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

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·17 min read
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Reports Highest Quarterly Adjusted EBITDA in Four Years

Expect Continued Improvement in Profitability for 2021

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 53rd 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210113005885/en/

Contacts

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

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