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Business Services Research March 2012

Human Capital ServicesHCS Map

Mark S. Marcon, CFA [email protected] 414.298.7556

Patrick R. Abeln [email protected] 414.765.3589

Table of Contents(Use the links below to navigate. To return, click on any page heading.)

HCS News ................................................................................................................................................................. 1 Covered Companies Research and News .................................................................................................................. 6 Labor Market Overview .......................................................................................................................................... 13 U.S. Valuation Metrics ............................................................................................................................................ 21 U.S. Company Profiles ............................................................................................................................................ 22 U.S. Recent Financial Performance ......................................................................................................................... 23 European Valuation Metrics.................................................................................................................................... 24 European Company Profiles.................................................................................................................................... 25 European Recent Financial Performance ................................................................................................................ 26 IPO Chronology ...................................................................................................................................................... 27 Follow-On Offering Chronology .............................................................................................................................. 28 Selected M&A Activity ............................................................................................................................................ 29 Comparative Index Performance ............................................................................................................................ 39 U.S. Closing Stock Price Graphs (3/20/12) ............................................................................................................ 43 European Closing Stock Price Graphs (3/20/12) ................................................................................................... 53 MAP Information .................................................................................................................................................... 59 Appendix Important Disclosures and Analyst Certification .................................................................................. 60 Bairds Human Capital Services Contacts ............................................................................................................... 62 Please refer to Appendix - Important Disclosures and Analyst Certification on pages 60 and 61

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HCS NewsHCS News Stories Personnel Changes/Promotions Dividends/Share Repurchases Dice Holdings Announces $65 Million Share Repurchase Program. Dice Holdings, a leading provider of specialized online career sites, announced that the companys board of directors has approved a new $65 million share repurchase program. The new authorization is effective upon the completion of the companys existing $30 million repurchase program, and will be in effect for one year. The previous $30 million program was approved in August 11, and through March 8, 2012, the company had repurchased 3.4 million shares for a total of $29.4 million (average price of $8.64/share). Insperity Declares Quarterly Dividend. Insperity, a leading professional employer organization (PEO), declared a regular quarterly dividend of $0.15/share. The dividend is payable March 23 to shareholders of record on March 9. Kelly Services Declares Quarterly Dividend. Kelly Services, a leading provider of staffing services and workforce solutions, declared a regular quarterly dividend of $0.05/share. The dividend was paid March 16 to shareholders of record on February 27. Towers Watson Declares Quarterly Dividend, Announces $150 Million Share Repurchase Authorization. Towers Watson, a leading provider of human capital and financial services consulting, has declared a regular quarterly dividend of $0.10/share. The dividend is payable April 16 to shareholders of record on March 30. In addition, Towers Watsons board of directors has approved the repurchase of up to $150 million of Class A common stock. The authorization is subject to certain price and availability restrictions, has no expiration date, and can be discontinued at any time. AMN Healthcare Names Sean Ebner President of Locum Tenens. AMN Healthcare, the largest U.S. healthcare staffing firm, has hired Sean Ebner as president of the companys locum tenens (temporary physicians) division. Mr. Ebner spent the past 11 years at Technisource, the IT staffing division of SFN Group (now owned by Randstad). Locum Tenens is AMN Healthcares second-largest segment (behind Nurse and Allied), and generated revenue of $278 mn in 2011 (31% of total company revenue). CHG Healthcare Names Alan McIver Group President. CHG Healthcare, a leading provider of healthcare staffing solutions, has hired Alan McIver as group president. In this role Mr. McIver will be responsible for overseeing RN Network, CHGs nurse travel business, and CompHealth, CHGs rehab travel division. Mr. McIver most recently served as Founder, President, and CEO of Skipstone Healthcare Staffing, and previously served as President and CEO of Supplemental Health Care. CTPartners Hires Sarah Lim as Partner. CTPartners, a leading provider of executive search services, has hired Sarah Lim as a Partner in the companys Retail & Consumer Goods Practice in London. Ms. Lim has over 15 years of global executive search experience, including time at Odgers Ray & Berndtson, Purcon, and most recently Spencer Stuart. Kelly Services Appoints Two New Executives in Australia. Kelly Services, a leading provider of staffing services and workforce solutions, has hired Heather Oliver as Director of Business Solutions Australia. Ms. Oliver has 23 year of recruiting industry experience, including time at Talent2, TMP/Hudson, and Hays plc. In addition, Kelly Services has hired Brett Maher as Business Development Manager Adelaide. In this role, Mr. Maher will be responsible for growing the companys business in the Adelaide area, with a particular focus on the industrial market. Korn/Ferry Hires Robert Rozek as Chief Financial Officer. Korn/Ferry International, the worlds largest provider of executive search, has hired Robert Rozek as the firms new CFO. Mr. Rozek has extensive finance experience and most recently served as EVP and CFO at Cushman & Wakefield. Previously he also spent time at Las Vegas Sands Corp., Eastman Kodak, and PwC. In this role Mr. Rozek succeeds Mike DiGregorio, who previously decided to leave the firm to pursue other interests. Please see our 2/22 KFY note Perspective on CFO Transition for additional details/analysis.

Financing and Offerings PeopleMatter Raises $14 Million in Series C Funding. PeopleMatter, a provider of online software solutions designed to help employers manage and develop their hourly workforces, has raised $14 million in Series C funding. This round of financing, which was led by Morgenthaler Ventures, is designed to continue to accelerate PeopleMatters product-innovation and customer-acquisition strategies. Existing PeopleMatter investors Noro-Moseley Partners, C&B Capital, Intersouth Partners, and Harbert Ventures also participated in the Series C funding. According to the company, PeopleMatter has an integrated set of solutions for recruiting, scheduling, learning, and performance that are designed specifically for hourly workers.

Robert W. Baird & Co.

Human Capital Services March 2012

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HCS News Korn/Ferry Hires Global Managing Director for Technology Practice. Korn/Ferry has also announced the hiring of Werner Penk as Global Managing Director of the companys Technology Practice. Mr. Penk is a very seasoned executive within the technology industry, with nearly 30 years of experience, and most recently served as a leader of Heidrick & Struggles technology practice. Previously, he also spent time at Russell Reynolds, Micrologica AG, and Siemens AG. Korn/Ferry Hires Senior Client Partner in Real Estate Practice. Korn/Ferry also announced the hiring of Robert Mayes as a Partner in the companys North America Real Estate Practice. Mr. Mayes joins Korn/Ferry from Russell Reynolds, where he served a wide range of public and private real estate clients. Resources Global Hires Radgia Cook, Expands Healthcare Practice. Resources Global Professionals, the operating entity of multi-national professional services firm Resources Connection, has hired Radgia Cook as President of the firms Healthcare Solutions practice. Ms. Cook has over 22 years of experience and most recently worked at ACS, a subsidiary of Xerox. In addition, Resources has hired a team of healthcare IT and compliance professionals to work with Ms. Cook to build out the new Healthcare Solutions division. SourceRight Names Karen Turner VP of Product Development and Strategy. SourceRight Solutions, a Randstad company that provides RPO and workforce solutions, has appointed Karen Turner to the newly appointed role of Vice President of product development and strategy. Ms. Turner joined SourceRight in 2006 and most recently served as VP of strategic talent optimization. Prior to joining SourceRight, Ms. Turner served as a VP at ZeroChaos, a leading provider of VMS and contingent workforce solutions. Towers Watson Hires Head of Change Management in the UK. Towers Watson, a leading provider of human capital and financial services consulting, has hired Phil Merrell as Director of Change Management in the UK. Mr. Merrell has over 25 years of experience, including time spent at Penna, BBC, and the NHS. In his new role at Towers Watson, Mr. Merrell will be focused on M&A, business transformation, and performance improvement for the companys UK business. Towers Watson Hires Three Senior Risk Consultants. Towers Watson has also announced the hiring of three life insurance veterans in the companys UK risk consulting business. The three individuals hired are Tim Bateman, Peter Murphy, and Miles Stanhope. Mr. Bateman joins Towers Watson from Equitable Life and will be based in London; Mr. Murphy comes to Towers Watson from Lloyds Banking Group and will be based in Manchester; and Mr. Stanhope joins Towers Watson from PwC. Workday Hires Two Executives. Workday, Workday, a provider of SaaS-based business enterprise solutions with a primary focus on the HCM suite including HRMS/payroll, has hired two new executives to help support the companys rapid growth. First, Debi Hirshlag has been added as Vice President of Human Resources. Ms. Hirshlag most recently served as VP of worldwide HR at Flextronics, where she also led the companys deployment of Workday (one of the largest Saasbased core HR rollouts to date). In addition, Workday hired Jim Shaughnessy as Vice President, general counsel, and secretary. Mr. Shaughnessy has over 25 years of legal experience including time at Compaq Computer Corp., HP, Lenovo Group, Orbitz Worldwide, and PeopleSoft.

Merger and Acquisition Activity On Assignment to Acquire Apex Systems for $600 Million. On Assignment, a diversified international professional staffing firm, has signed an agreement to acquire Apex Systems, one of the largest and fastest-growing domestic IT staffing firms, for $600 million in a cash and stock deal. Under terms of the agreement, ASGN will pay $383 million in cash and $217 million in newly issued stock. Apex Systems generated 2011 revenues of $705 million (vs. ASGN at $597 mn), with an adj. EBITDA margin of roughly 9.2% (close to ASGN at 9.9%). Following the transaction On Assignment will run Apex as a (mostlyindependent) business within the ASGN portfolio, and the combined entity will be one of the largest IT staffing companies in the U.S. On a pro forma basis, the combined businesses generated 2011 revenues of approx. $1.3 billion, with roughly 75% coming from IT & Engineering. Please see our 3/21 note Positive View on Materially Accretive Acquisition; Raising Price Target for a full review of this transaction. Kforce Agrees to Sell Clinical Research Business for $50 Million. Kforce, a national provider of professional and specialty staffing services, has entered into a stock purchase agreement to sell its Clinical Research (KCR) business to inVentiv Health for $50 million in cash. The KCR business generated 2011 revenue of $106.2 million and 11 gross profit of $28.6 mn (26.9% GM vs. company avg. of 31.2%), representing 10% of total KFRC revenue and 8% of total gross profit. inVentiv Health is a leading global provider of healthcare services, with 13,000 employees in 40 countries. The transaction is expected to close by the end of March and Kforce plans to use the proceeds to pay down debt, repurchase common stock, invest in infrastructure, and/or marke strategic acquisitions. Robert W. Baird acted as sole strategic advisor to Kforce in this transaction. Please see our 3/19 note Positive View

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Human Capital Services March 2012

