Gevity HR, Inc. (Nasdaq: GVHR) CEO Michael Lavington said 2008 will be a year of “rebuilding and refocus” for the human resources outsourcing company. The chief executive made the comments during a midday conference call.

“Going forward, Gevity will be run on the basis of profitable contribution and cash flow and not on work-site employee growth,” Lavington said. “We will not be chasing high-risk business and we plan to clean up our book of unprofitable clients.”

On Oct. 19, Gevity reported its former CEO Erik Vonk stepped down and promoted Lavington, the COO, to take over both positions. Vonk attempted to move the company into staffing services without workers’ compensation and health insurance, in hopes of achieving a simpler business model. However, Vonk’s plan flopped as several important clients left and Gevity lost significant business.

The company plans to focus more on its professional employer organization, or PEO, segment. PEOs handle payroll, tax filings, worker compensation, labor compliance and other human resources-related tasks for businesses.
 
Before the opening, the Bradenton, Fla.-based company reported third-quarter revenue of $146.5 million, 4% below analyst estimates of $153 million and down 9% from $160.6 million a year earlier.

The firm’s quarterly profit fell 74% to $2.5 million, or $0.10 per share, missing Wall Street projections of $0.13 per share and compared with $9.6 million, or $0.35 per share, during the same period of 2006.

“We’ve had a disappointing year,” Lavington said. “A contributor has been the worsening economic conditions. Of all our regions, Florida has been the worst hit. We have also lost some of our larger clients in certain industries who have gone out of business.”

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