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Volt Information Sciences Announces First Quarter Results.

NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 -- Volt Information Sciences, Inc. (NYSE NYSE

See: New York Stock Exchange
: VOL VOL Volume
VOL Volunteer
VOL Volcano
VOL Volvo (stock symbol)
VOL Verdingungsordnung für Leistungen (German)
VOL Volatile Organic Liquid
Vol Volscan (linguistics) 
) today reported financial results for the Company's first quarter ended January January: see month.  29, 2006.

Volt will conduct a conference call webcast at 11:00 A.M. (EST EST electroshock therapy.

electroshock therapy
) today to discuss first quarter results. The conference call dial-in number is 1-888-469-0571 (Domestic) or 1-517-623-4001 (International), passcode: First Quarter. The conference call will be broadcast live over the Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
 and can be accessed for the next 30 days at htpp://


Attached is a summary of the Company's results of operations and notes thereto there·to  
1. To that, this, or it.

2. Archaic In addition to that; furthermore.



1. to that or it

. The notes are an integral part of the summary.

For the fiscal 2006 first quarter, ended January 29, 2006, the Company reported a net loss of $0.4 million, or $0.02 per share, compared to a net loss of $0.8 million, or $0.05 per share in the fiscal 2005 first quarter. Net sales Net Sales

The amount a seller receives from the buyer after costs associated with the sale are deducted.

This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight
 increased by 10% to $549.5 million, compared to $497.8 million in last year's comparable quarter. Income before minority interest and income taxes increased to $0.4 million in the quarter compared to $0.2 million in the comparable fiscal 2005 quarter.

Segment operating profit Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.

operating profit

See operating income.
 increased 41% to $13.6 million in the fiscal 2006 first quarter compared to $9.6 million in the 2005 first quarter. This increase was offset by a $3.6 million increase in general corporate expenses, primarily the result of increased audit and Sarbanes-Oxley compliance charges related to the 2005 fiscal year.

As previously announced, the Company's subsidiary, Volt Delta Resources LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
, purchased from Nortel Networks (Nortel Networks Limited, Brampton, Ontario, A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony  Inc. its 24% minority interest in Volt Delta on December December: see month.  29, 2005 and acquired varetis AG's subsidiary, Varetis Solutions GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity)  on December 30, 2005.

The Company stated that the strong growth in segment operating profit and revenue occurred in what is a historically flat quarter due to the number of holidays and associated customer closings. Of particular note is the significant improvement in results over the 2005 first quarter for the Telecommunications Services In telecommunication, the term telecommunications service has the following meanings:

1. Any service provided by a telecommunication provider.

 segment and the Administrative and Industrial division of the Staffing Services segment. While overall results were negatively impacted by the material expenses incurred related to Sarbanes-Oxley and audit fees for the 2005 fiscal year, the Company expects that these charges will be reduced in the future.


Net sales for this segment increased by 9% to $457.6 million compared to the fiscal 2005 first quarter, while operating profit increased to $4.8 million from $2.5 million. The increase in operating profit was the result of increased permanent placement revenue in both the Technical and Administrative and Industrial divisions and a $1.8 million reduction in workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work.  costs, which more than offset lower profitability of the VMC See VESA Media Channel.  Consulting division.


Net sales for this segment were $41.3 million, approximately ap·prox·i·mate  
1. Almost exact or correct: the approximate time of the accident.

 the same as the comparable prior year's quarter; however, operating profit decreased by 24% to $5.7 million due to increased overhead. The quarter includes the results of one month of Varetis Solutions GmbH, which was acquired on December 30, 2005.


This segment reported an operating profit of $2.3 million on sales of $15.8 million, approximately the same results as the fiscal 2005 first quarter.


This segment continued to improve as sales increased by 59% to $40.1 million compared to the fiscal 2005 first quarter. Included in the quarter was the recognition of $10.8 million in revenue due to the completion of a construction project. The segment reported an operating profit of $0.8 million in the fiscal 2006 first quarter compared to an operating loss operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
 of $2.4 million in the comparable prior year's period. All divisions in this segment produced improved results over the 2005 quarter, primarily the result of reduced overhead expense as a percentage of revenue achieved through the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent.  of the segment.


General corporate expenses increased by $3.6 million or 43% as a result of higher professional fees and other costs related to compliance with the Sarbanes-Oxley Act See SOX. .


Cash and cash equivalents, excluding restricted cash, decreased to $46.6 million at January 29, 2006 from $62.0 million at October October: see month.  30, 2005. At January 29, 2006, the Company had sold a continuing participating interest in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying  of $100.0 million under its securitization Securitization

The process of creating a financial instrument by combining other financial assets and then marketing them to investors.

