New York
|
001-9232
|
13- 5658129
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
50 Charles Lindbergh Blvd., Uniondale, New York
|
11553
|
(Address of principal executive offices)
|
(Zip Code)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a‑12)
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e‑4(c))
|
Item 2.02 |
Results of Operations and Financial Condition
|
Item 9.01 |
Financial Statements and Exhibits
|
(d) |
Exhibits
|
Exhibit No. |
Description of Exhibit
|
99.1 |
Press Release of Volt Information Sciences, Inc. dated March 6, 2019 announcing earnings for its fiscal first quarter ended January 27, 2019.
|
VOLT INFORMATION SCIENCES, INC.
|
|||
By
|
/s/ Paul Tomkins |
||
Paul Tomkins, Senior Vice President
and Chief Financial Officer
|
Exhibit No.
|
Description of Exhibit
|
|
● |
First quarter total Company net revenue of $253.4 million, up slightly year-over-year; On a same-store basis, which exclude net revenue contributed from a business exited during the past year and the effect of foreign exchange rate fluctuations, net revenue increased $1.8 million, or 0.7%, year-over-year
|
● |
First quarter North American Staffing segment net revenue of $211.8 million increased 2.7% year-over-year; North American Staffing segment operating income of $3.9 million compared with an operating loss of $0.6 million a year ago
|
● |
Total Company gross margins in the first quarter of 14.9% increased 70 basis points year-over-year
|
● |
Total Company selling, administrative and other operating costs in the first quarter of $39.8 million, declined 15.2% year-over-year
|
● |
Total Company net loss in the first quarter of $3.2 million improved significantly compared with net loss of $10.7 million a year ago
|
● |
Total Company adjusted EBITDA in the first quarter was a loss of $1.1 million compared with a loss of $9.1 million a year ago
|
Results of Operations
|
||||||||||||
(in thousands, except per share data)
|
||||||||||||
Three Months Ended
|
||||||||||||
January 27, 2019
|
October 28, 2018
|
January 28, 2018
|
||||||||||
Net revenue
|
$
|
253,436
|
$
|
264,805
|
$
|
253,338
|
||||||
Cost of services
|
215,737
|
220,797
|
217,329
|
|||||||||
Gross margin
|
37,699
|
44,008
|
36,009
|
|||||||||
Selling, administrative and other operating costs
|
39,810
|
41,261
|
46,938
|
|||||||||
Restructuring and severance costs
|
59
|
4,512
|
518
|
|||||||||
Impairment charges
|
-
|
351
|
-
|
|||||||||
Operating loss
|
(2,170
|
)
|
(2,116
|
)
|
(11,447
|
)
|
||||||
Interest income (expense), net
|
(746
|
)
|
(627
|
)
|
(782
|
)
|
||||||
Foreign exchange gain (loss), net
|
213
|
491
|
703
|
|||||||||
Other income (expense), net
|
(239
|
)
|
(252
|
)
|
(528
|
)
|
||||||
Loss before income taxes
|
(2,942
|
)
|
(2,504
|
)
|
(12,054
|
)
|
||||||
Income tax provision (benefit)
|
273
|
382
|
(1,360
|
)
|
||||||||
Net loss
|
$
|
(3,215
|
)
|
$
|
(2,886
|
)
|
$
|
(10,694
|
)
|
|||
Per share data:
|
||||||||||||
Basic:
|
||||||||||||
Net loss
|
$
|
(0.15
|
)
|
$
|
(0.14
|
)
|
$
|
(0.51
|
)
|
|||
Weighted average number of shares
|
21,080
|
21,072
|
21,029
|
|||||||||
Diluted:
|
||||||||||||
Net loss
|
$
|
(0.15
|
)
|
$
|
(0.14
|
)
|
$
|
(0.51
|
)
|
|||
Weighted average number of shares
|
21,080
|
21,072
|
21,029
|
|||||||||
Segment data:
|
||||||||||||
Net revenue:
|
||||||||||||
North American Staffing
|
$
|
211,848
|
$
|
220,540
|
$
|
206,235
|
||||||
International Staffing
|
26,266
|
27,289
|
29,579
|
|||||||||
North American MSP
|
8,217
|
8,208
|
8,480
|
|||||||||
Corporate and Other
|
7,846
|
9,708
|
10,247
|
|||||||||
Eliminations
|
(741
|
)
|
(940
|
)
|
(1,203
|
)
|
||||||
Net revenue
|
$
|
253,436
|
$
|
264,805
|
$
|
253,338
|
||||||
Operating income (loss):
|
||||||||||||
North American Staffing
|
$
|
3,887
|
$
|
8,197
|
$
|
(626
|
)
|
|||||
International Staffing
|
304
|
1,000
|
(98
|
)
|
||||||||
North American MSP
|
965
|
844
|
265
|
|||||||||
Corporate and Other
|
(7,326
|
)
|
(12,157
|
)
|
(10,988
|
)
|
||||||
Operating income (loss)
|
$
|
(2,170
|
)
|
$
|
(2,116
|
)
|
$
|
(11,447
|
)
|
|||
Work days
|
59
|
64
|
59
|
|||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
Three Months ended
|
||||||||
January 27, 2019
|
January 28, 2018
|
|||||||
Cash, cash equivalents and restricted cash beginning of the period
|
$
|
36,544
|
$
|
54,097
|
||||
Cash used in all other operating activities
|
(2,188
|
)
|
(8,625
|
)
|
||||
Changes in operating assets and liabilities
|
4,148
|
21,654
|
||||||
Net cash provided by operating activities
|
1,960
