Daily News

View All News

Staffing 360 revenue up 25% in fiscal Q2, net loss narrows

January 15, 2016

Staffing 360 Solutions Inc. (NASD: STAF) reported revenue rose to $41.3 million in its fiscal first quarter ended Nov. 30, up 24.9% from $33.1 million in the same quarter of the prior year. Mergers and acquisitions activity and organic growth fueled the increase.

Net loss for the quarter narrowed to approximately $3.4 million from $8.8 million. The company attributed the improvement in net loss primarily to the its Pathway to Profitability initiative, which has helped streamline expenses, decrease consulting and professional fees and changed the structure of outstanding debt. Two acquisitions completed during this second quarter — engineering staffing provider Lighthouse Placement Services and London-based IT staffing firm The JM Group — also contributed to the improvement.

Staffing 360 completed its uplisting to the Nasdaq Capital Market in September. 

On Jan. 7, Staffing 360, filed its first Registration Statement, an S-3 filing with the US Securities and Exchange Commission, Brendan Flood, Staffing 360's executive chairman and interim CFO, told investors in a conference call. The firm will use this vehicle to raise equity in the capital markets.

Flood also noted the firm is engaged in a lawsuit from the former owners of its Control Solutions International subsidiary, and filed an appeal on Jan. 6 to an adverse ruling in the case. Separately, Staffing 360 filed arbitration claims in New York against the individuals concerned, who are now former employees.

(US$ thousands) Q2 2016 Q2 2015* % growth
Revenue $41,350 $33,102 24.9%
Gross profit $7,470 $5,841 27.9%
Gross margin percentage 18.1% 17.6%  
Net loss $3,180 $8,735 nm

*Company has revised historical results to exclude Cyber 360 Inc. as a discontinued operations.

Quote

“We continue to make headway on executing our growth strategy, as exemplified by the significant number of milestones we achieved this quarter,” said President and CEO Matt Briand. “In Q2 2016 we posted record revenue, made further reductions to our expenses, uplisted to Nasdaq, and continued to embark on our M&A program with the successful acquisition of The JM Group, a $25 million annualized revenue business. With all of our developments in this quarter, we encourage investors to join us during our earnings conference call for more details on where we've been and where we are headed as our strategic initiatives continue to take shape.”

Share price and market cap

Shares in Staffing 360 rose 5.14% in early afternoon trading today to $4.09 and the company had a market cap of $20.06 million, according to Yahoo!