Mortgage backed securities are a perfect example of securitization.

May also be spelled as "securitisation.
 program and as of January 29, 2006 had the ability to finance up to an additional $100.0 million under the facility which expires in April 2008.

In addition, the Company may borrow Borrow

To obtain or receive money on loan with the promise or understanding that it will be repaid.
 under a $40.0 million revolving credit Revolving Credit

A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs.
 facility, under which borrowings are limited by a specific borrowing base. At January 29, 2006, the Company had borrowed 2.0 million Euros ($2.4 million) under this facility.

In December 2005, Volt Delta paid approximately $50.0 million, principally from cash on hand, for the Nortel Networks and Varetis Solutions transactions. The remaining $36.8 million was paid on February February: see month.  15, 2006 and was financed by increasing the receivables Receivables

An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed
 sold under the securitization program to $140.0 million from $100.0 million.

Volt Information Sciences, Inc. is a leading national provider of Staffing Services and Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications.  and Information Solutions with a Fortune 100 customer base. Operating through a network of over 300 Volt Services Group branch offices, the Staffing Services segment fulfills IT and other technical, commercial and industrial placement requirements of its customers, on both a temporary and permanent basis. The Telecommunications and Information Solutions businesses, which include the Telecommunications Services, Computer Systems and Telephone Directory segments, provide complete telephone directory production and directory publishing; a full spectrum of telecommunications construction, installation and engineering services; and advanced information and operator services A variety of telephone services that require human intervention, including person-to-person calls, collect calls, credit card billing and directory and dialing assistance. Such services are performed by LECs, IXCs and alternative operator services (AOS), organizations that are used by  systems for telephone companies. For additional information, please visit Volt's web site at

This press release contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 which are subject to a number of known and unknown risks, including general economic, competitive and other business conditions, the degree and timing of customer utilization utilization,
n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be
 and the rate of renewals of contracts with the Company, that could cause actual results, performance and achievements to differ materially from those described or implied Inferred from circumstances; known indirectly.

In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated.
 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 is contained in Company reports filed with the Securities and Exchange Commission. Copies of the Company's latest Annual Report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.

Form 10-K

See 10-K.
 and subsequent Quarterly Reports on Form 10-Q Form 10-Q

See 10-Q.
, as filed with the Securities and Exchange Commission and the New York Stock Exchange New York Stock Exchange (NYSE)

World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City.
, are available without charge upon request to Volt Information Sciences, Inc., 560 Lexington Lexington.

1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974.
 Avenue, New York, New York 10022, 212-704-2400, Attention: Shareholder Relations. These and other SEC filings by the Company are also available to the public over the Internet at the SEC's website at See .gov and GovNet.

(networking) gov - The top-level domain for US government bodies.
 and at the Company's website at in the Investor Information section.

(Tables Follow)
                           AND SUBSIDIARIES
                         SUMMARY OF OPERATIONS

                                                FIRST QUARTER ENDED
                                              January 29, January 30,
                                                    2006        2005
                                              ----------- -----------
                                              (In thousands, except
                                                 per share amounts)

Net sales                                       $549,508    $497,835
                                              =========== ===========

Income before minority interest and income
 taxes                                              $437        $208
Minority interest - Note A                        (1,021)     (1,494)
                                              ----------- -----------
Loss before income taxes                            (584)     (1,286)
Income tax benefit                                   207         478
                                              ----------- -----------
Net loss                                           ($377)      ($808)
                                              =========== ===========

                                                  Per Share Data

Net loss per share-basic and diluted              ($0.02)     ($0.05)
                                              =========== ===========

Weighted average number of shares outstanding-
 basic                                            15,343      15,291
                                              =========== ===========

                            (Notes Follow)

                           AND SUBSIDIARIES

                                                FIRST QUARTER ENDED
                                              January 29, January 30,
                                                    2006        2005
                                              ----------- -----------
                                              (Dollars in thousands)
Net Sales
Staffing Services-Note B
  Traditional staffing                          $445,627    $414,094
  Managed services                               251,076     297,432
                                              ----------- -----------
  Total gross sales                              696,703     711,526
  Less non-recourse managed services            (239,061)   (291,193)
                                              ----------- -----------
  Net Staffing Services sales                    457,642     420,333
Telephone Directory                               15,785      15,704
Telecommunications Services                       40,114      25,204
Computer Systems                                  41,274      41,194
Elimination of intersegment sales                 (5,307)     (4,600)
                                              ----------- -----------

Total Net Sales                                 $549,508    $497,835
                                              =========== ===========

Income (loss) before Minority Interest and
 Income Taxes:
Staffing Services                                 $4,829      $2,453
Telephone Directory                                2,261       2,107
Telecommunications Services                          768      (2,429)
Computer Systems                                   5,749       7,514
                                              ----------- -----------
Total segment operating profit                    13,607       9,645

