WageWorks Returns to Profit in 2011 After Delaying IPO in August
WageWorks Inc. (WAGE), the provider of human-resources services for 42 Fortune 100 companies, returned to profitability last year, according to an amended filing for an initial public offering that it postponed in August.
Net income attributable to common stockholders was $27 million in 2011, compared with a loss of $24 million a year earlier, the San Mateo, California-based company said today in a filing with the U.S. Securities and Exchange Commission.
WageWorks updated its financial results in the first amendment to its IPO filing since Aug. 4, when the company lowered the planned price range for the offering. It postponed the IPO the following week amid market turmoil stemming from a U.S. credit-rating downgrade and Europe’s spreading sovereign- debt crisis. The sale, seeking as much as $52 million, would have valued WageWorks at as much as $225 million.
The company didn’t address the timing of its IPO or provide updated information on a price range. In August, WageWorks said it planned to offer about 5.8 million shares for $8 to $9 each. The previous month, it said it would offer those shares for $12 to $14 each. WageWorks first filed for a $75 million IPO last April.
WageWorks, which competes with U.S. health insurer Aetna Inc., counts Ford Motor Co., Morgan Stanley and the State of New York among its clients, according to the filing. Annual sales increased 18 percent to $136 million in 2011 from a year earlier, the filing shows.
Credit Suisse Group AG (CSGN) and William Blair & Co. are leading the offering. WageWorks plans to list on the New York Stock Exchange under the symbol WAGE.
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