Staffing 360 Solutions Reports 2018 Fourth Quarter and Fiscal Year-End Results
March 20 2019 - 4:54PM
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 announced its Fiscal 2018 Year-End financial
results.
Q4 2018 Highlights
- Revenue grew by 24.6% to $74.1 million, from $59.5 million in
Q4 ’17
- Gross profit grew by 3.6% to $12.3 million, from $11.9 million
in Q4 ’17
- Gross margin was 16.7% compared with 20% in Q4 ’17
- Income from operations of $1.3 million compared with a loss
from operations of $5.4 million in Q4 ’17
- Net loss of $1.4 million compared with net loss of $7.3 million
in Q4 ’17
- EBITDA of $2.0 million compared with EBITDA loss of $3.3
million in Q4 ’17
- Adjusted EBITDA of $2.8 million was flat compared to Q4
’17
- EPS loss of ($0.29) compared with a loss of ($2.20) per share
in Q4 ’17
Brendan Flood, Chairman and Chief Executive
Officer said, “2018 was a very successful year by any standard. We
continue to grow…we continue to improve already positive EBITDA and
Adjusted EBITDA…and we continue to march toward net profit, which
we expect to happen in the current year.”
Fiscal 2018 Highlights
- Revenue grew by $68.3 million, or 35.4%, to $260.9 million
- Gross profit grew by $11.6 million, or 31.5%, to $48.3
million
- Gross margin of 18.5% compared with 19.1% in Fiscal 2017
- Net loss of $6.5 million compared with net loss of $18.5
million in Fiscal 2017
- EBITDA of $5.6 million compared with an EBITDA loss of $7.5
million in Fiscal 2017
- Adjusted EBITDA of $9 million as compared with $7.4 million in
Fiscal 2017
- EPS loss of $1.57 compared with Fiscal 2017 EPS loss of
$7.39
Use of Non-GAAP Financial
Measures EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Other companies may have different definitions of
these non-GAAP financial measures, and as a result they may not be
comparable with non-GAAP financial measures provided by other
companies. EBITDA and Adjusted EBITDA are calculated in a manner
consistent with that shown in the table at the end of this press
release and should not be considered alternatives to measurements
required by U.S. GAAP, such as net revenue, operating profit or net
income, and should not be considered a measure of the Company’s
liquidity.
The Company uses these non-GAAP financial
measures, among several other metrics, to assess and analyze its
operational results and trends. The Company also believes these
measures are useful to investors because they are common operating
performance metrics as well as metrics routinely used to assess
potential enterprise value.
Conference CallThe Company will
host a conference call focusing on financial results, recent
business developments and growth initiatives on Thursday, March 21,
2019 at 9:00am Eastern Time.
The Participant Dial-In Number for the
conference call is 1-631-891-4304. Participants should dial in to
the call at least five minutes before 9:00am ET on March 21, 2019.
The call can also be accessed "live" online at
http://public.viavid.com/index.php?id=133679. A replay of the
recorded call will be available for 90 days on the Company's
website (http://www.staffing360solutions.com/res.html).
You can also listen to a replay of the call by
dialing 1-844-512-2921 (international participants dial
1-412-317-6671) starting March 21, 2019, at 7:30pm ET through April
4, 2019 at 11:59 pm ET. Please use PIN Number 10006400.
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 its 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 $500 million, due to the Company’s ability to
successfully raise sufficient capital on reasonable terms or at
all, to consummate additional acquisitions, to successfully
integrate newly acquired companies, to organically grow its
business, to successfully defend potential future litigation,
changes in local or national economic conditions, the ability to
comply with contractual covenants, including in respect of its
debt, as well as various additional risks, many of which are now
unknown and generally out of the Company’s control, and which are
detailed from time to time in reports filed by the Company with the
SEC, including quarterly reports on Form 10-Q, reports on Form 8-K
and annual reports on Form 10-K. Staffing 360 Solutions does
not undertake any duty to update any statements contained herein
(including any forward-looking statements), except as required by
law.
