New York
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001-9232
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13- 5658129
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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1133 Avenue of the Americas, New York, New York
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10036
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(Address of principal executive offices)
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(Zip Code)
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£
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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£
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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£
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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£
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description of Exhibit
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99.1
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Press Release of Volt Information Sciences, Inc. dated June 8, 2016 announcing earnings for its fiscal second quarter ended May 1, 2016.
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VOLT INFORMATION SCIENCES, INC. | ||||
By: | /s/ Paul Tomkins | |||
Paul Tomkins, Senior Vice President | ||||
and Chief Financial Officer | ||||
Exhibit No.
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Description of Exhibit
|
99.1
|
Press Release of Volt Information Sciences, Inc. dated June 8, 2016 announcing earnings for its fiscal second quarter ended May 1, 2016.
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|
·
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Second quarter net revenue of $335.4 million up 2.6% compared to the prior quarter and down 12.9% year-over-year
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|
·
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Second quarter loss from continuing operations of $1.8 million or $2.5 million excluding special items
|
|
·
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During the second quarter, the Company completed a sale-leaseback transaction for its office facility in Orange, California, and also sold its office facility in San Diego, California with combined net proceeds totaling $29.1 million
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|
·
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As of the end of the second quarter, the Company had $58.8 million of available liquidity for working capital requirements, up from $44.7 million at the end of the prior quarter and $16.9 million a year ago
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|
·
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The Company strengthened its top leadership team with the addition of four experienced senior executives and one internal promotion
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Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 2 of 9
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Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 3 of 9
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Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 4 of 9
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Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 5 of 9
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Three Months Ended
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Six Months Ended
|
|||||||||||||||||||
May 1, 2016
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January 31, 2016
|
May 3, 2015
|
May 1, 2016
|
May 3, 2015
|
||||||||||||||||
Revenue:
|
||||||||||||||||||||
Staffing services revenue
|
$ | 317,247 | $ | 308,681 | $ | 362,277 | $ | 625,928 | $ | 723,098 | ||||||||||
Other revenue
|