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HCS Newson Announced Sale of Clinical Research Division for additional details and disclosures. ADP to Acquire HR Solutions Subsidiary of SHPS. ADP, a leading provider of payroll processing and business outsourcing solutions, has agreed to acquire the HR solutions subsidiary of SHPS, a provider of benefits administration solutions. This business is based in Louisville, KY with approx. 840 employees and provides benefits eligibility and enrollment, spending accounts, COBRA, absence management, benefits advocacy, and print and fulfillment. ADP expects the acquisition to close during CQ1 of 2012. Terms of the agreement were not disclosed. Oracle Receives Early Approval by FTC in Pending Taleo Acquisition. Oracle, a leading global provider of business hardware and software systems, has been granted early approval by the U.S. FTC in its pending acquisition of Taleo. On February 9, Taleo and Oracle announced the acquisition, where Oracle agreed to acquire Taleo for $46/share, representing a total enterprise value of $1.9 billion. Taleo is a leading provider of SaaS-based talent management solutions, with over 5,000 clients worldwide. The $46/share offer price represents 5.1x EV/unrevised RWB 12E revenue, and is roughly consistent with Oracles acquisition of RNOW in October for approx. 5.5x EV/12E revenue (which marked the companys first major SaaS acquisition). In addition, this acquisition follows SAPs acquisition of SuccessFactors, which was originally announced in early December, and we would expect the consolidation within the SaaS/talent management space to continue at a rapid pace. The acquisition has been unanimously approved by Taleos Board and is expected to close in mid-2012. Please see our 2/9 note ORCL to Acquire for $46/share and our 2/10 note Downgrading to Neutral; Additional Thoughts PostORCL Announcement for additional details/analysis. SAP Completes SuccessFactors Acquisition; Shares of SFSF no longer trade. SAP, a leading global provider of enterprise application software, has completed its acquisition of SuccessFactors for $40/share. Previously, on December 16 SAP entered into an agreement to acquire SuccessFactors, a leading provider of SaaSbased business execution (BizX) software solutions, for $40/share in cash (representing a total enterprise value of $3.4 billion). This acquisition signals SAPs aggressive expansion into the HCM SaaS market, and was recently followed by Oracles acquisition of Taleo (see bullet directly above). We discontinued research coverage of SFSF on February 27 please see our note Discontinuing Coverage; Acquisition by SAP Completed for additional details. LinkedIn Acquires Rapportive. LinkedIn, the worlds largest professional network on the Internet, has acquired Rapportive, which provides a Gmail plug-in designed to integrate users social network/contacts with their email accounts. Terms of the acquisition were not disclosed. However, in LinkedIns annual 10-K filing, which was filed March 2, the company disclosed it had made two small acquisitions for a total of $7.3 million during Q1 of 2012 (it was not explicitly stated that Rapportive was one of these two acquisitions, though it appears Rapportive was acquired mid- to late-February and the 10-K was filed on March 2). Cornerstone OnDemand to Acquire Sonar6. Cornerstone OnDemand, a leading SaaS-based provider of learning and talent management solutions, has entered into an agreement to acquire Sonar Limited (Sonar6) for approx. $14 million. The consideration includes approx. $13 million in cash and $1 million in equity, and the CSOD does not expect the transaction to have a material impact on its non-GAAP financial metrics in 2012. Sonar6 is a leading provider of SaaS-based talent management solutions, which provides a strong complement to Cornerstones leading, organically built, talent management suite that has been developed for large- and mid-sized businesses. Following the acquisition, the Sonar6 products will be rebranded as a Cornerstone solution, but the two products will not be integrated, rather they will remain separate organically built solutions with a specific market focus (large/mid-sized clients for CSOD, and small businesses for Sonar6). The transaction is expected to close within 45 days of the announcement, which was originally made on March 8.

Miscellaneous Monster Hires Advisers for Review of Strategic Alternatives. On March 1, Monster Worldwide (MWW) announced at the Baird Business Solutions Conference that while it is focused on the business, it is exploring all strategic alternatives to increase shareholder value. Subsequent to this announcement, on March 5 Monster announced it has retained financial advisers to review its strategic alternatives. The advisers that were hired are Bank of America Merrill Lynch and Stone Key Partners. While we believe a sale of the company is possible, we believe it is just one of several possible strategic alternatives, and in our view management is actively exploring all opportunities. Please see our 3/21 MWW note for additional details/analysis. SAP and SuccessFactors Announce HCM Product Roadmap. SAP, a leading global provider of enterprise application software, and SuccessFactors, a leading provider of SaaS-based business execution solutions that was recently acquired by SAP, have recently announced a unified product roadmap for the companies human capital management (HCM) solutions. According to the two companies, SAP will boldly invest behind SuccessFactors Employee Central as the Page 3

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Human Capital Services March 2012

HCS Newscore HR offering in the cloud. In the talent management suite, SAP will combine components of SAP ERP HCM with the following SuccessFactors modules: performance management, compensation, recruiting, Jam, and learning. SAP also intends to combine SuccessFactors analytics solutions with the SAP HANA platform and the SAP BusinessObjects portfolio. Robert Half Recognized as Industry Leader on Worlds Most Admired List. Robert Half International, the worlds largest specialized staffing service, has been ranked first in its industry on FORTUNE magazines annual Worlds Most Admired Companies list. According to the report, Robert Half is an industry leader in areas such as innovation, people management, service quality, long-term investment value and financial soundness, among others. Towers Watson Recognized as Industry Leader on Worlds Most Admired List. Towers Watson, a leading provider of human capital and financial services consulting, has also been ranked first in its industry on FORTUNE magazines annual Worlds Most Admired Companies list. According to the report, Towers Watson is the industry leader in areas such as innovation, people management, quality management, financial soundness, and global competitiveness. This is the first time that Towers Watson has received this prestigious recognition. Heidrick & Struggles Partner David Boehmer Named Young Global Leader. Heidrick & Struggles, a leading provider of executive search and leadership advisory services, announced that David Boehmer has been named a Young Global Leader (YGL) by the World Economic Forum (WEF). Mr. Boehmer is a Partner at Heidricks Financial Services practice and Sector Leader in Consumer & Commercial Banking. In 2012, the WEF selected 192 Young Global Leaders from 59 countries worldwide. Hudson Highland Recognized for Exceptional Customer Service. Hudson Highland Group, an international professional staffing firm, has been recognized on Inaveros 2012 Best of Staffing Client and Talent lists. This annual list is presented annually in partnership with CareerBuilder, and is designed to highlight staffing industry leaders in client satisfaction. The 2012 survey was based on responses from 454,000 clients, interim employees, and placed candidates. Fieldglass CEO Receives Staffing Innovator Award. Jai Shekhawat, CEO of leading VMS provider Fieldglass, has been presented with the 2012 Peter Yessne Staffing Innovator Award by Staffing Industry Analysts at SIAs annual Executive Forum. According to Barry Asin, President of Staffing Industry Analysts, The growth and adoption of vendor management systems (VMS) has been one of the most striking and enduring innovations in staffing over the past decade. Jai Shekhawat has been leading the cutting edge of that development. This innovation has shown how technology could be used to connect suppliers and buyers of contingent labor while increasing usage and quality. Paychex Named a Leading Training Organization. Paychex, a leading provider of payroll and HR outsourcing solutions, has been named to Training magazines Top 125 list of outstanding training organizations. Paychex was ranked No. 35 in the 2012 report, which is based on quantitative and qualitative factors such as financial investment in employee development, the scope of development programs, and how closely such development efforts are linked to business goals and objectives. This is the 11th consecutive year that Paychex has been recognized on the Training magazine list. TrueBlue Recognized for Leading Employee Health Policies. TrueBlue, a leading provider of temporary blue-collar staffing services, has received Gold Standard accreditation from The CEO Roundtable on Cancer, a nonprofit organization designed to increase employers commitment to the health of employees and their families. In order to receive this recognition, a company must establish programs to reduce cancer risk by discouraging tobacco use; encouraging physical activity; promoting healthy nutrition; detecting cancer at its earliest stages when outcomes may be more favorable; and providing access to quality care, including participation in cancer clinical trials. TrueBlue is the first company in the state of Washington to receive this accreditation. ManpowerGroups Hong Kong Business Receives Caring Company Award. ManpowerGroup, the third-largest staffing firm in the world, announced that ManpowerGroup Hong Kong has received the Caring Company Award from several local NGOs and universities. This is the third time the company has received the award, and in 2012 Manpower received this recognition from the following entities: the Hong Kong Council of Social Service and the Award for Outstanding Society Contribution 2012, from the Capital CEO & Elite Entrepreneur Associations; and the Excellent Brand of Human Resources Consultancy under the Hong Kong Leaders' Choice Award 2012.

New Laws/Legislation/Rulings President Obama Signs Bill on Payroll Tax Cut. President Obama has signed into law a bill that included an extension of payroll tax cuts through 2012. On Thursday, February 16th, Rep. David Camp and Sen. Max Baucus announced that Congress had reached an agreement on an extension of payroll tax cuts and benefits for the long-term Page 4

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HCS Newsunemployed through the end of 2012. According to President Obama, this bill will prevent a 2% tax increase for approx. 160 million Americans. The timing of this addition to the deficit is not unexpected given this is an election year likely not sustainable, in our opinion. Product Launches and Partnerships SuccessFactors Forms Partnership with Benefitfocus. SuccessFactors, a leading provider of SaaS-based business execution solutions that was recently acquired by SAP, has formed a partnership with Benefitfocus, a leading provider of online benefits management solutions. Through the partnership the two companies will integrate Benefitfocus HR InTouch solution for benefits management and enrollment with SuccessFactors Employee Central, the companys cloud-based core HR system of record. Financial terms of the agreement were not disclosed. Towers Watson Issued Two Patents for Financial Modeling Solutions. Towers Watson, a leading provider of human capital and financial services consulting, has been issued to patents by the United States Patent and Trademark Office (USPTO) for the companys new insurance tools. The two patents are related to Towers Watsons Replicated Stratified Sampling (RSS) financial modeling technique for the insurance industry, which is designed to dramatically reduce run times for complex insurance calculations and to help industry executives better understand risks.

