Volt Information Sciences revenue down in Q3
The third quarter saw a net loss of $4.1m, or $0.7m excluding special items. It also completed the sale of Volt Directories S.A. Ltd. and Tainol S.A., the company’s Uruguayan publishing and printing business. Subsequent to the end of the quarter, Volt completed the sale of certain assets of Volt Telecommunications Group and established a new one-year $150.0 million Short-Term Financing Program with PNC Bank, which increased borrowing capacity.
Staffing Services segment revenue decreased to $341.4 million from $397.0 million in the same period last year, while other segment revenue was $23.3 million in the third quarter compared to $25.7 million in the third quarter last year.
Staffing Services segment operating income in the third quarter of 2015 of $3.4 million included $2.5 million of special items related to impairment charges and restructuring costs. Excluding the impact of these special items, Staffing Services segment operating income would have been $5.9 million on a Non-GAAP basis.
Adjusted EBITDA, which is a non-GAAP measure, was $3.4 million in the fiscal 2015 third quarter.
On September 4, 2015, the Company had available liquidity of approximately $46.1 million.
“I look forward to building on the strengths of our business to achieve our longer-term goal of returning Volt to profitable growth,” commented Michael Dean, chairman, interim president and CEO.
“During the third quarter we made good progress on our strategic initiative to divest non-core assets with the completion of the sale of our unprofitable Uruguayan publishing and printing business. Subsequent to the end of the quarter we also completed the sale of certain assets of Volt Telecommunications Group, which will further enhance our operational focus on our core staffing business and improve profitability in the future.
"In addition, our efforts to improve our balance sheet and strengthen our liquidity position continue to bear fruit with the closing of a new one-year, $150.0 million short-term financing program with PNC Bank. I am also pleased with our ongoing initiatives to reduce expenses and improve our cost structure, as evidenced by the decrease in selling, administrative and other operating costs of $3.8 million, or 7.0%, compared to the third quarter last year.”
Dean concluded, “We are actively pursuing advanced technologies and improving business processes to support our core staffing business. Our management team is energized, excited and working with a sense of urgency to address the challenges that face us and to capitalize on the opportunities that lie ahead. With the recent changes in Volt’s leadership, we are taking a fresh look at how we operate and by empowering our employees to make positive changes, I believe these actions will lead to a significant improvement in our financial performance in the quarters and years ahead.”