Company achieves most profitable quarter in
five years with fourth quarter net income of $2.8 million
Volt Information Sciences, Inc. (“Volt” or “the Company”)
(NYSE-MKT: VISI), a global provider of staffing services and
information technology infrastructure services, today reported
results for its fourth quarter and full year ended October 30,
2016. Key elements include:
- Fourth quarter net revenue of $341.6
million up 3.3% compared to the prior quarter and down 6.2%
year-over-year; Full year net revenue of $1,334.7 million down
10.8% year-over-year
- Fourth quarter gross margin percentage
of 16.7% increased 70 basis points year-over-year
- Fourth quarter net income of $2.8
million and full year net loss of $14.6 million; excluding special
items, fourth quarter net income of $3.8 million and full year net
loss of $10.4 million
- Reduced fourth quarter selling,
administrative and other operating costs by $4.6 million, or 8.4%
year-over-year; Reduced full year selling, administrative and other
operating costs by $27.1 million, or 11.7% year-over-year, as a
result of headcount reductions and other initiatives to improve
operating efficiencies
- As of the end of the fourth quarter,
the Company had $48.5 million of global liquidity for working
capital requirements
- Enhanced financial disclosures to
include three reportable segments: North American Staffing,
International Staffing, Technology Outsourcing Services and
Solutions
- Subsequent to the end of the fourth
quarter, the Company amended its Financing Program with PNC and
extended the Program by one-year to January 31, 2018
Commenting on Volt’s fourth quarter performance, Michael Dean,
President and CEO, said, “We concluded fiscal 2016 with a solid
fourth quarter highlighted by strong year-over-year growth in gross
margin percentage along with careful expense management that helped
produce the most profitable quarter for Volt in five years. In
addition, we continued to add to our book of business with several
significant new customer engagements. This, coupled with a slower
rate of revenue decline from existing customers, is helping to
stabilize revenue from our core North American Staffing
business.”
Mr. Dean continued, “As we head into fiscal 2017 as a
financially stronger and more streamlined company, I am confident
we will continue to build on the foundational strengths of our core
staffing business to achieve our longer-term goal of sustained
profitable growth.”
Fiscal 2016 Fourth Quarter Results
Total revenue for the fiscal 2016 fourth quarter was $341.6
million, up $11.0 million or 3.3%, compared to total revenue of
$330.6 million in the third quarter of fiscal 2016. Compared to the
prior year period, total revenue decreased $22.4 million, or 6.2%,
compared to $364.0 million in the fourth quarter of fiscal
2015.
North American Staffing revenue, which provides a broad spectrum
of contingent staffing, direct placement, recruitment process
outsourcing and other employment services, was $270.6 million, a
$7.6 million or 2.9% increase compared to $263.0 million in the
third quarter of fiscal 2016. Compared to the prior year period,
North American Staffing revenues declined $5.6 million, or 2.0%,
compared to North American Staffing revenue of $276.2 million in
the fourth quarter of fiscal 2015.
International Staffing revenue, which includes the Company’s
contingent staffing, direct placement and managed programs
businesses in Europe and Asia, was $31.7 million, down $0.9 million
or 2.6%, compared to $32.6 million in the prior quarter.
International Staffing revenues declined $5.9 million, or 15.6%,
from the fourth quarter of fiscal 2015.
Technology Outsourcing Services and Solutions revenue, which
provides quality assurance, business intelligence and analytics and
customer service support for companies in a variety of industries,
was $30.5 million, up $6.7 million or 28.0% from $23.9 million in
the prior quarter. Technology Outsourcing Services and Solutions
revenue declined $2.6 million, or 7.8%, compared to $33.1 million
in the prior year period.
Corporate and Other revenue, which primarily consists of the
Company’s North American managed service business and information
technology infrastructure business was $27.6 million, up $0.4
million or 1.3%, compared to $27.2 million in the prior quarter.
Corporate and Other revenue declined $10.1 million, or 26.9%,
compared to $37.7 million in the fourth quarter of 2015.
