(Source: Business Wire)MPS Group, Inc. (NYSE:MPS), a leading provider of specialty staffing, consulting and business solutions, today announced financial results for the third quarter and nine months ended September 30, 2009. Third quarter revenue of $408 million was within the range of guidance previously provided by management, and diluted net income per common share of $0.06 was above the range of guidance previously provided by management, due primarily to lower general and administrative expenses and the benefit of a lower income tax rate.

MPS Group revenue decreased 29% versus last year's third quarter. Excluding the impact of changes in foreign currency exchange rates, revenue was down 25% versus the third quarter of 2008. On a sequential basis, revenue declined 2% versus the second quarter of 2009. Excluding the impact of changes in foreign currency exchange rates, revenue decreased 5% sequentially versus the second quarter of 2009.

Third quarter gross margin of 26.8% was adversely affected by fewer permanent placement fees, which represented 2.9% of total revenue in the third quarter of 2009 versus 5.3% of total revenue in the prior year's third quarter. In the third quarter, operating income was $8 million, or 2.1% of third quarter revenue, compared with $7 million, or 1.6% of revenue, in the second quarter of 2009.

A detailed analysis of revenue, gross profit and operating income by segment is provided below. A summary balance sheet is provided below as well.

Timothy Payne, MPS Group Chief Executive Officer, stated, "We were pleased with our financial performance for the quarter despite the current weakness in the employment market."

"During the quarter, general and administrative expenses declined $6 million sequentially versus the second quarter of 2009, which produced a higher level of taxable income resulting in a lower-than-expected effective income tax rate," added MPS Group Chief Financial Officer Robert Crouch. "The combination of these two items resulted in earnings per share being above the range of guidance previously provided."

As previously announced, MPS Group has signed a definitive agreement to be acquired by Adecco Group for $13.80 per common share in a cash transaction valued at approximately $1.3 billion. The Adecco Group (SIX:ADEN-VX) (Euronext:ADE), based in Zurich, Switzerland, is a Fortune Global 500 Company and the world's leading provider of human resource solutions with operations in over 60 countries. The transaction is expected to close in the first quarter of 2010 and is subject to MPS Group shareholder approval, antitrust clearance and certain other regulatory approvals and closing conditions.

About MPS Group

MPS Group is a leading provider of staffing, consulting, and solutions in the disciplines of information technology, finance and accounting, law, engineering, marketing and creative, property, and healthcare. MPS Group delivers its services to businesses and government entities in the United States, Europe, Canada, Australia, and Asia. A Fortune 1000 company with headquarters in Jacksonville, Florida, MPS Group trades on the New York Stock Exchange. For more information about MPS Group, please visit www.mpsgroup.com.

Additional Information and Where To Find It

In connection with the proposed merger, MPS Group will file a proxy statement with the Securities and Exchange Commission ("SEC"). Investors are urged to read the proxy statement when it becomes available because it will contain important information about the merger as well as other documents filed by MPS Group at the SEC's Internet site, www.sec.gov. These documents can also be obtained for free from MPS Group's Investor Relations web site (www.mpsgroup.com) or by calling 904-360-2500.

MPS Group and its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information regarding MPS Group's directors and executive officers is available in MPS Group's proxy statement dated April 20, 2009, filed with the SEC. Additional information regarding the interests of participants of MPS Group will be included in the proxy statement to be filed with the SEC in connection with the merger.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to certain risks, uncertainties or assumptions described above and may be affected by other factors, including, but not limited to: fluctuations in the economies and financial markets in the U.S. and foreign countries where we do business and in the Company's industry segments in particular; the market price of the Company's common stock has been, and may continue to be, materially affected by the anticipated commencement and completion of the proposed acquisition of the Company, or the failure of the acquisition of the Company to be completed; uncertainties associated with the proposed acquisition may cause a loss of employees and may otherwise adversely affect the Company's business operations; the proposed acquisition agreement contains restrictive covenants that may limit the Company's ability to respond to changes in market conditions or pursue business opportunities; industry trends toward consolidating vendor lists; the demand for the Company's services, including the impact of changes in utilization rates; consolidation or bankruptcy of major customers; the effect of competition, including the Company's ability to expand into new markets and to remain profitable or maintain profit margins in the face of pricing pressures; the Company's ability to retain significant existing customers or obtain new customers; the Company's ability to recruit, place and retain consultants and professional employees; the Company's ability to identify and complete acquisition targets and to successfully integrate acquired operations into the Company; possible changes in governmental laws and regulations affecting the Company's operations, including possible changes to laws and regulations relating to benefits for consultants and temporary personnel, and possible increased regulation of the employer-employee relationship; employment-related claims, costs, and other litigation matters; adjustments during periodic tax audits; litigation relating to prior and current transactions and activities; claims and liabilities asserted for the acts or omissions of our temporary employees; fluctuations in interest rates or foreign currency exchange rates; loss of key employees; fluctuations in the price of the Company's common stock due to actual or anticipated changes in quarterly operating results, financial estimates, statements by securities analysts, and other events; and other factors discussed in the Company's filings with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as: "will," "may," "should," "could," "expects," "intends," "plans," "hopes," "indicates," "projects," "can," "anticipates," "perhaps," "probably," "believes," "estimates," "appears," "predicts," "potential," "continues," "would," or "become," or other comparable terminology or the negative of these terms or other comparable terminology. Readers are urged to review and consider the matters discussed in "Item 1A.