CDI Corporation supplies engineering, information technology and staffing services to customers in the United States, Canada and the United Kingdom. The company has four divisions, Anders, Engineering Services, Information Technology Services and Management Recruiters International.
CDI Corp. (CDI), incorporated on July 30, 1985, provides engineering and information technology outsourcing and professional staffing services to its customers. The Company provides project outsourcing services for its customers’ engineering, information technology and project management needs, staffing services to augment its customers’ workforces and a range of professional services to meet its customers’ permanent placement needs. The Company operates through four reporting segments: Engineering Solutions (ES), Management Recruiters International (MRI), AndersElite (Anders) and Information Technology Solutions (ITS). In June 2010, the Company acquired L. Robert Kimball & Associates, Inc. In December 2010, the Company acquired the business of DSPCon, Inc.
Project outsourcing services
The Company provides engineering, information technology and related services to its customers in connection with the customers’ outsourcing projects or functions. These services are often performed at a CDI facility or at a customer’s location under the supervision of CDI personnel and often result in the production of a deliverable work product or services for the customer. CDI Engineering Solutions (ES) segment, these outsourcing projects can range in duration from several months to multiple years and generally include analysis of a customer’s engineering needs and development of solutions in one or more areas of a facility’s design and start-up. These services include such functions as feasibility studies, program and project management, technology and process design, front-end engineering design, detailed design, construction management, equipment procurement and facility start-up services. Additional services can include life-cycle plant maintenance. In the CDI Information Technology Solutions (ITS) segment, outsourcing projects and outsourcing of functions and processes can range from several months to multiple years and include assessments, execution of business application services, assurance and testing, program management and service-desk operations.
The Company provides personnel to its customers for a period of time to augment the customers’ workforces in times of project, seasonal, peak period or business cycle needs. The personnel provided are generally skilled engineering, IT, project management, architecture, construction and other professionals who work at a customer’s location under the supervision of the customer’s supervisory personnel on assignments that range from several months to over one year. The Company also provides managed staffing services by assuming overall management of a customer’s staffing. Each of the Company’s four business segments provides customers with staffing services.
The Company provides a range of services related to the permanent placement staffing needs of its customers. For ES, Anders and ITS, these services include search, recruitment and permanent placement of technical, professional and managerial personnel. For MRI, these services include sales of new permanent placement franchises and services to assist franchisees in generating permanent placements and related royalties.
Engineering Solutions
ES is a full-service engineering, procurement, construction management, and technical outsourcing and technical staffing firm providing project outsourcing, staffing and professional services through a global network of offices and alliance partners. In engineering project engagements, the Company seeks to utilize technical resources at the efficient CDI offices or alliance facilities. Approximately 22% of ES’s total revenue was generated outside the United States during the year ended December 31, 2009. ES offers its services to customers through different targeted verticals. CDI-Process and Industrial (P&I) provides a range of engineering, design, project management, professional staffing and outsourcing solutions to firms in oil, gas, refining, alternative energy, power generation and energy transmission, nuclear, chemicals and heavy manufacturing industries. In addition P&I also offers facility design, project management, engineering, professional staffing and facility start-up services to customers in the pharmaceutical, bio-pharmaceutical and regulated medical services industries.
CDI-Government Services (Government Services) provides engineering, design, and logistics services to the defense industry, particularly in marine design, systems development and military aviation support. CDI-Aerospace (Aerospace) provides a full range of engineering, design, project management, professional engineering staffing, and outsourcing solutions to both the commercial and military aerospace markets.
Management Recruiters International
MRI is a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems, and training and support services to its franchisees, which engage in the search and recruitment of managerial, professional, executive, administrative and technical personnel for employment by their customers. MRI brand names include Management Recruiters, Sales Consultants, CompuSearch and OfficeMates 5. As of December 31, 2009, MRI had 740 franchised offices in the United States and two master franchises, one covering the Japanese market and one covering the rest of the international markets.
