Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 28, 2019 | Aug. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | VOLT INFORMATION SCIENCES, INC. | |
Entity Central Index Key | 0000103872 | |
Current Fiscal Year End Date | --11-03 | |
Entity Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 21,366,111 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
REVENUE: | ||||
NET REVENUE | $ 233,176 | $ 257,808 | $ 738,682 | $ 774,365 |
Cost of services | 197,528 | 221,448 | 629,078 | 664,695 |
GROSS MARGIN | 35,648 | 36,360 | 109,604 | 109,670 |
EXPENSES | ||||
Selling, administrative and other operating costs | 38,395 | 42,222 | 117,144 | 132,076 |
Restructuring and severance costs | 2,017 | 3,108 | 2,800 | 3,730 |
Impairment charges | 79 | 0 | 426 | 155 |
Operating income (loss) | (4,843) | (8,970) | (10,766) | (26,291) |
OTHER INCOME (EXPENSE), NET | ||||
Interest income (expense), net | (714) | (552) | (2,159) | (1,965) |
Foreign exchange gain (loss), net | (151) | (294) | (252) | (88) |
Other income (expense), net | (184) | (296) | (589) | (879) |
TOTAL OTHER INCOME (EXPENSE), NET | (1,049) | (1,142) | (3,000) | (2,932) |
LOSS BEFORE INCOME TAXES | (5,892) | (10,112) | (13,766) | (29,223) |
Income tax provision | 165 | 1,306 | 671 | 576 |
NET LOSS | $ (6,057) | $ (11,418) | $ (14,437) | $ (29,799) |
Basic: | ||||
Net loss (usd per share) | $ (0.29) | $ (0.54) | $ (0.68) | $ (1.42) |
Weighted average number of shares (shares) | 21,157 | 21,071 | 21,106 | 21,044 |
Diluted: | ||||
Net loss (usd per share) | $ (0.29) | $ (0.54) | $ (0.68) | $ (1.42) |
Weighted average number of shares (shares) | 21,157 | 21,071 | 21,106 | 21,044 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (6,057) | $ (11,418) | $ (14,437) | $ (29,799) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments net of taxes of $0 and $0, respectively | (565) | (921) | (586) | (464) |
COMPREHENSIVE LOSS | $ (6,622) | $ (12,339) | $ (15,023) | $ (30,263) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 28, 2019 | Oct. 28, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 36,031 | $ 24,763 |
Restricted cash and short-term investments | 11,000 | 14,844 |
Trade accounts receivable, net of allowances of $132 and $759, respectively | 135,838 | 157,445 |
Other current assets | 6,706 | 7,444 |
TOTAL CURRENT ASSETS | 189,575 | 204,496 |
Other assets, excluding current portion | 7,579 | 7,808 |
Property, equipment and software, net | 25,209 | 24,392 |
TOTAL ASSETS | 222,363 | 236,696 |
CURRENT LIABILITIES: | ||
Accrued compensation | 22,675 | 27,120 |
Accounts payable | 34,521 | 33,498 |
Accrued taxes other than income taxes | 13,854 | 15,275 |
Accrued insurance and other | 27,472 | 23,335 |
Income taxes payable | 692 | 1,097 |
TOTAL CURRENT LIABILITIES | 99,214 | 100,325 |
Accrued insurance and other, excluding current portion | 11,750 | 13,478 |
Deferred gain on sale of real estate, excluding current portion | 20,758 | 22,216 |
Income taxes payable, excluding current portion | 612 | 600 |
Deferred income taxes | 508 | 510 |
Long-term debt | 53,848 | 49,068 |
TOTAL LIABILITIES | 186,690 | 186,197 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none | 0 | 0 |
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 shares; Outstanding - 21,366,111 shares and 21,179,068 shares, respectively | 2,374 | 2,374 |
Paid-in capital | 77,283 | 79,057 |
(Accumulated deficit) retained earnings | (10,126) | 9,738 |
Accumulated other comprehensive loss | (7,656) | (7,070) |
Treasury stock, at cost; 2,371,892 and 2,558,935 shares, respectively | (26,202) | (33,600) |
TOTAL STOCKHOLDERS’ EQUITY | 35,673 | 50,499 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 222,363 | $ 236,696 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 28, 2019 | Oct. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 132 | $ 759 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (shares) | 500,000 | 500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (shares) | 23,738,003 | 23,738,003 |
Common stock, shares outstanding (shares) | 21,366,111 | 21,179,068 |
Treasury stock, shares (shares) | 2,371,892 | 2,558,935 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
BEGINNING BALANCE (shares) at Oct. 29, 2017 | 23,738,003 | |||||
BEGINNING BALANCE at Oct. 29, 2017 | $ 83,994 | $ 2,374 | $ 78,645 | $ 45,843 | $ (5,261) | $ (37,607) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (10,694) | (10,694) | ||||
Share-based compensation | 435 | 435 | ||||
Issuance of common stock | 0 | (10) | (40) | 50 | ||
Other comprehensive income (loss) | 1,404 | 1,404 | ||||
ENDING BALANCE (shares) at Jan. 28, 2018 | 23,738,003 | |||||
ENDING BALANCE at Jan. 28, 2018 | 75,139 | $ 2,374 | 79,070 | 35,109 | (3,857) | (37,557) |
BEGINNING BALANCE (shares) at Oct. 29, 2017 | 23,738,003 | |||||
BEGINNING BALANCE at Oct. 29, 2017 | 83,994 | $ 2,374 | 78,645 | 45,843 | (5,261) | (37,607) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (29,799) | |||||
ENDING BALANCE (shares) at Jul. 29, 2018 | 23,738,003 | |||||
ENDING BALANCE at Jul. 29, 2018 | 53,979 | $ 2,374 | 78,308 | 12,636 | (5,725) | (33,614) |
BEGINNING BALANCE (shares) at Jan. 28, 2018 | 23,738,003 | |||||
BEGINNING BALANCE at Jan. 28, 2018 | 75,139 | $ 2,374 | 79,070 | 35,109 | (3,857) | (37,557) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (7,687) | (7,687) | ||||
Share-based compensation | 557 | 557 | ||||
Issuance of common stock | (60) | (80) | (119) | 139 | ||
Other comprehensive income (loss) | (947) | (947) | ||||
ENDING BALANCE (shares) at Apr. 29, 2018 | 23,738,003 | |||||
ENDING BALANCE at Apr. 29, 2018 | 67,002 | $ 2,374 | 79,547 | 27,303 | (4,804) | (37,418) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (11,418) | (11,418) | ||||
Share-based compensation | (475) | (475) | ||||
Issuance of common stock | (209) | (764) | (3,249) | 3,804 | ||
Other comprehensive income (loss) | (921) | (921) | ||||
ENDING BALANCE (shares) at Jul. 29, 2018 | 23,738,003 | |||||
ENDING BALANCE at Jul. 29, 2018 | 53,979 | $ 2,374 | 78,308 | 12,636 | (5,725) | (33,614) |
BEGINNING BALANCE (shares) at Oct. 28, 2018 | 23,738,003 | |||||
BEGINNING BALANCE at Oct. 28, 2018 | 50,499 | $ 2,374 | 79,057 | 9,738 | (7,070) | (33,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (3,215) | (3,215) | ||||
Share-based compensation | (113) | (113) | ||||
Issuance of common stock | 0 | (35) | (206) | 241 | ||
Other comprehensive income (loss) | 158 | 158 | ||||
ENDING BALANCE (shares) at Jan. 27, 2019 | 23,738,003 | |||||
ENDING BALANCE at Jan. 27, 2019 | 47,755 | $ 2,374 | 78,909 | 6,743 | (6,912) | (33,359) |
BEGINNING BALANCE (shares) at Oct. 28, 2018 | 23,738,003 | |||||
BEGINNING BALANCE at Oct. 28, 2018 | 50,499 | $ 2,374 | 79,057 | 9,738 | (7,070) | (33,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (14,437) | |||||
ENDING BALANCE (shares) at Jul. 28, 2019 | 23,738,003 | |||||
ENDING BALANCE at Jul. 28, 2019 | 35,673 | $ 2,374 | 77,283 | (10,126) | (7,656) | (26,202) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of new accounting principle | 426 | |||||
Effect of new accounting principle | Accounting Standards Update 2014-09 | 426 | |||||
BEGINNING BALANCE (shares) at Jan. 27, 2019 | 23,738,003 | |||||
BEGINNING BALANCE at Jan. 27, 2019 | 47,755 | $ 2,374 | 78,909 | 6,743 | (6,912) | (33,359) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5,165) | (5,165) | ||||
Share-based compensation | (95) | (95) | ||||
Issuance of common stock | (40) | (883) | (2,234) | 3,077 | ||
Other comprehensive income (loss) | (179) | (179) | ||||
ENDING BALANCE (shares) at Apr. 28, 2019 | 23,738,003 | |||||
ENDING BALANCE at Apr. 28, 2019 | 42,276 | $ 2,374 | 77,931 | (656) | (7,091) | (30,282) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (6,057) | (6,057) | ||||
Share-based compensation | 294 | 294 | ||||
Issuance of common stock | (275) | (942) | (3,413) | 4,080 | ||
Other comprehensive income (loss) | (565) | (565) | ||||
ENDING BALANCE (shares) at Jul. 28, 2019 | 23,738,003 | |||||
ENDING BALANCE at Jul. 28, 2019 | $ 35,673 | $ 2,374 | $ 77,283 | $ (10,126) | $ (7,656) | $ (26,202) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Jul. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Jan. 28, 2018 |
Statement of Stockholders' Equity [Abstract] | |||||
Common stock, par value (usd per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 28, 2019 | Jul. 29, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (14,437) | $ (29,799) |
Adjustment to reconcile net loss to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,127 | 5,515 |
Release of doubtful accounts and sales allowances | (185) | (181) |
Unrealized foreign currency exchange (gain) loss | (133) | 194 |
Impairment charges | 426 | 155 |
Amortization of gain on sale leaseback of property | (1,458) | (1,458) |
Loss (gain) on dispositions of property, equipment and software | 13 | 0 |
Share-based compensation | 86 | 517 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | 22,624 | 21,218 |
Other assets | 895 | 3,956 |
Accounts payable | 1,104 | (8,330) |
Accrued expenses and other liabilities | (3,583) | (3,086) |
Income taxes | (318) | 1,274 |
Net cash provided by (used in) operating activities | 10,161 | (10,025) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of investments | 213 | 608 |
Purchases of investments | (178) | (375) |
Proceeds from sale of property, equipment, and software | 43 | 0 |
Purchases of property, equipment, and software | (6,305) | (2,332) |
Net cash used in investing activities | (6,227) | (2,099) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of borrowings | (20,000) | (119,696) |
Draw-down on borrowings | 25,000 | 119,696 |
Debt issuance costs | (621) | (1,415) |
Withholding tax payment on vesting of stock awards | (316) | (269) |
Net cash provided by (used in) financing activities | 4,063 | (1,684) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (633) | (817) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,364 | (14,625) |
Cash, cash equivalents and restricted cash, beginning of period | 36,544 | 54,097 |
Cash, cash equivalents and restricted cash, end of period | 43,908 | 39,472 |
Cash paid during the period: | ||
Interest | 2,367 | 2,084 |
Income taxes | 1,174 | 2,483 |
Current assets: | ||
Cash and cash equivalents | 36,031 | 29,929 |
