Volt Information Sciences, Inc. Reports Third Quarter Fiscal 2020 Financial Results

ORANGE, Calif.--(BUSINESS WIRE)-- Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN: VOLT) a global provider of staffing services, today announced financial results for the third fiscal quarter ended August 2, 2020.

Third Quarter Highlighted Results

  • Revenue was $185.9 million, compared to $233.2 million in the prior-year quarter; Adjusted Revenue* decreased 18.4%.
  • Gross margin was 16.1%, an 80-basis point improvement compared to the prior-year quarter.
  • GAAP operating loss was $4.2 million, compared to $4.8 million in the prior-year quarter; excluding restructuring and impairment charges, operating loss would have been $1.3 million compared to $2.7 million in the prior-year quarter.
  • Adjusted EBITDA* was $1.0 million, a $2.2 million improvement compared to the prior-year quarter.

*Adjusted Revenue, Adjusted Operating Loss and Adjusted EBITDA are Non-GAAP measures described and defined below.

“I remain incredibly proud of our Volt colleagues, all of whom continue to confidently navigate the prolonged economic and health uncertainty,” said Linda Perneau, President and Chief Executive Officer. “Their efforts allowed us to safely return thousands of employees back to work, enabled multiple clients to resume full operations, and secured new business wins, partially offsetting pandemic related declines. Throughout the third quarter we posted month-over-month improvements in Adjusted Revenue and gross margin. We reduced SG&A expenses and posted positive Adjusted EBITDA of $1.0 million for the quarter. We believe these trends will continue in the fourth quarter as we remain focused on our growth and profitability initiatives.”

Third Quarter Results

North American Staffing revenue for the quarter was $154.7 million, compared to $193.6 million in the third quarter of fiscal 2019. Adjusted Revenue, which is a Non-GAAP measure, for this segment decreased approximately 18.6 percent year over year. The decrease is primarily attributable to client facility closures and reduced demand associated with COVID-19, partially offset by business wins with new and existing clients.

International Staffing revenue was $21.7 million, compared to $28.7 million in the third quarter of fiscal 2019. Adjusted Revenue, for this segment decreased 23.9 percent year over year. The decrease is primarily due to reduced work orders in the U.K.

North American MSP revenue was $9.4 million, compared to $9.6 million in the third quarter of fiscal 2019. The decrease is primarily attributable to a decline in managed service programs, partially offset by increased payroll revenue.

Gross margin for the quarter was 16.1 percent of revenue, compared to 15.3 percent of revenue in the third quarter of fiscal 2019. The change is attributable to a credit related to our workers’ compensation versus the prior year, and a decrease in payroll tax rates.

SG&A expense for the third quarter was $31.2 million, a $7.2 million reduction from the prior-year quarter. The decrease is primarily due to substantial cost reductions taken throughout the year and the impact of working remotely as well as COVID-19 restrictions on travel.

Volt incurred impairment and restructuring charges of $2.9 million in the third quarter as a part of its ongoing real estate rationalization and cost savings initiatives. These charges were primarily the result of consolidating and exiting certain leased office locations throughout North America based on where Volt can be fully operational and successfully support our clients and business operations remotely.

Adjusted EBITDA, which is a Non-GAAP measure, for the third quarter of fiscal 2020 was $1.0 million, as compared to a loss of $1.2 million in the prior-year quarter.

Business Outlook

Due to the continued uncertainty surrounding the timing of reopening specific geographies, the Company is not providing Adjusted Revenue guidance for the fourth quarter of fiscal 2020.

