New York
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001-9232
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13- 5658129
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||
(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number) |
(I.R.S. Employer
Identification No.)
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1065 Avenue of the Americas, New York
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10018
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(Address of Principal Executive Offices)
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(Zip Code)
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£
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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£
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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£
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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£
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit No.
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Description of Exhibit
|
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99.1
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Press release of Volt Information Sciences, Inc. dated January 15, 2015 announcing earnings for its fiscal year and fourth quarter ended November 2, 2014.
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VOLT INFORMATION SCIENCES, INC. | ||||
Date: January 16, 2015
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By: | /s/ James Whitney Mayhew | ||
James Whitney Mayhew, Senior Vice
|
||||
President and Chief Financial Officer | ||||
Exhibit No.
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Description of Exhibit
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99.1
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Press release of Volt Information Sciences, Inc. dated January 15, 2015 announcing earnings for its fiscal year and fourth quarter ended November 2, 2014.
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|
·
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Operating profit of $4.8 million in fiscal 2014 from a loss of $7.3 million in 2013
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|
·
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Proforma operating profit of $2.1 million in fiscal 2014 from a loss of $13.3 million in 2013
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·
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Exited several non-core businesses in 2014 to enhance profitability
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Twelve months ended November 2, 2014
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Twelve months ended November 3, 2013
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|||||||||||||||||||||||
Total
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Staffing Services
|
Other
|
Total
|
Staffing Services
|
Other
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Staffing service revenue
|
$ | 1,599,046 | $ | 1,599,046 | $ | - | $ | 1,899,723 | $ | 1,899,723 | $ | - | ||||||||||||
Other revenue
|
110,982 | - | 110,982 | 117,749 | - | 117,749 | ||||||||||||||||||
Net revenue
|
1,710,028 | 1,599,046 | 110,982 | 2,017,472 | 1,899,723 | 117,749 | ||||||||||||||||||
Expenses
|
||||||||||||||||||||||||
Direct cost of staffing services revenue
|
1,359,048 | 1,359,048 | - | 1,627,166 | 1,627,166 | - | ||||||||||||||||||
Cost of other revenue
|
92,440 | - | 92,440 | 94,519 | - | 94,519 | ||||||||||||||||||
Selling, administrative and other operating costs
|
231,104 | 212,471 | 18,633 | 267,969 | 246,964 | 21,005 | ||||||||||||||||||
Amortization of purchased intangible assets
|
181 | 101 | 80 | 511 | 34 | 477 | ||||||||||||||||||
Restructuring costs
|
2,010 | 1,431 | 579 | 781 | 781 | - | ||||||||||||||||||
Indirect tax recovery
|
- | - | - | (2,967 | ) | (2,967 | ) | - | ||||||||||||||||
Segment operating income (loss)
|
25,245 | 25,995 | (750 | ) | 29,493 | 27,745 | 1,748 | |||||||||||||||||
Corporate general and administrative
|
15,198 | 11,917 | ||||||||||||||||||||||
Restatement, investigations and remediation
|
5,261 | 24,828 | ||||||||||||||||||||||
Operating income (loss)
|
4,786 | (7,252 | ) | |||||||||||||||||||||
Other income (expense), net
|
(2,947 | ) | (2,569 | ) | ||||||||||||||||||||
Income tax provision
|
5,226 | 2,922 | ||||||||||||||||||||||
Net loss from continuing operations
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(3,387 | ) | (12,743 | ) | ||||||||||||||||||||
Loss from discontinued operations, net of taxes
|
(15,601 | ) | (18,132 | ) | ||||||||||||||||||||
Net loss
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$ | (18,988 | ) | $ | (30,875 | ) | ||||||||||||||||||
NON-GAAP PROFORMA
|
||||||||||||||||||||||||
Twelve months ended November 2, 2014
|
Twelve months ended November 3, 2013
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|||||||||||||||||||||||
Total
|
Staffing Services
|
Other
|
Total
|
Staffing Services
|
Other
|
|||||||||||||||||||
Net revenue
|
$ | 1,710,028 | $ | 1,599,046 | $ | 110,982 | $ | 2,017,472 | $ | 1,899,723 | $ | 117,749 | ||||||||||||
Recognition of previously unrecognized revenue
|
(5,313 | ) | (5,088 | ) | (225 | ) | (11,166 | ) | (11,166 | ) | - | |||||||||||||
Additions to unrecognized revenue
|
2,625 | 2,563 | 62 | 5,094 | 4,869 | 225 | ||||||||||||||||||
Net non-GAAP proforma adjustment
|
(2,688 | ) | (2,525 | ) | (163 | ) | (6,072 | ) | (6,297 | ) | 225 | |||||||||||||
Proforma net revenue
|
1,707,340 | 1,596,521 | 110,819 | 2,011,400 | 1,893,426 | 117,974 | ||||||||||||||||||
Expenses
|
||||||||||||||||||||||||
Direct cost of staffing services revenue
|