Restricted cash included in Restricted cash and short-term investments | $ 7,877 | $ 9,543 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended October 28, 2018. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, is based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended October 28, 2018. Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Jul. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements New Accounting Standards Not Yet Adopted by the Company In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of Accounting Standards Codification (“ASC”) 820. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of ASU 2018-13. ASU 2018-13 is effective for the Company in the first quarter of fiscal 2021. The Company does not anticipate a significant impact upon adoption. In June 2018, the FASB issued ASU 2018-07, C ompensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in Topic 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, which for the Company will be the first quarter of fiscal 2020. The Company does not anticipate a significant impact upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. In April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, was issued to clarify and address certain items related to the amendments in ASU 2016-13. In May 2019, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , was issued to provide entities that have certain instruments within the scope of ASC 326 with an option to irrevocably elect the fair value option under ASC 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments. The amendments are effective for fiscal years beginning after December 15, 2019, which for the Company will be the first quarter of fiscal 2021. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the Company does not anticipate a significant impact on its consolidated financial statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The amendments are effective for fiscal years beginning after December 15, 2018, which for the Company will be the first quarter of fiscal 2020. The Company has preliminarily evaluated the impact of the pending adoption of ASU 2016-02 on its consolidated financial statements on a modified retrospective basis, and currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will increase the Company’s total assets and total liabilities that the Company reports relative to such amounts prior to adoption. In addition, the Company’s deferred gain on the sale of real estate in the amount of $22.0 million will be recognized as a cumulative-effect adjustment to equity upon adoption. This gain is currently being amortized at approximately $0.5 million a quarter as an offset to rent expense in the Condensed Consolidated Statements of Operations and is included as an adjustment to reconcile net loss to cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures. Recently Adopted by the Company In August 2018, the FASB issued ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period. The amendments in ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted this standard on a prospective basis in the second quarter of fiscal 2019. Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets. This ASU clarifies the scope and application of Subtopic 610-20 on the sale or transfer of non-financial assets and in substance non-financial assets to non-customers, including partial sales. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows and requires the entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The Company adopted this ASU retrospectively in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements besides a change in the presentation of restricted cash on the Condensed Consolidated Statements of Cash Flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 606. This standard was adopted by the Company in the first quarter of fiscal 2019. Please refer to Note 3. Revenue Recognition for additional disclosures. All other ASUs that became effective for Volt in the first nine months of fiscal 2019 were not applicable to the Company at this time and therefore, did not have any impact during the period. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jul. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Adoption of ASU 2014-09, Revenue from Contracts with Customers (“Topic 606”) As of October 29, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers , using the modified retrospective method applied to those contracts which were not completed as of October 29, 2018. Results for reporting periods beginning on October 29, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting guidance. The cumulative impact of adopting ASC 606 resulted in an increase of $0.4 million to opening retained earnings. The impact is primarily driven by an adjustment to deferred revenue due to a change in the required criteria for defining customer contracts under the new guidance. As of and for the three and nine months ended July 28, 2019, the consolidated financial statements were not materially impacted by the implementation of ASC 606. Revenue Recognition All of the Company’s revenue and trade receivables are generated from contracts with customers. Revenue is recognized when control of the promised services is transferred to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company's revenue is recorded net of any sales or other similar taxes collected from its customers. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The majority of the Company's contracts contain single performance obligations. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Volt generally determines the standalone selling prices based on the prices included in the customer contracts. The price as specified in its customer contracts is typically considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. The Company's estimated amounts of variable consideration are not material and it does not believe that there will be significant changes to its estimates. In certain scenarios where a third-party vendor is involved in the Company's revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. The Company generally demonstrates control over the service when it is responsible for the fulfillment of services under the contract, responsible for the workers performing the service and when it has latitude in establishing pricing. Volt generally acts as an agent in its transactions within its MSP programs where the Company provides comprehensive management of its customer’s contingent workforce and receive fees based on the volume of services managed within each program. The Company is the agent in these transactions since it does not have the responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In these transactions, the Company does not control the third-party providers’ staffing services provided to the customers prior to those services being transferred to the customer. Revenue Service Types Staffing Services Volt’s primary service is providing contingent (temporary) workers to its customers. These services are primarily provided through direct agreements with customers, and Volt provides these services using its employees and, in some cases, by subcontracting with other vendors of contingent workers. Volt’s costs in providing these services consist of the wages and benefits provided to the contingent workers as well as the recruiting costs, payroll department costs and other administrative costs. The Company recognizes revenue for its contingent staffing services over time as services are performed in an amount that reflects the consideration it expects to be entitled to in exchange for its services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The customer simultaneously receives and consumes the benefits of the services as they are provided. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Direct Placement Services Direct placement services include providing qualified candidates to the Company's customers to hire on a permanent basis. These services are primarily recognized at a point in time when the qualified candidate is placed and begins permanent employment which is the point when control has transferred to the customer and the Company has the right to payment for the service. Each placement is a single performance obligation under the Company’s contracts and the related consideration is typically based upon a percentage of the candidates' base salary. Direct placement revenue is recognized net of a reserve for permanent placement candidates that do not remain with the customer through the contingency period, which is typically 60 days or less. This contingency is estimated based on historical data and recorded as a refund liability. Managed Service Programs ("MSP") The Company's MSP programs provide comprehensive solutions for delivery of contingent labor for assignment to customers, including supplier and worker sourcing, selecting, qualifying, on/off-boarding, time and expense recordation, reporting and approved invoicing and payment processing procedures. Since the individual activities are not distinct, the Company accounts for these activities as a single performance obligation. The Company’s fee for these MSP services is a fixed percentage of the staffing services spend that is managed through the program. The Company recognizes revenue over time for each month of MSP services provided as the customer simultaneously receives and consumes the services it provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Call Center Services The customer care solutions business specializes in serving as an extension of its customers' relationships and processes, from help desk inquiries to advanced technical support. The Company earns a fee based upon the type, volume and level of services provided as part of the call center operations. Since the individual activities are not distinct, the Company accounts for them as a single performance obligation. The Company recognizes revenue over time as the customer simultaneously receives and consumes the services it provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Disaggregation of Revenues The following table presents our segment revenues disaggregated by service type (in thousands): Three Months Ended July 28, 2019 Segment Total North American Staffing International Staffing North American MSP Corporate and Other Eliminations Service Revenues: Staffing Services $ 223,754 $ 191,575 $ 26,704 $ 5,664 $ 194 $ (383 ) Direct Placement Services 3,679 2,066 1,137 697 — (221 ) Managed Service Programs 4,081 — 887 3,194 — — Call Center Services 1,662 — — — 1,662 — $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Geographical Markets: Domestic $ 203,266 $ 192,704 $ — $ 9,478 $ 1,662 $ (578 ) International, principally Europe 29,910 937 28,728 77 194 (26 ) $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Nine Months Ended July 28, 2019 Segment Total North American Staffing International Staffing North American MSP Corporate and Other Eliminations Service Revenues: Staffing Services $ 701,893 $ 607,980 $ 78,290 $ 16,049 $ 540 $ (966 ) Direct Placement Services 10,633 6,380 3,179 2,073 — (999 ) Managed Service Programs 11,563 — 2,334 9,229 — — Call Center Services 14,593 — — — 14,593 — $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) Geographical Markets: Domestic $ 651,566 $ 611,861 $ — $ 27,009 $ 14,593 $ (1,897 ) International, principally Europe 87,116 2,499 83,803 342 540 (68 ) $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) Payment Terms Customer payment terms vary by arrangement although payments are typically due within 15 - 45 days of invoicing. The timing between the satisfaction of the performance obligations and the payment is not significant and the Company currently does not have any significant financing components or significant payment terms. Unsatisfied Performance Obligations The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which they will recognize revenue at the amount to which it has the right to invoice for services performed. Unsatisfied performance obligations for contracts not meeting the aforementioned criteria are immaterial. Accounts Receivable, Contract Assets and Contract Liabilities The Company records accounts receivable when its right to consideration becomes unconditional. As required under Topic 606, the Company changed its presentation to show this allowance as a liability, whereas under Topic 605, these accounts receivables were recorded net of an allowance. As of July 28, 2019, April 28, 2019, and January 27, 2019, the reserve balance was $0.4 million , $0.4 million , and $0.7 million respectively. Contract assets primarily relate to the Company's rights to consideration for services provided that are conditional on satisfaction of future performance obligations. The Company records contract liabilities when payments are made or due prior to the related performance obligations being satisfied. The current portion of contract liabilities is included in Accrued insurance and other in our Consolidated Balance Sheets. The Company does not have any material contract assets or long-term contract liabilities as of July 28, 2019 and October 28, 2018. The Company may incur fulfillment costs after obtaining a contract to generate a resource that will be used to provide the MSP services. These costs are related to the set up and implementation of customer specific MSP programs and are considered incremental and recoverable costs to fulfill the Company's contract with the customer. These costs are deferred and amortized over the expected period of benefit of the MSP services provided to the customer, determined by taking into consideration its customer contracts and other relevant factors. Amortization expense is included in Selling, administrative and other operating costs on the Consolidated Statements of Operations. Deferred fulfillment costs were immaterial as of July 28, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jul. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss for the three and nine months ended July 28, 2019 were (in thousands): Three Months Ended Nine Months Ended July 28, 2019 Foreign Currency Translation Accumulated other comprehensive loss at beginning of the period $ (7,091 ) $ (7,070 ) Other comprehensive loss (565 ) (586 ) Accumulated other comprehensive loss at July 28, 2019 $ (7,656 ) $ (7,656 ) There were no reclassifications from accumulated other comprehensive loss for the three and nine months ended July 28, 2019 and July 29, 2018. |
