This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Corporate Resource Services Reports Third Quarter Results

Corporate Resource Services, Inc. (OTCBB:CRRS), a national provider of diversified staffing, recruiting and consulting services, today reported results for its third quarter ended June 30, 2010. The Company’s quarterly results were materially impacted by its acquisition of certain assets of GT Systems on April 5, 2010.

Revenues for the third quarter increased to $32.5 million from $12.8 million in the third quarter of fiscal 2009. The increase of approximately 150% is primarily attributable to revenues generated as a result of the acquisition by the Company of certain assets of GT Systems. Since the acquisition, the acquired business has been operated by the Company’s wholly owned subsidiary, Corporate Resource Development (CRD). The balance of the increase is attributable to additional demand from existing customers, which the Company attributes to improvements in the industry as well as the Company’s ordinary business cycle.

Direct cost of services increased for the quarter to $25.9 million from approximately $11.1 million in the 2009 comparable period, an increase of approximately 130%. The increase in direct cost of services is a direct result of the increase in business and revenue. Gross profit increased by approximately 310% to $6.6 million from $1.6 million. The Company’s gross profit margin for the third quarter of fiscal 2010, as a percentage of revenues, was approximately 20%, as compared with a 13% gross margin for the third quarter of fiscal 2009. The increase in gross profit and in margins was a result of the gross profit generated from the higher margin CRD business following the April acquisition, all of which was realized during the third fiscal quarter.

The Company reported a net loss for the three months ended June 30, 2010 of $736,000, or ($.03) per share, versus a net loss of $75,000, or $.00 per share in the 2009 period. The increase in net loss was due to increases in marketing, selling and administrative expenses due to the acquisition, transaction costs associated with the acquisition and increases in interest expense due to acquisition financing incurred during the quarter.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,985.61 +78.99 0.47%
S&P 500 1,972.83 +9.12 0.46%
NASDAQ 4,419.0340 +27.5710 0.63%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs