Current HR Marketplace Earnings and M&A News

The following quarterly HR marketplace earnings and M&A announcements are aggregated by www.HRmarketer.com, the leading online marketing and PR service for the human capital industry. HR Marketer lists the previous quarter's earnings from publicly traded HR companies and all the exciting M&A activity in the growing HR space.

> Go Back to Current HCM Earnings

Fall 2006

Previous Quarter’s Earnings:

• Automatic Data Processing Inc. (ADP): For the three months ended June 30, net income rose to $703.8 million, or $1.23 per share, from $258.7 million, or 44 cents per share, in the year-ago period. The latest quarter included a gain of $453 million from the sale of its claims services unit.

• Administaff Inc. (ASF): Reported that quarterly earnings rose 44 percent on higher revenues and its shares soared 15 percent. Earnings rose to $10.5 million, or 37 cents per share, from $7.3 million, or 28 cents per share, a year earlier. Analysts, on average, expected 34 cents per share, according to Reuters Estimates.

• Ceridian Corp. (CEN): Ceridian Corp. said its second-quarter profit jumped 26 percent, beating Wall Street estimates, as higher interest income and profit margins combined with an 8 percent increase in revenue. Net income climbed to $42.2 million, or 29 cents per share, from $33.5 million, or 22 cents per share, in the year-earlier quarter. Wall Street, on average, was looking for profit of 22 cents per share, according to Thomson Financial. The company told analyst to expect 21 cents to 23 cents per share.

• Clark Inc. (CLK): Reported that second-quarter profit fell 8 percent as insurance-based sales dried up amid sluggish market conditions. Quarterly profit fell to $100,000, or a penny per share, from $2.9 million, or 16 cents per share, in the year-ago period. Earnings excluding items totaled $5.3 million, or 30 cents per share, compared with $8.1 million, or 44 cents per share, a year ago. Revenue fell 3 percent to $66.4 million.

• Gevity HR (GVHR): Reported its second-quarter profit dropped 20 percent on a one-time charge to create a reserve to cover losses tied to a contract with a reinsurance company. Net income slipped to $6.9 million, or 26 cents per share, compared to $8.6 million, or 30 cents per share, during the same period last year. Excluding the $4.7 million loss reserve, Gevity posted earnings of $9.7 million, or 36 cents per share, versus $7.8 million, or 27 cents per share, a year-ago. Last year's results were adjusted for a stock compensation charge.

• Hewitt Associates Inc. (HEW): Fiscal second quarter earnings increased 17 percent. Profit rose to $31.8 million, or 29 cents per share, from $27.2 million, or 23 cents per share, a year ago.

• Kenexa Corp. (KNXA): For the second quarter of 2006, Kenexa reported total revenue of $24.7 million, representing an increase of 54% over the $16.0 million recorded for the second quarter of 2005. Subscription revenue increased 64% to $19.9 million and professional services and other revenue increased 23% to $4.8 million, compared to the second quarter of 2005.

• Kronos, Inc. (KRON): Reported total revenue for the third quarter of Fiscal 2006 of $141.4 million compared to $130.0 million for the same period a year ago. GAAP net income for the third quarter of Fiscal 2006 was $10.3 million, or $0.32 per diluted share compared to $12.6 million, or $0.39 per diluted share, for the same period a year ago.

• Monster Worldwide Inc. (MNST): Net income was $39.6 million, or 31 cents per share. Monster didn't provide a year-over-year comparison because an investigation into options backdating may lead to a restatement. Revenue jumped 36% to $296 million. Analysts had expected earnings of 30 cents on sales of $294.9 million

• Paychex Inc. (PAYX): On June 28, Paychex released earnings for the fiscal year ended May 31. Sales and earnings per share matched expectations, with a gain of 15.9% in sales, 26% in net income, and 25.8% in earnings per share. Increased funds held for clients (float) and higher interest rates drove investment income 103% higher.

• Saba Software Inc. (SABA): Stock decreased 23% at the end of June after the company announced their fiscal fourth-quarter results. For the period ended May 31, the company reported a loss of $3.5 million, or 12 cents a share, on revenue of $23.1 million.

