Volt Information Sciences, Inc. Reports Fourth Quarter and Fiscal 2021 Financial Results

Reports Year-Over-Year Revenue Growth and Positive Net Income for both the 4th Quarter and Fiscal Year 2021

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 fourth quarter and fiscal year ended October 31, 2021.

Fourth Quarter 2021 Summary

  • Revenue was $227.8 million, a 7.9% increase compared to the fourth quarter of fiscal 2020; Adjusted Revenue* increased 7.7%.
  • Gross Margin increased 60 basis points year over year to 16.8%.
  • GAAP Operating Income was $2.3 million, a $13.8 million improvement compared to the prior-year quarter; Adjusted Operating Income*, excluding impairment and restructuring charges, was $3.5 million.
  • GAAP EPS improved to $0.06 per diluted share, compared to a loss of $0.58 per share in the fourth quarter of fiscal 2020; Adjusted EPS* was $0.11 per diluted share.
  • Adjusted EBITDA* was $6.2 million, an increase of $0.3 million year over year.

Fiscal 2021 Summary

  • Revenue was $885.4 million, a 7.7% increase compared to fiscal 2020; Adjusted Revenue* increased 7.1%.
  • Gross Margin improved 60 basis points year over year to 16.2%.
  • GAAP Operating Income was $4.8 million, a $34.2M improvement compared to the prior fiscal year; Adjusted operating income, excluding impairment and restructuring charges, was $8.1 million in fiscal 2021 compared to an operating loss of $9.8 million in fiscal 2020.
  • GAAP EPS improved to $0.06 per diluted share, compared to a loss of $1.56 per share in fiscal 2020; Adjusted EPS* was $0.21 per diluted share.
  • Adjusted EBITDA was $17.8 million compared to ($0.1) million in the prior year.

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

“Our performance in the fourth quarter and fiscal 2021 reflects the successful and continued execution of our strategic initiatives. Achieving year-over-year revenue growth each quarter and for the full year, combined with expanding our gross margin and reducing SG&A expense, we reported meaningful increases in both net income and Adjusted EBITDA,” said Linda Perneau, President and Chief Executive Officer.

Ms. Perneau added, “Although we continue to experience COVID-related business disruptions, I applaud every Volt colleague across the globe who is forging ahead with the necessary agility to address the ebbs and flows of client demand and the broader labor market. The work we have done over the last two years, including the implementation of new technologies, has provided us with a strong footing going forward. We remain confident that we will continue to see an improvement in full-year profitability in fiscal 2022.”

Fourth Quarter Results

North American Staffing revenue was $190.9 million, as compared to $178.6 million in the prior-year quarter. Revenue for this segment increased 6.9 percent year over year. The increase is primarily attributable to business wins in a combination of retail and mid-market clients, combined with the expansion of business within existing clients.

International Staffing revenue was $26.8 million, compared to $23.0 million in the prior-year quarter. Adjusted Revenue increased 13.9 percent year over year due to the expansion of business with existing clients in France and Belgium, as well as increased direct hire business in the U.K. and Singapore.

North American MSP revenue was $10.0 million, compared to $9.4 million in the prior-year quarter. The increase is primarily attributable to increased demand in its payroll service business.

Gross margin was 16.8 percent of revenue, a 60 basis-point increase from the prior-year quarter. The increase is primarily attributable to improved margins and higher direct hire revenue in our North American and International Staffing segments.

SG&A expense was $34.7 million or 15.2% of revenue, a $4.0 million increase from the prior-year quarter. The increase was primarily attributable to incentives on higher sales volume, as well as higher labor and medical expenses.

Adjusted EBITDA, which is a Non-GAAP measure, was $6.2 million for the fourth quarter of fiscal 2021, compared to $5.9 million in the prior-year quarter.