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Human Capital Services March 2012

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Covered Companies Research and News*Stock prices as of 3/22/12 closing price Research Notes by Company (See full research notes for additional details.) AMN Healthcare Services, Inc. (AHS-$5.68-Neutral) Highlights from March 9, 2012, research note: Encouraging Trends in Key Nursing Segment Maintaining Neutral rating for now. Encouraged by solid trends in Nursing, driven by modestly improving environment combined with share gains driven by strong MSP business. Consolidated profitability improvements also encouraging as Medfinders integration has progressed well and AHS is able to leverage large market-leading MSP platform. Trends in Locum Tenens remained soft, leading us to slightly reduce estimates. Maintaining Neutral rating for now given our reduced estimates, but we believe valuation combined with turn in Nursing makes AHS a stock to watch. EPS of $0.04 exceeded our in-line estimate of $0.03 on +8% yoy increase in revenue to $222.1 mn, consistent with $219-223 mn guidance (adjusted to exclude discontinued ops). Encouraging quarter for Nurse & Allied (largest segment). Revenue growth above-market at +16% yoy, driven by firming environment, solid execution, and share gains driven by leading MSP platform. o Gross margin and EBITDA margins also highly encouraging -delivered 12.2% segment EBITDA margin (highest since '08) vs. RWB-est. 10.2%. Optimism tempered slightly by continued headwinds in Locum Tenens. Locum tenens revenue -7% yoy to $64.6 mn -second consecutive quarter of yoy decline on pro forma basis. Profitability improved materially. o Adj. EBITDA up $6 mn yoy on a $16 mn increase in revenue; adj. EBITDA margin +240 bps yoy to 6.3% vs. RWB-est. 5.7%. o Continues to target 10% adj. EBITDA margin over the next 35 years. Q1 revenue guidance below prior expectations. o Revenue: $224 - 228 million, consensus was $234.0 million and our estimate (which still included home healthcare) was $245.9 million. Ex-home healthcare, our estimate was $233.2 mn (and would have been roughly in line with an adjusted consensus). o No formal EPS guidance; implied EPS ~$0.06 vs. $0.05 consensus. Adjusting estimates slightly. 2012E EPS from $0.33 to $0.27 (consensus: $0.38). Cash earnings will be materially higher. o Introducing our '13 EPS estimate of $0.41 (consensus: $0.54). Net debt totals $205 million -- projected cash flow sufficient to address $28 million due this year (EPS includes multiple non-cash items). o

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/434d5330-ab8d-41e9-931d2b77abac7a28.pdf Automatic Data Processing, Inc. (ADP-$55.05-Outperform) We did not publish any research notes on ADP from Feb. 16 Mar. 23. Heidrick & Struggles International Inc. (HSII-$21.01-Neutral) Highlights from February 28, 2012, research note: Fin. Svcs. Exposure Offsetting Improving Expense Structure Maintaining Neutral rating. Encouraged by continued margin improvements, and recent cost actions could drive continued margin improvements in 2012. HSII also nearing end of ~2 years of "transition" related to elevated turnover and subsequent hiring, another positive. However near-term optimism is tempered by continued soft demand trends in parts of its financial services practice (particularly in Europe and Asia). Risk/reward balanced with reasonable valuation and improving margins offset by top-line headwinds. Q4 results generally mixed relative to formal estimates. o Revenue flat yoy at $127.2 mn vs. RWB/consensus of $132.8 mn/$133.2 mn. o Revenue was below expectations in all three geographies; Europe and APAC experienced yoy cc declines. However, there were a few encouraging elements, most notably the continued EBIT margin improvement (excharges). o EBIT roughly in line despite the top-line weakness as HSII continues to aggressively manage opex; EBIT margins of 9.3% exceeded RWB-est. 9.0%. o Restructuring actions taken in Q4 (incurred $16.3 mn charge in Q4) expected to yield an additional $20-25 mn in savings on an annualized basis. o Adj. EPS ~$0.36 (ex-restructuring and assuming "normalized" tax rate) vs. $0.28, below our $0.38 estimate/$0.40 consensus. Confirms (leading indicator) decline materially in Q4, but early Q1 more encouraging -- confirmed searches declined by Page 6

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Covered Companies Research and News 10% yoy during Q4, down sharply from +8% in Q3. However it appears confirms bounced back in Jan/Feb (likely returned to yoy growth in Feb). Q1/2012 guidance roughly in line with our prior expectations, below consensus estimates. o Revenue: $105-115 mn; our prior estimate was $112.6 mn, consensus was $120.7 mn. No guidance on Q1 margins/EPS. o 2012 revenue: $510-540 mn; our prior estimate was $537.7 mn, consensus was $543.2 mn. EBIT margin: 7-9% (management adjusts expenses/bonuses to achieve annual targets); our prior estimate was 7.5%. Encouraged by margin progress in 2H-11 and HSII positioned for continued margin expansion in 2012, though optimism tempered by macro headwinds in several key end markets. However, Europe decelerated, from +14% yoy cc to +2%, reflecting tougher headwinds in Europe (particularly banking in UK). EBITDA materially improved on a yoy basis, though came in at $1.1 mn vs. our $2.2 mn estimate. o Asia Pacific (previously reported as two segments, ANZ and Asia) actually declined on a yoy basis by 1.2% (-3% yoy cc) to $83.2 mn reflecting pullback by global banking clients, solidly below our $95.8 mn estimate. Q4 weakness persisting into Q1 -- guidance below prior expectations: o Revenue now expected to decline 4-8% (implies $201-210 mn vs cons. of $234 mn) and with EBITDA roughly breakeven (consensus was $4.37 mn). Balance sheet improved -- net cash/share = $1.06. o

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/9abb19e6-1b04-43de-b7c21cc6f82ecda0.pdf Hudson Highland Group Inc. (HHGP-$5.19-Neutral) Highlights from February 24, 2012, research note: Near-Term Headwinds Delaying Improvement Maintaining Neutral rating. While there are signs of progress on strategic initiatives, overall Q4 results/Q1 guidance were lower than modeled driven by a combination of European headwinds and softening in the banking sector globally. Reducing estimates to reflect macro/vertical-specific challenges. Longer term, HHGP continues to make progress on several key initiatives that position the company for profitable growth once near-term headwinds subside. Valuation appears balanced -- near-term challenges balanced by longer-term potential earnings power. Q4 results below guidance/consensus due to worsening cyclical headwinds in Europe and parts of Asia as quarter progressed: o Revenue: +2% yoy (+1% cc) to $222.7 million, below the guidance range of $225-240 million and below our estimate/consensus. o EBITDA up materially yoy to $6.0 million, though solidly below our in-line $7.5 million estimate (guidance was $6-9 million), due largely to the top-line shortfall. o EPS: $0.10 vs. $0.04, below our $0.13 estimate. Top-line results mixed by region -- Americas showing some signs that some strategic initiatives are starting to bear fruit. o Americas revenue +8% yoy; progress in Legal and RPO is encouraging. However EBITDA actually declined on a yoy basis, from $2.4 mn to $1.2 mn (RWB-estimate $2.4 mn).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/e99dd38f-03f8-4388-91d02c899b621c26.pdf Insperity Inc. (NSP-$29.75-Neutral) We did not publish any research notes on NSP from Feb. 16 Mar. 22. Kforce Inc. (KFRC-$14.25-Outperform) Highlights from March 19, 2012, research note: Positive View on Announced Sale of Clinical Research Division Incrementally positive following announced sale of Kforce Clinical Research. KFRC has agreed to sell KCR for $50 million cash. Announcement not surprising, in our view, given ongoing changes/developments in clinical research market and KFRC has previously disclosed that the company was pursuing all strategic alternatives with regard to this division. Maintaining Outperform rating as this business was not material to our investment thesis (though its sale removes a sentiment overhang), and our estimates are unchanged pending completion of the sale. Agrees to sell Kforce Clinical Research ("KCR") for $50 million in cash to inVentiv Health. o Plans to use proceeds to pay down debt, repurchase stock, invest in infrastructure, and/or pursue strategic acquisitions. Sale price appears to represent 1.75x EV/RWB-estimate of '11 gross profit (KFRC currently trading at 1.6x EV/'11 GP). o Vast majority (if not all) of KCR was internally built, thus tax shields on gain likely minimal. o KFRC ended 2011 with $50.2 mn in net debt and approx. $84.2 mn remaining on its share repurchase authorization.

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Covered Companies Research and News Transaction not surprising given ongoing changes/developments in clinical research market, and KFRC 10-K disclosure (reiterated at investor conference) that KFRC was "pursuing all strategic alternatives" for this division. o Segment had weighed on sentiment given client concentration (largest KCR client represented 50.5% of 2011 KCR revenue, 4.8% of total KFRC revenue) -- sale removes overhang, and thus a positive. KCR represents less than 10% of consolidated GP and not strategic to rest of business. o 2011 segment revenue/GP $106.2 mn/$28.6 mn -represents 10% of total revenue and 8% of GP. o Segment gross margin 26.9%, below company avg. of 31.2%. RWB estimates unchanged at this time, pending closing of the transaction (expected by end of March). KCR represented 7% of gross profit in our previous '12 estimates. Robert W. Baird acted as sole advisor to Kforce in this transaction. increasingly using multiple service lines, and consultant productivity has consistently increased. Confirms (key leading indicator) decelerate materially in FQ3, though have shown signs of stability recently. Confirmations (new engagements) decreased by 5% yoy during FQ3 vs. +3% yoy in FQ2. Encouragingly, Jan. confirms were up from Dec., and Feb. was relatively flat from Jan. FQ4 guidance below prior RWB/consensus estimates. o EPS: $0.24-0.30 (ex-non recurring comp. costs) vs. our inline $0.31 estimate. o Revenue: $182-196 million vs. $200.2 million consensus/$195.6 million Baird-est. Cash continues to build -- roughly $3.95/sh in net cash available to shareholders (after adjusting for deferred comp, bonuses, etc.).

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/e51ddacf-0bb5-4f1b-8bb9c5ff605aba86.pdf Highlights from February 22, 2012, research note: Perspective on CFO Transition Maintaining Neutral rating, fundamental outlook unchanged following CFO transition. Our view is that management turnover, particularly at the CFO position, is not unusual at executive search firms and our fundamental view of KFY is unchanged. Specific timing of this announcement a slight surprise, though we are confident it has nothing to do with financial/accounting controls (i.e., it is not related to a material negative financial event). Our estimates/rating/target are unchanged at time. Robert Rozek hired as new CFO -- joins KFY from Cushman & Wakefield, where he served as CFO for past ~4 years. o Prior to that, he served as CFO of Las Vegas Sands for two years, and previously spent time at Eastman Kodak and as a Partner at PwC. o Mr. Rozek's background is encouraging given strong international exposure and he worked at a firm with a large people component. Incumbent CFO decided to step down -- Mr. DiGregorio decided to leave to "pursue other interests." We are confident the transition is not related to any material negative financial event -- more likely a function of typical historic turnover pattern for this position in this industry. Not unusual occurrence -- CFO turnover level within the executive search industry as been elevated for at least 12 years. Industry has some unique challenges including personal dynamics with producing consultants (different from command-and-

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/8c29e92d-93a4-4e4c-98386081e76d91bd.pdf Korn/Ferry International (KFY-$15.45-Neutral) Highlights from March 8, 2012, research note: Difficult Environment Continues to Weigh on Results/Outlook Reducing estimates slightly, maintaining Neutral rating. FQ3 results and FQ4 guidance below consensus expectations (similar dynamic to last quarter). Company-specific execution remains solid, though persistent macro headwinds continue to weigh on top-line results. While we remain constructive on KFY long term and valuation relative to midcycle earnings power appears attractive, near term we are maintaining our Neutral rating given slightly reduced estimates and environmental challenges that may persist for some time. FQ3 results below formal expectations in most aspects. o Revenue -1% yoy cc to $186.0 mn; our estimate was $192.2 mn, consensus was $194.7 mn, and guidance was $183-203 mn. o EPS (ex-minor restructuring adjustment of ~$0.01) of $0.26 vs. $0.30, below our in-line $0.31 estimate. Company-specific execution remains solid, and KFY seems well positioned longer term. Continues to face near-term macro headwinds, but longer-term positioning improved given: KFY continues to gain traction with LTC and Futurestep, clients

Robert W. Baird & Co.