18,192 | 18,149 | 22,912 | 36,341 | 45,157 | |||||||||||||||
Net revenue
|
335,439 | 326,830 | 385,189 | 662,269 | 768,255 | |||||||||||||||
Expenses:
|
||||||||||||||||||||
Direct cost of staffing services revenue
|
267,826 | 264,172 | 303,837 | 531,998 | 613,355 | |||||||||||||||
Cost of other revenue
|
15,887 | 16,788 | 19,909 | 32,675 | 39,514 | |||||||||||||||
Selling, administrative and other operating costs
|
51,382 | 52,925 | 59,912 | 104,307 | 120,202 | |||||||||||||||
Restructuring and severance costs
|
840 | 2,761 | 251 | 3,601 | 1,226 | |||||||||||||||
Impairment charges
|
- | - | 5,374 | - | 5,374 | |||||||||||||||
Gain on sale of building
|
(1,663 | ) | - | - | (1,663 | ) | - | |||||||||||||
Total expenses
|
334,272 | 336,646 | 389,283 | 670,918 | 779,671 | |||||||||||||||
Operating income (loss)
|
1,167 | (9,816 | ) | (4,094 | ) | (8,649 | ) | (11,416 | ) | |||||||||||
Interest income (expense), net
|
(862 | ) | (658 | ) | (730 | ) | (1,520 | ) | (1,364 | ) | ||||||||||
Foreign exchange gain (loss), net
|
(579 | ) | 344 | (1,600 | ) | (235 | ) | (1,163 | ) | |||||||||||
Other income (expense), net
|
(420 | ) | (279 | ) | 43 | (699 | ) | 141 | ||||||||||||
Loss from continuing operations before income taxes
|
(694 | ) | (10,409 | ) | (6,381 | ) | (11,103 | ) | (13,802 | ) | ||||||||||
Income tax provision
|
1,091 | 553 | 532 | 1,644 | 1,911 | |||||||||||||||
Loss from continuing operations
|
(1,785 | ) | (10,962 | ) | (6,913 | ) | (12,747 | ) | (15,713 | ) | ||||||||||
Loss from discontinued operations
|
- | - | - | - | (4,519 | ) | ||||||||||||||
Net loss
|
$ | (1,785 | ) | $ | (10,962 | ) | $ | (6,913 | ) | $ | (12,747 | ) | $ | (20,232 | ) | |||||
Per share data:
|
||||||||||||||||||||
Basic:
|
||||||||||||||||||||
Loss from continuing operations
|
$ | (0.09 | ) | $ | (0.53 | ) | $ | (0.33 | ) | $ | (0.61 | ) | $ | (0.75 | ) | |||||
Loss from discontinued operations
|
- | - | - | - | (0.22 | ) | ||||||||||||||
Net loss
|
$ | (0.09 | ) | $ | (0.53 | ) | $ | (0.33 | ) | $ | (0.61 | ) | $ | (0.97 | ) | |||||
Weighted average number of shares
|
20,814 | 20,813 | 20,793 | 20,813 | 20,861 | |||||||||||||||
Diluted:
|
||||||||||||||||||||
Loss from continuing operations
|
$ | (0.09 | ) | $ | (0.53 | ) | $ | (0.33 | ) | $ | (0.61 | ) | $ | (0.75 | ) | |||||
Loss from discontinued operations
|
- | - | - | - | (0.22 | ) | ||||||||||||||
Net loss
|
$ | (0.09 | ) | $ | (0.53 | ) | $ | (0.33 | ) | $ | (0.61 | ) | $ | (0.97 | ) | |||||
Weighted average number of shares
|
20,814 | 20,813 | 20,793 | 20,813 | 20,861 | |||||||||||||||
Segment data:
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Staffing Services
|
$ | 317,247 | $ | 308,681 | $ | 362,277 | $ | 625,928 | $ | 723,098 | ||||||||||
Other Segment
|
18,192 | 18,149 | 22,912 | 36,341 | 45,157 | |||||||||||||||
Net revenue
|
$ | 335,439 | $ | 326,830 | $ | 385,189 | $ | 662,269 | $ | 768,255 | ||||||||||
Operating income (loss):
|
||||||||||||||||||||
Staffing Services
|
$ | 7,934 | $ | 1,734 | $ | 10,337 | $ | 9,668 | $ | 13,967 | ||||||||||
Other Segment
|
224 | (371 | ) | (5,325 | ) | (147 | ) | (5,610 | ) | |||||||||||
Corporate general & administrative
|
(8,654 | ) | (11,179 | ) | (9,106 | ) | (19,833 | ) | (19,773 | ) | ||||||||||
Gain on sale of building
|
1,663 | - | - | 1,663 | - | |||||||||||||||
Operating income (loss)
|
$ | 1,167 | $ | (9,816 | ) | $ | (4,094 | ) | $ | (8,649 | ) | $ | (11,416 | ) |
Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 6 of 9
|
Six months ended
|
||||||||
May 1, 2016
|
May 3, 2015
|
|||||||
Cash and cash equivalents, beginning of the period
|
$ | 10,188 | $ | 6,723 | ||||
Cash used in all other operating activities
|
(10,230 | ) | (6,277 | ) | ||||
Changes in operating assets and liabilities
|
12,719 | 7,259 | ||||||
Net cash provided by operating activities
|
2,489 | 982 | ||||||
