Exhibit 99.1
Volt Information Sciences Reports 2019 Third Quarter Financial Results
NEW YORK, NY, September 5,
2019 – Volt Information Sciences, Inc. (“Volt” or “the Company”) (NYSE-AMERICAN: VISI), an international provider of staffing services and managed service programs, today reported results for its fiscal 2019 third quarter and nine months
ended July 28, 2019. Key highlights include:
| • |
Third quarter total Company net revenue of $233.2 million decreased 9.6% year-over-year, or 7.1% on a same-store basis
(excluding currency fluctuations and a business exited); while gross margin percentage improved 120 basis points, the fourth consecutive quarter of year-over-year margin growth
|
| • |
Third quarter total Company net loss was $6.1 million, an improvement of 47.0% when compared to a year ago primarily driven by improvements in gross margin as
well as a 9.1% reduction in selling, administrative and other operating costs
|
| • |
Third quarter Adjusted EBITDA improved 76.8% when compared to a year ago
|
| • |
For the nine months ended July 28, 2019, total Company net revenue was $738.7 million, a decrease of 4.6% year-over-year, or 2.7% on a same-store basis; Net
loss for the nine-month period was $14.4 million, an improvement of 51.6%, year-over-year
|
| • |
Subsequent to quarter-end, announced the appointment of Herb Mueller as Senior Vice President & Chief Financial Officer and Bob Houghton as Chief
Information Officer
|
Commenting on Volt’s performance, Linda Perneau, President and CEO, said, “Overall, I remain very encouraged by the continuous
transformation in many key areas of the business. Our third quarter operational performance shows gross margins expanding nearly 120 basis points and SG&A decreasing over 9% compared with the third quarter last year. While we experienced
revenue headwinds in the third quarter driven primarily from a small percentage of clients, our determined focus on our sales strategy is yielding more wins and expansion opportunities than we have seen in recent years. The fundamental changes we
have made to the bedrock of the organization have far better positioned us for profitable growth.”
Fiscal 2019 Third Quarter Results
Total net revenue for the fiscal 2019 third quarter was $233.2 million, compared to $257.8 million in the third quarter of
fiscal 2018. On a same-store basis, net revenue decreased 7.1% year-over-year excluding net revenue contributed from a business exited during the past year and the effect of currency fluctuations.
Total gross margin in the third quarter of fiscal 2019 was 15.3%, an improvement of 120 basis points year-over-year. The
margin improvement was driven by improved customer pricing and lower payroll taxes.
Selling, administrative and other operating costs in the third quarter of fiscal 2019 decreased $3.8 million, or 9.1%, to $38.4 million
from $42.2 million in the third quarter of fiscal 2018. This decrease was primarily due to on-going cost reductions in all areas of the business, including lower labor and facility expenses. Selling, administrative and other operating costs as a
percentage of revenue was 16.5% compared to 16.4% a year ago.
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 2 of 10
Net loss was $6.1 million in the third quarter of fiscal 2019, an improvement of $5.3 million, or 47.0% compared to $11.4 million in the
third quarter of fiscal 2018.
Adjusted EBITDA, which is a Non-GAAP measure, was a loss of $1.2 million in the fiscal 2019 third quarter, an improvement
of $3.8 million, or 76.8% compared to a loss of $5.0 million 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.
Nine Months Ended July 28, 2019 Financial Results
Total net revenue for the nine months ended July 28, 2019 was $738.7 million, compared to total net revenue of $774.4
million for the nine months ended July 29, 2018. On a same-store basis, net revenue declined 2.7% year-over-year excluding net revenue contributed from businesses exited during the past year and the effect of currency fluctuations.
Net loss was $14.4 million for the nine months ended July 28, 2019, an improvement of $15.4 million, or 51.6% compared to a net loss
of $29.8 million in the same period of fiscal 2018. Adjusted net loss from continuing operations, which is a Non-GAAP measure, was $12.7 million for the nine months ended July 28, 2019, an improvement of $15.7 million compared to an adjusted net
loss of $28.4 million in the same period of fiscal 2018. Adjusted EBITDA, which is a Non-GAAP measure, was a loss of $3.8 million for the nine months ended July 28, 2019, an improvement of $14.0 million from a loss of $17.8 million in the year ago
period.
For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.
Subsequent Events
Effective August 24, 2019 the Company appointed Herb Mueller as Senior Vice President & Chief Financial Officer. Mr.
