EX-99 2 exhibit99.htm EXHIBIT 99 Exhibit


EXHIBIT 99

The unaudited reclassified summary segment financial information provided below is provided to reflect the realignment of the Company's reporting segments effective during the first quarter of 2016. The Company did not operate under the realigned structure for any of these prior periods and will begin to report comparative results under the new structure effective with the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.


Reporting Segments

Reporting segment data on a quarterly basis for the year ended December 31, 2015 and on an annual basis for the years ended December 31, 2015 and 2014 is presented in the tables below:

 
Year ended December 31, 2015
 
Year ended December 31, 2014
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions
$
161,426

 
$
149,392

 
$
146,863

 
$
138,282

 
$
595,963

 
$
728,686

Specialty Talent and Technology (1)
7,690

 
7,901

 
7,724

 
18,115

 
41,430

 
32,145

Engineering Solutions
74,831

 
76,536

 
76,570

 
67,004

 
294,941

 
303,237

Management Recruiters International (MRI)
13,511

 
12,992

 
13,505

 
13,152

 
53,160

 
58,904

Total revenue
$
257,458

 
$
246,821

 
$
244,662

 
$
236,553

 
$
985,494

 
$
1,122,972

 
 
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions
$
19,260

 
$
18,326

 
$
18,165

 
$
16,177

 
$
71,928

 
$
88,738

Specialty Talent and Technology (1)
2,562

 
2,595

 
2,422

 
5,853

 
13,432

 
10,920

Engineering Solutions
18,379

 
19,254

 
19,624

 
16,134

 
73,391

 
79,184

MRI
6,569

 
6,472

 
6,616

 
6,493

 
26,150

 
27,715

Total gross profit
$
46,770

 
$
46,647

 
$
46,827

 
$
44,657

 
$
184,901

 
$
206,557

 
 
 
 
 
 
 
 
 
 
 
 
Operating profit:
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions (2), (3), (4)
$
4,176

 
$
3,093

 
$
(8,955
)
 
$
238

 
$
(1,448
)
 
$
24,594

Specialty Talent and Technology (1), (2), (4)
725

 
444

 
188

 
(626
)
 
731

 
4,053

Engineering Solutions (2), (3), (4)
(397
)
 
907

 
(10,123
)
 
(3,227
)
 
(12,840
)
 
(12,309
)
MRI (2), (4)
1,456

 
1,574

 
1,927

 
1,055

 
6,012

 
6,531

Corporate (2), (4)
(4,820
)
 
(4,815
)
 
(5,166
)
 
(6,250
)
 
(21,051
)
 
(17,483
)
Total operating profit
1,140

 
1,203

 
(22,129
)
 
(8,810
)
 
(28,596
)
 
5,386

Other income (expense), net
13

 
(97
)
 
683

 
(538
)
 
61

 
(228
)
Income before income taxes
$
1,153

 
$
1,106

 
$
(21,446
)
 
$
(9,348
)
 
$
(28,535
)
 
$
5,158

 
(1) 
On October 6, 2015, the Company acquired EdgeRock Technologies, LLC (EdgeRock). The results of EdgeRock have been included in the Specialty Talent and Technology segment from the date of acquisition and include revenue of $10.2 and operating loss of $1.2 million (after giving effect to $2.1 million of amortization of acquired intangible assets) for the year ended December 31, 2015.

(2) 
In 2015 and 2014, the Company recorded charges related to certain restructuring plans. The following table summarizes the amount of such charges by reporting segment for the indicated periods:
 
Year ended December 31, 2015
 
Year ended December 31, 2014
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions
$
47

 
$
—

 
$
331

 
$
706

 
$
1,084

 
$
1,001

Specialty Talent and Technology
—

 
—

 
—

 
130

 
130

 
152

Engineering Solutions
—

 
—

 
235

 
1,918

 
2,153

 
2,092

MRI
—

 
—

 
—

 
—

 
—

 
259

Corporate
—

 
—

 
—

 
850

 
850

 
141

Restructuring and other related costs
$
47

 
$
—

 
$
566

 
$
3,604

 
$
4,217

 
$
3,645






(3) 
In 2015 and 2014, the Company recorded charges related to the impairment of goodwill, definite-lived intangibles and other assets. The following table summarizes the amount of impairment recognized by reporting segment for the indicated periods:
 
Year ended December 31, 2015
 
Year ended December 31, 2014
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions
$
—

 
$
—

 
$
10,653

 
$
—

 
$
10,653

 
$
—

Engineering Solutions
—

 
—

 
10,884

 
—

 
10,884

 
14,653

Impairment
$
—

 
$
—

 
$
21,537

 
$
—

 
$
21,537

 
$
14,653


(4) 
The following table summarizes the amount of depreciation and amortization recognized by reporting segment for the indicated periods:
 
Year ended December 31, 2015
 
Year ended December 31, 2014
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Enterprise Talent Solutions
$
392

 
$
274

 
$
259

 
$
328

 
$
1,253

 
$
1,038

Specialty Talent and Technology
72

 
73

 
88

 
2,250

 
2,483

 
368

Engineering Solutions
1,511

 
1,505

 
1,431

 
1,277

 
5,724

 
6,231

MRI
82

 
80

 
65

 
68

 
295

 
344

Corporate
505

 
518

 
456

 
445

 
1,924

 
2,736

Depreciation and amortization
$
2,562

 
$
2,450

 
$
2,299

 
$
4,368

 
$
11,679

 
$
10,717