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Form 8-K VOLT INFORMATION SCIENCE For: Jan 09

January 9, 2019 4:23 PM

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  January 9, 2019
 
VOLT INFORMATION SCIENCES, INC.
(Exact name of registrant as specified in its charter)
 
New York
001-9232
13- 5658129
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification Number)

50 Charles Lindbergh Blvd., Uniondale, New York
11553
(Address of principal executive offices)
(Zip Code)


(516) 228-6700
(Registrant’s Telephone Number, Including Area Code)

1133 Avenue of the Americas, New York, New York 10036
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company £
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          £
 
 


 
 
Item 2.02
Results of Operations and Financial Condition
 
On January 9, 2019, Volt Information Sciences, Inc. issued a press release announcing earnings for its fiscal year ended October 28, 2018.  A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety.
 

 
Item 9.01
Financial Statements and Exhibits
 
                            (d)          Exhibits
 
Exhibit No.
Description of Exhibit
   
99.1
Press Release of Volt Information Sciences, Inc. dated January 9, 2019 announcing earnings for its fiscal year ended October 28, 2018.


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  VOLT INFORMATION SCIENCES, INC.  
       
       
 
By
 /s/ Paul Tomkins  
    Paul Tomkins, Senior Vice President  
    and Chief Financial Officer  
       
Date:  January 9, 2019
 

EXHIBIT INDEX
 
Exhibit No.
Description of Exhibit




Exhibit 99.1
 
 

Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results

Company Shows Improved Results and Expects to Achieve Positive Year-Over-Year Revenue Growth in its
North American Staffing Segment during First Quarter of Fiscal 2019

NEW YORK, NY, January 9, 2019 – Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN:  VISI), an international provider of staffing services and managed service programs, today reported improved results for its fiscal 2018 fourth quarter. In addition, Volt reported its full year ended October 28, 2018 results. Key highlights include:
 
·
Fourth quarter total Company net revenue of $264.8 million declined 8.2%; On a same-store-basis1, net revenue decline of 2.8% improved 780 basis points compared to a 10.6% year-over-year decline in the fourth quarter of 2017
 
·
Total Company gross margin in the fourth quarter of 2018 was 16.6% slightly improved from 16.5%; On a same-store-basis, gross margin increased 160 basis points year-over-year
 
·
Total Company fourth quarter loss from continuing operations of $2.9 million; Adjusted income from continuing operations of $1.5 million, up from an adjusted loss of $7.0 million in the previous year
 
·
Total Company fourth quarter adjusted EBITDA of $4.7 million, up from $0.1 million in the prior period
 
·
Fourth quarter North American Staffing segment revenues of $220.5 million; net revenue decline of 1.6%, compared to a 12.1% year-over-year decline in the fourth quarter of 2017
 
·
Fourth quarter operating income for North American Staffing segment of $8.2 million increased 48.3% compared to the prior year period
 
Commenting on Volt’s fourth quarter results, Linda Perneau, President and CEO, said, “I am pleased with our fourth quarter performance highlighted by improvement in same-store revenue, gross margin expansion and careful expense management, which collectively resulted in significant growth in adjusted income from continuing operations.  At the top line, we are beginning to realize the benefits from changes to the North American Staffing segment’s organizational structure, designed to strengthen its service delivery, coupled with a much more robust sales engine. In addition, our focus on driving retail growth in commercial and professional job categories, as well as our renewed emphasis on direct hire business, contributed to a 160 basis point year-over-year improvement in gross margin on a same-store basis.”

Ms. Perneau continued, “Our operational performance in the fourth quarter was solid, evidenced by revenue improvements as compared to the prior year in our North American Staffing segment during each month of the quarter. During the last month of fiscal 2018, we generated year-over-year positive revenue growth in our North American Staffing Segment for the first time in many years. So far in the first quarter of fiscal 2019, that trend is continuing. This gives us confidence that this segment will generate positive year-over-year revenue growth during the first quarter of fiscal 2019. As momentum continues to build across the enterprise, I am very proud of the team’s execution of our strategy and I anticipate a strong start to the new year.”
 