1,359,048 | 1,359,048 | - | 1,627,166 | 1,627,166 | - | ||||||||||||||||||
Cost of other revenue
|
92,440 | - | 92,440 | 94,519 | - | 94,519 | ||||||||||||||||||
Selling, administrative and other operating costs
|
231,104 | 212,471 | 18,633 | 267,969 | 246,964 | 21,005 | ||||||||||||||||||
Amortization of purchased intangible assets
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181 | 101 | 80 | 511 | 34 | 477 | ||||||||||||||||||
Restructuring costs
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2,010 | 1,431 | 579 | 781 | 781 | - | ||||||||||||||||||
Indirect tax recovery
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- | - | - | (2,967 | ) | (2,967 | ) | - | ||||||||||||||||
Proforma segment operating income (loss)
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22,557 | 23,470 | (913 | ) | 23,421 | 21,448 | 1,973 | |||||||||||||||||
Proforma operating income (loss)
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2,098 | (13,324 | ) | |||||||||||||||||||||
Proforma net loss from continuing operations
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$ | (6,075 | ) | $ | (18,815 | ) |
Three months ended November 2, 2014
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Three months ended November 3, 2013
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|||||||||||||||||||||||
Total
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Staffing Services
|
Other
|
Total
|
Staffing Services
|
Other
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Staffing service revenue
|
$ | 403,065 | $ | 403,065 | $ | - | $ | 492,784 | $ | 492,784 | $ | - | ||||||||||||
Other revenue
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26,606 | - | 26,606 | 35,024 | - | 35,024 | ||||||||||||||||||
Net revenue
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429,671 | 403,065 | 26,606 | 527,808 | 492,784 | 35,024 | ||||||||||||||||||
Expenses
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||||||||||||||||||||||||
Direct cost of staffing services revenue
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337,045 | 337,045 | - | 416,669 | 416,669 | - | ||||||||||||||||||
Cost of other revenue
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21,922 | - | 21,922 | 26,245 | - | 26,245 | ||||||||||||||||||
Selling, administrative and other operating costs
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56,440 | 51,301 | 5,139 | 66,951 | 60,346 | 6,605 | ||||||||||||||||||
Amortization of purchased intangible assets
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25 | 25 | - | 126 | 7 | 119 | ||||||||||||||||||
Restructuring costs
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533 | 155 | 378 | 222 | 222 | - | ||||||||||||||||||
Segment operating income (loss)
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13,706 | 14,539 | (833 | ) | 17,595 | 15,540 | 2,055 | |||||||||||||||||
Corporate general and administrative
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7,642 | 4,812 | ||||||||||||||||||||||
Restatement, investigations and remediation
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- | 2,462 | ||||||||||||||||||||||
Operating income
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6,064 | 10,321 | ||||||||||||||||||||||
Other income (expense), net
|
(391 | ) | (760 | ) | ||||||||||||||||||||
Income tax provision (benefit)
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1,164 | (340 | ) | |||||||||||||||||||||
Net income from continuing operations
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4,509 | 9,901 | ||||||||||||||||||||||
Loss from discontinued operations, net of taxes
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(2,448 | ) | (8,281 | ) | ||||||||||||||||||||
Net income
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$ | 2,061 | $ | 1,620 | ||||||||||||||||||||
NON-GAAP PROFORMA
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||||||||||||||||||||||||
Three months ended November 2, 2014
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Three months ended November 3, 2013
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|||||||||||||||||||||||
Total
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Staffing Services
|
Other
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Total
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Staffing Services
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Other
|
|||||||||||||||||||
Net revenue
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$ | 429,671 | $ | 403,065 | $ | 26,606 | $ | 527,808 | $ | 492,784 | $ | 35,024 | ||||||||||||
Recognition of previously unrecognized revenue
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(2,719 | ) | (2,635 | ) | (84 | ) | (7,396 | ) | (6,809 | ) | (587 | ) | ||||||||||||
Additions to unrecognized revenue
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2,621 | 2,563 | 58 | 5,055 | 4,939 | 116 | ||||||||||||||||||
Net non-GAAP proforma adjustment
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(98 | ) | (72 | ) | (26 | ) | (2,341 | ) | (1,870 | ) | (471 | ) | ||||||||||||
Proforma net revenue
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429,573 | 402,993 | 26,580 | 525,467 | 490,914 | 34,553 | ||||||||||||||||||
Expenses
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||||||||||||||||||||||||
Direct cost of staffing services revenue
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337,045 | 337,045 | - | 416,669 | 416,669 | - | ||||||||||||||||||
Cost of other revenue
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21,922 | - | 21,922 | 26,245 | - | 26,245 | ||||||||||||||||||
Selling, administrative and other operating costs
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56,440 | 51,301 | 5,139 | 66,951 | 60,346 | 6,605 | ||||||||||||||||||
