Resolve Staffing, Inc, reported revenues for the quarter ended March 31, 2007. Revenue for the first quarter of 2007 totaled $61.8m, an increase of over $49m, or 390% over the first quarter of 2006. Revenue of approximately $62m represents record first quarter sales for Resolve, a quarter which is typically the slowest for the staffing industry. Non-GAAP revenues for the quarter ended March 31, 2007 were $121,939,370.
Due to the nature of the merger with ELS, it is difficult to analyze profitability for the first quarter of 2007. Resolve’s first quarter net loss was $270,769. Resolve still had some carry over expenses associated with the merger, as well as two additional acquisitions. For example, legal and accounting fees, which include additional work pertaining to the merger, totaled $250,000 for the first quarter of 2007. Non-cash items, such as depreciation, amortization of non-competes, and changes in allowance for doubtful account totaled $571,694 in 2007. Interest expense of $600,240 was also recorded, bringing Resolve's EBITDA to $665,701 for the first quarter of 2007.
Company executrives had previously stated that we were on a run rate of $240m in sales for 2007 and first quarter results reflect that figure.