NOTE 21: Quarterly Financial Information (unaudited)

The following tables present certain unaudited consolidated quarterly financial information for each quarter in the fiscal years ended November 3, 2013 and October 28, 2012.

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended November 3, 2013 (in thousands, except per share amounts):


	Three Months Ended								Year Ended
	January 27, 2013		April 28, 2013		July 28, 2013		November 3, 2013		November 3, 2013
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
REVENUE:
Staffing services	$	474,362	$	476,729	$	455,848	$	492,784	$	1,899,723
Other revenue		45,843		42,995		48,365		54,011		191,214

NET REVENUE		520,205		519,724		504,213		546,795		2,090,937


EXPENSES:
Direct cost of staffing services revenue		411,993		413,116		390,432		418,824		1,634,365
Cost of other revenue		39,753		39,873		37,595		42,978		160,199
Selling, administrative and other operating costs		70,337		74,992		72,128		76,577		294,034
Amortization of purchased intangible assets		345		346		337		341		1,369
Restructuring costs		740		948		223		2,815		4,726
Restatement and associated investigations		13,820		7,387		1,159		2,462		24,828

TOTAL EXPENSES		536,988		536,662		501,874		543,997		2,119,521


OPERATING INCOME (LOSS)		(16,783)		(16,938)		2,339		2,798		(28,584)

OTHER INCOME (EXPENSE):
Interest income		572		104		85		151		912
Interest expense		(904)		(1,001)		(902)		(1,062)		(3,869)
Foreign exchange gain (loss), net		634		843		113		(486)		1,104
Other income (expense), net		(33)		114		(23)		(27)		31


INCOME (LOSS) BEFORE INCOME TAXES		(16,514)		(16,878)		1,612		1,374		(30,406)
Income tax provision (benefit)		576		583		(444)		(246)		469

NET INCOME (LOSS)	$	(17,090)	$	(17,461)	$	2,056	$	1,620	$	(30,875)


PER SHARE DATA:
Basic:
Net income (loss)	$	(0.82)	$	(0.84)	$	0.10	$	0.08	$	(1.48)
Weighted average number of shares		20,813		20,825		20,829		20,837		20,826

Diluted:
Net income (loss)	$	(0.82)	$	(0.84)	$	0.10	$	0.08	$	(1.48)
Weighted average number of shares		20,813		20,825		21,019		21,050		20,826

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended October 28, 2012 (in thousands, except per share amounts):


	Three Months Ended								Year Ended
	January 29, 2012		April 29, 2012		July 29, 2012		October 28, 2012		October 28, 2012
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
REVENUE:
Staffing services	$	479,217	$	521,278	$	508,154	$	518,952	$	2,027,601
Other revenue		63,876		52,165		49,878		52,607		218,526

NET REVENUE		543,093		573,443		558,032		571,559		2,246,127


EXPENSES:
Direct cost of staffing services revenue		415,868		441,341		441,124		440,600		1,738,933
Cost of other revenue		43,435		42,759		38,296		39,363		163,853
Selling, administrative and other operating costs		74,492		77,003		78,093		81,259		310,847
Amortization of purchased intangible assets		345		345		344		348		1,382
Gain on sale of building		-		-		-		(4,418)		(4,418)
Restatement and associated investigations		9,031		9,169		9,800		14,906		42,906

TOTAL EXPENSES		543,171		570,617		567,657		572,058		2,253,503


OPERATING INCOME (LOSS)		(78)		2,826		(9,625)		(499)		(7,376)

OTHER INCOME (EXPENSE):
Interest income		124		118		227		123		592
Interest expense		(903)		(899)		(936)		(926)		(3,664)
Foreign exchange gain (loss), net		455		(1,043)		774		(317)		(131)
Other expense, net		(93)		(124)		(121)		(295)		(633)


INCOME (LOSS) BEFORE INCOME TAXES		(495)		878		(9,681)		(1,914)		(11,212)
Income tax provision		402		331		1,560		98		2,391