Earnings Conference Call and Webcast

Volt Information Sciences, Inc. will conduct a conference call on Thursday, September 10, 2020, at 5:00 PM ET, to review the financial results for the third fiscal quarter ended August 2, 2020. Investors interested in participating on the live call can dial 1-877-407-9039 within the U.S. or 1-201-689-8470 from abroad, and reference conference ID 13709427. The conference call, which may include forward-looking statements, is also being webcast and will be available via the investor relations section of the Company’s website at www.volt.com. A replay of the webcast will be archived on Volt’s investor relations website for 90 days.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to a number of known and unknown risks. Such risks include, among others, general economic, competitive and other business conditions (including the potential impact of the strain of coronavirus known as COVID-19 on our operations as well as the operations of our customers), the degree and timing of customer utilization and renewal rate for contracts with the Company, and the degree of success of business improvement initiatives that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Information concerning these and other factors that could cause actual results to differ materially from those in the forward-looking statements are contained in the “Risk Factors” and other sections of the Company reports filed with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Note Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain Non-GAAP financial information, including Adjusted Revenue, Adjusted Operating Income (Loss) and Adjusted EBITDA, which include adjustments to our GAAP financial results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies.

The Company believes that the presentation of Non-GAAP measures, including on a constant currency basis, eliminating the impact of businesses sold or exited, the extra operating week in the fourth quarter of fiscal 2019 and special items provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations because they permit evaluation of the results of the Company without the effect of currency fluctuations, special items or the impact of businesses sold or exited that management believes make it more difficult to understand and evaluate the Company’s results of operations. Special items include impairments, restructuring and severance as well as certain income or expenses which the Company does not consider indicative of the current and future period performance and are more fully disclosed in the tables.

Adjusted Revenue is defined as revenue excluding businesses exited, the effect of foreign currency translation and the extra operating week in the fourth quarter of fiscal 2019. The Company has also migrated certain clients from a traditional staffing model to a managed service model, resulting in the Company now managing a greater percentage of such clients’ business under its North American MSP. This shift provides increased opportunity for the Company with the relevant clients. However, due to the structure of MSP arrangements, revenue is recognized on a net basis, thereby reducing revenues on a comparative period basis. Beginning in the first quarter of 2020, the Company includes such delivery model shifts within the Adjusted Revenue measurement, as it provides a more comparable basis for evaluating performance results from period to period and reflects the method used by management to evaluate performance. A reconciliation is shown in the tables at the end of this press release.

Adjusted EBITDA is defined as earnings or loss before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation expense as well as the special items described above.

Adjusted EBITDA is a performance measure rather than a cash flow measure. The Company believes the presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management.

Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results of operations and operating cash flows as reported under GAAP. For example, Adjusted EBITDA does not reflect capital expenditures or contractual commitments; does not reflect changes in, or cash requirements for, the Company’s working capital needs; does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and does not reflect cash required to pay income taxes.

Adjusted Operating Income (Loss) is defined as operating income (loss) excluding businesses exited and the extra operating week in the fourth quarter of fiscal 2019.

The Company believes the presentation of Adjusted Operating Income (Loss) is relevant and useful for investors because it provides a more comparable basis to evaluate performance results and analyze trends from period to period in a manner similar to the method used by management.

The Company’s computation of Adjusted Revenue, Adjusted EBITDA and Adjusted Operating Income (Loss) may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate these measures in the same fashion.

About Volt Information Sciences, Inc.

Volt Information Sciences, Inc. is a global provider of staffing services (traditional time and materials-based as well as project-based). Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services, and managed staffing services programs supporting primarily administrative, technical, information technology, light-industrial and engineering positions. Our managed staffing programs involve managing the procurement and on-boarding of contingent workers from multiple providers. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation, and utilities. For more information, visit www.volt.com

Investor Relations Contacts:
Volt Information Sciences, Inc.
voltinvest@volt.com

Joe Noyons
Three Part Advisors
jnoyons@threepa.com
817-778-8424

Financial Tables Follow

 

 
 
 
Results of Operations 
(in thousands, except per share data)

Three Months Ended

 

Nine Months Ended 

August 2, 2020

 

May 3, 2020

 

July 28, 2019

 

August 2, 2020

 

July 28, 2019

 
Net revenue 

 $

                185,941

 

 

 $

                207,275

 

 

 $

                233,176

 

 $

                610,982

 

 

 $

                738,682

 

Cost of services

 

                   155,983

 

 

                   175,038

 

 

                   197,528

 

 

                   517,360

 

 

                   629,078

 

Gross margin 

 

                     29,958

 

 

 

                     32,237

 

 

 

                     35,648

 

 

                     93,622

 

 

 

                   109,604

 

                 
Selling, administrative and other operating costs

 

                     31,245

 

 

 

                     36,189

 

 

 

                     38,395

 

 

                   106,931

 

 

 

                   117,144

 

Restructuring and severance costs

 

                          546

 

 

                          411

 

 

                       2,017

 

 

                       2,203

 

 

                       2,800

 

Impairment charges

 

                       2,384

 

 

 

                            -

 

 

 

                            79

 

 

                       2,395

 

 

 

                          426

 

Operating loss

 

                     (4,217

)

 

 

                     (4,363

)

 

 

                     (4,843

)

 

                   (17,907

)

 

 

                   (10,766

)

                 
Interest income (expense), net

 

                        (467

)

 

 

                        (621

)

 

 

                        (714

)

 

                     (1,788

)

 

 

                     (2,159

)

Foreign exchange gain (loss), net

 

                          571

 

 

 

                        (266

)

 

 

                        (151

)

 

                          (23

)

 

 

                        (252

)

Other income (expense), net

 

                        (168

)

 

 

                        (152

)

 

 

                        (184

)

 

                        (578

)

 

 

                        (589

)

Loss before income taxes

 

                     (4,281

)

 

 

                     (5,402

)

 

 

                     (5,892

)

 

                   (20,296

)

 

 

                   (13,766

)

Income tax provision 

 

                          556

 

 

 

                            23

 

 

 

                          165

 

 

                          774

 

 

 

                          671

 

Net loss

 $

                  (4,837

)

 

 $

                  (5,425

)

 

 $

                  (6,057

)

 $

                (21,070

)

 

 $

                (14,437

)

                 
Per share data:                
Basic:                
Net loss

 $

                    (0.22

)

 

 $

                    (0.25

)

 

 $

                    (0.29

)

 $

                    (0.98

)

 

 $

                    (0.68

)

Weighted average number of shares

 

                     21,589

 

 

 

                     21,416

 

 

 

                     21,157

 

 

                     21,474

 

 

 

                     21,106

 

                 
Diluted:                
Net loss

 $

                    (0.22

)

 

 $

                    (0.25

)

 

 $

                    (0.29

)

 $

                    (0.98

)

 

 $

                    (0.68

)

Weighted average number of shares

 

                     21,589

 

 

 

                     21,416

 

 

 

                     21,157

 

 

                     21,474

 

 

 

                     21,106

 

                 
Segment data:                
                 
Net revenue:                
North American Staffing 

 $

                154,711

 

 

 $

                173,386

 

 

 $

                193,641

 

 $

                510,492

 

 

 $

                614,360

 

International Staffing 

 

                     21,749

 

 

 

                     24,303

 

 

 

                     28,728

 

 

                     72,275

 

 

 

                     83,803

 

North American MSP

 

                       9,436

 

 

 

                       9,745

 

 

 

                       9,555

 

 

                     28,550

 

 

 

                     27,351

 

Corporate and Other 

 

                          149

 

 

 

                          187

 

 

 

                       1,856

 

 

                          539

 

 

 

                     15,133

 

Eliminations

 

                        (104

)

 

 

                        (346

)

 

 

                        (604

)

 

                        (874

)

 

 

                     (1,965

)

Net revenue

 $

                185,941

 

 

 $

                207,275

 

 

 $

                233,176

 

 $

                610,982

 

 

 $

                738,682

 

                 
Operating income (loss):                
North American Staffing 

 $

                    2,691

 

 

 $

                    2,576

 

 

 $

                    4,365

 

 $

                    5,366

 

 

 $

                  10,796

 

International Staffing 

 

                          551

 

 

 

                          196

 

 

 

                          342

 

 

                       1,121

 

 

 

                       1,274

 

North American MSP

 

                          944

 

 

 

                          491

 

 