Net income of $2.8 million in the fourth quarter of fiscal 2016
included $1.5 million of restructuring and severance costs and
impairment charges, partially offset by $0.5 million related to the
amortization of the gain on the sale of real estate. Excluding the
impact of these special items, net income for the fourth quarter of
2016 would have been $3.8 million on a Non-GAAP basis.
Adjusted EBITDA, which is also a Non-GAAP measure, was $8.0
million in the fiscal 2016 fourth quarter. Adjusted EBITDA excludes
the impact of interest expense, income tax expense, depreciation
and amortization expense, other income/loss and share-based
compensation expense. For a reconciliation of the GAAP and Non-GAAP
financial results, please see the tables at the end of this press
release.
Fiscal 2016 Full Year Results
Total revenue for the full year of fiscal 2016 was $1,334.7
million, down $162.2 million, or 10.8%, compared to total revenue
of $1,496.9 million for the full year of fiscal 2015.
North American Staffing revenue was $1,047.9 million, down $79.4
million or 7.0%, compared to $1,127.3 million for the full year of
fiscal 2016. International Staffing revenue was $131.5 million,
down $16.1 million or 10.9%, from $147.6 million in the prior year
period.
Technology Outsourcing Services and Solutions revenue was $106.6
million, down $29.3 million or 21.6%, from $135.9 million for the
full year of fiscal 2015. Corporate and Other revenue was $114.8
million, down $53.6 million or 31.9%, from $168.4 million in the
prior year period.
Loss from continuing operations in fiscal 2016 of $14.6 million
included $6.1 million of restructuring and severance costs and
impairment charges as well as $1.0 million of consulting and
professional fees, partially offset by $2.9 million related to the
gain on the sale of real estate. Excluding these items, the loss
from continuing operations in 2016 would have been $10.4 million on
a Non-GAAP basis.
Financing
Subsequent to the end of the fourth quarter, the Company amended
its $160.0 million Financing Program with PNC to extend the Program
by one year to January 31, 2018. The amendment revised the existing
minimum liquidity level from $35 million to $20 million with a
step-up to $25.0 million at the earlier of, 1) the sale of
Maintech, Inc., or 2) receipt of the IRS tax refund. The amendment
also established a new performance based covenant which includes an
EBIT requirement.
Liquidity
As of October 30, 2016, the Company had $48.5 million of global
liquidity for working capital requirements as compared to $49.4
million in the prior year period.
Conference Call and Webcast
A conference call and simultaneous webcast to discuss the fiscal
2016 fourth quarter financial results will be held today at 4:30
p.m. Eastern Time / 1:30 p.m. Pacific Time. Volt’s President and
CEO Michael Dean and CFO Paul Tomkins will host the conference
call. Participants can listen in via webcast by visiting the
Investor & Governance section of Volt’s website at
www.volt.com. Please go to the website at least 15 minutes early to
register, download and install any necessary audio software. The
conference call can also be accessed by dialing 877-407-9039
(201-689-8470 for international callers) and reference the "Volt
Information Sciences Earnings Conference Call."
Following the call, an audio replay will be available beginning
Wednesday, January 11, 2017 at 7:30 p.m. Eastern Time through
Wednesday, January 25, 2017 at 11:59 p.m. Eastern Time. To access
the replay, dial 844-512-2921 (412-317-6671 for international
callers) and enter the Conference ID # 13651129. A replay of the
webcast will also be available for 90 days upon completion of the
call, accessible through the Company's website
at www.volt.com in the Investors & Governance
section.
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), managed service programs, technology outsourcing
services and information technology infrastructure services. Our
staffing services consists of workforce solutions that include
providing contingent workers, personnel recruitment services, and
managed services programs supporting primarily professional
administration, technical, information technology, light-industrial
and engineering positions. Our managed service programs consist of
managing the procurement and on-boarding of contingent workers from
multiple providers. Our technology outsourcing services provide pre
and post production development, testing and customer support to
companies in the mobile, gaming, and technology devices industries.
