Volt Information Sciences reports Q4 2015 and full year results
New York-based Volt Information Sciences, Inc. has reported results for its fourth quarter and full year ended 1st November 2015.
In the fourth quarter, total revenue for the fiscal 2015 fourth quarter was $364.0m, down $0.7m or 0.2% compared to $364.7m for the third quarter of fiscal 2015. Compared to the prior year period, total revenue decreased $65.7m, or 15.3% compared to net revenues of $429.7m for the fourth quarter of fiscal 2014.
Staffing Services segment revenue was $342.3m, a $0.9m or 0.3% increase compared to $341.4m for the third quarter of fiscal 2015. Compared to the prior year period, Staffing Services segment revenues declined $60.8m, or 15.1% compared to Staffing Services revenues of $403.1m in the fourth quarter of fiscal 2014. Other segment revenue was $21.6m in the fourth quarter of fiscal 2015, compared to $23.3m in the third quarter and $26.6m in the prior year period.
Staffing Services segment operating income in the fourth quarter of fiscal 2015 of $5.6m included $1.2m 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 $6.8m on a Non-GAAP basis.
Adjusted EBITDA, which is also a Non-GAAP measure, was $5.3m in the fiscal 2015 fourth quarter. Adjusted EBITDA excludes the impact of interest expense, income tax expense, depreciation and amortization expense, other income/loss and share-based compensation expense. For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.
Commenting on Volt’s fourth quarter results, Michael Dean, president and CEO, said, “We ended fiscal 2015 with a productive fourth quarter. We have made meaningful progress in our efforts to stabilize Volt’s financial performance. We were successful in maintaining our book of business and our fourth quarter revenues held steady compared to the prior quarter. Importantly, we also made significant progress on our strategic initiatives to divest non-core assets with the sale of substantially all of the assets of Volt Telecommunications Group and more recently, our Uruguayan staffing business. I’m also pleased to announce that we have commenced the sale process for our last remaining non-core business, Maintech. The divestiture of these assets will enable us to better focus management’s attention on resources and opportunities within our core staffing business where we believe we are better positioned to add value.
“In the fourth quarter, we took concrete steps towards advancing our plan to shore up our balance sheet and provide the foundation for returning Volt to profitable growth. We remain focused on strengthening our liquidity position, reducing expenses and improving our cost structure, as well as reinvesting in the growth of our business. I am confident our efforts will lead to a significant improvement in our financial and operational performance going forward.”
In the company’s full year results, total revenue for the full year of fiscal 2015 was $1,496.9m, down $213.1m, or 12.5% compared to $1,710.0m for the full year of fiscal 2014. Staffing Services segment revenue decreased to $1,406.8m, a decline of $192.2m, or 12.0% compared to revenues of $1,599.0m in the same period last year. Other segment revenue was $90.1m compared to $111.0m in the comparable period last year.
Loss from continuing operations in fiscal 2015 of $19.8m included special items of $14.3m. Excluding these items, the loss from continuing operations in 2015 would have been $5.5m on a Non-GAAP basis.