 

                       1,120

 

 

                       2,189

 

 

 

                       3,185

 

Corporate and Other 

 

                     (8,403

)

 

 

                     (7,626

)

 

 

                   (10,670

)

 

                   (26,583

)

 

 

                   (26,021

)

Operating loss

 $

                  (4,217

)

 

 $

                  (4,363

)

 

 $

                  (4,843

)

 $

                (17,907

)

 

 $

                (10,766

)

                 
Work days

 

                            63

 

 

 

                            65

 

 

 

                            63

 

 

                          187

 

 

 

                          187

 

 
 
 
 
Condensed Consolidated Statements of Cash Flows
(in thousands)

Nine Months ended

August 2, 2020

 

July 28, 2019

 
Cash, cash equivalents and restricted cash beginning of the period

 $

              38,444

 

 

 $

              36,544

 

 
Cash used in all other operating activities

 

                  (4,821

)

 

 

                (10,561

)

Changes in operating assets and liabilities

 

                 17,903

 

 

                 20,722

 

Net cash provided by operating activities

 

                 13,082

 

 

 

                 10,161

 

 
Purchases of property, equipment, and software

 

                  (3,925

)

 

 

                  (6,305

)

Net cash provided by (used in) all other investing activities

 

                      589

 

 

 

                        78

 

Net cash used in investing activities

 

                  (3,336

)

 

 

                  (6,227

)

       
Net draw-down of borrowings

 

                   5,000

 

 

 

                   5,000

 

Debt issuance costs

 

                     (331

)

 

                     (621

)

Net cash used in all other financing activities

 

                       (74

)

 

 

                     (316

)

Net cash provided by financing activities

 

                   4,595

 

 

                   4,063

 

       
Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

                     (463

)

 

                     (633

)

       
Net increase in cash, cash equivalents and restricted cash

 

                 13,878

 

 

                   7,364

 

       
Cash, cash equivalents and restricted cash end of the period

 $

              52,322

 

 $

              43,908

 

       
Cash paid during the period:
Interest 

 $

                1,858

 

 

 $

                2,367

 

Income taxes

 $

                1,445

 

 $

                1,174

 

       
Reconciliation of cash, cash equivalents and restricted cash end of the period:
Current Assets:      
Cash and cash equivalents 

 $

              30,928

 

 $

              36,031

 

Restricted cash included in Restricted cash and short term investments

 

                 21,394

 

 

 

                   7,877

 

Cash, cash equivalents and restricted cash, at end of period

 $

              52,322

 

 

 $

              43,908

 

 
 
 
 
Condensed Consolidated Balance Sheets
(in thousands, except share amounts) 
 

August 2, 2020

November 3, 2019

ASSETS      
CURRENT ASSETS:
Cash and cash equivalents

 $

             30,928

 

 

 $

               28,672

 

Restricted cash and short-term investments

 

                24,285

 

 

                  12,794

 

Trade accounts receivable, net of allowances of $235 and $117, respectively

 

              108,395

 

 

 

                135,950

 

Other current assets

 

                  7,067

 

 

                    7,252

 

TOTAL CURRENT ASSETS

 

              170,675

 

 

 

                184,668

 

Property, equipment and software, net

 

                23,706

 

 

                  25,890

 

Right of use assets - operating leases

 

                40,146

 

 

 

                          -

 

Other assets, excluding current portion

 

                  6,802

 

 

                    7,446

 

TOTAL ASSETS

 $

           241,329

 

 

 $

             218,004

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY      
CURRENT LIABILITIES:
Accrued compensation

 $

             16,412

 

 

 $

               21,507

 

Accounts payable

 

                27,010

 

 

                  36,341

 

Accrued taxes other than income taxes

 

                10,292

 

 

 

                  11,244

 

Accrued insurance and other

 

                19,077

 

 

                  24,654

 

Operating lease liabilities

 

                  7,552

 

 

 

                          -

 

Income taxes payable

 

                     955

 

 

                    1,570

 

TOTAL CURRENT LIABILITIES

 