Human Capital Services March 2012

Page 8

Covered Companies Research and Newscontrol management situations). Role also requires global travel, and the industry is highly cyclically sensitive. o For perspective, Mr. Rozek will be the fifth person to serve as CFO since we started covering the firm in 2000. HSII has also had five CFOs over roughly the same time period. No change in outlook on KFY at this time -- transition has likely been in the works for some time given Mr. Rozek's credentials. Our expectation is that cyclical dynamics remain challenging in some geographies/verticals consistent with industry/macro news flow. Transition should be smooth as KFY's CEO previously served as CFO and the number-two person in the finance department has been with KFY for >13 years (well known internally/externally). SeeMore, MWW's semantic search tool, is an underappreciated and under-leveraged tool but still in its early stages of introduction. While sales cycles are long, implemented clients that we've spoken to view it as providing superior search technology. We increased our FCF estimates earlier this week -- no new estimate changes at this time. Increasing price target to $15 -- reflects 12.3x still investmentdepressed '13E EBITDA. Within historic multiple range (stock has traded in a very wide range; during last expansion ranged from 1030x) and not a stretch given high-margin, highly recognized brand, with several attractive businesses/pieces. In addition MWW has the option value inherent in exploration of strategic alternatives. While portions of the business do face challenges, multiple aspects of the business are attractively positioned (both in terms of geographies and technologies). Suitability to Speculative Risk -- our call is somewhat speculative in nature, with a higher level of risk in that it somewhat depends on some positive development from Monster's exploration of strategic alternatives. A less than fruitful outcome from the effort would likely lead to a significant short-term pullback reflecting a perceived lack of value. o

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/07d4219f-be2e-4081-8ec4b0d08960bc56.pdf ManpowerGroup (MAN-$45.47-Outperform) We did not publish any research notes on MAN from Feb. 16 Mar. 22. Monster Worldwide, Inc. (MWW-$9.49-Outperform) Highlights from March 23, 2012, research note: Upgrading to Outperform Upgrading to Outperform. After maintaining a Neutral rating since June 2006, we are upgrading MWW to Outperform as we view risk/reward from current levels as being positively skewed. We believe current valuation is still modest at roughly depressed 9.3x 2012 EBITDA and 7.7x 2013E EBITDA, while recent announcement of exploration of strategic options represents positive option value. Yesterday we attended MWW's innovation day in New York -we came away encouraged following Monster's innovation day, and we believe risk/reward is skewed more positively at current levels. While we have long noted significant competitive challenges, we've also noted Monster's many positives, including strong brand recognition, well-established No.1 or No.2 franchise with recruiters across the globe (includes a wide range of both developed and emerging markets), multiple technical innovations, and robust infrastructure with well-established global sales force. At the innovation day, MWW provided more details regarding significant investments that have depressed margins in the near to intermediate term, but should pay off longer term; includes investments behind SeeMore as well as international expansion into new markets such as China, Latin America, and Turkey. o These investments could be terminated to materially increase short-term profitability, but strategically makes sense to continue to invest in a disciplined fashion.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/06e27e91-2fa9-4e03-9ab8b967a15eb20f.pdf (Note: our $15 price target reflects 12.3x still-depressed '13E EBITDA. Within historic multiple range [stock has traded in a very wide range; during last expansion ranged from 10-30x] and not a stretch given highmargin, highly recognized brand, with several attractive businesses/pieces. Also a higher multiple than we had previously assigned given greater appreciation for scope of strategic alternatives and several encouraging aspects on the technology/innovation front that were discussed at the innovation day. In addition MWW has the option value inherent in exploration of strategic alternatives. While portions of the business do face challenges, multiple aspects of the business are attractively positioned [both in terms of geographies and technologies]. Key risks include competitive risk/technological displacement, potential for exploration of strategic alternatives to prove unfruitful, ability to attract and find quality candidates, highly cyclical business, and execution risk). Highlights from March 21, 2012, research note: Balanced Perspective Ahead of Innovation Day Providing perspective on fundamentals and potential strategic alternatives ahead of MWW's innovation day.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 9

Covered Companies Research and News Monster plans to host a technology and innovation day on 3/22 This research note provides a perspective on MWW's fundamentals and potential strategic alternatives ahead of the event. Fundamental performance/outlook mixed by geography, though MWW's portfolio includes several attractive businesses. MWW's Careers - International division (43% of total revenue) has generated 22% revenue CAGR over past seven years despite going through one of the worst downturns since the Great Depression. Within the international portfolio MWW has also developed several very attractive pieces -- e.g., MWW has No. 1 market position in Germany, its Korean business generates ~$25 million in EBITDA, and it also generates ~$14-15 million in EBITDA from India (all growing rapidly). Domestically, MWW certainly faces a wide range of competitive challenges, though in our opinion job boards are not simply going away anytime soon. Key challenge domestically is commoditization of job postings. Monster still a leading U.S. provider, though longerterm competitive and pricing pressures remain elevated. While questions/uncertainties remain, MWW has introduced several competitive responses (detailed further below). Strategic alternatives -- very wide range of possibilities. On March 1 at the Baird Business Solutions Conference MWW announced that while it is focused on the business, it is also exploring all strategic alternatives to increasing shareholder value. Our view is that this truly means the company is exploring all strategic alternatives -- while an outright sale of the company is possible, it is not the only option being pursued, and in our opinion it would be a mistake to simply assume the company is up for sale. Strategic alternatives could include (among others): sale of the company to wide range of financial/strategic/private buyers, sale of part of the company (geographies or technologies), or JV in emerging markets or technologies. 2012 EPS estimate remains $0.24 and our 2013 EPS estimate remains $0.39. o We fine-tuned our capex and non-cash comp estimates -- our 2012 FCF estimate is fine-tuned to $0.70 per share and our 2013 FCF estimate is increased to $0.98. o Please see our most recent MWW model for our full assumptions. Raising price target to $11; maintaining Neutral rating for now. We are raising our price target to $11 reflecting our higher FCF estimates and increased option value of MWW's stock following its announcement on March 1 at the Baird Business Solutions Conference that while it is focused on the business, it is also exploring all strategic alternatives to increasing shareholder value. Our price target of $11 reflects an EV/'12E EBITDA of 9x and 1.25x revenue -- reflects a blend of very recent historic range (five-year average 9.9x and 0.7x, respectively) combined with possibility of some form of strategic alternative coming to fruition (wide range of potential possibilities are likely being explored). o We plan to publish a more comprehensive perspective on MWW in the near future. o

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/8fc5bb52-5d0b-4832-87b205a05ed61221.pdf (Note: our $11 price target reflects a blend of very recent historic multiple range [five-year average 9.9x and 0.7x, respectively] combined with the possibility of some form of strategic alternative coming to fruition [wide range of potential possibilities are likely being explored]. Key risks include competitive risk/technological displacement, ability to attract and find quality candidates, highly cyclical business, and execution risk). On Assignment, Inc. (ASGN-$17.06-Outperform) Highlights from March 21, 2012, research note: Positive View on Materially Accretive Acquisition; Raising Price Target Recommend Purchase of ASGN; positive view on announced acquisition of leading IT staffing firm for $600 million. ASGN announced an agreement to acquire Apex Systems, a leading domestic IT staffing provider generating $705 million in revenue, for $600 million in a cash and stock deal. Valuation not inexpensive, but appears reasonable for rapid grower in very attractive IT staffing market. Maintaining Outperform rating, and increasing price target reflecting accretion from transaction as well as enhanced market profile. Agrees to acquire Apex Systems for $600 million (expected close end May). Page 10

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/5651cd73-66de-4e7f-916649bfdf539162.pdf Highlights from March 21, 2012, research note: Fine-Tuning Estimates Fine-tuning estimates following additional analysis and raising our price target. We continue to expect modest revenue declines in 2012, driven largely by cyclical weakness in Europe. We would also expect operating margins to decline given the top-line headwinds, though the business should continue to support 50%+ incremental EBITDA margins in a modest revenue growth environment. Maintaining Neutral rating. Fine-tuning our estimates following additional analysis.

Robert W. Baird & Co.

Human Capital Services March 2012

Covered Companies Research and NewsConsideration includes $383 million in cash and $217 million in newly issued stock. o Apex generated approximately $705 million in '11 revenue (vs. $597 million for ASGN), with adjusted EBITDA of approximately $65 million (roughly 9.2% adjusted EBITDA margin, close to ASGN's 9.9% margin). o Implied multiple of 9.2x EV/'11 EBITDA (closer to 7.7x LTM if assuming full cash tax savings). o Post-deal debt increases to $490 million (3.75x EBITDA) at an attractive price -- cash flow likely to reduce debt load quickly. Multiple Positives -- Increasing Our Target Price: Apex a high-quality, rapidly growing top-six IT staffing firm. Little overlap, differentiated positioning from ASGN's Oxford staffing works well within On Assignment structure, will make for smooth integration. Highly accretive, materially increases earnings power. While we won't adjust our formal estimates until deal closes, our '13E GAAP EPS could increase to the $1.10 to $1.30 range, and cash EPS (adjusting for tax shield) could be in the $1.55 to $1.75 range without the benefit of cost synergies (will be realized slowly). Raises ASGN's market profile materially. Combined ASGN+Apex generated 2011 revenues of $1.3 billion (75% IT/Engineering) with a 9.7% adj. EBITDA margin. Will now be one of the top firms in the rapidly growing IT staffing market. Scarcity value/increased attractiveness of ASGN in consolidating market. Industry has been consolidating (particularly IT staffing). The number of high-quality, sizable players in IT market is rapidly shrinking. We view transaction as a positive for KFRC, as well. Maintaining Outperform rating, increasing 12-month price target to $19. New price target reflects EV/potential '13E EBITDA of 10.4x (similar to private market valuations). o We did not publish any research notes on RECN from Feb. 16 Mar. 22. Robert Half International Inc. (RHI-$30.18-Outperform) We did not publish any research notes on RHI from Feb. 16 Mar. 22. SuccessFactors, Inc. (SFSF-N/A-Not Covered) Highlights from February 27, 2012, research Coverage; Acquisition by SAP Completed note: Discontinuing

We are discontinuing coverage of SFSF. The acquisition of SFSF by SAP has been completed and shares of SFSF no longer trade. Investors should no longer rely upon our last published estimates or rating when making an investment decision regarding the company. Prior to discontinuation of coverage, we were Neutral-rated. Discontinuing coverage of SFSF. We are discontinuing our coverage of SFSF due to the completion of the previously announced acquisition of the company by SAP. o Deal was originally publicly announced on December 3, tender offer dated December 16. o Tender offer was successfully completed on February 15, with 81.7 million (95.5%) of shares validly tendered. o Remaining shares canceled and converted into the right to receive the same $40/share in cash through short-form merger completed February 23, as expected. Consideration. SAP acquired all of the outstanding shares of SFSF at a fixed price of $40.00 per share in an all cash deal (total consideration = $3.9 billion). Previously Neutral-rated. Prior to discontinuation of coverage, we rated shares of SFSF Neutral. o Baird does not provide research coverage on SAP.