Interest income and other (expense) income,
 net                                                (573)       (456)
General corporate expenses                       (11,888)     (8,307)
Interest expense                                    (456)       (512)
Foreign exchange loss, net                          (253)       (162)
                                              ----------- -----------

Income before Minority Interest and Income
 Taxes                                              $437        $208
                                              =========== ===========

                            (Notes Follow)

                           AND SUBSIDIARIES

                                              January 29, October 30,
                                                    2006        2005
                                              ----------- -----------
Assets                                        (Dollars in thousands)
 Current Assets
  Cash and cash equivalents, including
   restricted cash of $22,532 (2006) and
   $26,131 (2005)-Note B                         $69,123     $88,119
  Short-term investments                           4,265       4,213
  Trade receivables, net-Note C                  361,065     399,677
  Inventories                                     36,127      33,758
  Recoverable income taxes                         1,641           -
  Deferred income taxes                           10,653      10,246
  Prepaid and other assets                        24,610      19,788
                                              ----------- -----------
 Total Current Assets                            507,484     555,801

 Property, plant and equipment, net               83,387      83,272
 Deposits and other assets                         1,881       2,102
 Goodwill                                         52,085      32,623
 Other intangible assets, net                     33,777      14,914
                                              ----------- -----------
 Total Assets                                   $678,614    $688,712
                                              =========== ===========

Liabilities and Stockholders' Equity
 Current Liabilities
  Notes payable to bank                           $6,621      $6,622
  Note payable to Nortel-Note A                   36,750           -
  Current portion of long-term debt                2,442       2,404
  Accounts payable                               155,812     172,788
  Accrued wages and commissions                   53,127      55,081
  Accrued taxes other than income taxes           23,481      17,586
  Accrued insurance and other accruals            34,992      35,173
  Deferred income and other liabilities           42,018      30,628
  Income taxes payable                                 -       1,686
                                              ----------- -----------
 Total Current Liabilities                       355,243     321,968

 Accrued insurance                                 1,467       1,630
 Long-term debt                                   13,183      13,297
 Deferred income taxes                            12,858      13,358
 Minority interest-Note A                                     43,444

 Stockholders' Equity                            295,863     295,015
                                              ----------- -----------
 Total Liabilities and Stockholders' Equity     $678,614    $688,712
                                              =========== ===========

                            (Notes Follow)


A - In December 2005, Volt Delta Resources, LLC ("Volt Delta"), the
    principal business unit of the Computer Systems segment, purchased
    from Nortel Networks, Inc. ("Nortel Networks") its 24% minority
    interest in Volt Delta for $62.0 million, including an excess cash
    distribution of $5.4 million. Nortel Networks had originally
    purchased its 24% interest in August of 2004, and under the terms
    of the original purchase agreement, each party had an option to
    cause Nortel Networks to sell and Volt Delta to buy the minority
    interest for an amount ranging from $25.0 million to $70.0

    During the quarter, Volt Delta also purchased Varetis Solutions
    GmbH ("Varetis Solutions") from varetis AG for $24.8 million. The
    acquisition allows Volt Delta to combine resources to focus on the
    evolving global market for directory information systems and
    services. Varetis Solutions adds technology in the area of
    wireless and wireline database management, directory
    assistance/inquiry automation and wireless handset information
    delivery to Volt Delta's significant technology portfolio.

    The preliminary allocation of the purchase price of the
    transactions resulted in $19.5 million of goodwill and $19.3
    million of intangible assets.

B - Under certain contracts with customers, the Company manages the
    customers' alternative staffing requirements, including
    transactions between the customer and other staffing vendors
    ("associate vendors"). When payments to associate vendors are
    subject to the receipt of the customers' payment to the Company,
    the arrangements are considered non-recourse against the Company
    and revenue, other than management fees to the Company, is
    excluded from sales. Cash restricted to cover such obligations is
    included in cash and cash equivalents on the January 29, 2006 and
    October 30, 2005 balance sheets.

C - Under a securitization program, the receivables related to the
    staffing solutions business of the Company are sold from
    time-to-time by the Company, through a 100%-owned consolidated
    special purpose subsidiary to an unaffiliated third party. The
    outstanding balance of the participation interest sold was $100.0
    million at January 29, 2006 and October 30, 2005. Accordingly, the
    trade receivables included on the January 29, 2006 and October 30,
    2005 balance sheets have been reduced to reflect the $100.0
    million participation interest sold.
COPYRIGHT 2006 Business Wire
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Publication:Business Wire
Geographic Code:1USA
Date:Mar 7, 2006
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