Mueller brings over 30 years of finance expertise to the Company. Most recently, he served as the Chief Financial Officer and Executive Vice President at Resources Global Professionals (“RGP”), a California-based multinational provider of
professional consulting services and the operating subsidiary of Resources Connection, Inc., a publicly traded NASDAQ-listed company.
On August 20, 2019, the Company announced the appointment of Bob Houghton as Chief Information Officer. Mr. Houghton joins
Volt with over 25 years of experience in information technology, spending the past eight years at NetApp, Inc., a Fortune 500 hybrid cloud data services and data management company, where he most recently served as Chief Information Officer - West.
Over his career, Mr. Houghton has successfully designed, implemented and operationalized mission-critical strategies and IT systems for global enterprises.
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 3 of 10
Business Outlook
Volt’s outlook statements are based on current expectations. The following statements are forward-looking, and actual
results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below.
For
the fourth quarter of fiscal 2019, the Company expects total Company same-store
revenues to be approximately 4%– 6% below the fourth quarter of fiscal 2018.
The Company also expects sequential and year-over-year improvement at the
EBITDA line. This reflects improving revenue on a sequential basis from the
third quarter of fiscal 2019 and continuing progress on the bottom line.
Conference Call and Webcast
A conference call and simultaneous webcast to discuss the fiscal 2019 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 Linda Perneau and SVP and CFO Herb Mueller will host the conference call. Participants may 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 5, 2019 at 7:30 p.m. Eastern Time
through Thursday, September 19, 2019 at 11:59 p.m. Eastern Time. To access the replay, dial (844) 512-2921 (U.S.) or (412) 317-6671 (International) and enter the Conference ID #13693576. A replay of the webcast will also be available for 90 days
upon completion of the call, accessible through the Investors section of the Company’s website at www.volt.com.
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). Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services, and managed staffing services programs supporting primarily administrative, technical, information
technology, light-industrial and engineering positions. Our managed staffing programs involve managing the procurement and on-boarding of contingent workers from multiple providers. 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.
Forward-Looking Statements
This press release contains forward-looking statements, including the Company’s revenue outlook for the
fourth quarter of 2019, 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 (“SEC”). Copies of the Company’s
latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as filed with the SEC, are available without charge upon request to Volt Information Sciences, Inc., 50 Charles Lindbergh Blvd., Suite 206, Uniondale NY 11553,
Attention: Shareholder Relations. 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.
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 4 of 10
Note Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain Non-GAAP financial information, which includes adjustments for special
items and certain line items on a constant currency basis, as additional information for its segment revenue, consolidated net income (loss), 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 Non-GAAP measures on a constant currency basis, eliminating
special items and the impact of businesses sold or exited provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations because they permit
evaluation of the results of the Company without the effect of currency fluctuations, special items or the impact of businesses sold or exited that management believes make it more difficult to understand and evaluate the Company’s results of
operations. Special items include impairments, restructuring and severance as well as certain income or expenses which the Company does not consider indicative of the current and future period performance and are more fully disclosed in the tables.
Adjusted EBITDA is defined as earnings or loss before interest, income taxes, depreciation and
amortization (“EBITDA”) adjusted to exclude share-based compensation expense as well as the special items described above.
Adjusted EBITDA is a performance measure rather than a cash flow measure. The Company believes the
presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management.
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or
as a substitute for, analysis of the Company’s results of operations and operating cash flows as reported under GAAP. For example, Adjusted EBITDA does not reflect capital expenditures or contractual commitments; does not reflect changes in, or
cash requirements for, the Company’s working capital needs; does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and does not reflect cash required to pay income taxes.
The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures
computed by other companies because all companies do not calculate these measures in the same fashion.
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 5 of 10
Investor Contacts:
Volt Information Sciences, Inc.