MRI provides training and administrative support primarily from offices in Philadelphia, Pennsylvania and Cleveland, Ohio for the domestic franchise operations and in the United Kingdom and Japan for the international franchise operations. The broad geographic scope of operations and underlying support, and related systems enables franchisees to provide their customers with worldwide permanent placement services.
CDI AndersElite
Anders provides temporary and permanent candidates to customers, in the infrastructure environment seeking staff in building, construction and related professional services through a network of Company offices. Many candidates that Anders place in the United Kingdom are recruited from Australia and New Zealand. Customer disciplines include architecture, building services, rail, commercial and industrial construction, consulting engineering, facilities management, interior design, surveying and town planning projects in both private and government-funded capital infrastructure investments. In 2008, Anders generated approximately 3% of its total revenue from its Australian operations.
CDI Information Technology Solutions
ITS provides a range of information technology (IT) related services to its customers, which are Fortune 1000 customers with high volume IT requirements and/or the need to augment their own staff on a flexible basis. Services include staffing augmentation, permanent placement, outsourcing (both on-site and off-site) and consulting. ITS provides three types of services. IT Staffing-to provide IT specialists to assist in the completion of special projects or to address peak seasonal, project or business cycle demands through the addition of contract IT professionals or through a managed staffing solution, IT outsourcing-to improve process management of complex or labor-intensive IT functions such as testing and assurance, help desk operations and other business application services. IT consulting-to provide subject matter expertise in selected IT domains, improve IT process efficiency, reduce implementation time and obtain knowledgeable assessments from the Company’s subject matter experts.
The Company competes with Aerotek, Inc., Belcan Corporation, Day & Zimmerman, Inc., Gibbs and Cox, Inc., Jacobs Engineering Group Inc., The Shaw Group Inc., Heidrick & Struggles International, Inc., Korn/Ferry International, Robert Half International Inc., SRA International, Inc., Hays plc, CIBER, Inc., Computer Task Group, Inc., MPS Group, Inc. and Volt Information Sciences, Inc.
In the early 1990s, increased demand for computer and technological expertise among American corporations presented CDI with tremendous opportunity for growth. Intending to seize the lion's share of the rapidly expanding market for skilled technical employees, CDI dedicated itself to expanding its network of recruiting and consulting services. To help achieve this end, the company merged two of its subsidiaries, CDI Computer Services and Innovative Information Systems, Inc. in August 1993, creating a more focused, integrated business unit capable of offering a wider selection of consulting services to a broader range of customers. These expanded services included computer engineering, database design and management, and technical support. The merger also allowed CDI to extend its nationwide geographical presence, particularly in the Midwest.
At the same time, adapting to an increasingly specialized labor market forced CDI to reevaluate certain aspects of its business model. By the mid-1990s, the company's manufacturing technologies division was no longer generating a profit, leading CDI to divest itself of these operations in early 1996. CDI continued its downsizing efforts the following January, when it announced its intention to sell the manufacturing sector of Modern Engineering, its Michigan-based automotive supplier, while retaining the company's labor contracting business, which earned revenues of more than $120 million in 1996.
The year 1997 also witnessed a major transformation of CDI's leadership team. In March, the company elected Mitch Wienick to the position of CEO and president. Wienick replaced Water Garrison, who was retiring after more than 40 years with the company. In August CDI created a new chief operating officer position, selecting Robert J. Mannarino to spearhead the implementation of a range of new business strategies, including a complete analysis of existing operational strengths and long-term growth opportunities. CDI also named a new chief financial officer, John Sanford, in late October.
