Volt Information Sciences Reports Fiscal 2015 Fourth Quarter and Full Year Financial Results
Volt Information Sciences, Inc. (NYSE-MKT: VISI), a global provider of staffing services and information technology infrastructure services, today reported results for its fourth quarter and full year ended November 1, 2015. Key elements include:
Commenting on Volt's fourth quarter results, Michael Dean, President and CEO, said, "We ended fiscal 2015 with a productive fourth quarter. We have made meaningful progress in our efforts to stabilize Volt's financial performance. We were successful in maintaining our book of business and our fourth quarter revenues held steady compared to the prior quarter. Importantly, we also made significant progress on our strategic initiatives to divest non-core assets with the sale of substantially all of the assets of Volt Telecommunications Group and more recently, our Uruguayan staffing business. I'm also pleased to announce that we have commenced the sale process for our last remaining non-core business, Maintech. The divestiture of these assets will enable us to better focus management's attention on resources and opportunities within our core staffing business where we believe we are better positioned to add value."
Mr. Dean concluded, "In the fourth quarter, we took concrete steps towards advancing our plan to shore up our balance sheet and provide the foundation for returning Volt to profitable growth. We remain focused on strengthening our liquidity position, reducing expenses and improving our cost structure, as well as reinvesting in the growth of our business. I am confident our efforts will lead to a significant improvement in our financial and operational performance going forward."
Fiscal 2015 Fourth Quarter Results
Total revenue for the fiscal 2015 fourth quarter was $364.0 million, down $0.7 million or 0.2% compared to $364.7 million for the third quarter of fiscal 2015. Compared to the prior year period, total revenue decreased $65.7 million, or 15.3% compared to net revenues of $429.7 million for the fourth quarter of fiscal 2014.
Staffing Services segment revenue was $342.3 million, a $0.9 million or 0.3% increase compared to $341.4 million for the third quarter of fiscal 2015. Compared to the prior year period, Staffing Services segment revenues declined $60.8 million, or 15.1% compared to Staffing Services revenues of $403.1 million in the fourth quarter of fiscal 2014. Other segment revenue was $21.6 million in the fourth quarter of fiscal 2015, compared to $23.3 million in the third quarter and $26.6 million in the prior year period.
Staffing Services segment operating income in the fourth quarter of fiscal 2015 of $5.6 million included $1.2 million of special items related to impairment charges and restructuring costs. Excluding the impact of these special items, Staffing Services segment operating income would have been $6.8 million on a Non-GAAP basis.
Income from continuing operations in the fiscal 2015 fourth quarter of $0.1 million included special items of $0.9 million. Excluding these items income from continuing operations for the fourth quarter of 2015 would have been $1.0 million on a Non-GAAP basis.
Adjusted EBITDA, which is also a Non-GAAP measure, was $5.3 million in the fiscal 2015 fourth quarter. Adjusted EBITDA excludes the impact of interest expense, income tax expense, 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.
Fiscal 2015 Full Year Results
Total revenue for the full year of fiscal 2015 was $1,496.9 million, down $213.1 million, or 12.5% compared to $1,710.0 million for the full year of fiscal 2014. Staffing Services segment revenue decreased to $1,406.8 million, a decline of $192.2 million, or 12.0% compared to revenues of $1,599.0 million in the same period last year. Other segment revenue was $90.1 million compared to $111.0 million in the comparable period last year.
Loss from continuing operations in fiscal 2015 of $19.8 million included special items of $14.3 million. Excluding these items, the loss from continuing operations in 2015 would have been $5.5 million on a Non-GAAP basis.
As of November 1, 2015, the Company had $49.4 million of available liquidity for working capital requirements. As of January 8, 2016, the Company had available liquidity of approximately $53.1 million.
Conference Call and Webcast
A conference call and simultaneous webcast to discuss the fiscal 2015 fourth quarter and full year financial results will be held today at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time. Volt's President and CEO Michael Dean and CFO Paul Tomkins will host the conference call. Participants can listen in via webcast by visiting the Investor & Governance section of Volt's website at www.volt.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. The conference call can also be accessed by dialing 877-407-9712 (201-689-8323 for international callers) and reference the "Volt Information Sciences Earnings Conference Call."
Following the call, an audio replay will be available beginning Wednesday, January 13, 2016 at 8:00 p.m. Eastern Time through Wednesday, January 27, 2016 at 11:59 p.m. Eastern Time. To access the replay, dial 877-870-5176 (858-384-5517 for international callers) and enter the Conference ID #13627494. A replay of the webcast will also be available for 90 days upon completion of the call, accessible through the Company's website at www.volt.com in the Investors & Governance section.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a global provider of staffing services (traditional time and materials-based as well as project-based), managed service programs, technology outsourcing services and information technology infrastructure services. Our staffing services consists of workforce solutions that include providing contingent workers, personnel recruitment services, and managed services programs supporting primarily professional administration, technical, information technology, light-industrial and engineering positions. Our managed service programs consist of managing the procurement and on-boarding of contingent workers from multiple providers. Our technology outsourcing services provide pre and post production development, testing and customer support to companies in the mobile, gaming, and technology devices industries. In addition, we provide information technology infrastructure services which provide server, storage, network and desktop IT hardware maintenance, data center and network monitoring and operations. Our complementary businesses offer customized talent, technology and consulting solutions to a diverse client base. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation, and utilities. For more information visit www.volt.com.
This press release contains forward-looking statements that are subject to a number of known and unknown risks, including, among others, general economic, competitive and other business conditions, the degree and timing of customer utilization and rate of renewals of contracts with the company, and the degree of success of business improvement initiatives that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Information concerning these and other factors that could cause actual results to differ materially from those in the forward-looking statements are contained in company reports filed with the Securities and Exchange Commission. Copies of the company's latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission, are available without charge upon request to Volt Information Sciences, Inc., 1133 Avenue of the Americas, New York, New York 10036, Attention: Shareholder Relations, 212-704-7921. These and other SEC filings by the company are also available to the public over the Internet at the SEC's website at http://www.sec.gov and at the company's website at http://www.volt.com in the Investor & Governance section.
--Financial Tables to Follow--
Note Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information, which includes adjustments for special items, as additional information for its consolidated income (loss) from continuing operations, segment operating income (loss) and adjusted EBITDA. These measures are not in accordance with, or an alternative for, generally accepted accounting principles ("GAAP") and may be different from Non-GAAP measures reported by other companies. The Company believes that the presentation of these Non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations because it permits evaluation of the results of the Company's continuing operations without the effect of special items that management believes make it more difficult to understand and evaluate the Company's results of operations.
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