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Lasse Glassen | Investor Relations |
Michael Dean | President and Chief Executive Officer |
Paul Tomkins | Senior Vice President and Chief Financial Officer |
Greetings, and welcome to the Volt Information Sciences’ Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode [Operator Instructions].
As a reminder, this conference is being recorded. I'd like to turn the conference over to your host, Mr. Lasse Glassen, Investor Relations. you. Thank
begin. may You
thank fiscal joining full XXXX conference And Volt year today Information call. Sciences’ fourth you morning. us for for earnings Good quarter and
Officer Dean, call Chief and and is the Officer. Tomkins, Michael On Chief Vice today Financial Executive and President Paul Senior President
press statements made of due today’s implied beginning you impact or Chief Company’s reconciliation on provide under issued differ of morning, projected a over Securities Sciences’ Reform and variety filings refer Michael Act the those from the Actual me to will that results SEC turn be those is materially included that will my which the discussion future some remind Private our Volt’s it’s release to speakers financial Also A certain Michael? this Before will today you GAAP forward-looking Dean. XXXX. We may we believe factors. XXXX. let Officer, financial of investors. in to more to call, recent could of and January President condition. reference With of the for today’s call, risks detailed non-GAAP the to measures, pleasure made measures and Information Volt for information results call are useful now Litigation that, Executive operating with the earnings the XX, a
joining sheet then additional status year results, our our past fourth of Good about us our overview today's Thank Chief XXXX along for details balance financing on and ongoing from the with begin Paul thank quarter update turnaround conference liquidity quarter for results this today position. and year call you, Lasse. our Financial earnings Officer, our and I'll with including our Tomkins, call. morning. will you discuss And and an fourth fiscal full of quarter full an financial our strategy.
significant revenues from XX.X% divested when million same a prior quarter A decreased lower compared resources XX a relationship very large the the net our was excluding North customer of decline maintain in staffing positive and reduced year $XXX.X related fourth changes their while to overall staffing. rates. overall to On currency XX.X% fluctuations fourth the human this revenues revenue exchange quarter we spend or foreign net year-over-year with decreased dramatically Looking to their we of on of single, performance, at a fiscal basis, portion exited American over client, segment. million to And from the a $XXX.X continue strong, as XXXX. in months business store ago strategy in temporary
and this evidence prior steady. we've for customer effectively relatively maintained revenue continued improvement the past fourth Notwithstanding several declines year quarter several XXXX. improvement metrics. have notable this key financial Volt's results our fiscal from in periods, and and operational showed quarters the current been margin revenue, the lower In over Excluding quarter,
accomplishment successfully For expanded our margins year, XX in an we basis points, the full industry. by gross
administrative, selling, achieving plan, assurance benefitted focus continued the quarter lower at from known gain bottom the fourth financial $X.X ongoing costs. comments the operational on remarks, from in line, containment efficiencies income cost to other performance on along Since million. in operations and we’ve our of has addition, and deliver our million $XX.X continuing will will his focus XXXX, fiscal operating quality sale with of progress In our And fiscal for net business, priorities the my quarter with in EBITDA the our as VMC, in of made XXXX. turnaround more executing key industry today adjusted detail fourth on Paul our discuss
three been has turnaround Volt key the remainder, pillars. quick a focused As on
we've and third, made foundation; improving strong the our growth. First, on Overall, initiatives cost headway company business our top streamlining strengthening and emergence; second, these years. our balance structure past and line over sheet two achieving
both. in it is we’re magnitude, case undertaking of generally a the turnaround business this As
uneven. Our in we've quarterly of with last We’ve advances conference since call. progress our made has share made the many and significant been you aspects progress I the will turnaround,
NewNet December to Volt’s Volt as to the put of NewNet. of this our favorable in settlement However, productive cash execute this year own and and overall curve, Computer the debt on enhanced to Addressing proceeds the business, corporate net our structure, completed in improving approximately production same the we’re Technologies and we pleased which our we we the a divestiture month. later to now say, during of The call million include of X% At this pleased fourth and lone segment, respect million, a global sheet, financing outstanding asset, the testing sale have to positioned shortly Communication a Outsourcing liquidity, that and words, quality-assurance, our the loss remaining flexibility, for will expect pay with of Company to lone Systems down revenue pure-play the million, services of Volt $XX with quality video the on Also transaction X% In creating