                81,298

 

 

 

                  95,316

 

Accrued payroll taxes and other, excluding current portion

 

                21,099

 

 

                  12,029

 

Operating lease liabilities, excluding current portion

 

                39,442

 

 

 

                          -

 

Deferred gain on sale of real estate, excluding current portion

 

                        -

 

 

                  20,270

 

Income taxes payable, excluding current portion

 

                     289

 

 

 

                       289

 

Deferred income taxes 

 

                       11

 

 

                         17

 

Long-term debt

 

                58,930

 

 

 

                  53,894

 

TOTAL LIABILITIES

 

              201,069

 

 

                181,815

 

       
Commitments and contingencies
       
STOCKHOLDERS' EQUITY
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none

 

                        -

 

 

 

                          -

 

Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 shares; Outstanding - 21,702,078 and 21,367,821 shares, respectively

 

                  2,374

 

 

                    2,374

 

Paid-in capital

 

                79,686

 

 

 

                  77,688

 

(Accumulated deficit) retained earnings

 

               (16,777

)

 

                (10,917

)

Accumulated other comprehensive loss

 

                 (6,306

)

 

 

                  (6,801

)

Treasury stock, at cost; 2,035,925 and 2,370,182 shares, respectively

 

               (18,717

)

 

                (26,155

)

TOTAL STOCKHOLDERS' EQUITY

 

                40,260

 

 

 

                  36,189

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $

           241,329

 

 $

             218,004

 

 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

August 2, 2020

 

July 28, 2019

 

Reconciliation of GAAP net loss to Non-GAAP net loss:
GAAP net loss

 $

                    (4,837

)

 

 $

                    (6,057

)

 
Selling, administrative and other operating costs

 

                               -

 

 

                          (486

)

(c)
Restructuring and severance costs

 

                            546

 

(a)

 

                         2,017

 

(d)
Impairment Costs

 

                         2,384

 

(b) 

 

                              79

 

Non-GAAP net loss

 $

                    (1,907

)

 

 $

                    (4,447

)

 
 

Three Months Ended

August 2, 2020

 

July 28, 2019

Reconciliation of GAAP net loss to Adjusted EBITDA:
GAAP net loss

 $

                    (4,837

)

 

 $

                    (6,057

)

 
Selling, administrative and other operating costs

 

                               -

 

 

 

                          (486

)

(c) 
Restructuring and severance costs

 

                            546

 

(a)

 

                         2,017

 

(d)
Impairment Costs

 

                         2,384

 

(b) 

 

                              79

 

Depreciation and amortization

 

                         1,884

 

 

 

                         1,769

 

 
Share-based compensation expense

 

                            414

 

 

 

                            294

 

Total other (income) expense, net 

 

                              64

 

 

 

                         1,049

 

 
Provision for income taxes

 

                            556

 

 

                            165

 

Adjusted EBITDA

 $

                      1,011

 

 

 $

                    (1,170

)

 
Special item adjustments consist of the following:

(a)

 

Relates to actions taken by the Company as part of its continued efforts to reduce costs and to offset COVID-19 related revenue losses.

 

 

(b)

 

Relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely.

 

 

(c)

 

Relates to the amortization of the gain on the sale of the Orange, CA facility, which is included in Selling, administrative and other operating costs.

 

 

(d)

 

Relates to exit of customer care solutions business and continued efforts to reduce costs.

 

Nine Months Ended

August 2, 2020

 

July 28, 2019

Reconciliation of GAAP net loss to Non-GAAP net loss:
GAAP net loss

 $

                  (21,070

)

 

 $

                  (14,437

)

 
Selling, administrative and other operating costs

 

                               -

 

 

                       (1,458

)

(c) 
Restructuring and severance costs

 

                         2,203

 

(a)

 

                         2,800

 

(d) 
Impairment Costs

 

                         2,395

 

(b) 

 

                            426

 

(e) 
Non-GAAP net loss

 $

                  (16,472

)

 

 $

                  (12,669

)

 
 