Proceeds from sale of property and equipment
|
36,878 | 227 | ||||||
Net cash used in all other investing activities
|
(9,325 | ) | (2,981 | ) | ||||
Net cash provided by (used in) investing activities
|
27,553 | (2,754 | ) | |||||
Decrease in cash restricted as collateral for borrowings
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- | 10,352 | ||||||
Net change in borrowings
|
(8,000 | ) | 1,494 | |||||
Repayment of long-term debt
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(7,295 | ) | (446 | ) | ||||
Purchases of common stock under repurchase program
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- | (4,262 | ) | |||||
Net cash provided by (used in) all other financing activities
|
(536 | ) | 206 | |||||
Net cash provided by (used in) financing activities
|
(15,831 | ) | 7,344 | |||||
Effect of exchange rate changes on cash and cash equivalents
|
(1,228 | ) | (1,958 | ) | ||||
Net cash used in discontinued operations
|
- | (4,056 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
12,983 | (442 | ) | |||||
Change in cash from discontinued operations
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- | (211 | ) | |||||
Cash and cash equivalents, end of the period
|
$ | 23,171 | $ | 6,070 | ||||
|
||||||||
Cash paid during the period:
|
||||||||
Interest
|
$ | 1,662 | $ | 1,690 | ||||
Income taxes
|
$ | 2,473 | $ | 634 |
Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 7 of 9
|
May 1, 2016
|
November 1, 2015
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 23,171 | $ | 10,188 | ||||
Restricted cash and short-term investments
|
11,647 | 14,977 | ||||||
Trade accounts receivable, net of allowances of $749 and $960, respectively
|
177,178 | 198,385 | ||||||
Recoverable income taxes
|
17,762 | 17,583 | ||||||
Prepaid insurance and other current assets
|
17,724 | 15,865 | ||||||
Assets held for sale
|
21,572 | 22,943 | ||||||
TOTAL CURRENT ASSETS
|
269,054 | 279,941 | ||||||
Other assets, excluding current portion
|
24,695 | 22,790 | ||||||
Property, equipment and software, net
|
24,186 | 24,095 | ||||||
TOTAL ASSETS
|
$ | 317,935 | $ | 326,826 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accrued compensation
|
$ | 28,601 | $ | 29,548 | ||||
Accounts payable
|
31,312 | 39,164 | ||||||
Accrued taxes other than income taxes
|
26,205 | 22,719 | ||||||
Accrued insurance and other
|
34,327 | 34,391 | ||||||
Short-term borrowings, including current portion of long-term debt
|
92,000 | 982 | ||||||
Income taxes payable
|
- | 1,658 | ||||||
Liabilities held for sale
|
6,119 | 7,345 | ||||||
TOTAL CURRENT LIABILITIES
|
218,564 | 135,807 | ||||||
Accrued insurance and other, excluding current portion
|
13,606 | 13,699 | ||||||
Deferred gain on sale of real estate, excluding current portion
|
27,080 | - | ||||||
Income taxes payable, excluding current portion
|
6,585 | 6,516 | ||||||
Long-term debt, excluding current portion
|
- | 106,313 | ||||||
TOTAL LIABILITIES
|
265,835 | 262,335 | ||||||
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 23,738,003, respectively; Outstanding - 20,832,503 and 20,801,080, respectively
|
2,374 | 2,374 | ||||||
Paid-in capital
|
75,480 | 75,803 | ||||||
Retained earnings
|
24,569 | 38,034 | ||||||
Accumulated other comprehensive loss
|
(7,692 | ) | (7,994 | ) | ||||
Treasury stock, at cost; 2,905,500 shares and 2,936,923 shares
|
(42,631 | ) | (43,726 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY
|
52,100 | 64,491 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 317,935 | $ | 326,826 |
Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 8 of 9
|
Three Months Ended May 1, 2016
|
Three Months Ended May 3, 2015
|
|||||||||||||||||||||||||
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
GAAP
|
Special Items
|
Ref
|
Non-GAAP
|
|||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||
Staffing services revenue
|
