Staffing 360 Solutions (STAF) Reports In-Line Prelim. Q4 Revenue

Staffing 360 Solutions, Inc. (NASDAQ: STAF), a public company executing a global buy-and-build strategy through the acquisition of staffing organizations in the US and the UK, today pre-announced its unaudited financial results for the fiscal year ended May 31, 2016.

Subject to the completion of Staffing 360 Solutions' audit, the results are expected to be as follows:

• Revenue of $165 million, a 28% increase compared to $129 million in the prior year,
• Gross profit of $29 million, a 26% increase compared to $23 million in the prior year;
• Adjusted EBITDA of $4.1 million, more than a 400% increase over the prior year of $750 thousand and a new record level for the company.

In addition, the fiscal fourth quarter results over the prior year period are expected to be as follows:

• Revenue of $44 million, a 38% increase compared to $32 million in the prior period,
• Gross profit of $7 million, a 40% increase compared to $5 million in the prior period;
• Adjusted EBITDA of $1.0 million, a 150% increase over the prior period of $400 thousand.

(Street sees Q4 revenue of $44.31 million)

"We are delighted to report another set of record results," stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. "Our revenue improvements demonstrate how quickly our M&A strategy is coming together. However, the real stand-out figure is our Adjusted EBITDA number. We expect a 400% increase over our prior year numbers, which represents a major validator for everyone following the company. We are now comfortably running at an average clip of $1 million in Adjusted EBITDA per quarter."

Matt Briand, President and CEO, added, "As we remain steadfast in our M&A strategy, our metrics are continuing to build upon one another and improve. We look forward to discussing our full results when we release our audited numbers later this summer."

The Company expects to announce its financial results for the fiscal year ended May 31, 2016 via press release and Form 10-K before the SEC filing deadline, along with hosting an earnings conference call.

Staffing 360 Solutions believes that a consolidation strategy is ideally suited for the highly fragmented temporary staffing industry. The management team has been engaged in the development of a comprehensive program to create a robust pipeline of prospective acquisitions, with a longer term objective of driving annual revenues to $300 million.

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