In addition, we provide information technology infrastructure
services which provide server, storage, network and desktop IT
hardware maintenance, data center and network monitoring and
operations. Our complementary businesses offer customized talent,
technology and consulting solutions to a diverse client base. 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.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to a number of known and unknown risks, including, among
others, 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. Copies of the
Company’s latest Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, as filed with the Securities and
Exchange Commission, are available without charge upon request to
Volt Information Sciences, Inc., 1133 Avenue of the Americas, New
York, New York 10036, Attention: Shareholder Relations,
212-704-7921. These and other SEC filings by the Company are also
available to the public over the Internet at the SEC’s website at
http://www.sec.gov and at the Company’s website at
http://www.volt.com in the Investor & Governance section.
Results of Operations (in thousands, except per
share data) (Unaudited) Three Months Ended
Twelve Months Ended October 30, 2016 July 31,
2016 November 1, 2015 October 30, 2016
November 1, 2015 Net revenue $ 341,578 $
330,625 $ 363,974 $ 1,334,747 $ 1,496,897 Cost of services
284,651 282,098 305,800
1,132,253 1,268,363
Gross margin
56,927 48,527 58,174 202,494
228,534 Expenses: Selling, administrative and
other operating costs 50,636 49,543 55,250 203,930 231,033
Restructuring and severance costs 1,181 970 542 5,752 3,635
Impairment charges 364 - 672 364 6,626 Gain on sale of building
- - - (1,663 )
-
Total expenses 52,181 50,513
56,464 208,383 241,294 Operating
income (loss) 4,746 (1,986 ) 1,710
(5,889 ) (12,760 ) Interest
income (expense), net (813 ) (826 ) (737 ) (3,159 ) (2,672 )
Foreign exchange gain (loss), net (565 ) (1,003 ) (96 ) (1,803 )
(249 ) Other income (expense), net (443 ) (402 )
578 (1,544 ) 541
Income
(loss) from continuing operations before income taxes
2,925 (4,217 ) 1,455 (12,395
) (15,140 ) Income tax provision 138
393 1,384 2,175
4,646
Income (loss) from continuing operations
2,787 (4,610 ) 71 (14,570
) (19,786 ) Loss from discontinued operations
- - (315 ) -
(4,834 )
Net income (loss) $ 2,787
$ (4,610 ) $ (244
) $ (14,570 ) $ (24,620
) Per share data: Basic: Income (loss)
from continuing operations $ 0.13 $ (0.22 ) $ - $ (0.70 ) $ (0.95 )
Loss from discontinued operations - -
(0.01 ) - (0.23 )
Net income
(loss) $ 0.13 $ (0.22
) $ (0.01 ) $ (0.70
) $ (1.18 ) Weighted average number of
shares 20,852 20,846 20,799 20,831 20,816
Diluted:
Income (loss) from continuing operations $ 0.13 $ (0.22 ) $ - $
(0.70 ) $ (0.95 ) Loss from discontinued operations -
- (0.01 ) - (0.23 )
Net income (loss) $ 0.13 $
(0.22 ) $ (0.01 ) $
(0.70 ) $ (1.18 ) Weighted
average number of shares 21,762 20,846 20,930 20,831 20,816
Segment data: North American Staffing $ 270,577 $
263,048 $ 276,163 $ 1,047,888 $ 1,127,284 International Staffing
31,730 32,565 37,585 131,496 147,649 Technology Outsourcing
Services and Solutions 30,533 23,857 33,103 106,585 135,886
Corporate and Other 27,571 27,206 37,702 114,772 168,422
Eliminations (18,833 ) (16,051 ) (20,579 )
(65,994 ) (82,344 )
Net revenue: $
341,578 $ 330,625 $
363,974 $ 1,334,747 $
1,496,897 Operating income (loss):
North American Staffing $ 10,615 $ 6,685 $ 6,935 $ 23,170 $ 18,543
International Staffing 785 867 (69 ) 2,357 603 Technology
Outsourcing Services and Solutions 3,087 (892 ) 3,359 5,498 12,032
Corporate and Other (9,741 ) (8,646 ) (8,515 ) (38,577 ) (43,938 )
Gain on sale of building - - -
1,663 -
Operating income
(loss) $ 4,746 $ (1,986
) $ 1,710 $ (5,889
) $ (12,760 ) Work days
64 63 64 251 251
Commencing in the first quarter of fiscal 2016, the Company changed
its methodology for the allocation of costs to more effectively
reflect and measure the individual businesses' financial and
operational efficiency. Prior period segment results have been
revised for these changes.
