New York
|
001-9232
|
13-5658129
|
||
(State or other jurisdiction of
incorporation) |
(Commission File Number)
|
(IRS Employer Identification
Number) |
1065 Avenue of the Americas, New York, New York
|
10018
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
£
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
£
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
£
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
£
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits. The following exhibit is furnished as part of this Report on Form 8-K:
|
Exhibit No.
|
Description of Exhibit
|
|
99.1
|
Press release of Volt Information Sciences, Inc. dated September 10, 2015 announcing earnings for its fiscal third quarter ended August 2, 2015.
|
VOLT INFORMATION SCIENCES, INC.
|
||||
By | /s/ Paul Tomkins | |||
Paul Tomkins, Senior Vice President
|
||||
and Chief Financial Officer
|
||||
Exhibit No.
|
Description of Exhibit
|
|
99.1
|
Press release of Volt Information Sciences, Inc. dated September 10, 2015 announcing earnings for its fiscal third quarter ended August 2, 2015.
|
![]() |
|
|
·
|
Net revenue of $364.7 million down 13.7% year-over-year
|
|
·
|
Net loss of $4.1 million, or $0.7 million excluding special items
|
|
·
|
Completed the sale of Volt Directories S.A. Ltd. and Tainol S.A., the Company’s Uruguayan publishing and printing business
|
|
·
|
Subsequent to the end of the quarter, completed the sale of certain assets of Volt Telecommunications Group
|
|
·
|
Established a new one-year $150.0 million Short-Term Financing Program with PNC Bank, which increased borrowing capacity
|
Three months ended August 2, 2015
|
Three months ended August 3, 2014
|
|||||||||||||||||||||||
Total
|
Staffing
Services
|
Other
|
Total |
Staffing
Services
|
Other
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Staffing services revenue
|
$ | 341,383 | $ | 341,383 | $ | - | $ | 396,979 | $ | 396,979 | $ | - | ||||||||||||
Other revenue
|
23,285 | - | 23,285 | 25,670 | - | 25,670 | ||||||||||||||||||
Net revenue
|
364,668 | 341,383 | 23,285 | 422,649 | 396,979 | 25,670 | ||||||||||||||||||
Expenses
|
||||||||||||||||||||||||
Direct cost of staffing services revenue
|
288,689 | 288,689 | - | 337,285 | 337,285 | - | ||||||||||||||||||
Cost of other revenue
|
19,696 | - | 19,696 | 22,319 | - | 22,319 | ||||||||||||||||||
Selling, administrative and other operating costs
|
50,955 | 46,792 | 4,163 | 54,809 | 50,447 | 4,362 | ||||||||||||||||||
Restructuring costs
|
400 | 341 | 59 | 141 | 42 | 99 | ||||||||||||||||||
Impairment charges
|
580 | 2,130 | (1,550 | ) | - | - | - | |||||||||||||||||
Segment operating income (loss)
|
4,348 | 3,431 | 917 | 8,095 | 9,205 | (1,110 | ) | |||||||||||||||||
Corporate general and administrative
|
5,935 | 3,022 | ||||||||||||||||||||||
Corporate restructuring costs
|
1,467 | - | ||||||||||||||||||||||
Operating income (loss)
|
(3,054 | ) | 5,073 | |||||||||||||||||||||
Other income (expense), net
|
261 | (930 | ) | |||||||||||||||||||||
Income tax provision
|
1,351 | 738 | ||||||||||||||||||||||
Income (loss) from continuing operations
|
(4,144 | ) | 3,405 | |||||||||||||||||||||
Loss from discontinued operations, net of taxes
|
- | (3,885 | ) | |||||||||||||||||||||
Net loss
|
$ | (4,144 | ) | $ | (480 | ) | ||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | (0.20 | ) | $ | 0.16 | |||||||||||||||||||
Loss from discontinued operations