Restricted Cash and Short-Term
Restricted Cash and Short-Term Investments | 9 Months Ended |
Jul. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Short-Term Investments | Restricted Cash and Short-Term Investments Restricted cash primarily includes amounts related to requirements under certain contracts with managed service program customers, for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral. Distribution of payments to associate vendors is generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts, where contractually required. At July 28, 2019 and October 28, 2018, restricted cash included $7.4 million and $11.3 million , respectively, restricted for payment to associate vendors, and $0.5 million in both periods, respectively, restricted for other collateral accounts. Short-term investments were $3.1 million at both July 28, 2019 and October 28, 2018. These short-term investments consisted primarily of the fair value of deferred compensation investments corresponding to employees’ selections, primarily in mutual funds, based on quoted prices in active markets. |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision reflects the geographic mix of earnings in various federal, state and foreign tax jurisdictions and their applicable rates resulting in a composite effective tax rate. The Company’s cumulative results for substantially all United States ("U.S.") and certain non-U.S. jurisdictions for the most recent three-year period is a loss. Accordingly, a valuation allowance has been established for substantially all loss carryforwards and other net deferred tax assets for these jurisdictions, resulting in an effective tax rate that is significantly different than the statutory rate. The Company adjusts its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate, consistent with ASC 270, Interim Reporting , and ASC 740-270, Income Taxes – Intra Period Tax Allocation . Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. The Company’s future effective tax rates could be affected by earnings being different than anticipated in countries with differing statutory rates, increases in recorded valuation allowances of tax assets, or changes in tax laws. The Company’s provision (benefit) for income taxes primarily includes foreign jurisdictions and state taxes. The income tax provision in the third quarter of fiscal 2019 and 2018 of $0.2 million and $1.3 million , respectively, were primarily related to locations outside of the United States. For the nine months ended July 28, 2019 and July 29, 2018, the income tax provision of $0.7 million and $0.6 million , respectively, were primarily related to locations outside of the United States. In addition, the income tax provision in the first nine months ended July 29, 2018 included the reversal of reserves on uncertain tax provisions that expired. The Company’s quarterly provision (benefit) for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented. On December 22, 2017, the U.S. President signed the Tax Cuts and Jobs Act (“Tax Act”) into law. The Tax Act includes a number of provisions, including the lowering of the U.S. corporate tax rate from 35.0% to 21.0% , and the establishment of a territorial-style system for taxing foreign-source income of domestic multinational corporations. The Tax Act reduced the U.S. statutory tax rate from 35.0% to 21.0% effective January 1, 2018. U.S. tax law required that taxpayers with a fiscal year that begins before and ends after the effective date of a rate change calculate a blended tax rate based on the pro-rata number of days in the fiscal year before and after the effective date. As a result, for the fiscal year ending October 28, 2018, the Company’s statutory income tax rate was 23.4% . The Company's statutory rate is 21.0% for the fiscal year ended November 3, 2019. Other provisions now effective under the Tax Act include limitations on deductibility of executive compensation and interest, as well as a new minimum tax on Global Intangible Low-Taxed Income (“GILTI”). The Company has analyzed these provisions and there will be no material impact due to the Company's net operating loss carry-forward and valuation allowance. The Company did not record any change to its U.S. net deferred tax balances as of the enactment date since its U.S. net deferred tax assets are fully offset by a full valuation allowance. The Company reduced its net deferred tax assets and corresponding valuation allowance by approximately $26.8 million for the fiscal year ended October 28, 2018. Under the Tax Act, the Company may be subject to a transition tax on the untaxed foreign earnings of its foreign subsidiaries by deeming those earnings to be repatriated (“Transition Tax”). Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5% rate and the remaining earnings are taxed at an 8.0% rate. In calculating the Transition Tax, the Company must calculate the cumulative earnings and profits of each of the non-U.S. subsidiaries back to 1987. The Transition Tax did not have a material impact on the Company. |
Debt
Debt | 9 Months Ended |
Jul. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s primary sources of liquidity are cash flows from operations and proceeds from its financing arrangements. Both operating cash flows and borrowing capacity under the Company’s financing arrangements are directly related to the levels of accounts receivable generated by its businesses. The Company’s operating cash flows consist primarily of collections of customer receivables offset by payments for payroll and related items for the Company’s contingent staff and in-house employees; federal, foreign, state and local taxes; and trade payables. The Company’s level of borrowing capacity under its financing arrangements increases or decreases in tandem with any change in accounts receivable based on revenue fluctuations. The Company manages its cash flow and related liquidity on a global basis. The weekly payroll payments inclusive of employment-related taxes and payments to vendors are approximately $20.0 million . The Company generally targets minimum global liquidity to be approximately 1.5 times its average weekly requirements. The Company also maintains minimum effective cash balances in foreign operations and uses a multi-currency netting and overdraft facility for its European entities to further minimize overseas cash requirements. On July 19, 2019, the Company amended and restated its long-term $115.0 million accounts receivable securitization program (“DZ Financing Program”) with DZ Bank AG Deutsche Zentral Genossenschafsbank (“DZ Bank”), which was originally executed on January 25, 2018. The restated agreement allows for the inclusion of certain accounts receivable from originators in the United Kingdom, which adds an additional $5.0 - $7.0 million in borrowing availability. All other material terms and conditions of the original agreement remain substantially unchanged. The DZ Financing Program is fully collateralized by certain receivables of the Company that are sold to a wholly-owned, consolidated, bankruptcy-remote subsidiary. To finance the purchase of such receivables, that subsidiary may request that DZ Bank make loans from time-to-time to that subsidiary which are secured by liens on those receivables. On June 4, 2019, the Company entered into an amendment with DZ Bank to temporarily exclude the receivables due from a specific customer from the securitization pool under our DZ Financing Program for three subsequent reporting periods as of May 2019 through July 2019. This customer experienced internal processing issues related to specific Volt purchase orders resulting in significant payment delays, which negatively impacted the 90 -Day Delinquency Rate, as defined in the DZ Financing Program. Although this change improved the delinquency rate, it temporarily decreased the Company's borrowing availability under the DZ Financing Program by approximately $2.0 - $3.0 million . These payment delays were not credit related and the Company collected a significant portion of the past due amounts in late June 2019. The issue was resolved and the receivables from this customer were added back to the securitization pool under the original terms of the agreement, as permitted under a provision in the amendment. Loan advances may be made under the DZ Financing Program through January 25, 2021 and all loans will mature no later than July 25, 2021. Loans will accrue interest (i) with respect to loans that are funded through the issuance of commercial paper notes, at the commercial paper (“CP”) rate, and (ii) otherwise, at a rate per annum equal to adjusted LIBOR. The CP rate will be based on the rates paid by the applicable lender on notes it issues to fund related loans. Adjusted LIBOR is based on LIBOR for the applicable interest period and the rate prescribed by the Board of Governors of the Federal Reserve System for determining the reserve requirements with respect to Eurocurrency funding. If an event of default occurs, all loans shall bear interest at a rate per annum equal to the prime rate (the federal funds rate plus 3% ) plus 2.5% . The DZ Financing Program also includes a letter of credit sub-facility with a sub-limit of $35.0 million . As of July 28, 2019, the letter of credit participation was $24.2 million inclusive of $22.8 million for the Company’s casualty insurance program, $1.2 million for the security deposit required under certain real estate lease agreements and $0.2 million for the Company's corporate credit card program. In the first quarter of fiscal 2018, the Company used $30.0 million of funds available under the DZ Financing Program to temporarily collateralize the letters of credit, until the letters of credit were established with DZ Bank on January 31, 2018. The DZ Financing Program contains customary representations and warranties as well as affirmative and negative covenants, with such covenants being less restrictive than those under the PNC Financing Program. The agreement also contains customary default, indemnification and termination provisions. The DZ Financing Program is not an off-balance sheet arrangement, as the bankruptcy-remote subsidiary