Nine Months Ended

August 2, 2020

July 28, 2019

Reconciliation of GAAP net loss to Adjusted EBITDA:
GAAP net loss

 $

                  (21,070

)

 

 $

                  (14,437

)

 
Selling, administrative and other operating costs

 

                               -

 

 

 

                       (1,458

)

(c) 
Restructuring and severance costs

 

                         2,203

 

(a)

 

                         2,800

 

(d) 
Impairment Costs

 

                         2,395

 

(b) 

 

                            426

 

(e) 
Depreciation and amortization

 

                         5,884

 

 

 

                         5,127

 

 
Share-based compensation expense

 

                         1,433

 

 

 

                              86

 

Total other (income) expense, net 

 

                         2,389

 

 

 

                         3,000

 

 
Provision for income taxes

 

                            774

 

 

                            671

 

Adjusted EBITDA

 $

                    (5,992

)

 

 $

                    (3,785

)

 
Special item adjustments consist of the following:

(a)

 

Primarily relates to the strategic initiative costs to offshore a significant number of identified roles to our staffing operations in India as well as continued efforts to reduce costs and to offset COVID-19 related revenue losses.

 

 

(b)

 

Primarily relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely.

 

 

(c)

 

Relates to the amortization of the gain on the sale of the Orange, CA facility, which is included in Selling, administrative and other operating costs.

 

 

(d)

 

Relates to exit of customer care solutions business and continued efforts to reduce costs.

 

 

(e)

 

Primarily relates to exit of customer care solutions business.

 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

August 2, 2020

 

Three Months Ended July 28, 2019

 

 

As Reported

 

As Reported

FX impact

Business

Exited

MSP Delivery

Model Shift

Adjusted

Revenue
North American Staffing 

 $

                   154,711

 

 $

                193,641

 

 $

                         -

 

 $

                       (76

)

 $

                  (3,447

)

 $

                190,118

 

International Staffing 

 

                        21,749

 

 

                     28,728

 

 

                        (165

)

 

                            -

 

 

                            -

 

 

                     28,563

 

North American MSP

 

                          9,436

 

 

                       9,555

 

 

                            -

 

 

                            -

 

 

                            87

 

 

                       9,642

 

Corporate and Other 

 

                             149

 

 

                       1,856

 

 

                            -

 

 

                     (1,662

)

 

                            -

 

 

                          194

 

Eliminations

 

                           (104

)

 

                        (604

)

 

                            -

 

 

                            76

 

 

                            -

 

 

                        (528

)

Total Revenue

 $

                   185,941

 

 $

                233,176

 

 $

                     (165

)

 $

                  (1,662

)

 $

                  (3,360

)

 $

                227,989

 

% change

 

-18.4

%

 
 

Nine Months Ended

August 2, 2020

 

Nine Months Ended July 28, 2019

As Reported

 

As Reported

FX impact

Business

Exited

MSP Delivery

Model Shift

Adjusted

Revenue
North American Staffing 

 $

                   510,492

 

 $

                614,360

 

 $

                         -

 

 $

                     (692

)

 $

                (10,835

)

 $

                602,833

 

International Staffing 

 

                        72,275

 

 

                     83,803

 

 

                     (1,097

)

 

                            -

 

 

                            -

 

 

                     82,706

 

North American MSP

 

                        28,550

 

 

                     27,351

 

 

                            -

 

 

                            -

 

 

                          274

 

 

                     27,625

 

Corporate and Other 

 

                             539

 

 

                     15,133

 

 

                            -

 

 

                   (14,593

)

 

                            -

 

 

                          540

 

Eliminations

 

                           (874

)

 

                     (1,965

)

 

                            -

 

 

                          692

 

 

                            -

 

 

                     (1,273

)

Total Revenue

 $

                   610,982

 

 $

                738,682

 

 $

                  (1,097

)

 $

                (14,593

)

 $

                (10,561

)

 $

                712,431

 

% change

 

-14.2

%

 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended August 2, 2020

 

