Corporate Resource Services, Inc. (OTCBB: CRRS), a national provider of temporary and permanent staffing services (the “ Company”), announced the financial results of its second quarter, which ended on March 30, 2012 (the “ 2012 Second Quarter”), today.
The Company reported revenues of $144,078,000 for the 2012 Second Quarter, a 17.5% increase over revenues reported for the same quarter in the Company’s 2011 fiscal year (the “ 2011 Second Quarter”). The Company reported a net loss of $3,050,000, or $0.03 per share, in the 2012 Second Quarter compared to the net loss of $1,417,000, or $0.01 per share, reported for the 2011 Second Quarter.
Jay Schecter, Chief Executive Officer of the Company, commented that “We are very pleased with the progress that we’ve made this quarter. We continue to absorb our most recent acquisition, TS Staffing Services, Inc., and are in the process of integrating and creating cost efficiencies for our six operating subsidiaries. We are eliminating duplicative costs and reorganizing the Company’s structure to best support our two main lines of temporary placement business – professional services and light industrial. In addition, we significantly strengthened our balance sheet during the quarter by completing a debt conversion of $12,000,000 into common stock, and our borrowing capacity increased by $17,500,000. We believe that these accomplishments position us to take advantage of both internal and external opportunities for continued growth, and anticipate that the cost reductions we expect to realize from these initiatives, coupled with anticipated growth in the business, put us on a path to profitability in the near term.”
- On March 30, 2012, the Company entered into an agreement with TS Employment, Inc. to convert $12,000,000 of debt into 25,962,788 shares of the Company’s common stock.
- After the conclusion of the 2012 Second Quarter, five of the Company’s operating subsidiaries amended their Account Purchase Agreements with Wells Fargo Bank, N.A. These amendments, which were effective on April 19, 2012, increased the aggregate amount of accounts receivable that we may sell to Wells Fargo from $50,000,000 to $67,500,000, and the interest accrued on such amounts from LIBOR plus 5.30% to LIBOR plus 5.55% per annum.
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