progress some to and this stock. our it provide we the sheet, equivalent balance utilizing new detail support earlier final completed carry-forwards. tax letter $X our or with solidifies on sale market quarter, this and Suffice is this the very With quality of of bending Services per of and a representing of will business to revenues, financial the from terms balance This part sheet flexibility. more of another our the net program assurance Solutions in The is Paul outcome and as fiscal are well was discuss but result allowed this plan segment primarily $XX.X value achieved quarter. matter behind end complete, Overall, not but shareholder minute. roughly and we this on agreement Technology the we’re promissory plan. customer Volt’s assurance as this we’ve center at we proceeds stalled. With year about its pillar, mobile of further will announcement. is provides our our company create priority The staffing share $X common our top provides million enhanced quarter, resolved us And we detail focused, Volt’s commitment and development, other we pillar has a deal’s while note value. significant capitalization new of non-core best long-term $X lender the Volt is XXXX, more balance before industries. where very received enter our related the simplifying Volt a of XXX% to entire sold had with sale close the program of I of and to successfully companies his signed than gaming due this turnaround us. more sale to segment, in remarks, operate. that new Volt did that which this pleased continue financial transaction. runway time extends are unit finally, generated XXXX
of our cost and to improving our now objective operational Turning structure efficiencies.
During we administrative our make continued progress this in past to support quarter, right-sizing functions.
selling, During administrative, year. quarter fourth operating quarter, the compared fourth and improved X% by costs last other the with
resulted activities. costs reduce to full For million of cost reduction that of year, reduction cost cost SG&A It total X.X% of we savings $XX.X headwinds, were by in are Maintech or top in the XX% in March. worth able the The $X.X the from the or of our sale is year-over-year This people is reduction nearly achieved fiscal and on for including we million net significant a these full through SG&A noting in ongoing technology. that net investments year net XXXX. of also
year, on making and a information technology current business years Volt’s investments we of we be going After also that to further essential that to deferred previous arrival forward. costs team, spending overall undertaking company-wide will the was prior new calls. deployed and our discussed forward improve technology have believe in Early efficiencies will we We’re this in competitiveness. the of going future significant the management lower
of you was most deployed front-end-of As and ERP functionality, the across company back entire business this as well office financial a recall, the included system as suite.
negatively we some last third at we did post-implementation during of our billing As that impacted phase position liquidity the issues the quarter, quarter. experience end the customer reported
that this behind functionality, on efficiency, that to With associated now However, report implementing operational offers. material our resolved. have all I enhanced deployment competitive us, with been and other benefits the am improved this are focused teams issues the technology pleased
$X generate million to $X continue savings and of will approximately to annually We XXXX in beyond. cost anticipate this million
third fiscal in the consider we simply lock-step business Over Within the year-over-year business. we’ve are the the of has the achieved to we two our for going efforts and our Solutions our sheet is to Technology feel the and many balance is We our here improving of the start, business. and To be the our in of growth now progress right-sizing pillars business. pillars center we primary business, turnaround sale already and achieved plan to believe past facing assurance Volt’s will XXXX have address of turnaround two on call several course the growing fronts. has efforts measures which fastest growth. drive and helped remaining our XXXX first maintain Therefore, pillar goals entering segment, the Furthermore, Outsourcing challenges us of regular XX% services I Services our forward. on we achieved fiscal established in executing business foundation on in beyond. years, our objectives focused part the in this are required With momentum success revenue after place, of we quality strategy, revenue these
adjusted by business Volt’s now majority momentum despite our In for Volt’s the American the XXXX UK exited, by our revenues ended second Staffing sold being growth X.X% segment, VCG, impacted segment, poised generate XXXX. produced economic foreign only fiscal significantly remaining down addition, The and or the Staffing. North is year downturn. of segment far to strong exchange largest, is in in half comprises and of Other and fiscal the International businesses MSP that And
a American To identified a staffing track successful in appoint significant declining curve A have stalled While last business top bending back revenue North quarters. to in replacement earlier has progress we industry record. extremely year, is the we track to an made this this on this to XXXX executive and key our getting several with end, as headway lead permanent been the fiscal the Staffing segment.
be to determined. that this addressing to forward, opportunities fill, we the strategy existing continuing move are issue finding orders by call the win, individual’s clients, and that a last meantime, grow: we non-compete clients. to we’re with and current with efficiently fill offer, win In our and new before grow execute articulated yet We more our ways engagements we employer quarter exact the to expand to with better previous timing the To all
Let me so with of take our each far progress discuss to a moment these.
First, we to focusing, need our new expanding, through business and more win training salesforce.
we rolling to of in local the a wins, This challenging our with this of $X expect training annual responsibilities, quarters. sales playbook expectations. market, a sales and including our quarter salesforce, Furthermore, we in labor have expanded quarter, revenue again we reduced refined and many we our we terms have clients quarter, And and expanded next team. defining of more four million. attrition new roles, focused this each expected and And few our despite in new hire salesforce, brought in out
is in to have effort recruiting fill revenue candidates. and efficiently with XX needs current clients’ existing clients. better on call, people The by grow invested our second in expanded to imperative team our quality capitalize opportunity Since we with and our earnings high to last internal an
clients. advantage have recently to relative Additionally, tools. since to our existing have launched the sales win, of to system. many in, grow overall at robust fill, program, how less training applicant our our last will this for capitalize is this which peers, call, but better Sales locations capitalize existing part XXX of our We this we finding executed, older quarter to realign of front-end last invested is our to believe over efforts grow our global XXX business completed XX end, through This and current on growth Training we provide piece tracking Strategic on roster strategy of And our of clients. one on employees efforts. with our hours and a focus branch To our
the slowed making come. have declines we in revenue yet are intended in investments on are that positive a quarters revenue have and we and other believe this these impact to While not business, that I efforts to
past let say operations. play has successfully Lastly, solid Company challenges. years me operational on clear address we executed strategy that The pure today the the of have turnaround us two over that footing a focus many Volt’s helped and streamlined with is
our results. entire a over remaining I is is discussion look Now overcoming full financial more our of With a challenges on on final and detailed company. stronger line the quarter which year emerging successfully achieving growth. the fourth I’d to like top Volt’s team focused turn for and phase as our forward to that, call now to Paul? Paul strategy,
and well financing as additional our fourth you, sheet details the on and will and year our of position. as financial liquidity balance status full Thank Michael. I our results, discuss morning. quarter Good provide Today,
Our or driven on the a segment The our segment decrease $XX.X was Staffing of sale decrease March. basis. revenue quarter $XXX.X fourth our $XX.X as of million a North reduction XX.X% $XX.X the result American primarily was in decline Other million, Maintech in a in and year-over-year million a million a of in of by
impact on for down the been shut businesses a during revenue exchange, this as XX.X% have year, basis. well impact would foreign past same-store decline of or of sold our as normalizing year-over-year Excluding the non-core the
down was XXXX. the compared net full at XX.X% in Looking million $X,XXX.X year, fiscal fiscal or revenue XXXX million, to $XXX.X
impact as exchange, this Excluding year-over-year of same-store the for a shut have been non-core during decline well revenue the as impact would foreign basis. or year, the businesses X.X% on normalizing of sold down past
human direct Turning now fourth broad the other down outsourcing aerospace in as on decreased strategy Revenue spend for recruitment a this customer as basis. revenues was North placement, our well was and in to segment. staffing. our Staffing temporary million on staffing, industry a that its a capital process which quarter, by services, Revenue employment of the large segment, and by impacted customer significantly provides demand with decreased year-over-year segment XX.X% American in contingent spectrum changed overall $XXX.X
Michael of increased turnaround. As in final win, focus top-line efforts fill, in on segment We to segment improving remain firmly Staffing North our an the American performance. our the dedicated detail, grow focus discussed is this with
revenue in discussed on we recruiting previous that to improve it performance. As imperative expand calls, and order further talent is our VWS’ sales
be the attributed Europe placement, The the still is during effort. VWS made year quarter, is It getting of is million While increased on in and foreign abundantly the this down decline Kingdom, businesses fourth was well clear the turnaround exchange managed progress our contingent there $XX.X on we program in Staffing front track the back which that was quarter, slowdown key from ago. additional United to our X.X% in staffing, to million. as of direct includes International year-over-year work economic Company’s a as impact and $X.X Asia, done. to Revenue for segment, fluctuations
Solutions a Segment down and of and service million customer which in variety fourth support XX.X% in analytics and was business for Outsourcing the intelligence revenue, assurance, $XX.X Our companies year-over-year. Services quarter, Technology industries includes quality
assurance discussed our the we Michael was As of which end quarter, at sold business, this the of segment. part quality
are retaining technology We services business, of center call this which a portion the prominent primarily company.
