Talx (NASDAQ:TALX)
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TALX Corporation (NASDAQ: TALX) today announced the
acquisition of Performance Assessment Network, Inc. ("pan"), a
provider of secure, electronic-based psychometric testing and
assessments, as well as comprehensive talent management services.
TALX financed the approximately $75.0 million cash purchase
through its revolving credit facility, which was expanded to $200.0
million of availability from $150.0 million.
Headquartered near Indianapolis, Indiana, pan had revenues of
approximately $25.0 million in the fiscal year ended March 31, 2006,
and is expected to be accretive to TALX's fiscal 2007 earnings.
William W. Canfield, chairman and chief executive officer of TALX,
said, "We are excited to add pan's service line to our growing
portfolio. pan's services represent a new business segment, adding to
our employment verification, unemployment tax management, and tax
credit and incentive services segments. pan has a solid reputation and
proven expertise in assisting clients with talent assessment testing
and automating the candidate hiring cycle."
Canfield added, "We believe these services should complement well
our existing front-end hiring solutions, which include paperless new
hires, I-9 form management, prior employment verifications, and tax
credit identification. This acquisition also demonstrates our ongoing
commitment to improving our clients' human resources processes through
electronic-based solutions. As part of TALX, we expect pan to have
more opportunities to expand its client base within the corporate
market, building on the strong position it already has with
significant clients in the governmental sector. We are delighted to
have pan's experienced, professional team join TALX and are excited
about the opportunities that uniting these businesses offers."
A conference call to discuss the acquisition is scheduled for
Friday, April 7, at 3:00 p.m. Central Time. To participate in this
call, dial (800) 762-6568. Other information of investor interest can
be found at www.talx.com/investor, and the company's corporate
governance website is located at www.talx.com/governance. A digitized
replay of the call will be available from 6:30 p.m. CDT on April 7,
through July 7, 2006. The replay number is (800) 475-6701 and the
access code is 825519.
TALX Corporation is a leading provider of payroll-related and
human resources services. Based in St. Louis, Missouri, with its new
facility at 11432 Lackland Road, TALX holds a leadership position in
two key areas - automated employment and income verification via The
Work Number (R) and unemployment tax management via UC eXpress (R).
The TALX suite of electronic services also includes tax credits and
incentives, paperless pay, time tracking, W-2 management, I-9
management, and paperless new hire services. The company's common
stock trades in the Nasdaq National Market under the symbol TALX. For
more information about TALX Corporation, call 314-214-7000 or access
the company's web site at www.talx.com.
Statements in this news release expressing or indicating the
beliefs and expectations of management regarding future performance
are forward-looking statements including, without limitation, expected
earnings accretion of the acquisition, and any other plans,
objectives, expectations and intentions contained in this release that
are not historical facts. These statements reflect our current views
with respect to future events and are based on assumptions and subject
to risks and uncertainties. These risks and uncertainties include,
without limitation, the preliminary nature of our estimates, which are
subject to change as we collect additional information and they are
reviewed internally and by our external auditors, as well as the risks
detailed in the company's Form 10-K for the fiscal year ended March
31, 2005, under the caption "Risk Factors" in "Part I - Item 1," as
well as (1) risks related to our ability to increase the size and
range of applications for The Work Number database and successfully
market current and future services and our dependence on third-party
providers to do so; (2) the risk that our revenues from The Work
Number may fluctuate in response to changes in certain economic
conditions such as interest rates and employment trends; (3) risks
relating to the dependence of the market for The Work Number on
mortgage documentation requirements in the secondary market and the
risk that our revenues and profitability would be significantly harmed
if those requirements were relaxed or eliminated; (4) risks associated
with our ability to prevent breaches of confidentiality or
inappropriate use of data as we perform large-scale processing of
verifications; (5) risks associated with our ability to maintain the
accuracy, privacy and confidentiality of our clients' employee data;
(6) risks associated with potential challenges regarding the
applicability of the Fair Credit Reporting Act or similar law; (7)
risks associated with changes in economic conditions or unemployment
compensation or tax credit laws; (8) risks related to Congressional
approval of work opportunity ("WOTC") and welfare to work ("WtW") tax
credits; (9) the risk to our future growth due to our dependence on
our ability to effectively integrate acquired companies and capitalize
on cross-selling opportunities; (10) risks related to the
applicability of any new privacy legislation or interpretation of
existing laws; (11) the risk of interruption of our computer network
and telephone operations, including potential slow-down or loss of
business as potential clients review our operations; and (12) risks
relating to the applicability of the SUTA Dumping Prevention Act of
2004 to our tax planning services. These risks, uncertainties and
other factors may cause our actual results, performance or
achievements to be materially different from those expressed or
implied by our forward-looking statements. We do not undertake any
obligation or plan to update these forward-looking statements, even
though our situation may change.