Staffing 360 Solutions projects profitability on an adjusted EBITDA basis
The public company executing a global buy-and-build strategy through the acquisition of domestic and international staffing organizations with operations in the US and Europe, says that the Pathway to Profitability is beginning to achieve its stated objectives and the Company expects to reach positive Adjusted EBITDA* during the fiscal quarter ended November 30, 2014, ahead of management's previously announced expectation of Fiscal 2015, which ends May 31, 2015.
Please note that the Company defines Adjusted EBITDA, which is a non-GAAP measure, as earnings (or loss) from continuing operations before interest expense, income taxes, depreciation and amortization, and amortization of non-cash stock-based compensation, non-recurring acquisition and restructuring expenses and goodwill impairment charges. The Company excludes stock-based compensation because it is non-cash in nature.
"We are pleased to report that the Company is forecast to achieve positive Adjusted EBITDA ahead of schedule," stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. "Although we still expect to report a net loss for the quarter, reaching positive Adjusted EBITDA represents a major milestone. This has been achieved through improved operating performance -- as outlined in our recently revised revenue guidance for the November 2014 quarter -- in combination with improving cost controls at the corporate level. We look forward to keeping the investment community apprised of our progress and achievements as we continue to pursue our Pathway to Profitability and grow both organically and through our highly selective acquisition strategy."
Complementing these optimized cost controls as part of the Pathway to Profitability, Staffing 360 Solutions has begun converting debt into equity in order to strengthen its balance sheet. As the management team mentioned during its Fiscal Q1 earnings conference call, this will result in an accounting charge, primarily non-cash, in Fiscal Q2 ended November 30, 2014. Further details will be available in the Company's upcoming 10-Q filing for the quarter ended November 30, 2014.
In addition to the positive Adjusted EBITDA, management believes the Company is still on target to reach its previously announced revenue guidance of $35.0 million for the quarter ended November 30, 2014, up from $2.0 million for the same period of 2013. Staffing 360 Solutions has achieved this significant revenue growth by successfully completing five acquisitions since 2013, which have included operations in the United States and United Kingdom.