¹ Excludes net revenue contributed from businesses sold or exited during the past year and the effect of foreign exchange rate fluctuations


Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 2 of 10
 
Fiscal 2018 Fourth Quarter Results
Total revenue for the fiscal 2018 fourth quarter was $264.8 million, down $23.7 million, or 8.2%, compared to $288.5 million in the fourth quarter of fiscal 2017. On a same-store basis, net revenue declined 2.8% year-over-year excluding net revenue contributed from businesses sold or exited during the past year and the effect of currency fluctuations.
 
Total gross margin in the fourth quarter of fiscal 2018 was 16.6%, an improvement of 160 basis points year-over-year, adjusted for businesses sold. The margin improvement was driven by a favorable California FUTA adjustment, lower worker compensation claims, and a better mix of higher margin business.
 
Selling, administrative and other operating costs in the fourth quarter of fiscal 2018 decreased $8.8 million, or 17.7%, to $41.3 million from $50.1 million in the fourth quarter of fiscal 2017. Excluding businesses sold or exited, selling, administrative and other operating costs for the fourth quarter of fiscal 2018 decreased 13.2% from the prior year period. The decrease was primarily due to ongoing cost reductions throughout the business including lower labor and consulting costs.

Net loss from continuing operations was $2.9 million in the fourth quarter of fiscal 2018, compared to net income from continuing operations of $39.8 million in the fourth quarter of fiscal 2017. Net income in the fourth quarter of fiscal 2017 benefitted by a gain on the sale of the Company’s quality assurance business totaling $48.0 million. On an adjusted (Non-GAAP) basis, the Company reported positive net income from continuing operations of $1.5 million in the fourth quarter of fiscal 2018, compared to an adjusted net loss from continuing operations of $7.0 million in the fourth quarter of fiscal 2017.

Adjusted EBITDA, which is a Non-GAAP measure, was $4.7 million in the fiscal 2018 fourth quarter, compared to Adjusted EBITDA of $0.1 million in the year ago period. Adjusted EBITDA excludes the impact of special items, interest expense, income taxes, depreciation and amortization expense, other income/loss and share-based compensation expense.

For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.

Fiscal 2018 Full Year Results
Total revenue for the full year of fiscal 2018 was $1,039.2 million, down $155.2 million, or 13.0%, compared to total revenue of $1,194.4 million for the full year of fiscal 2017. On a same-store basis, net revenue declined 6.9% year-over-year excluding net revenue contributed from businesses sold or exited during the past year and the effect of currency fluctuations.

Net loss from continuing operations was $32.7 million for the full year of fiscal 2018, down from net income of $28.8 million from the full year of fiscal 2017. Net income in fiscal 2017 included $3.1 million of restructuring and severance costs and settlement charges, offset by a $52.0 million gain on the sale of Maintech, a non-core business and the sale of the Company’s quality assurance business. Adjusted net loss from continuing operations, which is a Non-GAAP measure, was $26.9 million for the full year of fiscal 2018, compared to an adjusted net loss of $23.3 million from the full fiscal year of 2017.   Adjusted EBITDA, which is a Non-GAAP measure, was a loss of $13.1 million for the full year of fiscal 2018, up $12.2 million from a loss of $0.9 million in the year ago period. Adjusted EBITDA excludes the impact of special items, interest expense, income taxes, depreciation and amortization expense, other income/loss and share-based compensation expense.


Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 3 of 10
 
For a reconciliation of the GAAP and Non-GAAP financial results, please see the tables at the end of this press release.

Conference Call and Webcast
A conference call and simultaneous webcast to discuss the fiscal 2018 fourth quarter and full year financial results will be held today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Volt’s President and CEO Linda Perneau and CFO Paul Tomkins will host the conference call. Participants may listen in via webcast by visiting the Investor & Governance section of Volt’s website at www.volt.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. The conference call can also be accessed by dialing 877-407-9039 (201-689-8470 for international callers) and reference the “Volt Information Sciences Earnings Conference Call.”

Following the call, an audio replay will be available beginning Wednesday January 9, 2019 at 7:30 p.m. Eastern Time through Wednesday, January 23, 2019 at 11:59 p.m. Eastern Time. To access the replay, dial 844-512-2921 (412-317-6671 for international callers) and enter the Conference ID # 13685608. A replay of the webcast will also be available for 90 days upon completion of the call, accessible through the Company’s website at www.volt.com in the Investors & Governance section.