which year-over-year. decline not And million primarily year-over-year quarter in driven Programs grew a to of relatively our was by finally, quarter, overall was half On now excluding second year-over-year basis. renewed basis, lower down margin American our the the sale the flat company XXXX. The our of quarter Managed exited well sold XXXX. decreased of the also segment occurred early comprised our businesses the same-store the impact North due fourth last million, as were Service on volume XX.X%, VCG Maintech, year. XX% the looking year-over-year as revenues down during call businesses, were versus total primarily business, of $XX.X in Overall, VCG, X.X% center revenue or in a of $X.X quarter sequential fourth $X.X that or is of revenue Other contracts latter gross which was percentage and Corporate in fiscal XXXX business the million in and While XXXX, at
exited, decreased fourth basis. year quarter the Excluding or this on XX sold gross an businesses basis in apples-to-apples the points margin
quarter selling, million above sale cost of the was of Maintech. other $X.X expense quarter depreciation X% and the and or in back-office areas $X.X quarter of we fourth incurred of as and $X.X impact upgrade the cutting severance first to decreased due primarily software $XX suite the due the million the last costs fourth of Turning costs higher was gross the the XX and operating cost The beginning completion business related expense improvement in year. restructuring information points and in This million initiatives license performance, year. majority of implemented the annual our phase was basis, technology fourth cost up basis our first to of from percentage and to margin initiatives. tools. financial result expenses administrative XX.X%, cost On in of approximately We run-rate This includes ongoing to an a the of versus these year-over-year year-over-year. all reductions decrease million the of quarter last saving
The SG&A of the addressing from issues March. systems of some our our million and $X.X the updates of by impacted or the $X the software sale one-time being year, the resulted related declined For to half billing during by depreciation SG&A incurred X.X% the and we year-over-year in in despite in technology upgrade. million also approximately Maintech full license including the of with information back year, payroll completion costs expenses reduction higher
Since to also with has remains or sold top $XXX shutdown, a progress revenue rate a are generation our XXXX. have into XXXX. million profitability and SG&A million priority we excluding we businesses reduced from our our pleased is a as in of leveraging we fiscal While $XXX run to XXXX, key SG&A enter maintain focus,
expect fiscal of our to to we continue cost business focus IT processes. in structure XXXX, to changes as on upgrade and our full ahead to Looking our functionalities make we realize improvements the intelligent
business the Turning quarter primarily to the million quarter the our fourth million during assurance to million last Income $XX total year. sale the from increase company $XX.X in the fourth profitability year-over-year quarter compared was was operations the in to of $X.X XXXX for due of quarter. The continuing on XXXX. of quality gain fourth
For a $XX.X million compared operations is was prior the sale increase the businesses, of in from The to to quality net continuing of attributed assurance full $XX.X non-core on business. our and the loss primarily income million the year, year. year-over-year gains Maintech
sales to We financial significantly the release, further pure-play and refocused Adjusted of XXXX to a in quarter staffing are compared our a pleased which flexibility as earnings press in $X enhanced was fiscal completed into period. million $X.X our highlighted fourth company. positive these have liquidity and Volt EBITDA, year ago the million in
was adjusted full a negative year positive period. For ago million the year, EBITDA $X.X $X to the million a in compared
to million segments. $X.X let’s of North on the in income segment profitability million was the American Staffing a of core ago. move year our Operating Now to ‘XX compared in our fourth quarter $XX.X
remarks. to revenue discussed this efficiencies a combination expect We earlier time growth initiatives improve of operating in Michael through his over and