NET INCOME (LOSS)	$	(897)	$	547	$	(11,241)	$	(2,012)	$	(13,603)


PER SHARE DATA:
Basic:
Net income (loss)	$	(0.04)	$	0.03	$	(0.54)	$	(0.10)	$	(0.65)
Weighted average number of shares		20,813		20,813		20,813		20,813		20,813

Diluted:
Net income (loss)	$	(0.04)	$	0.03	$	(0.54)	$	(0.10)	$	(0.65)
Weighted average number of shares		20,813		20,902		20,813		20,813		20,813

The following table presents selected Consolidated Balance Sheet data for each quarter for the fiscal year ended November 3, 2013 (in thousands):


	January 27, 2013		April 28, 2013		July 28, 2013		November 3, 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	25,504	$	35,910	$	21,389	$	11,114
Restricted cash		57,548		49,524		45,987		47,356
Short-term investments		5,783		5,954		6,196		6,144
Trade accounts receivable, net		296,967		294,346		286,416		293,305
Recoverable income taxes		17,369		16,438		17,645		17,150
Prepaid insurance		11,822		19,380		15,638		14,248
Other current assets		20,950		17,565		20,057		21,097


TOTAL CURRENT ASSETS		435,943		439,117		413,328		410,414
Prepaid insurance and other assets, excluding current portion		40,763		39,866		43,141		43,473
Property, equipment and software, net		37,540		36,315		36,072		37,324
Purchased intangible assets, net		10,211		9,752		9,230		9,101

TOTAL ASSETS	$	524,457	$	525,050	$	501,771	$	500,312


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accrued compensation	$	54,346	$	53,639	$	54,126	$	53,474
Accounts payable		79,700		75,558		56,584		57,165
Accrued taxes other than income taxes		31,406		35,006		27,428		19,520
Accrued insurance and other		37,949		39,124		36,410		44,133
Deferred revenue, net, current portion		23,699		25,328		21,307		13,335
Short-term borrowings, including current portion of long-term debt		135,825		155,771		165,755		168,114


TOTAL CURRENT LIABILITIES		362,925		384,426		361,610		355,741
Accrued insurance, excluding current portion		11,140		9,678		8,554		13,003
Deferred revenue, net, excluding current portion		3,309		2,541		1,968		2,839
Income taxes payable, excluding current portion		10,424		10,424		10,424		8,659
Deferred income taxes		2,760		2,762		2,764		1,702
Long-term debt, excluding current portion		8,831		8,624		8,414		8,127

TOTAL LIABILITIES		399,389		418,455		393,734		390,071
Commitments and contingencies

STOCKHOLDERS’ EQUITY
Preferred stock		-		-		-		-
Common stock		2,350		2,351		2,352		2,354
Paid-in capital		71,719		71,891		71,972		72,003
Retained earnings		96,726		79,288		81,387		83,007
Accumulated other comprehensive loss		(3,847)		(5,055)		(5,794)		(5,243)
Treasury stock, at cost		(41,880)		(41,880)		(41,880)		(41,880)

TOTAL STOCKHOLDERS’ EQUITY		125,068		106,595		108,037		110,241


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	524,457	$	525,050	$	501,771	$	500,312

The following table presents selected Consolidated Balance Sheet data for each quarter for the fiscal year ended October 28, 2012 (in thousands):


	January 29, 2012		April 29, 2012		July 29, 2012		October 28, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	46,399	$	28,425	$	33,118	$	26,483
Restricted cash		80,654		87,424		73,681		61,927
Short-term investments		5,370		5,608		5,482		5,611
Trade accounts receivable, net		291,831		340,145		328,189		334,947
Recoverable income taxes		13,100		13,564		13,775		13,884
Prepaid insurance		10,855		17,140		12,372		11,138
Other current assets		19,898		17,951		18,861		15,406