Amortization of purchased intangible assets
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25 | 25 | - | 126 | 7 | 119 | ||||||||||||||||||
Restructuring costs
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533 | 155 | 378 | 222 | 222 | - | ||||||||||||||||||
Proforma segment operating income (loss)
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13,608 | 14,467 | (859 | ) | 15,254 | 13,670 | 1,584 | |||||||||||||||||
Proforma operating income
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5,966 | 7,980 | ||||||||||||||||||||||
Proforma net income from continuing operations
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$ | 4,411 | $ | 7,560 |
Twelve months ended
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||||||||
November 2,
2014
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November 3,
2013
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|||||||
Cash and cash equivalents, beginning of the period
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$ | 9,846 | $ | 24,415 | ||||
Cash used in connection with restatement, investigations and remediation costs
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(7,255 | ) | (37,292 | ) | ||||
Other changes in operating assets and liabilities
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33,898 | 24,422 | ||||||
Cash provided by (used in) all other operating activities
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8,937 | (1,050 | ) | |||||
Net cash provided by (used in) operating activities
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35,580 | (13,920 | ) | |||||
Net cash used in investing activities
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(1,281 | ) | (8,558 | ) | ||||
Net release of cash restricted as collateral for borrowings
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21,349 | 3,796 | ||||||
Net cash provided by (used in) all other financing activities
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(39,476 | ) | 21,499 | |||||
Net cash provided by (used in) financing activities
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(18,127 | ) | 25,295 | |||||
Effect of exchange rate changes on cash and cash equivalents
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(386 | ) | 1,376 | |||||
Net cash used in discontinued operations
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(17,513 | ) | (19,563 | ) | ||||
Net decrease in cash and cash equivalents
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(1,727 | ) | (15,370 | ) | ||||
Change in cash from discontinued operations
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986 | 801 | ||||||
Cash and cash equivalents, end of the period
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$ | 9,105 | $ | 9,846 | ||||
Cash paid during the period:
|
||||||||
Interest
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$ | 3,539 | $ | 2,925 | ||||
Income taxes
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$ | 4,948 | $ | 10,557 |
November 2, 2014
|
November 3, 2013
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
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$ | 9,105 | $ | 9,846 | ||||
Restricted cash and short-term investments
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32,436 | 53,500 | ||||||
Trade accounts receivable, net of allowances of $868 and $1,693, respectively
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248,101 | 282,571 | ||||||
Recoverable income taxes
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18,311 | 15,030 | ||||||
Prepaid insurance and other current assets
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26,255 | 32,821 | ||||||
Assets held for sale
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24,220 | 30,618 | ||||||
TOTAL CURRENT ASSETS
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358,428 | 424,386 | ||||||
Prepaid insurance and other assets, excluding current portion
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39,600 | 44,428 | ||||||
Property, equipment and software, net
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26,304 | 32,526 | ||||||
TOTAL ASSETS
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$ | 424,332 | $ | 501,340 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accrued compensation
|
$ | 41,182 | $ | 51,438 | ||||
Accounts payable
|
55,873 | 55,138 | ||||||
Accrued taxes other than income taxes
|
17,099 | 18,842 | ||||||
Accrued insurance and other
|
39,104 | 37,813 | ||||||
Deferred revenue, net, current portion
|
3,491 | 4,205 | ||||||
Short-term borrowings, including current portion of long-term debt
|
129,417 | 168,114 | ||||||
Liabilities held for sale
|
19,126 | 26,690 | ||||||
TOTAL CURRENT LIABILITIES
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305,292 | 362,240 | ||||||
Accrued insurance and other, excluding current portion
|
11,787 | 12,794 | ||||||
Deferred revenue, net, excluding current portion
|
87 | 46 | ||||||
Income taxes payable, excluding current portion
|
8,556 | 7,892 | ||||||
Long-term debt, excluding current portion
|
7,216 | 8,127 | ||||||
TOTAL LIABILITIES
|
332,938 | 391,099 | ||||||
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 - 23,610,103 and 23,536,769, respectively; Outstanding - 20,922,796 and 20,849,462, respectively
|
2,361 | 2,354 | ||||||
Paid-in capital
|
73,194 | 72,003 | ||||||
Retained earnings
|
64,119 | 83,007 | ||||||
Accumulated other comprehensive loss
|
(6,400 | ) | (5,243 | ) | ||||
Treasury stock, at cost; 2,687,307 shares
|
(41,880 | ) | (41,880 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY
|
91,394 | 110,241 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 424,332 | $ | 501,340 |