Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.20.2
Segment Data
9 Months Ended
Aug. 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 August 2, 2020
Total North American Staffing  International Staffing North American MSP Corporate and Other Eliminations
Net revenue $ 185,941  $ 154,711  $ 21,749  $ 9,436  $ 149  $ (104)
Cost of services 155,983  130,829  17,805  7,375  78  (104)
Gross margin 29,958  23,882  3,944  2,061  71   
Selling, administrative and other operating costs 31,245  19,053  3,312  1,117  7,763   
Restructuring and severance costs 546  335  81    130   
Impairment charges 2,384  1,803      581   
Operating income (loss) (4,217) 2,691  551  944  (8,403)  
Other income (expense), net (64)
Income tax provision 556 
Net loss $ (4,837)
Three Months Ended July 28, 2019
Total North American Staffing  International Staffing North American MSP Corporate and Other (1) Eliminations (2)
Net revenue $ 233,176  $ 193,641  $ 28,728  $ 9,555  $ 1,856  $ (604)
Cost of services 197,528  164,809  24,181  7,053  2,089  (604)
Gross margin 35,648  28,832  4,547  2,502  (233)  
Selling, administrative and other operating costs 38,395  24,346  4,023  1,382  8,644   
Restructuring and severance costs 2,017  121  182    1,714   
Impairment charge 79        79   
Operating income (loss) (4,843) 4,365  342  1,120  (10,670)  
Other income (expense), net (1,049)
Income tax provision 165 
Net loss $ (6,057)
Nine Months Ended August 2, 2020
Total North American Staffing International Staffing North American MSP Corporate and Other Eliminations
Net revenue $ 610,982  $ 510,492  $ 72,275  $ 28,550  $ 539  $ (874)
Cost of services 517,360  435,646  60,117  22,212  259  (874)
Gross margin 93,622  74,846  12,158  6,338  280   
Selling, administrative and other operating costs 106,931  66,905  10,845  4,149  25,032   
Restructuring and severance costs 2,203  761  192    1,250   
Impairment charges 2,395  1,814      581   
Operating income (loss) (17,907) 5,366  1,121  2,189  (26,583)  
Other income (expense), net (2,389)
Income tax provision 774 
Net loss $ (21,070)
Nine Months Ended July 28, 2019
Total North American Staffing  International Staffing North American MSP Corporate and Other (1) Eliminations (2)
Net revenue $ 738,682  $ 614,360  $ 83,803  $ 27,351  $ 15,133  $ (1,965)
Cost of services 629,078  526,172  70,414  20,157  14,300  (1,965)
Gross margin 109,604  88,188  13,389  7,194  833   
Selling, administrative and other operating costs 117,144  77,063  11,659  3,941  24,481   
Restructuring and severance costs 2,800  329  456  68  1,947   
Impairment charges 426        426   
Operating income (loss) (10,766) 10,796  1,274  3,185  (26,021)  
Other income (expense), net (3,000)
Income tax provision 671 
Net loss $ (14,437)

(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.