Volt Information Sciences, an international
provider of staffing services and workforce solutions, today posted its Q2
results, showing year-over-year improvements in profitability and a decrease in
revenues.
The company recorded a Q2
loss of $3.5 million, or $0.17 per share, compared with a net loss of $17.5
million, or $0.84 per share in the year ago quarter. On a proforma basis, the
company reported a 2013 Q2 net loss of $5.3 million, or $0.17 per share.
Volt attributes the improved
profitability to targeted acquisitions in recent quarters in addition to the
sale of its Procurestaff business, among other factors.
“These actions not only
increase profitability, but also allow for greater flexibility in responding to
the business environment. Second quarter revenue continued to be impacted by
lower traditional staffing demand levels from a number of our larger enterprise
customers as compared to last year, although most have shown a slight
improvement in demand compared to the first quarter,” Ron Kochman, president
and CEO of Volt stated in the news release. “We also exited our
telecommunication government solutions business during the quarter as reduced
federal spending significantly minimized growth opportunity, efficiencies and
our ability to deliver profitability.”
Quarterly revenues decreased
to $451.5 million from $519.7 million in Q2 2013 as a result of decreased
Staffing Services revenues, partially due to lagging demand and the exit of
certain customers as the company continues to divest unfavorable business. On a
proforma basis, Q2 2014 revenues were $70.0 million.
Operating income for the
2014 quarter included restatement, investigations and remediation costs of $0.6
million and restructuring costs of $0.9 million, reflecting a reduced headcount
in response to lower revenue levels and staffing segment reorganization.
Excluding these items, Volt would have had operating income of $2.1 million and
proforma operating income of $0.3 million.
Operating results improved
$17.5 million to operating income of $0.6 million from an operating loss of
$16.9 million in 2013, and proforma operating loss decreased $12.4 million to a
proforma loss of $1.2 million from $13.6 million in 2013.
As of May 4, 2014, Volt had
cash and cash equivalents of $16.6 million and an additional $28.8 million of
cash restricted as collateral for foreign currency credit lines and banking
facilities. The company also had approximately $18.2 million available from its
short-term financing program. Excluding $8.6 million of long-term debt, the
company’s consolidated borrowings were $147.5 million.
For more information visit
www.volt.com
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