Fiscal 2021 Results

North American Staffing revenue was $738.8 million as compared to $689.1 million for fiscal 2020. Adjusted Revenue for this segment increased 7.5 percent. The increase is primarily attributable to business wins in a combination of retail and mid-market clients, combined with the expansion of business within existing clients. Operating Income for the year was $33.0 million compared to $14.3 million for fiscal 2020. Adjusted Operating Income for this segment, excluding impairment and restructuring charges, which is a Non-GAAP measure, was $33.0 million compared to $17.1 million in the prior year.

International Staffing revenue was $107.0 million compared to $95.3 million. Adjusted Revenue in the International Staffing segment in fiscal 2021 increased 4.9 percent. Operating Income for the year was $4.1 million compared to $1.4 million from fiscal 2020. Adjusted Operating Income, excluding impairment and restructuring charges, for this segment was $4.3 million, compared to $1.7 million in fiscal 2020.

North American MSP revenue increased 3.7 percent from the prior year, to $39.3 million. Adjusted Revenue for the segment increased 3.5 percent year over year. Operating Income for the year was $2.1 million compared to $3.1 million in the prior year. Adjusted Operating Income excluding impairment and restructuring charges, for this segment was $2.2 million compared to $3.1 million in fiscal 2020.

Gross margin increased by 60 basis points to 16.2 percent of revenue. The increase is primarily attributable to improved margins and an increase in direct hire revenue in our North American and International Staffing segments.

SG&A expense was $135.4 million, a decrease of $2.2 million, or 1.6%, from $137.7 million in the prior year. The decrease is primarily attributable to lower facility-related costs due to consolidation of the Company’s real estate footprint, as well as lower software and travel expenses.

Adjusted EBITDA was $17.8 million, compared to a loss of $0.1 million in the prior year.

2021 Earnings Conference Call and Webcast

The Company will conduct a conference call on January 12, 2022, at 5:00 p.m. Eastern Time, to review the financial results for the fourth quarter and fiscal year ended October 31, 2021. A presentation supplementing the call can be accessed through the investor relations portion of the website. 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. 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 and related government actions 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), Adjusted EPS 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 and eliminating (a) the impact of businesses sold or exited, (b) the impact from the migration of certain clients from a traditional staffing model to a managed service model and (c) 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 and the effect of foreign currency translation. 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.

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.

Adjusted EPS is defined as earnings per share excluding impairment and restructuring charges. The Company believes that the presentation of Adjusted EPS is useful for investors since it removes certain special items which the Company does not consider indicative of the current and future period performance.

The Company’s computation of Adjusted Revenue, Adjusted EBITDA, Adjusted Operating Income (Loss) and Adjusted EPS 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 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

 

Year Ended

October 31, 2021

 

August 1, 2021

 

November 1, 2020

 

October 31, 2021

 

November 1, 2020

 
Net revenue

$

227,809

 

$

217,534

 

$

211,073

 

$

885,393

 

$

822,055

 

Cost of services

 

189,648

 

 

181,334

 

 

176,844

 

 

741,871

 

 

694,204

 

Gross margin

 

38,161

 

 

36,200

 

 

34,229

 

 

143,522

 

 

127,851

 

 
Selling, administrative and other operating costs

 

34,691

 

 

34,039

 

 

30,735

 

 

135,427

 

 

137,666

 

Restructuring and severance costs

 

1,123

 

 

489

 

 

438

 

 

2,839

 

 

2,641

 

Impairment charges

 

20

 

 

112

 

 

14,518

 

 

424

 

 

16,913

 

Operating income (loss)

 

2,327

 

 

1,560

 

 

(11,462

)

 

4,832

 

 

(29,369

)

 
Interest income (expense), net

 

(416

)

 

(445

)

 

(431

)

 

(1,768

)

 

(2,219

)

Foreign exchange gain (loss), net

 

39

 

 

(34

)

 

(62

)

 

318

 

 

(85

)

Other income (expense), net

 

(150

)

 

(152

)

 

(291

)

 

(605

)

 

(869

)

