0000947871-16-001484.txt : 20160908 0000947871-16-001484.hdr.sgml : 20160908 20160908162341 ACCESSION NUMBER: 0000947871-16-001484 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20160908 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160908 DATE AS OF CHANGE: 20160908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOLT INFORMATION SCIENCES, INC. CENTRAL INDEX KEY: 0000103872 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 135658129 STATE OF INCORPORATION: NY FISCAL YEAR END: 1101 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09232 FILM NUMBER: 161876423 BUSINESS ADDRESS: STREET 1: 1133 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 212-704-2400 MAIL ADDRESS: STREET 1: 1133 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: VOLT INFORMATION SCIENCES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: VOLT TECHNICAL CORP DATE OF NAME CHANGE: 19680913 8-K 1 ss9486_8k.htm CURRENT REPORT
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  September 8, 2016
 
VOLT INFORMATION SCIENCES, INC.
(Exact name of registrant as specified in its charter)
 
New York
001-9232
13- 5658129
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification
Number)

1133 Avenue of the Americas, New York, New York
10036
(Address of principal executive offices)
(Zip Code)
 
 
(212) 704-2400
(Registrant’s Telephone Number, Including Area Code)
  
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
£
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
 
On September 8, 2016, Volt Information Sciences, Inc. issued a press release announcing earnings for its fiscal third quarter ended July 31, 2016.  A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety.
 

Item 9.01
Financial Statements and Exhibits
 
 
(d)
Exhibits
 
Exhibit No.
Description of Exhibit
99.1
Press Release of Volt Information Sciences, Inc. dated September 8, 2016 announcing earnings for its fiscal third quarter ended July 31, 2016.

 
 
 
 
 
 
 
 
 
 
 
 

 
  
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  
  VOLT INFORMATION SCIENCES, INC.  
         
         
  By: /s/ Paul Tomkins  
   
Paul Tomkins, Senior Vice President
and Chief Financial Officer
 
       
         
 
 
Date:  September 8, 2016
 
 
 
 
 
 
 
 
 
 
 

 
 
EXHIBIT INDEX
 
Exhibit No.
Description of Exhibit
99.1
Press Release of Volt Information Sciences, Inc. dated September 8, 2016 announcing earnings for its fiscal third quarter ended July 31, 2016.


 
 
 
 
 
 
 
 
 
 


EX-99.1 2 ss9486_ex9901.htm PRESS RELEASE
  
 
FOR IMMEDIATE RELEASE

Volt Information Sciences Reports Fiscal 2016 Third Quarter Financial Results

NEW YORK, NY, September 8, 2016 – Volt Information Sciences, Inc. (“Volt” or “the Company”) (NYSE-MKT: VISI), a global provider of staffing services and information technology infrastructure services, today reported results for its third quarter ended July 31, 2016. Key elements include:
 
 
·
Third quarter net revenue of $330.5 million down 1.5% compared to the prior quarter and down 9.4% year-over-year
 
 
·
Third quarter loss from continuing operations of $4.6 million or $4.1 million excluding special items
 
 
·
Third quarter selling, administrative and other operating costs of $49.7 million lower by 3.3% compared to prior quarter and lower by 14.3% year-over-year due to headcount reductions and other initiatives to improve operating efficiencies
 
 
·
As of the end of the third quarter, the Company had $49.3 million of available liquidity for working capital requirements, compared to $27.0 million a year ago
 
Commenting on Volt’s third quarter performance, Michael Dean, President and CEO, said, “With continued measurable improvement this past quarter, I am pleased with our overall success in executing our turnaround plan. While our progress is evident across most aspects of the enterprise, our improving revenue performance provides the most compelling signal that our plan is taking hold.  After normalizing for fewer work days during the fiscal third quarter, staffing segment revenue increased slightly on a sequential quarter basis.  Importantly, we continue to add to our book of business with several recent new customer engagements. In addition, initiatives to improve our cost structure helped to reduce selling, administrative and other operating costs by 3% compared with the prior quarter and 14% compared to the third quarter last year. In fact, actions taken over the past year to streamline Volt’s cost structure will result in annual savings of approximately $13.0 million excluding Maintech. Based on our ongoing progress, I remain confident that our actions will lead to a significant improvement in our financial performance in the quarters and years ahead.”

Fiscal 2016 Third Quarter Results
Total revenue for the fiscal 2016 third quarter was $330.5 million, down $4.9 million, or 1.5% compared to total revenue of $335.4 million in the second quarter of fiscal 2016. Compared to the prior year period, total revenue decreased $34.2 million or 9.4% compared to $364.7 million in the third quarter of fiscal 2015.

