Volt Information Sciences, Inc. Reports Fourth Quarter and Fiscal 2020 Financial Results

Rhea-AI Summary

Volt Information Sciences, Inc. (NYSE-AMERICAN: VOLT) reported Q4 2020 revenue of $211.1 million, down from $258.4 million in Q4 2019. Adjusted revenue decreased 11%, with a GAAP operating loss of $11.5 million. Adjusted EPS was $0.11, excluding $15 million in impairment costs. For FY 2020, revenue totaled $822.1 million, compared to $997.1 million in FY 2019, marking a 13.4% drop. Adjusted operating loss was $9.8 million. The North American Staffing segment saw a 13.9% revenue decline. However, adjusted EBITDA rose to $5.9 million in Q4, the highest in four years.

Positive

• Adjusted EBITDA increased by $1.1 million year over year to $5.9 million in Q4 2020.
• SG&A expenses decreased by $6.5 million, or 17.5%, year over year in Q4 2020.

Negative

• Q4 2020 revenue decreased by 18.3% compared to Q4 2019.
• GAAP operating loss for FY 2020 widened to ($29.4 million) from ($9.8 million) in FY 2019.
• Adjusted Revenue decreased 13.4% for FY 2020.
• North American Staffing revenue for FY 2020 fell by 13.9%.

Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN: VOLT) a global provider of staffing services, today announced financial results for the fourth quarter and year ended November 1, 2020.

Fourth Quarter Results

• Revenue of $211.1 million, compared to $258.4 million in the fourth quarter of fiscal 2019, which included $18.9 million related to the extra fiscal week in fiscal 2019; Adjusted Revenue decreased 11.0%.
• Gross margin was 16.2%, compared to 16.6% in the prior-year quarter.
• GAAP operating loss for the quarter was ($11.5) million, compared to operating income of $933,000 in the prior-year quarter; Adjusted Operating Income, excluding impairment and restructuring charges, improved by $1.1 million year over year to $3.5 million.
• GAAP EPS loss of ($0.58) per share; Adjusted EPS of $0.11 per diluted share, which excludes $15.0 million of impairment and restructuring costs.
• Adjusted EBITDA increased $1.1 million year over year to $5.9 million.

Fiscal 2020 Results

• Revenue of $822.1 million, compared to $997.1 million in fiscal 2019 which included $18.9 million related to the extra fiscal week in fiscal 2019; Adjusted Revenue decreased 13.4%.
• Gross margin improved 30 basis points year over year to 15.6%.
• GAAP operating loss of ($29.4) million compared to ($9.8) million in fiscal 2019; Adjusted Operating Loss, excluding impairment and restructuring charges, was ($9.8) million in fiscal 2020 compared with ($5.1) million in fiscal 2019.
• GAAP EPS loss of ($1.56) per share; Adjusted EPS of ($0.65) per share, excluding $19.6 million of impairment and restructuring costs.
• Adjusted EBITDA was ($98,000) compared to $1.0 million in the prior year.

* Adjusted Revenue, Adjusted Operating Income (Loss), Adjusted EBITDA and Adjusted EPS are Non-GAAP measures described and defined below.

“Against the backdrop of the most challenging period in our company’s 70-year history, I could not be more proud of the resiliency shown by every Volt colleague across our organization,” said Linda Perneau, President and Chief Executive Officer. “The disruption caused by COVID-19 forced us to think and work differently while ensuring we were able to provide a consistent level of world-class service to our clients, many of whom are essential businesses. At the same time, we successfully expanded our relationships with existing customers and secured new business. These efforts are reflected in the sequential improvement in Adjusted Revenue we recorded during the second half of fiscal 2020. In addition, our fourth quarter Adjusted EBITDA was our best quarter in four years.”

Fourth Quarter Results

North American Staffing revenue for the quarter was $178.6 million as compared to $216.6 million for the fourth quarter of fiscal 2019. Adjusted Revenue, which is a non-GAAP measure, for this segment decreased approximately 9.4 percent year over year. The decrease is primarily attributable to continued workforce adjustments related to COVID-19, partially offset by business wins with new clients and expansion of business within existing clients.

International Staffing revenue for the quarter was $23.0 million, compared to $30.6 million in the prior-year quarter. Adjusted Revenue decreased 22.0 percent year over year. The decrease is primarily due to lower results within the U.K. business.