voltinvest@volt.com
Lasse Glassen
Addo Investor Relations
lglassen@addoir.com
424-238-6249
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 6 of 10
|
Results of Operations
|
||||||||||||||||||||
|
(in thousands, except per share data)
|
||||||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
|
July 28, 2019
|
April 28, 2019
|
July 29, 2018
|
July 28, 2019
|
July 29, 2018
|
||||||||||||||||
|
Net revenue
|
$
|
233,176
|
$
|
252,070
|
$
|
257,808
|
$
|
738,682
|
$
|
774,365
|
||||||||||
|
Cost of services
|
197,528
|
215,813
|
221,448
|
629,078
|
664,695
|
|||||||||||||||
|
Gross margin
|
35,648
|
36,257
|
36,360
|
109,604
|
109,670
|
|||||||||||||||
|
Selling, administrative and other operating costs
|
38,395
|
38,939
|
42,222
|
117,144
|
132,076
|
|||||||||||||||
|
Restructuring and severance costs
|
2,017
|
724
|
3,108
|
2,800
|
3,730
|
|||||||||||||||
|
Impairment charges
|
79
|
347
|
-
|
426
|
155
|
|||||||||||||||
|
Operating loss
|
(4,843
|
)
|
(3,753
|
)
|
(8,970
|
)
|
(10,766
|
)
|
(26,291
|
)
|
||||||||||
|
Interest income (expense), net
|
(714
|
)
|
(699
|
)
|
(552
|
)
|
(2,159
|
)
|
(1,965
|
)
|
||||||||||
|
Foreign exchange gain (loss), net
|
(151
|
)
|
(314
|
)
|
(294
|
)
|
(252
|
)
|
(88
|
)
|
||||||||||
|
Other income (expense), net
|
(184
|
)
|
(166
|
)
|
(296
|
)
|
(589
|
)
|
(879
|
)
|
||||||||||
|
Loss before income taxes
|
(5,892
|
)
|
(4,932
|
)
|
(10,112
|
)
|
(13,766
|
)
|
(29,223
|
)
|
||||||||||
|
Income tax provision
|
165
|
233
|
1,306
|
671
|
576
|
|||||||||||||||
|
Net loss
|
$
|
(6,057
|
)
|
$
|
(5,165
|
)
|
$
|
(11,418
|
)
|
$
|
(14,437
|
)
|
$
|
(29,799
|
)
|
|||||
|
Per share data:
|
||||||||||||||||||||
|
Basic:
|
||||||||||||||||||||
|
Net loss
|
$
|
(0.29
|
)
|
$
|
(0.24
|
)
|
$
|
(0.54
|
)
|
$
|
(0.68
|
)
|
$
|
(1.42
|
)
|
|||||
|
Weighted average number of shares
|
21,157
|
21,082
|
21,071
|
21,106
|
21,044
|
|||||||||||||||
|
Diluted:
|
||||||||||||||||||||
|
Net loss
|
$
|
(0.29
|
)
|
$
|
(0.24
|
)
|
$
|
(0.54
|
)
|
$
|
(0.68
|
)
|
$
|
(1.42
|
)
|
|||||
|
Weighted average number of shares
|
21,157
|
21,082
|
21,071
|
21,106
|
21,044
|
|||||||||||||||
|
Segment data:
|
||||||||||||||||||||
|
Net revenue:
|
||||||||||||||||||||
|
North American Staffing
|
$
|
193,641
|
$
|
208,871
|
$
|
215,679
|
$
|
614,360
|
$
|
640,004
|
||||||||||
|
International Staffing
|
28,728
|
28,809
|
28,579
|
83,803
|
90,062
|
|||||||||||||||
|
North American MSP
|
9,555
|
9,579
|
6,959
|
27,351
|
21,778
|
|||||||||||||||
|
Corporate and Other
|
1,856
|
5,431
|
7,456
|
15,133
|
25,520
|
|||||||||||||||
|
Eliminations
|
(604
|
)
|
(620
|
)
|
(865
|
)
|
(1,965
|
)
|
(2,999
|
)
|
||||||||||
|
Net revenue
|
$
|
233,176
|
$
|
252,070
|
$
|
257,808
|
$
|
738,682
|
$
|
774,365
|
||||||||||
|
Operating income (loss):
|
||||||||||||||||||||
|
North American Staffing
|
$
|
4,365
|
$
|
2,544
|
$
|
2,961
|
$
|
10,796
|
$
|
3,906
|
||||||||||
|
International Staffing
|
342
|
628
|
677
|
1,274
|
1,397
|
|||||||||||||||
|
North American MSP
|
1,120
|
1,100
|
107
|
3,185
|
789
|
|||||||||||||||
|
Corporate and Other
|
(10,670
|
)
|
(8,025
|
)
|
(12,715
|
)
|
(26,021
|
)
|
(32,383
|
)
|
||||||||||
|
Operating loss
|
$
|
(4,843
|
)
|
$
|
(3,753
|
)
|
$
|
(8,970
|
)
|
$
|
(10,766
|
)
|
$
|
(26,291
|
)
|
|||||
|
Work days
|
63
|
65
|
63
|
187
|
187
|
|||||||||||||||
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 7 of 10
|
Condensed Consolidated Statements of Cash Flows
|
||||||||
|
(in thousands)
|
||||||||
|
Nine Months ended
|
||||||||
|
July 28, 2019
|
July 29, 2018
|
|||||||
|
