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Blog

Quarterly Message from the Executive Chairman

It has, and will always, give me great pleasure to announce that the Company has continued to make strong progress and for that I thank each and every one of you for your hard work and dedication, especially that shown towards our clients and candidates.
 
The following are the headline numbers:

 

Staffing 360 Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

 

 

 

 

For the Three Months Ended February 28,

 

For the Three Months Ended February 28,

 

 

2015

 

2014

 

     

 

Revenue

 

 $       30,963,598

 

 $       15,799,695

 

 

 

 

 

Gross Profit

 

5,525,569

 

3,206,989

 

 

 

 

 

Net Loss Attributable to STAF

 

 $           (80,789)

 

 $      (1,763,362)

 

     

 

  

We are extremely pleased to report these results as our business has improved by leaps and bounds in almost every category. Despite this being, historically, our seasonally weakest quarter due to the winter weather, our fiscal Q3 revenue nearly doubled to $31.0 million, year-over-year, from $15.8 million.  Not only have we expanded through acquisitions, our underlying operations are showing strong 19% organic growth year-to-date, which is nearly double the entire staffing industry growth rate of 9.6% in 2013, the most current year available.
 
In addition to growth in revenue, we achieved positive Adjusted EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) for the second quarter in a row and are positive year-to-date. Lastly, we reported Non-Adjusted EBITDA profitability for the first time.  This is a major achievement for us and several quarters ahead of schedule.
 
Net loss has improved to $81,000, compared to a loss of $1.8 million last year. 
 
Every time that one of the Executive Committee attends a conference or trade function, there are dozens of people that already know our story, our accomplishments, and they are excited to see what we will achieve next.
 
During the course of the last reporting period each of our acquisitions has performed extraordinarily well.  I would like to take this moment to recognize all of the employees of Monroe Staffing Services 360, Longbridge Recruitment 360, PeopeSERVE 360 and Control Solutions International 360. I commend and thank all of you for the efforts that have gone into delivering such remarkable growth in just 24 months.
 
Our management team and board of directors continues to explore and evaluate further acquisitions and, as you may have heard on our recent Earnings Conference Call we have four potential acquisitions that are under signed Letter of Intent. A Letter of Intent is an agreement (albeit non-binding) between two parties to enter into a transaction together. The combined revenues of these four transactions is over $180 million annualized. This growth will certainly result in more milestone announcements throughout 2015 and beyond.
 
To fuel our future growth requires significant capital and support of our operations.  So this is why we were pleased to announce our successful raise of $25 million through a revolving credit facility and a $3 million term loan with MidCap Financial, which is managed by a subsidiary of Apollo Global Management, one of the world's leading alternative investment managers.
 
If you happened to follow Staffing 360 Solutions’ earnings call on April 16th, you may have noticed the strong reaction we received from the MidCap deal and our earnings results by the public markets.  If you haven’t had a chance to listen to the call, I highly recommend you take advantage of the archived webcast when you have an opportunity.  Our stock rose on significant volume by almost 100% in a single day of trading and is, as I write, up 185% on the price prior to the release of our Earnings. 
 
In fact, in light of our recent trading activity, we received numerous inquiries from employees wondering how they could purchase shares on the open market and whether they could become shareholders of Staffing 360 Solutions.  The short answer is as long as an employee doesn’t have material, non-public information, there are certain trading windows during which employees can purchase shares. 
 
You can contact Darren Minton, our Executive Vice President, if you have any questions: darren@staffing360solutions.com.  Before any trading can commence, you must receive pre-clearance from our Compliance Officer and CFO, Jeff R. Mitchell: jeff@staffing360solutions.com
 
Needless to say, this is an exciting time, not only for our company, but for our employees and shareholders alike.
 
With the economy continuing to improve in our primary markets of the US and the UK, the resulting market forces are supporting our vision and providing Staffing 360 Solutions with even more opportunities to expand and add additional staff and services. You should all take great pride in the journey so far and get as prepared as possible for the remarkable journey to come.


Respectfully,

Brendan Flood
Executive Chairman