SOURCE: Staffing 360 Solutions, Inc.

Staffing 360 Solutions, Inc.

June 23, 2016 16:10 ET

Staffing 360 Solutions Pre-Announces Fiscal Year 2016 Results

Revenue for the Fiscal Year Expected to Be $165 Million, a 28% Increase, and Adjusted EBITDA Expected to Be $4.1 Million, a 400% Increase Over Prior Year

NEW YORK, NY--(Marketwired - June 23, 2016) - 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.

"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.

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

About Staffing 360 Solutions, Inc.

Staffing 360 Solutions, Inc. (NASDAQ: STAF) is a public company in the staffing sector engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the US and the UK. The Company believes the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $300 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering and IT staffing space. For more information, please visit: www.staffing360solutions.com.

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Non-GAAP Financial Measures

The Company uses financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in evaluating its financial and operational decision making regarding potential acquisitions, as well as a means to evaluate period-to period comparison. The Company presents these non-GAAP financial measures because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We refer you to the reconciliations below.

The Company defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, income taxes, depreciation and amortization, and amortization of non-cash stock-based compensation, non-recurring acquisition and restructuring expenses and goodwill impairment charges.

Forward-Looking Statements

Certain matters discussed within this press release are forward-looking statements including, but not limited to the timing and ability to enter into any additional acquisitions, as well as the size of future revenue. Although Staffing 360 Solutions, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Specifically, in order for the Company to achieve annualized revenues of $300 million, the Company will need to successfully raise sufficient capital, to consummate additional target acquisitions, successfully integrate any newly acquired companies, organically grow its business, successfully defend current and any potential future litigation, as well as various additional contingencies, many of which are unknown at this time and generally out of the Company's control. The Company can give no assurance that it will be able to achieve these objectives. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Staffing 360 Solutions' reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.

 
Staffing 360 Solutions, Inc. and Subsidiaries
Condensed Consolidated Non-GAAP Adjusted EBITDA Calculations
Comparing the Years Ended May 31, 2016 and 2015
(All Amounts in Millions)
(Unaudited)
             
   For the Years Ended May 31,  For the Three Months Ended May 31,
             
   2016  2015  2016  2015
             
                 
Net Loss Attributable to STAF  $(8.6)  $(17.5)  $(1.9)  $(4.0)
                 
Adjustments:                
 Interest Expense  $2.6  $1.7  $0.7  $0.3
 Benefit (Provision) For Taxes   0.1   (0.1)   0.1   0.0
 Depreciation and Amortization   5.8   6.9   1.5   0.9
 Non-Recurring Expenses   2.0   2.1   0.3   0.9
 Stock Compensation *   2.2   1.8   0.3   1.4
 Restructuring Changes   -   5.9   -   0.9
                 
Total Adjustments   12.7   18.3   2.9   4.4
                 
Adjusted EBITDA  $4.1  $0.8  $1.0  $0.4
                 

* Issued to employees, directors and third parties.

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Contact Information

  • Investor Relations Firm:

    PCG Advisory Group
    Stephanie Prince
    Managing Director
    646.762.4518
    Email contact


    Corporate Investor Contact:


    Staffing 360 Solutions, Inc.
    Darren Minton
    Executive Vice President
    212.634.6413
    Email contact


    Financial Contact:


    Staffing 360 Solutions, Inc.
    David Faiman
    Chief Financial Officer
    212.634.6410
    Email contact