Cash, cash equivalents and restricted cash beginning of the period
|
$
|
36,544
|
$
|
54,097
|
||||
|
Cash used in all other operating activities
|
(10,561
|
)
|
(25,057
|
)
|
||||
|
Changes in operating assets and liabilities
|
20,722
|
15,032
|
||||||
|
Net cash provided by (used in) operating activities
|
10,161
|
(10,025
|
)
|
|||||
|
Purchases of property, equipment, and software
|
(6,305
|
)
|
(2,332
|
)
|
||||
|
Net cash provided by all other investing activities
|
78
|
233
|
||||||
|
Net cash used in investing activities
|
(6,227
|
)
|
(2,099
|
)
|
||||
|
Net draw-down of borrowings
|
5,000
|
-
|
||||||
|
Debt issuance costs
|
(621
|
)
|
(1,415
|
)
|
||||
|
Net cash used in all other financing activities
|
(316
|
)
|
(269
|
)
|
||||
|
Net cash provided by (used in) financing activities
|
4,063
|
(1,684
|
)
|
|||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(633
|
)
|
(817
|
)
|
||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
7,364
|
(14,625
|
)
|
|||||
|
Cash, cash equivalents and restricted cash end of the period
|
$
|
43,908
|
$
|
39,472
|
||||
|
Cash paid during the period:
|
||||||||
|
Interest
|
$
|
2,367
|
$
|
2,084
|
||||
|
Income taxes
|
$
|
1,174
|
$
|
2,483
|
||||
|
Reconciliation of cash, cash equivalents and restricted cash end of the period:
|
||||||||
|
Current Assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
36,031
|
$
|
29,929
|
||||
|
Restricted cash included in Restricted cash and short term investments
|
7,877
|
9,543
|
||||||
|
Cash, cash equivalents and restricted cash, at end of period
|
$
|
43,908
|
$
|
39,472
|
||||
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 8 of 10
|
Condensed Consolidated Balance Sheets
|
||||||||
|
(in thousands, except share amounts)
|
||||||||
|
July 28, 2019
|
October 28, 2018
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
36,031
|
$
|
24,763
|
||||
|
Restricted cash and short-term investments
|
11,000
|
14,844
|
||||||
|
Trade accounts receivable, net of allowances of $132 and $759, respectively
|
135,838
|
157,445
|
||||||
|
Other current assets
|
6,706
|
7,444
|
||||||
|
TOTAL CURRENT ASSETS
|
189,575
|
204,496
|
||||||
|
Other assets, excluding current portion
|
7,579
|
7,808
|
||||||
|
Property, equipment and software, net
|
25,209
|
24,392
|
||||||
|
TOTAL ASSETS
|
$
|
222,363
|
$
|
236,696
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Accrued compensation
|
$
|
22,675
|
$
|
27,120
|
||||
|
Accounts payable
|
34,521
|
33,498
|
||||||
|
Accrued taxes other than income taxes
|
13,854
|
15,275
|
||||||
|
Accrued insurance and other
|
27,472
|
23,335
|
||||||
|
Income taxes payable
|
692
|
1,097
|
||||||
|
TOTAL CURRENT LIABILITIES
|
99,214
|
100,325
|
||||||
|
Accrued insurance and other, excluding current portion
|
11,750
|
13,478
|
||||||
|
Deferred gain on sale of real estate, excluding current portion
|
20,758
|
22,216
|
||||||
|
Income taxes payable, excluding current portion
|
612
|
600
|
||||||
|
Deferred income taxes
|
508
|
510
|
||||||
|
Long-term debt
|
53,848
|
49,068
|
||||||
|
TOTAL LIABILITIES
|
186,690
|
186,197
|
||||||
|
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
shares; Outstanding - 21,366,111 and 21,179,068 shares, respectively
|
2,374
|
2,374
|
||||||
|
Paid-in capital
|
77,283
|
79,057
|
||||||
|
(Accumulated deficit) retained earnings
|
(10,126
|
)
|
9,738
|
|||||
|
Accumulated other comprehensive loss
|
(7,656
|
)
|
(7,070
|
)
|
||||
|
Treasury stock, at cost; 2,371,892 and 2,558,935 shares, respectively
|
(26,202
|
)
|
(33,600
|
)
|
||||
|
TOTAL STOCKHOLDERS' EQUITY