|
13,029
|
||||||
Purchases of property, equipment, and software
|
(1,698
|
)
|
(345
|
)
|
||||
Net cash provided by all other investing activities
|
(69
|
)
|
92
|
|||||
Net cash used in investing activities
|
(1,767
|
)
|
(253
|
)
|
||||
Net draw-down of borrowings
|
5,000
|
30,000
|
||||||
Debt issuance costs
|
(140
|
)
|
(1,327
|
)
|
||||
Net cash provided by financing activities
|
4,860
|
28,673
|
||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(429
|
)
|
112
|
|||||
Net increase in cash, cash equivalents and restricted cash
|
4,624
|
41,561
|
||||||
Cash, cash equivalents and restricted cash end of the period
|
$
|
41,168
|
$
|
95,658
|
||||
Cash paid during the period:
|
||||||||
Interest
|
$
|
801
|
$
|
926
|
||||
Income taxes
|
$
|
146
|
$
|
627
|
||||
Reconciliation of cash, cash equivalents and restricted cash end of the period:
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
32,925
|
$
|
53,868
|
||||
Restricted cash included in Restricted cash and short term investments
|
8,243
|
12,094
|
||||||
Restricted cash as collateral for borrowings included in Restricted cash and short term investments
|
-
|
29,696
|
||||||
Cash, cash equivalents and restricted cash, at end of period
|
$
|
41,168
|
$
|
95,658
|
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands, except share amounts)
|
||||||||
January 27, 2019
|
October 28, 2018
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
32,925
|
$
|
24,763
|
||||
Restricted cash and short-term investments
|
11,262
|
14,844
|
||||||
Trade accounts receivable, net of allowances of $31 and $759, respectively
|
150,339
|
157,445
|
||||||
Other current assets
|
6,658
|
7,444
|
||||||
TOTAL CURRENT ASSETS
|
201,184
|
204,496
|
||||||
Other assets, excluding current portion
|
7,941
|
7,808
|
||||||
Property, equipment and software, net
|
24,515
|
24,392
|
||||||
TOTAL ASSETS
|
$
|
233,640
|
$
|
236,696
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accrued compensation
|
$
|
25,203
|
$
|
27,120
|
||||
Accounts payable
|
26,442
|
33,498
|
||||||
Accrued taxes other than income taxes
|
17,218
|
15,275
|
||||||
Accrued insurance and other
|
25,688
|
23,335
|
||||||
Income taxes payable
|
1,224
|
1,097
|
||||||
TOTAL CURRENT LIABILITIES
|
95,775
|
100,325
|
||||||
Accrued insurance and other, excluding current portion
|
13,177
|
13,478
|
||||||
Deferred gain on sale of real estate, excluding current portion
|
21,730
|
22,216
|
||||||
Income taxes payable, excluding current portion
|
604
|
600
|
||||||
Deferred income taxes
|
509
|
510
|
||||||
Long-term debt
|
54,090
|
49,068
|
||||||
TOTAL LIABILITIES
|
185,885
|
186,197
|
||||||
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 - 21,191,030 and 21,179,068 shares, respectively
|
2,374
|
2,374
|
||||||
Paid-in capital
|
78,909
|
79,057
|
||||||
Retained earnings
|
6,743
|
9,738
|
||||||
Accumulated other comprehensive loss
|
(6,912
|
)
|
(7,070
|
)
|
||||
Treasury stock, at cost; 2,546,973 and 2,558,935 shares, respectively
|
(33,359
|
)
|
(33,600
|
)
|
||||
TOTAL STOCKHOLDERS' EQUITY
|
47,755
|
50,499
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
233,640
|
$
|
236,696
|
GAAP to Non-GAAP Reconciliations
|
||||||||
(in thousands)
|
||||||||
Three Months Ended
|
||||||||
January 27, 2019
|
January 28, 2018
|
|||||||
Reconciliation of GAAP net loss to Non-GAAP net loss:
|
||||||||
GAAP net loss
|
$
|
(3,215
|
)
|
$
|
(10,694
|
)
|
||
Selling, administrative and other operating costs
|
(486
|
) (a)
|
(486
|
) (a)
|
||||
Restructuring and severance costs
|
59
|
518
|
||||||
Income tax benefit
|
-
|
(1,052
|
) (b)
|
|||||
Non-GAAP net loss
|
$
|
(3,642
|
)
|
$
|
(11,714
|
)
|
||
Three Months Ended
|
||||||||
January 27, 2019
|
January 28, 2018
|
|||||||
Reconciliation of GAAP net loss to Adjusted EBITDA:
|
||||||||
GAAP net loss
|
$
|
(3,215
|
)
|
$
|
(10,694
|
)
|
||
Selling, administrative and other operating costs
|
(486
|
) (a)
|
(486
|
) (a)
|
||||
Restructuring and severance costs
|
59
|
518
|
||||||
Depreciation and amortization
|
1,603
|
1,852
|
||||||
Share-based compensation expense
|
(113
|
)
|
435
|
|||||
Total other (income) expense, net
|
772
|
607
|
||||||
Provision (benefit) for income taxes
|
273
|
(1,360
|
)
|
|||||
Adjusted EBITDA
|
$
|
(1,107
|
)
|
$
|
(9,128
|
)
|
Special item adjustments consist of the following:
|
||||
(a)
|
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.
|
||||
(b)
|
Relates to a discrete tax benefit resulting from the expiration of uncertain tax positions in Q1 2018.
|