EARNINGS PRESENTATION
Q2 2021
Forward Looking Statements
This presentation has been prepared by Volt Information Sciences, Inc. (the "Company") for investors, solely for informational purposes. It contains certain forward-looking statements, which may be identified by the use of forward-looking terminology, including the terms "may," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or, in each case, their negative, or other variations or comparable terminology. The forward-looking statements involve risks and uncertainties, some of which cannot be predicted or quantified. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. The Company derives many of its forward-looking statements from its operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it is difficult to predict the impact of known factors and to anticipate all factors that could affect actual results. As such, actual results may differ materially from those projected or implied and you should not place undue reliance on these forward-looking statements. For a discussion concerning the factors that could cause these differences, please refer to the Company's filings with the Securities and Exchange Commission and on its website at www.volt.com.
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This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
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2
Quarterly Trend
(Dollars in millions) | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | ||||||
Adjusted Revenue | $ | 209.7 | $ | 185.9 | $ | 211.1 | $ | 218.0 | $ | 222.1 | |
Gross Margin | 15.6% | 16.1% | 16.2% | 15.0% | 16.4% | ||||||
Selling, Administrative and Other Operating | |||||||||||
Costs | $ | 36.2 | $ | 31.3 | $ | 30.7 | $ | 33.7 | $ | 33.0 | |
Adjusted Operating Income (Loss) | $ | (4.4) | $ | (4.2) | $ | (11.5) | $ | (1.7) | $ | 2.7 | |
Excluding Restructuring and Impairment | $ | (4.0) | $ | (1.3) | $ | 3.5 | $ | (1.1) | $ | 3.5 | |
Adjusted EBITDA | $ | (1.4) | $ | 1.0 | $ | 5.9 | $ | 0.9 | $ | 6.0 | |
Working Days | 65 | 63 | 64 | 59 | 65 | ||||||
Average Daily Revenue | $ | 3.2 | $ | 3.0 | $ | 3.3 | $ | 3.7 | $ | 3.4 | |
Average Daily Revenue Year over Year Change | -14.1% | -18.4% | -11.0% | 0.4% | 5.9% |
See appendix for reconciliation of Adjusted Revenue, Adjusted Selling, Administrative and Other Operating Costs and Adjusted Operating Income (Loss)
3Q2020
-
Revenue began to rebound at the end of the
3rd quarter as customers returned to work and business expanded after the COVID-19 shutdowns which began mid-2nd quarter - Additional cost management actions in response to COVID-19
- Consolidation and exit of offices result in $2.4M impairment charge
4Q2020
- Continued sequential revenue growth from existing and new clients
- Consolidation of real estate footprint at Orange CA campus results in $14.5M impairment charge
1Q2021
- Continued sequential revenue growth from existing and new clients
- Improved margins due to lower employee related costs and improved sales mix
2Q2021
- Average daily revenue declined from seasonal ramp up in 1Q21 offset by growth from existing and new clients as well as improvements in direct hire revenue
- Improved margins due to lower employee
related costs and improved sales mix | 3 |
Adjusted Selling, Administrative and Other Operating Costs
• In 2020, implemented phases 1- 3 of strategic cost reductions
• Continue to actively pursue further options to increase financial flexibility
See appendix for reconciliation of Adjusted Selling, Administrative and Other Operating Costs
4
Path to Profitability - 2nd Quarter Highlights
Revenue | + | Improving | + | Manage | = | 3% Adjusted |
EBITDA | ||||||
Growth | Gross Margin | SG&A Expense | ||||
(Goal) | ||||||
Positive year-over-year
Adjusted Revenue
growth continues from new business wins in a combination of retail and mid-market clients, combined with the expansion of business with existing clients
Improved margins due
to lower employee related costs and improved sales mix
Sequential growth in direct hire revenue
Selling, | 2nd Quarter Adjusted |
Administrative and | EBITDA improved |
Operating Costs | $7.4M year over year |
reduced by 9.0% | 2Q21 Adjusted |
year over year | |
EBITDA 2.7% | |
2Q20 Adjusted | |
EBITDA -0.7% |
See appendix for reconciliation of Adjusted Revenue and Adjusted Selling, Administrative and Other Operating Costs | 5 |
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Volt Information Sciences Inc. published this content on 15 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2021 07:51:02 UTC.