|
35,673
|
50,499
|
||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
222,363
|
$
|
236,696
|
||||
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 9 of 10
|
GAAP to Non-GAAP Reconciliations
|
|
(in thousands)
|
|
Three Months Ended
|
||||||||
|
July 28, 2019
|
July 29, 2018
|
|||||||
|
Reconciliation of GAAP net loss to Non-GAAP net loss:
|
||||||||
|
GAAP net loss
|
$
|
(6,057
|
)
|
$
|
(11,418
|
)
|
||
|
Selling, administrative and other operating costs
|
(486
|
)(a)
|
(486
|
)(a)
|
||||
|
Restructuring and severance costs
|
2,017
|
3,108
|
||||||
|
Impairment charge
|
79
|
-
|
||||||
|
Non-GAAP net loss
|
$
|
(4,447
|
)
|
$
|
(8,796
|
)
|
||
|
Three Months Ended
|
||||||||
|
July 28, 2019
|
July 29, 2018
|
|||||||
|
Reconciliation of GAAP net loss to Adjusted EBITDA:
|
||||||||
|
GAAP net loss
|
$
|
(6,057
|
)
|
$
|
(11,418
|
)
|
||
|
Selling, administrative and other operating costs
|
(486
|
)(a)
|
(486
|
)(a)
|
||||
|
Restructuring and severance costs
|
2,017
|
3,108
|
||||||
|
Impairment charge
|
79
|
-
|
||||||
|
Depreciation and amortization
|
1,769
|
1,789
|
||||||
|
Share-based compensation
|
294
|
(475
|
)(b)
|
|||||
|
Total other (income) expense, net
|
1,049
|
1,142
|
||||||
|
Provision for income taxes
|
165
|
1,306
|
||||||
|
Adjusted EBITDA
|
$
|
(1,170
|
)
|
$
|
(5,034
|
)
|
||
|
Special item adjustments consist of the following:
|
|||||
|
(a)
|
Relates to the amortization of the gain on the sale of the Orange, CA facility, which is
included in Selling, administrative and other operating costs.
|
||||
|
(b)
|
Includes share-based compensation forfeited in accordance with the former chief executive
officer's separation agreement.
|
||||
Volt Information Sciences Reports Fiscal 2019 Third Quarter Results
September 5, 2019
Page 10 of 10
|
GAAP to Non-GAAP Reconciliations
|
|
(in thousands)
|
|
Nine Months Ended
|
||||||||
|
July 28, 2019
|
July 29, 2018
|
|||||||
|
Reconciliation of GAAP net loss to Non-GAAP net loss:
|
||||||||
|
GAAP net loss
|
$
|
(14,437
|
)
|
$
|
(29,799
|
)
|
||
|
Selling, administrative and other operating costs
|
(1,458
|
)(a)
|
(1,458
|
)(a)
|
||||
|
Restructuring and severance costs
|
2,800
|
3,730
|
||||||
|
Impairment charges
|
426
|
(b) |
155
|
(c) | ||||
|
Income tax benefit
|
-
|
(1,052
|
)(d)
|
|||||
|
Non-GAAP net loss
|
$
|
(12,669
|
)
|
$
|
(28,424
|
)
|
||
|
Nine Months Ended
|
||||||||
|
July 28, 2019
|
July 29, 2018
|
|||||||
|
Reconciliation of GAAP net loss to Adjusted EBITDA:
|
||||||||
|
GAAP net loss
|
$
|
(14,437
|
)
|
$
|
(29,799
|
)
|
||
|
Selling, administrative and other operating costs
|
(1,458
|
)(a)
|
(1,458
|
)(a)
|
||||
|
Restructuring and severance costs
|
2,800
|
3,730
|
||||||
|
Impairment charges
|
426
|
(b) |
155
|
(c) | ||||
|
Depreciation and amortization
|
5,127
|
5,515
|
||||||
|
Share-based compensation
|
86
|
517
|
||||||
|
Total other (income) expense, net
|
3,000
|
2,932
|
||||||
|
Provision (benefit) for income taxes
|
671
|
576
|
||||||
|
Adjusted EBITDA
|
$
|
(3,785
|
)
|
$
|
(17,832
|
)
|
||
|
Special item adjustments consist of the following:
|
||||
|
(a)
|
Relates to the amortization of the gain on the sale of the Orange, CA facility, which is
included in Selling, administrative and other operating costs.
|
|||
|
(b)
|
Primarily relates to exit of customer care solutions business.
|
|||
|
(c)
|
Relates to previously purchased software module that is no longer in use.
|
|||
|
(d)
|
Relates to a discrete tax benefit resulting from the expiration of uncertain tax positions in Q1 2018.
|
|||