Condensed Consolidated Statements of Cash Flows (in
thousands) (Unaudited) Twelve Months Ended
October 30, 2016 November 1, 2015 Cash and
cash equivalents, beginning of the period $
10,188 $ 6,723 Cash used in all other
operating activities (8,789 ) (3,388 ) Changes in operating assets
and liabilities 1,178 46,712
Net
cash provided by (used in) operating activities
(7,611 ) 43,324 Proceeds
from sale of property and equipment 36,808 465 Net cash used in all
other investing activities (17,968 ) (7,893 )
Net
cash provided by (used in) investing activities
18,840 (7,428 ) Decrease
in cash restricted as collateral for borrowings - 10,436 Net change
in borrowings (2,950 ) (28,506 ) Repayment of long-term debt (7,295
) (832 ) Purchases of common stock under repurchase program -
(4,262 ) Net cash used in all other financing activities
(1,141 ) (895 )
Net cash used in financing activities
(11,386 ) (24,059 )
Effect of exchange rate changes on cash and cash
equivalents (3,645 ) (924 )
Net cash used in discontinued operations -
(7,237 ) Net increase (decrease) in
cash and cash equivalents (3,802 )
3,676 Change in cash from discontinued
operations - (211 )
Cash and cash equivalents, end of the period $
6,386 $ 10,188 Cash
paid during the period: Interest $ 3,305 $ 3,196 Income taxes $
4,316 $ 3,315
Condensed
Consolidated Balance Sheets (in thousands, except share
amounts)
October 20, 2016
November 1, 2015
ASSETS CURRENT ASSETS: Cash and cash equivalents $
6,386 $ 10,188 Restricted cash and short-term investments 13,948
14,977 Trade accounts receivable, net of allowances of $801 and
$960, respectively 193,866 198,385 Recoverable income taxes 16,979
16,633 Prepaid insurance and other current assets 11,806 15,865
Assets held for sale 17,580 22,943
TOTAL CURRENT ASSETS 260,565 278,991 Other
assets, excluding current portion 25,767 23,740 Property, equipment
and software, net 30,133 24,095
TOTAL ASSETS $ 316,465 $
326,826 LIABILITIES AND STOCKHOLDERS'
EQUITY CURRENT LIABILITIES: Accrued compensation $
29,147 $ 29,548 Accounts payable 32,425 39,164 Accrued taxes other
than income taxes 22,791 22,719 Accrued insurance and other 34,306
34,391 Short-term borrowings, including current portion of
long-term debt 2,050 982 Income taxes payable - 1,658 Liabilities
held for sale 5,760 7,345
TOTAL
CURRENT LIABILITIES 126,479 135,807 Accrued
insurance and other, excluding current portion 13,136 13,699
Deferred gain on sale of real estate, excluding current portion
26,108 - Income taxes payable, excluding current portion 6,777
6,516 Long-term debt, excluding current portion 95,000
106,313
TOTAL LIABILITIES
267,500 262,335 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 and 23,738,003, respectively; Outstanding - 20,917,500
and 20,801,080, respectively 2,374 2,374 Paid-in capital 76,564
75,803 Retained earnings 21,000 38,034 Accumulated other
comprehensive loss (10,612 ) (7,994 ) Treasury stock, at cost;
2,820,503 shares and 2,936,923 shares, respectively (40,361
) (43,726 )
TOTAL STOCKHOLDERS' EQUITY
48,965 64,491 TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $ 316,465
$ 326,826 Unaudited
Non-GAAP Statement of Operations and Reconciliations (in
thousands, except earnings per share)
Three Months Ended October
30, 2016 Three Months Ended November 1, 2015 GAAP
Special Items Ref Non-GAAP GAAP
Special Items Ref Non-GAAP Net
Revenue: $ 341,578 $ - $ 341,578 $ 363,974 $ - $ 363,974 Cost
of services 284,651 - 284,651
305,800 - 305,800
Gross margin 56,927 - 56,927 58,174 - 58,174
Expenses: Selling, administrative and other operating costs 50,636
486 (a) 51,122 55,250 (368 ) (d) 54,882 Restructuring and severance
costs 1,181 (1,181 ) (b) - 542 (542 ) (e) - Impairment charges
364 (364 ) (c) - 672
(672 ) (f) - Total expenses 52,181
(1,059 ) 51,122 56,464 (1,582 )
54,882
Operating income 4,746
1,059 5,805 1,710 1,582 3,292 Other income (expense), net:
Interest income (expense), net (813 ) - (813 ) (737 ) - (737 )
Foreign exchange gain (loss), net (565 ) - (565 ) (96 ) 96 (g) -
Other income (expense), net (443 ) -
(443 ) 578 (764 ) (h) (186 ) Total
other income (expense), net (1,821 ) - (1,821 ) (255 ) (668 ) (923
) Income from continuing
operations before income taxes 2,925 1,059 3,984 1,455 914 2,369
Income tax provision 138 - 138
1,384 - 1,384
Income from continuing operations $ 2,787 $ 1,059 $
3,846 $ 71 $ 914 $ 985 * Basic
income from continuing operations $ 0.13 $ 0.05 $ 0.18 $ - $ 0.04 $
0.05 * Diluted income from continuing operations $ 0.13 $ 0.05 $
0.18 $ - $ 0.04 $ 0.05 Basic weighted average number of
shares 20,852 20,852 20,852 20,799 20,799 20,799 Diluted weighted
average number of shares 21,762 21,762 21,762 20,930 20,930 20,930
Special item adjustments consist of the following:
(a) Relates to the amortization of the gain on the sale of the
Orange, CA facility. (b) Relates primarily to company-wide cost
reduction plan. (c) Relates to impairment of capitalized software.
(d) Relates primarily to CEO search fees. (e) Relates primarily to
severance charges associated with headcount reductions. (f) Relates
to impairment of net assets related to our staffing business in
Uruguay. (g) Relates primarily to non-cash foreign exchange gain or
loss on our intercompany balances. (h) Relates primarily to the
sale of non-core operations. * Earnings per share may not
add in certain periods due to rounding.
Unaudited
Non-GAAP Statement of Operations and Reconciliations (in
thousands, except earnings per share)
Twelve months ended October
30, 2016 Twelve Months ended November 1, 2015
GAAP Special Items Ref Non-GAAP
GAAP Special Items Ref Non-GAAP
Revenue: $ 1,334,747 $ - $ 1,334,747 $ 1,496,897 $ - $
1,496,897 Cost of services 1,132,253 -
1,132,253 1,268,363 -
1,268,363
Gross margin 202,494 - 202,494
228,534 - 228,534 Expenses: Selling, administrative and
other operating costs 203,930 317 (a) 204,247 231,033 (4,548 ) (e)
226,485 Restructuring and severance costs 5,752 (5,752 ) (b) -
3,635 (3,635 ) (f) - Impairment charges 364 (364 ) (c) - 6,626
(6,626 ) (g) - Gain on sale of building (1,663 )
1,663 (d) - - -
- Total expenses 208,383 (4,136 ) 204,247 241,294
(14,809 ) 226,485
Operating income (loss) (5,889 ) 4,136 (1,753 ) (12,760 ) 14,809
2,049 Other income (expense), net: Interest income
(expense), net (3,159 ) - (3,159 ) (2,672 ) - (2,672 ) Foreign
exchange gain (loss), net (1,803 ) - (1,803 ) (249 ) 249 (h) -
Other income (expense), net (1,544 ) -
(1,544 ) 541 (723 ) (i) (182 ) Total
other income (expense), net (6,506 ) - (6,506 ) (2,380 ) (474 )
(2,854 ) Income (loss)
from continuing operations before income taxes (12,395 ) 4,136
(8,259 ) (15,140 ) 14,335 (805 ) Income tax provision 2,175
- 2,175 4,646
- 4,646 Income (loss) from continuing
operations $ (14,570 ) $ 4,136 $ (10,434 ) $ (19,786 ) $
14,335 $ (5,451 ) * Basic income (loss) from
continuing operations $ (0.70 ) $ 0.20 $ (0.50 ) $ (0.95 ) $ 0.69 $
(0.26 ) * Diluted income (loss) from continuing operations $ (0.70
) $ 0.20 $ (0.50 ) $ (0.95 ) $ 0.69 $ (0.26 ) Basic weighted
average number of shares 20,831 20,831 20,831 20,816 20,816 20,816
Diluted weighted average number of shares 20,831 20,831 20,831