North American MSP revenue for the fourth quarter was $9.4 million, compared to $11.7 million in the prior-year quarter. Adjusted Revenue for this segment in the prior year was $10.8 million. The decrease is primarily attributable to workforce adjustments at clients related to COVID-19 for managed service programs and payroll services.

Gross margin for the quarter was 16.2 percent of revenue, a 40 basis-point decrease from the fourth quarter of fiscal 2019. The exclusion of last year’s extra operating week had no meaningful impact to gross margin. The decrease is primarily attributable to the revenue mix shift towards payroll services within North American MSP.

SG&A expense for the fourth quarter was $30.7 million. Excluding the fourteenth week and a business exited during the prior-year quarter, SG&A expense decreased by $6.5 million, or 17.5 percent on a year-over-year basis. The reduction is primarily attributable to lower salary expense and related taxes and reduced professional fees.

Adjusted EBITDA, which is a non-GAAP measure, was $5.9 million for the fourth quarter of fiscal 2020, compared to $4.8 million in the prior-year quarter.

Fiscal 2020 Results

North American Staffing revenue for the year was $689.1 million as compared to $830.9 million for fiscal 2019. Adjusted Revenue for this segment decreased approximately 13.9 percent. The decrease is primarily attributable to significant workforce adjustments related to COVID-19, partially offset by business wins with new and existing clients. Operating Income for the year was $14.3 million compared to $18.0 million for fiscal 2019. Adjusted Operating Income for this segment, excluding impairment and restructuring charges, which is a non-GAAP measure, was $17.1 million compared to $17.9 million in the prior year.

International Staffing revenue for fiscal 2020 was $95.3 million compared to $114.4 million. Adjusted Revenue in the International Staffing segment in fiscal 2020 decreased 15.1 percent. Operating Income for the year was $1.4 million compared to $2.9 million from fiscal 2019. Adjusted Operating Income for this segment was $1.4 million, compared to $2.7 million in fiscal 2019.

North American MSP revenue decreased 2.8 percent from the prior year, to $37.9 million. Adjusted Revenue for the segment decreased 1.4 percent year over year. Operating Income for the year was $3.1 million compared to $5.0 million in the prior year. Adjusted Operating Income for this segment was $3.1 million compared to $4.8 million in fiscal 2019.

Gross margin for fiscal 2020 increased by 30 basis points to 15.6 percent of revenue. The increase is primarily attributable to a revenue mix shift towards higher-margin business, particularly in the North American Staffing segment.

SG&A expense for fiscal 2020 was $137.7 million. Excluding the expense associated with the 53^rd operating week and business exited, adjusted SG&A expense decreased by $16.2 million, or 10.5 percent on a year-over-year basis. The decrease is attributable to the Company’s strategic approach to optimize resources and response to COVID-19, including reduced salary expense, professional fees, travel expense and facility costs.

Adjusted EBITDA for fiscal 2020 was ($98,000), compared to $1.0 million in the prior year.

“Although we were presented with many challenges in fiscal 2020, our recent results indicate our strategies are working. Our improved sales strategy and disciplined pricing approach were pivotal in our ability to weather this extended period of uncertainty,” commented Ms. Perneau. “Through the maturation of our sales strategy coupled with our disciplined pricing approach and streamlined operations, we are confident we will continue to see improvement in profitability for the full-year of fiscal 2021.”