About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a global provider of staffing services (traditional time and materials-based as well as project-based). Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services, and managed staffing services programs supporting primarily administrative, technical, information technology, light-industrial and engineering positions. Our managed staffing programs involve managing the procurement and on-boarding of contingent workers from multiple providers. Our customer care solutions specialize in serving as an extension of our customers’ consumer relationships and processes including collaborating with customers, from help desk inquiries to advanced technical support. Our complementary businesses offer customer care call centers, customized talent, and supplier management solutions to a diverse client base. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation, and utilities. For more information, visit www.volt.com.


Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 4 of 10
 
Forward-Looking Statements
This press release contains forward-looking statements, including North American Staffing segment’s revenue outlook for the first quarter of fiscal 2019, that are subject to a number of known and unknown risks, including, among others, general economic, competitive and other business conditions, the degree and timing of customer utilization and rate of renewals of contracts with the Company, and the degree of success of business improvement initiatives that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Information concerning these and other factors that could cause actual results to differ materially from those in the forward-looking statements are contained in company reports filed with the Securities and Exchange Commission.  Copies of the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission, are available without charge upon request to Volt Information Sciences, Inc., 50 Charles Lindbergh Blvd., Suite 206, Uniondale, NY 11553 Attention: Shareholder Relations. These and other SEC filings by the Company are also available to the public over the Internet at the SEC’s website at http://www.sec.gov and at the Company’s website at http://www.volt.com in the Investor & Governance section.

Note Regarding the Use of Non-GAAP Financial Measures
The Company has provided certain Non-GAAP financial information, which includes adjustments for special items and certain line items on a constant currency basis, as additional information for its segment revenue, consolidated net income (loss), segment operating income (loss) and Adjusted EBITDA.  These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies.
 
The Company believes that the presentation of Non-GAAP measures on a constant currency basis, eliminating special items and the impact of businesses sold provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations because they permit evaluation of the results of the Company without the effect of currency fluctuations, special items or the impact of businesses sold that management believes make it more difficult to understand and evaluate the Company’s results of operations. Special items include impairments, restructuring and severance as well as certain income or expenses not indicative of the Company’s current or future period performance and are more fully disclosed in the tables.
 

Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 5 of 10
 
Adjusted EBITDA is defined as earnings or loss before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation expense as well as the special items described above.
 
Adjusted EBITDA is a performance measure rather than a cash flow measure.  The Company believes the presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management.
 
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results of operations and operating cash flows as reported under GAAP. For example, Adjusted EBITDA does not reflect capital expenditures or contractual commitments; does not reflect changes in, or cash requirements for, the Company’s working capital needs; does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and does not reflect cash required to pay income taxes.
 
The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate these measures in the same fashion.
 
Investor Contacts:
Volt Information Sciences, Inc.
[email protected]

Lasse Glassen
Addo Investor Relations
[email protected]
424-238-6249

--Financial Tables to Follow--
 


Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 6 of 10

 
Results of Operations
                             
(in thousands, except per share data)
                             
   
Three Months Ended
   
Twelve Months Ended
 
   
October 28, 2018
   
July 29,
2018
   
October 29, 2017
   
October 28, 2018
   
October 29, 2017
 
                               
Net revenue
 
$
264,805
   
$
257,808
   
$
288,483
   
$
1,039,170
   
$
1,194,436
 
Cost of services
   
220,797
     
221,448
     
240,816
     
885,492
     
1,007,041
 
Gross margin
   
44,008
     
36,360
     
47,667
     
153,678
     
187,395
 
                                         
Selling, administrative and other operating costs
   
41,261
     
42,222
     
50,138
     
173,337
     
197,130
 
Restructuring and severance costs
   
4,512
     
3,108
     
307
     
8,242
     
1,379
 
Impairment and settlement charges
   
351
     
-
     
1,404
     
506
     
1,694
 
Gain from divestitures
   
-
     
-
     
(48,033
)
   
-
     
(51,971
)
Operating income (loss)
   
