Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,262.56 89.32 0.55%
S&P 500 1,842.98 12.37 0.68%
NASDAQ 4,034.16 11.47 0.29%
Ticker Volume Price Price Delta
STOXX 50 3,127.27 35.75 1.16%
FTSE 100 6,575.89 34.28 0.52%
DAX 9,273.01 99.30 1.08%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

Volt Information Sciences Provides Update on Business Performance During the Fiscal Fourth Quarter and Fiscal Year 2012



  Volt Information Sciences Provides Update on Business Performance During the
  Fiscal Fourth Quarter and Fiscal Year 2012

Business Wire

NEW YORK -- February 5, 2013

Volt Information Sciences, Inc. (OTC: VISI) today provided a business update
and reported selected unaudited financial information for its fiscal fourth
quarter and fiscal year 2012 ended October 28, 2012. The Company noted that
due to the previously announced ongoing accounting review and anticipated
restatement, all numbers presented in this release are estimates.

The Staffing Services Segment, which accounts for a majority of the Company’s
total revenue, had approximately $501 million of revenue in the fourth quarter
2012 compared to approximately $487 million for the same period in 2011, a 3%
increase. For the fiscal year 2012, the Staffing Services Segment had
approximately $1,957 million of revenue compared to approximately $1,885
million of revenue in the same period in fiscal 2011, a 4% increase. The
increase for the fourth quarter and fiscal year was primarily the result of
the recognition of previously deferred revenue, increased contingent staffing
and associate vendor employees on assignment and increased technology
consulting and outsourcing services and solutions revenues.

On average, approximately 33,100 U.S. staffing employees were on assignment in
the quarter compared to approximately 31,900 in the fourth quarter of 2011,
and 32,000 for the fiscal year compared to 31,600 in the prior fiscal year.

The Telecommunications Services segment reported close to break-even operating
results and the Other segment reported a small operating profit for the fourth
quarter and fiscal year of 2012 and 2011. Results for the Computer Systems
Segment will be reported after the ongoing accounting review and anticipated
restatement is completed.

Liquidity

During fiscal 2012, the Company disbursed approximately $37 million in
connection with the restatement and related investigations and used
approximately $4 million in all other operating activities, used approximately
$5 million for capital expenditures net of $7 million received from the sale
of property and equipment, and disbursed approximately $2 million for the
acquisition of an additional 10% interest in a foreign subsidiary. Borrowings
under the accounts receivable securitization program increased by
approximately $30 million during fiscal 2012 and borrowings under all other
credit facilities increased approximately $2 million. The Company transferred
approximately $1 million during fiscal 2012 to restricted cash as collateral
for foreign currency borrowings and banking facilities.

On October 28, 2012, the Company had cash and cash equivalents of
approximately $27 million and an additional approximately $36 million of cash
restricted as collateral for foreign currency credit lines and banking
facilities. The Company also had approximately $30 million available from its
short-term financing program. Excluding approximately $9 million of
non-current debt, the Company’s consolidated borrowings were approximately
$146 million at October 28, 2012, which included approximately $25 million of
foreign currency borrowings used to hedge net investments in foreign
subsidiaries that are fully collateralized by restricted cash, and
approximately $120 million drawn under the $150 million short-term financing
program. The Company believes that it has sufficient liquidity to meet its
business requirements at current and projected business growth rates.

 
VOLT INFORMATION SCIENCES, INC.
Condensed Statements of Cash Flows

Unaudited, Estimated (in Thousands)
                       Three Months Ended               Fiscal Year Ended
                       October 28,       October        October 28,       October 30,
                                         30,
                       2012              2011           2012              2011
                                                                           
Cash and cash
equivalents at         $ 33,366          $33,278        $ 44,568          $ 51,084
beginning of
the period
                                                                           
Cash used in
connection
with                     (11,826 )       (9,619  )        (37,160 )         (46,777 )
restatement
and related
investigations
Net cash
provided by
(used in) all            1,656           10,357           (4,153  )         16,931   
other
operating
activities
Net cash (used
in) provided             (10,170 )       738              (41,313 )         (29,846 )
by operating
activities
                                                                           
Net cash
provided by
(used in)                2,634           (746    )        (6,838  )         (12,188 )
investing
activities
                                                                           
Net cash
restricted as            (328    )       912              (1,391  )         (3,762  )
collateral for
borrowings
Net cash
provided by
all other                1,229           10,386           31,705            39,280   
financing
activities
Net cash
provided by              901             11,298           30,314            35,518   
financing
activities
                                                                           
