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Volt Information Sciences, Inc. (VISI) Narrows Q2 Loss, Staffing Services Segment Drags Revenues Lower
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
