Staffing 360 Solutions Pre-Announces First Quarter Results

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
63
Staffing 360 Solutions Pre-Announces First Quarter Results

NEW YORK, NY --(Marketwired - May 08, 2017) - Staffing 360 Solutions, Inc. ( NASDAQ : STAF ), a public company executing an international buy-and-build strategy through the acquisition of staffing organizations in the United States and in the United Kingdom, today pre-announced its unaudited financial results for the fiscal first quarter ended April 1, 2017.

Subject to the completion of the review of Staffing 360 Solutions' full financial statements and filing with the Securities and Exchange Commission, the results for fiscal Q1 2017 are expected to be as follows:

  • Revenue of $40.7 million, a 5.7% decrease from $43.2 million in Q1 2016. On a constant currency basis, the decrease was 3.4%;
  • Gross profit of $7.3 million, a 1.4% increase over $7.2 million in Q1 2016; On a constant currency basis, the gain was 4.4%;
  • Net loss attributable to common stock of $3.6 million compared to $2.6 million in Q1 2016. The current year includes non-cash accounting charges of $1.4 million associated with the amendment and subsequent pay off of convertible notes;
  • Adjusted EBITDA of $1.0 million, a 46% increase over $0.7 million in Q1 2016. Impact of currency was not significant.

"Although we experienced a dip in revenue compared to the same time last year, our gross profit and margin continued to improve, our SG&A overheads reduced and this led to a continued growth in our adjusted EBITDA," stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. "The Net Loss attributable to common stock included a $1.4 million non-cash charge for refinancing actions taken in the quarter."

Mr. Flood continued, "Although we often see a dip in revenue in the winter months, revenue was down year-over-year due to several factors, including four fewer working days in this quarter than the same period of 2016 costing us $1.8 million, an exchange rate drop of $1.0 million and the reduction in demand from one of our largest clients costing us $0.8 million that we believe is now behind us. We expect some softness in revenue to continue across the second quarter but, as mentioned on our conference call, we have several new contracts that are expected to ramp up in mid-Summer and to have an important impact on the second half of the year. By generating improvements of our bottom line figures in flat and down quarters through our continued synergies and cost cutting measures, we expect to see continuing improvement in metrics like Adjusted EBITDA as sales begin to accelerate throughout the rest of the year."

The Company expects to file its full results for the fiscal first quarter ended April 1, 2017 on Form 10-Q before the SEC filing deadline in mid-May, along with hosting an earnings conference call.

For more information about Staffing 360 Solutions and complete investor materials such as investor presentations, white papers and webcasts of past earnings calls, please visit: www.staffing360solutions.com/res.html .

About Staffing 360 Solutions, Inc.

Staffing 360 Solutions, Inc. ( NASDAQ : STAF ) is a public company in the staffing sector engaged in the execution of an international buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and in the United Kingdom. The Company believes that the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $300 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and Light Industrial staffing space. For more information, please visit: www.staffing360solutions.com .

Follow Staffing 360 Solutions on Facebook , LinkedIn and Twitter .

Non-GAAP Financial Measures

The Company uses financial measures which are not calculated and presented in accordance with US generally accepted accounting principles ("GAAP") in evaluating its financial and operational decision making regarding potential acquisitions, as well as a means to evaluate period-to-period comparison. The Company presents these non-GAAP financial measures because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We refer you to the reconciliations below.

The Company defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, income taxes, depreciation and amortization, and amortization of non-cash stock-based compensation, non-recurring acquisition and restructuring expenses and goodwill impairment charges.

Forward-Looking Statements

Certain matters discussed within this press release are forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Although Staffing 360 Solutions, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Actual results may vary materially from those expressed or implied by the statements herein, including the goal of achieving annualized revenues of $300 million, due to the Company's ability to successfully raise sufficient capital on reasonable terms or at all, to consummate additional target acquisitions, to successfully integrate any newly acquired companies, to organically grow its business, to successfully defend any potential future litigation, changes in local or national economic conditions, the Company's ability to comply with its contractual covenants, including in respect of its debt, as well as various additional risks, many of which are unknown at this time and generally out of the Company's control, and which are detailed from time to time in Staffing 360 Solutions' reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