is a 100%-owned consolidated subsidiary of the Company. The Company is subject to certain financial and portfolio performance covenants under the DZ Financing Program, including (1) a minimum Tangible Net Worth (as defined under the DZ Financing Program) of at least $30.0 million through fiscal 2019, which will increase to $40.0 million in fiscal 2020; (2) positive net income in any fiscal year ending after 2019; (3) maximum debt to tangible net worth ratio of 3 :1; and (4) a minimum of $15.0 million in liquid assets (as defined under the DZ Financing Program). At July 28, 2019, the Company was in compliance with all debt covenants. At July 28, 2019, there was $16.4 million of borrowing availability, as defined under the DZ Financing Program. The Company had entered into the original agreement with DZ Bank when it exited its financing relationship with PNC Bank (“PNC Financing Program”). The Company used funds made available by the DZ Financing Program to repay all amounts outstanding under the PNC Financing Program, which terminated in accordance with its terms. The Company uses the availability from the DZ Financing Program from time-to-time for working capital and other general corporate purposes. At July 28, 2019, the Company had outstanding borrowings under the DZ Financing Program of $55.0 million with a weighted average annual interest rate of 4.2% during both the third quarter and the first nine months of fiscal 2019. At July 29, 2018, the Company had outstanding borrowings under the DZ Financing program of $50.0 million , with a weighted average annual rate of 3.6% during the third quarter of fiscal 2018 and 3.5% in the first nine months of fiscal 2018. Long-term debt consists of the following (in thousands): July 28, 2019 October 28, 2018 Financing programs $ 55,000 $ 50,000 Less: Deferred financing fees 1,152 932 Total long-term debt, net $ 53,848 $ 49,068 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Jul. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended July 28, 2019 July 29, 2018 July 28, 2019 July 29, 2018 Numerator Net loss $ (6,057 ) $ (11,418 ) $ (14,437 ) $ (29,799 ) Denominator Basic weighted average number of shares 21,157 21,071 21,106 21,044 Diluted weighted average number of shares 21,157 21,071 21,106 21,044 Net loss per share: Basic $ (0.29 ) $ (0.54 ) $ (0.68 ) $ (1.42 ) Diluted $ (0.29 ) $ (0.54 ) $ (0.68 ) $ (1.42 ) Options to purchase 636,664 and 1,608,492 shares of the Company’s common stock were outstanding at July 28, 2019 and July 29, 2018, respectively. Additionally, there were 632,240 unvested restricted units and 466,929 outstanding at July 28, 2019 and July 29, 2018, respectively, and 355,318 and 276,396 unvested performance share units outstanding at July 28, 2019 and July 29, 2018, respectively. These awards were not included in the computation of diluted loss per share in fiscal 2019 and 2018 because the effect of their inclusion would have been anti-dilutive as a result of the Company’s net loss position in those periods. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 9 Months Ended |
Jul. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans For the three and nine months ended July 28, 2019, the Company recognized share-based compensation expense of $0.6 million and $1.3 million , resp ectively. For the three and nine months ended July 29, 2018, the Company recognized share-based compensation expense of $(0.3) million and $0.7 million , respectively. These expenses are included in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations. 2019 Equity Incentive Plan On May 1, 2019, the stockholders of the Company approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan permits the granting of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units, (5) performance awards, and (6) other awards valued in whole or in part by reference to or otherwise based on our common stock (as defined in the 2019 Plan, “other stock-based awards”). Subject to adjustment as provided in the 2019 Plan, up to an aggregate of 2,500,000 shares of the Company’s common stock will be available for awards under the 2019 Plan, plus any shares granted under the Company’s 2015 Equity Incentive Plan that become available for awards under such plan. Equity Awards During the third quarter of fiscal 2019, the Company granted long-term incentive awards in the aggregate of 237,325 performance stock units (“PSUs”) to executive management and 338,710 restricted stock units (“RSUs”) to certain employees including executive management. Additionally, an annual equity grant totaling 86,405 RSUs was made to the Board of Directors of the Company (“Board of Directors”). The PSUs are eligible to vest in three equal tranches at the end of each performance period. Vesting of the PSUs is dependent on the achievement of the adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) margin percentage goals based on adjusted revenues at the end of each fiscal year end of the one -year, two -year and three -year performance periods and provided that the employees remain employed with the Company on each of those vesting dates. The payout percentages can range from 0% to 150% . The RSUs for the employees vest in equal annual tranches over three years , provided the employees remain employed with the Company on each of those vesting dates. The RSUs for the Board of Directors vest in one year from the grant date provided that the director provides continued service through the vesting date. The grant date fair value for the PSUs and RSUs is measured using the closing stock price on the grant date. The total fair value of the PSUs and RSUs granted during the third quarter of fiscal 2019 was approximately $1.0 million and $1.9 million , respectively. For stock options granted in the prior fiscal years, the fair value of the option grants was estimated using the Black-Scholes option-pricing model. For RSUs granted in the prior fiscal years that are classified as equity awards, the grant date fair value is measured using the closing stock price on the grant date. These awards vest in equal annual tranches over three years , provided the employees remain employed with the Company on each of those vesting dates. Liability Awards During fiscal 2018, the Company granted PSUs and RSUs that are classified as a liability at fair value, which is computed using a Monte Carlo simulation and re-measured periodically based on the effect that the market condition has on these awards. The liability and corresponding expense is adjusted accordingly until the awards are settled. As of the third quarter ended July 28, 2019, the total fair value of the remaining PSUs and RSUs was approximately $0.6 million and $0.9 million , respectively. Vesting of the PSUs is dependent on the achievement of target stock prices at the end of each of the one -year, two -year and three -year performance periods. The ending stock price is the average price of the last 20 trading days prior to and including the final day of each performance period. The payout percentages can range from 0% to 200% . The RSUs vest in equal annual tranches over three years , provided the employees remain employed with the Company on each of those vesting dates. Upon vesting, the PSUs and RSUs may be settled in either cash or stock at the Company’s election, with any stock settlement being subject to the Company having a sufficient number of shares then available under its equity incentive plan to satisfy such awards. Any awards settled in cash will be capped at two times the Company’s closing stock price on the grant date, multiplied by the number of awards vesting. During the third quarter of fiscal 2019, the first tranches of the PSUs and RSUs that vested were settled in stock. In fiscal 2017, the Company granted phantom units in the form of cash-settled RSUs to certain senior management level employees. The total fair value at the grant date was approximately $0.3 million with a weighted average fair value per unit of $4.35 . The units vest in equal annual tranches over three years , provided the employees remain employed on each of those vesting dates. These awards are classified as a liability and re-measured at the end of each reporting period based on the change in fair value of one share of the Company’s common stock. As of the third quarter ended July 28, 2019, the total fair value was less than $0.1 million and 6,012 phantom units were outstanding. Summary of Equity and Liability Awards The following tables summarize the activities related to the Company’s share-based equity and liability awards for the nine months ended July 28, 2019: Performance Share Units Number of Weighted Average Shares Grant Date Fair Value Outstanding at October 28, 2018 276,396 $3.38 Granted (a) 275,591 $4.25 Forfeited (99,407 ) $3.38 Vested (97,262 ) $3.82 Outstanding at July 28, 2019 355,318 $4.01 (a) Includes the incremental issuance of shares related to the Fiscal 2018 PSU grant. Restricted Stock Units Number of Weighted Average Shares Grant Date Fair Value Outstanding at October 28, 2018 582,831 $3.53 Granted 425,115 $4.32 Forfeited (146,938 ) $3.66 Vested (157,321 ) $3.56 Deferred 21,368 $3.20 Outstanding at July 28, 2019 725,055 $3.97 Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at October 28, 2018 1,600,040 $5.25 7.27 $— Exercised (200,000 ) $4.35 — — Forfeited (302,792 ) $5.54 — — Expired (460,584 ) $5.36 — — Outstanding at July 28, 2019 636,664 $6.18 7.12 $108 As of July 28, 2019, total unrecognized compensation expense of $3.5 million related to PSUs, stock options, RSUs and phantom units will be recognized over the remaining weighted average vesting period of 2.2 years , of which $0.6 million , $2.0 million , $0.7 million and $0.2 million are expected to be recognized in fiscal 2019, 2020, 2021 and 2022, respectively. |
Restructuring and Severance Cha
Restructuring and Severance Charges | 9 Months Ended |
Jul. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Severance Charges | Restructuring and Severance Charges The Company incurred total restructuring and severance costs of $2.0 million and $3.1 million in the third quarter of fiscal 2019 and 2018, respectively, and $2.8 million and $3.7 million for the nine months ended July 28, 2019 and July 29, 2018, respectively. 2018 Restructuring Plan On October 16, 2018, the Company approved a restructuring plan (the “2018 Plan”) based on an organizational and process redesign intended to optimize the Company’s strategic growth initiatives and overall business performance. In connection with the 2018 Plan, the Company incurred restructuring charges comprised of severance and benefit costs and facility and lease termination costs. The 2018 Plan is expected to be completed by the Company's fiscal year end on November 3, 2019. The Company incurred restructuring and severance costs of $0.5 million for the third quarter 2019. The total costs since inception through the third quarter of fiscal 2019 are approximately $5.3 million , consisting of $1.1 million in North American Staffing, $0.4 million in International Staffing and $3.8 million in Corporate and Other. As of July 28, 2019, the Company anticipates payments of $0.9 million and $0.6 million will be made in fiscal 2019 and 2020, respectively. The remaining $1.3 million related to facility and lease termination costs will be paid through December 2025. Change in Executive Management Effective June 6, 2018, Michael Dean departed from his role as President and Chief Executive Officer of the Company and is no longer a member of the Board of Directors. The Company and Mr. Dean subsequently executed a separation agreement, effective June 29, 2018 (the "Dean Separation Agreement"). The Company incurred related severance costs of $2.6 million in the third quarter of fiscal 2018, which is payable over a period of 24 months . Exit of Customer Care Solutions Business In the third quarter of fiscal 2019, the Company exited its customer care solutions business, which is currently reported as a part of the Corporate and Other category. This exit will enable the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. As a result of this exit, the Company incurred restructuring and severance costs of $1.4 million and $1.7 million during the third quarter and the first nine months of fiscal 2019, respectively. Other Restructuring Costs During fiscal 2019 and 2018, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and achieve operational efficiency. The Company recorded severance costs of $0.1 million and $0.5 million in the third quarter of fiscal 2019 and 2018, respectively, primarily resulting from the elimination of certain positions. Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the first nine months of fiscal 2019 is summarized as follows (in thousands): July 28, 2019 Balance, beginning of year $ 5,702 Charged to expense 2,800 Cash payments (4,326 ) Ending Balance $ 4,176 The remaining balance at July 28, 2019 of $4.2 million , primarily related to Corporate and Other, includes $2.3 million related to the cost reduction plan implemented in fiscal 2018, $1.1 million related to the change in executive management and $0.8 million related to the exit of the customer care solutions business. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Legal Proceedings The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company’s loss contingencies not discussed elsewhere consist primarily of claims and legal actions arising in the normal course of business related to contingent worker employment matters in the staffing services segments. These matters are at varying stages of investigation, arbitration or adjudication. The Company has accrued for losses on individual matters that are both probable and reasonably estimable. Estimates are based on currently available information and assumptions. Significant judgment is required in both the determination of probability and the determination of whether a matter is reasonably estimable. The Company’s estimates may change and actual expenses could differ in the future as additional information becomes available. (b) Other Matters As previously disclosed in the Annual Report on Form 10-K for the year ended October 28, 2018, certain qualification failures related to nondiscrimination testing for the Company’s 401(k) plans consisting of the (1) Volt Technical Services Savings Plan and the (2) Volt Information Sciences, Inc. Savings Plan occurred during plan years prior to 2016. The Company has obtained the approval from the Internal Revenue Service regarding the method for curing the failures and made a contribution of $0.8 million in early fourth quarter of 2019. |
Segment Data
Segment Data | 9 Months Ended |
Jul. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data We report our segment information in accordance with the provisions of ASC 280, Segment Reporting . During the fourth quarter of fiscal 2018, in accordance with ASC 280, the Company determined that its North American Managed Service Program (“MSP”) met the criteria to be presented as a reportable segment. To provide period over period comparability, the Company has recast the prior period North American MSP segment data to conform to the current presentation in the prior period. This change did not have any impact on the consolidated financial results for any period presented. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) North American MSP. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other. In the third quarter of fiscal 2019, the Company exited its customer care solutions business, which is currently reported as a part of the Corporate and Other category. This exit will enable the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. The Company’s other non-reportable businesses will continue to be combined and disclosed with corporate services under the category Corporate and Other. Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, restructuring and severance costs, and impairment charges. The Company allocates to the segments all operating costs except for costs not directly related to the operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and are not used by management to measure segment performance. Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands): Three Months Ended July 28, 2019 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Cost of services 197,528 164,809 24,181 7,053 2,089 (604 ) Gross margin 35,648 28,832 4,547 2,502 (233 ) — Selling, administrative and other operating costs 38,395 24,346 4,023 1,382 8,644 — Restructuring and severance costs 2,017 121 182 — 1,714 — Impairment charge 79 — — — 79 — Operating income (loss) (4,843 ) 4,365 342 1,120 (10,670 ) — Other income (expense), net (1,049 ) Income tax provision 165 Net loss $ (6,057 ) Three Months Ended July 29, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 257,808 $ 215,679 $ 28,579 $ 6,959 $ 7,456 $ (865 ) Cost of services 221,448 184,724 23,917 5,400 8,272 (865 ) Gross margin 36,360 30,955 4,662 1,559 (816 ) — Selling, administrative and other operating costs 42,222 27,971 3,944 1,414 8,893 — Restructuring and severance costs 3,108 23 41 38 3,006 — Operating income (loss) (8,970 ) 2,961 677 107 (12,715 ) — Other income (expense), net (1,142 ) Income tax provision 1,306 Net loss $ (11,418 ) Nine Months Ended July 28, 2019 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) Cost of services 629,078 526,172 70,414 20,157 14,300 (1,965 ) Gross margin 109,604 88,188 13,389 7,194 833 — Selling, administrative and other operating costs 117,144 77,063 11,659 3,941 24,481 — Restructuring and severance costs 2,800 329 456 68 1,947 — Impairment charge 426 — — — 426 — Operating income (loss) (10,766 ) 10,796 1,274 3,185 (26,021 ) — Other income (expense), net (3,000 ) Income tax provision 671 Net loss $ (14,437 ) Nine Months Ended July 29, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 774,365 $ 640,004 $ 90,062 $ 21,778 $ 25,520 $ (2,999 ) Cost of services 664,695 551,011 76,094 16,659 23,930 (2,999 ) Gross margin 109,670 88,993 13,968 5,119 1,590 — Selling, administrative and other operating costs 132,076 85,055 12,231 4,213 30,577 — Restructuring and severance costs 3,730 32 340 117 3,241 — Impairment charge 155 — — — 155 — Operating income (loss) (26,291 ) 3,906 1,397 789 (32,383 ) — Other income (expense), net (2,932 ) Income tax provision 576 Net loss $ (29,799 ) (1) Revenues are primarily derived from Volt Customer Care Solutions through June 7, 2019. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jul. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 12, 2019, Paul Tomkins stepped down from his role as Senior Vice President and Chief Financial Officer of the Company effective August 23, 2019. In connection with Mr. Tomkins’ departure, the Board of Directors appointed Herbert M. Mueller as Senior Vice President and Chief Financial Officer of the Company, effective August 24, 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended October 28, 2018. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, is based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended October 28, 2018. Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements New Accounting Standards Not Yet Adopted by the Company In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of Accounting Standards Codification (“ASC”) 820. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of ASU 2018-13. ASU 2018-13 is effective for the Company in the first quarter of fiscal 2021. The Company does not anticipate a significant impact upon adoption. In June 2018, the FASB issued ASU 2018-07, C ompensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in Topic 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, which for the Company will be the first quarter of fiscal 2020. The Company does not anticipate a significant impact upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. In April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, was issued to clarify and address certain items related to the amendments in ASU 2016-13. In May 2019, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , was issued to provide entities that have certain instruments within the scope of ASC 326 with an option to irrevocably elect the fair value option under ASC 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments. The amendments are effective for fiscal years beginning after December 15, 2019, which for the Company will be the first quarter of fiscal 2021. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the Company does not anticipate a significant impact on its consolidated financial statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The amendments are effective for fiscal years beginning after December 15, 2018, which for the Company will be the first quarter of fiscal 2020. The Company has preliminarily evaluated the impact of the pending adoption of ASU 2016-02 on its consolidated financial statements on a modified retrospective basis, and currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which will increase the Company’s total assets and total liabilities that the Company reports relative to such amounts prior to adoption. In addition, the Company’s deferred gain on the sale of real estate in the amount of $22.0 million will be recognized as a cumulative-effect adjustment to equity upon adoption. This gain is currently being amortized at approximately $0.5 million a quarter as an offset to rent expense in the Condensed Consolidated Statements of Operations and is included as an adjustment to reconcile net loss to cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures. Recently Adopted by the Company In August 2018, the FASB issued ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period. The amendments in ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted this standard on a prospective basis in the second quarter of fiscal 2019. Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets. This ASU clarifies the scope and application of Subtopic 610-20 on the sale or transfer of non-financial assets and in substance non-financial assets to non-customers, including partial sales. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows and requires the entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The Company adopted this ASU retrospectively in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements besides a change in the presentation of restricted cash on the Condensed Consolidated Statements of Cash Flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The Company adopted this ASU in the first quarter of fiscal 2019, resulting in no significant impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 606. This standard was adopted by the Company in the first quarter of fiscal 2019. Please refer to Note 3. Revenue Recognition for additional disclosures. All other ASUs that became effective for Volt in the first nine months of fiscal 2019 were not applicable to the Company at this time and therefore, did not have any impact during the period. |