|
- | (0.19 | ) | |||||||||||||||||||||
Net loss
|
$ | (0.20 | ) | $ | (0.03 | ) | ||||||||||||||||||
Weighted average number of shares
|
20,741 | 20,866 | ||||||||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | (0.20 | ) | $ | 0.16 | |||||||||||||||||||
Loss from discontinued operations
|
- | (0.18 | ) | |||||||||||||||||||||
Net loss
|
$ | (0.20 | ) | $ | (0.02 | ) | ||||||||||||||||||
Weighted average number of shares
|
20,741 | 21,072 |
Nine months ended August 2, 2015
|
Nine months ended August 3, 2014
|
|||||||||||||||||||||||
Total
|
Staffing
Services |
Other
|
Total
|
Staffing
Services
|
Other
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Staffing services revenue
|
$ | 1,064,481 | $ | 1,064,481 | $ | - | $ | 1,195,981 | $ | 1,195,981 | $ | - | ||||||||||||
Other revenue
|
68,442 | - | 68,442 | 84,376 | - | 84,376 | ||||||||||||||||||
Net revenue
|
1,132,923 | 1,064,481 | 68,442 | 1,280,357 | 1,195,981 | 84,376 | ||||||||||||||||||
Expenses
|
||||||||||||||||||||||||
Direct cost of staffing services revenue
|
904,624 | 904,624 | - | 1,022,003 | 1,022,003 | - | ||||||||||||||||||
Cost of other revenue
|
59,210 | - | 59,210 | 70,518 | - | 70,518 | ||||||||||||||||||
Selling, administrative and other operating costs
|
159,221 | 147,406 | 11,815 | 173,414 | 159,947 | 13,467 | ||||||||||||||||||
Restructuring costs
|
651 | 616 | 35 | 1,477 | 1,276 | 201 | ||||||||||||||||||
Impairment charges
|
5,954 | 3,107 | 2,847 | - | - | - | ||||||||||||||||||
Segment operating income (loss)
|
3,263 | 8,728 | (5,465 | ) | 12,945 | 12,755 | 190 | |||||||||||||||||
Corporate general and administrative
|
15,291 | 10,642 | ||||||||||||||||||||||
Corporate restructuring costs
|
2,442 | 320 | ||||||||||||||||||||||
Restatement, investigations and remediation
|
- | 3,261 | ||||||||||||||||||||||
Operating loss
|
(14,470 | ) | (1,278 | ) | ||||||||||||||||||||
Other income (expense), net
|
(2,125 | ) | (2,556 | ) | ||||||||||||||||||||
Income tax provision
|
3,262 | 4,062 | ||||||||||||||||||||||
Loss from continuing operations
|
(19,857 | ) | (7,896 | ) | ||||||||||||||||||||
Loss from discontinued operations, net of taxes
|
(4,519 | ) | (13,153 | ) | ||||||||||||||||||||
Net loss
|
$ | (24,376 | ) | $ | (21,049 | ) | ||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||
Loss from continuing operations
|
$ | (0.95 | ) | $ | (0.38 | ) | ||||||||||||||||||
Loss from discontinued operations
|
(0.22 | ) | (0.63 | ) | ||||||||||||||||||||
Net loss
|
$ | (1.17 | ) | $ | (1.01 | ) | ||||||||||||||||||
Weighted average number of shares
|
20,821 | 20,859 | ||||||||||||||||||||||
Diluted:
|
||||||||||||||||||||||||
Loss from continuing operations
|
$ | (0.95 | ) | $ | (0.38 | ) | ||||||||||||||||||
Loss from discontinued operations
|
(0.22 | ) | (0.63 | ) | ||||||||||||||||||||
Net loss
|
$ | (1.17 | ) | $ | (1.01 | ) | ||||||||||||||||||
Weighted average number of shares
|
20,821 | 20,859 |
Nine months ended
|
||||||||
August 2, 2015
|
August 3, 2014
|
|||||||
Cash and cash equivalents, beginning of the period
|
$ | 9,105 | $ | 9,847 | ||||
Changes in operating assets and liabilities
|
21,086 | 28,202 | ||||||
Cash (used in) provided by all other operating activities
|
(7,017 | ) | 1,868 | |||||
Net cash provided by operating activities
|
14,069 | 30,070 | ||||||
Net cash used in investing activities
|
(4,301 | ) | (84 | ) | ||||
Net release of cash restricted as collateral for borrowings