   
Staffing 360 Solutions, Inc. and Subsidiaries  
Reconciliation of Net Loss Attributable to Common Stock  to Adjusted EBITDA  
(All Amounts in Thousands)  
             
    For the Period     For the Period  
    January 1, 2017     December 27, 2015  
    to April 1,     to March 26,  
    2017     2016  
    (Unaudited)     (Unaudited)  
             
Net Loss Attributable to Common Stock   $ (3,613 )   $ (2,563 )
                 
Adjustments:                
  Interest Expense   $ 502     $ 600  
  Provision for Income Taxes     115       50  
  Depreciation and Amortization *     1,279       1,495  
EBITDA     (1,717 )     (418 )
                 
  Acquisition, Capital Raising and Other Non-Recurring Expenses     757       350  
  Debt Extinguishment Costs     1,368       -  
  Other Non-Cash Charges     582       666  
  Restructuring Charges     -       5  
  Modification Expense     5       31  
  Dividends - Series A Preferred Stock     50       50  
  Other Expense     (7 )     (14 )
  Net Income Attributable to Non-Controlling Interest     -       42  
Adjusted EBITDA   $ 1,038     $ 712  
                 

* Includes amortization included within Other Expenses.

Image Available: http://www.marketwire.com/library/MwGo/2017/5...1ef69e.jpg

Corporate Investor Contact: Staffing 360 Solutions, Inc. Darren Minton Executive Vice President +1.646.507.5712 Email contact Financial Contact: Staffing 360 Solutions, Inc. David Faiman Chief Financial Officer +1.646.507.5711 Email contact

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Upsher-Smith Rolls Out New Eye Solutions, Impacts Market

Updated Category News Views 54

Upsher-Smith's Bold Move in Ophthalmics Right out of Maple Grove, Minnesota, Upsher-Smith Laboratories is shaking up the eye care scene with the launch of two strengths of Brimonidine Tartrate Ophthalmic Solution. We're talking 0.1% and 0.15%, folks. This ain't just a dribble in the ocean—these products are sailing into a $115 million market arena, according to IQVIA....

Continue Reading
PVA Unveils Hotel Accessibility Guide for Disabled Travelers

Updated Category News Views 161

Is Your Hotel Truly Accessible? Time to Find Out. Another day, another step toward making the world a bit more navigable for folks with mobility challenges—and it's about time the hospitality sector caught up. Today, Paralyzed Veterans of America (PVA) rolled out the first volume of their 'Best Practices in Hotel Accessibility Guide.' Think of it as a roadmap for hotels...

Continue Reading
Bank Automation: A Deeper Dive Into Efficiency Gains

Updated Category News Views 35

Banking Automation Gets Its Day in the Sun Grab your mugs, folks. It’s another day in banker land where innovation isn't just some fancy conference buzzword. The spotlight’s firmly fixed on the upcoming 2026 Mid-Atlantic Banking Technology & Innovation Summit. Happening on November 13th in Leesburg, Virginia, this is where the real nitty-gritty of banking meets...

Continue Reading
Celebrating Science with Southeastern Tile's Sponsorship

Updated Category News Views 50

Crafting Pathways and Fostering Curiosity In this world of rapid change and relentless innovation, supporting education—especially in science and technology—is like buying a piece of the future. And, boy, is Southeastern Tile Connection onto something with that. They've stepped up as an Exploration Sponsor for the Asheville Museum of Science's (AMOS) annual gala,...

Continue Reading
Ericsson Buybacks: Strategic Moves or Market Maneuver?

Updated Category News Views 90

Breaking Down Ericsson's Strategic Share Buybacks When a company like Ericsson starts pulling stocks off the shelves like they're on sale, it's time to take notice. Between November 2nd and 6th, Ericsson, that telecom giant we all know, went on a little shopping spree, snapping up 500,000 of its own Class B shares. Why should we care? Well, it's a part of their hefty SEK...

Continue Reading
Palmdale Expands Reach with Tri-County Acquisition

Updated Category News Views 134

Fueling Up a New Chapter in Florida Once in a blue moon, you see a move that just clicks—and Palmdale Oil snapping up Tri-County Oil Distributors is that kind of slick deal. We're not talking about some Wall Street high-flyer here—this is down-to-earth business in North Central Florida, where local ties and trust still mean something. Why Tri-County Fits the Bill If...

