based provider of professional employer organization (PEO) services reported an average of 122,065 worksite employees paid per month in the fourth quarter, up from 111,249 in the year-ago quarter. Revenue per worksite employee rose to $1,352 per month in the fourth quarter from $1,305 in the same period last year.Insperity’s fourth-quarter gross margin narrowed to 18.2 percent from 18.6 percent in the year-ago quarter.Net income rose in the fourth quarter to $10.8 million, up 39.2 percent from $7.8 million a year ago.For the full year ended Dec. 31, 2011, Insperity posted revenue of $1.98 billion, a 14.9 percent increase from revenue of $1.72 billion in 2010.Full-year gross margin was 17.8 percent, compared to 17.4 percent in 2010.Full-year net income rose 35.8 percent to $30.5 million from $22.4 million in 2010.Insperity was ranked No. 1 on Staffing Industry Analysts’ 2011 list of largest U.S. PEOs based on 2010 net revenue.
Insperity Inc. (NYSE: NSP)
For the fourth quarter ended Dec. 31, 2011, compared with the same period in 2010.
Revenue: $495.1 million, +13.7 percentNet income: $10.8 million, +39.2 percent
For full-year ended Dec. 31, 2011, compared with the previous year.
Revenue: $1.98 billion, +14.9 percentNet income: $30.5 million, +35.8 percent Read more

On Assignment Revenue Rises 34%

[Feb 14, 2012] On Assignment Inc. (NASD: ASGN), a Calabasas, Calif.-based life sciences, healthcare and technology staffing company, reported revenue rose 33.5 percent in the fourth quarter to $161.8 million from $121.2 million in the year-ago quarter.Fourth-quarter revenue rose by the double digits in all the company’s business lines:


Life sciences, up 32.5 percent to $40.9 million

Allied healthcare revenue rose 20.9 percent to $12.2 million

Travel nurse revenue rose 62.1 percent to $13.8 million

Physician staffing, up 35.4 percent to $23.7 million

Information technology and engineering, up 31.4 percent to $71.2 million


Fourth-quarter gross margin narrowed to 33.1 percent from 34.9 percent a year ago.Net income jumped to $7.5 million from losses of $13.7 million in the fourth quarter of 2010, which included a $15.4 million charge for impairment of goodwill.For the full year ended Dec. 31, 2011, On Assignment posted revenue of $597.3 million, a 36.3 percent increase from revenue of $438.1 million in 2010.Full-year gross margin was 33.5 percent, compared to 34.1 percent in 2010.Full-year net income was $24.3 million, compared to a net loss of $9.9 million in 2010.
On Assignment Inc. (NASD: ASGN)
For the quarter ended Dec. 31, 2011, compared with the year-ago quarter
Revenue: $161.8 million, +33.5 percentNet income: $7.5 million vs. net loss of $13.7 million
For the full-year ended Dec. 31, 2011, compared with the previous year.
Revenue: $597.3 million, +36.3 percentNet income: $24.3 million vs. a net loss of $9.9 million Read more

Blog: Think Like it’s 2006

[Feb 15, 2012] If you are considering sponsoring a conference or other event, Staffing Industry Analysts’ senior VP of marketing and interactive services, Hinda Chalew, has some food for thought. Read her blog here. Read more

People: Caldwell Partners, Robert Half, Protiviti, Korn/Ferry, ASA

[Feb 15, 2012] The Caldwell Partners International Inc. (TSX: CWL.TO), a Toronto-based executive search firm, announced the appointment of Elan Pratzer as managing partner, Canada. Pratzer has more than 26 years of executive search experience, previously serving as managing director, Canada after selling his own firm to Korn/Ferry. Pratzer will be responsible for the development of new business and client relationships, the recruitment of partners, and fostering success.Robert Half International Inc. (NYSE:RHI) has named Robert Kaleta as its regional vice president. Kaleta will oversee the San Jose and San Mateo, Calif. Offices of Robert Half Technology and The Creative Group. Before working for Robert Half, Kaleta held key leadership positions at other unnamed technology and staffing organizations.Protiviti Inc., the business consulting and internal audit business of Robert Half International Inc. (NYSE: RHI), announced that Brian Christensen has been promoted to executive vice president and global leader of the firm’s internal audit and financial controls solution. Christensen has more than 25 years of experience and was a founding managing director of Protiviti. He will be responsible for the development and execution of the company’s internal audit offerings.Korn/Ferry International Inc. (NYSE: KFY) announced that Casey Kelly has joined the company’s industrial and supply chain practices. Kelly has more than 20 years of global executive and line management experience. He will specialize in international C-suite and board searches in the industrial markets and will advise clients on talent and recruiting development. Kelly will be based in the firm’s Singapore office.The American Staffing Association announced that Steve Berchem has been promoted to chief operating officer. He joined the ASA in 1998, serving as vice president until his recent appointment and currently has principal oversight of the association’s marketing, public relations, publications, research functions and corporate alliances. Read more