2020 Earnings Conference Call and Webcast

Volt Information Sciences, Inc. will conduct a conference call on Wednesday, January 13, 2021, at 5:00 p.m. Eastern Time, to review the financial results for the fourth quarter and fiscal year ended November 1, 2020. A presentation supplementing the call can be accessed through the Investor relations portion of the website. Investors interested in participating on the live call can dial 1-877-407-9039 within the U.S. or 1-201-689-8470 from abroad. The conference call, which may include forward-looking statements, is also being webcast and will be available via the investor relations section of the Company’s website at www.volt.com. A replay of the webcast will be archived on Volt’s investor relations website for 90 days.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to a number of known and unknown risks. Such risks include, among others, general economic, competitive and other business conditions (including the potential impact of the strain of coronavirus known as COVID-19 on our operations as well as the operations of our customers), the degree and timing of customer utilization and renewal rate for 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 the “Risk Factors” and other sections of the Company reports filed with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Note Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain Non-GAAP financial information, including Adjusted Revenue, Adjusted Operating Income (Loss), Adjusted EBITDA and Adjusted EPS, which include adjustments to our GAAP financial results. 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, including on a constant currency basis and eliminating (a) the impact of businesses sold or exited, (b) the extra operating week in the fourth quarter of fiscal 2019 and (c) special items 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 Revenue is defined as revenue excluding businesses exited, the effect of foreign currency translation and the extra operating week in the fourth quarter of fiscal 2019. The Company has also migrated certain clients from a traditional staffing model to a managed service model, resulting in the Company now managing a greater percentage of such clients’ business under its North American MSP. This shift provides increased opportunity for the Company with the relevant clients. However, due to the structure of MSP arrangements, revenue is recognized on a net basis, thereby reducing revenues on a comparative period basis. Beginning in the first quarter of 2020, the Company includes such delivery model shifts within the Adjusted Revenue measurement, as it provides a more comparable basis for evaluating performance results from period to period and reflects the method used by management to evaluate performance. A reconciliation is shown in the tables at the end of this press release.

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.

Adjusted Operating Income (Loss) is defined as operating income (loss) excluding businesses exited and the extra operating week in the fourth quarter of fiscal 2019.

The Company believes the presentation of Adjusted Operating Income (Loss) is relevant and useful for investors because it provides a more comparable basis to evaluate performance results and analyze trends from period to period in a manner similar to the method used by management.

Adjusted EPS is defined as earnings per share excluding impairment and restructuring charges. The Company believes that the presentation of Adjusted EPS is useful for investors since it removes certain special items which the Company does not consider indicative of the current and future period performance.

The Company’s computation of Adjusted Revenue, Adjusted EBITDA, Adjusted Operating Income (Loss) and Adjusted EPS 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.

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

Investor Relations Contacts:
Volt Information Sciences, Inc.
voltinvest@volt.com

Joe Noyons
Three Part Advisors
jnoyons@threepa.com
817-778-8424

Financial Tables Follow

Results of Operations
(in thousands, except per share data)
		Three Months Ended												Year Ended
		November 1, 2020				August 2, 2020				November 3, 2019				November 1, 2020				November 3, 2019
Net revenue		$	211,073			$	185,941			$	258,408			$	822,055			$	997,090
Cost of services			176,844				155,983				215,449				694,204				844,527
Gross margin			34,229				29,958				42,959				127,851				152,563
Selling, administrative and other operating costs			30,735				31,245				39,908				137,666				157,052
Restructuring and severance costs			438				546				1,856				2,641				4,656
Impairment charges			14,518				2,384				262				16,913				688
Operating income (loss)			(11,462	)			(4,217	)			933				(29,369	)			(9,833	)
Interest income (expense), net			(431	)			(467	)			(723	)			(2,219	)			(2,882	)
Foreign exchange gain (loss), net			(62	)			571				(360	)			(85	)			(612	)
Other income (expense), net			(291	)			(168	)			(292	)			(869	)			(881	)
Loss before income taxes			(12,246	)			(4,281	)			(442	)			(32,542	)			(14,208	)
Income tax provision			271				556				307				1,045				978
Net loss		$	(12,517	)		$	(4,837	)		$	(749	)		$	(33,587	)		$	(15,186	)
Per share data:
Basic:
Net loss		$	(0.58	)		$	(0.22	)		$	(0.04	)		$	(1.56	)		$	(0.72	)
Weighted average number of shares			21,607				21,589				21,157				21,507				21,119
Diluted:
Net loss		$	(0.58	)		$	(0.22	)		$	(0.04	)		$	(1.56	)		$	(0.72	)
Weighted average number of shares			21,607				21,589				21,157				21,507				21,119
Segment data:
Net revenue:
North American Staffing		$	178,603			$	154,711			$	216,587			$	689,095			$	830,947
International Staffing			23,033				21,749				30,574				95,308				114,377
North American MSP			9,365				9,436				11,659				37,915				39,010
Corporate and Other			135				149				187				674				15,320
Eliminations			(63	)			(104	)			(599	)			(937	)			(2,564	)
Net revenue		$	211,073			$	185,941			$	258,408			$	822,055			$	997,090
Operating income (loss):
North American Staffing		$	8,956			$	2,691			$	7,167			$	14,322			$	17,963
International Staffing			278				551				1,619				1,399				2,893
North American MSP			885				944				1,838				3,074				5,023
Corporate and Other			(21,581	)			(8,403	)			(9,691	)			(48,164	)			(35,712	)
Operating income (loss)		$	(11,462	)		$	(4,217	)		$	933			$	(29,369	)		$	(9,833	)
Work days			64				63				69				251				256

