Volt Information Sciences Provides Update on Business Performance During the Fiscal Second Quarter
Volt Information Sciences Provides Update on Business Performance During the Fiscal Second Quarter and First Six Months 2012
Volt Information Sciences, Inc. has provided a business update and reported selected unaudited financial information for its fiscal second quarter and first fiscal six months of 2012 ended April 29, 2012. The Company noted that due to the previously announced ongoing accounting review and anticipated restatement, all numbers presented in this release are estimates.
The Staffing Services Segment, which accounts for a majority of the Company’s total revenue, had approximately $501 million of revenue in the second quarter 2012 compared to approximately $479 million for the same period in 2011. For the first six months of 2012 the Staffing Services Segment had approximately $963 million of revenue compared to approximately $929 million for the same period in 2011. The increase for the second quarter includes approximately $9 million primarily from increased associate vendor employees on assignment, and approximately $13 million from the recognition of previously deferred revenue, net of current period deferrals. The increase for the six-month period includes approximately $20 million primarily from increased associate vendor employees on assignment and to a lesser extent from increased technology consulting and outsourcing services and solutions revenues in addition to the recognition of previously deferred revenue, net of current period deferrals.
On average, approximately 31,000 U.S. staffing employees were on assignment in the quarter compared to approximately 30,900 in the second quarter of 2011, and 31,200 for the first six months compared to 31,600 in the prior year six-month period.
The Telecommunications Services and Other segments both reported close to break-even operating results for the second quarters and first six months of both 2012 and 2011. Results for the Computer Systems Segment will be reported after the ongoing accounting review and anticipated restatement is completed.
During the first six months of 2012, the Company disbursed approximately $18 million in connection with the restatement and related investigations and used approximately $2 million in all other operating activities, used approximately $5 million for net capital expenditures, and disbursed approximately $2 million for the acquisition of an additional 10% interest in a foreign subsidiary. Borrowings under the accounts receivable securitization program increased by approximately $10 million during the first six months of 2012 and borrowings under all other credit facilities increased approximately $2 million. The Company transferred approximately $1 million during the first six months of 2012 to restricted cash as collateral for foreign currency borrowings and banking facilities.
On April 29, 2012, the Company had cash and cash equivalents of approximately $29 million and an additional approximately $36 million of cash set aside and restricted as collateral for foreign currency credit lines and banking facilities. The Company also had approximately $50 million available from its accounts receivable securitization program. Excluding the approximately $9 million of non-current debt, the Company’s consolidated borrowings were approximately $126 million at April 29, 2012, which included approximately $25 million of primarily foreign currency borrowings used to hedge foreign denominated receivables and fully collateralized by the restricted cash, and approximately $100 million drawn under the $150 million securitization program. The amount drawn under the securitization program was subsequently increased to approximately $120 million in May 2012. The increase in borrowings was primarily the result of the increase in Staffing revenues and related receivables, as payroll expenditures precede collections from customers, and also expenditures for the restatement and related investigations.
The Company believes that it has sufficient liquidity to meet its business requirements currently and for the foreseeable future.