Revenue Recognition | Revenue Recognition All of the Company’s revenue and trade receivables are generated from contracts with customers. Revenue is recognized when control of the promised services is transferred to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company's revenue is recorded net of any sales or other similar taxes collected from its customers. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The majority of the Company's contracts contain single performance obligations. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Volt generally determines the standalone selling prices based on the prices included in the customer contracts. The price as specified in its customer contracts is typically considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. The Company's estimated amounts of variable consideration are not material and it does not believe that there will be significant changes to its estimates. In certain scenarios where a third-party vendor is involved in the Company's revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. The Company generally demonstrates control over the service when it is responsible for the fulfillment of services under the contract, responsible for the workers performing the service and when it has latitude in establishing pricing. Volt generally acts as an agent in its transactions within its MSP programs where the Company provides comprehensive management of its customer’s contingent workforce and receive fees based on the volume of services managed within each program. The Company is the agent in these transactions since it does not have the responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In these transactions, the Company does not control the third-party providers’ staffing services provided to the customers prior to those services being transferred to the customer. Revenue Service Types Staffing Services Volt’s primary service is providing contingent (temporary) workers to its customers. These services are primarily provided through direct agreements with customers, and Volt provides these services using its employees and, in some cases, by subcontracting with other vendors of contingent workers. Volt’s costs in providing these services consist of the wages and benefits provided to the contingent workers as well as the recruiting costs, payroll department costs and other administrative costs. The Company recognizes revenue for its contingent staffing services over time as services are performed in an amount that reflects the consideration it expects to be entitled to in exchange for its services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The customer simultaneously receives and consumes the benefits of the services as they are provided. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Direct Placement Services Direct placement services include providing qualified candidates to the Company's customers to hire on a permanent basis. These services are primarily recognized at a point in time when the qualified candidate is placed and begins permanent employment which is the point when control has transferred to the customer and the Company has the right to payment for the service. Each placement is a single performance obligation under the Company’s contracts and the related consideration is typically based upon a percentage of the candidates' base salary. Direct placement revenue is recognized net of a reserve for permanent placement candidates that do not remain with the customer through the contingency period, which is typically 60 days or less. This contingency is estimated based on historical data and recorded as a refund liability. Managed Service Programs ("MSP") The Company's MSP programs provide comprehensive solutions for delivery of contingent labor for assignment to customers, including supplier and worker sourcing, selecting, qualifying, on/off-boarding, time and expense recordation, reporting and approved invoicing and payment processing procedures. Since the individual activities are not distinct, the Company accounts for these activities as a single performance obligation. The Company’s fee for these MSP services is a fixed percentage of the staffing services spend that is managed through the program. The Company recognizes revenue over time for each month of MSP services provided as the customer simultaneously receives and consumes the services it provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Call Center Services The customer care solutions business specializes in serving as an extension of its customers' relationships and processes, from help desk inquiries to advanced technical support. The Company earns a fee based upon the type, volume and level of services provided as part of the call center operations. Since the individual activities are not distinct, the Company accounts for them as a single performance obligation. The Company recognizes revenue over time as the customer simultaneously receives and consumes the services it provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Segment Revenues Disaggregated by Service Type | The following table presents our segment revenues disaggregated by service type (in thousands): Three Months Ended July 28, 2019 Segment Total North American Staffing International Staffing North American MSP Corporate and Other Eliminations Service Revenues: Staffing Services $ 223,754 $ 191,575 $ 26,704 $ 5,664 $ 194 $ (383 ) Direct Placement Services 3,679 2,066 1,137 697 — (221 ) Managed Service Programs 4,081 — 887 3,194 — — Call Center Services 1,662 — — — 1,662 — $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Geographical Markets: Domestic $ 203,266 $ 192,704 $ — $ 9,478 $ 1,662 $ (578 ) International, principally Europe 29,910 937 28,728 77 194 (26 ) $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Nine Months Ended July 28, 2019 Segment Total North American Staffing International Staffing North American MSP Corporate and Other Eliminations Service Revenues: Staffing Services $ 701,893 $ 607,980 $ 78,290 $ 16,049 $ 540 $ (966 ) Direct Placement Services 10,633 6,380 3,179 2,073 — (999 ) Managed Service Programs 11,563 — 2,334 9,229 — — Call Center Services 14,593 — — — 14,593 — $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) Geographical Markets: Domestic $ 651,566 $ 611,861 $ — $ 27,009 $ 14,593 $ (1,897 ) International, principally Europe 87,116 2,499 83,803 342 540 (68 ) $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss for the three and nine months ended July 28, 2019 were (in thousands): Three Months Ended Nine Months Ended July 28, 2019 Foreign Currency Translation Accumulated other comprehensive loss at beginning of the period $ (7,091 ) $ (7,070 ) Other comprehensive loss (565 ) (586 ) Accumulated other comprehensive loss at July 28, 2019 $ (7,656 ) $ (7,656 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (in thousands): July 28, 2019 October 28, 2018 Financing programs $ 55,000 $ 50,000 Less: Deferred financing fees 1,152 932 Total long-term debt, net $ 53,848 $ 49,068 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended July 28, 2019 July 29, 2018 July 28, 2019 July 29, 2018 Numerator Net loss $ (6,057 ) $ (11,418 ) $ (14,437 ) $ (29,799 ) Denominator Basic weighted average number of shares 21,157 21,071 21,106 21,044 Diluted weighted average number of shares 21,157 21,071 21,106 21,044 Net loss per share: Basic $ (0.29 ) $ (0.54 ) $ (0.68 ) $ (1.42 ) Diluted $ (0.29 ) $ (0.54 ) $ (0.68 ) $ (1.42 ) |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Award Activity | The following tables summarize the activities related to the Company’s share-based equity and liability awards for the nine months ended July 28, 2019: Performance Share Units Number of Weighted Average Shares Grant Date Fair Value Outstanding at October 28, 2018 276,396 $3.38 Granted (a) 275,591 $4.25 Forfeited (99,407 ) $3.38 Vested (97,262 ) $3.82 Outstanding at July 28, 2019 355,318 $4.01 (a) Includes the incremental issuance of shares related to the Fiscal 2018 PSU grant. Restricted Stock Units Number of Weighted Average Shares Grant Date Fair Value Outstanding at October 28, 2018 582,831 $3.53 Granted 425,115 $4.32 Forfeited (146,938 ) $3.66 Vested (157,321 ) $3.56 Deferred 21,368 $3.20 Outstanding at July 28, 2019 725,055 $3.97 Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at October 28, 2018 1,600,040 $5.25 7.27 $— Exercised (200,000 ) $4.35 — — Forfeited (302,792 ) $5.54 — — Expired (460,584 ) $5.36 — — Outstanding at July 28, 2019 636,664 $6.18 7.12 $108 |
Restructuring and Severance C_2
Restructuring and Severance Charges (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | Activity for the first nine months of fiscal 2019 is summarized as follows (in thousands): July 28, 2019 Balance, beginning of year $ 5,702 Charged to expense 2,800 Cash payments (4,326 ) Ending Balance $ 4,176 |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jul. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment | Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands): Three Months Ended July 28, 2019 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 233,176 $ 193,641 $ 28,728 $ 9,555 $ 1,856 $ (604 ) Cost of services 197,528 164,809 24,181 7,053 2,089 (604 ) Gross margin 35,648 28,832 4,547 2,502 (233 ) — Selling, administrative and other operating costs 38,395 24,346 4,023 1,382 8,644 — Restructuring and severance costs 2,017 121 182 — 1,714 — Impairment charge 79 — — — 79 — Operating income (loss) (4,843 ) 4,365 342 1,120 (10,670 ) — Other income (expense), net (1,049 ) Income tax provision 165 Net loss $ (6,057 ) Three Months Ended July 29, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 257,808 $ 215,679 $ 28,579 $ 6,959 $ 7,456 $ (865 ) Cost of services 221,448 184,724 23,917 5,400 8,272 (865 ) Gross margin 36,360 30,955 4,662 1,559 (816 ) — Selling, administrative and other operating costs 42,222 27,971 3,944 1,414 8,893 — Restructuring and severance costs 3,108 23 41 38 3,006 — Operating income (loss) (8,970 ) 2,961 677 107 (12,715 ) — Other income (expense), net (1,142 ) Income tax provision 1,306 Net loss $ (11,418 ) Nine Months Ended July 28, 2019 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 738,682 $ 614,360 $ 83,803 $ 27,351 $ 15,133 $ (1,965 ) Cost of services 629,078 526,172 70,414 20,157 14,300 (1,965 ) Gross margin 109,604 88,188 13,389 7,194 833 — Selling, administrative and other operating costs 117,144 77,063 11,659 3,941 24,481 — Restructuring and severance costs 2,800 329 456 68 1,947 — Impairment charge 426 — — — 426 — Operating income (loss) (10,766 ) 10,796 1,274 3,185 (26,021 ) — Other income (expense), net (3,000 ) Income tax provision 671 Net loss $ (14,437 ) Nine Months Ended July 29, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 774,365 $ 640,004 $ 90,062 $ 21,778 $ 25,520 $ (2,999 ) Cost of services 664,695 551,011 76,094 16,659 23,930 (2,999 ) Gross margin 109,670 88,993 13,968 5,119 1,590 — Selling, administrative and other operating costs 132,076 85,055 12,231 4,213 30,577 — Restructuring and severance costs 3,730 32 340 117 3,241 — Impairment charge 155 — — — 155 — Operating income (loss) (26,291 ) 3,906 1,397 789 (32,383 ) — Other income (expense), net (2,932 ) Income tax provision 576 Net loss $ (29,799 ) (1) Revenues are primarily derived from Volt Customer Care Solutions through June 7, 2019. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jul. 28, 2019 | Jul. 28, 2019 | Jul. 29, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |||
Deferred gain on sale of real estate, to be recognized as cumulative-effect adjustment upon adoption | $ 22,000 | $ 22,000 | |
Amortization of deferred gain, per quarter | $ 500 | $ 1,458 | $ 1,458 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Jul. 28, 2019 | Apr. 28, 2019 | Jan. 27, 2019 | Oct. 29, 2018 | Oct. 28, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Cumulative impact of adopting ASU | $ 426 | ||||