Wanted: Demand for Recruiters Bounces Back

[Feb 15, 2012] Demand for recruiters bounced back in January after a decline toward the end of 2011, according to data from Wanted Analytics, a firm that tracks online job ads. Wanted counted 6,100 new online job ads for recruiters and employment specialists in January. Although it was a slight decrease from the post-recession high in August, demand for these jobs is still up 26 percent compared to January 2011.Fifty-five percent of all recruiting job ads in January were placed by direct employers, while staffing firms placed the remaining 45 percent of job ads. Metropolitan areas with the highest demand for recruiters included New York, Washington, Chicago, Boston and Dallas. Seattle and Atlanta saw the most hiring growth, though, with job ads rising by 92.2 percent and 90.6 percent, respectively, compared with January 2011. Read more

TeamStaff Revenue Rises 9%

[Feb 15, 2012] TeamStaff Inc. (NASD: TSTF), a provider of healthcare and logistics staffing to the federal government, reported revenue rose 8.7 percent to $11.5 million in its fiscal first quarter ended Dec. 31. Revenue was $10.6 million in the year-ago period.“We’ve had a solid operational and financial start to fiscal year 2012,” said Zach Parker, president and CEO.  “We phased in nearly 250 new employees and implemented some technology upgrades as we remain committed to providing best value to our customers.”Gross margin improved to 13.6 percent in the first quarter, compared to 12.5 percent in the year-ago period.The company reported a net loss of $389,000, compared with a net loss of $337,000 in the first quarter of last year.
TeamStaff Inc. (NASD: TSTF)
For the first quarter ended Dec. 31, 2011, compared with the same period in 2010.
Revenue: $11.5 million, +8.7 percent Net loss: $389,000 vs. net loss of $337,000 Read more

General Employment Revenue Jumps 114%

[Feb 15, 2012] Revenue at General Employment Enterprises Inc. (AMEX: JOB), an Oakbrook Terrace, Ill.-based staffing provider, jumped to $12.8 million in the company’s fiscal first quarter ended Dec. 31, 2011, an increase of 114.0 percent from $6.0 million in the year-ago period.The increase was attributed to the acquisitions of RFFG Cleveland LLC and DMCC Staffing LLC in November 2010 as well as a 103 percent increase in direct hire placement services due to increased demand.  The company reported first-quarter net income of $23,000, a 53.3 percent increase compared with net income of $15,000 in the year-ago period.
General Employment Enterprises Inc. (AMEX: JOB)
For the first quarter ended Dec. 31, 2011, compared with the same period in 2010.
Revenue: $12.8 million, +114.0 percent Net income: $23,000, +53.3 percent Read more

Office Openings and Expansions

[Feb 16, 2012] Open Systems Technologies Inc., a staffing solutions provider, announced the formation of Open Systems Healthcare Inc. (OSHC), a home care staffing agency serving Philadelphia and the southeastern Pennsylvania regions. OSHC’s mission is to provide exceptional personal and attendant care services in the home and community.Witt/Kieffer, an executive search firm, is launching a life sciences practice and has hired Stephen Kirnon and J. Michael Honeysett to lead the expansion. Kirnon and Honeysett will build a life sciences practice that expands upon the company’s focus on healthcare, higher education, academic medicine and information technology. Kirnon will lead the life science practice from the company’s office in Emeryville, Calif., as vice president. Honeysett will serve as an executive senior consultant from the company’s Irvine, Calif. office.Ware Technology Services, a division of the Atterro Human Capital Group that recruits engineering and IT professionals, is expanding its professional staffing business in the Houston region with a downtown office in The Galleria. Its broader presence in Houston is in response to the high demand for top engineering and technical talent in the oil and gas industry.Freelancer.com, an Australia-based outsourcing and crowdsourcing marketplace, unveiled its new headquarters at Jones Bay Wharf, Sydney.  Read more

