Westaff (NASDAQ:WSTF)
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Westaff, Inc. (NASDAQ:WSTF) a leading provider of staffing services,
today reported that it has entered into a Subordinated Loan Agreement
with its principal stockholder, DelStaff, LLC (“DelStaff”).
On August 25, 2008, the Company entered into a Subordinated Loan, which
provides a loan facility allowing the Company to request loan advances
in an aggregate principal amount of up to $3.0 million.
“This loan from DelStaff is positive evidence
of the support we have from our largest investor,”
commented Westaff CEO and Chairman Michael T. Willis, “and
it provides us with the access to capital so we can continue our focus
on growth and expansion for the immediate future.”
The Subordinated Loan which may be used for working capital and general
business purposes is available immediately and matures on August 15,
2009.
“We have an excellent relationship with
DelStaff and they continue to be a great supporter of our Company,”
Mr. Willis concluded.
About Westaff
Westaff provides staffing services and employment opportunities for
businesses in global markets. Westaff annually employs in excess of
125,000 people and services more than 20,000 client accounts from 204
offices located throughout the United States, Australia and New Zealand.
For more information, please visit the company Web site at www.westaff.com.
This press release contains forward-looking statements within the
meaning of the U.S. securities laws. Forward-looking statements in this
release are generally identified by words such as “expects,”
“believes,” “will,”
“should” and
similar expressions that are intended to identify forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement. Forward-looking statements contained herein
include, but are not limited to, statements regarding (i) Westaff's
expectations regarding the company's growth prospects; (ii) Westaff’s
expectation that it will continue its plans for growth and expansion;
(iii) that Westaff’s relationship with
DelStaff will continue; and (iv) that Westaff will have access to
capital under the Subordinated Loan Agreement The forward-looking
statements contained herein involve a number of assumptions, risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by these forward-looking statements. Many of
these risks and uncertainties cannot be controlled by the Company. These
risks and uncertainties include, but are not limited to: an intensely
priced competitive market; Westaff’s ability
to continue to obtain a forbearance or that such forbearance would be on
terms acceptable to Westaff; our significant working capital needs and
our ability to borrow to meet those needs; our ability to borrow under
our credit facilities and our compliance with their debt covenants;
variability of the amount of collateral that we are required to maintain
to support our workers’ compensation
obligation; the sufficiency of our workers’
compensation claims reserve; variability of employee-related costs,
including workers’ compensation liabilities;
possible adverse effects of fluctuations in the general economy; our
ability to collect on our accounts receivable; risks related to
franchise agent operations; risks related to international operations
and fluctuating exchange rates; reliance on executive management and key
personnel; our ability to attract and retain the services of qualified
temporary personnel; the ability of our customers to terminate our
service agreement on short notice; variability of the cost of
unemployment insurance for our temporary employees; any difficulty with
our information technology system; government regulation; potential
exposure to employment-related claims; the volatility of the Company’s
stock price; increased regulatory compliance costs; and litigation and
other claims. Additional information concerning the risks and
uncertainties listed above, and other factors you may wish to consider,
is contained in the Company’s filings with
the Securities and Exchange Commission, including the Company’s
most recent Annual Report on Form 10-K for the year ended November 3,
2007 and Quarterly Report on Form 10-Q for the quarterly period ended
July 12, 2008.
Forward-looking statements are based on the beliefs and assumptions of
the Company's management and on currently available information. The
Company undertakes no responsibility to publicly update or revise any
forward-looking statement except as required by applicable laws and
regulations.