Income (loss) before income taxes

 

1,800

 

 

929

 

 

(12,246

)

 

2,777

 

 

(32,542

)

Income tax provision

 

474

 

 

314

 

 

271

 

 

1,403

 

 

1,045

 

Net income (loss)

$

1,326

 

$

615

 

$

(12,517

)

$

1,374

 

$

(33,587

)

 
Per share data:
Basic:
Net income (loss)

$

0.06

 

$

0.03

 

$

(0.58

)

$

0.06

 

$

(1.56

)

Weighted average number of shares

 

21,981

 

 

21,968

 

 

21,607

 

 

21,884

 

 

21,507

 

 
Diluted:
Net income (loss)

$

0.06

 

$

0.03

 

$

(0.58

)

$

0.06

 

$

(1.56

)

Weighted average number of shares

 

22,811

 

 

22,651

 

 

21,607

 

 

22,609

 

 

21,507

 

 
Segment data:
 
Net revenue:
North American Staffing

$

190,875

 

$

179,381

 

$

178,603

 

$

738,767

 

$

689,095

 

International Staffing

 

26,814

 

 

28,256

 

 

23,033

 

 

106,963

 

 

95,308

 

North American MSP

 

10,021

 

 

9,790

 

 

9,365

 

 

39,312

 

 

37,915

 

Corporate and Other

 

99

 

 

121

 

 

135

 

 

456

 

 

674

 

Eliminations

 

-

 

 

(14

)

 

(63

)

 

(105

)

 

(937

)

Net revenue

$

227,809

 

$

217,534

 

$

211,073

 

$

885,393

 

$

822,055

 

 
Operating income (loss):
North American Staffing

$

9,064

 

$

8,319

 

$

8,956

 

$

33,029

 

$

14,322

 

International Staffing

 

1,419

 

 

1,180

 

 

278

 

 

4,078

 

 

1,399

 

North American MSP

 

706

 

 

571

 

 

885

 

 

2,118

 

 

3,074

 

Corporate and Other

 

(8,862

)

 

(8,510

)

 

(21,581

)

 

(34,393

)

 

(48,164

)

Operating income (loss)

$

2,327

 

$

1,560

 

$

(11,462

)

$

4,832

 

$

(29,369

)

 
Work days

 

64

 

 

63

 

 

64

 

 

251

 

 

251

 

 
Condensed Consolidated Statements of Cash Flows
(in thousands)

Year Ended

October 31, 2021

 

November 1, 2020

 
Cash, cash equivalents and restricted cash beginning of the period

$

56,433

 

$

38,444

 

 
Cash provided by all other operating activities

 

20,323

 

 

964

 

Changes in operating assets and liabilities

 

3,544

 

 

17,190

 

Net cash provided by operating activities

 

23,867

 

 

18,154

 

 
Purchases of property, equipment, and software

 

(3,112

)

 

(5,268

)

Net cash provided by all other investing activities

 

52

 

 

639

 

Net cash used in investing activities

 

(3,060

)

 

(4,629

)

 
Net draw-down of borrowings

 

-

 

 

5,000

 

Debt issuance costs

 

(166

)

 

(343

)

Net cash used in all other financing activities

 

(414

)

 

(77

)

Net cash provided by (used in) financing activities

 

(580

)

 

4,580

 

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

 

(51

)

 

(116

)

 
Net increase in cash, cash equivalents and restricted cash

 

20,176

 

 

17,989

 

 
Cash, cash equivalents and restricted cash end of the period

$

76,609

 

$

56,433

 

 
Cash paid during the period:
Interest

$

1,806

 

$

2,297

 

Income taxes

$

587

 

$

1,979

 

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

$

71,373

 

$

38,550

 

Restricted cash included in Restricted cash and short term investments

 

5,236

 

 

17,883

 

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

$

76,609

 

$

56,433

 

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

October 31, 2021

 

November 1, 2020

ASSETS
CURRENT ASSETS:
Cash and cash equivalents

$

71,373

 

