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A Wall Street Transcript Interview with Kevin D. McVeigh, a Managing Director and Senior Business and Computer Services Analyst at Macquarie Group Limited: Continued Momentum in Staffing Space Expected for 2014

67 WALL STREET, New York - January 22, 2014 - The Wall Street Transcript has just published its Staffing & Outsourcing Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Growth in Temporary Staffing Demand - Secular Trend Toward Temporary Staffing - Strong Demand for IT Staffing - BPO Market Trends - Healthy Demand in BPO Space - Cost-Cutting Measures - Steady Growth in Labor Market - Upside Potential in Staffing Sector

Companies include: Manpower Inc. (MAN), Robert Half International Inc. (RHI), Kforce Inc. (KFRC), Mastercard Incorporated (MA), Visa, Inc. (V), Iron Mountain Inc. (IRM), Corrections Corp. of America (CXW), Geo Group Inc. (GEO), Western Union Co. (WU), On Assignment Inc. (ASGN), Resources Connection Inc. (RECN)

In the following excerpt from the Staffing & Outsourcing Services Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Let's refresh our readers' memories by introducing yourself with an overview of your coverage universe.

Mr. McVeigh: Sure, and thanks for having us back again. I'm a Managing Director and the Senior Business and Computer Services Analyst at Macquarie Group. We cover a diverse group, from staffing companies. We will be speaking today about Manpower (MAN), Robert Half (RHI), Kforce (KFRC); two of the payment processors in terms of MasterCard (MA) and Visa (V); as well as some of the more diversified names like Iron Mountain (IRM), Corrections Corp. (CXW) and GEO Group (GEO). So this is a diverse group, but one that we enjoy covering given the chance to help investors.

TWST: What's the overall market sentiment for the staffing space right now, and what's driving that?

Mr. McVeigh: The market enjoyed a great year in 2013, and we expect continued momentum in 2014, albeit a little more selective given the relative outperformance in 2013. We don't expect the same level of participation in 2013, but there are a lot of names we are very, very constructive on, particularly some of the staffing names. Ideas that we have discussed in the past include Robert Half and Kforce; those are two names that we continue to be very, very positive on given the potential for upside as a result of the continued secular shift toward temporary help.

Since last we spoke, we have reached new highs in penetration, which we define as temporary help as a percentage of nonfarm payrolls, and we are very comfortable with that theme, particularly given what we see as a likely seven- or eight-year upcycle. With a lot more room left in this cycle, we are seeing very good secular growth as well as a constructive backdrop to create incremental revenue and gross margins.

TWST: I was going to ask you about the current economic environment and how that's affecting the companies. Is there anything you would add in terms of that backdrop?

Mr. McVeigh: It has been interesting, because what we've continued to see is a really, really good environment for temporary help...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.