Condensed Consolidated Statements of Cash Flows
(in thousands)
		Year Ended
		November 1, 2020				November 3, 2019
Cash, cash equivalents and restricted cash beginning of the period		$	38,444			$	36,544
Cash provided by (used in) all other operating activities			964				(8,797	)
Changes in operating assets and liabilities			17,190				16,165
Net cash provided by operating activities			18,154				7,368
Purchases of property, equipment, and software			(5,268	)			(9,053	)
Net cash provided by all other investing activities			639				211
Net cash used in investing activities			(4,629	)			(8,842	)
Net draw-down of borrowings			5,000				5,000
Debt issuance costs			(343	)			(783	)
Net cash used in all other financing activities			(77	)			(318	)
Net cash provided by financing activities			4,580				3,899
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(116	)			(525	)
Net increase in cash, cash equivalents and restricted cash			17,989				1,900
Cash, cash equivalents and restricted cash end of the period		$	56,433			$	38,444
Cash paid during the period:
Interest		$	2,297			$	3,156
Income taxes		$	1,979			$	1,194
Reconciliation of cash, cash equivalents and restricted cash end of the period:
Current Assets:
Cash and cash equivalents		$	38,550			$	28,672
Restricted cash included in Restricted cash and short term investments			17,883				9,772
Cash, cash equivalents and restricted cash, at end of period		$	56,433			$	38,444

Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
		November 1, 2020				November 3, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	38,550			$	28,672
Restricted cash and short-term investments			20,736				12,794
Trade accounts receivable, net of allowances of $219 and $117, respectively			121,916				135,950
Other current assets			7,058				7,252
TOTAL CURRENT ASSETS			188,260				184,668
Property, equipment and software, net			22,167				25,890
Right of use assets - operating leases			25,107				-
Other assets, excluding current portion			6,311				7,446
TOTAL ASSETS		$	241,845			$	218,004
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accrued compensation		$	18,357			$	21,507
Accounts payable			31,221				36,341
Accrued taxes other than income taxes			12,983				11,244
Accrued insurance and other			15,908				24,654
Operating lease liabilities			7,144				-
Income taxes payable			891				1,570
TOTAL CURRENT LIABILITIES			86,504				95,316
Accrued payroll taxes and other, excluding current portion			29,988				12,029
Operating lease liabilities, excluding current portion			38,232				-
Deferred gain on sale of real estate, excluding current portion			-				20,270
Income taxes payable, excluding current portion			90				289
Deferred income taxes			3				17
Long-term debt			59,154				53,894
TOTAL LIABILITIES			213,971				181,815
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 21,729,400 and 21,367,821 shares, respectively			2,374				2,374
Paid-in capital			79,937				77,688
Accumulated deficit			(29,793	)			(10,917	)
Accumulated other comprehensive loss			(6,458	)			(6,801	)
Treasury stock, at cost; 2,008,603 and 2,370,182 shares, respectively			(18,186	)			(26,155	)
TOTAL STOCKHOLDERS' EQUITY			27,874				36,189
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	241,845			$	218,004

GAAP to Non-GAAP Reconciliations
(in thousands)
		Three Months Ended
		November 1, 2020					November 3, 2019
Reconciliation of GAAP net loss to Non-GAAP net income:
GAAP net loss		$	(12,517	)			$	(749	)
Selling, administrative and other operating costs			-					(486	)	(c)
Restructuring and severance costs			438		(a)			1,856		(d)
Impairment costs			14,518		(b)			262
Non-GAAP net income		$	2,439				$	883
		Three Months Ended
		November 1, 2020					November 3, 2019
Reconciliation of GAAP net loss to Adjusted EBITDA:
GAAP net loss		$	(12,517	)			$	(749	)
Selling, administrative and other operating costs			-					(486	)	(c)
Restructuring and severance costs			438		(a)			1,856		(d)
Impairment costs			14,518		(b)			262
Depreciation and amortization			2,097					1,828
Share-based compensation expense			303					413
Total other (income) expense, net			784					1,375
Provision for income taxes			271					307
Adjusted EBITDA		$	5,894				$	4,806

