Staffing 360 Solutions Provides 2020 Overview
January 22 2020 - 8:36AM
Staffing 360 Solutions, Inc. (NASDAQ: STAF), a company executing an
international buy-integrate-build strategy through the acquisition
of staffing organizations in the United States and the United
Kingdom, today provided its 2020 outlook and previewed fiscal 2019
revenue results.
Brendan Flood, Chairman and CEO said, “For many
reasons 2020 is already shaping up to be a highly productive year
for us as outlined in our 2020 overview.”
2020 Overview
- On a macro level, there is growing optimism in the business
media that the world economy will continue on a strong path in
2020. - We operate in both the US and the UK and those
economies are strong. - Staffing Industry Analysts (SIA)
recently said that the worst of the temp slowdown may be behind
us. - Brexit should commence the end of this month, allowing
for more certainty about the UK economic outlook.
- From a corporate perspective, we are still experiencing very
strong demand for candidates in each of our business streams (for
contract and permanent talent) and we are making solid progress
adding new clients. - Cross-sales within the US and within
the UK continue to build on recent successes -
All four US & UK brands successfully collaborated on a new
US-based project late in Q4. We see these new inter-country
cross-sales opportunities growing as well. - Our fourth
quarter engagement of R.W. Baird (a multinational independent
investment bank and financial services company) is active as they
assist us with strategic acquisitions – and the related refinancing
of our balance sheet to accommodate any successful
transactions. - That work progresses
simultaneously down two paths. First combined acquisition and
refinance and second for standalone debt refinance.
- UK Professional - Clement May – continuing to build upon
January 2019 three-year extension with client British American
Tobacco, with placements both inside and outside the US. -
CBSbutler – permanent placements off to a healthy start, that
pipeline is strong. Contract placements up in December. Seeing new
demand in pharmaceutical and aviation markets. - JM Group –
growing contract placements for Information Security.
- US Professional - firstPRO – strong 2019 finish for
contract placements with headcount still increasing; permanent
placement also increasing. Actively targeting and producing higher
level contract placements to increase margins; anticipate increased
performance. - Lighthouse – strong permanent outlook. Seeing
aggressive growth with pharma; on track to become approved vendor
for east coast hospital. Anticipate cross-sales success with
Commercial this year.
- US Commercial - Monroe – large accounts performing well
with high customer satisfaction rating; win rates have tripled;
program for improved account retention; solid opportunities in
pipeline. - Net Promotor Score (NPS) measuring
customer loyalty is 75+% (industry average is 35%)
- Key Resources – three new potential clients look strong. Fiscal
2019 Revenue Preview - 2019 revenue is expected to be $278.5
million, an increase of 6.7%. - Revenue is in
line with previously stated full year revenue estimate of $275-285
million.
Flood said, “We are optimistic and our overall
business outlook is strong - with 2020 giving all the appearances
of a good one for us. As my final comment, I would like to point
out that I consider our work with R.W. Baird on the refinancing of
our debt very important and it remains one of the focal points of
the corporate office.”
About Staffing 360 Solutions,
Inc.Staffing 360 Solutions, Inc. is engaged in the
execution of an international buy-integrate-build strategy through
the acquisition of domestic and international staffing
organizations in the United States and United Kingdom. The Company
believes that the staffing industry offers opportunities for
accretive acquisitions that will drive profitable annual revenues
to $500 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.
Forward-Looking StatementsThis
press release contains forward-looking statements, which 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 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 $500 million, due to the Company’s ability to
successfully raise sufficient capital on reasonable terms or at
all, to consummate additional acquisitions, to successfully
integrate newly acquired companies, to organically grow its
business, to successfully defend potential future litigation,
changes in local or national economic conditions, the ability to
comply with contractual covenants, including in respect of its
debt, as well as various additional risks, many of which are now
unknown and generally out of the Company’s control, and which are
detailed from time to time in reports filed by the Company 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.
Investor Relations Contact:
Harvey Bibicoff, CEO Bibicoff + MacInnis, Inc. 818.379.8500
harvey@bibimac.com
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