Q3 revenues up to $44.0m for Staffing 360 Solutions
Staffing 360 Solutions, Inc. has released its financial results for its third fiscal quarter ended 29th February 2016.
The company says that as a result of its M&A activity and organic growth, revenues increased to a record $44.0m in the quarter ended 29th February 2016, compared to $31.0m for the same period in 2015. Gross profit increased to $7.6m, compared to $5.5m for the same period in 2015. This represents gross margin of 17.3% and 17.8% respectively for both periods, which is approximately in line with the company's expectations for gross profit as a percentage of revenue.
The company's net loss for the quarter ended 29th February 2016 was approximately $1.7m, compared to a net loss of approximately $78,000 for the same period in 2015. The increase in net loss was primarily attributable to non-cash accounting charges associated with the company's capital structure, Staffing 360 Solutions says.
"This quarter has resulted in the achievement of several new milestones," stated Brendan Flood, executive chairman of Staffing 360 Solutions, Inc. "Our organic business has continued to improve, we received our first analyst coverage since listing on the NASDAQ and we couldn't be more pleased with Dave joining the team as our new chief financial officer. Importantly, our S-3 registration statement went effective, and we just tested the waters with a $2 million raise as part of our first registered offering. We are very pleased with the result as this represents part of our larger initiative to strengthen our Balance Sheet. We are also continuing to build momentum by generating a record $44.0 million in revenues during Q3 2016, representing the single largest quarterly revenue figure in our corporate history.
"Our key initiatives and metrics are gaining momentum.
"Although we still have a net loss, these results include expenses that are either non-cash in nature, acquisition-related or are non-recurring. Despite this, we still posted year-over-year growth, as well as positive Adjusted EBITDA of approximately $956,000 for the quarter ended February 29, 2016, which is an extremely strong result for the winter quarter."
"We are very pleased with the progress and delivery that our operations have achieved," stated David Faiman, chief financial officer at Staffing 360 Solutions. "We have also begun to streamline operations. This quarter, our operating expenses were reduced to 18.7% of revenue, compared to 20.9% of revenue in the same period last year. As Staffing 360 continues to grow and we begin to leverage our existing support functions, we expect operating expenses compared to revenue to continue to trend lower. Another key metric is our operating cash flow, which first turned positive two quarters ago, and is now over $2 million for the first nine months of this year."
Matt Briand, president and CEO, commented, "We continue to make headway on executing our growth strategy, as exemplified by the significant number of milestones we achieved this quarter.
"In fiscal Q3 2016 we posted record revenue, streamlined our operations, achieved effectiveness of our S-3 registration statement and raised $2 million of equity, and continued to embark on our M&A program. With all of our developments in this quarter, we encourage investors to join us on our earnings conference call for more details on where we've been and where we are headed as our strategic initiatives continue to take shape."