$ | 317,247 | $ | - | $ | 317,247 | $ | 362,277 | $ | - | $ | 362,277 | ||||||||||||||
Other revenue
|
18,192 | - | 18,192 | 22,912 | - | 22,912 | ||||||||||||||||||||
Net revenue
|
335,439 | - | 335,439 | 385,189 | - | 385,189 | ||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||
Direct cost of staffing services revenue
|
267,826 | - | 267,826 | 303,837 | - | 303,837 | ||||||||||||||||||||
Cost of other revenue
|
15,887 | - | 15,887 | 19,909 | - | 19,909 | ||||||||||||||||||||
Selling, administrative and other operating costs
|
51,382 | (103 | ) |
(a)
|
51,279 | 59,912 | (1,632 | ) |
(d)
|
58,280 | ||||||||||||||||
Restructuring and severance costs
|
840 | (840 | ) |
(b)
|
- | 251 | (251 | ) | - | |||||||||||||||||
Impairment charges
|
- | - | - | 5,374 | (5,374 | ) |
(e)
|
- | ||||||||||||||||||
Gain on sale of building
|
(1,663 | ) | 1,663 |
(c)
|
- | - | - | - | ||||||||||||||||||
Total expenses
|
334,272 | 720 | 334,992 | 389,283 | (7,257 | ) | 382,026 | |||||||||||||||||||
Operating income (loss)
|
1,167 | (720 | ) | 447 | (4,094 | ) | 7,257 | 3,163 | ||||||||||||||||||
Other income (expense), net:
|
||||||||||||||||||||||||||
Interest income (expense), net
|
(862 | ) | - | (862 | ) | (730 | ) | - | (730 | ) | ||||||||||||||||
Foreign exchange gain (loss), net
|
(579 | ) | - | (579 | ) | (1,600 | ) | 1,600 |
(f)
|
- | ||||||||||||||||
Other income (expense), net
|
(420 | ) | - | (420 | ) | 43 | - | 43 | ||||||||||||||||||
Total other income (expense), net
|
(1,861 | ) | - | (1,861 | ) | (2,287 | ) | 1,600 | (687 | ) | ||||||||||||||||
Income (loss) from continuing operations before income taxes
|
(694 | ) | (720 | ) | (1,414 | ) | (6,381 | ) | 8,857 | 2,476 | ||||||||||||||||
Income tax provision
|
1,091 | - | 1,091 | 532 | - | 532 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (1,785 | ) | $ | (720 | ) | $ | (2,505 | ) | $ | (6,913 | ) | $ | 8,857 | $ | 1,944 | ||||||||||
* Basic income (loss) from continuing operations
|
$ | (0.09 | ) | $ | (0.03 | ) | $ | (0.12 | ) | $ | (0.33 | ) | $ | 0.43 | $ | 0.09 | ||||||||||
* Diluted income (loss) from continuing operations
|
$ | (0.09 | ) | $ | (0.03 | ) | $ | (0.12 | ) | $ | (0.33 | ) | $ | 0.43 | $ | 0.09 | ||||||||||
Basic weighted average number of shares
|
20,814 | 20,814 | 20,814 | 20,793 | 20,793 | 20,793 | ||||||||||||||||||||
Diluted weighted average number of shares
|
20,814 | 20,814 | 20,814 | 20,793 | 20,793 | 20,793 |
|
(a)
|
Relates primarily to fees incurred to attract world class executive talent partially offset by the amortization of the gain on the sale of the Orange, CA facility.
|
|
(b)
|
Relates primarily to company-wide cost reduction plan implemented in November 2015.
|
|
(c)
|
Relates to the gain on the sale of the San Diego, CA facility
|
|
(d)
|
Relates primarily to costs incurred responding to activist shareholders and related Board of Director search fees, as well as legal and other items.
|
|
(e)
|
Relates primarily to the impairment of net assets in our publishing and printing business in Uruguay as well as the impairment of goodwill related to our staffing business in Uruguay.
|
|
(f)
|
Relates primarily to non-cash foreign exchange gain or loss on our intercompany balances.
|
Volt Information Sciences Reports Fiscal 2016 Second Quarter Results
June 8, 2016
Page 9 of 9
|
Three Months Ended
|
||||||||
May 1, 2016
|
May 3, 2015
|
|||||||
GAAP loss from continuing operations
|
$ | (1,785 | ) | $ | (6,913 | ) | ||
Special items
|
(720 | ) | 8,857 | |||||
Non-GAAP income (loss) from continuing operations
|
(2,505 | ) | 1,944 | |||||
Adjustments:
|
||||||||
Depreciation and amortization
|
1,519 | 1,639 | ||||||
Share-based compensation expense
|
78 | 242 | ||||||
Other (income) loss, net (a)
|
1,861 | 687 | ||||||
Provision for income taxes
|
1,091 | 532 | ||||||
Adjusted EBITDA
|
$ | 2,044 | $ | 5,044 |