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/807b06dd-0a3e-4ca3-828688babe2bb6fb.pdf (Note: our new $19 price target reflects an EV/13E potential postacquisition EBITDA multiple of 10.4x, consistent with private market valuations. Key risks include highly cyclical business, secular trend toward VMS/MSP, risk of overpaying for acquisitions, integration risk, difficulties in travel nursing and locum tenens markets, and the company is currently operating with multiple back-office systems). Paychex Inc. (PAYX-$31.98-Outperform)

Please use the following link for a full copy of this research note: https://baird.bluematrix.com/docs/pdf/de60ef13-cfd9-474d-94c41726e687515a.pdf Taleo, Inc. (TLEO-$45.92-Neutral) We did not publish any research notes on TLEO from Feb. 16 Mar. 22. Towers Watson & Co. (TW-$65.14-Neutral) We did not publish any research notes on TW from Feb. 16 Mar. 22.

We did not publish any research notes on PAYX from Feb. 16 Mar. 22. Resources Connection Inc. (RECN-$12.92-Neutral) Robert W. Baird & Co. Human Capital Services March 2012 Page 11

Covered Companies Research and NewsTrueBlue, Inc. (TBI-$17.00-Outperform) We did not publish any research notes on TBI from Feb. 16 Mar. 22. Ultimate Software Group Inc. (ULTI-$72.12-Neutral) We did not publish any research notes on ULTI from Feb. 16 Mar. 22.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 12

Labor Market OverviewDomestic labor market continues to show slow, steady improvements. Several domestic labor market indicators showed signs of further in February/March, building upon a trend of slow yet steady improvements that has developed over the past 5-6 months. While global economic risks remain elevated, and clearly the situation in Europe remains difficult, most U.S. labor market data has continued to improve throughout early 2012. The ADP Employment report for February showed an increase of >200k private sector jobs the sixth straight increase of >100k private sector jobs while initial jobless claims remain near levels consistent with steady job growth, and the Monster Employment Index showed a solid increase (suggesting more companies are advertising job openings). One slight negative is the ISM Manufacturing Index showed deceleration, and several of the forward-looking subcomponents ticked down, though the indices remain firmly in expansion territory. In addition, we recently hosted nearly 20 staffing/recruiting/outsourcing companies at the Baird Business Solutions Conference and the general sense among nearly all of the business leaders was that the domestic labor market continues to steadily improve (while international trends are more varied by region, discussed in further detail below). To be clear, the pace of improvement in the U.S. still remains modest, but the steady improvements are encouraging nonetheless. Below we provide a quick summary of the key labor market data points released in February. Baird Composite Employment Index continues to show steady improvements. Given that the headline BLS numbers are subject to material revisions, and the headline employment numbers can be quite volatile, we advise focusing on the underlying trends in employment rather than a single headline number. As a result, we have created the Baird Composite Employment Index in order to incorporate a more comprehensive set of surveys and eliminate the impact of one-month volatility in the reported employment numbers, as well as the impact of temporary Census workers. Our indicator suggests the trend improved to 280,000 jobs created in February, up from +262k in January, and the strongest performance since 06. Figure 1Baird Composite Employment Index (000s) 500 300 100 (100) (300) (500) (700) (900)Feb02 May02 Aug02 Nov02 Feb03 May03 Aug03 Nov03 Feb04 May04 Aug04 Nov04 Feb05 May05 Aug05 Nov05 Feb06 May06 Aug06 Nov06 Feb07 May07 Aug07 Nov07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12Source: BLS, ADP Employment Report, Baird

February BLS Employment Report The February employment report was consistent with several other data points released recently that continue to show solid, steady improvement in the U.S. labor market. The data should be viewed as a positive data point for domestically focused staffing companies (including RHI, ASGN, TBI, and KFRC) given that the domestic staffing employment has now accelerated for two months in a row. The data should also be viewed as a positive for payroll processing companies (including ADP, PAYX, and ULTI) in that it does suggest that not only employment is picking up, but that also new business formations may be finally rebounding (based on the stronger household data).

Non-farm payrolls showed an increase of 227k jobs in February, above the Bloomberg consensus of +210k. Revisions to prior months data added 20k jobs to December, and added 41k jobs to January. On a yoy basis, the rate of growth ticked up from to +1.54% to +1.55%, and nonfarm employment growth has now remained >1% for eight consecutive months (for the first time since July 07).

Robert W. Baird & Co.

Human Capital Services March 2012

Page 13

Labor Market OverviewFigure 2

Sequential Change in NF Employment (000s)600 450 300 150 0 (150) (300) (450) (600) (750) (900)

Temp help services employment increased by 45.2k, the largest sequential increase since January 10. Temp help services employment has now increased sequentially for eight consecutive months, and by >30k for two straight months. December: +18.7k January: +32.1k February: +45.2k Temp employment yoy growth accelerated to +9.5% vs. +8.1% in January (the 25th consecutive month of yoy growth).

o o o

Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Aug 04 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Aug 11 Feb 12

The temp penetration rate also ticked up and now stands at 1.86%. In total, the economy added 339k THS jobs during 2010 (avg. +28.2k per month), 167k THS jobs in 2011 (avg. +13.9k per month), and has averaged +38.6k for the first two months of 12. The Government sector shed 6k jobs, following -1k last month. Federal employment decreased by 7k, State government employment declined by 1k jobs, and Local governments added 2k jobs. The U-6 unemployment rate, which includes all unemployed individuals plus marginally attached workers and those employed part time for economic reasons, decreased 20 bps to 14.9% (lowest level since January 09; the cyclical high was 17.4% in October 09). Figure 3

NF Employment

3-mo. MA

Source: BLS

The unemployment (UE) rate remained flat at 8.3%, in line with consensus. The decline in the UE rate was driven by a 48k increase in the number of unemployed (per the household survey), while the number of employed persons in the civilian labor force increased by 428k (+1.28 million in the past two months). The civilian labor force also increased by 476k (follows +508k last month). The average hourly workweek (another of the more forward-looking indicators) increased by 0.1 to 33.8 hours (for production/nonsupervisory employees) and remained flat at 34.5 (for all employees on NF payrolls). The average manufacturing workweek increased by 0.1 to 41.9 hours and overtime hours increased by 0.1 to 4.3.

100 75 50 25 0 (25) (50) (75) (100)Dec-08

Seq. Chg. in THS Employ. (000s)40% 30% 20% 10% 0% -10% -20% -30% -40%Dec-09 Dec-10 Aug-08 Aug-09 Aug-10 Aug-11 Dec-11 Oct-08 Oct-09 Oct-10 Jun-08 Jun-09 Jun-10 Apr-08 Apr-09 Apr-10 Feb-08 Feb-09 Feb-10 Feb-11 Apr-11 Jun-11 Oct-11 Feb-12

Seq. Chg. Employ. (000s)Source: BLS

Y/Y Chg.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 14

Labor Market OverviewFigure 4Nonfarm Employment Y/Y Growth6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Other US Economic/Labor Market Data ADP Employment Report

The ADP Employment Report showed an increase of 216k private sector jobs, in line with consensus of +215k. The ADP report has now showed private sector employment growth for 25 consecutive months, with growth >100k jobs for six straight months. Employment growth continues to be driven by small and mid-sized employers, while large businesses (>499 employees) showed slight growth in employment: Small business (1-49 ees) added 108k jobs now up 439k jobs in the past four months. o Medium businesses (50-499 ees) added 88k jobs. o Large businesses (>500 ees) added 20k jobs. Service-providing industries added 170k jobs, while goods-producing added 46k jobs. o As a reminder, ADP pays 1:6 private sector employees in the country and has very good data (arguably superior to the BLS data). Figure 6

Temporary Employment Y/Y Growth30% 20% 10% 0% -10% -20% -30% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

LaborMarketContinues toImprove400 200

Source: BLS

Figure 520.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.02005 2006 2007 2008 2009 2010 2011 2012

U.S. Unemployment Rate0 Services >499 (200) Services 50-499 Services 1-49 (400) Goods >499 Goods 50-499 (600) Goods 1-49 Total (800)

Jun -08

Jun -09

Jun -10

Feb-08

Feb-09

Feb-10

Feb-11

Jun -11

(1,000)Ap r-08 Dec-07

Aug -08

Aug -09

Aug -10

Aug -11

Dec-08

Dec-09

Dec-10

UE Rate

U5 UE Rate

U6 UE Rate

Source: BLS

Source: ADP Employment Report

Robert W. Baird & Co.

Human Capital Services March 2012

Dec-11

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Labor Market OverviewMonster Employment Index Challenger Gray and Christmas

The Monster Employment Index, which is not seasonally adjusted, increased from 133 to 143 in February. This index has increased sequentially in February for nine straight years, and the sequential increase of 7.5% appears to be slightly better than the typical seasonal change over the prior eight years the average sequential change in February is +4.3%, with a range of +1.7% to +8.8%. Yoy growth accelerated slightly, from +9.0% to +10.9%. As a reminder, the MEI measures job postings across the web, including, but not limited to, Monster.com. Figure 7

Challenger layoffs decreased slightly from 53,486 in January to 51,728 in February. However, we would note that layoffs can be volatile from month-tomonth and layoffs still remain low relative to historical levels. On a yoy basis, layoffs increased by 2% vs. +39% yoy in January, driven by an easier comparison (January through March 11 went 38k, 51k, 41k).

