Volt Information Sciences, Inc. (OTC: VISI) today provided a
business update and reported selected unaudited financial
information for its fiscal 2012 first quarter ended January 29,
2012. The Company noted that, due to a previously announced
accounting review, all numbers presented in this release are
estimates.
Steven Shaw, Volt’s President and Chief Executive Officer,
stated, "The Staffing Services Segment, which accounts for a
majority of the Company’s total revenue, had approximately $455
million of revenue in the fiscal first quarter 2012 compared to
approximately $442 million for the same period in 2011. The first
quarter 2012 Staffing Services Segment revenue increase is
primarily from customer care solutions services and to a lesser
extent from employees on assignment. On average, approximately
31,500 U.S. staffing employees were on assignment in the quarter,
compared to approximately 32,300 in the first quarter of 2011,
although at higher average billing rates resulting in slightly
higher revenue."
The Telecommunications Services and Other segments reported
close to break-even operating results for the first fiscal quarters
of both 2012 and 2011. Results for the Computer Systems Segment
will be reported after the accounting review is completed.
Liquidity
During the first fiscal quarter of 2012, the Company disbursed
approximately $10 million in connection with the restatement and
related investigations costs while cash of approximately $26
million was provided by all other operating activities,
approximately $3 million was disbursed for net capital expenditures
and approximately $2 million was disbursed for the acquisition of
an additional 10% interest in a foreign subsidiary. Borrowings
under the accounts receivable securitization program decreased by
approximately $10 million during the first quarter of fiscal 2012
and borrowings under all other credit facilities increased $2
million. The Company transferred approximately $1 million during
this fiscal year to restricted cash as collateral for foreign
currency borrowings and banking facilities.
On January 29, 2012, the Company had cash and cash equivalents
of approximately $46 million and an additional approximately $36
million of cash set aside and restricted as collateral for foreign
currency credit lines and banking facilities. The Company also had
approximately $70 million available from its accounts receivable
securitization program. Excluding the approximately $10 million of
non-current debt, the Company’s consolidated borrowings were
approximately $106 million at January 29, 2012, which includes
approximately $26 million of primarily foreign currency borrowings
used to hedge foreign denominated receivables and fully
collateralized by the restricted cash, and approximately $80
million drawn under the $150 million securitization program. The
approximately $80 million drawn under the securitization program
was subsequently increased to approximately $90 million in February
2012.
The Company believes that it has more than ample liquidity to
meet its business requirements currently and for the foreseeable
future.
VOLT INFORMATION SCIENCES, INC.
Unaudited, Estimated Condensed
Statements of Cash Flows (in Thousands)
Three Months Ended
January 29, January 30, 2012 2011 Cash and cash equivalents
at beginning of the period $43,351 $51,263 Cash used in
connection with restatement and related investigations (10,170)
(9,647) Net cash provided by all other operating activities 26,488
34,522 Net cash provided by operating activities 16,318 24,875
Net cash used in investing activities (4,256) (4,667)
Net cash restricted as collateral for borrowings (1,337) (669) Net
cash (used in) provided by all other financing activities (7,898)
550 Net cash used in financing activities (9,235) (119) Net
increase in cash and cash equivalents 2,827 20,089 Cash and cash
equivalents at end of the period $46,178 $71,352
Note: Due to the pending restatement of the Company’s historical
financial statements (see discussion in the release text), all
financial numbers presented in this release should be considered
estimates.
Borrowing and Cash Positions (in
Thousands)
January 29,
October 30, 2012 2011 Cash and cash equivalents $46,178
$43,351 Cash restricted as collateral for borrowings 35,527 34,190
Short-term investments 5,302 5,511 Total cash, cash restricted for
borrowings and short-term investments $87,007 $83,052
Short-term borrowings, including current portion of long-term debt
Accounts receivable securitization program $80,000 $90,000 Bank
loans and other 25,659 23,330 Long-term debt, excluding current
portion 9,620 9,817 Total short-term borrowings and long-term debt
$115,279 $123,147
Note: Due to the pending restatement of the Company’s historical
financial statements (see discussion in the release text), all
financial numbers presented in this release should be considered
estimates.
Preliminary Nature of Information
The financial information contained in this press release is
preliminary and unaudited, and has been prepared by management
based on currently available company data. This financial
information is subject to change based on the completion of the
Company’s ongoing review of accounting matters, the completion of
its fiscal 2012, 2011, 2010 and 2009 annual financial statements,
the effects of the accounting review on financial results for the
fiscal years 2005 through 2008, the restatement of stockholders’
equity as of the beginning of fiscal year 2005 for the effects of
adjustments prior to that year, and the completion of the audit of
the financial statements by the Company’s independent accountants.
The process of restating prior years’ financial statements is
expected to result in changes to the Company’s financial statements
for fiscal years 2005 through 2008 due to the correction of errors
in the application of certain accounting principles and
methodologies that individually or in the aggregate may be
material. There can be no assurance that the amounts reported today
will not differ, including materially, from those reported when the
Company files its 2012, 2011, 2010 and 2009 Form 10-Ks and other
reports.
Since the re-evaluation is ongoing, the Company has limited the
scope of the financial information released today to the selected
unaudited financial information included in this release. The
Company does not expect to be in a position to announce audited
financial results for fiscal 2012, 2011, 2010 or 2009 (or prior
years) until appropriate accounting adjustments and restated
financial statements have been finalized for 2008 and prior
periods, its independent accountants have completed their audit
procedures, and amended Reports on Forms 10-K and 10-Q have been
filed with the SEC for the periods ended October 28, 2007 and
November 2, 2008 and for quarterly periods through May 3, 2009.
Please refer to the Company’s reports filed with the SEC for
further information.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a leading provider of global
infrastructure solutions in technology, information services and
staffing acquisition for its FORTUNE 100 customer base. Operating
through an international network of servicing locations, the
Staffing Services Segment fulfills IT, engineering, administrative,
and industrial workforce requirements of its customers, for
professional search and temporary/contingent personnel as well as
managed services programs. Technology infrastructure services
include telecommunications engineering, construction, and
installation; and IT managed services and maintenance.
Information-based services are primarily directory assistance,
operator services, database management, and directory printing.
Visit www.volt.com.
Forward-Looking Statements
This press release contains forward-looking statements. Words
such as “may,” “will,” “should,” “likely,” “could,” “seek,”
“believe,” “expect,” “plan,” “anticipate,” “estimate,”
“optimistic”, “confident”, “project,” “intend,” “strategy,”
“designed to,” and similar expressions are intended to identify
forward-looking statements about the Company’s results of
operations, future plans, objectives, performance, intentions and
expectations. Forward-looking statements are subject to a number of
known and unknown risks, including, among others, the timing of,
and effects of the continued delay in, filing the Company’s
financial statements with the Securities and Exchange Commission,
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.
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