Revenues in the third quarter of 2000 grew 11% to $240.4 million from $217.4 million in the third quarter of 1999. EBITDA grew 5% to $22.0 million, or $0.80 per share, from $21.0 million in 1999. Earnings per share for the third quarter of 2000 was $0.42, compared to $0.43 per share for the third quarter of 1999.
The third quarter results were impacted by a number of negative factors versus prior year. For example, foreign exchange rates reduced revenues by $11.2 million and EBITDA by $1.1 million; earnings per share were also impacted by the strength of the U.S. dollar. Higher effective tax rates and interest rates also impacted comparisons to 1999.
Commenting on the third quarter results, Ed Mellett, Vice Chairman and Co-Chief Executive Officer of AHL said, We are pleased that our results have met analyst expectations and that we continue to have strong revenue growth. The fundamentals of the business remain strong as evidenced by the growth in EBITDA and our cash flow from operations of over $13.1 million year-to-date.
As previously announced on October 13, 2000, AHL sold its U.S. Industrial Staffing businesses for $22.5 million. Proceeds were used to retire debt and thus increase availability for strategic investment opportunities in AHL’s other targeted business lines. In connection with this sale, the Company also announced it would take a special one-time non-operating charge of $2.9 million in the fourth quarter of 2000.
The decision to sell the U.S. Industrial Staffing business line follows completion of a comprehensive strategic review. The Company has decided to focus development and resources on businesses where core competencies can be leveraged to realize leadership positions in profitable, growing markets. The strategic review has also resulted in an enhanced commitment to the development of our European specialized staffing business, which is primarily focused on skilled and semi-skilled workers. The emphasis will be to continue to expand this business, particularly in Germany, where AHL has built a leading position, market growth is strong, margins are attractive and competition is highly fragmented. In addition, the Company will explore alternatives to unlock the significant value of this business, which is evident by the strong multiples accorded the publicly traded staffing companies listed in Germany.