$

38,550

 

Restricted cash and short-term investments

 

8,729

 

 

20,736

 

Trade accounts receivable, net of allowances of $137 and $219, respectively

 

127,211

 

 

121,916

 

Other current assets

 

6,229

 

 

7,058

 

TOTAL CURRENT ASSETS

 

213,542

 

 

188,260

 

Property, equipment and software, net

 

17,482

 

 

22,167

 

Right of use assets - operating leases

 

22,496

 

 

25,107

 

Other assets, excluding current portion

 

6,584

 

 

6,311

 

TOTAL ASSETS

$

260,104

 

$

241,845

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accrued compensation

$

22,629

 

$

18,357

 

Accounts payable

 

36,544

 

 

31,221

 

Accrued taxes other than income taxes

 

31,112

 

 

12,983

 

Accrued insurance and other

 

16,298

 

 

15,908

 

Operating lease liabilities

 

6,775

 

 

7,144

 

Income taxes payable

 

956

 

 

891

 

TOTAL CURRENT LIABILITIES

 

114,314

 

 

86,504

 

Accrued payroll taxes and other, excluding current portion

 

21,832

 

 

30,081

 

Operating lease liabilities, excluding current portion

 

33,558

 

 

38,232

 

Long-term debt

 

59,307

 

 

59,154

 

TOTAL LIABILITIES

 

229,011

 

 

213,971

 

 
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 22,099,246 and 21,729,400 shares, respectively

 

2,374

 

 

2,374

 

Paid-in capital

 

80,062

 

 

79,937

 

Accumulated deficit

 

(32,208

)

 

(29,793

)

Accumulated other comprehensive loss

 

(6,249

)

 

(6,458

)

Treasury stock, at cost; 1,638,757 and 2,008,603 shares, respectively

 

(12,886

)

 

(18,186

)

TOTAL STOCKHOLDERS' EQUITY

 

31,093

 

 

27,874

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

260,104

 

$

241,845

 

 
GAAP to Non-GAAP Reconciliations
(in thousands)
 

Three Months Ended

October 31, 2021

November 1, 2020

Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss):
GAAP net income (loss)

$

1,326

$

(12,517

)

Restructuring and severance costs

 

1,123

(a)

 

438

 

(c)

Impairment costs

 

20

(b)

 

14,518

 

(d)

Non-GAAP net income (loss)

$

2,469

$

2,439

 

 

Three Months Ended

October 31, 2021

November 1, 2020

Reconciliation of GAAP net income (loss) to Adjusted EBITDA:
GAAP net income (loss)

$

1,326

$

(12,517

)

Restructuring and severance costs

 

1,123

(a)

 

438

 

(c)

Impairment costs

 

20

(b)

 

14,518

 

(d)

Depreciation and amortization

 

1,918

 

2,097

 

Share-based compensation expense

 

807

 

303

 

Total other (income) expense, net

 

527

 

784

 

Provision for income taxes

 

474

 

271

 

Adjusted EBITDA

$

6,195

$

5,894

 

 
Special item adjustments consist of the following:

(a)

Primarily relates to actions taken by the Company as part of its continued efforts to reduce costs and on-going costs related to facilities exited in fiscal 2020.

 

 

(b)

Relates to impairment of capitalized software costs.

 

 

(c)

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

 

 

(d)

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.

