Computer Task Group's CEO Discusses Q2 2012 Results - Earnings Call Transcript
Before we begin, I want to mention that statements in the course of this conference call that state the company’s or management’s intentions, hopes, beliefs, expectations and predictions for the future are forward-looking statements.
It’s important to note that the company’s actual results could differ materially from those projected. Additional information concerning factors that could cause actual results to differ from those in the forward-looking statements is contained in our earnings release as well as in the company’s SEC filings. You can find these at our website or at the SEC’s website at sec.gov. Please review our forward-looking statements in conjunction with these precautionary factors.
With that, I’d like to turn it over to Jim to begin the discussion.
James BoldtThanks, Jim, and good morning, everyone. This is Jim Boldt. I want to thank you for joining us this morning for our second quarter earnings conference call. As you saw in our news release, we had an excellent second quarter with revenue above our guidance and earnings per share excluding our insurance gain. At the high end of our guidance revenue in the second quarter 2012 increased over 2011 by 9%. The operating margin expanded by a 100 basis points and earnings per share excluding the onetime insurance gain increased 29%. As we expected, our higher margin solutions business continues to grow and increased 23% in the second quarter 2012, while revenue from our lower margin staffing business was approximately the same as it was in the second quarter of 2011.I’m going to talk more about our results and what we see for the 2012 third quarter and the full year, but first I’m going to ask Brendan to start us off with a review of our financial results. Brendan?Brendan HarringtonThanks, Jim. Good morning, everyone. For the second quarter of 2012, CTG’s revenue was $106.7 million, an increase of $8.4 million or 9% compared with the second quarter of 2011. Second quarter 2012 had 64 billing days, the same as in the second quarter 2011.
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