Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.20.1
Segment Data
6 Months Ended
May 03, 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 May 3, 2020
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other
 
Eliminations
Net revenue
$
207,275

 
$
173,386

 
$
24,303

 
$
9,745

 
$
187

 
$
(346
)
Cost of services
175,038

 
147,423

 
20,282

 
7,582

 
97

 
(346
)
Gross margin
32,237

 
25,963

 
4,021

 
2,163

 
90

 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
36,189

 
23,043

 
3,714

 
1,672

 
7,760

 

Restructuring and severance costs
411

 
344

 
111

 

 
(44
)
 

Operating income (loss)
(4,363
)

2,576


196

 
491

 
(7,626
)
 

Other income (expense), net
(1,039
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
23

 
 
 
 
 
 
 
 
 
 
Net loss
$
(5,425
)
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended April 28, 2019
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
252,070

 
$
208,871

 
$
28,809

 
$
9,579

 
$
5,431

 
$
(620
)
Cost of services
215,813

 
179,678

 
24,095

 
7,186

 
5,474

 
(620
)
Gross margin
36,257

 
29,193

 
4,714

 
2,393

 
(43
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
38,939

 
26,439

 
3,894

 
1,252

 
7,354

 

Restructuring and severance costs
724

 
210

 
192

 
41

 
281

 

Impairment charge
347

 

 

 

 
347

 

Operating income (loss)
(3,753
)
 
2,544

 
628

 
1,100

 
(8,025
)
 

Other income (expense), net
(1,179
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
233

 
 
 
 
 
 
 
 
 
 
Net loss
$
(5,165
)
 
 
 
 
 
 
 
 
 
 

 
Six Months Ended May 3, 2020
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other
 
Eliminations
Net revenue
$
425,041

 
$
355,781

 
$
50,526

 
$
19,114

 
$
390

 
$
(770
)
Cost of services
361,377

 
304,817

 
42,312

 
14,837

 
181

 
(770
)
Gross margin
63,664

 
50,964

 
8,214

 
4,277

 
209

 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
75,686

 
47,852

 
7,533

 
3,032

 
17,269

 

Restructuring and severance costs
1,657

 
426

 
111

 

 
1,120

 

Impairment charge
11

 
11

 

 

 

 

Operating income (loss)
(13,690
)
 
2,675

 
570

 
1,245

 
(18,180
)
 

Other income (expense), net
(2,325
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
218

 
 
 
 
 
 
 
 
 
 
Net loss
$
(16,233
)
 
 
 
 
 
 
 
 
 
 

 
Six Months Ended April 28, 2019
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
505,506

 
$
420,719

 
$
55,075

 
$
17,796

 
$
13,277

 
$
(1,361
)
Cost of services
431,550

 
361,363

 
46,233

 
13,104

 
12,211

 
(1,361
)
Gross margin
73,956

 
59,356

 
8,842

 
4,692

 
1,066

 

 
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
78,749

 
52,717

 
7,636

 
2,559

 
15,837

 

Restructuring and severance costs
783

 
208

 
274

 
68

 
233

 

Impairment charge
347

 

 

 

 
347

 

Operating income (loss)
(5,923
)
 
6,431

 
932

 
2,065

 
(15,351
)
 

Other income (expense), net
(1,951
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
506

 
 
 
 
 
 
 
 
 
 
Net loss
$
(8,380
)
 
 
 
 
 
 
 
 
 
 

(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.