Volt Information Sciences, Inc. (OTC: VISI) today provided a
business update and reported selected unaudited financial
information for its fiscal third quarter and first fiscal nine
months of 2013 ended July 28, 2013. The Company notes that all
numbers presented in this release are subject to change until the
current audits are complete.
The Staffing Services Segment, which accounts for a majority of
the Company’s total revenue, had approximately $460 million of
revenue in the third quarter 2013, a decrease of approximately $49
million compared to the same period in 2012, although with higher
operating income. The third quarter of 2013 included recognition of
approximately $6 million of previously deferred revenue, net of
current period deferrals. Staffing Services segment proforma net
revenue, which adjusts recognized revenue to the period related
expenses were incurred, decreased by approximately $54 million, or
10.7%, from $508 million to $454 million for the three-month
period, although with similar proforma operating income.
For the first nine months of 2013, the Staffing Services Segment
had approximately $1.4 billion of revenue, a decrease of
approximately $100 million compared to the same period in fiscal
2012. Staffing Services segment proforma net revenue, which adjusts
recognized revenue to the period related expenses were incurred,
decreased by approximately $90 million, or 6.0%, from $1.5 billion
to $1.4 billion for the nine month period.
The decrease in staffing services revenues for both the three
and nine month periods was primarily due to the Company’s increased
focus on achieving acceptable operating income and exiting or
reducing business levels with customers where profitability or
business terms are unfavorable, as well as reduced sales at a few
large customers related to their particular business demand levels.
As a result, as compared to a year ago staffing services revenue
levels are lower although staffing services operating income
increased for the third quarter as both a percentage of revenue and
in absolute amount. Staffing services operating income for the
nine-month period compared to a year ago is lower as direct and
indirect delivery costs were reduced along with revenues but
reductions in sales and marketing as well as general and
administrative costs lagged revenue decreases. Additionally,
revenues from call center, games testing and other project-based
revenue are lower compared to a year ago due to net reduced
business from existing customers and lower games testing volumes
due to delayed console releases from the major games hardware
vendors.
The Telecommunications Services segment reported a small
operating loss for the third quarter 2013 and first nine months of
2013 and 2012 and a small operating income for the third quarter
2012. The Other segment reported an operating income in the third
quarter 2013 primarily due to the recognition of previously
deferred revenue and increased business compared to breakeven
operating results in the third quarter of 2012, and a small
operating income compared to breakeven results in the first nine
months of fiscal years 2013 and 2012, respectively. Revenue for the
Computer Systems segment will be reported after the ongoing audits
are completed and comprehensive financial reports filed.
Liquidity
During the first nine months of fiscal 2013, the Company
disbursed approximately $35 million in connection with the
restatement and related investigations (with substantially all such
costs now disbursed), generated approximately $13 million from all
other operating activities, used approximately $7 million for
capital expenditures, and increased borrowings under the short-term
financing program by approximately $20 million. Restricted cash
used as collateral for foreign currency borrowings and banking
facilities decreased by approximately $4 million.
VOLT INFORMATION SCIENCES, INC.
Condensed Statements of Cash
Flows
Unaudited, Estimated (in
Thousands)
Three Months Ended Nine Months Ended July 28,
2013 July 29, 2012 July 28, 2013 July 29, 2012
Cash and cash equivalents at beginning of
the period
$ 36,158 $ 28,673 $ 26,731 $ 44,568
Cash used in connection with restatement
and related investigations
(11,156 ) (6,911 ) (34,618 ) (25,335 )
Net cash provided by (used in) all other
operating activities
(10,291 ) (3,640 ) 13,032
(5,396 ) Net cash used in operating activities
(21,447 ) (10,551 ) (21,586 ) (30,731 ) Net cash used in
investing activities (3,019 ) (3,289 ) (7,373 ) (9,964 ) Net
cash released (restricted) as collateral for borrowings 141 292
4,410 (1,063 ) Net cash provided by all other financing activities
9,804 18,241
19,455 30,556 Net cash provided
by financing activities 9,945 18,533 23,865 29,493 Net
increase (decrease) in cash and cash equivalents (14,521 ) 4,693
(5,094 ) (11,202 ) Cash and cash equivalents at end of the period $
21,637 $ 33,366 $ 21,637 $ 33,366
Supplemental information:
Cash paid during the period for:
Interest
$
703
$
740
$
2,114
$
2,134
Income taxes
$
689
$
786
$
9,558
$
2,494
On July 28, 2013, the Company had cash and cash equivalents of
approximately $22 million and an additional approximately $31
million of cash restricted as collateral for foreign currency
credit lines and banking facilities. The Company also had
approximately $16 million available from its short-term financing
program. Excluding approximately $8 million of non-current debt,
the Company’s consolidated borrowings were approximately $165
million at July 28, 2013, which included approximately $22 million
of foreign currency borrowings used to hedge net investments in
foreign subsidiaries that are fully collateralized by restricted
cash, and approximately $140 million drawn under the short-term
financing program. The amount drawn under the short-term financing
program subsequently increased to $150 million at October 2013 at
which time there was approximately $11 million additional borrowing
available.
Borrowing and Cash Positions (in
Thousands)
July 28,
2013
October28,2012
Cash and cash equivalents $21,637 $26,731 Cash restricted as
collateral for borrowings 31,171 35,581 Total cash and cash
restricted for borrowings $52,808 $62,312 Short-term
borrowings, including current portion of long-term debt Short-term
financing program $140,000 $120,000 Bank loans and other 25,755
25,727 Long-term debt, excluding current portion 8,414 9,033 Total
short-term borrowings and long-term debt $174,169 $154,760
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 upon the completion of the audit
of the Company’s fiscal 2013, 2012 and 2011 annual financial
statements by the Company’s independent accountants. The Company is
in the process of completing its fiscal 2012 and 2011 annual
financial statement audits after recently restating prior years’
financial statements for fiscal year 2008 due to the correction of
errors in the application of certain accounting principles and
methodologies. There can be no assurance that the amounts reported
today will not differ, including materially, from those reported
when the Company files its 2013, 2012 and 2011 Form 10-Ks and other
reports.
Since the audits are 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 and 2011 until its independent
accountants have completed their audit procedures, and Reports on
Forms 10-K and 10-Q have been filed with the SEC for such related
periods. 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.
Volt Information Sciences, Inc.James
Whitney, 212-704-7921voltinvest@volt.com
Volt Information Sciences (AMEX:VISI)
Historical Stock Chart
Von Sep 2024 bis Okt 2024
Volt Information Sciences (AMEX:VISI)
Historical Stock Chart
Von Okt 2023 bis Okt 2024