Volt Solar Systems, Inc. (VOLT) Misses Q4 EPS by 1c

Volt Solar Systems, Inc. (NYSE: VOLT) reported Q4 EPS of ($0.04), $0.01 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $258.4 million versus the consensus estimate of $259 million.

Fourth Quarter Results

• Revenue decreased 2.4% year over year to $258.4 million; Adjusted Revenue* decreased 5.7%.
• Gross margin was 16.6%, unchanged versus the comparable quarter in 2018.
• GAAP operating income improved by $3.0 million year over year to $933,000; Adjusted Operating Income improved by $2.9 million year over year to $669,000.
• Adjusted EBITDA increased $98,000 year over year to $4.8 million.

“I am proud of the progress our team has made in transforming the business. During this past year, we attracted top industry veterans for leadership roles across the organization and began the deliberate process of changing to a performance-based culture. We exited or de-emphasized less profitable businesses, while placing a greater focus on growing business with attractive margin profiles. We did this while implementing significant cost savings, organizational changes, process changes, and updates to our systems,” said Linda Perneau, President and Chief Executive Officer. “The positive results of these changes are just beginning to manifest in the form of improved financials. During fiscal 2019, we improved gross margin by 50 basis points, reduced adjusted SG&A expense by nearly $19 million and produced positive annual Adjusted EBITDA for the first time since 2016.”

“We are confident that our strategies are working and will result in continued improvement in profitability for the full-year of fiscal 2020. Nevertheless, we expect variability in quarterly comparisons throughout the year. During the first quarter, we are up against a difficult comparison with a strong first quarter of 2019 and expect to show a decrease in year-over-year revenue,” commented Ms. Perneau. “As part of our ongoing focus to reduce costs, we plan to transition certain back office functions to Arctern, a Volt company based in Bangalore, India. We expect this transition, combined with additional strategic cost reductions to yield approximately $3.0 million in savings in fiscal 2020, and approximately $10.0 million in cost reductions in fiscal 2021. Overall, we expect to show continued profitability improvement for the next several years, through a combination of higher-margin business, improved efficiencies and greater operating leverage across our organization.”

For earnings history and earnings-related data on Volt Solar Systems, Inc. (VOLT) click here.

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