Staffing Services segment revenue was $313.4 million, a $3.8 million or 1.2% decrease compared to $317.2 million in the second quarter of fiscal 2016. Compared to the prior year period, Staffing Services segment revenues declined $28.0 million, or 8.2% compared to Staffing Services revenues of $341.4 million in the third quarter of fiscal 2015. Other segment revenue was $17.1 million in the third quarter of fiscal 2016, compared to $18.2 million in the second quarter of fiscal 2016 and $23.3 million in the prior year period.
 
 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 2 of 8
 
Net loss of $4.6 million in the third quarter of fiscal 2016 included $1.0 million of restructuring and severance costs, partially offset by $0.5 million related to the gain on the sale of real estate. Excluding the impact of these special items, net loss for the third quarter of 2016 would have been $4.1 million on a Non-GAAP basis.

Adjusted EBITDA, which is also a Non-GAAP measure, was $0.7 million in the fiscal 2016 third 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.

Financing
In order to better align the covenants to the timing of certain liquidity events, in July 2016, the Company further amended its Financing Program with PNC Bank to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of the Company's subsidiary, Maintech Incorporated, if it is closed on or before September 30, 2016, and 2) October 30, 2016; thereafter it increases to $50.0 million.

On September 6, 2016, the Company amended its Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. The Company entered into this amendment to utilize the additional borrowing base provided by its current and potential growth in eligible accounts receivable balances.

Liquidity
As of July 31, 2016, the Company had $49.3 million of available liquidity for working capital requirements as compared to $27.0 million in the prior year period.

Conference Call and Webcast
A conference call and simultaneous webcast to discuss the fiscal 2016 third quarter financial results will be held today at 4:30 p.m. Eastern Time / 1:30 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 877-407-9039 (201-689-8470 for international callers) and reference the "Volt Information Sciences Earnings Conference Call."

Following the call, an audio replay will be available beginning Thursday, September 8, 2016 at 7:30 p.m. Eastern Time through Thursday, September 22, 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 # 13643965. 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.

 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 3 of 8
 
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 consist 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. For more information on VMC, visit www.vmc.com.
 
Forward-Looking Statements
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.

Investor Contacts:
Paul Tomkins
Volt Information Sciences, Inc.
voltinvest@volt.com
212-704-7921

Lasse Glassen
Addo Investor Relations
lglassen@addoir.com
424-238-6249
--Financial Tables to Follow--
 
 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 4 of 8
 
Results of Operations
(in thousands, except per share data)
(Unaudited)
 
   
Three Months Ended
   
Nine Months Ended
 
   
July 31, 2016
   
May 1, 2016
   
August 2, 2015
   
July 31, 2016
   
August 2, 2015
 
                               
Revenue:
                             
Staffing services revenue
  $ 313,428     $ 317,247     $ 341,383     $ 939,356     $ 1,064,481  
Other revenue
    17,062       18,192       23,285       53,403       68,442  
Net revenue
    330,490       335,439       364,668       992,759       1,132,923  
                                         
Expenses:
                                       
Direct cost of staffing services revenue
    266,684       267,826       287,554       798,682       900,909  
Cost of other revenue
    15,110       15,887       19,696       47,785       59,210  
Selling, administrative and other operating costs
    49,712       51,382       58,025       154,019       178,227  
Restructuring and severance costs
    970       840       1,867       4,571       3,093  
Impairment charges
    -       -       580       -       5,954  
Gain on sale of building
    -       (1,663 )     -       (1,663 )     -  
Total expenses
    332,476       334,272       367,722       1,003,394       1,147,393  
                                         
Operating income (loss)
    (1,986 )     1,167       (3,054 )     (10,635 )     (14,470 )
                                         
Interest income (expense), net
    (826 )     (862 )     (571 )     (2,346 )     (1,935 )
Foreign exchange gain (loss), net
    (1,003 )     (579 )     1,010       (1,238 )     (153 )
Other income (expense), net
    (402 )     (420 )     (178 )     (1,101 )     (37 )
Loss from continuing operations before income taxes
    (4,217 )     (694 )     (2,793 )     (15,320 )     (16,595 )
Income tax provision
    393       1,091       1,351       2,037       3,262  
Loss from continuing operations
    (4,610 )     (1,785 )     (4,144 )     (17,357 )     (19,857 )
Loss from discontinued operations
    -       -       -       -       (4,519 )
Net loss
  $ (4,610 )   $ (1,785 )   $ (4,144 )   $ (17,357 )   $ (24,376 )
                                         
Per share data:
                                       
Basic:
                                       
Loss from continuing operations
  $ (0.22 )   $ (0.09 )   $ (0.20 )   $ (0.83 )   $ (0.95 )
Loss from discontinued operations
    -       -       -       -       (0.22 )
Net loss
  $ (0.22 )   $ (0.09 )   $ (0.20 )   $ (0.83 )   $ (1.17 )
Weighted average number of shares
    20,846       20,814       20,741       20,824       20,821  
                                         
Diluted:
                                       
