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Staffing 360 acquisitions boost revenue to $33.4 million

October 21, 2014

Staffing 360 Solutions Inc.’s (OTCBB: STAF) acquisition strategy fueled its growth. Net revenue rose to $33.4 million in its fiscal first quarter ended Aug. 31, up from $1.3 million in last year’s first quarter.

However, Staffing 360 reported a first-quarter net loss of $4.7 million compared with a net loss of $427,491 in the same quarter of 2013.

Staffing 360 Solutions launched in 2012 and pursues broad-spectrum staffing companies in the IT, financial, accounting, healthcare and cybersecurity industries. Its stated mission is to become a $300 million revenue business.

The company completed five acquisitions to-date, four of which took place after Aug. 31, 2013. The acquisitions include: The Revolution Group, renamed Cyber 360 Solutions; Control Solutions International Inc.; Initio International Holdings Limited, renamed Staffing 360 Solutions Limited;, Poolia UK; and PeopleSERVE.

Staffing 360 last week announced it applied to uplist its stock on the Nasdaq National Market. The company believes it will qualify for alternate bid price criteria, which would allow it to uplist to a national exchange based on a $2.00 bid price.

Quote

“Staffing 360 Solutions has grown over the past year through our highly targeted acquisition strategy,” said CFO Jeff Mitchell. “From a revenue perspective, the $33.4 million we generated in our most recent quarter is consistent with what is expected on a quarterly basis going forward, prior to additional acquisitions that we may close. Although we reported a net loss of approximately $4.7 million, approximately $3.8 million is attributable to non-cash charges and $500,000 in additional adjustments to EBITDA. In addition, the investment we have made building a highly-experienced management team is expected to be a major benefit going forward and will not require material additions as we grow, both organically and through acquisitions.”

Revenue

  Q1 2015  Q1 2014  % growth
Net sales $33,439,373 $1,343,375 nm

Gross margin

  Q1 2015  Q1 2014 
Gross margin 17.7% 29.2%

Net loss

  Q1 2015  Q1 2014  % growth
Net loss -$4,663,398 -$427,491 nm

Share price and market cap

Shares in Staffing 360 fell 3.57 percent in late morning trading today to $1.35 and Staffing 360 has a market cap of approximately $45.44 million, according to Yahoo!