Legs

[Feb 16, 2012] The Supreme Court of Texas has ruled that the family of a temporary worker who died while on assignment is not entitled to damages from the client, according to the February issue of North American Contingent Workforce Legs & Regs Advisor, which is produced by Staffing Industry Analysts and law firm Littler Mendelson PC.In the case, the staffing firm’s workers’ compensation insurance paid full benefits for the worker’s death, but the worker’s family then sued Port Elevator for regular negligence, negligence per se and gross negligence. Corporate members of Staffing Industry Analysts can read the full report on the here.Other legal and legislative updates in the advisor include:


IRS completes study regarding employers’ use of leased employees

Arizona bill introduces voluntary classification settlement program

California partners with U.S. Department of Labor to combat misclassification Read more

Equity Firms Acquire Employment Control

[Feb 16, 2012] Employment Control Inc., a Shelby, N.C.-based regional provider of commercial temporary staffing services, has been acquired by Harbert Mezzanine Partners and Claritas Capital Specialty Debt Fund, two Nashville-based private equity firms. Financial terms were not disclosed.Employment Control will continue to operate under the Employment Staffing Inc. brand through 13 branches and four on-site locations in the southeast. Current president and Chief Financial Officer Bobby Walker will remain with the company. Clayton Bullock will join as chief executive officer. Bullock has 25 years of staffing industry executive experience, previously serving as president and COO of Staffmark. Read more

Employment Services Index Ticks Downward

[Feb 16, 2012] The U.S. producer price index for the employment services slipped slightly in January to a reading of 125.4 from 125.5 in December, the U.S. Bureau of Labor Statistics reported today. The index also fell 0.1 percent from January 2011.Employment services is just one industry tracked in the producer price indexes. Producer price indexes measure changes in price over time from the perspective of the seller. Data for producer price indexes come from a sample of selling prices as reported by companies.The employment services industry includes employment placement agencies, temporary help services, executive search services and professional employer organizations. Read more

Jobless Claims Fall to 348,000

[Feb 16, 2012] Initial unemployment claims fell to 348,000 in the week ended Feb. 11, a decrease of 13,000 from the previous week’s revised figure of 361,000, according to seasonally adjusted numbers released today by the U.S. Department of Labor.The four-week moving average of initial claims, which reduces the volatility of the weekly numbers, was 365,250, a decrease of 1,750 from the previous week’s revised average of 367,000. Read more

Impellam Group Announces Results

[Feb 16, 2012] U.K.-based Impellam Group PLC (AIM: IPEL) announced today it swung to positive territory in 2011, closing the year with £1.8 million (US$2.8 million) in net cash, compared with net debt of £17.8 million in 2010. In 2008, the company’s debt was £61.8 million.“I am pleased to announce Impellam Group plc concluded 2011 with a strong set of financial results whilst at the same time completing several important milestones in support of repositioning the Group’s businesses,” said Chairman Cheryl Jones.U.S. staffing revenue rose 5.0 percent in fiscal 2011 from 2010, as measured in dollars, the company also reported. Total U.S. staffing revenue was £166.6 million (US$257.4 million) in 2011, up from £164.9 million posted in 2010. Operating profit in the U.S. was £4.7 million (US$7.3 million), compared with £4.0 million in 2010.“The US Staffing segment continued to expand its current client base and to emphasize its managed service offerings to clients so as to meet the evolving demand for strategic solutions in the marketplace,” according to the company’s earnings report. “During the year, Guidant Group was relocated to an expanded headquarters and operational environment, allowing increased scalable expertise in the managed services segment, including expanded payroll service programs to its client base. The US operations faced tough economic challenges, whilst completing efficiency programs planned for the end of the year so as to continue to lower their cost of service delivery.”The U.S. operations include Corestaff Services, Leafstone, Guidant Group, InfoCurrent, S.Com and SRG Woolf.“The UK and US Staffing businesses have begun the realignment of their brands to support accelerated development of evolving client requirements for Managed Service Offerings and Client Innovation,” Jones said. “Moreover, accelerated development of the science, engineering and technology-related brand activities is also key. Restructuring of these businesses is underway.The company’s U.K. commercial segment rose 4.9 percent to £496.1 million in 2011, compared with £472.9 in 2010. The professional and technical staffing segment saw revenue jump 14.9 percent to £193.1 million, compared with £168.1 million in 2010.Two new holding companies were established in 2011 to house the realigned Carlisle Support Services, which does not provide staffing, and Medacs Healthcare brands. Medacs Healthcare Group, which provides heathcare staffing as well as managed services and recruitment process outsourcing services, fell 7.7 percent in 2011 to £186.8 million.“Medacs Healthcare Group experienced an anticipated reduction in demand in the doctors’ staffing business in the U.K. during 2011,” the report said. While orders for doctor assignments fell 14.5 percent, invoiced hours fell just 8.8 percent. The nursing and social care sectors increased invoiced hours by 6.6 percent and 7.0 percent, respectively.Overall, revenue was £1.13 billion (US$1.75 billion) in 2011, up 1.6 percent from $1.11 billion in 2010. Included is revenue from Carlisle support Services, which does not provide staffing services. Gross margin was 16.1 percent, down from 16.4 percent in 2010.
Impellam Group plc (AIM: IPEL)
For the year ended Dec. 31, 2011, compared with the year-ago period.
Revenue: £1.13 billion (US$1.75 billion), +1.6 percent Operating profit: £34.8 million (US$52.8 million), +13.9 percent Read more