Loss from continuing operations
  $ (0.22 )   $ (0.09 )   $ (0.20 )   $ (0.83 )   $ (0.95 )
Loss from discontinued operations
    -       -       -       -       (0.22 )
Net loss
  $ (0.22 )   $ (0.09 )   $ (0.20 )   $ (0.83 )   $ (1.17 )
Weighted average number of shares
    20,846       20,814       20,741       20,824       20,821  
                                         
Segment data:
                                       
Revenue:
                                       
Staffing Services
  $ 313,428     $ 317,247     $ 341,383     $ 939,356     $ 1,064,481  
Other Segment
    17,062       18,192       23,285       53,403       68,442  
Net revenue
  $ 330,490     $ 335,439     $ 364,668     $ 992,759     $ 1,132,923  
                                         
Operating income (loss):
                                       
Staffing Services
  $ 6,109     $ 7,934     $ 8,161     $ 15,777     $ 22,128  
Other Segment
    465       224       1,327       318       (4,283 )
Corporate general & administrative
    (8,560 )     (8,654 )     (12,542 )     (28,393 )     (32,315 )
Gain on sale of building
    -       1,663       -       1,663       -  
Operating income (loss)
  $ (1,986 )   $ 1,167     $ (3,054 )   $ (10,635 )   $ (14,470 )

Commencing in the first quarter of fiscal 2016, the Company changed its methodology for the allocation of costs to more effectively reflect and measure the individual businesses’ financial and operational efficiency. Prior period segment results have been revised for these changes.
 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 5 of 8
 
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

   
Nine Months Ended
 
   
July 31, 2016
   
August 2, 2015
 
             
Cash and cash equivalents, beginning of the period
  $ 10,188     $ 6,723  
                 
Cash used in all other operating activities
    (12,835 )     (7,017 )
Changes in operating assets and liabilities
    11,520       23,123  
Net cash provided by (used in) operating activities
    (1,315 )     16,106  
                 
Proceeds from sale of property and equipment
    36,795       389  
Net cash used in all other investing activities
    (14,188 )     (4,690 )
Net cash provided by (used in) investing activities
    22,607       (4,301 )
                 
Decrease in cash restricted as collateral for borrowings
    -       10,436  
Net change in borrowings
    (8,000 )     (3,506 )
Repayment of long-term debt
    (7,295 )     (676 )
Purchases of common stock under repurchase program
    -       (4,262 )
Net cash used in all other financing activities
    (761 )     (242 )
Net cash provided by (used in) financing activities
    (16,056 )     1,750  
                 
Effect of exchange rate changes on cash and cash equivalents
    (2,538 )     (3,679 )
                 
Net cash used in discontinued operations
    -       (4,056 )
                 
Net increase in cash and cash equivalents
    2,698       5,820  
                 
Change in cash from discontinued operations
    -       (211 )
                 
Cash and cash equivalents, end of the period
  $ 12,886     $ 12,332  
                 
Cash paid during the period:
               
Interest
  $ 2,436     $ 2,435  
Income taxes
  $ 3,727     $ 1,638  

 
 
 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 6 of 8
 
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
   
July 31, 2016
   
November 1, 2015
 
ASSETS
 
(unaudited)
       
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 12,886     $ 10,188  
Restricted cash and short-term investments
    16,392       14,977  
Trade accounts receivable, net of allowances of $718 and $960, respectively
    179,088       198,385  
Recoverable income taxes
    17,244       16,633  
Prepaid insurance and other current assets
    13,396       15,865  
Assets held for sale
    19,680       22,943  
TOTAL CURRENT ASSETS
    258,686       278,991  
Other assets, excluding current portion
    25,573       23,740  
Property, equipment and software, net
    27,783       24,095  
TOTAL ASSETS
  $ 312,042     $ 326,826  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Accrued compensation
  $ 29,850     $ 29,548  
Accounts payable
    35,113       39,164  
Accrued taxes other than income taxes
    22,962       22,719  
Accrued insurance and other
    31,170       34,391  
Short-term borrowings, including current portion of long-term debt
    92,000       982  
Income taxes payable
    -       1,658  
Liabilities held for sale
    5,571       7,345  
TOTAL CURRENT LIABILITIES
    216,666       135,807  
Accrued insurance and other, excluding current portion
    15,304       13,699  
Deferred gain on sale of real estate, excluding current portion
    26,594       -  
Income taxes payable, excluding current portion
    6,647       6,516  
Long-term debt, excluding current portion
    -       106,313  
TOTAL LIABILITIES
    265,211       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 - 20,894,383 and 20,801,080, respectively
    2,374       2,374  
Paid-in capital
    75,861       75,803  
Retained earnings
    18,692       38,034  
Accumulated other comprehensive loss
    (9,104 )     (7,994 )
Treasury stock, at cost; 2,843,620 shares and 2,936,923 shares, respectively
    (40,992 )     (43,726 )
TOTAL STOCKHOLDERS’ EQUITY
    46,831       64,491  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 312,042     $ 326,826  