Performance obligation, payment terms description | Customer payment terms vary by arrangement although payments are typically due within 15 - 45 days of invoicing. | ||||
Reserve balance | $ 400 | $ 400 | 700 | ||
Contract assets | 0 | $ 0 | |||
Long-term contract liabilities | 0 | $ 0 | |||
Deferred fulfillment costs | $ 0 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Cumulative impact of adopting ASU | $ 426 | $ 400 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 233,176 | $ 257,808 | $ 738,682 | $ 774,365 |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 203,266 | 651,566 | ||
International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 29,910 | 87,116 | ||
Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 223,754 | 701,893 | ||
Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,679 | 10,633 | ||
Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,081 | 11,563 | ||
Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,662 | 14,593 | ||
Operating Segments | North American Staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193,641 | 215,679 | 614,360 | 640,004 |
Operating Segments | North American Staffing | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 192,704 | 611,861 | ||
Operating Segments | North American Staffing | International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 937 | 2,499 | ||
Operating Segments | North American Staffing | Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 191,575 | 607,980 | ||
Operating Segments | North American Staffing | Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,066 | 6,380 | ||
Operating Segments | North American Staffing | Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | North American Staffing | Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | International Staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,728 | 28,579 | 83,803 | 90,062 |
Operating Segments | International Staffing | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | International Staffing | International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,728 | 83,803 | ||
Operating Segments | International Staffing | Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 26,704 | 78,290 | ||
Operating Segments | International Staffing | Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,137 | 3,179 | ||
Operating Segments | International Staffing | Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 887 | 2,334 | ||
Operating Segments | International Staffing | Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | North American MSP | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,555 | 6,959 | 27,351 | 21,778 |
Operating Segments | North American MSP | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,478 | 27,009 | ||
Operating Segments | North American MSP | International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 77 | 342 | ||
Operating Segments | North American MSP | Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,664 | 16,049 | ||
Operating Segments | North American MSP | Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 697 | 2,073 | ||
Operating Segments | North American MSP | Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,194 | 9,229 | ||
Operating Segments | North American MSP | Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,856 | $ 7,456 | 15,133 | $ 25,520 |
Corporate and Other | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,662 | 14,593 | ||
Corporate and Other | International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 194 | 540 | ||
Corporate and Other | Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 194 | 540 | ||
Corporate and Other | Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Corporate and Other | Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Corporate and Other | Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,662 | 14,593 | ||
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (604) | (1,965) | ||
Eliminations | Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (578) | (1,897) | ||
Eliminations | International, principally Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (26) | (68) | ||
Eliminations | Staffing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (383) | (966) | ||
Eliminations | Direct Placement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (221) | (999) | ||
Eliminations | Managed Service Programs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Eliminations | Call Center Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in AOCL (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
BEGINNING BALANCE | $ 42,276,000 | $ 67,002,000 | $ 50,499,000 | $ 83,994,000 |
ENDING BALANCE | 35,673,000 | 53,979,000 | 35,673,000 | 53,979,000 |
Reclassifications from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
BEGINNING BALANCE | (7,091,000) | (4,804,000) | (7,070,000) | (5,261,000) |
ENDING BALANCE | (7,656,000) | $ (5,725,000) | (7,656,000) | $ (5,725,000) |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive loss | $ (565,000) | $ (586,000) |
Restricted Cash and Short-Ter_2
Restricted Cash and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions | Jul. 28, 2019 | Oct. 28, 2018 |
Restricted cash and short-term investments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Short-term investments | $ 3.1 | $ 3.1 |
Short-Term Credit Facility | Restricted cash and short-term investments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted as collateral | 0.5 | 0.5 |
Associated Vendors | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 7.4 | $ 11.3 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income tax provision (benefit) | $ 165 | $ 1,306 | $ 671 | $ 576 | ||
Statutory income tax rate | 23.40% | |||||
Tax Cuts and Jobs Act of 2017, reduction of deferred tax assets | $ 26,800 | |||||
Forecast | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Statutory income tax rate | 21.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 25, 2019USD ($) | Jul. 28, 2019USD ($) | Jul. 29, 2018USD ($) | Jul. 28, 2019USD ($) | Jul. 29, 2018USD ($) | Jul. 19, 2019USD ($) | Jun. 04, 2019USD ($)period | Jan. 28, 2018USD ($) |
Extinguishment of Debt [Line Items] | ||||||||
Approximate weekly employee compensation, payroll taxes and payments to vendors | $ 20,000,000 | |||||||
DZ Financing Program | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Accounts receivable securitization program, maximum investment limit | $ 115,000,000 | |||||||
Delinquency rate, period | 90 days | |||||||
Covenant, minimum tangible net worth, through fiscal 2019 (at least) | $ 30,000,000 | |||||||
Covenant, minimum tangible net worth, fiscal 2020 | $ 40,000,000 | |||||||
Covenant, maximum debt to tangible net worth ratio | 3 | |||||||
Covenant, minimum liquid assets | $ 15,000,000 | $ 15,000,000 | ||||||
Borrowing availability | 16,400,000 | 16,400,000 | ||||||
Long-term debt | $ 55,000,000 | $ 50,000,000 | 55,000,000 | $ 50,000,000 | ||||
Interest rate during period | 4.20% | 3.60% | 3.50% | |||||
DZ Financing Program | DZ Bank | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Temporary exclusion of specific customer from program, number of reporting periods | period | 3 | |||||||
DZ Financing Program | Letter of Credit | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Current borrowing capacity | $ 35,000,000 | |||||||
Fair value of amount outstanding | $ 24,200,000 | 24,200,000 | ||||||
Collateral | $ 30,000,000 | |||||||
DZ Financing Program | Letter of Credit | Short Term Financing Program | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Fair value of amount outstanding | 22,800,000 | 22,800,000 | ||||||
DZ Financing Program | Letter of Credit, Security Deposit | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Fair value of amount outstanding | 1,200,000 | 1,200,000 | ||||||
DZ Financing Program | Letter Of Credit, Credit Card Program | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Fair value of amount outstanding | $ 200,000 | $ 200,000 | ||||||
DZ Financing Program | Federal Funds Rate | Letter of Credit | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
DZ Financing Program | Prime Rate | Letter of Credit | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Minimum | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Target liquidity ratio | 1.5 | |||||||
Minimum | DZ Financing Program | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Additional borrowing capacity of facility | 5,000,000 | |||||||
Minimum | DZ Financing Program | DZ Bank | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Temporary reduction to borrowing availability | $ 2,000,000 | |||||||
Maximum | DZ Financing Program | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Additional borrowing capacity of facility | $ 7,000,000 | |||||||
Maximum | DZ Financing Program | DZ Bank | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Temporary reduction to borrowing availability | $ 3,000,000 |
Debt - Schedule of Long-Term D
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 28, 2019 | Oct. 28, 2018 |
Less: | ||
Deferred financing fees | $ 1,152 | $ 932 |
Total long-term debt, net | 53,848 | 49,068 |
Short Term Financing Program | ||
Extinguishment of Debt [Line Items] | ||
Financing programs | $ 55,000 | $ 50,000 |
Earnings (Loss) Per Share - Su
Earnings (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 28, 2019 | Apr. 28, 2019 | Jan. 27, 2019 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Numerator | ||||||||
Net loss | $ (6,057) | $ (5,165) | $ (3,215) | $ (11,418) | $ (7,687) | $ (10,694) | $ (14,437) | $ (29,799) |
Denominator | ||||||||
Basic weighted average number of shares (shares) | 21,157 | 21,071 | 21,106 | 21,044 | ||||
Dilutive weighted average number of shares (shares) | 21,157 | 21,071 | 21,106 | 21,044 | ||||
Net loss per share: | ||||||||
Basic (usd per share) | $ (0.29) | $ (0.54) | $ (0.68) | $ (1.42) | ||||
Diluted (usd per share) | $ (0.29) | $ (0.54) | $ (0.68) | $ (1.42) |
Earnings (Loss) Per Share - Na
Earnings (Loss) Per Share - Narrative (Details) - shares | 9 Months Ended | |
Jul. 28, 2019 | Jul. 29, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 636,664 | 1,608,492 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 632,240 | 466,929 |
Performance Share Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 355,318 | 276,396 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 28, 2019USD ($)multipliershares | Jul. 29, 2018USD ($) | Jul. 28, 2019USD ($)daymultipliershares | Jul. 29, 2018USD ($) | Oct. 28, 2018 | Oct. 29, 2017USD ($)$ / shares | May 01, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation | $ 0.6 | $ (0.3) | $ 1.3 | $ 0.7 | |||
Total unrecognized compensation cost | 3.5 | $ 3.5 | |||||
Weighted average vesting period | 2 years 2 months 12 days | ||||||
Compensation cost not yet recognized, expected in 2019 | 0.6 | $ 0.6 | |||||
Compensation cost not yet recognized, expected in 2020 | 2 | 2 | |||||
Compensation cost not yet recognized, expected in 2021 | 0.7 | 0.7 | |||||
Compensation cost not yet recognized, expected in 2022 | $ 0.2 | $ 0.2 | |||||
Equity Awards, Performance Shares (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares, granted (shares) | shares | 237,325 | ||||||
Award vesting period | 3 years | ||||||
Fair value of grants in period | $ 1 | ||||||
Equity Awards, Performance Shares (PSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity instruments other than options, payout percentage | 0.00% | ||||||
Equity Awards, Performance Shares (PSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity instruments other than options, payout percentage | 150.00% | ||||||