During this transition period the company was able to enjoy continued strong growth in its Technical Services division, forging new agreements with a host of partners in the technological industry, including GTE and Bell Atlantic. In January 1998, CDI expanded its role as a major source of technical staffing services for IBM by signing a new three-year contract with the company, and in February the company inked a deal with Westinghouse to provide a full range of staffing services, from technical expertise to administrative support. Later that month, CDI signed a multimillion-dollar contract with major defense contractor Northrop Grumman. The next year, the company cemented its presence in the United Kingdom with the acquisition of Humana International Group, a major staffing and recruitment provider, and in November 1999 CDI partnered with Monster.com, the leading Internet job site.
With competition for skilled labor becoming more intense heading into the new century, CDI began to look for ways to insure that it retained its leading position as a major staffing service for the technological industry. In order to bolster the strength of its existing workforce, CDI launched a unique initiative in April 2000 when it established CDI University, an online training resource dedicated to offering over 400 professional development courses to more than 32,000 employees worldwide.
However, CDI was not immune to the precipitous decline in the labor market that hit the American economy in the early 21st century, and sagging revenues forced the company to cut more than 11 percent of its administrative personnel in January 2002. The company also underwent another leadership shift when Mitch Wienick announced his retirement in early 2001. After electing Roger H. Ballou its new president and CEO, CDI launched a major restructuring program at the beginning of 2002, calling for the creation of four distinct business segments: CDI Permanent Placement, CDI Temporary Staffing, CDI Professional Services, and CDI Project Management. At the same time, the plan called for a continued streamlining of its core operations, closing 25 branch offices and divesting itself of the remaining divisions of Modern Engineering. By the middle of the year, however, the company had regained momentum, forging a major deal with European aircraft manufacturer Airbus in July 2002. An unprecedented agreement for an American company, the multi-year Airbus contract--calling for assistance in designing the landing gear for the new Airbus A380--suggested that CDI would emerge from the financial slump intact.
Principal Subsidiaries: Todays Staffing, Inc.; Management Recruiters International, Inc.
Principal Operating Units: CDI Permanent Placement; CDI Temporary Staffing; CDI Professional Services; CDI Project Management.
Principal Competitors: Adecco SA; COMFORCE Corporation; MPS Group, Inc.
OVERALL
Beta: 1.92
Market Cap (Mil.): $281.86
Shares Outstanding (Mil.): 19.11
Annual Dividend: 0.52
Yield (%): 3.53
FINANCIALS
CDI Industry Sector
P/E (TTM): -- 9.66 17.05
EPS (TTM): 45.49 -- --
ROI: -3.85 2.85 3.26
ROE: -4.07 4.85 5.84
Statistics:
Public Company
Incorporated: 1950 as Comprehensive Designers, Inc.
Employees: 23,570
Sales: $1.5 billion (2001)
Stock Exchanges: New York
Ticker Symbol: CDI
NAIC: 561330 Employee Leasing Services
Key Dates:
1950: Business is incorporated in Philadelphia, Pennsylvania, as Comprehensive Designers Inc.
1956: Walter R. Garrison becomes chief engineer at Comprehensive Designers.
1972: CDI acquires Management Recruiters International (MRI).
1973: Comprehensive Designers Inc. becomes CDI Corporation.
1991: CDI acquires Todays Temporary.
2002: CDI enters into agreement with European aircraft manufacturer Airbus.
Name Age Since Current Position
Garrison, Walter 84 1997 Independent Chairman of the Board
Eberhart, H. Paulett 57 2011 President, Chief Executive Officer, Director
Kerschner, Mark 57 2005 Chief Financial Officer, Executive Vice President
Short, Brian 38 2009 Senior Vice President, Chief Administrative Officer, General Counsel
Seiders, Joseph 62 2009 Senior Vice President, Chief Compliance Officer, Chief Legal Officer
Winokur, Barton 71 1968 Director
Karlson, Lawrence 68 1989 Independent Director
Emmi, Michael 69 1999 Independent Director
Kozich, Ronald 72 2003 Independent Director
Smith, Albert 61 2008 Independent Director
Seal, Anna 55 2010 Independent Director
Address:
1717 Arch Street
35th Floor
Philadelphia, Pennsylvania 19103-2768
U.S.A.