|
10,436 | 6,807 | ||||||
Net change in short-term borrowings
|
(3,506 | ) | (24,853 | ) | ||||
Purchases of common stock under repurchase program
|
(4,262 | ) | - | |||||
Net cash used in all other financing activities
|
(172 | ) | (623 | ) | ||||
Net cash provided by (used in) financing activities
|
2,496 | (18,669 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
(3,679 | ) | (104 | ) | ||||
Net cash used in discontinued operations
|
(4,056 | ) | (11,878 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
4,529 | (665 | ) | |||||
Change in cash from discontinued operations
|
(211 | ) | 188 | |||||
Cash and cash equivalents, end of the period
|
$ | 13,423 | $ | 9,370 | ||||
Cash paid during the period:
|
||||||||
Interest
|
$ | 2,435 | $ | 2,729 | ||||
Income taxes
|
$ | 1,638 | $ | 3,985 |
|
August 2, 2015
|
November 2, 2014
|
||||||
ASSETS
|
(unaudited)
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 13,423 | $ | 9,105 | ||||
Restricted cash and short-term investments
|
12,196 | 32,436 | ||||||
Trade accounts receivable, net of allowances of $828 and $868, respectively
|
210,626 | 248,101 | ||||||
Recoverable income taxes
|
16,439 | 18,311 | ||||||
Prepaid insurance and other current assets
|
24,569 | 26,255 | ||||||
Assets held for sale
|
- | 24,220 | ||||||
TOTAL CURRENT ASSETS
|
277,253 | 358,428 | ||||||
Prepaid insurance and other assets, excluding current portion
|
42,518 | 39,600 | ||||||
Property, equipment and software, net
|
22,772 | 26,304 | ||||||
TOTAL ASSETS
|
$ | 342,543 | $ | 424,332 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accrued compensation
|
$ | 34,141 | $ | 41,182 | ||||
Accounts payable
|
35,196 | 55,873 | ||||||
Accrued taxes other than income taxes
|
19,734 | 17,099 | ||||||
Accrued insurance and other
|
35,080 | 39,104 | ||||||
Deferred revenue, net, current portion
|
1,855 | 3,491 | ||||||
Short-term borrowings, including current portion of long-term debt
|
125,968 | 129,417 | ||||||
Liabilities held for sale
|
- | 19,126 | ||||||
TOTAL CURRENT LIABILITIES
|
251,974 | 305,292 | ||||||
Accrued insurance and other, excluding current portion
|
10,502 | 11,874 | ||||||
Income taxes payable, excluding current portion
|
8,738 | 8,556 | ||||||
Long-term debt, excluding current portion
|
6,482 | 7,216 | ||||||
TOTAL LIABILITIES
|
277,696 | 332,938 | ||||||
Commitments and contingencies
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued – none
|
- | - | ||||||
Common stock, par value $0.10; Authorized - 120,000,000 shares;
Issued - 23,738,003 and 23,610,103, respectively; Outstanding – 20,796,780 and 20,922,796, respectively
|
2,374 | 2,361 | ||||||
Paid-in capital
|
75,461 | 73,194 | ||||||
Retained earnings
|
38,293 | 64,119 | ||||||
Accumulated other comprehensive loss
|
(7,442 | ) | (6,400 | ) | ||||
Treasury stock, at cost; 2,941,223 shares and 2,687,307 shares, respectively
|
(43,839 | ) | (41,880 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY
|
64,847 | 91,394 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 342,543 | $ | 424,332 |
Three Months Ended August 2, 2015
|
Three Months Ended August 3, 2014
|
|||||||||||||||||||||||||||
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
|||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||
Staffing services revenue
|
$ | 341,383 | $ | - | $ | 341,383 | $ | 396,979 | $ | - | $ | 396,979 | ||||||||||||||||
Other revenue