Figure 8

MWW U.S. Employment Index200 190 180 170 160 150 140 130 120 110 100Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-04 Feb-12

Challenger Layoff Announcements

50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50%

250,000

200,000

150,000

100,000

50,000

0May-07 May-05 May-08 May-10 May-11 May-06 May-09 Feb-07 Feb-05 Feb-06 Feb-08 Feb-09 Feb-10 Feb-11 Nov-06 Nov-05 Nov-09 Aug-06 Aug-09 Aug-07 Nov-07 Nov-08 Aug-10 Nov-10 Nov-11 Aug-05 Aug-08 Aug-11 Feb-12

US MEISource: Monster Worldwide

Y/Y Chg.Source: Challenger, Gray & Christmas

Job Cuts

3-Mo. MA

Robert W. Baird & Co.

Human Capital Services March 2012

Page 16

Labor Market OverviewISM Manufacturing Index ISM Non-Manufacturing Index

The ISM Manufacturing Index decreased from 54.1 in January to 52.4 in February, below consensus of 54.6. The new orders sub-component (a leading indicator) also decreased, from 57.6 to 54.9. The Employment subcomponent ticked down slightly from 54.3 to 53.2.

The ISM Non-Manufacturing PMI increased slightly from 56.8 in January to 57.3 in February. The new orders sub-component also increased, from 59.4 to 61.2. The employment sub-component decreased from 57.4 to 55.7.

Figure 965 60 55 50 45 40 35

Figure 10

ISM Survey - Manufacturing75 70 65 60 55 50 45 40 35

ISM Survey - Non-Manufacturing

Employment

PMI

30 251988 1989 1990 1991 1992 1993 1994 1995

PMI

Employment

30 25July-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-12 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11

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2002

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2008

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2010

2011

2012

Source: ISM

Source: ISM

Robert W. Baird & Co.

Human Capital Services March 2012

Page 17

Labor Market OverviewInitial Jobless Claims International Labor Market Data Economic conditions remain soft in most leading economies, though the rate of deterioration is likely less than the headlines would suggest. Overall, the key economic/labor market indicators were mixed in February, which is not necessarily surprising given the wide range of macro headwinds and uncertainties facing leading economies worldwide. However, while the data remained varied across regions (e.g., Germany and Australia holding up relatively well, most of Western Europe declining), we would note that the pace of decline in these declining areas appears to be more modest than the headlines would suggest (though clearly risks and uncertainties remain elevated). In addition, the data is consistent with most of the nearly 20 staffing/recruiting/outsourcing companies we recently hosted at the Baird Business Solutions conference, where the general sense was that trends are mixed across geographies/verticals, and those that are declining are not necessarily falling off a cliff. In Europe, Germany continues to do well, the UK remains soft but isnt declining as rapidly as may be expected given the headlines/austerity measures, and France is also holding up relatively well (or declining less than the headlines may suggest). Trends are also mixed in the APAC region, with Australia/New Zealand holding up well, China has shown several signs of deceleration, and the rest of Asia has shown signs of modest slowing due mainly to the banking sector. Altogether, there continue to be mixed signals in several leading global economies, and conditions remain challenging, while the pace of decline may be slightly less bad than previously anticipated. With that said, economic risks clearly remain elevated and there are a wide range of issues that still need to be resolved in Europe before we would expect to see more sustained improvements.

Initial jobless claims decreased from 366k to 351k in the week ended March 10, slightly below consensus of 355k. In the most recent week, the four-week moving was unchanged at 355,750. While jobless claims were volatile for most of 11 and into early 12, jobless claims have now remained relatively steady between 350-365k for six consecutive weeks. The four-week moving average has also been either flat or down in 13 out of the past 15 weeks.

Figure 11Initial Jobless Claims S.A. 4-wk. MA700

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Jan-02

Jan-04

Jan-06

Jan-08

Jan-10

Source: Department of Labor

Robert W. Baird & Co.

Human Capital Services March 2012

Jan-12

Page 18

Labor Market OverviewMonster European Employment Index PRISME French Temporary Staffing Data

PRISME temp staffing data continues to deteriorate, and showed a fourth consecutive yoy decline in February +5.7% in September, +2.0% in October, -1.0% in November, -3.5% in December, -7.9% in January, and -10.5% in February.

Figure 12

PRISME # of Temps in France -- y/y chg.30% 20% 10% 0% -10% -20% -30% -40% -50%Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12

The European MEI increased by 11 sequentially to 138 in February, while the rate of yoy growth accelerated from +9.5% to +10.4%. We also note that this data is not seasonally adjusted, and only goes back to January 07 (making typical seasonality difficult to discern). Three out of seven regions experienced yoy growth (vs. two last month), while all regions were either flat or up sequentially. France worsened from -0.8% to -4.4%. The UK improved from +0.8% to +4.3%. Germany decelerated from +30.1% to +28.1%. Figure 13

50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50%

MWW Employment Index y/y Chg. By Country

Source: PRISME

Source: Monster Worldwide

Robert W. Baird & Co.

Human Capital Services March 2012

Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12

US

France

Germany

UK

Page 19

Labor Market OverviewABU Market Developments Netherlands Temporary Staffing Data

The ABU-Markmonitor (Netherlands) temp staffing data showed a second consecutive yoy decline during weeks 5 8 of 2012 (roughly equivalent to February data). The rate of yoy decline remained at -5%, consistent with the prior reading for weeks 1 4 (roughly consistent with January data). Figure 13

30% 20% 10% 0% -10% -20% -30% -40%

ABU-MarkMonitor (NL Temp. Staffing Industry)

Source: Monster Worldwide

Robert W. Baird & Co.

2006-2 2006-4 2006-6 2006-8 2006-10 2006-12 2007-1 2007-3 2007-5 2007-7 2007-9 2007-11 2007-13 2008-2 2008-4 2008-6 2008-8 2008-10 2008-12 2009-1 2009-3 2009-5 2009-7 2009-9 2009-11 2009-13 2010-2 2010-4 2010-6 2010-8 2010-10 2010-12 2011-1 2011-3 2011-5 2011-7 2011-9 2011-11 2011-13 2012-2

Human Capital Services March 2012

Page 20

U.S. Valuation Metrics($ in millions except per share amounts)

Share Price Company (Symbol) HR & Outsourcing Services Automatic Data Processing (ADP) Barrett Business Services (BBSI) Insperity (NSP) Paychex (PAYX) Towers Watson & Co. (TW) $55.08 18.99 29.77 31.82 65.77 $57.10 21.10 32.38 33.71 68.18 $44.72 12.25 19.85 25.12 51.70 $25,701.7 123.5 498.1 11,121.1 4,338.3 3/20/2012 52-Week High Low Emterprise Value Revenue C2011 CY2011 $10,349.8 314.9 1,976.2 2,162.8 3,407.4 Mean: Median: HR Technology 51Job (JOBS) Concur Technologies (CNQR) Dice Holdings (DHX) Kenexa (KNXA) LinkedIn Monster Worldwide (MWW) Saba Software (SABA) Taleo (TLEO) Ultimate Software (ULTI) $57.99 59.26 9.60 30.77 91.84 9.40 11.99 45.94 72.83 $69.80 62.60 18.75 33.19 122.70 18.47 12.36 45.96 74.60 $36.62 34.30 7.02 13.96 55.98 6.34 5.07 21.44 43.28 $1,326.3 3,005.1 570.2 754.8 8,828.5 1,095.6 343.0 1,819.2 1,872.5 $206.2 369.6 179.1 282.9 522.2 1,040.1 121.3 315.4 269.2 Mean: Median: Staffing & Recruiting Services AMN Healthcare Services (AHS) CDI Corporation (CDI) Cross Country Healthcare (CCRN) CT Partners (CTP) Heidrick & Struggles International (HSII) Hudson Highland Group (HHGP) Kelly Services (KELYA) Kforce (KFRC) Korn/Ferry International (KFY) Manpower (MAN) On Assignment (ASGN) Resources Connection (RECN) Robert Half International (RHI) TrueBlue (TBI) 3/20/2012 $5.47 17.13 5.19 17.13 21.53 5.65 15.31 14.60 16.15 46.34 13.68 12.76 30.57 17.06 $9.33 17.67 8.00 17.67 28.32 $6.68 22.25 18.56 23.98 69.64 14.50 19.44 31.83 $17.99 $3.60 9.84 3.76 9.84 15.57 3.05 10.77 8.12 11.25 31.81 6.27 8.26 19.69 10.40 $451.0 305.8 189.4 305.8 199.4 145.0 579.4 555.2 511.9 3,834.0 581.3 429.8 4,067.6 550.5 $887.5 1,059.8 734.2 1,059.8 644.9 1,080.2 5,551.0 1,110.9 782.2 22,006.0 597.3 566.3 3,777.0 1,316.0 Mean: Median:

Annual Rev Gth Yr-Yr 1yr Price Performance 3mo 2mo 1mo ytd Latest Q

EPS Yr-Yr Growth

Valuation Multiples EV/2011 EV/LTM Revenue EBITDA 2000 LTM P/E 2000 20.3x 13.5 25.7 21.4 20.2 20.2x 20.3 NTM P/E 6000 19.3x 15.8 17.7 20.4 12.4 17.1x 17.7

7.4% 15.2% 13.7% 6.6% 11.3% 10.8% 11.3%

11.7% 25.7% 8.6% 0.7% 18.0% 12.9% 11.7%

2.7% (2.2% ) 17.5% 5.2% 9.8% 6.6% 5.2%

(3.0% ) 1.1% 8.3% (1.5% ) 8.7% 2.7% 1.1%

1.5% 10.5% (4.2% ) 1.1% 4.0% 2.6% 1.5%

19.0% 22.1% 1.6% 2.9% 26.3% 14.4% 19.0%

$0.76 (0.01) 0.42 0.39 0.92

22.6% (102.2% ) 41.1% 5.4% 41.5% 1.7% 22.6%

2.6x 0.4 2.2 5.3 1.3 2.4x 2.2

11.7x 23.4 6.9 12.0 6.8 12.2x 11.7

23.4% 25.1% 25.0% 28.2% 105.3% (2.0% ) 4.1% 26.1% 20.4% 28.4% 25.0%

7.9% 13.8% (28.5% ) 34.4% N/A (38.0% ) 45.9% 45.4% 36.7% 14.7% 24.1%

32.3% 12.6% 12.1% 17.2% 41.5% 20.4% 44.6% 13.5% 4.1% 22.0% 17.2%

28.8% 9.9% (1.8% ) 30.4% 24.8% 4.4% 20.0% 29.7% 5.7% 16.9% 20.0%

29.2% 4.5% 7.3% 8.0% (1.3% ) 34.5% (2.8% ) 0.5% 5.6% 9.5% 5.6%

17.7% 14.1% (33.1% ) 41.2% N/A (60.2% ) 95.9% 66.1% 49.8% 23.9% 29.5%

$0.61 (0.02) 0.15 0.02 0.07 0.09 (0.16) (0.09) 0.07

77.8% N/M 88.6% N/M 128.0% N/M N/M N/M 40.6% 83.7% 83.2%

6.4x 9.1 3.2 2.7 16.9 1.1 2.9 5.8 7.0 6.1x 5.8

17.8x 73.8 7.8 31.4 138.9 8.0 NM 61.4 70.2 51.1x 46.4

27.9x NM 19.6 NM NM 21.9 NM NM NM 23.1x 21.9

22.7x 67.2 17.0 30.0 293.3 35.3 NM 40.4 72.1 72.3x 37.9

0.0% 8.0% 9.7% 1.1% (0.1% ) 1.7% 5.3% 10.5% (0.3% ) 5.3% 33.5% 4.6% 14.3% 12.2% 7.6% 5.3%