CDI Corp. (CDI), incorporated on July 30, 1985, provides engineering and information technology outsourcing and professional staffing services to its customers. The Company provides project outsourcing services for its customers’ engineering, information technology and project management needs, staffing services to augment its customers’ workforces and a range of professional services to meet its customers’ permanent placement needs. The Company operates through four reporting segments: Engineering Solutions (ES), Management Recruiters International (MRI), AndersElite (Anders) and Information Technology Solutions (ITS). In June 2010, the Company acquired L. Robert Kimball & Associates, Inc. In December 2010, the Company acquired the business of DSPCon, Inc.
Project outsourcing services
The Company provides engineering, information technology and related services to its customers in connection with the customers’ outsourcing projects or functions. These services are often performed at a CDI facility or at a customer’s location under the supervision of CDI personnel and often result in the production of a deliverable work product or services for the customer. CDI Engineering Solutions (ES) segment, these outsourcing projects can range in duration from several months to multiple years and generally include analysis of a customer’s engineering needs and development of solutions in one or more areas of a facility’s design and start-up. These services include such functions as feasibility studies, program and project management, technology and process design, front-end engineering design, detailed design, construction management, equipment procurement and facility start-up services. Additional services can include life-cycle plant maintenance. In the CDI Information Technology Solutions (ITS) segment, outsourcing projects and outsourcing of functions and processes can range from several months to multiple years and include assessments, execution of business application services, assurance and testing, program management and service-desk operations.
The Company provides personnel to its customers for a period of time to augment the customers’ workforces in times of project, seasonal, peak period or business cycle needs. The personnel provided are generally skilled engineering, IT, project management, architecture, construction and other professionals who work at a customer’s location under the supervision of the customer’s supervisory personnel on assignments that range from several months to over one year. The Company also provides managed staffing services by assuming overall management of a customer’s staffing. Each of the Company’s four business segments provides customers with staffing services.
The Company provides a range of services related to the permanent placement staffing needs of its customers. For ES, Anders and ITS, these services include search, recruitment and permanent placement of technical, professional and managerial personnel. For MRI, these services include sales of new permanent placement franchises and services to assist franchisees in generating permanent placements and related royalties.
Engineering Solutions
ES is a full-service engineering, procurement, construction management, and technical outsourcing and technical staffing firm providing project outsourcing, staffing and professional services through a global network of offices and alliance partners. In engineering project engagements, the Company seeks to utilize technical resources at the efficient CDI offices or alliance facilities. Approximately 22% of ES’s total revenue was generated outside the United States during the year ended December 31, 2009. ES offers its services to customers through different targeted verticals. CDI-Process and Industrial (P&I) provides a range of engineering, design, project management, professional staffing and outsourcing solutions to firms in oil, gas, refining, alternative energy, power generation and energy transmission, nuclear, chemicals and heavy manufacturing industries. In addition P&I also offers facility design, project management, engineering, professional staffing and facility start-up services to customers in the pharmaceutical, bio-pharmaceutical and regulated medical services industries.
CDI-Government Services (Government Services) provides engineering, design, and logistics services to the defense industry, particularly in marine design, systems development and military aviation support. CDI-Aerospace (Aerospace) provides a full range of engineering, design, project management, professional engineering staffing, and outsourcing solutions to both the commercial and military aerospace markets.
Management Recruiters International
MRI is a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems, and training and support services to its franchisees, which engage in the search and recruitment of managerial, professional, executive, administrative and technical personnel for employment by their customers. MRI brand names include Management Recruiters, Sales Consultants, CompuSearch and OfficeMates 5. As of December 31, 2009, MRI had 740 franchised offices in the United States and two master franchises, one covering the Japanese market and one covering the rest of the international markets.
