Net loss of $11.0m in Q1 for Volt
Volt Information Sciences, Inc. has reported results for its first quarter ended 31st January 2016.
Total revenue for the fiscal 2016 first quarter was $326.8m, down $37.1m or 10.2% compared to $364.0m for the fourth quarter of fiscal 2015. Compared to the prior year period, total revenue decreased $56.2m, or 14.7% compared to net revenues of $383.1m for the first quarter of fiscal 2015.
Staffing Services segment revenue was $308.7m, a $33.6m or 9.8% decrease compared to $342.3m in the fourth quarter of fiscal 2015. Compared to the prior year period, Staffing Services segment revenues declined $52.1m, or 14.5% compared to Staffing Services revenues of $360.8m in the first quarter of fiscal 2015. Other segment revenue was $18.1m in the first quarter of fiscal 2016, compared to $21.6m in the fourth quarter of fiscal 2015 and $22.2m in the prior year period.
Staffing Services segment operating income in the first quarter of fiscal 2016 of $1.7m included $1.5m of restructuring costs. Excluding the impact of this special item, Staffing Services segment operating income would have been $3.2m on a Non-GAAP basis.
Net loss of $11.0m in the first quarter of fiscal 2016 included $2.8m of restructuring costs. Excluding the impact of this special item, net loss for the first quarter of 2016 would have been $8.2m on a Non-GAAP basis.
Adjusted EBITDA, which is also a Non-GAAP measure, was a loss of $5.3m in the fiscal 2016 first quarter.
Michael Dean, president and CEO, said, “Our results in the first quarter reflect our ongoing efforts to stabilize the financial performance of Volt’s core staffing business and solidify our book of business with our customers. After normalizing for fewer work days during the fiscal first quarter, staffing revenue was down slightly on a sequential quarter basis. We also saw the initial benefit of the workforce reduction we announced early in the quarter as total selling, administrative and other operating costs declined 5% compared to the prior quarter. While much of the first quarter benefit from the lower headcount was offset by restructuring costs, this headcount reduction will contribute significantly to $10 million in anticipated cost savings during the full year.”
“We’ve made significant progress on key initiatives aimed at divesting non-core assets, reducing costs and improving our liquidity position as we continue to build the foundation for returning Volt to a growth trajectory. Adding to the divestiture of several non-core businesses last year, during the first quarter we completed the sale of our Uruguayan staffing business, announced plans to sell Maintech, and subsequent to quarter end, completed the sale of real estate assets. Looking forward, we remain acutely focused on strengthening our competitive position, improving efficiencies, and reinvesting to drive top line growth in our business. Based on our ongoing progress, I remain confident that our actions will lead to significant improvements in the quarters and years ahead.”