(26.7% ) 23.2% (25.9% ) 23.2% (14.3% ) (7.4% ) (22.1% ) (10.6% ) (20.9% ) (22.1% ) 50.8% (30.6% ) 2.8% 15.8% (4.6% ) (12.5% )

19.2% 27.6% (3.9% ) 27.6% (2.3% ) 13.9% 16.9% 26.2% (0.2% ) 33.7% 24.8% 23.8% 11.0% 25.1% 17.4% 21.5%

27.8% 20.1% (13.5% ) 20.1% (3.9% ) 7.8% (11.0% ) 12.5% (11.7% ) 11.7% 20.8% 6.3% 1.6% 1.5% 6.5% 7.1%

(5.9% ) 7.3% (14.9% ) 7.3% (0.2% ) 13.5% (5.2% ) 3.1% (2.2% ) 2.7% (0.9% ) (4.7% ) 4.8% 1.5% 0.4% 0.7%

(10.9% ) (7.9% ) (38.7% ) (7.9% ) (24.9% ) (3.1% ) (18.6% ) (9.8% ) (30.1% ) (26.2% ) 67.9% (31.4% ) (0.1% ) (5.2% ) (10.5% ) (10.3% )

$0.04 (0.03) 0.02 0.01 (0.23) 0.10 0.63 0.20 0.25 0.78 0.20 0.58 0.30 0.19

(236.3% ) 7.8 (110.5% ) 7.8 N/M 124.5% 63.5% 26.9% (16.7% ) N/M N/M 52.6% 76.0% 110.7% 149.4% 63.5%

0.5x 0.3 0.4 2.6 0.4 0.2 0.1 0.5 0.7 0.2 1.0 0.8 1.1 0.4 0.6x 0.5

8.3x 7.8 9.1 7.8 4.7 6.1 6.3 9.7 4.6 5.9 10.9 11.0 13.5 8.6 8.2x 8.1

49.7x 22.2 39.9 22.2 NM 16.6 8.9 20.9 12.2 15.2 21.4 17.0 29.3 23.4 23.0x 21.4

18.6x 20.7 24.7 20.7 17.5 16.4 10.6 16.7 13.6 15.6 17.2 26.1 22.5 18.3 18.5x 17.9

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research. 1) Estimated revenue figures from various research reports and financial models distributed by research professionals.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 21

U.S. Company Profiles($ in millions except per share data and LTM/Headcount is $ in thousands)

Company (Symbol) HR & Outsourcing Services Automatic Data Processing (ADP) Barrett Business Services (BBSI) Insperity (NSP) Paychex (PAYX) Towers Watson & Co. (TW) Mean: Median: HR Technology 51Job (JOBS) Concur Technologies (CNQR) Dice Holdings (DHX) Kenexa (KNXA) LinkedIn Monster Worldwide (MWW) Saba Software (SABA) Taleo (TLEO) Ultimate Software (ULTI) Mean: Median: Staffing & Recruiting Services AMN Healthcare Services (AHS) CDI Corporation (CDI) Cross Country Healthcare (CCRN) CT Partners (CTP) Heidrick & Struggles International (HSII) Hudson Highland Group (HHGP) Kelly Services (KELYA) Kforce (KFRC) Korn/Ferry International (KFY) Manpower (MAN) On Assignment (ASGN) Resources Connection (RECN) Robert Half International (RHI) TrueBlue (TBI) Mean: Median:

Mkt. Cap. $27,020.9 189.5 527.0 11,532.2 4,577.9 $8,769.5 4,577.9 $1,652.2 3,230.8 615.4 838.6 9,406.0 1,157.1 357.1 1,935.1 1,921.4 $2,346.0 1,652.2 222.1 328.6 159.7 46.6 384.7 178.1 564.1 505.0 772.2 3,714.3 511.6 550.4 4,345.3 659.7 $924.5 508.3

Price/ Book 4.4x 1.8 1.5 7.4 1.8 3.4x 1.8 4.9x 4.5 3.0 3.6 14.9 0.9 9.9 5.0 22.3 7.7x 4.9 1.6 1.2 0.6 1.6 1.5 1.7 0.8 2.2 1.3 1.5 2.1 1.5 5.3 2.2 1.8x 1.6

2011 Rev. $9,879.5 314.9 228.8 2,084.3 3,259.5 $3,153.4 2,084.3 $206.2 331.8 179.1 282.9 522.2 1,040.1 116.7 315.4 269.2 $362.6 282.9 887.5 1,059.8 504.0 117.7 527.8 933.7 5,551.0 1,110.9 744.2 22,006.0 597.3 545.5 3,777.0 1,316.0 $2,834.2 910.6

Primary Service Offerings/Markets

2011 Rev/ Headcount Headquarters

IPO Date

Payroll & HR outsourcing and auto dealer services HR management services including staffing and PEO services Professional Employer Organization (PEO) services Payroll and HR/ASO services for small businesses Consulting services benefits, human capital, and technology Mean: Median:

210 8 120 169 263 154 169 64 277 530 144 178 195 271 237 Mean: Median: 237 216 484 1,060 94 290 348 424 694 555 338 734 532 762 363 506 Mean: Median: 513 495

Roseland, NJ Vancouver, WA Houston, TX Rochester, NY Washington, DC

Sep-61 Jun-93 Jan-97 Aug-83 Oct-00

Leading provider of HR and online employment services in mainland China Provider of business services and software solutions that automate corporate travel and expense management Provider of specialty career sites including Dice.com, JobsInTheMoney.com, eFinancialCareers.com Leading provider of talent management software solutions and recruitment process outsourcing (RPO) On-line job postings, resume database, and internet advertising Provider of learning management and performance management systems On-demand talent management. Solutions including recruitment, performance, compensation and learning management Web-based HR, payroll, and talent management solutions

Shanghai, China Redmond, WA New York, NY Wayne, PA

Oct-04 Dec-98 Jul-07 Mar-06

New York, NY Dec-96 Redwood Shores, CA Apr-00 Dublin, CA Oct-05 Weston, FL Jun-98

Comprehensive healthcare staffing and workforce solutions, including nurse, allied, and physician staffing Staffing services IT, legal, office, finance, technical, executive search and selection Travel and per diem nurse staffing, travel allied health staffing and clinical research staffing Executive search provers with focus on C-Suite, senior-level, and board searches Leadership advisory services, including executive search and leadership consulting Professional staffing and placement services Staffing services professional and commercial segments Staffing services IT, finance & accounting, health & life sciences, and medical segments Talent management solutions, including executive search, leadership consulting, and recruitment process outsourcing (RPO) Global Human Capital Services consulting, staffing, training and testing Healthcare, engineering, and IT staffing services Project-based staffing high-end F&A, IT, HR, audit, and supply chain segments Staffing services F&A, office, senior-level professionals, IT, creative, law, and audit segments Staffing services -- manual and day labor; (formerly Labor Ready)

San Diego, CA Philadelphia, PA Boca Raton, FL New York, NY Chicago, IL New York, NY Troy, MI Tampa, FL Los Angeles, CA Milwaukee, WI Calabasas, CA Costa Mesa, CA Menlo Park, CA Tacoma, WA

Nov-01 Sep-67 Oct-01 Dec-10 Apr-99 Mar-03 Jan-62 Aug-95 Feb-99 Sep-59 Sep-92 Dec-00 Mar-87 Jun-96

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 22

U.S. Recent Financial Performance($ in millions except per share amounts)

Company (Symbol) HR & Outsourcing Services Automatic Data Processing (ADP) Barrett Business Services (BBSI) Insperity (NSP) Paychex (PAYX) Towers Watson & Co. (TW)

Enterprise Value $25,701.7 123.5 498.1 11,121.1 4,338.3 Mean: Median:

Revenue Latest Q C2010 500 2000 $2,583.0 $9,879.5 84.7 314.9 495.1 228.8 545.7 2,084.3 879.7 3,259.5 $917.6 545.7 $55.9 100.4 47.4 78.2 167.7 250.0 30.4 84.8 72.7 $98.6 78.2 $222.1 268.0 124.7 31.7 127.2 222.7 1,396.3 285.6 186.0 5,484.0 161.8 145.0 973.5 350.2 $712.8 222.4 $3,153.4 2,084.3 $206.2 331.8 179.1 282.9 522.2 1,040.1 116.7 315.4 269.2 $362.6 282.9 $887.5 1,059.8 504.0 117.7 527.8 933.7 5,551.0 1,110.9 744.2 22,006.0 597.3 545.5 3,777.0 1,316.0 $2,834.2 910.6

Annual Rev Gth Yr-Yr 500 7.4% 15.2% 13.7% 6.6% 11.3% 10.8% 11.3% 23.4% 25.1% 25.0% 28.2% 105.3% (2.0% ) 4.1% 26.1% 20.4% 28.4% 25.0% 0.0% 8.0% 9.7% 1.1% (0.1% ) 1.7% 5.3% 10.5% (0.3% ) 5.3% 33.5% 4.6% 14.3% 12.2% 7.6% 5.3%

C2009 CY2009 53.3% 11.4% 17.4% 67.0% 28.6% 35.5% 28.6% 60.5% 71.1% 93.2% 66.6% 78.5% 48.8% 64.6% 66.7% 55.3% 67.2% 66.6% 26.9% 20.0% 26.5% 32.7% 28.8% 37.7% 16.3% 31.4% 30.7% 17.6% 32.7% 37.9% 36.3% 28.6% 28.9% 29.8%