Randstad North America Revenue Up 10% Organically

[Feb 16, 2012] Randstad Holding NV, the world's second-largest staffing firm, reported fourth-quarter North American revenue rose 10 percent from the year-ago quarter on an organic basis, which excludes the impact of currencies, acquisitions and disposals.The Netherlands-based company reported fourth-quarter North American revenue of €937.1 million (US$1.21 billion) compared with revenue of €495.6 million in the fourth quarter of 2010. The increase on a nonorganic basis was 89.1 percent. SFN Group, which Randstad acquired in September 2011, contributed €393 million (US$508.9 million) in revenue as growth strengthened.Full fourth-quarter revenue for SFN Group was $562.9 million, up 2.5 percent from $549.2 million in the year-ago period.Excluding SFN Group, improvement was driven by continued focus on the administrative segment and permanent placements, Randstad reported. Growth was led by IT, which maintained solid double-digit growth, while in engineering and healthcare growth continued to accelerate. Finance and accounting remained somewhat under pressure but strengthened during the fourth quarter.Fourth-quarter revenue at Randstad for the full company rose 12.5 percent to €4.38 billion (US$5.67 billion) from €3.89 billion in the fourth quarter of 2010.Gross margin narrowed to 18.3 percent in the fourth quarter from 18.9 percent in the year-ago period.Randstad posted fourth-quarter net losses of -€16.5 million (-US$21.4 million), due to   a non-cash impairment charge on goodwill of € 125 million. The company posted net income of €138.5 million in the year-ago period.For full-year 2011, Randstad's North American revenue rose 36 percent on a nonorganic basis to €2.51 billion (US$3.30 billion), compared to €1.85 billion reported in 2010.For the company as a whole, revenue rose 14.4 percent to €16.22 billion (US$21.01 billion) in 2011. Full-year gross margin narrowed to 18.2 percent from 18.8 percent in 2010.Full-year net income fell 38 percent to €179.0 million (US$231.8 million), compared with €288.5 million in 2010.
Randstad Holding NV
For the fourth quarter ended Dec. 31, 2011, compared with the same period in the previous year.
Revenue: €4.38 billion (US$5.67 billion), +12.5 percent Net loss: €16.5 million (-US$21.4 million), vs. net income of €138.5 million
For the full year ended Dec. 31, 2011, compared with the previous year.
Revenue: €16.22 billion (US$21.01 billion), +14.4 percent Net income: €179.0 million (US$235.0 million) vs. -38.0 percent Read more

Blog: Staffing Firms and Technology

[Feb 17, 2012] There may be no time like the present for staffing firms to take a serious look at what is happening in technology, Research Analyst Andrew Karpie writes in The Contingent Blog. For the full blog, click here. Read more