(2,116
)
   
(8,970
)
   
43,851
     
(28,407
)
   
39,163
 
                                         
Interest income (expense), net
   
(627
)
   
(552
)
   
(1,026
)
   
(2,592
)
   
(3,751
)
Foreign exchange gain (loss), net
   
491
     
(294
)
   
(218
)
   
403
     
(1,637
)
Other income (expense), net
   
(252
)
   
(296
)
   
(375
)
   
(1,131
)
   
(1,562
)
Income (loss) before income taxes
   
(2,504
)
   
(10,112
)
   
42,232
     
(31,727
)
   
32,213
 
Income tax provision
   
382
     
1,306
     
2,458
     
958
     
3,388
 
Income (loss) from continuing operations
   
(2,886
)
   
(11,418
)
   
39,774
     
(32,685
)
   
28,825
 
Loss from discontinued operations
   
-
     
-
     
(1,693
)
   
-
     
(1,693
)
Net income (loss)
 
$
(2,886
)
 
$
(11,418
)
 
$
38,081
   
$
(32,685
)
 
$
27,132
 
                                         
Per share data:
                                       
Basic:
                                       
Income (loss) from continuing operations
 
$
(0.14
)
 
$
(0.54
)
 
$
1.90
   
$
(1.55
)
 
$
1.38
 
Loss from discontinued operations
   
-
     
-
     
(0.08
)
   
-
     
(0.08
)
Net income (loss)
 
$
(0.14
)
 
$
(0.54
)
 
$
1.82
   
$
(1.55
)
 
$
1.30
 
Weighted average number of shares
   
21,072
     
21,071
     
20,967
     
21,051
     
20,942
 
                                         
Diluted:
                                       
Income (loss) from continuing operations
 
$
(0.14
)
 
$
(0.54
)
 
$
1.90
   
$
(1.55
)
 
$
1.37
 
Loss from discontinued operations
   
-
     
-
     
(0.08
)
   
-
     
(0.08
)
Net income (loss)
 
$
(0.14
)
 
$
(0.54
)
 
$
1.82
   
$
(1.55
)
 
$
1.29
 
Weighted average number of shares
   
21,072
     
21,071
     
20,982
     
21,051
     
21,017
 
                                         
Segment data:
                                       
                                         
Net revenue:
                                       
North American Staffing
 
$
220,540
   
$
215,679
   
$
224,219
   
$
860,544
   
$
919,260
 
International Staffing
   
27,289
     
28,579
     
30,163
     
117,351
     
119,762
 
North American MSP
   
8,208
     
6,959
     
9,423
     
29,986
     
36,783
 
Corporate and Other
   
9,708
     
7,456
     
26,585
     
35,228
     
125,089
 
Eliminations
   
(940
)
   
(865
)
   
(1,907
)
   
(3,939
)
   
(6,458
)
Net revenue
 
$
264,805
   
$
257,808
   
$
288,483
   
$
1,039,170
   
$
1,194,436
 
                                         
Operating income (loss):
                                       
North American Staffing
 
$
8,197
   
$
2,961
   
$
5,526
   
$
12,103
   
$
17,153
 
International Staffing
   
1,000
     
677
     
944
     
2,397
     
2,848
 
North American MSP
   
844
     
107
     
809
     
1,633
     
2,613
 
Corporate and Other
   
(12,157
)
   
(12,715
)
   
(11,461
)
   
(44,540
)
   
(35,422
)
Gain from divestiture
   
-
     
-
     
48,033
     
-
     
51,971
 
Operating income (loss)
 
$
(2,116
)
 
$
(8,970
)
 
$
43,851
   
$
(28,407
)
 
$
39,163
 
                                         
Work days
   
64
     
63
     
64
     
251
     
251
 
 


Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 7 of 10
 
Condensed Consolidated Statements of Cash Flows
           
(in thousands)
           
   
Twelve Months ended
 
   
October 28, 2018
   
October 29, 2017
 
             
Cash and cash equivalents, beginning of the period
 
$
37,077
   
$
6,386
 
                 
Cash used in all other operating activities
   
(25,525
)
   