 
GAAP to Non-GAAP Reconciliations
(in thousands)
 

Year Ended

October 31, 2021

November 1, 2020

Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss):
GAAP net income (loss)

$

1,374

$

(33,587

)

Restructuring and severance costs

 

2,839

(a)

 

2,641

 

(c)

Impairment costs

 

424

(b)

 

16,913

 

(d)

Non-GAAP net income (loss)

$

4,637

$

(14,033

)

 

Year Ended

October 31, 2021

November 1, 2020

Reconciliation of GAAP net income (loss) to Adjusted EBITDA:
GAAP net income (loss)

$

1,374

$

(33,587

)

Restructuring and severance costs

 

2,839

(a)

 

2,641

 

(c)

Impairment costs

 

424

(b)

 

16,913

 

(d)

Depreciation and amortization

 

7,560

 

7,981

 

Share-based compensation expense

 

2,101

 

1,736

 

Total other (income) expense, net

 

2,055

 

3,173

 

Provision for income taxes

 

1,403

 

1,045

 

Adjusted EBITDA

$

17,756

$

(98

)

 
Special item adjustments consist of the following:

(a)

Primarily relates to actions taken by the Company as part of its continued efforts to reduce costs and on-going costs related to facilities exited in fiscal 2020.

 

 

(b)

Relates to impairment of capitalized software costs.

 

 

(c)

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.

 

 

(d)

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.

 
GAAP to Non-GAAP Reconciliations
(in thousands)
       

Three Months Ended

October 31, 2021

 

Three Months Ended November 1, 2020

As Reported

 

As Reported

 

FX Impact

 

MSP Delivery

Model Shift

 

Adjusted

Revenue      
North American Staffing

$

190,875

 

$

178,603

 

 

$

-

 

$

-

 

 

$

178,603

 

International Staffing

 

26,814

 

 

23,033

 

 

 

513

 

 

-

 

 

 

23,546

 

North American MSP

 

10,021

 

 

9,365

 

 

 

-

 

 

-

 

 

 

9,365

 

Corporate and Other

 

99

 

 

135

 

 

 

-

 

 

-

 

 

 

135

 

Eliminations

 

-

 

 

(63

)

 

 

-

 

 

-

 

 

 

(63

)

Total Revenue

$

227,809

 

$

211,073

 

 

$

513

 

$

-

 

 

$

211,586

 

% change      

 

7.7

%

       
       

Year Ended

October 31, 2021

 

Year Ended November 1, 2020

As Reported

 

As Reported

 

FX Impact

 

MSP Delivery

Model Shift

 

Adjusted

Revenue      
North American Staffing

$

738,767

 

$

689,095

 

 

$

-

 

$

(2,072

)

 

$

687,023

 

International Staffing

 

106,963

 

 

95,308

 

 

 

6,643

 

 

-

 

 

 

101,951

 

North American MSP

 

39,312

 

 

37,915

 

 

 

-

 

 

52

 

 

 

37,967

 

Corporate and Other

 

456

 

 

674

 

 

 

-

 

 

-

 

 

 

674

 

Eliminations

 

(105

)

 

(937

)

 

 

-

 

 

-

 

 

 

(937

)

Total Revenue

$

885,393

 

$

822,055

 

 

$

6,643

 

$

(2,020

)

 

$

826,678

 

% change      

 

7.1

%

       
       
GAAP to Non-GAAP Reconciliations
(in thousands)
         

Three Months Ended October 31, 2021

 

Three Months Ended November 1, 2020

As Reported

 

Business Exited

 

Adjusted

 

As Reported

 

Business Exited

 

Adjusted

Operating Income (Loss)        
North American Staffing

$

9,064

 

 

$

-

 

$

9,064

 

$

8,956

 

 

$

-

 

 

$

8,956

 

International Staffing

 

1,419

 

 

 

-

 

 

1,419

 

 

278

 

 

 

-

 

 

 

278

 

North American MSP

 

706

 

 

 

-

 

 

706

 

 

885

 

 

 

-

 

 

 

885

 

Corporate and Other

 

(8,862

)

 

 

-

 

 

(8,862

)

 

(21,581

)

 

 

-

 

 

 

(21,581

)

Total Operating Income (Loss)

$

2,327

 

 

$

-

 

$

2,327

 

$

(11,462

)

 

$

-

 

 

$

(11,462

)

         
         

Year Ended October 31, 2021

 

Year Ended November 1, 2020

As Reported

 

