COMSYS IT Partners, Inc. Revises Fourth Quarter 2009 Guidance Upward
January 06 2010 - 4:50PM
Business Wire
COMSYS IT Partners, Inc. (NASDAQ:CITP), a leading provider of
information technology staffing and consulting services, today
revised its guidance upward for the fourth quarter of 2009.
The Company now expects to report revenue in a range of $170
million to $175 million for the fourth quarter and net income in
the range of $5.3 million to $6.4 million, or approximately $0.25
to $0.30 per diluted share, up on a comparable basis from the
Company’s earlier guidance of revenue in a range of $161 million to
$166 million and net income in the range of $2.5 million to $3.6
million, or approximately $0.13 to $0.18 per diluted share.
For the year ended January 3, 2010, the Company now expects to
report revenue in the range of $647 million to $652 million, and
net income before restructuring charges in the range of $12.9
million to $14.0 million, or approximately $0.62 to $0.67 per
diluted share, also up on a comparable basis from the previous full
year guidance. The revised estimates are also based on an effective
tax rate of approximately 6.4%.
Like our prior guidance, the revised net income and earnings per
share estimates above exclude an expected reversal of a portion of
restructuring expense previously recognized related to our
Washington DC area lease, as well as any potential effects of our
quarterly review of the recoverability of our deferred tax
assets.
“The strengthening activity levels that we reported on in late
October have continued through November and December,” said Larry
L. Enterline, COMSYS Chief Executive Officer, “and we also expect
to report a sequential increase in gross margins due to higher
margins in our core staffing business and increased fee income in
TAPFIN. As a result, earnings per share should be well above our
previous range notwithstanding our continued spending in the fourth
quarter on the business initiatives we have commented on throughout
the year. Cash flow in the fourth quarter was also better than
expected and we ended the year with less than $40 million of
debt.”
About COMSYS IT
Partners
COMSYS IT Partners, Inc. (NASDAQ: CITP) is a leading IT services
company with 52 offices across the U.S. and offices in Puerto Rico,
Canada and the U.K. COMSYS service offerings include contingent and
direct hire placement of IT professionals and a wide range of
technical services and solutions addressing requirements across the
enterprise. TAPFIN Process Solutions delivers critical management
solutions across the resource spectrum from contingent workers to
outsourced services.
Forward-looking
Statements
Certain information contained in this press release may be
deemed forward-looking statements regarding events and financial
trends that could affect our plans, objectives, future operating
results, financial condition, performance and business. These
statements may be identified by words such as “estimate,”
“forecast,” “plan,” “intend,” “believe,” “should,” “expect,”
“anticipate,” or variations or negatives thereof, or by similar or
comparable words or phrases. These forward-looking statements are
largely based on our expectations and beliefs concerning future
events, which reflect estimates and assumptions made by our
management. These estimates and assumptions reflect our best
judgment based on currently known market conditions and other
factors relating to our operations and business environment, all of
which are difficult to predict and many of which are beyond our
control, including:
- economic declines that affect
our business, including our profitability, liquidity or the ability
to comply with applicable loan covenants;
- the financial stability of our
lenders and their ability to honor their commitments related to our
credit agreements;
- regulatory changes that impose
additional regulations or licensing requirements in such a manner
as to increase our costs of doing business or restrict access to
qualified technology workers;
- the risk of increased tax
rates;
- adverse changes in credit and
capital markets conditions that may affect our ability to obtain
financing or refinancing on favorable terms or that may warrant
changes to existing credit terms;
- the financial stability of our
customers and other business partners and their ability to pay
their outstanding obligations or provide committed services;
- changes in levels of
unemployment and other economic conditions in the United States, or
in particular regions or industries;
- the impact of changes in demand
for our services or competitive pressures on our ability to
maintain or improve our operating margins, including pricing
pressures;
- the risk in an uncertain
economic environment of increased incidences of employment
disputes, employment litigation and workers’ compensation
claims;
- our success in attracting,
training, retaining and motivating billable consultants and key
officers and employees;
- our ability to shift a larger
percentage of our business mix into IT solutions, project
management and business process outsourcing and, if successful, our
ability to manage those types of business profitably;
- weakness or reductions in
corporate information technology spending levels;
- our ability to maintain existing
client relationships and attract new clients in the context of
changing economic or competitive conditions;
- the entry of new competitors
into the U.S. staffing services and consulting markets due to the
limited barriers to entry or the expansion of existing competitors
in that market;
- increases in employment-related
costs such as healthcare and unemployment taxes;
- the possibility of our incurring
liability for the activities of our billable consultants or for
events impacting our billable consultants on our clients’
premises;
- the risk that we may be subject
to claims for indemnification under our customer contracts;
- the risk that cost cutting or
restructuring activities could cause an adverse impact on certain
of our operations; and
- adverse changes to management’s
periodic estimates of future cash flows that may affect our
assessment of our ability to fully recover our goodwill.
Although we believe our estimates and assumptions to be
reasonable, they are inherently uncertain and involve a number of
risks and uncertainties that are beyond our control. In addition,
management’s assumptions about future events may prove to be
inaccurate. Management cautions all readers that the
forward-looking statements contained in this report are not
guarantees of future performance, and we cannot assure any reader
that those statements will be realized or that the forward-looking
events and circumstances will occur. Actual results may differ
materially from those anticipated or implied in the forward-looking
statements due to various factors, including the factors listed in
this section and the “Risk Factors” section contained in our Annual
Report on Form 10-K as filed with the Securities and Exchange
Commission. All forward-looking statements speak only as of the
date of this report. We do not intend to publicly update or revise
any forward-looking statements as a result of new information,
future events or otherwise, except as required by law. These
cautionary statements qualify all forward-looking statements
attributable to us or persons acting on our behalf.
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