Employment Insurance Rolls Edge Up

[Feb 17, 2012] The number of people receiving regular Employment Insurance benefits in Canada rose to 544,700 in December, a 0.8 percent increase from the previous month, Statistics Canada reported today.There were 238,300 initial and renewal claims in December, a number essentially unchanged from November. While initial and renewal claims fell 4.8 percent in Saskatchewan, they increased 2.7 percent in Newfoundland and Labrador, and 1.9 percent in Alberta. There was little or no change in the other provinces. Read more

People: Winter, Wyman; Allen Austin

[Feb 17, 2012] The Winter, Wyman Companies, a staffing firm serving the northeast, announced the promotion of the following employees: Sara Ferraioli, promoted to partner of Winter, Wyman’s Human Resources Contracts division; Laurie Lopez, promoted to partner and general manager of Winter, Wyman’s Technology Contracting division; Beverly Morgan, promoted to general manager of Winter, Wyman’s Human Resources division.Houston-based Allen Austin Global Executive Search announced the appointment of Leanne Collier as partner at its Fort Worth, Texas office. Collier has more than 15 years of leadership expertise in financial services technology management and retained executive search. Read more

Workers’ Comp Charges Dropped

[Feb 17, 2012] A former executive at a Southern California staffing firm announced this week that workers’ compensation fraud charges against him and others have been dropped.Lou Perez and others at Checkmate Staffing Inc. were arrested in October 2006 on suspicion of committing almost $39.3 million in workers’ compensation fraud.The charges were dropped last year, according to the announcement this week. The San Bernardino County District Attorney’s Office confirmed the case was dismissed.According to Perez’s announcement Checkmate was forced to sell after the charges. However, Perez became a consultant for other staffing companies and eventually built a firm called BaronHR. Read more

U.S. Leading Index Rises

[Feb 17, 2012] The Conference Board’s U.S. leading economic index rose 0.4 percent in January to a level of 94.9 (2004 = 100). The index rose 0.5 percent in December and 0.3 percent in November.“This fourth consecutive gain in the [leading economic index] reflected fairly widespread strength among its components, pointing to somewhat more positive economic conditions in early 2012,” said Ataman Ozyildirim, economist at The Conference Board. The index’s “increase in January was led not only by improving financial and credit indicators, but also rising average workweek in manufacturing. These both offset consumers’ outlook about the economy, which remained pessimistic, though slightly less so.”“Recent data reflect an economy that started the year on a positive note,” said Ken Goldstein, also an economist at The Conference Board. The index “suggests these conditions will continue and could possibly even pick up this spring and summer.” Read more

Around the Web

[Feb 21, 2012] It appears as though Solvate, an online marketplace for bringing together freelance workers and buyers, is shutting down, TechCrunch reports. This morning, the Solvate’s website reported it is not accepting new users. Read more

Barrett Names Chief Administrative Officer

[Feb 21, 2012] Barrett Business Services Inc. (NASD: BBSI), a Vancouver, Wash.-based staffing provider, promoted Gregory Vaughn to the newly created role of chief administrative officer. Vaughn had served as vice president and has been with Barrett since 1997.“In his new position, Greg will oversee crucial technical and administrative systems as well as assume responsibility for the continuous alignment of branch operating methods with organization resources and corporate policies,” said Barrett President and CEO Michael Elich. Read more

Korn/Ferry Appoints New CFO

[Feb 21, 2012] Executive search firm Korn/Ferry International Inc. (NYSE: KFY) appointed Robert Rozek as CFO. Rozek has more than 25 years of finance experience. He most recently served as executive vice president and chief financial officer at Cushman & Wakefield, where he oversaw global financial and accounting operations.Rozek has also held senior leadership positions at Las Vegas Sands Corp. and Eastman Kodak as well as a spent five years as a partner with PricewaterhouseCoopers LLP.Rozek succeeds Mike DiGregorio who plans to pursue other interests.  Read more

CHG Names Group President

[Feb 21, 2012] CHG Healthcare Services Inc. named Alan McIver as group president. He will oversee RN Network, the company’s travel nurse staffing brand, and CompHealth, the company’s rehab travel staffing brand.McIver most recently founded Skipstone Healthcare Staffing in Park City, Utah, and served as president and CEO of that company. Previously, he served as president and CEO of Supplemental Health Care in Park City and senior vice president of CareerStaff Unlimited, a healthcare staffing company in Houston.McIver will be based at CHG’s headquarters in Salt Lake City.CHG ranks as the second-largest U.S. healthcare staffing firm. Its RN Network division is based in Boca Raton, Fla., and its CompHealth division is based in Grand Rapids, Mich. Read more

