VOLT 8-K
Tema Electrification ETF (VOLT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.02 | Results of Operations and Financial Condition |
On January 12, 2022, Volt Information Sciences, Inc. issued a press release announcing earnings for its fiscal year ended October 31, 2021. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit No. | Description of Exhibit | |
| 99.1 | Press Release of Volt Information Sciences, Inc. dated January 12, 2022 announcing earnings for its fiscal year ended October 31, 2021 | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VOLT INFORMATION SCIENCES, INC. | ||
| By | /s/ Herbert M. Mueller | |
Herbert M. Mueller, Senior Vice President and Chief Financial Officer | ||
Date: January 12, 2022
EXHIBIT INDEX
| Exhibit No. | Description of Exhibit |
| 99.1 | Press Release of Volt Information Sciences, Inc. dated January 12, 2022 announcing earnings for its fiscal year ended October 31, 2021 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
Exhibit 99.1
Volt Information Sciences, Inc. Reports Fourth Quarter and
Fiscal 2021 Financial Results
Reports Year-Over-Year Revenue Growth and Positive Net Income for both the 4thQuarter and Fiscal Year 2021
Orange, CA, January 12, 2022 -- (BUSINESS WIRE) -- Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN: VOLT) a global provider of staffing services, today announced financial results for the fourth quarter and fiscal year ended October 31, 2021.
Fourth Quarter 2021 Summary
| · | Revenue was $227.8 million, a 7.9% increase compared to the fourth quarter of fiscal 2020; Adjusted Revenue* increased 7.7%. |
| · | Gross Margin increased 60 basis points year over year to 16.8%. |
| · | GAAP Operating Income was $2.3 million, a $13.8 million improvement compared to the prior-year quarter; Adjusted Operating Income*, excluding impairment and restructuring charges, was $3.5 million. |
| · | GAAP EPS improved to $0.06 per diluted share, compared to a loss of $0.58 per share in the fourth quarter of fiscal 2020; Adjusted EPS* was $0.11 per diluted share. |
| · | Adjusted EBITDA* was $6.2 million, an increase of $0.3 million year over year. |
Fiscal 2021 Summary
| · | Revenue was $885.4 million, a 7.7% increase compared to fiscal 2020; Adjusted Revenue* increased 7.1%. |
| · | Gross Margin improved 60 basis points year over year to 16.2%. |
| · | GAAP Operating Income was $4.8 million, a $34.2M improvement compared to the prior fiscal year; Adjusted operating income, excluding impairment and restructuring charges, was $8.1 million in fiscal 2021 compared to an operating loss of $9.8 million in fiscal 2020. |
| · | GAAP EPS improved to $0.06 per diluted share, compared to a loss of $1.56 per share in fiscal 2020; Adjusted EPS* was $0.21 per diluted share. |
| · | Adjusted EBITDA was $17.8 million compared to ($0.1) million in the prior year. |
* Adjusted Revenue, Adjusted Operating Income (Loss), Adjusted EPS and Adjusted EBITDA are Non-GAAP measures described and defined below.
“Our performance in the fourth quarter and fiscal 2021 reflects the successful and continued execution of our strategic initiatives. Achieving year-over-year revenue growth each quarter and for the full year, combined with expanding our gross margin and reducing SG&A expense, we reported meaningful increases in both net income and Adjusted EBITDA,“ said Linda Perneau, President and Chief Executive Officer.
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Ms. Perneau added, “Although we continue to experience COVID-related business disruptions, I applaud every Volt colleague across the globe who is forging ahead with the necessary agility to address the ebbs and flows of client demand and the broader labor market. The work we have done over the last two years, including the implementation of new technologies, has provided us with a strong footing going forward. We remain confident that we will continue to see an improvement in full-year profitability in fiscal 2022.”
Fourth Quarter Results
North American Staffing revenue was $190.9 million, as compared to $178.6 million in the prior-year quarter. Revenue for this segment increased 6.9 percent year over year. The increase is primarily attributable to business wins in a combination of retail and mid-market clients, combined with the expansion of business within existing clients.
International Staffing revenue was $26.8 million, compared to $23.0 million in the prior-year quarter. Adjusted Revenue increased 13.9 percent year over year due to the expansion of business with existing clients in France and Belgium, as well as increased direct hire business in the U.K. and Singapore.
North American MSP revenue was $10.0 million, compared to $9.4 million in the prior-year quarter. The increase is primarily attributable to increased demand in its payroll service business.
Gross margin was 16.8 percent of revenue, a 60 basis-point increase from the prior-year quarter. The increase is primarily attributable to improved margins and higher direct hire revenue in our North American and International Staffing segments.
SG&A expense was $34.7 million or 15.2% of revenue, a $4.0 million increase from the prior-year quarter. The increase was primarily attributable to incentives on higher sales volume, as well as higher labor and medical expenses.
Adjusted EBITDA, which is a Non-GAAP measure, was $6.2 million for the fourth quarter of fiscal 2021, compared to $5.9 million in the prior-year quarter.
Fiscal 2021 Results
North American Staffing revenue was $738.8 million as compared to $689.1 million for fiscal 2020. Adjusted Revenue for this segment increased 7.5 percent. The increase is primarily attributable to business wins in a combination of retail and mid-market clients, combined with the expansion of business within existing clients. Operating Income for the year was $33.0 million compared to $14.3 million for fiscal 2020. Adjusted Operating Income for this segment, excluding impairment and restructuring charges, which is a non-GAAP measure, was $33.0 million compared to $17.1 million in the prior year.
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International Staffing revenue was $107.0 million compared to $95.3 million. Adjusted Revenue in the International Staffing segment in fiscal 2021 increased 4.9 percent. Operating Income for the year was $4.1 million compared to $1.4 million from fiscal 2020. Adjusted Operating Income, excluding impairment and restructuring charges, for this segment was $4.3 million, compared to $1.7 million in fiscal 2020.
North American MSP revenue increased 3.7 percent from the prior year, to $39.3 million. Adjusted Revenue for the segment increased 3.5 percent year over year. Operating Income for the year was $2.1 million compared to $3.1 million in the prior year. Adjusted Operating Income excluding impairment and restructuring charges, for this segment was $2.2 million compared to $3.1 million in fiscal 2020.
Gross margin increased by 60 basis points to 16.2 percent of revenue. The increase is primarily attributable to improved margins and an increase in direct hire revenue in our North American and International Staffing segments.
SG&A expense was $135.4 million, a decrease of $2.2 million, or 1.6%, from $137.7 million in the prior year. The decrease is primarily attributable to lower facility related costs due to consolidation of the Company’s real estate footprint, as well as lower software and travel expenses.
Adjusted EBITDA was $17.8 million, compared to a loss of $0.1 million in the prior year.
2021 Earnings Conference Call and Webcast
The Company will conduct a conference call on January 12, 2022, at 5:00 p.m. Eastern Time, to review the financial results for the fourth quarter and fiscal year ended October 31, 2021. A presentation supplementing the call can be accessed through the investor relations portion of the website. Investors interested in participating on the live call can dial 1-877-407-9039 within the U.S. or 1-201-689-8470 from abroad. The conference call, which may include forward-looking statements, is also being webcast and will be available via the investor relations section of the Company’s website at www.volt.com. A replay of the webcast will be archived on Volt’s investor relations website for 90 days.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to a number of known and unknown risks. Such risks include, among others, general economic, competitive and other business conditions (including the potential impact of the strain of coronavirus known as COVID-19 and related government actions on our operations as well as the operations of our customers), the degree and timing of customer utilization and renewal rate for contracts with the Company, and the degree of success of business improvement initiatives that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Information concerning these and other factors that could cause actual results to differ materially from those in the forward-looking statements are contained in the “Risk Factors” and other sections of the Company reports filed with the Securities and Exchange Commission (“SEC”). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
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Note Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain Non-GAAP financial information, including Adjusted Revenue, Adjusted Operating Income (Loss), Adjusted EPS and Adjusted EBITDA, which include adjustments to our GAAP financial results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies.
The Company believes that the presentation of Non-GAAP measures, including on a constant currency basis and eliminating (a) the impact of businesses sold or exited, (b) the impact from the migration of certain clients from a traditional staffing model to a managed service model and (c) special items provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations because they permit evaluation of the results of the Company without the effect of currency fluctuations, special items or the impact of businesses sold or exited that management believes make it more difficult to understand and evaluate the Company’s results of operations. Special items include impairments, restructuring and severance as well as certain income or expenses which the Company does not consider indicative of the current and future period performance and are more fully disclosed in the tables.
Adjusted Revenue is defined as revenue excluding businesses exited and the effect of foreign currency translation. The Company has also migrated certain clients from a traditional staffing model to a managed service model, resulting in the Company now managing a greater percentage of such clients’ business under its North American MSP. This shift provides increased opportunity for the Company with the relevant clients. However, due to the structure of MSP arrangements, revenue is recognized on a net basis, thereby reducing revenues on a comparative period basis. Beginning in the first quarter of 2020, the Company includes such delivery model shifts within the Adjusted Revenue measurement, as it provides a more comparable basis for evaluating performance results from period to period and reflects the method used by management to evaluate performance. A reconciliation is shown in the tables at the end of this press release.
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Adjusted EBITDA is defined as earnings or loss before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation expense as well as the special items described above.
Adjusted EBITDA is a performance measure rather than a cash flow measure. The Company believes the presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management.
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results of operations and operating cash flows as reported under GAAP. For example, Adjusted EBITDA does not reflect capital expenditures or contractual commitments; does not reflect changes in, or cash requirements for, the Company’s working capital needs; does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and does not reflect cash required to pay income taxes.
Adjusted Operating Income (Loss) is defined as operating income (loss) excluding businesses exited.
The Company believes the presentation of Adjusted Operating Income (Loss) is relevant and useful for investors because it provides a more comparable basis to evaluate performance results and analyze trends from period to period in a manner similar to the method used by management.
Adjusted EPS is defined as earnings per share excluding impairment and restructuring charges. The Company believes that the presentation of Adjusted EPS is useful for investors since it removes certain special items which the Company does not consider indicative of the current and future period performance.
The Company’s computation of Adjusted Revenue, Adjusted EBITDA, Adjusted Operating Income (Loss) and Adjusted EPS may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate these measures in the same fashion.
About Volt Information Sciences, Inc.
Volt is a global provider of staffing services (traditional time and materials-based as well as project-based). Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services and managed staffing services programs supporting primarily administrative, technical, information technology, light-industrial and engineering positions. Our managed staffing programs involve managing the procurement and on-boarding of contingent workers from multiple providers. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation and utilities. For more information, visit www.volt.com.
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Investor Relations Contacts:
Volt Information Sciences, Inc.
[email protected]
Joe Noyons
Three Part Advisors
[email protected]
817-778-8424
Financial Tables Follow
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| Results of Operations | ||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| October 31, 2021 | August 1, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | ||||||||||||||||
| Net revenue | $ | 227,809 | $ | 217,534 | $ | 211,073 | $ | 885,393 | $ | 822,055 | ||||||||||
| Cost of services | 189,648 | 181,334 | 176,844 | 741,871 | 694,204 | |||||||||||||||
| Gross margin | 38,161 | 36,200 | 34,229 | 143,522 | 127,851 | |||||||||||||||
| Selling, administrative and other operating costs | 34,691 | 34,039 | 30,735 | 135,427 | 137,666 | |||||||||||||||
| Restructuring and severance costs | 1,123 | 489 | 438 | 2,839 | 2,641 | |||||||||||||||
| Impairment charges | 20 | 112 | 14,518 | 424 | 16,913 | |||||||||||||||
| Operating income (loss) | 2,327 | 1,560 | (11,462 | ) | 4,832 | (29,369 | ) | |||||||||||||
| Interest income (expense), net | (416 | ) | (445 | ) | (431 | ) | (1,768 | ) | (2,219 | ) | ||||||||||
| Foreign exchange gain (loss), net | 39 | (34 | ) | (62 | ) | 318 | (85 | ) | ||||||||||||
| Other income (expense), net | (150 | ) | (152 | ) | (291 | ) | (605 | ) | (869 | ) | ||||||||||
| Income (loss) before income taxes | 1,800 | 929 | (12,246 | ) | 2,777 | (32,542 | ) | |||||||||||||
| Income tax provision | 474 | 314 | 271 | 1,403 | 1,045 | |||||||||||||||
| Net income (loss) | $ | 1,326 | $ | 615 | $ | (12,517 | ) | $ | 1,374 | $ | (33,587 | ) | ||||||||
| Per share data: | ||||||||||||||||||||
| Basic: | ||||||||||||||||||||
| Net income (loss) | $ | 0.06 | $ | 0.03 | $ | (0.58 | ) | $ | 0.06 | $ | (1.56 | ) | ||||||||
| Weighted average number of shares | 21,981 | 21,968 | 21,607 | 21,884 | 21,507 | |||||||||||||||
| Diluted: | ||||||||||||||||||||
| Net income (loss) | $ | 0.06 | $ | 0.03 | $ | (0.58 | ) | $ | 0.06 | $ | (1.56 | ) | ||||||||
| Weighted average number of shares | 22,811 | 22,651 | 21,607 | 22,609 | 21,507 | |||||||||||||||
| Segment data: | ||||||||||||||||||||
| Net revenue: | ||||||||||||||||||||
| North American Staffing | $ | 190,875 | $ | 179,381 | $ | 178,603 | $ | 738,767 | $ | 689,095 | ||||||||||
| International Staffing | 26,814 | 28,256 | 23,033 | 106,963 | 95,308 | |||||||||||||||
| North American MSP | 10,021 | 9,790 | 9,365 | 39,312 | 37,915 | |||||||||||||||
| Corporate and Other | 99 | 121 | 135 | 456 | 674 | |||||||||||||||
| Eliminations | — | (14 | ) | (63 | ) | (105 | ) | (937 | ) | |||||||||||
| Net revenue | $ | 227,809 | $ | 217,534 | $ | 211,073 | $ | 885,393 | $ | 822,055 | ||||||||||
| Operating income (loss): | ||||||||||||||||||||
| North American Staffing | $ | 9,064 | $ | 8,319 | $ | 8,956 | $ | 33,029 | $ | 14,322 | ||||||||||
| International Staffing | 1,419 | 1,180 | 278 | 4,078 | 1,399 | |||||||||||||||
| North American MSP | 706 | 571 | 885 | 2,118 | 3,074 | |||||||||||||||
| Corporate and Other | (8,862 | ) | (8,510 | ) | (21,581 | ) | (34,393 | ) | (48,164 | ) | ||||||||||
| Operating income (loss) | $ | 2,327 | $ | 1,560 | $ | (11,462 | ) | $ | 4,832 | $ | (29,369 | ) | ||||||||
| Work days | 64 | 63 | 64 | 251 | 251 | |||||||||||||||
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| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| Year Ended | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| Cash, cash equivalents and restricted cash beginning of the period | $ | 56,433 | $ | 38,444 | ||||
| Cash provided by all other operating activities | 20,323 | 964 | ||||||
| Changes in operating assets and liabilities | 3,544 | 17,190 | ||||||
| Net cash provided by operating activities | 23,867 | 18,154 | ||||||
| Purchases of property, equipment, and software | (3,112 | ) | (5,268 | ) | ||||
| Net cash provided by all other investing activities | 52 | 639 | ||||||
| Net cash used in investing activities | (3,060 | ) | (4,629 | ) | ||||
| Net draw-down of borrowings | — | 5,000 | ||||||
| Debt issuance costs | (166 | ) | (343 | ) | ||||
| Net cash used in all other financing activities | (414 | ) | (77 | ) | ||||
| Net cash provided by (used in) financing activities | (580 | ) | 4,580 | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (51 | ) | (116 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 20,176 | 17,989 | ||||||
| Cash, cash equivalents and restricted cash end of the period | $ | 76,609 | $ | 56,433 | ||||
| Cash paid during the period: | ||||||||