Three Months Ended July 28, 2019

 

 

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Income (Loss)
North American Staffing 

 $

                    2,691

 

 $

                         -

 

 $

                    2,691

 

 $

                    4,365

 

 $

                         -  

 $

                    4,365

 

International Staffing 

 

                          551

 

 

                            -

 

 

                          551

 

 

                          342

 

 

                            15

 

                          357

 

North American MSP

 

                          944

 

 

                            -

 

 

                          944

 

 

                       1,120

 

 

                            -  

 

                       1,120

 

Corporate and Other 

 

                     (8,403

)

 

                          (14

)

 

                     (8,417

)

 

                   (10,670

)

 

                       1,890

 

                     (8,780

)

Total Operating Loss

 $

                  (4,217

)

 $

                       (14

)

 $

                  (4,231

)

 $

                  (4,843

)

 $

                    1,905

 $

                  (2,938

)

 
 

Nine Months Ended August 2, 2020

 

Nine Months Ended July 28, 2019

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Income (Loss)
North American Staffing 

 $

                    5,366

 

 $

                         -

 

 $

                    5,366

 

 $

                  10,796

 

 $

                         -  

 $

                  10,796

 

International Staffing 

 

                       1,121

 

 

                            -

 

 

                       1,121

 

 

                       1,274

 

 

                            19

 

                       1,293

 

North American MSP

 

                       2,189

 

 

                            -

 

 

                       2,189

 

 

                       3,185

 

 

                            -  

 

                       3,185

 

Corporate and Other 

 

                   (26,583

)

 

                          (27

)

 

                   (26,610

)

 

                   (26,021

)

 

                       2,025

 

                   (23,996

)

Total Operating Loss

 $

                (17,907

)

 $

                       (27

)

 $

                (17,934

)

 $

                (10,766

)

 $

                    2,044

 $

                  (8,722

 )

 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended August 2, 2020

 

Three Months Ended July 28, 2019

 

 

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Loss
Gross Margin

 $

                  29,958

 

 $

                         -

 

 $

                  29,958

 

 $

                  35,648

 

 $

                       346

 

 $

                  35,994

 

Selling, administrative and other operating costs

 

                     31,245

 

 

                            -

 

 

                     31,245

 

 

                     38,395

 

 

                        (136

)

 

                     38,259

 

Restructuring and severance costs

 

                          546

 

 

                            14

 

 

                          560

 

 

                       2,017

 

 

                     (1,422

)

 

                          595

 

Impairment charges

 

                       2,384

 

 

                            -

 

 

                       2,384

 

 

                            79

 

 

                            (1

)

 

                            78

 

Total Operating Loss

 $

                  (4,217

)

 $

                       (14

)

 $

                  (4,231

)

 $

                  (4,843

)

 $

                    1,905

 

 $

                  (2,938

)

 
 

Nine Months Ended August 2, 2020

 

Nine Months Ended July 28, 2019

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Loss
Gross Margin

 $

                  93,622

 

 $

                         -

 

 $

                  93,622

 

 $

                109,604

 

 $

                     (523

)

 $

                109,081

 

Selling, administrative and other operating costs

 

                   106,931

 

 

                            -

 

 

                   106,931

 

 

                   117,144

 

 

                        (535

)

 

                   116,609

 

Restructuring and severance costs

 

                       2,203

 

 

                            27

 

 

                       2,230

 

 

                       2,800

 

 

                     (1,684

)

 

                       1,116

 

Impairment charges

 

                       2,395

 

 

                            -

 

 

                       2,395

 

 

                          426

 

 

                        (348

)

 

                            78

 

Total Operating Loss

 $

                (17,907

)

 $

                       (27

)

 $

                (17,934

)

 $

                (10,766

)

 $

                    2,044

 

 $

                  (8,722

)

 

Investor Relations Contacts:
Volt Information Sciences, Inc.
voltinvest@volt.com

Joe Noyons
Three Part Advisors
jnoyons@threepa.com
817-778-8424

Source: Volt Information Sciences, Inc.