Net (decrease)
increase in              (6,635  )       11,290           (17,837 )         (6,516  )
cash and cash
equivalents
Cash and cash
equivalents at         $ 26,731          $44,568        $ 26,731          $ 44,568   
end of the
period
                                                                                     
Supplemental information - Cash
paid during the period for:
Interest                 $739            $701             $2,894            $2,614
Income taxes             $600            $1,171           $3,418            $6,047
 

Note: Due to the ongoing accounting review and anticipated restatement of the
Company’s historical financial statements (see discussion in the release
text), all financial numbers presented in this release should be considered
estimates.

 
Borrowing and Cash Positions (in Thousands)
                                                 October 28,       October 30,
                                                                  
                                                 2012              2011
                                                                    
Cash and cash equivalents                        $  26,731         $  44,568
Cash restricted as collateral for                   35,581            34,190
borrowings
Short-term investments                              5,611             5,511
Total cash, cash restricted for                  $  67,923         $  84,269
borrowings and short-term investments
                                                                    
Short-term borrowings, including current
portion of long-term debt
Accounts receivable securitization               $  120,000        $  90,000
program
Bank loans and other                                25,727            23,330
Long-term debt, excluding current                   9,123             9,817
portion
Total short-term borrowings and                  $  154,850        $  123,147
long-term debt
 

Note: Due to the ongoing accounting review and anticipated restatement of the
Company’s historical financial statements (see discussion in the release
text), all financial numbers presented in this release should be considered
estimates.

Preliminary Nature of Information

The financial information contained in this press release is preliminary and
unaudited, and has been prepared by management based on currently available
Company data. This financial information is subject to change based on the
completion of the Company’s ongoing review of accounting matters, the
completion of its fiscal 2012, 2011, 2010, 2009 and 2008 annual financial
statements, the restatement of stockholders’ equity as of the beginning of
fiscal year 2008 for the effects of adjustments prior to that year, and the
completion of the audit of the financial statements by the Company’s
independent accountants. The process of restating prior years’ financial
statements is expected to result in changes to the Company’s financial
statements for fiscal year 2008 due to the correction of errors in the
application of certain accounting principles and methodologies that
individually or in the aggregate may be material. There can be no assurance
that the amounts reported today will not differ, including materially, from
those reported when the Company files its 2012, 2011, 2010, 2009 and 2008 Form
10-Ks and other reports.

Since the re-evaluation is ongoing, the Company has limited the scope of the
financial information released today to the selected unaudited financial
information included in this release. The Company does not expect to be in a
position to announce audited financial results for fiscal 2012, 2011, 2010,
2009 or 2008 (or prior years) until appropriate accounting adjustments and
restated financial statements have been finalized for 2008 and prior periods,
its independent accountants have completed their audit procedures, and amended
Reports on Forms 10-K and 10-Q have been filed with the SEC for such related
periods.

Please refer to the Company’s reports filed with the SEC for further
information.

About Volt Information Sciences, Inc.

Volt Information Sciences, Inc. is a leading provider of global infrastructure
solutions in technology, information services and staffing acquisition for its
FORTUNE 100 customer base. Operating through an international network of
servicing locations, the Staffing Services Segment fulfills IT, engineering,
administrative, and industrial workforce requirements of its customers, for
professional search and temporary/contingent personnel as well as managed
services programs. Technology infrastructure services include
telecommunications engineering, construction, and installation; and IT managed
services and maintenance. Information-based services are primarily directory
assistance, operator services, database management, and directory printing.
Visit www.volt.com.

Forward-Looking Statements

This press release contains forward-looking statements. Words such as “may,”
“will,” “should,” “likely,” “could,” “seek,” “believe,” “expect,” “plan,”
“anticipate,” “estimate,” “optimistic,” “confident,” “project,” “intend,”
“strategy,” “designed to,” and similar expressions are intended to identify
forward-looking statements about the Company’s results of operations, future
plans, objectives, performance, intentions and expectations.  Forward-looking
statements are subject to a number of known and unknown risks, including,
among others, the timing of, and effects of the continued delay in, filing the
Company’s financial statements with the Securities and Exchange Commission,
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.

Contact:

Volt Information Sciences, Inc.
James Whitney, 212-704-7921
voltinvest@volt.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement