STAF - Earnings call 1 2021 | Staffing 360 Solutions, Inc.

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Operator

Greetings, everyone, and welcome to the Staffing Solutions 360 Fiscal Q1 2021 Results Conference Call. [Operator Instructions] And as a reminder, this call is being recorded.

This conference call will contain forward-looking statements within the meaning of the U.S. Federal Securities Law concerning the Staffing 360 Solutions, Inc. The forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. to company's risks the may and XXX actual the and which cause to contained Solutions important those identify other results refer filings forward-looking SEC, with contain Staffing in Please our from statements. differ factors that

are any statements today, of the conference of forward-looking XXX statements as and to revise call. May any this expressly after disclaims made obligation XXXX, or Staffing forward-looking All XX, Solutions to update date

such reference During these EBITDA, as these most measures comments, measures. certain prepared provided non-GAAP of GAAP the adjusted make applicable, reconciliation to have may to we directly which comparable non-GAAP we a measures

is It XXX pleasure Staffing Solutions. Flood, Brendan Mr. Flood, Chairman begin. introduce and now you Executive of my Chief Officer may to

Brendan Flood

who fiscal open stress and joined Accounting Staffing progress us Thank COVID-XX the you, to provide United being delighted update has and provide business a our States Khalid of Officer. out I on operator, joined efforts I'm made a QX in on questions. depth The in Call. see our I'm we financial to the and and XXX's will Kingdom. Results today Conference United view by for Principal staff, Financial be financial priority. and continue continues Principal will Anwar, the everyone our for to and thank vaccination is outlook. will the be well-being XXXX clients to will key our to that the progressing are more you then Khalid that I results, of contractors how an then the pandemic line

gross at was of yesterday, $X $XX our million. press million, for revenue outlined release QX in XXXX profit with As

U.K. and the XX.X% the revenue intended end of was was quarter last at The the down to IRXX the pre-pandemic was the first legislation enacted. Overall, be first was in XXXX our also quarter of which year-over-year. quarter quarter

the X.X%, revenues down gross down sequential disposal. was profit X% experience staffing disposed with business typically an in XX.X% Gross QX We decline. in drop revenue or saw the seasonal XX.X% QX. profit basis, Excluding our X.X%. we excluding was down On QX, a commercial our of firstPRO, against a

the past, as professional continued As our conference seasonal business as the to in on year-end drop call, pronounced and grow. not streams was mentioned this

Our million, flat adjusted impacted was EBITDA QX QX and year, least effects was the typically $X.X quarter broadly profitable for our by year-over-year. economic which COVID-XX. the this further of was trailing is quarter,

caused the we faced the client this base. tax The our and related during some uncertainty projects of behind implementation now legislation delayed that key U.K., Thankfully, is the challenges IRXX get to in which QX in started. can us,

on February, uncertainty financial business both we the we million down. Overall, market footing. and have new our raised more major our levels and and have reduce issues to burden In equity, of U.K. the summer, and allowed broadly time debt some levels. of our to economies, the our since last put which $XX.X halved this further us manage continue to debt prudently impacts to on we up clean Despite U.S. solid used a

had have await to forgiveness we of for determination. million. filed $XX.X of requests a clarification Paycheck loans our the but continue Business We've a We on Administration, Small Program Protection from number

Anwar, now our and for call Khalid? I to hand over will Officer a update. Khalid the further Principal Accounting Financial

Khalid Anwar

good and Brendan, you, morning, Thank everyone.

over million. of $XX.X year $XX million first the of of a the For quarter revenues XX.X% prior reflect decrease of XXXX,

under and translation of COVID-XX XX.X%. the -- just foreign revenues Excluding $X by a $XX.X divested was remaining divested declined firstPRO, decline decline by of the The million. due business currency offset impact. to million business, favorable was The

quarter, week, contractor of the week first XXXX. year contractor million $X,XXX per The down approximately divested revenue down the of revenue. is $X,XXX approximately comprised of temporary from And million $XX revenue was now $X temporary quarter $X,XXX placement in is and of business. from the during Revenue adjusting quarter per for the slightly per fourth approximately in prior after the week permanent

the approximately same of Gross XX.X% the million December. $X last with of first versus employees, decreased quarter prior or million year. the ended X,XXX the the for profit contractors temporary amount quarter We $X.X quarter approximately comparative over

divested Excluding the by compared prior the profit divested business, or largely driven first from in decreased was by margin the the million permanent $X.X Gross revenue quarter year XX.X% XX.X% quarter, gross for business. the X.X%. lower with

included margin of comparative was firstPRO by from Excluding driven XXXX general quarter. in of been divested. the remaining overall XXXX steps million prior, $X.X were million Loss in of the expenses the people the professional the million $X.X which decrease of unit, in was for impairment million. versus reporting fees; $X.X reduced XX.X% XXXX -- million, or operations for costs gross was taken $X quarter charge and in approximately pandemic; XX%. of QX and divested costs. $X.X the for lower the has goodwill business, QX The Operating a decrease of administrative $XXX,XXX reduction wake since

was Excluding 'XX, loss $X.X comparable XXXX competitive goodwill -- million. in impairment,

a company's the its load first quarter company's of a the loss $X over comparative efforts Gain months. the expenses year. the $X.X to XXXX intercompany $X.X prior compared $XXX,XXX substantially narrowed of quarter million This loss of in with translated of the XXXX. in of of lower compared with into $X.X million $X.X reduction remeasuring Other by prior in last successful net debt note loss totaled versus the the $XXX,XXX quarter a performance company's first quarter year. The of of million expenses primarily interest was several first for the reduce million, helped from million driven in by

$X.X million improved of a EBITDA level $X was slightly last QX below from year's XXXX. of for million loss million. significantly of Adjusted $X.X $XXX,XXX EBITDA of

cash positive negative cash successful Finally, with of and million. flow, management overall capital cost our a was the flow flow result This respect operating to $XXX,XXX of versus of cash reported our working controls. $X.X we of

to you. Brendan. Thank back the call turn now will I

Brendan Flood

you, Thank Khalid.

plans firms opined growth upon staffing strong already no we XXXX. market of the We needs expected to it. than second other see peer reiterate are we recovery a have in following now discussions that And made half clients about our previous a comments period. in continuing and have reason the With our that our their differently with any

Second With last XX% of for year-over-year quarter X our profit a solid quarter of of is hit uplift a was trends growth. business year. of revenue our pipeline gross we and XXXX showing of see streams our expectation positive opportunities, as all hardest that will are both

a of call business increased now we terms our business. This on wins, new our staffing dozen. roughly signed commercial has XX mentioned that In in had client number contracts I last by

for across to our is client X-year through large in extension agreement. existing us A has legal client documentation a U.K. our U.K. new a we in look the working client contract the largest and material awarded U.S. can framework in Our Continental to them at largest the Europe into asked in staffing support us to has extend how our professional Asia. and additional states X reach IT

in and about As and you are can see, these other there enthusiastic momentum opportunities. is this a of recovery, definite we building sense

normality. to help internal on the and bring corporate continuing is contractors, our back our safety to vaccinated to to our our focus of the Our refinancing encouraging look teams, get of balance members and after countries employees sheet

this thank Consequently, upon you safety. and year, of soon that as for morning. will the second attention I said, the and focus good which M&A you like half be your With said, previously health on time we to wish us. in will I'd

Operator, now session. like for over to would call our I you hand to the Q&A

Operator

Instructions] [Operator

And Knitz, we'll Peter first our please. take from Go ahead, question investor. private

Unknown Shareholder

you the It What going. opportunities in you've got XXXX? excites like sounds about some good momentum

Brendan Flood

Brendan. is This Peter. Thanks,

of the being one that and XXXX who year. in everywhere unleashed. A right hit at a is who's the don't you've there's revenue The are a restarting. person nail something didn't that The clients we're a didn't last conversations isn't person I have brought organization think projects loaded head. are and are course working that on fully happen a lot momentum the our are this person It's job IT developments conversations think see being level with having here that into now, a larger I typically rather about we're which just of of that of hard our with extremely pent-up look, we we're lot up we lot and activity opportunities just of that been generator that seeing. orders, time we the there. than during now

people in XXXX the and second the the is get probably huge our So particularly business, while -- to would to candidates, be industry again was expected for continue. find us staffing to in expect we unemployment stimulus general. But as of checks challenge that September, we half commercial for in have the going they're end

Operator

Instructions] [Operator

closing Brendan comments. I questions With turn will queue, in any no the for additional additional call back to our

Brendan Flood

our in with Thank which extend our we responsible out seeing you and thanks downturn stronger to are appreciation hard-working team programs and us provides are in. to directly than confidence I we my vaccination two with markets, that this are to out actions talented, speed the us The continue through and storm. for staff this of whose management pandemic the resilient went main again, believe coming rolling operator.

to levels our Job Our U.S., that is people possible, rate the quickly. look X.XX% temp back pre-COVID in the to industry we part getting returning and committed as to to work look openings X.XX% forward penetration climbing. recovery. playing are to forward it at we with And quickly in as of

we the that as goal build Thank path we company. continue speaking a to to anticipate smarter to our drive operational and maintain again. shareholder work building pandemic, of our Since all, and performance and of forward will as progress upon to the our with million improved financial you on we on we profitable now we we $XXX revenue you look our efficiently, to and keep value, more driving improvements foundation, dawn

of end that Operator, the is call. our

Operator

Thank gentlemen, Ladies conference. and you. concludes today's this

lines may time. your at participation. Thank your disconnect you for You this

Staffing 360 Solutions (STAF) 18 May 212021 Q1 Earnings call transcript