• TALX Corp. (TALX): Reported that fiscal first-quarter earnings from continuing operations increased 14 percent to $7.3 million, or $0.22 per diluted share, from the year-ago $6.4 million, or $0.19 per diluted share. The earnings improvement primarily reflects the contribution from recent acquisitions, strong revenue gains in The Work Number services, and ongoing emphasis on cross-selling.

• Ultimate Software Group Inc. (ULTI): For the quarter ended June 30, 2006, the company reported an increase in total revenues of 33%, as compared with the second quarter of 2005, to $28.3 million. Recurring revenues were $15.5 million, a 28% increase compared with the second quarter of the previous year. Services revenues were $8.3 million and license revenues were $4.5 million. New annual recurring revenues (ARR) were $5.7 million for the second quarter of 2006, a 26% increase over the second quarter of 2005.

• Workbrain Corp (WB.TO): Workbrain expects to report total revenue for their second fiscal quarter that ended June 30, 2006 in the range of $23 million to $24 million, as compared to $22.1 million in the same period last year. The company emphasizes that these results are unaudited and preliminary, and its actual results may vary from those projected. Two enterprise license sales that were expected to contribute approximately $2.5 million in license revenue in the second quarter are now expected to close in the third quarter.

• Workstream Inc. (WSTM): Announced its fourth quarter and fiscal 2006 year-end results for the period ended May 31, 2006. Total revenue for the fourth quarter was $7,844,000 compared to $7,077,000 in the prior year's period, an increase of 11%. EBITDA loss for the fourth quarter of fiscal 2006 was $(743,000) compared to an EBITDA loss of $(3,757,000) in the fourth quarter of fiscal 2005. For the fiscal year 2006, total revenue was $28,121,000 compared to fiscal year 2005 revenue of $26,819,000, an increase of $1,302,000 or 5%.

Previous Quarter’s M&A Activity:

• Accolo, Inc. announced the acquisition of Teten Executive Recruiting, a retained executive search firm that specializes in using social software to reach and recruit the most qualified candidates. The firm focuses on the hedge fund, private equity, and strategy consulting industries.

• A.D.A.M. Inc. has bought privately held OnlineBenefits Inc. of Uniondale, N.Y., which provides benefit management services and software, for $32.5 million. A.D.A.M. said the deal will help it expand its suite of consumer-directed health-care services for employers, employees, consumers, and health-care payers to help reduce the costs of health care and benefit administration.

• The Employer Services Division of Automatic Data Processing, Inc. (NYSE: ADP) today announced it has entered into an agreement to acquire Employease®, Inc., a leading provider of Web-based solutions and outsourcing options for HR and benefits professionals. The agreement follows a successful partnership between Employease and ADP® Major Accounts Services, part of ADP Employer Services. The acquisition is expected to further expand ADP's presence within the mid-market to fulfill a growing demand for Software-as-a-Service (SaaS) solutions.

• Affiliated Computer Services, Inc. signed an agreement to acquire Intellinex, LLC, an Ernst & Young LLP enterprise. Ernst & Young LLP has entered into a multi-year learning services agreement with ACS/Intellinex to use its technology and administrative training support, as well as its learning design, to facilitate the delivery of the training content developed by Ernst & Young to its people. With this acquisition, ACS would further expand its menu of human resource outsourcing or HRO BPO capabilities.

• Avista Capital Partners, a private equity firm, announced it has acquired a 50% interest in Thompson Publishing Holding Co., Inc. from DLJ Growth Capital Partners, a Credit Suisse private equity fund. Thompson publishes over 300 publications including several in the human resources field.

• Benefit Communications Inc. (BCI) announced the acquisition of Corporate Services Inc. (CSI). CSI is an employee benefit enrollment and communications firm, specializing in providing services for insurance brokers, carriers and employee benefit providers. BCI is an industry-leading national firm providing benefit enrollment and communications outsourcing.