Gross Margin C2010 Latest Q CY2010 500 51.3% 49.4% 16.4% 9.9% 17.4% 18.2% 68.2% 69.7% 30.8% 31.5% 36.8% 30.8% 66.5% 72.3% 92.6% 65.2% 81.6% 46.5% 65.6% 66.9% 56.4% 68.2% 66.5% 27.5% 20.9% 28.2% N/A 31.0% 37.6% 16.0% 31.5% 31.2% 17.2% 34.1% 39.8% 37.6% 26.4% 29.2% 31.0% 35.7% 31.5% 71.2% 71.1% 92.8% 58.8% 85.6% 52.4% 62.1% 67.6% 58.6% 68.9% 67.6% 28.3% 21.0% 27.8% 22.8% 33.1% 38.0% 16.3% 31.2% 32.4% 17.1% 33.1% 37.9% 39.8% 26.2% 28.9% 29.7%

EBITDA Margin C2009 C2010 Latest Q CY2009 CY2010 500 25.3% 22.4% 21.9% (2.8% ) 3.4% (2.6% ) 2.6% 3.0% 3.7% 41.7% 40.9% 44.3% 16.4% 16.0% 19.5% 16.7% 16.4% 19.6% 25.1% 40.5% 9.9% 5.5% 7.6% 10.1% 13.6% 5.3% 15.2% 10.1% 6.2% (0.8% ) 5.6% 9.3% 2.4% (2.5% ) (0.5% ) 3.9% 2.2% 1.5% 6.5% 2.4% 4.3% 2.8% 3.1% 2.6% 17.1% 16.0% 29.2% 21.0% 37.0% 6.3% 14.6% 5.4% 4.9% 12.8% 8.3% 15.5% 12.8% 4.7% 2.0% 4.9% 8.1% 7.0% 0.5% 1.7% 5.0% 12.0% 2.5% 6.1% 7.2% 5.4% 3.9% 5.1% 5.0% 17.4% 19.5% 33.9% 11.4% 43.6% 12.2% 13.3% 15.4% (13.3% ) 3.5% 12.8% 14.8% 12.8% 6.4% 3.8% 4.1% 1.4% 11.7% 2.8% 1.4% 4.2% 11.1% 3.2% 10.3% 8.2% 8.7% 4.3% 5.8% 4.3%

Quarterly EPS Yr Ago Latest Q 496 500 $0.62 $0.76 0.30 (0.01) 0.30 0.42 0.37 0.39 0.65 0.92

EPS (Fiscal Yr.) 2009 2010 FY2009 FY2010 $2.62 $2.40 (0.38) 0.71 0.65 0.86 1.48 1.32 3.42 2.03

HR Technology 51Job (JOBS) Concur Technologies (CNQR) Dice Holdings (DHX) Kenexa (KNXA) LinkedIn Monster Worldwide (MWW) Saba Software (SABA) Taleo (TLEO) Ultimate Software (ULTI)

$1,326.3 3,005.1 570.2 754.8 8,828.5 1,095.6 343.0 1,819.2 1,872.5 Mean: Median:

$0.34 0.07 0.08 (0.30) 0.03 (0.00) (0.03) (0.02) 0.05

$0.61 (0.02) 0.15 0.02 0.07 0.09 (0.16) (0.09) 0.07

$0.59 0.49 0.20 (1.38) (0.10) 0.16 (0.09) 0.04 (0.04)

$1.25 0.38 0.28 (0.25) 0.07 ($0.27) 0.09 0.01 0.11

Staffing & Recruiting Services AMN Healthcare Services (AHS) CDI Corporation (CDI) Cross Country Healthcare (CCRN) CT Partners (CTP) Heidrick & Struggles International (HSII) Hudson Highland Group (HHGP) Kelly Services (KELYA) Kforce (KFRC) Korn/Ferry International (KFY) Manpower (MAN) On Assignment (ASGN) Resources Connection (RECN) Robert Half International (RHI) TrueBlue (TBI)

$451.0 305.8 189.4 24.2 199.4 145.0 579.4 555.2 511.9 3,834.0 581.3 429.8 4,067.6 550.5 Mean: Median:

($0.03) (0.78) (0.19) 1.67 0.29 0.04 0.39 0.16 0.30 (4.30) (0.37) 0.38 0.17 0.09

$0.04 (0.03) 0.02 0.01 (0.23) 0.10 0.63 0.20 0.25 0.78 0.20 0.58 0.30 0.19

($3.75) (1.05) 0.22 5.33 (1.24) (1.65) (3.01) 0.33 (0.23) (0.12) 0.13 0.39 0.24 0.20

($1.51) (0.57) (0.09) (0.89) 0.42 (0.15) 0.71 0.51 0.12 (3.26) (0.27) (0.26) 0.44 0.46

Source: Robert W. Baird &Co., Capital IQ and company filings. All estimates are consensus estimates per Capital IQ and Bloomberg, NOT Baird estimates. Companies in bold are covered by Baird Research.

Robert W. Baird & Co.

Human Capital Services March 2012

Page 23

European Valuation MetricsCompany (Symbol) HR and Outsourcing Services Capita Group (CPI) Harvey Nash Group (HVN) Xchanging (XCH) Share Price 3/20/12 $11.86 0.97 1.54 52-Week High Low $12.24 1.49 2.02 $9.25 0.74 0.73 Enterprise Value $9,844.9 68.1 341.6 Revenue C2010 C2009 $4,469.3 785.8 1,246.7 $4,340.2 602.7 1,212.2 Mean: Median: Staffing and Recruiting Services Adecco (ADEN) Brunel International (BRNL) Groupe CRIT (CEN) Hays (HAS) Healthcare Locums (HLO) Impellam Group (IPEL) Michael Page International (MPI) Morson Group (MRN) Proffice (PROE B) Randstad Holding (RAND) Robert Walters (RWA) SThree (STHR) Synergie (SDG) USG People (USG) Annual Rev. Gth 1yr 1.7% 27.3% 8.2% 12.4% 8.2% EPS 1yr (3.2% ) (13.9% ) 24.3% 2.4% (3.2% ) Price Performance 3mo 2mo 1mo 22.8% 19.3% 46.0% 29.3% 22.8% 17.6% 7.9% 40.0% 21.8% 17.6% 14.6% (9.2% ) 17.3% 7.6% 14.6% YTD 21.2% 19.6% 52.7% 31.2% 21.2% Latest Q $0.12 0.03 0.02 Yr-Yr Growth 12.8% 0.5 NM 29.2% 29.2% EV / LTM Revenue 2.1x 0.1 0.3 0.8x 0.3 Valuation Multiples EV / LTM EV / LTM LTM GP EBITDA P/E 7.6x 0.6 3.6 3.9x 3.6 12.5x 4.3 3.1 6.6x 4.3 19.1x 8.9 NM 14.0x 14.0 C2012 P/E 14.2x 8.3 10.1 10.8x 10.1

$52.98 41.86 21.56 1.44 0.03 5.59 7.75 0.64 3.84 38.89 4.12 4.92 12.25 11.18

$70.60 44.58 30.42 2.01 1.93 6.20 8.76 1.88 5.71 54.92 5.32 6.89 28.54 20.73

$33.70 $11,403.1 $27,357.0 $21,206.7 25.10 871.4 1,206.1 1,058.3 12.64 201.1 2,069.3 1,616.0 0.90 2,267.6 5,229.3 3,969.5 0.04 222.8 319.7 270.5 2.84 247.5 1,797.7 1,686.8 4.81 2,264.2 1,511.1 1,157.8 0.56 67.6 774.3 705.3 2.66 256.5 675.6 546.5 24.96 8,413.8 21,163.9 17,771.3 2.41 258.1 766.1 485.3 2.99 509.5 836.5 856.8 9.68 303.0 1,994.3 1,359.6 5.74 1,168.1 4,416.3 4,301.2 Mean: Median:

16.6% 17.5% 18.3% 21.0% 26.9% 2.8% 26.2% 9.9% 17.8% 16.9% 37.2% 14.3% 28.6% 9.1% 18.8% 17.7%

(19.2% ) 4.1% (28.5% ) (23.4% ) (98.3% ) 24.4% (7.1% ) (60.6% ) (29.1% ) (27.2% ) (18.2% ) (28.7% ) (33.2% ) (43.9% ) (27.8% ) (27.9% )

29.1% 42.2% 38.8% 47.1% (30.1% ) 33.1% 48.0% 0.8% 21.9% 33.1% 63.6% 42.1% 17.4% 40.4% 30.5% 36.0%

11.1% 23.0% 37.5% 28.7% (40.2% ) 52.2% 24.1% (4.4% ) 0.1% 19.4% 34.8% 31.5% 12.7% 33.8% 18.9% 23.5%

4.5% 10.0% 15.4% 14.1% (36.4% ) 14.1% 16.3% 1.5% 0.4% 7.6% 15.8% 4.6% 3.6% 7.4% 5.6% 7.5%

25.8% 41.4% 44.3% 44.6% (34.0% ) 34.1% 42.7% 0.6% 22.6% 31.0% 63.3% 39.9% 3.4% 34.3% 28.1% 34.2%

$0.88 0.54 0.82 0.02 (0.08) 0.17 0.07 0.04 0.09 0.56 0.05 0.07 0.36 0.23

15.2% 77.8% 77.2% 0.0 NM 41.9% (0.2) (38.2% ) 103.1% 9.8% 34.9% 37.3% 31.7% (0.4) 24.8% 31.7%

0.4x 0.7 0.1 0.4 0.7 0.1 1.4 0.1 0.4 0.4 0.3 0.6 0.2 0.3 0.4x 0.4

2.5x 3.5 2.5 4.7 3.0 0.9 2.6 1.1 2.1 2.2 0.9 1.7 2.5 1.3 2.2x 2.3

9.2x 9.7 3.0 9.7 NM 3.8 14.6 4.5 7.1 10.4 9.0 9.8 4.5 13.4 8.4x 9.2

14.6x 17.4 10.7 15.2 NM 6.5 26.8 3.3 12.8 29.4 20.4 18.9 13.1 NM 15.8x 14.9

13.8x 14.8 9.4 17.6 N/M 5.3 30.1 3.6 10.3 12.4 29.2 19.5 9.9 13.0 14.5x 13.0

Robert W. Baird & Co.

Human Capital Services March 2012

Page 24

European Company ProfilesCompany (Symbol) HR and Outsourcing Services Capita Group (CPI) Harvey Nash Group (HVN) Xchanging (XCH) Mean: Median: Staffing and Recruiting Services Adecco (ADEN) Brunel International (BRNL) Groupe CRIT (CEN) Hays (HAS) Healthcare Locums Plc Impellam Group (IPEL) Michael Page International (MPI) Morson Group (MRN) Proffice (PROE.B) Randstad Holding (RAND) Robert Walters (RWA) SThree (STHR) Synergie (SDG) USG People (USG) Mean: Median: Mkt Cap. $7,214.8 70.5 368.6 $2,551.3 368.6 Price / Book 8.7x 0.7 1.4 3.6x 1.4 LTM Rev. Pr

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