Special item adjustments consist of the following:
			(a)		Relates to actions taken by the Company as part of its continued efforts to reduce costs and to offset COVID-19 related revenue losses.
			(b)		Relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely.
			(c)		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.
			(d)		Relates to continued efforts to reduce costs, change in executive management and the exit of customer care solutions business.

GAAP to Non-GAAP Reconciliations
(in thousands)
		Year Ended
		November 1, 2020					November 3, 2019
Reconciliation of GAAP net loss to Non-GAAP net loss:
GAAP net loss		$	(33,587	)			$	(15,186	)
Selling, administrative and other operating costs			-					(1,944	)	(c)
Restructuring and severance costs			2,641		(a)			4,656		(d)
Impairment costs			16,913		(b)			688		(e)
Non-GAAP net loss		$	(14,033	)			$	(11,786	)
		Year Ended
		November 1, 2020					November 3, 2019
Reconciliation of GAAP net loss to Adjusted EBITDA:
GAAP net loss		$	(33,587	)			$	(15,186	)
Selling, administrative and other operating costs			-					(1,944	)	(c)
Restructuring and severance costs			2,641		(a)			4,656		(d)
Impairment costs			16,913		(b)			688		(e)
Depreciation and amortization			7,981					6,955
Share-based compensation expense			1,736					499
Total other (income) expense, net			3,173					4,375
Provision for income taxes			1,045					978
Adjusted EBITDA		$	(98	)			$	1,021

Special item adjustments consist of the following:
			(a)		Primarily relates to the strategic initiative costs to offshore a significant number of identified roles to our staffing operations in India as well as continued efforts to reduce costs and to offset COVID-19 related revenue losses.
			(b)		Primarily relates to consolidating and exiting certain leased office locations throughout North America where we could be fully operational and successfully support our clients and business operations remotely.
			(c)		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.
			(d)		Relates to continued efforts to reduce costs, change in executive management and the exit of customer care solutions business.
			(e)		Primarily relates to exit of customer care solutions business and the impairment of previously purchased software.

GAAP to Non-GAAP Reconciliations
(in thousands)
		Three Months Ended November 1, 2020				Three Months Ended November 3, 2019
		As Reported				As Reported				FX Impact			Business Exited				14th week				MSP Delivery Model Shift				Adjusted
Revenue
North American Staffing		$	178,603			$	216,587			$	-		$	-			$	(15,770	)		$	(3,591	)		$	197,226
International Staffing			23,033				30,574				1,175			-				(2,214	)			-				29,535
North American MSP			9,365				11,659				-			-				(910	)			89				10,838
Corporate and Other			135				187				-			-				(11	)			-				176
Eliminations			(63	)			(599	)			-			-				43				-				(556	)
Total Revenue		$	211,073			$	258,408			$	1,175		$	-			$	(18,862	)		$	(3,502	)		$	237,219
% change																										-11.0	%
		Year Ended November 1, 2020				Year Ended November 3, 2019
		As Reported				As Reported				FX Impact			Business Exited				53rd week				MSP Delivery Model Shift				Adjusted
Revenue
North American Staffing		$	689,095			$	830,947			$	-		$	(692	)		$	(15,770	)		$	(14,426	)		$	800,059
International Staffing			95,308				114,377				78			-				(2,214	)			-				112,241
North American MSP			37,915				39,010				-			-				(910	)			363				38,463
Corporate and Other			674				15,320				-			(14,593	)			(11	)			-				716
Eliminations			(937	)			(2,564	)			-			692				43				-				(1,829	)
Total Revenue		$	822,055			$	997,090			$	78		$	(14,593	)		$	(18,862	)		$	(14,063	)		$	949,650
% change																										-13.4	%