income Solutions at generated Looking income Services of other and the business of $X.X Outsourcing million, generated operating Staffing while million. operating Segment International our the $X.X segments, Technology
was income result operating fourth for $XX.X income gains $X.X quarter divestitures. improvement of primarily an million, of year the to in period, $XX.X operating the a from million prior as million compared company of XXXX total Our of
balance of XXXX, prior the from total the $XX our the year balance $XX At we million XX, from and liquidity, liquidity to sheet $XX.X the from $XX.X at of at of end down now down our million quarter of was position, a $XX.X up quarter. end global million, prior had million third Turning the year. October debt total and million
proceeds liquidity was our de-lever our were efforts our As significant balance and The consistent reached sheet. our global in with $XX.X with position divest improved to of our January resulted business assets decrease The million NewNet and Communication previously ongoing settlement of also quality the liquidity balance the and our non-core sale X, net balance. agreement XXXX, assurance Technologies cash we our debt $XX.X of cash discussed during improved million. in quarter
used for paid a a million. of adjustment note for NewNet settle our balance of cash debt. other and our settlement, a our improving year debt, $X sheet also note the to net $X million promissory than sheet of January by to to than was outstanding off $X.X XXXX. receipt we inflows These $X.X XX, and we no result capital more indemnity our part and The million a million down primarily further and expect working cash refinancing agreed As financial maturing finally, later early And solidify flexibility. balance claims pay were further
a Accounts We new letter on have Securitization executed commitment a Receivable arrangement.
our deal working currently completed We documentation turnaround profile, diligence. financing its on to shortly definitive as will runway providing on the maturity We execute the anticipate closing lender which our successfully due debt plan. program, are has improve new additional
priorities of our our top consistent. liquidity, managing terms In remain
like our to manage our We our as capital business. returning continued growth in to and focus are to ensuring well effectively the liquidity that for focused purposes is and an thank to basis, ongoing team shareholders. commitment required In I’d of are success and capital to necessary the tools on closing, investing as entire technology for on adequate support business the there Volt working again, plan, their
And focused revenue growth I’d this Michael on call. to We to you over are Dean. the turn for returning on time, Thank and right at top-line Michael? we Volt like call joining the confident back track to fully are the growth. driving profitable to
Paul. you, Thank
in addition create Now, where VMC positioned shareholder best that we to I’d announced like those sale would staffing non-core us our on made liquidity, core enhancing value. the some reiterate we to in our allow when disposition highlighted to long-term We of focus we late the to of are October. assets, then remarks business
range Board share and to shareholder warrant significantly we If initiatives I the them for at that projects the to with a our will and broad of value of is when Company's believe continue underway options shareholders. growth. said, such advance undervalued that positive review the stock management time, disclosure, also We Directors outcomes. plan the potentially and and drive to continue have
Board continue but forward thank the on look as support Company, publicly arise. restricted they buying look your today. to will when To forego joining we on these questions to However, developments and and the after our be prepared shares. today remarks, management market updating from Accordingly, shareholders for March. results fiscal first this again quarter our and for forward you with call, everyone you. us you Thank We report speaking we XXXX to in
This Investor been concludes the transcript Volt's today's teleconference. the of A portion of Relations copy site. call has Web posted on
You Again, this you may lines at your for disconnect your time. thank participation.
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