Revenue down over 15% in Q4 2017 for Volt Information Sciences
Volt Information Sciences, Inc. has reported results for its fiscal 2017 fourth quarter and full year ended 29th October 2017.
Total revenue for the fiscal 2017 fourth quarter was $288.5m, down $53.1m, or 15.5%, compared to $341.6m in the fourth quarter of fiscal 2016.
North American Staffing revenue was $224.2m, a $31.0m, or 12.1% decrease compared to North American Staffing revenue of $255.2m in the fourth quarter of fiscal 2016. International Staffing revenue, which includes the company’s contingent staffing, direct placement and managed service programs businesses in Europe and Asia, was $30.2m, a $1.5 million, or 4.9% decrease compared to $31.7m from the fourth quarter of fiscal 2016, primarily as a result of softening economic demand in the United Kingdom.
Selling, administrative and other operating costs in the fourth quarter of fiscal 2017 decreased $0.5m, or 1.0%, to $50.1m from $50.6m in the fourth quarter of fiscal 2016.
Income from continuing operations of $39.8m in the fourth quarter of fiscal 2017 increased $37.0m from $2.8m in the fourth quarter of fiscal 2016.
Adjusted EBITDA, which is a Non-GAAP measure, was $0.1m in the fiscal 2017 fourth quarter, down $7.9m from $8.0m (Non-GAAP) in the year ago period. Adjusted EBITDA excludes the impact of special items, interest expense, income taxes, depreciation and amortization expense, other income/loss and share-based compensation expense. For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.
Total revenue for the full year of fiscal 2017 was $1,194.4m, down $140.3m, or 10.5%, compared to total revenue of $1,334.7m for the full year of fiscal 2016.
North American Staffing revenue was $919.3m, down $75.0m, or 7.6%, compared to $994.3m for the full year of fiscal 2016. International staffing revenue was $119.8m, down $11.7m, or 8.9%, from $131.5m in the prior year period.
Selling, administrative and other operating costs of $197.1m for the full year of fiscal 2017 decreased $6.8m, or 3.3%, from $203.9m for the full year of fiscal 2016.
Income from continuing operations of $28.8m for the full year of fiscal 2017 increased by $43.4m from a loss of $14.6m for the full year of fiscal 2016. Net income included $3.1m of restructuring and severance costs and settlement charges, offset by a $52.0m gain on the sale of Maintech, a non-core business, and the sale of the quality assurance business of the Technology Outsourcing Services and Solutions segment.
Adjusted EBITDA, which is a Non-GAAP measure, was a negative $0.9m for the full year of fiscal 2017, down $6.9m, from a positive $6.0m (Non-GAAP) in the year ago period.
Michael Dean, president and CEO, said, “Volt’s full year results showed continued evidence of improvement in several key financial and operational metrics. I am pleased our focus on higher margin business resulted in expanding our gross margins by 52 basis points year-over-year to 15.7%. In addition, our ongoing focus on achieving operational efficiencies and cost containment has continued to deliver lower selling, administrative and other operating costs.
“The turnaround strategy that we have executed over the past two years has successfully helped us address many of Volt’s operational challenges and we have a strong foundation from which we continue to build. During this time, we have dramatically simplified our operating structure through the sale of non-core assets, which has strengthened our balance sheet and liquidity position. At the same time, we have also been successful in streamlining our cost structure and gross margins continue to improve. While much has been accomplished, we now must ensure our efforts and investments convert to topline growth, as well as continue to explore a broad range of opportunities to enhance shareholder value. I look forward to overcoming Volt’s remaining challenges and emerging as a stronger company.”
Picture courtesy of Pixabay