GAAP to Non-GAAP Reconciliations
(in thousands)
		Three Months Ended November 1, 2020				Three Months Ended November 3, 2019
		As Reported				As Reported				Business Exited			14th week				Adjusted
Operating Income (Loss)
North American Staffing		$	8,956			$	7,167			$	-		$	(759	)		$	6,408
International Staffing			278				1,619				-			(220	)			1,399
North American MSP			885				1,838				-			(224	)			1,614
Corporate and Other			(21,581	)			(9,691	)			437			502				(8,752	)
Total Operating Income (Loss)		$	(11,462	)		$	933			$	437		$	(701	)		$	669
		Year Ended November 1, 2020				Year Ended November 3, 2019
		As Reported				As Reported				Business Exited			53rd week				Adjusted
Operating Income (Loss)
North American Staffing		$	14,322			$	17,963			$	-		$	(759	)		$	17,204
International Staffing			1,399				2,893				19			(220	)			2,692
North American MSP			3,074				5,023				-			(224	)			4,799
Corporate and Other			(48,164	)			(35,712	)			2,462			502				(32,748	)
Total Operating Income (Loss)		$	(29,369	)		$	(9,833	)		$	2,481		$	(701	)		$	(8,053	)

GAAP to Non-GAAP Reconciliations
(in thousands)
		Three Months Ended November 1, 2020				Three Months Ended November 3, 2019
		As Reported				As Reported				Business Exited				14th week				Adjusted
Operating Income (Loss)
Gross Margin		$	34,229			$	42,959			$	-			$	(3,311	)		$	39,648
Selling, administrative and other operating costs			30,735				39,908				(34	)			(2,610	)			37,264
Restructuring and severance costs			438				1,856				(403	)			-				1,453
Impairment charges			14,518				262				-				-				262
Total Operating income (Loss)		$	(11,462	)		$	933			$	(437	)		$	(701	)		$	669
		Year Ended November 1, 2020				Year Ended November 3, 2019
		As Reported				As Reported				Business Exited				53rd week				Adjusted
Operating Income (Loss)
Gross Margin		$	127,851			$	152,563			$	(523	)		$	(3,311	)		$	148,729
Selling, administrative and other operating costs			137,666				157,052				(569	)			(2,610	)			153,873
Restructuring and severance costs			2,641				4,656				(2,087	)			-				2,569
Impairment charges			16,913				688				(348	)			-				340
Total Operating Income (Loss)		$	(29,369	)		$	(9,833	)		$	2,481			$	(701	)		$	(8,053	)

GAAP to Non-GAAP Reconciliations
(in thousands, except per share data)
		Three Months Ended November 1, 2020
		As Reported				Restructuring and Impairment Costs			Adjusted
Earnings per Share
Net income (loss)		$	(12,517	)		$	14,956		$	2,439
Per share data:
Basic:
Net income (loss)		$	(0.58	)					$	0.11
Weighted average number of shares			21,607							21,607
Diluted
Net income (loss)		$	(0.58	)					$	0.11
Weighted average number of shares			21,607							21,950
		Year Ended November 1, 2020
		As Reported				Restructuring and Impairment Costs			Adjusted
Earnings per Share
Net loss		$	(33,587	)		$	19,554		$	(14,033	)
Per share data:
Basic:
Net loss		$	(1.56	)					$	(0.65	)
Weighted average number of shares			21,507							21,507
Diluted
Net loss		$	(1.56	)					$	(0.65	)
Weighted average number of shares			21,507							21,507

 

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FAQ

What were Volt's Q4 2020 earnings results?

Volt reported Q4 2020 revenue of $211.1 million with a GAAP EPS loss of ($0.58) per share.

How did Volt perform financially in fiscal 2020?

In FY 2020, Volt's revenue was $822.1 million, down 13.4% from the previous year, with an adjusted operating loss of $9.8 million.

What were the adjusted earnings per share for Volt in Q4 2020?

Volt's adjusted EPS for Q4 2020 was $0.11, excluding significant impairment costs.

What impact did COVID-19 have on Volt's revenue?

COVID-19 led to significant workforce adjustments, resulting in a 13.9% decline in North American Staffing revenue for FY 2020.

When will Volt hold its earnings conference call?

Volt will conduct its earnings conference call on January 13, 2021, at 5:00 p.m. Eastern Time.