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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Volt Information Sciences Inc | AMEX:VOLT | AMEX | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 5.99 | 0 | 00:00:00 |
From Feb 2020 to Feb 2025
Reports Year-Over-Year Revenue Growth and Positive Net Income for both the 4th Quarter and Fiscal Year 2021
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
Fiscal 2021 Summary
* 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220112005693/en/
Investor Relations Contacts: Volt Information Sciences, Inc. voltinvest@volt.com
Joe Noyons Three Part Advisors jnoyons@threepa.com 817-778-8424
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