Volt Information Sciences Provides Update on Business Performance during the Fiscal Third Quarter
Volt Information Sciences Provides Update on Business Performance during the Fiscal Third Quarter and First Nine Months 2012
Volt Information Sciences, Inc. has provided a business update and reported selected unaudited financial information for its fiscal third quarter and first fiscal nine months of 2012 ended July 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 $492 million of revenue in the third quarter 2012 compared to approximately $470 million for the same period in 2011. For the first nine months of 2012, the Staffing Services Segment had approximately $1,455 million of revenue compared to approximately $1,398 million of revenue in the same period in fiscal 2011. The increase for the third quarter and nine-month period was primarily the result of increased contingent staffing and associate vendor employees on assignment and the recognition of previously deferred revenue, net of current period deferrals. In addition, the nine-month period includes increased technology consulting and outsourcing services and solutions revenues.
On average, approximately 32,500 U.S. staffing employees were on assignment in the quarter compared to approximately 31,400 in the third quarter of 2011, and 31,600 for the first nine months compared to 31,500 in the prior year nine-month period.
The Telecommunications Services and Other segments both reported close to break-even operating results for the third quarters and first nine 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 nine months of 2012, the Company disbursed approximately $25 million in connection with the restatement and related investigations and used approximately $6 million in all other operating activities, used approximately $8 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 $30 million during the first nine months of 2012 and borrowings under all other credit facilities increased approximately $1 million. The Company transferred approximately $1 million during the first nine months of 2012 to restricted cash as collateral for foreign currency borrowings and banking facilities.
On July 29, 2012, the Company had cash and cash equivalents of approximately $33 million and an additional approximately $35 million of cash set aside and restricted as collateral for foreign currency credit lines and banking facilities. The Company also had approximately $30 million available from its accounts receivable securitization program. Excluding the approximately $9 million of non-current debt, the Company’s consolidated borrowings were approximately $144 million at July 29, 2012, which included approximately $24 million of primarily foreign currency borrowings used to hedge foreign denominated receivables and fully collateralized by the restricted cash, and approximately $120 million drawn under the $150 million securitization program.
The Company believes that it has sufficient liquidity to meet its business requirements currently and for the foreseeable future.