|
23,285 | - | 23,285 | 25,670 | - | 25,670 | ||||||||||||||||||||||
Net Revenue
|
364,668 | - | 364,668 | 422,649 | - | 422,649 | ||||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||
Direct cost of staffing services revenue
|
288,689 | - | 288,689 | 337,285 | - | 337,285 | ||||||||||||||||||||||
Cost of other revenue
|
19,696 | - | 19,696 | 22,319 | - | 22,319 | ||||||||||||||||||||||
Selling, administrative and other operating costs
|
56,890 | (1,976 | ) |
(a)
|
54,914 | 57,831 | - | 57,831 | ||||||||||||||||||||
Restructuring costs
|
1,867 | (1,867 | ) |
(b)
|
- | 141 | (141 | ) |
(e)
|
- | ||||||||||||||||||
Impairment charges
|
580 | (580 | ) |
(c)
|
- | - | - | |||||||||||||||||||||
Total Expenses
|
367,722 | (4,423 | ) | 363,299 | 417,576 | (141 | ) | 417,435 | ||||||||||||||||||||
Operating income (loss)
|
(3,054 | ) | 4,423 | 1,369 | 5,073 | 141 | 5,214 | |||||||||||||||||||||
Other income (expense), net
|
||||||||||||||||||||||||||||
Interest income (expense), net
|
(571 | ) | - | (571 | ) | (788 | ) | - | (788 | ) | ||||||||||||||||||
Foreign exchange gain (loss), net
|
1,010 | (1,010 | ) |
(d)
|
- | (134 | ) | 134 |
(d)
|
- | ||||||||||||||||||
Other income (expense), net
|
(178 | ) | - | (178 | ) | (8 | ) | - | (8 | ) | ||||||||||||||||||
Total other income (expense), net
|
261 | (1,010 | ) | (749 | ) | (930 | ) | 134 | (796 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes
|
(2,793 | ) | 3,413 | 620 | 4,143 | 275 | 4,418 | |||||||||||||||||||||
Income tax provision
|
1,351 | - | 1,351 | 738 | - | 738 | ||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | (4,144 | ) | $ | 3,413 | $ | (731 | ) | $ | 3,405 | $ | 275 | $ | 3,680 | ||||||||||||||
* Basic income (loss) from continuing operations
|
$ | (0.20 | ) | $ | 0.16 | $ | (0.04 | ) | $ | 0.16 | $ | 0.01 | $ | 0.18 | ||||||||||||||
* Diluted income (loss) from continuing operations
|
$ | (0.20 | ) | $ | 0.16 | $ | (0.04 | ) | $ | 0.16 | $ | 0.01 | $ | 0.17 | ||||||||||||||
Basic weighted average number of shares
|
20,741 | 20,741 | 20,741 | 20,866 | 20,866 | 20,866 | ||||||||||||||||||||||
Diluted weighted average number of shares
|
20,741 | 20,741 | 20,741 | 21,072 | 21,072 | 21,072 |
Nine Months Ended August 2, 2015
|
Nine Months Ended August 3, 2014
|
|||||||||||||||||||||||||||
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
|||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||
Staffing services revenue
|
$ | 1,064,481 | $ | - | $ | 1,064,481 | $ | 1,195,981 | $ | - | $ | 1,195,981 | ||||||||||||||||
Other revenue
|
68,442 | - | 68,442 | 84,376 | - | 84,376 | ||||||||||||||||||||||
Net revenue
|
1,132,923 | - | 1,132,923 | 1,280,357 | - | 1,280,357 | ||||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||
Direct cost of staffing services revenue
|
904,624 | - | 904,624 | 1,022,003 | - | 1,022,003 | ||||||||||||||||||||||
Cost of other revenue
|
59,210 | - | 59,210 | 70,518 | - | 70,518 | ||||||||||||||||||||||
Selling, administrative and other operating costs
|
174,512 | (4,180 | ) |
(a)
|
170,332 | 184,056 | (500 | ) |
(e)
|
183,556 | ||||||||||||||||||
Restructuring costs
|
3,093 | (3,093 | ) |
(b)
|
- | 1,797 | (1,797 | ) |
(f)
|
- | ||||||||||||||||||
Impairment charges
|
5,954 | (5,954 | ) |
(c)
|
- | - | - | - | ||||||||||||||||||||
Restatement, investigations and remediation
|
- | - | - | 3,261 | (3,261 | ) | - | |||||||||||||||||||||
Total expenses
