On Wednesday, Shares of Volt Information Sciences (NYSE: VISI) lost -0.38% to $2.60. The stock grabbed the investor’s attention and traded 13,854 shares as compared to its average daily volume of 31.48K shares. The stock’s institutional ownership stands at 38.10%.
Volt Information Sciences, Inc. (VISI), an international provider of staffing services and managed service programs, recently stated results for its 2018 third quarter ended July 29, 2018.
Fiscal 2018 Third Quarter Results:
Total revenue for the fiscal 2018 third quarter was $257.80M, down $32.10M, or 11.1%, contrast to $289.90M in the third quarter of fiscal 2017. On a same-store basis, net revenue declined 6.6% year-over-year excluding net revenue contributed from businesses sold or exited during the past year and the effect of currency fluctuations.
North American Staffing revenue, which includes a broad spectrum of contingent staffing, direct placement, recruitment process outsourcing and other employment services, was $215.70M, a $13.70M, or 6.0% decline contrast to North American Staffing revenue of $229.40M in the third quarter of fiscal 2017. The decline was driven by lower demand from customers in the professional and administrative and office job categories, partially offset by growth in the light industrial and engineering job categories.
International Staffing revenue, which includes the Company’s contingent staffing, direct placement and managed service programs businesses in Europe and Asia, was $28.60M, a $0.40M, or 1.5% decrease contrast to $29.00M from the third quarter of fiscal 2017. Excluding the positive impact of foreign exchange rate fluctuations of $0.90M offset by a decrease related to business exited of $0.80M, revenue declined $0.50M, or 1.8%, contrast to the third quarter of fiscal 2017, mainly because of lower demand in the United Kingdom, offset by strong growth in Belgium.
Corporate and Other revenue, which mainly consists of the Company’s North American managed service business and the Company’s call center business, was $14.40M, down $19.00M, or 56.8%, contrast to $33.40M in the third quarter of fiscal 2017. The year-over-year revenue decline was mainly driven by the impact from the sale of the Company’s quality assurance business which occurred at the end of the fourth quarter of fiscal 2017. On a same-store basis, excluding the business sold of $14.10M, Corporate and Other revenue reduced $4.90M, or 25.2%, year-over-year, as a result of winding down of certain customer programs in the Company’s managed service business as well as normal fluctuations in call center activity.
Selling, administrative and other operating costs in the third quarter of fiscal 2018 reduced $4.70M, or 10.0%, to $42.20M from $46.90M in the third quarter of fiscal 2017. This decrease was mainly because of on-going cost reductions in all areas of the business, counting a $2.90M reduction in labor costs and a $1.20M reduction in share-based compensation expense, as well as costs from the formerly-owned quality assurance business of $2.30M. The third quarter of fiscal 2017 also included the release of a reserve related to the dissolution of the Employee Welfare Benefit Trust of $1.40M.
Net loss was $11.40M in the third quarter of fiscal 2018, up $5.90M contrast to a loss of $5.50M in the third quarter of fiscal 2017. Adjusted net loss, which is a Non-GAAP measure, was $8.80M in the third quarter of fiscal 2018, up $3.00M contrast to an adjusted net loss of $5.80M in the third quarter of fiscal 2017. For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.
Adjusted EBITDA, which is a Non-GAAP measure, was a loss of $5.00M in the fiscal 2018 third quarter, down $6.40M from income of $1.40M in the year ago period. Adjusted EBITDA excludes the impact of special items, interest expense, income taxes, 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.
As of August 31, 2018, the Company had $54.10M of global liquidity as contrast to $38.90M at September 1, 2017.
VISI has a market value of $55.28M while its EPS was booked as $0.45 in the last 12 months. The stock has 21.18M shares outstanding. In the profitability analysis, the company has gross profit margin of 14.80% while net profit margin was 0.80%. Beta value of the company was 0.81; beta is used to measure riskiness of the security.