(9,586
)
Changes in operating assets and liabilities
   
20,029
     
14,155
 
Net cash provided by (used in) operating activities
   
(5,496
)
   
4,569
 
                 
Purchases of property, equipment, and software
   
(3,565
)
   
(9,312
)
Proceeds from divestitures
   
-
     
81,102
 
Net cash provided by all other investing activities
   
331
     
876
 
Net cash provided by (used in) investing activities
   
(3,234
)
   
72,666
 
                 
Net repayment of borrowings
   
-
     
(47,050
)
Debt issuance costs
   
(1,469
)
   
(1,190
)
Net cash used in all other financing activities
   
(271
)
   
(50
)
Net cash used in financing activities
   
(1,740
)
   
(48,290
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
(1,844
)
   
1,746
 
                 
Net increase (decrease) in cash and cash equivalents
   
(12,314
)
   
30,691
 
                 
Cash and cash equivalents, end of the period
 
$
24,763
   
$
37,077
 
                 
Cash paid during the period:
               
Interest
 
$
2,765
   
$
3,840
 
Income taxes
 
$
3,341
   
$
3,521
 

 

Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 8 of 10
 
Condensed Consolidated Balance Sheets
           
(in thousands, except share amounts)
           
   
October 28, 2018
   
October 29, 2017
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
24,763
   
$
37,077
 
Restricted cash and short-term investments
   
14,844
     
20,544
 
Trade accounts receivable, net of allowances of $759 and $1,249, respectively
   
157,445
     
173,818
 
Recoverable income taxes
   
96
     
1,643
 
Other current assets
   
7,348
     
11,755
 
TOTAL CURRENT ASSETS
   
204,496
     
244,837
 
Other assets, excluding current portion
   
7,808
     
10,851
 
Property, equipment and software, net
   
24,392
     
29,121
 
TOTAL ASSETS
 
$
236,696
   
$
284,809
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Accrued compensation
 
$
27,120
   
$
24,504
 
Accounts payable
   
33,498
     
36,895
 
Accrued taxes other than income taxes
   
15,275
     
20,467
 
Accrued insurance and other
   
23,335
     
30,282
 
Short-term borrowings
   
-
     
50,000
 
Income taxes payable
   
1,097
     
808
 
TOTAL CURRENT LIABILITIES
   
100,325
     
162,956
 
Accrued insurance and other, excluding current portion
   
13,478
     
10,828
 
Deferred gain on sale of real estate, excluding current portion
   
22,216
     
24,162
 
Income taxes payable, excluding current portion
   
600
     
1,663
 
Deferred income taxes
   
510
     
1,206
 
Long-term debt
   
49,068
     
-
 
TOTAL LIABILITIES
   
186,197
     
200,815
 
                 
Commitments and contingencies
               
                 
STOCKHOLDERS’ EQUITY
               
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none
   
-
     
-
 
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 shares; Outstanding - 21,179,068 and 21,026,253 shares, respectively
   
2,374
     
2,374
 
Paid-in capital
   
79,057
     
78,645
 
Retained earnings
   
9,738
     
45,843
 
Accumulated other comprehensive loss
   
(7,070
)
   
(5,261
)
Treasury stock, at cost; 2,558,935 and 2,711,750 shares, respectively
   
(33,600
)
   
(37,607
)
TOTAL STOCKHOLDERS’ EQUITY
   
50,499
     
83,994
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
236,696
   
$
284,809
 

 

Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 9 of 10
 
GAAP to Non-GAAP Reconciliations
(in thousands)
 
   
Three Months Ended
   
   
October 28, 2018
     
October 29, 2017
   
Reconciliation of GAAP income (loss) from continuing operations to Non-GAAP net income (loss) from continuing operations:
                   
GAAP income (loss) from continuing operations
 
$
(2,886
)
   
$
39,774
   
  Selling, administrative and other operating costs
   
(486
)
(a)
   
(486
)
(a)
  Restructuring and severance costs
   
4,512
       
307
   
 Settlement and impairment charges
   
351
       
1,404
 
(b)
  Gain from divestitures
   
-
       
(48,033
)
(c)
Non-GAAP income (loss) from continuing operations
 
$
1,491
     
$
(7,034
)
 
                         
   
Three Months Ended
   
   
October 28, 2018
     
October 29, 2017
   
Reconciliation of GAAP income (loss) from continuing operations to Adjusted EBITDA:
                   
GAAP income (loss) from continuing operations
 
$
(2,886
)
   
$
39,774
   
  Selling, administrative and other operating costs
   
(486
)
(a)
   
(486
)
(a)
  Restructuring and severance costs
   
4,512
       
307
   
  Settlement and impairment charges
   
351
       
1,404
 
(b)
  Gain from divestitures
   
-
       
(48,033
)
(c)
  Depreciation and amortization
   
1,694
       
2,407
   
  Share-based compensation expense
   
753
       
644
   
  Total other (income) expense, net
   
388
       
1,619
   
  Provision for income taxes
   
382
       
2,458
   
Adjusted EBITDA
 
$
4,708
     
$
94
   
 
Special item adjustments consist of the following:
(a)
Relates to the amortization of the gain on the sale of the Orange, CA facility, which is included in Selling, administrative and other operating costs.
(b)
Relates to the settlement charge associated with the early payment of the NewNet note.
(c)
Relates to the gain on the sale of the quality assurance testing division of the Technology Outsourcing Services and Solutions segment.
 
 

Volt Reports Fiscal 2018 Fourth Quarter and Full Year Results
January 9, 2019
Page 10 of 10
 
GAAP to Non-GAAP Reconciliations
(in thousands)
 
   
Twelve Months Ended    
    
   
October 28, 2018
     
October 29, 2017
   
Reconciliation of GAAP income (loss) from continuing operations to Non-GAAP net income (loss) from continuing operations:
                   
GAAP income (loss) from continuing operations
 
$
(32,685
)
   
$
28,825
   
  Selling, administrative and other operating costs
   
(1,944
)
(a)
   
(1,944
)
(a)
  Restructuring and severance costs
   
8,242
       
1,379
   
  Settlement and impairment charges
   
506
 
(b)
   
1,694
 
(e)
  Gain from divestitures
   
-
       
(51,971
)
(f)
  Income tax benefit
   
(1,052
)
(c)
   
(1,283
)
(g)
Non-GAAP income (loss) from continuing operations
 
$
(26,933
)
   
$
(23,300
)
 
                         
   
Twelve Months Ended   
    
   
October 28, 2018
     
October 29, 2017
   
Reconciliation of GAAP income (loss) from continuing operations to Adjusted EBITDA:
                   
GAAP income (loss) from continuing operations
 
$
(32,685
)
   
$
28,825
   
  Selling, administrative and other operating costs
   
(1,944
)
(a)
   
(1,944
)
(a)
  Restructuring and severance costs
   
8,242
       
1,379
   
  Settlement and impairment charges
   
506
 
(b)
   
1,694
 
(e)
  Gain from divestitures
   
-
       
(51,971
)
(f)
  Depreciation and amortization
   
7,209
       
8,025
   
  Share-based compensation expense
   
1,270
 
(d)
   
2,755
   
  Total other (income) loss, net
   
3,320
       
6,950
   
  Provision for income taxes
   
958
       
3,388
   
Adjusted EBITDA
 
$
(13,124
)
   
$
(899
)
 
 
Special item adjustments consist of the following:
(a)
Relates to the amortization of the gain on the sale of the Orange, CA facility, which is included in Selling, administrative and other operating costs.
(b)
Relates to previously purchased software module that is no longer in use.
(c)
Relates to a discrete tax benefit resulting from the expiration of uncertain tax positions in the first quarter of fiscal 2018.
(d)
Includes share-based compensation forfeited in accordance with the former chief executive officer’s separation agreement.
(e)
Relates to the settlement charge associated with the early payment of the NewNet note and impairment of previously purchased software module no longer in use.
(f)
Relates to the sale of Maintech, a non-core business and the sale of the quality assurance testing division of the Technology Outsourcing Services and Solutions segment.
(g)
Relates to a discrete tax benefit resulting from the resolution of uncertain tax positions upon the completion and effective settlement of the IRS audit of the Company’s fiscal 2004 through 2010 federal tax and associated state tax audits.
 

 

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