Staffing 360 Solutions (STAF) Reports Prelim. Q1 Revenue of $40.7M

Staffing 360 Solutions, Inc. (NASDAQ: STAF), a public company executing an international buy-and-build strategy through the acquisition of staffing organizations in the United States and in the United Kingdom, today pre-announced its unaudited financial results for the fiscal first quarter ended April 1, 2017.

Subject to the completion of the review of Staffing 360 Solutions' full financial statements and filing with the Securities and Exchange Commission, the results for fiscal Q1 2017 are expected to be as follows:

• Revenue of $40.7 million, a 5.7% decrease from $43.2 million in Q1 2016. On a constant currency basis, the decrease was 3.4%;
• Gross profit of $7.3 million, a 1.4% increase over $7.2 million in Q1 2016; On a constant currency basis, the gain was 4.4%;
• Net loss attributable to common stock of $3.6 million compared to $2.6 million in Q1 2016. The current year includes non-cash accounting charges of $1.4 million associated with the amendment and subsequent pay off of convertible notes;
• Adjusted EBITDA of $1.0 million, a 46% increase over $0.7 million in Q1 2016. Impact of currency was not significant.

"Although we experienced a dip in revenue compared to the same time last year, our gross profit and margin continued to improve, our SG&A overheads reduced and this led to a continued growth in our adjusted EBITDA," stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. "The Net Loss attributable to common stock included a $1.4 million non-cash charge for refinancing actions taken in the quarter."

Mr. Flood continued, "Although we often see a dip in revenue in the winter months, revenue was down year-over-year due to several factors, including four fewer working days in this quarter than the same period of 2016 costing us $1.8 million, an exchange rate drop of $1.0 million and the reduction in demand from one of our largest clients costing us $0.8 million that we believe is now behind us. We expect some softness in revenue to continue across the second quarter but, as mentioned on our conference call, we have several new contracts that are expected to ramp up in mid-Summer and to have an important impact on the second half of the year. By generating improvements of our bottom line figures in flat and down quarters through our continued synergies and cost cutting measures, we expect to see continuing improvement in metrics like Adjusted EBITDA as sales begin to accelerate throughout the rest of the year."

The Company expects to file its full results for the fiscal first quarter ended April 1, 2017 on Form 10-Q before the SEC filing deadline in mid-May, along with hosting an earnings conference call.

For more information about Staffing 360 Solutions and complete investor materials such as investor presentations, white papers and webcasts of past earnings calls, please visit: www.staffing360solutions.com/res.html.

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