The 55 percent growth in earnings and 50 percent growth in earnings per share were primarily attributable to continued strong performance in The Work Number Services and Human Resources and Benefits Application Services lines of business. Total revenues increased 13 percent to $10.7 million from $9.5 million the prior year.

The 40 percent combined revenue gain of The Work Number Services and Human Resources and Benefits Application Services was partially offset by a 38 percent revenue decrease in the software business, which is comprised of customer premises systems and the related maintenance and support. Reflecting a strategic business shift, the software revenues were relatively consistent with the prior sequential quarter.

TALX continues to focus on capitalizing upon the market opportunities in our core businesses. Revenues and profits for the quarter reflect continued strong performance of The Work Number Services and Human Resources and Benefits Application Services lines of business, as well as our continuing efforts to control our selling, general and administrative costs, William W. Canfield, chairman and chief executive officer, explained.

The company reported that The Work Number Services, the company’s largest business unit, grew revenues 47 percent over year-ago levels. The total number of employment records on the service increased to 46.0 million at June 30, from 33.8 million a year ago and 43.0 million at the end of the prior sequential quarter. This represents a 36 percent increase over the prior year and a 7 percent increase over the prior sequential quarter. Total employment records under contract, including those in contract backlog to be added to the database, increased to 54.6 million at June 30 from the year-earlier 38.9 million and 52.6 million at the end of the previous quarter, for increases of 40 percent and 4 percent, respectively.

Revenues of Human Resources and Benefits Application Services, the second largest business, were up 25 percent year over year. The revenue growth was achieved through additional market penetration, as we offered enhanced end-to-end benefits enrollment solutions to large enterprises that believe in the benefits of outsourcing their non-core competencies, Canfield explained.

SOURCE: COMPANY PRESS RELEASE