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))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.10
|
VISI
|
NYSE American
|
Exhibit No.
|
Description of
Exhibit
|
99.1
|
Press Release of Volt Information Sciences, Inc. dated June 5, 2019 announcing earnings for its fiscal second quarter
ended April 28, 2019.
|
VOLT INFORMATION SCIENCES, INC. | ||||
By: | /s/ Paul Tomkins |
|||
Paul Tomkins, Senior Vice President and Chief Financial Officer |
||||
|
||||
Exhibit No.
|
Description of
Exhibit
|
● |
Second quarter total Company net revenue decreased 4.2% year-over-year, or 3.3% on a same-store basis (excluding currency fluctuations and a business
exited)
|
● |
Second quarter gross margin percentage improved 20 basis points, the third consecutive quarter of year-over-year margin growth
|
● |
Second quarter total Company net loss was $5.2 million, an improvement of 32.8% when compared to a year ago primarily driven by the increase in gross
margin, as well as a 9.3% reduction in selling, administrative and other operating costs
|
● |
Second quarter total Company Adjusted EBITDA improved 58.9% when compared to a year ago
|
● |
For the six months ended April 28, 2019, total Company net revenue was $505.5 million, a decrease of 2.1%, year-over-year, or 1.4% on a same-store basis;
Net loss for the six-month period was $8.4 million, an improvement of 54.4%, year-over-year
|
● |
Implemented further organizational enhancements to reduce costs and improve operational efficiencies and service delivery in the North American Staffing
segment; commenced decommissioning of the Company’s Customer Care Solutions business unit
|
Results of Operations
|
||||||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
April 28, 2019
|
January 27, 2019
|
April 29, 2018
|
April 28, 2019
|
April 29, 2018
|
||||||||||||||||
Net revenue
|
$
|
252,070
|
$
|
253,436
|
$
|
263,219
|
$
|
505,506
|
$
|
516,557
|
||||||||||
Cost of services
|
215,813
|
215,737
|
225,918
|
431,550
|
443,247
|
|||||||||||||||
Gross margin
|
36,257
|
37,699
|
37,301
|
73,956
|
73,310
|
|||||||||||||||
Selling, administrative and other operating costs
|
38,939
|
39,810
|
42,916
|
78,749
|
89,854
|
|||||||||||||||
Restructuring and severance costs
|
724
|
59
|
104
|
783
|
622
|
|||||||||||||||
Impairment charges
|
347
|
-
|
155
|
347
|
155
|
|||||||||||||||
Operating loss
|
(3,753
|
)
|
(2,170
|
)
|
(5,874
|
)
|
(5,923
|
)
|
(17,321
|
)
|
||||||||||
Interest income (expense), net
|
(699
|
)
|
(746
|
)
|
(631
|
)
|
(1,445
|
)
|
(1,413
|
)
|
||||||||||
Foreign exchange gain (loss), net
|
(314
|
)
|
213
|
(497
|
)
|
(101
|
)
|
206
|
||||||||||||
Other income (expense), net
|
(166
|
)
|
(239
|
)
|
(55
|
)
|
(405
|
)
|
(583
|
)
|
||||||||||
Loss before income taxes
|
(4,932
|
)
|
(2,942
|
)
|
(7,057
|
)
|
(7,874
|
)
|
(19,111
|
)
|
||||||||||
Income tax provision (benefit)
|
233
|
273
|
630
|
506
|
(730
|
)
|
||||||||||||||
Net loss
|
$
|
(5,165
|
)
|
$
|
(3,215
|
)
|
$
|
(7,687
|
)
|
$
|
(8,380
|
)
|
$
|
(18,381
|
)
|
|||||
Per share data:
|
||||||||||||||||||||
Basic:
|
||||||||||||||||||||
Net loss
|
$
|
(0.24
|
)
|
$
|
(0.15
|
)
|
$
|
(0.37
|
)
|
$
|
(0.40
|
)
|
$
|
(0.87
|
)
|
|||||
Weighted average number of shares
|
21,082
|
21,080
|
21,032
|
21,081
|
21,030
|
|||||||||||||||
Diluted:
|
||||||||||||||||||||
Net loss
|
$
|
(0.24
|
)
|
$
|
(0.15
|
)
|
$
|
(0.37
|
)
|
$
|
(0.40
|
)
|
$
|
(0.87
|
)
|
|||||
Weighted average number of shares
|
21,082
|
21,080
|
21,032
|
21,081
|
21,030
|
|||||||||||||||
Segment data:
|
||||||||||||||||||||
Net revenue:
|
||||||||||||||||||||
North American Staffing
|
$
|
208,871
|
$
|
211,848
|
$
|
218,090
|
$
|
420,719
|
$
|
424,325
|
||||||||||