Continue Reading
Global Vineyards List: New Entrants & Rankings Unveiled

Updated Category News Views 140

Vineyards' Global Ranking Unveiled Wine enthusiasts and globetrotters have something to toast about this November. The 50 Best Vineyards just expanded its ranking to reveal the vineyards sitting in spots 51 through 100 for 2026. This list, spotlighting some of the globe's finest wine destinations, precedes the main awards ceremony set for November 18 in Santiago, Chile....

Continue Reading
Stavian Group Eyes AI-Driven Southeast Asia Growth

Updated Category News Views 233

AI and Infrastructure: A New Chapter for Southeast Asia What does Southeast Asia's future look like with AI steering the ship? Well, there's a fresh breeze of change blowing, and right at the heart of it stands Stavian Group. At the recently held inaugural Fortune SEA500 Summit in Ho Chi Minh City, this conglomerate threw its hat into the ring, painting a vision of growth...

Continue Reading
LINC Investors' Deadline Looms for Class Action Filing

Updated Category News Views 51

The Legal Stakes: LINC's Critical Moment There's a storm at the gates for Lincoln Educational Services (NASDAQ: LINC), and it’s not just another day on Wall Street. We're looking at a securities class action that brings investors into the legal spotlight faster than you can say "diversify." November 10, 2026, marks the deadline for investors to jump into the fray and...

Continue Reading
Children's Institute Gala Raises $4M: A Night to Remember

Updated Category News Views 42

Breaking Records and Honoring Legends You know, sometimes there's more to the world than stocks and ticker tapes. Over in Los Angeles, the Children's Institute pulled off a real spectacle with their Annual Cape & Gown Gala, drawing in more than 600 folks and raking in a whopping $4 million. That's right, four million clams in one evening—a record-breaker for them. When...

Continue Reading

Top 5 Most Recently Viewed Articles

TraceLink's Partnership with UNICEF to Enhance Global Health Safety

Updated Category News Views 137

TraceLink's Commitment to Enhancing Medicine Safety TraceLink proudly announced its partnership with UNICEF's Traceability and Verification System (TRVST). This innovative global initiative aims to improve the safety and authenticity of medicines, particularly in regions susceptible to counterfeit or subpar products. Through this support, TraceLink solidifies its role as...

Continue Reading
Amphix Bio Secures $12.5M Seed Funding for Peptide Innovation

Updated Category News Views 209

Amphix Bio Secures Significant Funding to Propel Research Amphix Bio, a pioneering biotech company, has successfully achieved the initial closure of a $12.5 million seed financing round. This funding is critical for moving its lead therapeutic candidates towards human clinical trials and expanding its research scope to address challenging neurological conditions....

Continue Reading
California Employees Fight Back: A Class Action Against Hi Pro

Updated Category News Views 123

Class Action Filed Against Hi Pro, Inc. In a significant move for workers’ rights, a class action lawsuit has been initiated against Hi Pro, Inc. by legal advocates from Zakay Law Group, APLC and JCL Law Firm, APC. This action highlights allegations that the company failed to provide necessary meal and rest periods to its workforce, a violation of the California Labor...

Continue Reading
Join Norsk Hydro for a Special Investor Day in London

Updated Category News Views 197

Norsk Hydro Invites You to Its Investor Day Event Norsk Hydro is excited to extend an invitation to all investors, analysts, and financial media to its upcoming Investor Day. This significant event is set to take place on a date in the future, providing an opportunity for engaging discussions and insights. Event Details and Format The Investor Day will occur at a...

Continue Reading
Bitdeer Technologies Accelerates Growth with New Updates

Updated Category News Views 90

Bitdeer Technologies Group Production Update In a recent announcement, Bitdeer Technologies Group (NASDAQ: BTDR) shared insightful developments regarding its mining and operational progress for November. With an integration of innovative technologies in the blockchain realm, Bitdeer continues to stand out in the high-performance computing market. Key Operational...

Continue Reading