Investor Relations Contact: Harvey Bibicoff,
CEO Bibicoff + MacInnis, Inc. 818.379.8500
harvey@bibimac.com
Staffing 360 Solutions, Inc. and
Subsidiaries |
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Reconciliation of Net Loss to Adjusted
EBITDA |
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(All Amounts in Thousands) |
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Q4 2018 |
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Q4 2017 |
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Fiscal 2018 |
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Fiscal 2017 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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Revenue |
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$ |
74,091 |
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$ |
59,476 |
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$ |
260,926 |
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$ |
192,650 |
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Gross
Profit |
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$ |
12,345 |
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$ |
11,914 |
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$ |
48,304 |
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$ |
36,741 |
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Gross
Margin |
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16.7 |
% |
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20.0 |
% |
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18.5 |
% |
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19.1 |
% |
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Net
Loss |
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$ |
(1,406 |
) |
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$ |
(7,324 |
) |
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$ |
(6,501 |
) |
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$ |
(18,491 |
) |
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Adjustments: |
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Interest
Expense |
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$ |
2,201 |
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$ |
1,902 |
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$ |
8,386 |
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$ |
3,745 |
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Provision
for income taxes |
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|
100 |
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|
719 |
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22 |
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|
932 |
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Depreciation and Amortization (1) |
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1,060 |
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1,391 |
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3,704 |
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6,311 |
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EBITDA |
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1,955 |
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(3,312 |
) |
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5,611 |
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(7,503 |
) |
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Acquisition, capital raising and other non-recurring expenses
(2) |
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482 |
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945 |
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3,124 |
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2,139 |
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Other
non-cash charges (3) |
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207 |
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368 |
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1,158 |
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1,330 |
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Loss on
extinguishment of debt, net |
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- |
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- |
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- |
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6,132 |
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Restructuring charges |
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(57 |
) |
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780 |
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(57 |
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780 |
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Impairment of goodwill |
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- |
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4,790 |
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- |
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4,790 |
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Change in
fair value of warrant liability |
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- |
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(876 |
) |
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(879 |
) |
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(383 |
) |
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Gain from
sale of business |
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- |
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- |
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(238 |
) |
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- |
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Re-measurement loss on intercompany note |
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354 |
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- |
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686 |
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- |
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Other
(income) / expense |
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(171 |
) |
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75 |
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(398 |
) |
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106 |
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Adjusted
EBITDA |
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$ |
2,770 |
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$ |
2,770 |
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$ |
9,007 |
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$ |
7,391 |
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Adjusted
EBITDA Margin |
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3.7 |
% |
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4.7 |
% |
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3.5 |
% |
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3.8 |
% |
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TTM Adjusted
EBITDA |
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$ |
9,007 |
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$ |
7,391 |
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$ |
9,007 |
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$ |
7,391 |
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Gross Profit TTM |
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$ |
48,304 |
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$ |
36,741 |
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$ |
48,304 |
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$ |
36,741 |
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TTM Adjusted EBITDA as
percentage of gross profit TTM |
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|
18.6 |
% |
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20.1 |
% |
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18.6 |
% |
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20.1 |
% |
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Pro Forma TTM Adjusted EBITDA (4) |
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$ |
11,384 |
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$ |
10,847 |
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$ |
11,384 |
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$ |
10,847 |
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(1) Includes amortization included in other expenses. |
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(2) Acquisition, capital raising and other non-recurring
expenses primarily relate to capital raising expenses,
acquisition and integration expenses and legal
expenses incurred in relation to matters outside the ordinary
course of business. |
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(3) Other non-cash charges primarily relate to staff
option and share compensation expense, expense for shares issued to
directors for board services, and consideration
paid for consulting services. |
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(4) Pro Forma TTM Adjusted EBITDA includes the Adjusted EBITDA
of acquisitions for the period prior to the acquisition
date. |
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