• BenefitMall, one of the nation's leading broker services companies, announced today that it has acquired Weston Group Benefits, LLC, one of the largest independent general agencies serving the New York Metropolitan area. Weston Group Benefits, LLC is headquartered in New York and is currently serving nearly 2,100 brokers and 25,000 in-force groups.

• Capital H Group, a rapidly expanding consulting firm headquartered in Chicago, has acquired PeopleMatter, a provider of talent management software that equips companies with processes and tools to measure the contribution of their workforce to business performance.

• Ceridian said it agreed to sell a majority portion of its retirement plan services business to The Newport Group for an undisclosed amount.

• CIGNA announced it has reached an agreement to acquire Star HRG, an operating division of HealthMarkets, Inc., and a leading provider of voluntary, limited benefit, low-cost health plans and other employee benefits coverage for hourly and part-time workers.

• CMGI Inc., a supply chain and inventory management provider, said Wednesday the company sold its SalesLink unit to Automatic Data Processing Inc. Terms of the deal were not disclosed.

• CollegeRecruiter.com announced today that it has acquired the Jobseeker’s Revenge blog from Jim Stroud, a recruiter at Microsoft and the continuing author of the Jim Stroud 2.0 blog.

• Dresser & Associates, Inc., a Sage Software Select Partner with offices in Scarborough, ME and Atlanta, GA, announced the acquisition of Tampa, FL.-based Ideal Consulting, Inc.'s Sage Abra HRMS and Sage FAS Fixed Assets business software consulting practices. Sage Abra HRMS and Sage FAS are best-of-breed human resource management systems (HRMS) and fixed asset management solutions, developed by Sage Software.

• Greenfire International, a human resources outsourcing and consulting firm servicing mid-market clients, announced its acquisition of Charlotte-based Intercede Inc., an ethics and compliance software firm. The acquisition will allow clients to benefit from enhanced and expanded ethics/compliance services, and comes at a time when organizations are under increased scrutiny to maintain an ethical culture in the workplace.

• HealthNow New York Inc., the parent company of BlueCross BlueShield of Western New York and BlueShield of Northeastern New York, and Brokerage Concepts, Inc. (BCI), announced that they have signed an agreement for HealthNow to acquire BCI's business and operations.

• Hyperion announced it has completed its previously announced acquisition of privately-held UpStream Software, a leading provider of data readiness and guided workflow solutions used to track the movement of financial information.

• Lawson Software and Intentia International have officially began operating as one company, offering a portfolio of enterprise resource planning solutions and pledging to take on the major players in the ERP world. The combination has brought together two leading mid-market ERP players. Lawson said that it can now effectively serve manufacturing, distribution and services industries across the globe, and its revenues will closely mirror the global ERP marketplace, with 45 percent coming from North America, 45 percent from Europe and the remainder from Asia-Pacific. Total combined revenues are approximately $750 million.

• PreVisor, a provider of workforce selection and performance services acquired Brainbench, Inc., an provider of employment testing and skills certification. The acquisition strengthens PreVisor’s position as an online provider of job-specific, pre-employment assessments by adding Brainbench's IT skills testing content to its library, expanding its market share, and increasing its foothold in the government sector.

• Human resources outsourcing firm Secova eServices Ltd acquired US-based UltraLink, which will be merged with the company. Baring Private Equity Partners, the primary investors at Secova, said they bought out shares from Trident and Capz, the investors at UltraLink, for an undisclosed sum.

• Kronos will acquire privately held Unicru. Under the terms of the agreement, Kronos will pay approximately $150 million in cash for Unicru. In a stement, Kronos said it believed combination of Unicru's expertise in selecting and hiring quality people with Kronos' expertise in deploying and managing the workforce will enable customers to integrate employee selection strategy with actual labor performance and tie labor planning to sourcing and hiring. Kronos also acquired SmartTime Software in July.

• Landmark Military Newspaper Group has acquired the assets of The Destiny Group, creating a comprehensive and integrated network of strategic base newspapers with military oriented career web sites.

• Mercer Human Resource Consulting has acquired Pendia Associates, a Swiss-based organisation specializing in retirement and investment consulting and pensions administration services. With the combined operations, Mercer will become one of the top consultancies of its type in Switzerland.

