Staffing 360 Solutions’ gross profit increases almost 29% YoY
Staffing 360 Solutions, Inc. has released its financial results for its fiscal year ended 31st May 2016.
"We are pleased to report record financial results for the year," stated Brendan Flood (pictured), executive chairman of Staffing 360 Solutions. "Since we embarked on our buy-and-build strategy less than 36 months ago we have fueled our growth from nearly zero in revenue during fiscal 2013, to over $165 million of revenue in fiscal 2016. Not only are our financial results improving as a result, we are also proud of the six acquisitions we have completed and the more than 4,000 temporary workers that are now part of our journey at Staffing 360 Solutions."
As a result of the Company's numerous acquisitions and strong organic growth, revenues increased to $165.6 million in the fiscal year ended 31st May 2016, compared to $128.8m for the same period in 2015, a 28.5% increase. Gross profit increased to over $29.0m in the 2016 fiscal year, compared to $22.5m for the same period in 2015, a 28.8% increase. This represents gross margin of 17.5% for both periods, which is in line with the Company's expectations for gross profit as a percentage of revenue.
The Company's net loss for the year ended 31st May 2016 was $9.7m, compared to a net loss of $18.1m for the same period in 2015. The net loss was primarily attributable to non-cash and non-recurring accounting charges associated with the Company's capital structure.
"Staffing 360 Solutions has grown considerably from where we were a year ago," stated David Faiman, chief financial officer. "Our top line revenue of $165 million is more than 28% greater than the amount achieved last year, and we have made significant progress reducing corporate overheads through our Pathway to Profitability initiative. This year, our operating expenses were reduced to 20.3% of revenue, compared to 23.3% of revenue last year. As Staffing 360 continues to grow through additional acquisitions, we have been experiencing increased productivity among our revenue generators along with reduced corporate overheads, which is helping improve our financial metrics."
The Company encourages investors to review its Form 10-K for the year ended May 31, 2016 for additional information regarding the Company's results of operations, liquidity, audited financial statements and other pertinent information.
For the fourth quarter, revenue was $44.4m, compared to $32.2m in the fourth quarter ended 31st May 2015, a 37.8% increase. Gross profit was $7.7m, compared to $5.5m in the fourth quarter ended 31st May 2015, a 38.9% increase.
Net loss decreased to $2.8m, compared to a net loss of $4.3m in the fourth quarter ended 31st May 2015.
Adjusted EBITDA was $1.1m, compared to Adjusted EBITDA of $404,000 in the fourth quarter ended 31st May 2015.
"This year we have made considerable strides on all fronts," Mr. Flood said. "We were operating cash flow positive for the fiscal year and we posted our strongest Adjusted EBITDA result in our Company's history -- $4.1 million for the year ended May 31, 2016. Needless to say, we are extremely pleased with the progress we have made and the results we have achieved."
"Staffing 360 Solutions has achieved some major milestones this year," said Matt Briand, president and CEO. "We posted record revenue and Adjusted EBITDA, streamlined our operations, uplisted to Nasdaq, all while completing two more acquisitions and achieving strong organic growth. With all of these exciting developments, we encourage investors to join us on our earnings conference call for more details on where we've been and where we're headed as we continue to expand our business in fiscal 2017 and beyond."