Equity Awards, Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares, granted (shares) | shares | 338,710 | ||||||
Award vesting period | 3 years | 3 years | |||||
Fair value of grants in period | $ 1.9 | ||||||
Equity Awards, Restricted Stock Units (RSUs) | Vesting Period One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Equity Awards, Restricted Stock Units (RSUs) | Vesting Period Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Equity Awards, Restricted Stock Units (RSUs) | Vesting Period Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Equity Awards, Restricted Stock Units (RSUs) | Board of Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares, granted (shares) | shares | 86,405 | ||||||
Award vesting period | 1 year | ||||||
Liability Awards, Performance Shares (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of grants in period | $ 0.6 | ||||||
Equity instruments other than options, average stock price prior to end of vesting period, number of trading days | day | 20 | ||||||
Maximum multiplier for closing stock price on grant date | multiplier | 2 | 2 | |||||
Liability Awards, Performance Shares (PSUs) | Vesting Period One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Liability Awards, Performance Shares (PSUs) | Vesting Period Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Liability Awards, Performance Shares (PSUs) | Vesting Period Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Liability Awards, Performance Shares (PSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity instruments other than options, payout percentage | 0.00% | ||||||
Liability Awards, Performance Shares (PSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity instruments other than options, payout percentage | 200.00% | ||||||
Liability Awards, Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Fair value of grants in period | $ 0.9 | ||||||
Maximum multiplier for closing stock price on grant date | multiplier | 2 | 2 | |||||
Liability Awards, Phantom Share Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Fair value of grants in period | $ 0.1 | $ 0.3 | |||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.35 | ||||||
Outstanding (shares) | shares | 6,012 | 6,012 | |||||
2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized (shares) | shares | 2,500,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Schedule of Transactions Involving Outstanding Non-Options Awards (Details) | 9 Months Ended |
Jul. 28, 2019$ / sharesshares | |
Equity and Liability Awards, Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding Beginning balance (shares) | shares | 276,396 |
Number of shares, Granted (shares) | shares | 275,591 |
Number of shares, Forfeited (shares) | shares | (99,407) |
Number of shares, Vested (shares) | shares | (97,262) |
Number of shares, Outstanding Ending balance (shares) | shares | 355,318 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted average grant date fair value, Outstanding (in dollars per share) | $ / shares | $ 3.38 |
Weighted average grant date fair value, Granted (in dollars per share) | $ / shares | 4.25 |
Weighted average grant date fair value, Forfeited (in dollars per share) | $ / shares | 3.38 |
Weighted average grant date fair value, Vested (in dollars per share) | $ / shares | 3.82 |
Weighted average grant date fair value, Outstanding (in dollars per share) | $ / shares | $ 4.01 |
Equity and Liability Awards, Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding Beginning balance (shares) | shares | 582,831 |
Number of shares, Granted (shares) | shares | 425,115 |
Number of shares, Forfeited (shares) | shares | (146,938) |
Number of shares, Vested (shares) | shares | (157,321) |
Number of shares, Deferred (shares) | shares | 21,368 |
Number of shares, Outstanding Ending balance (shares) | shares | 725,055 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted average grant date fair value, Outstanding (in dollars per share) | $ / shares | $ 3.53 |
Weighted average grant date fair value, Granted (in dollars per share) | $ / shares | 4.32 |
Weighted average grant date fair value, Forfeited (in dollars per share) | $ / shares | 3.66 |
Weighted average grant date fair value, Vested (in dollars per share) | $ / shares | 3.56 |
Weighted average grant date fair value, Deferred (in dollars per share) | $ / shares | 3.20 |
Weighted average grant date fair value, Outstanding (in dollars per share) | $ / shares | $ 3.97 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Schedule of Transactions Involving Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Jul. 28, 2019 | Oct. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of shares, Outstanding Beginning balance (shares) | 1,600,040 | |
Number of shares, Exercised (shares) | (200,000) | |
Number of shares, Forfeited (shares) | (302,792) | |
Number of shares, Expired (shares) | (460,584) | |
Number of shares, Outstanding Ending balance (shares) | 636,664 | 1,600,040 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | ||
Weighted average exercise price, Outstanding balance (in dollars per share) | $ 5.25 | |
Weighted average exercise price, Exercised (in dollars per share) | 4.35 | |
Weighted average exercise price, Forfeited (in dollars per share) | 5.54 | |
Weighted average exercise price, Expired (in dollars per share) | 5.36 | |
Weighted average exercise price, Outstanding balance (in dollars per share) | $ 6.18 | $ 5.25 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Contractual Life (in years) | 7 years 1 month 15 days | 7 years 3 months 7 days |
Aggregate Intrinsic Value (in thousands) | $ 108 | $ 0 |
Restructuring and Severance C_3
Restructuring and Severance Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 62 Months Ended | |||||
Jul. 28, 2019 | Jul. 29, 2018 | Apr. 28, 2019 | Jul. 28, 2019 | Jul. 28, 2019 | Jul. 29, 2018 | Oct. 25, 2020 | Nov. 03, 2019 | Dec. 31, 2025 | Oct. 28, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 2,017 | $ 3,108 | $ 2,800 | $ 3,730 | ||||||
Anticipated payments for restructuring | 4,326 | |||||||||
Severance costs | 100 | 500 | ||||||||
Restructuring costs | 4,176 | 4,176 | $ 4,176 | $ 5,702 | ||||||
Severance and Benefit Costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 2,600 | |||||||||
Restructuring costs, payment period | 24 months | |||||||||
Executive Management Change | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring costs | 1,100 | 1,100 | 1,100 | |||||||
2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 500 | 5,300 | ||||||||
Restructuring costs | 2,300 | 2,300 | 2,300 | |||||||
2018 Plan | Forecast | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Anticipated payments for restructuring | $ 600 | $ 900 | $ 1,300 | |||||||
Exit of Customer Care Solutions Business | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring costs | 800 | 800 | $ 800 | |||||||
Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,714 | $ 3,006 | 1,947 | 3,241 | ||||||
Corporate and Other | Severance and Benefit Costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,400 | 1,700 | ||||||||
Corporate and Other | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 3,800 | |||||||||
North American Staffing | Operating Segments | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 121 | 23 | 329 | 32 | ||||||
North American Staffing | Operating Segments | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,100 | |||||||||
International Staffing | Operating Segments | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 182 | $ 41 | $ 456 | $ 340 | ||||||
International Staffing | Operating Segments | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 400 |
Restructuring and Severance C_4
Restructuring and Severance Charges - Summary of Accrued Restructuring and Severance Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2019 | Jul. 29, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of year | $ 5,702 | |||
Charged to expense | $ 2,017 | $ 3,108 | 2,800 | $ 3,730 |
Cash payments | (4,326) | |||
Ending Balance | $ 4,176 | $ 4,176 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended |
Sep. 05, 2019USD ($) | |
Subsequent Event | Unfavorable Regulatory Action | |
Loss Contingencies [Line Items] | |
Loss contingency, contribution | $ 0.8 |
Segment Data - Summary of Sales
Segment Data - Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 28, 2019 | Apr. 28, 2019 | Jan. 27, 2019 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Jul. 28, 2019 | Jul. 29, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | $ 233,176 | $ 257,808 | $ 738,682 | $ 774,365 | ||||
Cost of services | 197,528 | 221,448 | 629,078 | 664,695 | ||||
GROSS MARGIN | 35,648 | 36,360 | 109,604 | 109,670 | ||||
Selling, administrative and other operating costs | 38,395 | 42,222 | 117,144 | 132,076 | ||||
Restructuring and severance costs | 2,017 | 3,108 | 2,800 | 3,730 | ||||
Impairment charge | 79 | 0 | 426 | 155 | ||||
Operating income (loss) | (4,843) | (8,970) | (10,766) | (26,291) | ||||
Other income (expense), net | (1,049) | (1,142) | (3,000) | (2,932) | ||||
Income tax provision | 165 | 1,306 | 671 | 576 | ||||
NET LOSS | (6,057) | $ (5,165) | $ (3,215) | (11,418) | $ (7,687) | $ (10,694) | (14,437) | (29,799) |
Operating Segments | North American Staffing | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | 193,641 | 215,679 | 614,360 | 640,004 | ||||
Cost of services | 164,809 | 184,724 | 526,172 | 551,011 | ||||
GROSS MARGIN | 28,832 | 30,955 | 88,188 | 88,993 | ||||
Selling, administrative and other operating costs | 24,346 | 27,971 | 77,063 | 85,055 | ||||
Restructuring and severance costs | 121 | 23 | 329 | 32 | ||||
Impairment charge | 0 | 0 | 0 | |||||
Operating income (loss) | 4,365 | 2,961 | 10,796 | 3,906 | ||||
Operating Segments | International Staffing | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | 28,728 | 28,579 | 83,803 | 90,062 | ||||
Cost of services | 24,181 | 23,917 | 70,414 | 76,094 | ||||
GROSS MARGIN | 4,547 | 4,662 | 13,389 | 13,968 | ||||
Selling, administrative and other operating costs | 4,023 | 3,944 | 11,659 | 12,231 | ||||
Restructuring and severance costs | 182 | 41 | 456 | 340 | ||||
Impairment charge | 0 | 0 | 0 | |||||
Operating income (loss) | 342 | 677 | 1,274 | 1,397 | ||||
Operating Segments | North American MSP | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | 9,555 | 6,959 | 27,351 | 21,778 | ||||
Cost of services | 7,053 | 5,400 | 20,157 | 16,659 | ||||
GROSS MARGIN | 2,502 | 1,559 | 7,194 | 5,119 | ||||
Selling, administrative and other operating costs | 1,382 | 1,414 | 3,941 | 4,213 | ||||
Restructuring and severance costs | 0 | 38 | 68 | 117 | ||||
Impairment charge | 0 | 0 | 0 | |||||
Operating income (loss) | 1,120 | 107 | 3,185 | 789 | ||||
Corporate and Other | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | 1,856 | 7,456 | 15,133 | 25,520 | ||||
Cost of services | 2,089 | 8,272 | 14,300 | 23,930 | ||||
GROSS MARGIN | (233) | (816) | 833 | 1,590 | ||||
Selling, administrative and other operating costs | 8,644 | 8,893 | 24,481 | 30,577 | ||||
Restructuring and severance costs | 1,714 | 3,006 | 1,947 | 3,241 | ||||
Impairment charge | 79 | 426 | 155 | |||||
Operating income (loss) | (10,670) | (12,715) | (26,021) | (32,383) | ||||
Eliminations | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
NET REVENUE | (604) | (865) | (1,965) | (2,999) | ||||
Cost of services | (604) | (865) | (1,965) | (2,999) | ||||
GROSS MARGIN | 0 | 0 | 0 | 0 | ||||
Selling, administrative and other operating costs | 0 | 0 | 0 | 0 | ||||
Restructuring and severance costs | 0 | 0 | 0 | 0 | ||||
Impairment charge | 0 | 0 | 0 | |||||
Operating income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |