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

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Volt Information Sciences, Inc. ("Volt" or the "Company") (NYSE-AMERICAN: VOLT) a global provider of staffing services, today announced financial results for the second fiscal quarter ended May 3, 2020.

Second Quarter Highlighted Results

  • Revenue was $207.3 million, compared to $252.1 million in the prior-year quarter; Adjusted Revenue* decreased 14.1%.
  • Gross margin was 15.6%, a 120-basis point improvement versus the comparable quarter in fiscal 2019.
  • GAAP operating loss was $4.4 million, compared to $3.8 million in the prior-year quarter; Adjusted Operating Loss* increased by $1.5 million year over year.
  • Adjusted EBITDA* was a loss of $1.4 million, a $0.1 million improvement compared to the prior-year quarter.

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

"The second quarter of fiscal 2020 has certainly been an unprecedented one for our organization. The magnitude of the COVID-19 pandemic around the world triggering a rapid shutdown of the global economy is unlike anything we have seen in Volt's 70 year history," said Linda Perneau, President and Chief Executive Officer. "Our experienced management team was instrumental in taking swift actions in response to this health and economic crisis, resulting in substantive SG&A reductions and improvement in both gross margin and Adjusted EBITDA. We remain well poised as the economic recovery progresses, and our focus will be on helping our clients and field employees return to work safely."

Second Quarter Results

North American Staffing revenue for the quarter was $173.4 million, as compared to $208.9 million for the second quarter of fiscal 2019. Adjusted Revenue, which is a Non-GAAP measure, for this segment decreased approximately 14.9 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, including from new opportunities created to meet COVID-19 specific demand with new and existing clients.

International Staffing revenue was $24.3 million, compared to $28.8 million in the second quarter of fiscal 2019. Adjusted Revenue, for this segment decreased 13.2 percent year over year. The decrease is primarily due to reduced work orders in the U.K.

North American MSP revenue was $9.7 million, as compared to $9.6 million for the second quarter of fiscal 2019. Expansion of services within existing clients and the incremental revenue associated with a shift of certain clients from the North American Staffing segment was mostly offset by factors related to COVID-19.

Gross margin for the quarter was 15.6 percent of revenue, compared to 14.4 percent of revenue in the second quarter of fiscal 2019. The change is attributable to a larger credit related to our workers' compensation versus the prior year, and a decrease in payroll tax rates and other direct costs.

SG&A expense for the second quarter was $36.2 million, a $2.7 million reduction from the prior-year quarter. The decrease is primarily due to substantial cost reductions taken throughout the year and in response to the COVID-19 pandemic.

Adjusted EBITDA, which is a Non-GAAP measure, for the second quarter of fiscal 2020 was a loss of $1.4 million, as compared to a loss of $1.5 million in the prior-year quarter.

Business Outlook

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

Earnings Conference Call and Webcast

Volt Information Sciences, Inc. will conduct a conference call on Tuesday, June 16, 2020, at 5:00 PM ET, to review the financial results for the second fiscal quarter ended May 3, 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 13703899. 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

 

Six Months Ended 

May 3, 2020

 

February 2, 2020

 

April 28, 2019

 

May 3, 2020

 

April 28, 2019

 
Net revenue 

 $

                207,275

 

 

 $

                217,766

 

 

 $

                252,070

 

 $

                425,041

 

 

 $

                505,506

 

Cost of services

 

                   175,038

 

 

                   186,339

 

 

                   215,813

 

 

                   361,377

 

 

                   431,550

 

Gross margin 

 

                     32,237

 

 

 

                     31,427

 

 

 

                     36,257

 

 

                     63,664

 

 

 

                     73,956

 

                 
Selling, administrative and other operating costs

 

                     36,189

 

 

 

                     39,497

 

 

 

                     38,939

 

 

                     75,686

 

 

 

                     78,749

 

Restructuring and severance costs

 

                          411

 

 

                       1,246

 

 

                          724

 

 

                       1,657

 

 

                          783

 

Impairment charges

 

                            -

 

 

 

                            11

 

 

 

                          347

 

 

                            11

 

 

 

                          347

 

Operating loss

 

                     (4,363

)

 

 

                     (9,327

)

 

 

                     (3,753

)

 

                   (13,690

)

 

 

                     (5,923

)

                 
Interest income (expense), net

 

                        (621

)

 

 

                        (700

)

 

 

                        (699

)

 

                     (1,321

)

 

 

                     (1,445

)

Foreign exchange gain (loss), net

 

                        (266

)

 

 

                        (328

)

 

 

                        (314

)

 

                        (594

)

 

 

                        (101

)

Other income (expense), net

 

                        (152

)

 

 

                        (258

)

 

 

                        (166

)

 

                        (410

)

 

 

                        (405

)

Loss before income taxes

 

                     (5,402

)

 

 

                   (10,613

)

 

 

                     (4,932

)

 

                   (16,015

)

 

 

                     (7,874

)

Income tax provision 

 

                            23

 

 

 

                          195

 

 

 

                          233

 

 

                          218

 

 

 

                          506

 

Net loss

 $

                  (5,425

)

 

 $

                (10,808

)

 

 $

                  (5,165

)

 $

                (16,233

)

 

 $

                  (8,380

)

                 
Per share data:                
Basic:                
Net loss

 $

                    (0.25

)

 

 $

                    (0.50

)

 

 $

                    (0.24

)

 $

                    (0.76

)

 

 $

                    (0.40

)

Weighted average number of shares

 

                     21,416

 

 

 

                     21,416

 

 

 

                     21,082

 

 

                     21,416

 

 

 

                     21,081

 

                 
Diluted:                
Net loss

 $

                    (0.25

)

 

 $

                    (0.50

)

 

 $

                    (0.24

)

 $

                    (0.76

)

 

 $

                    (0.40

)

Weighted average number of shares

 

                     21,416

 

 

 

                     21,416

 

 

 

                     21,082

 

 

                     21,416

 

 

 

                     21,081

 

                 
Segment data:                
                 
Net revenue:                
North American Staffing 

 $

                173,386

 

 

 $

                182,395

 

 

 $

                208,871

 

 $

                355,781

 

 

 $

                420,719

 

International Staffing 

 

                     24,303

 

 

 

                     26,223

 

 

 

                     28,809

 

 

                     50,526

 

 

 

                     55,075

 

North American MSP

 

                       9,745

 

 

 

                       9,369

 

 

 

                       9,579

 

 

                     19,114

 

 

 

                     17,796

 

Corporate and Other 

 

                          187

 

 

 

                          203

 

 

 

                       5,431

 

 

                          390

 

 

 

                     13,277

 

Eliminations

 

                        (346

)

 

 

                        (424

)

 

 

                        (620

)

 

                        (770

)

 

 

                     (1,361

)

Net revenue

 $

                207,275

 

 

 $

                217,766

 

 

 $

                252,070

 

 $

                425,041

 

 

 $

                505,506

 

                 
Operating income (loss):                
North American Staffing 

 $

                    2,576

 

 

 $

                         99

 

 

 $

                    2,544

 

 $

                    2,675

 

 

 $

                    6,431

 

International Staffing 

 

                          196

 

 

 

                          374

 

 

 

                          628

 

 

                          570

 

 

 

                          932

 

North American MSP

 

                          491

 

 

 

                          754

 

 

 

                       1,100

 

 

                       1,245

 

 

 

                       2,065

 

Corporate and Other 

 

                     (7,626

)

 

 

                   (10,554

)

 

 

                     (8,025

)

 

                   (18,180

)

 

 

                   (15,351

)

Operating loss

 $

                  (4,363

)

 

 $

                  (9,327

)

 

 $

                  (3,753

)

 $

                (13,690

)

 

 $

                  (5,923

)

                 
Work days

 

                            65

 

 

 

                            59

 

 

 

                            65

 

 

                          124

 

 

 

                          124

 

 
 
 
 
 
Condensed Consolidated Statements of Cash Flows
(in thousands)

Six Months ended

May 3, 2020

 

April 28, 2019

 
Cash, cash equivalents and restricted cash beginning of the period

 $

              38,444

 

 

 $

              36,544

 

 
Cash used in all other operating activities

 

                  (7,161

)

 

 

                  (6,239

)

Changes in operating assets and liabilities

 

                 10,071

 

 

                 15,697

 

Net cash provided by operating activities

 

                   2,910

 

 

 

                   9,458

 

 
Purchases of property, equipment, and software

 

                  (3,092

)

 

 

                  (4,058

)

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

 

                      615

 

 

 

                       (21

)

Net cash used in investing activities

 

                  (2,477

)

 

 

                  (4,079

)

       
Net draw-down of borrowings

 

                   5,000

 

 

 

                   5,000

 

Debt issuance costs

 

                     (243

)

 

                     (177

)

Net cash used in all other financing activities

 

                         (6

)

 

 

                       (40

)

Net cash provided by financing activities

 

                   4,751

 

 

                   4,783

 

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

 

                     (521

)

 

                     (249

)

       
Net increase in cash, cash equivalents and restricted cash

 

                   4,663

 

 

                   9,913

 

       
Cash, cash equivalents and restricted cash end of the period

 $

              43,107

 

 $

              46,457

 

       
Cash paid during the period:
Interest 

 $

                1,382

 

 

 $

                1,560

 

Income taxes

 $

                   258

 

 $

                   216

 

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

 $

              26,223

 

 $

              39,689

 

Restricted cash included in Restricted cash and short term investments

 

                 16,884

 

 

 

                   6,768

 

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

 $

              43,107

 

 

 $

              46,457

 

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

May 3,

2020

November 3,

2019

ASSETS      
CURRENT ASSETS:
Cash and cash equivalents

 $

             26,223

 

 

 $

               28,672

 

Restricted cash and short-term investments

 

                19,445

 

 

                  12,794

 

Trade accounts receivable, net of allowances of $150 and $117, respectively

 

              116,373

 

 

 

                135,950

 

Other current assets

 

                  8,480

 

 

                    7,252

 

TOTAL CURRENT ASSETS

 

              170,521

 

 

 

                184,668

 

Property, equipment and software, net

 

                24,792

 

 

                  25,890

 

Right of use assets - operating leases

 

                43,495

 

 

 

                          -

 

Other assets, excluding current portion

 

                  6,538

 

 

                    7,446

 

TOTAL ASSETS

 $

           245,346

 

 

 $

             218,004

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY      
CURRENT LIABILITIES:
Accrued compensation

 $

             16,644

 

 

 $

               21,507

 

Accounts payable

 

                29,668

 

 

                  36,341

 

Accrued taxes other than income taxes

 

                13,360

 

 

 

                  11,244

 

Accrued insurance and other

 

                21,008

 

 

                  24,654

 

Operating lease liabilities

 

                  7,807

 

 

 

                          -

 

Income taxes payable

 

                  1,651

 

 

                    1,570

 

TOTAL CURRENT LIABILITIES

 

                90,138

 

 

 

                  95,316

 

Accrued insurance and other, excluding current portion

 

                12,733

 

 

                  12,029

 

Operating lease liabilities, excluding current portion

 

                40,312

 

 

 

                          -

 

Deferred gain on sale of real estate, excluding current portion

 

                        -

 

 

                  20,270

 

Income taxes payable, excluding current portion

 

                     289

 

 

 

                       289

 

Deferred income taxes 

 

                       12

 

 

                         17

 

Long-term debt

 

                58,916

 

 

 

                  53,894

 

TOTAL LIABILITIES

 

              202,400

 

 

                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 - 21,408,659 and 21,367,821 shares, respectively

 

                  2,374

 

 

                    2,374

 

Paid-in capital

 

                78,593

 

 

 

                  77,688

 

(Accumulated deficit) retained earnings

 

                 (5,673

)

 

                (10,917

)

Accumulated other comprehensive loss

 

                 (7,039

)

 

 

                  (6,801

)

Treasury stock, at cost; 2,329,344 and 2,370,182 shares, respectively

 

               (25,309

)

 

                (26,155

)

TOTAL STOCKHOLDERS' EQUITY

 

                42,946

 

 

 

                  36,189

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $

           245,346

 

 $

             218,004

 

 
 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

May 3, 2020

 

April 28, 2019

 

 

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

GAAP net loss

 $

                    (5,425

)

 

 $

                    (5,165

)

 

  Selling, administrative and other operating costs

 

                               -

 

 

                          (486

)

(b) 

  Restructuring and severance costs

 

                            411

 

(a)

 

                            724

 

(c) 

  Impairment Costs

 

                               -

 

 

                            347

 

(d)

Non-GAAP net loss

 $

                    (5,014

)

 

 $

                    (4,580

)

 

 

 

 

 

 

Three Months Ended

 

 

May 3, 2020

 

April 28, 2019

Reconciliation of GAAP net loss to Adjusted EBITDA:

GAAP net loss

 $

                    (5,425

)

 

 $

                    (5,165

)

 

  Selling, administrative and other operating costs

 

                               -

 

 

 

                          (486

)

(b)

  Restructuring and severance costs

 

                            411

 

(a)

 

                            724

 

(c) 

  Impairment Costs

 

                               -

 

 

                            347

 

(d)

  Depreciation and amortization

 

                         2,027

 

 

 

                         1,755

 

 

  Share-based compensation expense

 

                            508

 

 

 

                            (95

)

  Total other (income) expense, net 

 

                         1,039

 

 

 

                         1,179

 

 

  Provision for income taxes

 

                              23

 

 

                            233

 

Adjusted EBITDA

 $

                    (1,417

)

 

 $

                    (1,508

)

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

 

(c)

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

 

(d)

Relates to exit of customer care solutions business.
 
 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

May 3, 2020

 

April 28, 2019

 

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

 $

                  (16,233

)

 

 $

                    (8,380

)

 
  Selling, administrative and other operating costs

 

                               -

 

 

                          (972

)

(b) 
  Restructuring and severance costs

 

                         1,657

 

(a)

 

                            783

 

(c) 
  Impairment Costs

 

                              11

 

 

                            347

 

(d) 
Non-GAAP net loss

 $

                  (14,565

)

 

 $

                    (8,222

)

 
 

Six Months Ended

May 3, 2020

 

April 28, 2019

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

 $

                  (16,233

)

 

 $

                    (8,380

)

 
  Selling, administrative and other operating costs

 

                               -

 

 

 

                          (972

)

(b)
  Restructuring and severance costs

 

                         1,657

 

(a)

 

                            783

 

(c) 
  Impairment Costs

 

                              11

 

 

                            347

 

(d) 
  Depreciation and amortization

 

                         4,000

 

 

 

                         3,358

 

 
  Share-based compensation expense

 

                         1,019

 

 

 

                          (208

)

  Total other (income) expense, net 

 

                         2,325

 

 

 

                         1,951

 

 
  Provision for income taxes

 

                            218

 

 

                            506

 

Adjusted EBITDA

 $

                    (7,003

)

 

 $

                    (2,615

)

 
 
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 and continued efforts to reduce costs and to offset COVID-19 related revenue losses.

 

(b)

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.

 

(c)

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

 

(d)

Relates to exit of customer care solutions business.
 
 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months

Ended May 3, 2020

 

Three Months Ended April 28, 2019

 

 

As Reported

 

As Reported

FX impact

Business

Exited

MSP Delivery

Model Shift

Adjusted

Revenue
North American Staffing 

 $

                173,386

 

 $

                208,871

 

 $

                         -

 

 $

                     (266

)

 $

                  (4,825

)

 $

                203,780

 

International Staffing 

 

                     24,303

 

 

                     28,809

 

 

                        (826

)

 

                            -

 

 

                            -

 

 

                     27,983

 

North American MSP

 

                       9,745

 

 

                       9,579

 

 

                            -

 

 

                            -

 

 

                          122

 

 

                       9,701

 

Corporate and Other 

 

                          187

 

 

                       5,431

 

 

                            -

 

 

                     (5,257

)

 

                            -

 

 

                          174

 

Eliminations

 

                        (346

)

 

                        (620

)

 

                            -

 

 

                          266

 

 

                            -

 

 

                        (354

)

Total Revenue

 $

                207,275

 

 $

                252,070

 

 $

                     (826

)

 $

                  (5,257

)

 $

                  (4,703

)

 $

                241,284

 

% change

 

-14.1

%

 
 

Six Months Ended

May 3, 2020

 

Six Months Ended April 28, 2019

As Reported

 

As Reported

FX impact

Business

Exited

MSP Delivery

Model Shift

Adjusted

Revenue
North American Staffing 

 $

                355,781

 

 $

                420,719

 

 $

                         -

 

 $

                     (616

)

 $

                  (7,388

)

 $

                412,715

 

International Staffing 

 

                     50,526

 

 

                     55,075

 

 

                        (932

)

 

                            -

 

 

                            -

 

 

                     54,143

 

North American MSP

 

                     19,114

 

 

                     17,796

 

 

                            -

 

 

                            -

 

 

                          188

 

 

                     17,984

 

Corporate and Other 

 

                          390

 

 

                     13,277

 

 

                            -

 

 

                   (12,931

)

 

                            -

 

 

                          346

 

Eliminations

 

                        (770

)

 

                     (1,361

)

 

                            -

 

 

                          616

 

 

                            -

 

 

                        (745

)

Total Revenue

 $

                425,041

 

 $

                505,506

 

 $

                     (932

)

 $

                (12,931

)

 $

                  (7,200

)

 $

                484,443

 

% change

 

-12.3

%

 
 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended May 3, 2020

 

Three Months Ended April 28, 2019

 

 

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Income (Loss)
North American Staffing 

 $

                    2,576

 

 $

                         -

 

 $

                    2,576

 

 $

                    2,544

 

 $

                         -  

 $

                    2,544

 

International Staffing 

 

                          196

 

 

                            -

 

 

                          196

 

 

                          628

 

 

                              1

 

                          629

 

North American MSP

 

                          491

 

 

                            -

 

 

                          491

 

 

                       1,100

 

 

                            -  

 

                       1,100

 

Corporate and Other 

 

                     (7,626

)

 

                          (45

)

 

                     (7,671

)

 

                     (8,025

)

 

                          801

 

                     (7,224

)

Total Operating Loss

 $

                  (4,363

)

 $

                       (45

)

 $

                  (4,408

)

 $

                  (3,753

)

 $

                       802

 $

                  (2,951

)

 
 

Six Months Ended May 3, 2020

Six Months Ended April 28, 2019

As Reported

Business Exited

Adjusted

As Reported

Business Exited

Adjusted

Operating Income (Loss)
North American Staffing 

 $

                    2,675

 

 $

                         -

 

 $

                    2,675

 

 $

                    6,431

 

 $

                         -  

 $

                    6,431

 

International Staffing 

 

                          570

 

 

                            -

 

 

                          570

 

 

                          932

 

 

                              4

 

                          936

 

North American MSP

 

                       1,245

 

 

                            -

 

 

                       1,245

 

 

                       2,065

 

 

                            -  

 

                       2,065

 

Corporate and Other 

 

                   (18,180

)

 

                          (13

)

 

                   (18,193

)

 

                   (15,351

)

 

                          135

 

                   (15,216

)

Total Operating Loss

 $

                (13,690

)

 $

                       (13

)

 $

                (13,703

)

 $

                  (5,923

)

 $

                       139

 $

                  (5,784

)

 
 
 
 

GAAP to Non-GAAP Reconciliations

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended May 3, 2020

 

Three Months Ended April 28, 2019

 

 

As Reported

Business Exited

Adjusted

 

As Reported

Business Exited

Adjusted

Operating Loss
Gross Margin

 $

                  32,237

 

 $

                         -

 

 $

                  32,237

 

 $

                  36,257

 

 $

                       136

 

 $

                  36,393

 

Selling, administrative and other operating costs

 

                     36,189

 

 

                            -

 

 

                     36,189

 

 

                     38,939

 

 

                          (66

)

 

                     38,873

 

Restructuring and severance costs

 

                          411

 

 

                            45

 

 

                          456

 

 

                          724

 

 

                        (253

)

 

                          471

 

Impairment charges

 

                            -

 

 

                            -

 

 

                            -

 

 

                          347

 

 

                        (347

)

 

                            -

 

Total Operating Loss

 $

                  (4,363

)

 $

                       (45

)

 $

                  (4,408

)

 $

                  (3,753

)

 $

                       802

 

 $

                  (2,951

)

 
 

Six Months Ended May 3, 2020

Six Months Ended April 28, 2019

As Reported

Business Exited

Adjusted

As Reported

Business Exited

Adjusted

Operating Loss
Gross Margin

 $

                  63,664

 

 $

                         -

 

 $

                  63,664

 

 $

                  73,956

 

 $

                     (869

)

 $

                  73,087

 

Selling, administrative and other operating costs

 

                     75,686

 

 

                            -

 

 

                     75,686

 

 

                     78,749

 

 

                        (399

)

 

                     78,350

 

Restructuring and severance costs

 

                       1,657

 

 

                            13

 

 

                       1,670

 

 

                          783

 

 

                        (262

)

 

                          521

 

Impairment charges

 

                            11

 

 

                            -

 

 

                            11

 

 

                          347

 

 

                        (347

)

 

                            -

 

Total Operating Loss

 $

                (13,690

)

 $

                       (13

)

 $

                (13,703

)

 $

                  (5,923

)

 $

                       139

 

 $

                  (5,784

)

 
 
 

 

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