 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 7 of 8
 
Unaudited Non-GAAP Statement of Operations and Reconciliations
(in thousands, except earnings per share)

   
Three Months Ended July 31, 2016
   
Three Months Ended August 2, 2015
 
   
GAAP
   
Special Items
 
Ref
 
Non-GAAP
   
GAAP
   
Special Items
 
Ref
 
Non-GAAP
 
                                         
Revenue:
                                       
Staffing services revenue
  $ 313,428     $ -       $ 313,428     $ 341,383     $ -       $ 341,383  
Other revenue
    17,062       -         17,062       23,285       -         23,285  
Net revenue
    330,490       -         330,490       364,668       -         364,668  
                                                     
Expenses:
                                                   
Direct cost of staffing services revenue
    266,684       -         266,684       287,554       -         287,554  
Cost of other revenue
    15,110       -         15,110       19,696       -         19,696  
Selling, administrative and other operating costs
    49,712       486  
(a)
    50,198       58,025       (1,976 )
(c)
    56,049  
Restructuring and severance costs
    970       (970 )
(b)
    -       1,867       (1,867 )
(d)
    -  
Impairment charges
    -       -  
 
    -       580       (580 )
(e)
    -  
Total expenses
    332,476       (484 )       331,992       367,722       (4,423 )       363,299  
                                                     
Operating income (loss)
    (1,986 )     484         (1,502 )     (3,054 )     4,423         1,369  
                                                     
Other income (expense), net:
                                                   
Interest income (expense), net
    (826 )     -         (826 )     (571 )     -         (571 )
Foreign exchange gain (loss), net
    (1,003 )     -         (1,003 )     1,010       (1,010 )
(f)
    -  
Other income (expense), net
    (402 )     -         (402 )     (178 )     41  
(g)
    (137 )
Total other income (expense), net
    (2,231 )     -         (2,231 )     261       (969 )       (708 )
                                                     
Income (loss) from continuing operations before income taxes
    (4,217 )     484         (3,733 )     (2,793 )     3,454         661  
Income tax provision
    393       -         393       1,351       -         1,351  
Income (loss) from continuing operations
  $ (4,610 )   $ 484       $ (4,126 )   $ (4,144 )   $ 3,454       $ (690 )
                                                     
* Basic income (loss) from continuing operations
  $ (0.22 )   $ 0.02       $ (0.20 )   $ (0.20 )   $ 0.17       $ (0.03 )
* Diluted income (loss) from continuing operations
  $ (0.22 )   $ 0.02       $ (0.20 )   $ (0.20 )   $ 0.17       $ (0.03 )
                                                     
Basic weighted average number of shares
    20,846       20,846         20,846       20,741       20,741         20,741  
Diluted weighted average number of shares
    20,846       20,846         20,846       20,741       20,741         20,741  
 
Special item adjustments consist of the following:
 
(a)
Relates primarily to the amortization of the gain on the sale of the Orange, CA facility.
 
(b)
Relates primarily to company-wide cost reduction plan.
 
(c)
Relates primarily to stock-based compensation granted to our new Board of Directors of $1.5 million and $0.5 million of legal and other items.
 
(d)
Relates primarily to severance charges associated with the departure of our former Chief Executive Officer ($1.5 million).
 
(e)
Relates primarily to the impairment of capitalized internally developed software as well as an adjustment to the impairment of net assets.
 
(f)
Relates primarily to non-cash foreign exchange gain or loss on our intercompany balances.
 
(g)
Relates primarily to the sale of non-core operations.

* Earnings per share may not add in certain periods due to rounding.
 
 
 
 

 
 
Volt Information Sciences Reports Fiscal 2016 Third Quarter Results
September 8, 2016
Page 8 of 8
 
Unaudited Reconciliation of GAAP Loss from Continuing Operations
to Adjusted EBITDA
(in thousands)

   
Three Months Ended
 
   
July 31, 2016
   
August 2, 2015
 
             
GAAP loss from continuing operations
  $ (4,610 )   $ (4,144 )
Special items
    484       3,454  
Non-GAAP loss from continuing operations
    (4,126 )     (690 )
                 
Adjustments:
               
Depreciation and amortization
    1,484       1,700  
Share-based compensation expense
    755       340  
Other (income) loss, net (a)
    2,231       708  
Provision for income taxes
    393       1,351  
Adjusted EBITDA
  $ 737     $ 3,409  

(a) Includes interest income (expense) and other income (expense), net.
 
 
 
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. Special items include impairments, restructuring and certain expenses or income not indicative of our current or future period performance and are more fully disclosed in the tables.
 
 
 

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