TOTAL CURRENT ASSETS		468,107		510,257		485,478		469,396
Prepaid insurance and other assets, excluding current portion		35,249		31,140		36,082		38,479
Property, equipment and software, net		41,768		40,632		40,473		39,052
Purchased intangible assets, net		11,550		11,402		10,732		10,645

TOTAL ASSETS	$	556,674	$	593,431	$	572,765	$	557,572

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accrued compensation	$	54,666	$	56,537	$	58,279	$	58,183
Accounts payable		98,850		110,244		92,206		86,523
Accrued taxes other than income taxes		29,555		37,339		30,901		29,361
Accrued insurance and other		40,362		36,859		34,770		34,927
Deferred revenue, net, current portion		30,357		30,704		31,649		24,240
Short-term borrowings, including current portion of long-term debt		105,529		125,831		144,246		145,727


TOTAL CURRENT LIABILITIES		359,319		397,514		392,051		378,961
Accrued insurance, excluding current portion		8,981		7,914		6,976		9,010
Deferred revenue, net, excluding current portion		10,261		8,300		6,452		4,268
Income taxes payable, excluding current portion		9,339		9,339		9,339		10,424
Deferred income taxes		3,494		3,493		3,531		2,759
Long-term debt, excluding current portion		9,615		9,425		9,231		9,033

TOTAL LIABILITIES		401,009		435,985		427,580		414,455
Commitments and contingencies

STOCKHOLDERS’ EQUITY
Preferred stock		-		-		-		-
Common stock		2,350		2,350		2,350		2,350
Paid-in capital		71,518		71,623		71,618		71,591
Retained earnings		126,270		126,944		115,771		113,795
Accumulated other comprehensive loss		(2,593)		(1,591)		(2,674)		(2,739)
Treasury stock, at cost		(41,880)		(41,880)		(41,880)		(41,880)

TOTAL STOCKHOLDERS’ EQUITY		155,665		157,446		145,185		143,117

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	556,674	$	593,431	$	572,765	$	557,572

The following table presents selected Consolidated Cash Flows data for each quarter for the fiscal year ended November 3, 2013 (in thousands):


	Three Months Ended								Year ended
	January 27, 2013		April 28, 2013		July 28, 2013		November 3, 2013		November 3, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(17,090)	$	(17,461)	$	2,056	$	1,620	$	(30,875)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		4,154		3,676		3,550		3,551		14,931
Provisions for doubtful accounts and sales allowances		56		13		307		3		379
Unrealized foreign currency exchange gain		(574)		(965)		(285)		518		(1,306)
(Gain) loss on dispositions of property, equipment and software		12		47		(148)		(20)		(109)
Deferred income tax provision (benefit)		(1,003)		(954)		221		54		(1,682)
Share-based compensation expense		129		172		82		33		416
Change in operating assets and liabilities:
Trade accounts receivable		38,867		2,862		6,557		(7,214)		41,072
Restricted cash related to customer contracts		4,403		3,731		3,396		(755)		10,775
Prepaid insurance and other assets		(5,850)		(2,143)		(2,652)		2,848		(7,797)
Accounts payable		(6,107)		(4,360)		(19,059)		561		(28,965)
Accrued expenses		2,593		919		(9,316)		(954)		(6,758)
Deferred revenue, net		(1,897)		791		(4,625)		(9,138)		(14,869)
Other liabilities		(140)		—		—		1,103		963
Income taxes		(5,767)		1,497		(1,768)		(1,226)		(7,264)

Net cash provided by (used in) operating activities		11,786		(12,175)		(21,684)		(9,016)		(31,089)

CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments		550		457		549		695		2,251
Purchases of investments		(505)		(438)		(542)		(409)		(1,894)
Proceeds from sales of property, equipment and software		187		15		43		67		312
Purchases of property, equipment, and software		(2,391)		(1,760)		(2,765)		(4,706)		(11,622)