International Staffing
|
28,809
|
26,266
|
31,904
|
55,075
|
61,483
|
|||||||||||||||
North American MSP
|
9,579
|
8,217
|
6,339
|
17,796
|
14,819
|
|||||||||||||||
Corporate and Other
|
5,431
|
7,846
|
7,817
|
13,277
|
18,064
|
|||||||||||||||
Eliminations
|
(620
|
)
|
(741
|
)
|
(931
|
)
|
(1,361
|
)
|
(2,134
|
)
|
||||||||||
Net revenue
|
$
|
252,070
|
$
|
253,436
|
$
|
263,219
|
$
|
505,506
|
$
|
516,557
|
||||||||||
Operating income (loss):
|
||||||||||||||||||||
North American Staffing
|
$
|
2,544
|
$
|
3,887
|
$
|
1,571
|
$
|
6,431
|
$
|
945
|
||||||||||
International Staffing
|
628
|
304
|
818
|
932
|
720
|
|||||||||||||||
North American MSP
|
1,100
|
965
|
417
|
2,065
|
682
|
|||||||||||||||
Corporate and Other
|
(8,025
|
)
|
(7,326
|
)
|
(8,680
|
)
|
(15,351
|
)
|
(19,668
|
)
|
||||||||||
Operating loss
|
$
|
(3,753
|
)
|
$
|
(2,170
|
)
|
$
|
(5,874
|
)
|
$
|
(5,923
|
)
|
$
|
(17,321
|
)
|
|||||
Work days
|
65
|
59
|
65
|
124
|
124
|
Condensed Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
Six Months ended
|
||||||||
April 28, 2019
|
April 29, 2018
|
|||||||
Cash, cash equivalents and restricted cash beginning of the period
|
$
|
36,544
|
$
|
54,097
|
||||
Cash used in all other operating activities
|
(6,239
|
)
|
(14,314
|
)
|
||||
Changes in operating assets and liabilities
|
15,697
|
14,792
|
||||||
Net cash provided by operating activities
|
9,458
|
478
|
||||||
Purchases of property, equipment, and software
|
(4,058
|
)
|
(1,298
|
)
|
||||
Net cash (used in) provided by all other investing activities
|
(21
|
)
|
164
|
|||||
Net cash used in investing activities
|
(4,079
|
)
|
(1,134
|
)
|
||||
Net draw-down of borrowings
|
5,000
|
-
|
||||||
Debt issuance costs
|
(177
|
)
|
(1,411
|
)
|
||||
Net cash used in all other financing activities
|
(40
|
)
|
(60
|
)
|
||||
Net cash provided by (used in) financing activities
|
4,783
|
(1,471
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(249
|
)
|
(571
|
)
|
||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
9,913
|
(2,698
|
)
|
|||||
Cash, cash equivalents and restricted cash end of the period
|
$
|
46,457
|
$
|
51,399
|
||||
Cash paid during the period:
|
||||||||
Interest
|
$
|
1,560
|
$
|
1,482
|
||||
Income taxes
|
$
|
216
|
$
|
1,132
|
||||
Reconciliation of cash, cash equivalents and restricted cash end of the period:
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
39,689
|
$
|
34,177
|
||||
Restricted cash included in Restricted cash and short term investments
|
6,768
|
17,222
|
||||||
Cash, cash equivalents and restricted cash, at end of period
|
$
|
46,457
|
$
|
51,399
|
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands, except share amounts)
|
||||||||
April 28, 2019
|
October 28, 2018
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
39,689
|
$
|
24,763
|
||||
Restricted cash and short-term investments
|
9,925
|
14,844
|
||||||
Trade accounts receivable, net of allowances of $104 and $759, respectively
|
139,213
|
157,445
|
||||||
Other current assets
|
5,659
|
7,444
|
||||||
TOTAL CURRENT ASSETS
|
194,486
|
204,496
|
||||||
Other assets, excluding current portion
|
7,779
|
7,808
|
||||||
Property, equipment and software, net
|
24,880
|
24,392
|
||||||
TOTAL ASSETS
|
$
|
227,145
|
$
|
236,696
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accrued compensation
|
$
|
23,403
|
$
|
27,120
|
||||
Accounts payable
|
26,183
|
33,498
|
||||||
Accrued taxes other than income taxes
|
18,316
|
15,275
|
||||||
Accrued insurance and other
|
28,217
|
23,335
|
||||||
Income taxes payable
|
1,404
|
1,097
|
||||||
TOTAL CURRENT LIABILITIES
|
97,523
|
100,325
|
||||||
Accrued insurance and other, excluding current portion
|
10,816
|
13,478
|
||||||