MRI provides training and administrative support primarily from offices in Philadelphia, Pennsylvania and Cleveland, Ohio for the domestic franchise operations and in the United Kingdom and Japan for the international franchise operations. The broad geographic scope of operations and underlying support, and related systems enables franchisees to provide their customers with worldwide permanent placement services.
CDI AndersElite
Anders provides temporary and permanent candidates to customers, in the infrastructure environment seeking staff in building, construction and related professional services through a network of Company offices. Many candidates that Anders place in the United Kingdom are recruited from Australia and New Zealand. Customer disciplines include architecture, building services, rail, commercial and industrial construction, consulting engineering, facilities management, interior design, surveying and town planning projects in both private and government-funded capital infrastructure investments. In 2008, Anders generated approximately 3% of its total revenue from its Australian operations.
CDI Information Technology Solutions
ITS provides a range of information technology (IT) related services to its customers, which are Fortune 1000 customers with high volume IT requirements and/or the need to augment their own staff on a flexible basis. Services include staffing augmentation, permanent placement, outsourcing (both on-site and off-site) and consulting. ITS provides three types of services. IT Staffing-to provide IT specialists to assist in the completion of special projects or to address peak seasonal, project or business cycle demands through the addition of contract IT professionals or through a managed staffing solution, IT outsourcing-to improve process management of complex or labor-intensive IT functions such as testing and assurance, help desk operations and other business application services. IT consulting-to provide subject matter expertise in selected IT domains, improve IT process efficiency, reduce implementation time and obtain knowledgeable assessments from the Company’s subject matter experts.
The Company competes with Aerotek, Inc., Belcan Corporation, Day & Zimmerman, Inc., Gibbs and Cox, Inc., Jacobs Engineering Group Inc., The Shaw Group Inc., Heidrick & Struggles International, Inc., Korn/Ferry International, Robert Half International Inc., SRA International, Inc., Hays plc, CIBER, Inc., Computer Task Group, Inc., MPS Group, Inc. and Volt Information Sciences, Inc.
In the early 1990s, increased demand for computer and technological expertise among American corporations presented CDI with tremendous opportunity for growth. Intending to seize the lion's share of the rapidly expanding market for skilled technical employees, CDI dedicated itself to expanding its network of recruiting and consulting services. To help achieve this end, the company merged two of its subsidiaries, CDI Computer Services and Innovative Information Systems, Inc. in August 1993, creating a more focused, integrated business unit capable of offering a wider selection of consulting services to a broader range of customers. These expanded services included computer engineering, database design and management, and technical support. The merger also allowed CDI to extend its nationwide geographical presence, particularly in the Midwest.
At the same time, adapting to an increasingly specialized labor market forced CDI to reevaluate certain aspects of its business model. By the mid-1990s, the company's manufacturing technologies division was no longer generating a profit, leading CDI to divest itself of these operations in early 1996. CDI continued its downsizing efforts the following January, when it announced its intention to sell the manufacturing sector of Modern Engineering, its Michigan-based automotive supplier, while retaining the company's labor contracting business, which earned revenues of more than $120 million in 1996.
The year 1997 also witnessed a major transformation of CDI's leadership team. In March, the company elected Mitch Wienick to the position of CEO and president. Wienick replaced Water Garrison, who was retiring after more than 40 years with the company. In August CDI created a new chief operating officer position, selecting Robert J. Mannarino to spearhead the implementation of a range of new business strategies, including a complete analysis of existing operational strengths and long-term growth opportunities. CDI also named a new chief financial officer, John Sanford, in late October.
During this transition period the company was able to enjoy continued strong growth in its Technical Services division, forging new agreements with a host of partners in the technological industry, including GTE and Bell Atlantic. In January 1998, CDI expanded its role as a major source of technical staffing services for IBM by signing a new three-year contract with the company, and in February the company inked a deal with Westinghouse to provide a full range of staffing services, from technical expertise to administrative support. Later that month, CDI signed a multimillion-dollar contract with major defense contractor Northrop Grumman. The next year, the company cemented its presence in the United Kingdom with the acquisition of Humana International Group, a major staffing and recruitment provider, and in November 1999 CDI partnered with Monster.com, the leading Internet job site.