|
1,147,393 | (13,227 | ) | 1,134,166 | 1,281,635 | (5,558 | ) | 1,276,077 | ||||||||||||||||||||
Operating income (loss)
|
(14,470 | ) | 13,227 | (1,243 | ) | (1,278 | ) | 5,558 | 4,280 | |||||||||||||||||||
Other income (expense), net
|
||||||||||||||||||||||||||||
Interest income (expense), net
|
(1,935 | ) | - | (1,935 | ) | (2,450 | ) | - | (2,450 | ) | ||||||||||||||||||
Foreign exchange gain (loss), net
|
(153 | ) | 153 |
(d)
|
- | (376 | ) | 376 |
(d)
|
- | ||||||||||||||||||
Other income (expense), net
|
(37 | ) | - | (37 | ) | 270 | - | 270 | ||||||||||||||||||||
Total other income (expense), net
|
(2,125 | ) | 153 | (1,972 | ) | (2,556 | ) | 376 | (2,180 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes
|
(16,595 | ) | 13,380 | (3,215 | ) | (3,834 | ) | 5,934 | 2,100 | |||||||||||||||||||
Income tax provision
|
3,262 | - | 3,262 | 4,062 | - | 4,062 | ||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | (19,857 | ) | $ | 13,380 | $ | (6,477 | ) | $ | (7,896 | ) | $ | 5,934 | $ | (1,962 | ) | ||||||||||||
* Basic income (loss) from continuing operations
|
$ | (0.95 | ) | $ | 0.64 | $ | (0.31 | ) | $ | (0.38 | ) | $ | 0.28 | $ | (0.09 | ) | ||||||||||||
* Diluted income (loss) from continuing operations
|
$ | (0.95 | ) | $ | 0.64 | $ | (0.31 | ) | $ | (0.38 | ) | $ | 0.28 | $ | (0.09 | ) | ||||||||||||
Basic weighted average number of shares
|
20,821 | 20,821 | 20,821 | 20,859 | 20,859 | 20,859 | ||||||||||||||||||||||
Diluted weighted average number of shares
|
20,821 | 20,821 | 20,821 | 20,859 | 20,859 | 20,859 |
(a)
|
Relates primarily to stock-based compensation granted to our new Board of Directors of $1.5 million, costs incurred with responding to activist shareholders and related Board of Directors search fees as well as legal and other items.
|
(b)
|
Relates primarily to severance charges associated with the departure of our former Chief Executive Officer and Chief Financial Officer.
|
(c)
|
Relates primarily to capitalized internally developed software, impairment of net assets in our publishing and printing business in Uruguay as well as impairment of goodwill related to our staffing business in Uruguay.
|
(d)
|
Relates to non-cash foreign exchange translation gain or loss on our intercompany balances.
|
(e)
|
Relates to special bonus provided to our Chief Financial Officer for the filing of our 2011 and 2012 Form 10-K.
|
(f)
|
Relates to severance charges primarily in our Staffing segment from our divestiture of ProcureStaff and our traditional staffing restructuring.
|
Three Months Ended
|
||||||||
August 2, 2015
|
August 3, 2014
|
|||||||
Non-GAAP income (loss) from continuing operations
|
$ | (731 | ) | $ | 3,680 | |||
Adjustments:
|
||||||||
Depreciation and amortization
|
1,700 | 1,953 | ||||||
Share-based compensation expense (a)
|
340 | 72 | ||||||
Other (income) loss, net (b)
|
749 | 796 | ||||||
Provision for income taxes
|
1,351 | 738 | ||||||
Adjusted EBITDA
|
$ | 3,409 | $ | 7,239 |
Nine Months Ended
|
||||||||
August 2, 2015
|
August 3, 2014
|
|||||||
Non-GAAP income (loss) from continuing operations
|
$ | (6,477 | ) | $ | (1,962 | ) | ||
Adjustments:
|
||||||||
Depreciation and amortization
|
5,110 | 7,218 | ||||||
Share-based compensation expense (a)
|
1,058 | 398 | ||||||
Other (income) loss, net (b)
|
1,972 | 2,180 | ||||||
Provision for income taxes
|
3,262 | 4,062 | ||||||
Adjusted EBITDA
|
$ | 4,925 | $ | 11,896 |