Net cash used in investing activities		(2,159)		(1,726)		(2,715)		(4,353)		(10,953)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in cash restricted as collateral for borrowings		(24)		4,293		141		(614)		3,796
Net change in short-term borrowings		(9,935)		19,937		9,975		2,357		22,334
Repayment of long-term debt		(209)		(174)		(187)		(265)		(835)

Net cash provided by (used in) financing activities		(10,168)		24,056		9,929		1,478		25,295

Effect of exchange rate changes on cash and cash equivalents		(438)		251		(51)		1,616		1,378
Net increase (decrease) in cash and cash equivalents		(979)		10,406		(14,521)		(10,275)		(15,369)
Cash and cash equivalents, beginning of period		26,483		25,504		35,910		21,389		26,483

Cash and cash equivalents, end of period	$	25,504	$	35,910	$	21,389	$	11,114	$	11,114

Cash paid during the year
Interest expense	$	708	$	703	$	703	$	811	$	2,925
Income taxes	$	8,253	$	665	$	905	$	999	$	10,822

The following table presents selected Consolidated Cash Flows data for each quarter for the fiscal year ended October 28, 2012 (in thousands):


	Three Months Ended								Year ended
	January 29, 2012		April 29, 2012		July 29, 2012		October 28, 2012		October 28, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(897)	$	547	$	(11,241)	$	(2,012)	$	(13,603)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		4,354		4,075		4,022		4,062		16,513
Provisions for doubtful accounts and sales allowances		(138)		5		333		(86)		114
Unrealized foreign currency exchange loss (gain)		475		8		(427)		216		272
Gain on dispositions of property, equipment and software		(107)		(32)		(367)		(4,392)		(4,898)
Deferred income tax provision (benefit)		269		203		1,348		(14)		1,806
Share-based compensation expense		54		105		(5)		(27)		127
Change in operating assets and liabilities:
Trade accounts receivable		28,558		(48,654)		11,663		(6,286)		(14,719)
Restricted cash related to customer contracts		(5,167)		(6,752)		13,451		12,082		13,614
Prepaid insurance and other assets		28		(84)		(3,864)		2,363		(1,557)
Accounts payable		(851)		11,265		(17,865)		(5,618)		(13,069)
Accrued expenses		3,854		4,969		(5,809)		(1,307)		1,707
Deferred revenue, net		(14,262)		(1,700)		(779)		(9,686)		(26,427)
Other liabilities		(79)		(54)		44		10		(79)
Income taxes		(682)		(588)		(271)		1,303		(238)

Net cash provided by (used in) operating activities		15,409		(36,687)		(9,767)		(9,392)		(40,437)

CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments		718		358		399		445		1,920
Purchases of investments		(505)		(360)		(389)		(442)		(1,696)
Acquisitions, net		(1,822)		-		-		-		(1,822)
Proceeds from sales of property, equipment and software		485		375		1,379		5,419		7,658
Purchases of property, equipment, and software		(2,950)		(2,960)		(4,627)		(3,165)		(13,702)

Net cash provided by (used in) investing activities		(4,074)		(2,587)		(3,238)		2,257		(7,642)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in cash restricted as collateral for borrowings		(1,337)		(18)		292		(328)		(1,391)
Net change in short-term borrowings		(7,708)		20,312		18,415		1,435		32,454
Repayment of long-term debt		(172)		(175)		(178)		(183)		(708)

Net cash provided by (used in) financing activities		(9,217)		20,119		18,529		924		30,355


Effect of exchange rate changes on cash and cash equivalents		(287)		1,181		(831)		(424)		(360)
Net increase (decrease) in cash and cash equivalents		1,832		(17,974)		4,693		(6,635)		(18,084)
Cash and cash equivalents, beginning of period		44,567		46,399		28,425		33,118		44,567

Cash and cash equivalents, end of period	$	46,399	$	28,425	$	33,118	$	26,483	$	26,483

Cash paid during the year
Interest expense	$	697	$	697	$	740	$	732	$	2,866
Income taxes	$	875	$	833	$	786	$	1,246	$	3,740