With competition for skilled labor becoming more intense heading into the new century, CDI began to look for ways to insure that it retained its leading position as a major staffing service for the technological industry. In order to bolster the strength of its existing workforce, CDI launched a unique initiative in April 2000 when it established CDI University, an online training resource dedicated to offering over 400 professional development courses to more than 32,000 employees worldwide.
However, CDI was not immune to the precipitous decline in the labor market that hit the American economy in the early 21st century, and sagging revenues forced the company to cut more than 11 percent of its administrative personnel in January 2002. The company also underwent another leadership shift when Mitch Wienick announced his retirement in early 2001. After electing Roger H. Ballou its new president and CEO, CDI launched a major restructuring program at the beginning of 2002, calling for the creation of four distinct business segments: CDI Permanent Placement, CDI Temporary Staffing, CDI Professional Services, and CDI Project Management. At the same time, the plan called for a continued streamlining of its core operations, closing 25 branch offices and divesting itself of the remaining divisions of Modern Engineering. By the middle of the year, however, the company had regained momentum, forging a major deal with European aircraft manufacturer Airbus in July 2002. An unprecedented agreement for an American company, the multi-year Airbus contract--calling for assistance in designing the landing gear for the new Airbus A380--suggested that CDI would emerge from the financial slump intact.
Principal Subsidiaries: Todays Staffing, Inc.; Management Recruiters International, Inc.
Principal Operating Units: CDI Permanent Placement; CDI Temporary Staffing; CDI Professional Services; CDI Project Management.
Principal Competitors: Adecco SA; COMFORCE Corporation; MPS Group, Inc.
OVERALL
Beta: 1.92
Market Cap (Mil.): $281.86
Shares Outstanding (Mil.): 19.11
Annual Dividend: 0.52
Yield (%): 3.53
FINANCIALS
CDI Industry Sector
P/E (TTM): -- 9.66 17.05
EPS (TTM): 45.49 -- --
ROI: -3.85 2.85 3.26
ROE: -4.07 4.85 5.84
Statistics:
Public Company
Incorporated: 1950 as Comprehensive Designers, Inc.
Employees: 23,570
Sales: $1.5 billion (2001)
Stock Exchanges: New York
Ticker Symbol: CDI
NAIC: 561330 Employee Leasing Services
Key Dates:
1950: Business is incorporated in Philadelphia, Pennsylvania, as Comprehensive Designers Inc.
1956: Walter R. Garrison becomes chief engineer at Comprehensive Designers.
1972: CDI acquires Management Recruiters International (MRI).
1973: Comprehensive Designers Inc. becomes CDI Corporation.
1991: CDI acquires Todays Temporary.
2002: CDI enters into agreement with European aircraft manufacturer Airbus.
Name Age Since Current Position
Garrison, Walter 84 1997 Independent Chairman of the Board
Eberhart, H. Paulett 57 2011 President, Chief Executive Officer, Director
Kerschner, Mark 57 2005 Chief Financial Officer, Executive Vice President
Short, Brian 38 2009 Senior Vice President, Chief Administrative Officer, General Counsel
Seiders, Joseph 62 2009 Senior Vice President, Chief Compliance Officer, Chief Legal Officer
Winokur, Barton 71 1968 Director
Karlson, Lawrence 68 1989 Independent Director
Emmi, Michael 69 1999 Independent Director
Kozich, Ronald 72 2003 Independent Director
Smith, Albert 61 2008 Independent Director
Seal, Anna 55 2010 Independent Director
Address:
1717 Arch Street
35th Floor
Philadelphia, Pennsylvania 19103-2768
U.S.A.
Last edited: