Staffing 360 Solutions' executive chairman releases quarterly letter to employees and shareholders
Staffing 360 Solutions, Inc. has released its quarterly letter from Brendan Flood, executive chairman, providing employees and shareholders with an update on current business initiatives and insight into management's expectations for the remainder of 2016 and beyond.
The letter outlined the group’s financial results and organic growth:
- The group grew revenues by 42%, from $31m in fiscal Q3 2015 to $44m in fiscal Q3 2016;
- Its run-rate is now in excess of $170m, over half-way to our stated mission of reaching $300m in revenue;
- It grew gross profit to $7.6m in fiscal Q3 2016, a 38% increase on the $5.5m in the same period of the prior year;
- Staffing 360 reported positive Adjusted EBITDA of $956,000 for fiscal Q3 2016, which was our sixth quarter in a row of delivering positive results;
- Its underlying operations demonstrated strong double digit 11% organic revenue growth in Q3 2016, year-over-year; and
- Cash flow from operating activities grew from a negative $1.1m in the prior year period, to a record $2.2m for the nine months ended 29th February 2016.
It also highlighted other major milestones:
- The group announced that the Company's universal shelf registration statement on Form S-3 became effective on 22nd March 2016;
- It recently tested the market with a $2m raise through the issuance of equity. The Company is very pleased with the result and believes this represents a major step toward strengthening the Balance Sheet and improving leverage ratios;
- Hired David Faiman as the Company's new chief financial officer. Faiman is a PricewaterhouseCoopers LLP alumnus, and was the former Chief Accounting Officer and VP of Financial Planning & Analysis at Novitex Enterprise Solutions, Inc., and acting chief financial officer during his tenure at Cengage Learning, Inc. -- formerly Thomson Learning of Thomson Reuters;
- Staffing 360 combined its offices in London for all UK operations. This includes the Company's divisions of Longbridge 360 and The JM Group. Both brands will remain separate and distinct going forward. However, the combined layout will add efficiency and is expected to result in over $360,000 in operating cost savings annually; and
- It received the Company's first analyst coverage since becoming NASDAQ listed. Staffing 360 Solutions aims to pursue additional research coverage as the Company looks to increase its awareness in the capital markets.
Flood also discussed plans going forward, with four primary objectives:
- Firstly, the company believes its business plan is working and its actions are delivering. That said, it recognise that there is still more work to be done and it is supplementing its organic growth, which has been in double-digit territory of 11% recently, by continuing to pursue its Intelligent Integration approach and driving cost savings and synergies where it makes sense, such as its recent combination of offices in the UK, saving over $360,000 per annum.
- Secondly, to drive the capital raising process and improve our EBITDA, leverage ratios and shareholder value in fiscal 2016. As part of this endeavor, the S-3 is playing a critical step as we are getting more shares in the float to reduce volatility and making Staffing 360 Solutions accessible to a broader segment of the investment community.
- Thirdly, as mentioned on the group’s conference call, it will host its first Annual Shareholders Meeting as a NASDAQ-listed company, to give its investors an additional opportunity to meet with the Board and to formalise a number of positive items that the Board and Management have been working on and will be outlined in detail at this meeting. The current expectation is that this meeting will be held around the middle of August 2016 but the confirmation of the date will be released in the near term.
- Fourthly, Staffing 360 intends to continue its M&A strategy and acquire more companies as it put $300m in revenue squarely in our sights. As mentioned previously, it has several major acquisitions in our pipeline, across various stages of development. It looks forward to announcing more details when the time is right.
A full copy of the letter can be found here: http://finance.yahoo.com/news/staffing-360-solutions-executive-chairman-110000204.html