Business Exited

 

Adjusted

 

As Reported

 

Business Exited

 

Adjusted

Operating Income (Loss)        
North American Staffing

$

33,029

 

 

$

-

 

$

33,029

 

$

14,322

 

 

$

-

 

 

$

14,322

 

International Staffing

 

4,078

 

 

 

-

 

 

4,078

 

 

1,399

 

 

 

-

 

 

 

1,399

 

North American MSP

 

2,118

 

 

 

-

 

 

2,118

 

 

3,074

 

 

 

-

 

 

 

3,074

 

Corporate and Other

 

(34,393

)

 

 

5

 

 

(34,388

)

 

(48,164

)

 

 

(27

)

 

 

(48,191

)

Total Operating Income (Loss)

$

4,832

 

 

$

5

 

$

4,837

 

$

(29,369

)

 

$

(27

)

 

$

(29,396

)

         
         
GAAP to Non-GAAP Reconciliations
(in thousands)
         

Three Months Ended October 31, 2021

 

Three Months Ended November 1, 2020

As Reported

 

Business Exited

 

Adjusted

 

As Reported

 

Business Exited

 

Adjusted

Operating Income (Loss)        
Gross Margin

$

38,161

 

$

-

 

 

$

38,161

$

34,229

 

 

$

-

 

 

$

34,229

 

Selling, administrative and other operating costs

 

34,691

 

 

-

 

 

 

34,691

 

30,735

 

 

 

-

 

 

 

30,735

 

Restructuring and severance costs

 

1,123

 

 

-

 

 

 

1,123

 

438

 

 

 

-

 

 

 

438

 

Impairment charges

 

20

 

 

-

 

 

 

20

 

14,518

 

 

 

-

 

 

 

14,518

 

Total Operating income (Loss)

$

2,327

 

$

-

 

 

$

2,327

$

(11,462

)

 

$

-

 

 

$

(11,462

)

         
         
         
         

Year Ended October 31, 2021

 

Year Ended November 1, 2020

As Reported

 

Business Exited

 

Adjusted

 

As Reported

 

Business Exited

 

Adjusted

Operating Income (Loss)        
Gross Margin

$

143,522

 

$

-

 

 

$

143,522

$

127,851

 

 

$

-

 

 

$

127,851

 

Selling, administrative and other operating costs

 

135,427

 

 

-

 

 

 

135,427

 

137,666

 

 

 

-

 

 

 

137,666

 

Restructuring and severance costs

 

2,839

 

 

(5

)

 

 

2,834

 

2,641

 

 

 

27

 

 

 

2,668

 

Impairment charges

 

424

 

 

-

 

 

 

424

 

16,913

 

 

 

-

 

 

 

16,913

 

Total Operating Income (Loss)

$

4,832

 

$

5

 

 

$

4,837

$

(29,369

)

 

$

(27

)

 

$

(29,396

)

         
         
GAAP to Non-GAAP Reconciliations
(in thousands, except per share data)
     

Three Months Ended October 31, 2021

As Reported

 

Restructuring and

Impairment Costs

 

Adjusted

Earnings per Share    
Net income

$

1,326

 

$

1,143

 

$

2,469

     
Per share data:    
Basic:    
Net income

$

0.06

   

$

0.11

Weighted average number of shares

 

21,981

   

 

21,981

     
Diluted    
Net income

$

0.06

   

$

0.11

Weighted average number of shares

 

22,811

   

 

22,811

     
     

Year Ended October 31, 2021

As Reported

 

Restructuring and

Impairment Costs

 

Adjusted

Earnings per Share    
Net income

$

1,374

 

$

3,263

 

$

4,637

     
Per share data:    
Basic:    
Net income

$

0.06

   

$

0.21

Weighted average number of shares

 

21,884

   

 

21,884

     
Diluted    
Net income

$

0.06

   

$

0.21

Weighted average number of shares

 

22,609

   

 

22,609

 

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.