Deferred gain on sale of real estate, excluding current portion
|
21,244
|
22,216
|
||||||
Income taxes payable, excluding current portion
|
608
|
600
|
||||||
Deferred income taxes
|
509
|
510
|
||||||
Long-term debt
|
54,169
|
49,068
|
||||||
TOTAL LIABILITIES
|
184,869
|
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 - 21,211,828 and 21,179,068 shares, respectively
|
2,374
|
2,374
|
||||||
Paid-in capital
|
77,931
|
79,057
|
||||||
(Accumulated deficit) retained earnings
|
(656
|
)
|
9,738
|
|||||
Accumulated other comprehensive loss
|
(7,091
|
)
|
(7,070
|
)
|
||||
Treasury stock, at cost; 2,526,175 and 2,558,935 shares, respectively
|
(30,282
|
)
|
(33,600
|
)
|
||||
TOTAL STOCKHOLDERS' EQUITY
|
42,276
|
50,499
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
227,145
|
$
|
236,696
|
|
||||||||
|
GAAP to Non-GAAP Reconciliations | ||||||||
(in thousands) | ||||||||
Three Months Ended |
||||||||
April 28, 2019 |
April 29, 2018 |
|||||||
Reconciliation of GAAP net loss to Non-GAAP net loss: | ||||||||
GAAP net loss
|
$
|
(5,165
|
)
|
$
|
(7,687
|
)
|
||
Selling, administrative and other operating costs
|
(486
|
) (a)
|
(486
|
) (a)
|
||||
Restructuring and severance costs
|
724
|
104
|
||||||
Impairment charge
|
347
|
(b) |
155
|
(c) | ||||
Non-GAAP net loss
|
$
|
(4,580
|
)
|
$
|
(7,914
|
)
|
||
Three Months Ended
|
||||||||
April 28, 2019
|
April 29, 2018
|
|||||||
Reconciliation of GAAP net loss to Adjusted EBITDA:
|
||||||||
GAAP net loss
|
$
|
(5,165
|
)
|
$
|
(7,687
|
)
|
||
Selling, administrative and other operating costs
|
(486
|
) (a)
|
(486
|
) (a)
|
||||
Restructuring and severance costs
|
724
|
104
|
||||||
Impairment charge
|
347
|
(b) |
155
|
(c) | ||||
Depreciation and amortization
|
1,755
|
1,874
|
||||||
Share-based compensation
|
(95
|
)
|
557
|
|||||
Total other (income) expense, net
|
1,179
|
1,183
|
||||||
Provision for income taxes
|
233
|
630
|
||||||
Adjusted EBITDA
|
$
|
(1,508
|
)
|
$
|
(3,670
|
)
|
||
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 exit of customer care solutions business.
|
(c)
|
Relates to previously purchased software module that is no longer in use.
|
GAAP to Non-GAAP Reconciliations
|
||||||||
(in thousands)
|
||||||||
Six Months Ended
|
||||||||
April 28, 2019
|
April 29, 2018
|
|||||||
Reconciliation of GAAP net loss to Non-GAAP net loss:
|
||||||||
GAAP net loss
|
$
|
(8,380
|
)
|
$
|
(18,381
|
)
|
||
Selling, administrative and other operating costs
|
(972
|
) (a)
|
(972
|
) (a)
|
||||
Restructuring and severance costs
|
783
|
622
|
||||||
Impairment charge
|
347
|
(b) |
155
|
(c) | ||||
Income tax benefit
|
-
|
(1,052
|
) (d)
|
|||||
Non-GAAP net loss
|
$
|
(8,222
|
)
|
$
|
(19,628
|
)
|
||
Six Months Ended
|
||||||||
April 28, 2019
|
April 29, 2018
|
|||||||
Reconciliation of GAAP net loss to Adjusted EBITDA:
|
||||||||
GAAP net loss
|
$
|
(8,380
|
)
|
$
|
(18,381
|
)
|
||
Selling, administrative and other operating costs
|
(972
|
) (a)
|
(972
|
) (a)
|
||||
Restructuring and severance costs
|
783
|
622
|
||||||
Impairment charge
|
347
|
(b) |
155
|
(c) | ||||
Depreciation and amortization
|
3,358
|
3,726
|
||||||
Share-based compensation
|
(208
|
)
|
992
|
|||||
Total other (income) expense, net
|
1,951
|
1,790
|
||||||
Provision (benefit) for income taxes
|
506
|
(730
|
)
|
|||||
Adjusted EBITDA
|
$
|
(2,615
|
)
|
$
|
(12,798
|
)
|
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 exit of customer care solutions business.
|
(c)
|
Relates to previously purchased software module that is no longer in use.
|
(d) |
Relates to a discrete tax benefit resulting from the expiration of uncertain tax positions in Q1 2018. |
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