Arcadia Plans to Sell Last of Businesses

[Feb 21, 2012] Arcadia Resources Inc. (OTCBB: KADR.PK) sold its pharmacy division effect Feb. 17, but it still plans to sell its homecare and healthcare staffing operations — which would leave the company without any operating businesses, according to a 10-Q filing today with the U.S. Securities and Exchange Commission.The company reported it is in discussion with a number of parties regarding a sale of the staffing business. However, Arcadia reported it has $40 million in debt and even if the homecare and healthcare businesses were sold, proceeds are not expected to be enough to repay the debt, according to the filing.Arcadia posted $2.9 million in per diem medical staffing revenue in its fiscal third quarter ended Dec. 31, 2011, up 2.3 percent from $2.8 million in the same period last year.On the other hand, travel healthcare staffing revenue dropped 85.0 percent to $201,000 in the third quarter from $1.3 million a year ago. The company was not awarded a new contract by the North Carolina Department of Corrections. The contract accounted for approximately $4.1 million in revenue in the previous fiscal year.Arcadia’s homecare operations posted revenue of $17.5 million in the third quarter, up 3.4 percent from the year-ago quarter.Total third-quarter revenue was $20.6 million, down 2.3 percent from the same period a year ago. Gross margin narrowed to 29.6 percent from 30.3 percent.Arcadia posted a third-quarter net loss of $9.8 million, including a $7.8 million charge for goodwill and intangible asset impairment. The company posted a net loss of $2.3 million in the year-ago quarter.The company sold its pharmacy segment to Medication Adherence Solutions LLC, a subsidiary of The Walgreen Co., for cash proceeds of $2.0 million, which were paid to a creditor. The sale leaves the company with only its homecare and healthcare staffing operations. Read more

CTG Revenue Up 16% With EMR Boost

[Feb 21, 2012] Computer Task Group Inc., a Buffalo, N.Y.-based provider of information technology staffing and solutions, reported fourth-quarter revenue rose 15.6 percent to $100.9 million from $87.3 million in the year-ago quarter.“Electronic medical records projects continue to be the major contributor to the growth of our healthcare business with [electronic medical records] revenue up 33 percent from the 2010 fourth quarter and 36 percent for the full year,” said CTG Chairman and CEO James Boldt. “We finished the year working on 18 EMR projects up from 17 at the end of the 2011 third quarter.”CTG’s staffing revenue rose approximately 8 percent to $60.4 million, on a year-over-year basis. Solutions revenue rose approximately 30 percent to $40.5 million.Gross margin improved to 22.6 percent from 21.9 percent in the fourth quarter of last year.Fourth-quarter net income rose 23.9 percent to $3.3 million from $2.7 million in the fourth quarter of 2010.Revenue for the full year totaled $396.3 million, a 19.6 percent increase over $331.4 million in 2010. Gross margin for the full year was 21.3 percent, compared to 21.5 percent in 2010.2011 net income rose 23.9 percent to 11.9 million from $8.4 million in 2010. $12 million, up 42.6 percent from $8.4 million in 2010.
Computer Task Group Inc. (NASD: CTGX)
For the fourth quarter ended Dec. 31, 2011, compared with the same period in the previous year.
Revenue: $100.9 million, +15.6 percentNet income: $3.3 million, +23.9 percent
For the 2011 fiscal year ended Dec. 31, 2011, compared with the previous year.
Revenue: $396.3 million, +19.6 percentNet income: $11.9 million, +42.6 percent Read more

People: Judge, SourceRight

[Feb 22, 2012] The Judge Group, a Philadelphia-based staffing provider, named Edward Carmody as president of Judge Consulting Group. Carmody has more than 30 years of experience delivering technology solutions to a variety of industries. He has been a key business technology leader with Judge for the past five years and most recently was responsible for service delivery of all Judge Consulting Group client engagements.SourceRight Solutions, a division of Randstad Holding NV, appointed Karen Turner as vice president of product development and strategy. Turner has more than 15 years of experience in the industry; she joined SourceRight in 2006. SourceRight provides recruitment process outsourcing (RPO) and has a managed service provider (MSP) offering. Read more