• MPS Group, Inc. a provider of specialty staffing, consulting and business solutions, announced that Badenoch & Clark, its United Kingdom-based professional services unit, has acquired Corinthe Companies. Corinthe is a leading provider of temporary and permanent professionals in the Netherlands. Terms of the deal were not disclosed.

• Oneida Financial Corp. announced the purchase of BCG, LLC, an employee benefits consulting and retirement plan administration firm located in Syracuse, New York.

• PACEL announced their intent to acquire World Wide Personnel Services of Virginia, Inc. World Wide Personnel Services of Virginia, Inc. is a human resource outsourcing company and licensed as a professional employer organization (PEO) by the state of Virginia and serves northern Virginia, Maryland and eastern West Virginia. World Wide Personnel Services of Virginia has over 40 clients. The company has been operating since 2001 and has enjoyed sustained growth over the last 5 years.

• Resolve Staffing, Inc. announced that it has completed the acquisition of Star Personnel. As previously reported, Star Personnel (www.starpersonnel.com), headquartered in Cincinnati, Ohio, is a provider of diversified staffing services with four offices in the Cincinnati/tri-state market.

• Rideau Recognition Solutions, Inc. announced that it has acquired the Recognition Management Institute, a consulting organization specializing in training managers how to recognize and retain top employees.

• Salary.com announced that it has acquired eComp Data Services, a provider of executive compensation data, from Aon Consulting. The Aon Consulting executive compensation group will focus on its core consulting services, partnering with Salary.com for executive compensation data.

• Sedgwick Claims Management Services, Inc. a provider of claims and productivity management solutions, and Fidelity National Financial, Inc. , along with their partners Thomas H. Lee Partners and Evercore Capital Partners, announced that Sedgwick CMS has acquired VPA, Inc. (VPA), a privately-held Calabasas, California-based claims services organization specializing in absence and disability benefit management programs for large employers. VPA has annual revenue of approximately $20 million.

• Talent Technology Corporation (TTC) today announced it has completed its acquisition of the assets of MagnaWare, a provider of intelligent recruiting solutions targeted to users of ERP-based human capital management (HCM) systems.

• Tidal Software, a leading provider of application scheduling and performance management software, today announced it has acquired Intersperse, Inc., a leading provider of monitoring and management solutions for the service-oriented enterprise, in a private equity transaction.

• Time America, Inc. and Unitime Systems, Inc., both major providers of automated workforce management solutions, today announced they have completed a transaction whereby Time America has divested certain direct sales assets to Unitime Systems.

• Towers Perrin announced that it has acquired the business of Risk Capital Management Partners LLC. Risk Capital, an independent consulting firm based in New York City, provides financial risk management services to companies in the financial services, energy, utilities and mining industries. The firm has extensive experience in helping clients identify, quantify and manage the full range of enterprise risks.

• TriNet, a nationwide provider of human resource (HR) outsourcing services for small and mid-sized companies, announced the purchase of the customer assets of Outsource Group, a nationwide HR services provider based in Walnut Creek, California. The transaction includes customer contracts for nearly 200 companies and also includes the rights to Outsource Group's name and web site. In addition, certain employees of Outsource Group will become full-time team members of TriNet.

• TruStar Solutions, acquired by First Advantage Corporation (NASDAQ: FADV) in December 2005, announced today that it is rebranding and will go to market as the Recruiting Solutions division of First Advantage as it aligns with the company's Hiring Solutions Group.

• Vertafore, Inc., a leading provider of specialized software solutions for the insurance industry, announced that it has entered into a definitive agreement to acquire all outstanding stock of BenefitPoint®, a leading San Francisco-based provider of sophisticated benefits software solutions.

• Willis Group Holdings Limited (NYSE:WSH), the global insurance broker, announced that it has entered into a contract to purchase the majority of the retail and all the reinsurance business of MGT Group. Located in Santiago, Chile, MGT has annualized revenues of approximately $4 million. Terms are not disclosed. The transaction is expected to complete in the third quarter of 2006.