20,816 20,816 20,816
Special item adjustments consist of
the following: (a) Relates primarily to consultants and
professional fees incurred to attract world class executive talent
and implementing a pay for performance annual incentive plan,
partially offset by the amortization of the gain on the sale of the
Orange, CA facility. (b) Relates primarily to company-wide cost
reduction plan. (c) Relates to impairment of capitalized software.
(d) Relates to the gain on the sale of the San Diego, CA facility.
(e)
Relates primarily to stock-based
compensation granted to our new Board of Directors of $1.5 million,
costs incurred with responding to activist shareholders and related
Board of Directors search fees as well as legal and other
items.
(f) Relates primarily to severance charges associated with the
departure of our former Chief Executive Officer and Chief Financial
Officer, as well as company-wide cost reduction plan. (g)
Relates primarily to capitalized
internally developed software, impairment of net assets in our
publishing and printing business in Uruguay as well as impairment
of our Uruguay staffing goodwill.
(h) Relates primarily to non-cash foreign exchange gain or loss on
our intercompany balances. (i) Relates primarily to the sale of
non-core operations.
Unaudited Reconciliation of
GAAP Loss from Continuing Operations to Adjusted EBITDA
(in thousands) Three Months
Ended October 30, 2016 November 1, 2015
GAAP income from continuing operations $ 2,787 $ 71 Special items
1,059 914 Non-GAAP income from continuing operations
3,846 985 Adjustments: Depreciation and amortization 1,428
1,701 Share-based compensation expense 808 342 Other (income) loss,
net (a) 1,821 923 Provision for income taxes 138
1,384 Adjusted EBITDA $ 8,041 $ 5,335 (a) Includes interest
income (expense) and other income (expense), net.
Unaudited Reconciliation of GAAP Loss from Continuing
Operations to Adjusted EBITDA (in thousands)
Twelve Months Ended October
30, 2016 November 1, 2015 GAAP loss from
continuing operations $ (14,570 ) $ (19,786 ) Special items
4,136 14,335 Non-GAAP loss from continuing
operations (10,434 ) (5,451 ) Adjustments: Depreciation and
amortization 5,969 6,811 Share-based compensation expense 1,828
1,400 Other (income) loss, net (a) 6,506 2,854 Provision for income
taxes 2,175 4,646 Adjusted EBITDA $
6,044 $ 10,260 (a) Includes interest income
(expense) and other income (expense), net.
Note Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial information,
which includes adjustments for special items, as additional
information for its consolidated income (loss) from continuing
operations, segment operating income (loss) and Adjusted EBITDA.
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
eliminating 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’s
continuing operations without the effect of special items 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
expenses or income not indicative of the Company’s current or
future period performance and are more fully disclosed in the
tables.
Adjusted EBITDA is defined as earnings or loss from continuing
operations 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 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.
The Company’s computation of Adjusted EBITDA 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170111006075/en/
Investor Contacts:Volt Information Sciences,
Inc.voltinvest@volt.comorAddo Investor RelationsLasse
Glassen424-238-6249lglassen@addoir.com
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