Office Openings: Harvey Nash, Employment Plus

[Feb 22, 2012] Harvey Nash, a provider of information technology staffing, announced the opening of a new office in Sydney, Australia. The office will provide executive search, technology recruitment and IT outsourcing. Bridget Gray will serve as managing director of Harvey Nash Australia. “The new office investment is in response to growing demand in Australia to recruit world-class talent, particularly in digital and eCommerce fields,” said Gray. “Having worked with Harvey Nash in London for four years, I am delighted to be returning to my home country to take our unique approach to business to Australia.”Employment Plus Inc., a Bloomington, Ind.-based staffing firm, opened new offices in Tucson, Ariz.; Presto, Penn; and LaGrange, Ga. The openings represent the company’s first new offices in Arizona and Pennsylvania and its fifth office in Georgia. Employment Plus has more than 100 offices in the U.S. Read more

Warehouse Firm, Staffing Provider Get Penalties

[Feb 22, 2012] An operator of a warehouse in Palmyra, Pa., that serves Hershey Co. faces a possible fine of $283,000, and a staffing firm at the facility faces a possible penalty of $5,000, the U.S. Department of Labor reported Tuesday.Exel, which operates the warehouse, was cited for nine workplace safety and health violations, according to the Department of Labor. SHS Group, which does business as SHS Staffing Solutions, was cited for one violation.The proposed fines stem from an inspection after a complaint was filed on behalf of a group of foreign students by the National Guestworker Alliance. The students were working at the facility under J-1 visa program, which is designed to promote cultural exchange. SHS hired the students under contract with Exel to repackage Hershey candies for promotional displays.Exel was cited for failing to record injuries and illnesses on the OSHA 300 log for four years among other things, according to the Department of Labor. SHS, based in Lemoyne, Pa., was cited for failing to provide training to employees on the lockout/tagout of energy sources.Exel and SHS have 15 days to contest the citations.Work performed by the student, who were sponsored for their visas by the Council for Education Travel – USA, is also under investigation. However, the council has withheld documents from investigators and the secretary of labor has filed a petition to enforce a subpoena against the council, according to the Department of Labor. Read more

Staffing Is Key Concern for Healthcare IT

[Feb 22, 2012] Concern about staffing resources was cited as a key barrier to information technology implementation by a quarter of information technology professionals at healthcare organizations surveyed by the Healthcare Information and Management Systems Society. Two-thirds of professionals said their IT staff will increase in the next year.The survey also found that almost 90 percent of respondents plan to complete their conversion to the new ICD-10 medical codes by the Oct. 31, 2013 deadline. Two-thirds reported that implementing ICD-10 was the top area of focus for financial IT systems at their organization.The survey included responses from more than 300 technology professionals from healthcare providers across the U.S. Read more

Gallup Says U.S. Jobless Rate Up

[Feb 22, 2012] The U.S. unemployment rate was 9.0 percent in mid-February, as measured by Gallup without seasonal adjustment, up 8.3 percent for mid-January. The mid-month reading normally reflects what the U.S. government reports for the entire month, according to Gallup.Although the Gallup numbers are not seasonally adjusted, the organization estimates the U.S. Bureau of Labor Statistics could report an increased seasonally adjusted unemployment rate when it releases February employment figures after the end of the month.Results are based on telephone interviews conducted as part of Gallup Daily tracking from Jan. 17, 2012, to Feb. 15, 2012, with a random sample of 18,630 adults, aged 18 and older. Read more

Skilled Group Revenue Up 3%

[Feb 22, 2012] Skilled Group Ltd., an Australia-based staffing firm, reported today that revenue rose 3.1 percent to AUS$935.0 million (US$951.3 million) in the first half of its fiscal year ended Dec. 31, 2011.Half-year revenue in Skilled’s workforce services segment rose 2.6 percent to AUS$471.3 million (US$479.5 million). This segment primarily provides blue-collar workers to the industrial, mining and resources sectors.Skilled’s other staffing services segment posted a 12.7 percent increase in revenue to AUS$244.3 million (US$248.6 million). This segment includes white collar, engineering, technical and nurse staffing.Underlying net profit after tax was AUS$24.9 million (US$25.3 million) for the first half of the year, up 75.4 percent from the same period in the previous year.Skilled Group ranks No. 26 on Staffing Industry Analysts’ 2011 list of largest global staffing firms. Read more