| Interest | $ | 1,806 | $ | 2,297 | ||||
| Income taxes | $ | 587 | $ | 1,979 | ||||
| Reconciliation of cash, cash equivalents and restricted cash end of the period: | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 71,373 | $ | 38,550 | ||||
| Restricted cash included in Restricted cash and short term investments | 5,236 | 17,883 | ||||||
| Cash, cash equivalents and restricted cash, at end of period | $ | 76,609 | $ | 56,433 | ||||
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| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except share amounts) | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 71,373 | $ | 38,550 | ||||
| Restricted cash and short-term investments | 8,729 | 20,736 | ||||||
| Trade accounts receivable, net of allowances of $137 and $219, respectively | 127,211 | 121,916 | ||||||
| Other current assets | 6,229 | 7,058 | ||||||
| TOTAL CURRENT ASSETS | 213,542 | 188,260 | ||||||
| Property, equipment and software, net | 17,482 | 22,167 | ||||||
| Right of use assets - operating leases | 22,496 | 25,107 | ||||||
| Other assets, excluding current portion | 6,584 | 6,311 | ||||||
| TOTAL ASSETS | $ | 260,104 | $ | 241,845 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accrued compensation | $ | 22,629 | $ | 18,357 | ||||
| Accounts payable | 36,544 | 31,221 | ||||||
| Accrued taxes other than income taxes | 31,112 | 12,983 | ||||||
| Accrued insurance and other | 16,298 | 15,908 | ||||||
| Operating lease liabilities | 6,775 | 7,144 | ||||||
| Income taxes payable | 956 | 891 | ||||||
| TOTAL CURRENT LIABILITIES | 114,314 | 86,504 | ||||||
| Accrued payroll taxes and other, excluding current portion | 21,832 | 30,081 | ||||||
| Operating lease liabilities, excluding current portion | 33,558 | 38,232 | ||||||
| Long-term debt | 59,307 | 59,154 | ||||||
| TOTAL LIABILITIES | 229,011 | 213,971 | ||||||
| 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 22,099,246 and 21,729,400 shares, respectively | 2,374 | 2,374 | ||||||
| Paid-in capital | 80,062 | 79,937 | ||||||
| Accumulated deficit | (32,208 | ) | (29,793 | ) | ||||
| Accumulated other comprehensive loss | (6,249 | ) | (6,458 | ) | ||||
| Treasury stock, at cost; 1,638,757 and 2,008,603 shares, respectively | (12,886 | ) | (18,186 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 31,093 | 27,874 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 260,104 | $ | 241,845 | ||||
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| GAAP to Non-GAAP Reconciliations | ||||||||
| (in thousands) | ||||||||
| Three Months Ended | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss): | ||||||||
| GAAP net income (loss) | $ | 1,326 | $ | (12,517 | ) | |||
| Restructuring and severance costs | 1,123 | (a) | 438 | (c) | ||||
| Impairment costs | 20 | (b) | 14,518 | (d) | ||||
| Non-GAAP net income (loss) | $ | 2,469 | $ | 2,439 | ||||
| Three Months Ended | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| Reconciliation of GAAP net income (loss) to Adjusted EBITDA: | ||||||||
| GAAP net income (loss) | $ | 1,326 | $ | (12,517 | ) | |||
| Restructuring and severance costs | 1,123 | (a) | 438 | (c) | ||||
| Impairment costs | 20 | (b) | 14,518 | (d) | ||||
| Depreciation and amortization | 1,918 | 2,097 | ||||||
| Share-based compensation expense | 807 | 303 | ||||||
| Total other (income) expense, net | 527 | 784 | ||||||
| Provision for income taxes | 474 | 271 | ||||||
| Adjusted EBITDA | $ | 6,195 | $ | 5,894 | ||||
| Special item adjustments consist of the following: | |||||
| (a) | Primarily relates to actions taken by the Company as part of its continued efforts to reduce costs and on-going costs related to facilities exited in fiscal 2020. | ||||
| (b) | Relates to impairment of capitalized software costs. | ||||
| (c) | Relates to actions taken by the Company as part of its continued efforts to reduce costs and to offset COVID-19 related revenue losses. | ||||
| (d) | Relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely. | ||||
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| GAAP to Non-GAAP Reconciliations | ||||||||
| (in thousands) | ||||||||
| Year Ended | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss): | ||||||||
| GAAP net income (loss) | $ | 1,374 | $ | (33,587 | ) | |||
| Restructuring and severance costs | 2,839 | (a) | 2,641 | (c) | ||||
| Impairment costs | 424 | (b) | 16,913 | (d) | ||||
| Non-GAAP net income (loss) | $ | 4,637 | $ | (14,033 | ) | |||
| Year Ended | ||||||||
| October 31, 2021 | November 1, 2020 | |||||||
| Reconciliation of GAAP net income (loss) to Adjusted EBITDA: | ||||||||
| GAAP net income (loss) | $ | 1,374 | $ | (33,587 | ) | |||
| Restructuring and severance costs | 2,839 | (a) | 2,641 | (c) | ||||
| Impairment costs | 424 | (b) | 16,913 | (d) | ||||
| Depreciation and amortization | 7,560 | 7,981 | ||||||
| Share-based compensation expense | 2,101 | 1,736 | ||||||
| Total other (income) expense, net | 2,055 | 3,173 | ||||||
| Provision for income taxes | 1,403 | 1,045 | ||||||
| Adjusted EBITDA | $ | 17,756 | $ | (98 | ) | |||
| Special item adjustments consist of the following: | |||||
| (a) | Primarily relates to actions taken by the Company as part of its continued efforts to reduce costs and on-going costs related to facilities exited in fiscal 2020. | ||||
| (b) | Relates to impairment of capitalized software costs. | ||||
| (c) | Primarily relates to the strategic initiative costs to offshore a significant number of identified roles to our staffing operations in India as well as continued efforts to reduce costs and to offset COVID-19 related revenue losses. | ||||
| (d) | Primarily relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely. | ||||
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| GAAP to Non-GAAP Reconciliations | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended October 31, 2021 | Three Months Ended November 1, 2020 | |||||||||||||||||||
| As Reported | As Reported | FX Impact | MSP Delivery Model Shift | Adjusted | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| North American Staffing | $ | 190,875 | $ | 178,603 | $ | — | $ | — | $ | 178,603 | ||||||||||
| International Staffing | 26,814 | 23,033 | 513 | — | 23,546 | |||||||||||||||
| North American MSP | 10,021 | 9,365 | — | — | 9,365 | |||||||||||||||
| Corporate and Other | 99 | 135 | — | — | 135 | |||||||||||||||
| Eliminations | — | (63 | ) | — | — | (63 | ) | |||||||||||||
| Total Revenue | $ | 227,809 | $ | 211,073 | $ | 513 | $ | — | $ | 211,586 | ||||||||||
| % change | 7.7% | |||||||||||||||||||
| Year Ended October 31, 2021 | Year Ended November 1, 2020 | |||||||||||||||||||
| As Reported | As Reported | FX Impact | MSP Delivery Model Shift | Adjusted | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| North American Staffing | $ | 738,767 | $ | 689,095 | $ | — | $ | (2,072 | ) | $ | 687,023 | |||||||||
| International Staffing | 106,963 | 95,308 | 6,643 | — | 101,951 | |||||||||||||||
| North American MSP | 39,312 | 37,915 | — | 52 | 37,967 | |||||||||||||||
| Corporate and Other | 456 | 674 | — | — | 674 | |||||||||||||||
| Eliminations | (105 | ) | (937 | ) | — | — | (937 | ) | ||||||||||||
| Total Revenue | $ | 885,393 | $ | 822,055 | $ | 6,643 | $ | (2,020 | ) | $ | 826,678 | |||||||||
| % change | 7.1% | |||||||||||||||||||
| GAAP to Non-GAAP Reconciliations | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three Months Ended October 31, 2021 | Three Months Ended November 1, 2020 | |||||||||||||||||||||||
| As Reported | Business Exited | Adjusted | As Reported | Business Exited | Adjusted | |||||||||||||||||||
| Operating Income (Loss) | ||||||||||||||||||||||||
| North American Staffing | $ | 9,064 | $ | — | $ | 9,064 | $ | 8,956 | $ | — | $ | 8,956 | ||||||||||||
| International Staffing | 1,419 | — | 1,419 | 278 | — | 278 | ||||||||||||||||||
| North American MSP | 706 | — | 706 | 885 | — | 885 | ||||||||||||||||||
| Corporate and Other | (8,862 | ) | — | (8,862 | ) | (21,581 | ) | — | (21,581 | ) | ||||||||||||||
| Total Operating Income (Loss) | $ | 2,327 | $ | — | $ | 2,327 | $ | (11,462 | ) | $ | — | $ | (11,462 | ) | ||||||||||
| Year Ended October 31, 2021 | Year Ended November 1, 2020 | |||||||||||||||||||||||
| As Reported | Business Exited | Adjusted | As Reported | Business Exited | Adjusted | |||||||||||||||||||
| Operating Income (Loss) | ||||||||||||||||||||||||
| North American Staffing | $ | 33,029 | $ | — | $ | 33,029 | $ | 14,322 | $ | — | $ | 14,322 | ||||||||||||
| International Staffing | 4,078 | — | 4,078 | 1,399 | — | 1,399 | ||||||||||||||||||
| North American MSP | 2,118 | — | 2,118 | 3,074 | — | 3,074 | ||||||||||||||||||
| Corporate and Other | (34,393 | ) | 5 | (34,388 | ) | (48,164 | ) | (27 | ) | (48,191 | ) | |||||||||||||
| Total Operating Income (Loss) | $ | 4,832 | $ | 5 | $ | 4,837 | $ | (29,369 | ) | $ | (27 | ) | $ | (29,396 | ) | |||||||||
| 12 |
| GAAP to Non-GAAP Reconciliations | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three Months Ended October 31, 2021 | Three Months Ended November 1, 2020 | |||||||||||||||||||||||
| As Reported | Business Exited | Adjusted | As Reported | Business Exited | Adjusted | |||||||||||||||||||
| Operating Income (Loss) | ||||||||||||||||||||||||
| Gross Margin | $ | 38,161 | $ | — | $ | 38,161 | $ | 34,229 | $ | — | $ | 34,229 | ||||||||||||
| Selling, administrative and other operating costs | 34,691 | — | 34,691 | 30,735 | — | 30,735 | ||||||||||||||||||
| Restructuring and severance costs | 1,123 | — | 1,123 | 438 | — | 438 | ||||||||||||||||||
| Impairment charges | 20 | — | 20 | 14,518 | — | 14,518 | ||||||||||||||||||
| Total Operating income (Loss) | $ | 2,327 | $ | — | $ | 2,327 | $ | (11,462 | ) | $ | — | $ | (11,462 | ) | ||||||||||
| Year Ended October 31, 2021 | Year Ended November 1, 2020 | |||||||||||||||||||||||
| As Reported | Business Exited | Adjusted | As Reported | Business Exited | Adjusted | |||||||||||||||||||
| Operating Income (Loss) | ||||||||||||||||||||||||
| Gross Margin | $ | 143,522 | $ | — | $ | 143,522 | $ | 127,851 | $ | — | $ | 127,851 | ||||||||||||
| Selling, administrative and other operating costs | 135,427 | — | 135,427 | 137,666 | — | 137,666 | ||||||||||||||||||
| Restructuring and severance costs | 2,839 | (5 | ) | 2,834 | 2,641 | 27 | 2,668 | |||||||||||||||||
| Impairment charges | 424 | — | 424 | 16,913 | — | 16,913 | ||||||||||||||||||
| Total Operating Income (Loss) | $ | 4,832 | $ | 5 | $ | 4,837 | $ | (29,369 | ) | $ | (27 | ) | $ | (29,396 | ) | |||||||||
| 13 |
| GAAP to Non-GAAP Reconciliations | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| Three Months Ended October 31, 2021 | ||||||||||||
| As Reported | Restructuring and Impairment Costs | Adjusted | ||||||||||
| Earnings per Share | ||||||||||||
| Net income | $ | 1,326 | $ | 1,143 | $ | 2,469 | ||||||
| Per share data: | ||||||||||||
| Basic: | ||||||||||||
| Net income | $ | 0.06 | $ | 0.11 | ||||||||
| Weighted average number of shares | 21,981 | 21,981 | ||||||||||
| Diluted | ||||||||||||
| Net income | $ | 0.06 | $ | 0.11 | ||||||||
| Weighted average number of shares | 22,811 | 22,811 | ||||||||||
| Year Ended October 31, 2021 | ||||||||||||
| As Reported | Restructuring and Impairment Costs | Adjusted | ||||||||||
| Earnings per Share | ||||||||||||
| Net income | $ | 1,374 | $ | 3,263 | $ | 4,637 | ||||||
| Per share data: | ||||||||||||
| Basic: | ||||||||||||
| Net income | $ | 0.06 | $ | 0.21 | ||||||||
| Weighted average number of shares | 21,884 | 21,884 | ||||||||||
| Diluted | ||||||||||||
| Net income | $ | 0.06 | $ | 0.21 | ||||||||
| Weighted average number of shares | 22,609 | 22,609 | ||||||||||
| 14 |