Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.20.1
Segment Data
3 Months Ended
Feb. 02, 2020
Segment Reporting [Abstract]  
Segment Data
Segment Data

We report our segment data in accordance with the provisions of ASC 280, Segment Reporting, aligning with the way the Company evaluates its business performance and manages its operations. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) North American MSP. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other.

In June 2019, the Company exited its customer care solutions business, which was reported as a part of the Corporate and Other category. This exit allows the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. The Company’s other non-reportable businesses will continue to be combined and disclosed with corporate services under the category Corporate and Other.

Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, restructuring and severance costs, and impairment charges. The Company allocates to the segments all operating costs except for costs not directly related to the operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and are not used by management to measure segment performance.

Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands):
 
Three Months Ended February 2, 2020
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other
 
Eliminations
Net revenue
$
217,766

 
$
182,395

 
$
26,223

 
$
9,369

 
$
203

 
$
(424
)
Cost of services
186,339

 
157,394

 
22,030

 
7,255

 
84

 
(424
)
Gross margin
31,427

 
25,001

 
4,193

 
2,114

 
119

 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
39,497

 
24,809

 
3,819

 
1,360

 
9,509

 

Restructuring and severance costs
1,246

 
82

 

 

 
1,164

 

Impairment charge
11

 
11

 

 

 

 

Operating income (loss)
(9,327
)

99


374

 
754

 
(10,554
)
 

Other income (expense), net
(1,286
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
195

 
 
 
 
 
 
 
 
 
 
Net loss
$
(10,808
)
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended January 27, 2019
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
253,436

 
$
211,848

 
$
26,266

 
$
8,217

 
$
7,846

 
$
(741
)
Cost of services
215,737

 
181,685

 
22,138

 
5,918

 
6,737

 
(741
)
Gross margin
37,699

 
30,163

 
4,128

 
2,299

 
1,109

 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
39,810

 
26,278

 
3,742

 
1,307

 
8,483

 

Restructuring and severance costs
59

 
(2
)
 
82

 
27

 
(48
)
 

Operating income (loss)
(2,170
)
 
3,887

 
304

 
965

 
(7,326
)
 

Other income (expense), net
(772
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
273

 
 
 
 
 
 
 
 
 
 
Net loss
$
(3,215
)
 
 
 
 
 
 
 
 
 
 


(1) Revenues are primarily derived from Volt Customer Care Solutions business through June 7, 2019.
(2) The majority of intersegment sales results from North American Staffing segment providing resources to Volt Customer Care Solutions business.