Volt Information Sciences revenue up $8.6m QoQ
Volt Information Sciences, Inc. has reported results for its second quarter ended 1st May 2016.
Total revenue for the fiscal 2016 second quarter was $335.4m, up $8.6m, or 2.6% compared to total revenue of $326.8m in the first quarter of fiscal 2016. Compared to the prior year period, total revenue decreased $49.8m or 12.9% compared to $385.2m in the second quarter of fiscal 2015.
Staffing Services segment revenue was $317.2m, an $8.5m or 2.8% increase compared to $308.7m in the first quarter of fiscal 2016. Compared to the prior year period, Staffing Services segment revenues declined $45.0m, or 12.4% compared to Staffing Services revenues of $362.3m in the second quarter of fiscal 2015. Other segment revenue was $18.2m in the second quarter of fiscal 2016, compared to $18.1m in the first quarter of fiscal 2016 and $22.9m in the prior year period.
Net loss of $1.8m in the second quarter of fiscal 2016 included $2.0m from gain on the sale of real estate, $0.8m of restructuring and severance costs and $0.5m in other fees. Excluding the impact of these special items, net loss for the second quarter of 2016 would have been $2.5m on a Non-GAAP basis.
Adjusted EBITDA, which is also a non-GAAP measure, was $2.0m in the fiscal 2016 second quarter. Adjusted EBITDA excludes the impact of interest expense, income tax expense, depreciation and amortisation expense, other income/loss and share-based compensation expense.
Commenting on Volt’s second quarter performance, Michael Dean, president and CEO, said, “Overall, the second quarter was a very productive period for Volt. Importantly, we continued to make good progress on our previously stated plan to streamline our organization and improve our operational and financial performance. Our cost structure is leaner and our actions to divest non-core assets have improved our liquidity position over the past year. The process to sell our last remaining non-core business, Maintech, is proceeding. I am also pleased to report that we are adding to our book of business with important new customer engagements. Finally, we continue to augment our already strong management team with the addition of several exceptional executives to head up key leadership and revenue driving roles within the organization.
“Since embarking on our turnaround plan late last year, I have maintained that it will take time to operationally address all of the issues we are dealing with—and even longer for the changes we are making to be reflected in our financial results. However, I can say with confidence that we are on-track to returning Volt to top and bottom line growth.”
As previously announced, the Company has hired four senior executives and promoted another, which it says will strengthen its top leadership as it moves forward on its growth and profitability strategies. Joining the company are Jorge Perez, president of Volt’s North American Staffing Business – Volt Workforce Solutions (VWS); Sue Tidswell, senior vice president sales of VWS; Ann Hollins, chief human resources officer; and Chuck Sperazza, chief information officer. In addition, Rhona Driggs has been promoted to president of Volt Consulting Group (VCG), Volt’s MSP service business, in addition to maintaining responsibility as executive vice president, commercial operations for VWS.