Staffing 360 Solutions Reports Year End 2022 Financial Results

NEW YORK, May 22, 2023 (GLOBE NEWSWIRE) -- Staffing 360 Solutions, Inc. (), a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom, today announced its Fiscal Year End 2022 financial results.

YE 2022 Overview

• Revenue increased by 23.8% (26.7% in constant currency) to $244.9M compared with $197.7M in the prior year period
• Gross profit was $42.8M from $33.8M in the prior year period, or an increase of 26.3% (or 29.1% in constant currency)
• An impairment to Goodwill of $10M was booked at the year-end to recognize the performance of the stock price
• Operating loss was ($13.46M), after the impairment, compared with operating loss of ($7.3M) in the prior year, which contained a $3.1M impairment
• Net loss was ($17.0M), including the impairment, compared with net income of $8.2M in the prior year period. The prior year included forgiveness of PPP loans and interest of $19.6M
• EBITDA for the fiscal year was a loss of ($9.7M), including the impairment, compared to income of $14.8M in the prior year period, which included the one-time gain of $19.6M for the forgiveness of PPP loans and interest.
• Adjusted EBITDA was $7.4M as compared with $2.4M in the prior year period, an increase of 205%
• Diluted EPS was a loss of ($8.04) as compared to $3.70 in the same period last year

Quarter 4 2022 Overview

• Revenue increased by 37.5% (39.2% in constant currency) to $69.9M compared with $50.8M in the prior year period
• Gross profit was $11.4M from $7.2M in the prior year period, or an increase of 58.3% (or 60.6% in constant currency)
• An impairment to Goodwill of $10M was booked at the year-end to recognize the performance of the stock price
• Adjusted EBITDA was $2.1M as compared to a loss of ($1.6M) in the prior year period

A table showing a reconciliation of the financial statements to Adjusted EBITDA is provided with this Press Release.

Brendan Flood, Chairman, CEO and President, said, “Our paradigm changing service delivery approach continues to make advances in very challenging markets, with our year-over-year revenue growth well into double digits with strong gross profit for the year.

“It is important to note that the impairment charge, while disappointing, is a non-cash charge and is a reflection of the current condition of the micro-cap stock market and is not related to the performance of any individual part of the company.

“Following our acquisition of Headway Workforce Solutions, we have continued to execute our stated strategy, and believe that Headway’s unique service delivery model complements, and enhances, our overall business model. The integration of Headway into the Staffing 360 Solutions’ businesses has successfully increased the combined profitability by $2M as of year-end and we expect continued improvements to profitability in 2023.

“Our buy-integrate-build strategy is beginning to pay dividends, and we anticipate continued revenue growth and margin improvements as we move towards our long-term goals. As with all staffing companies we continue to monitor the marketplace and our client needs for any recessionary impacts, or other macro-economic issues, and will take any necessary actions to mitigate its impact.” concluded Mr. Flood.

About Staffing 360 Solutions, Inc.

Staffing 360 Solutions, Inc. is engaged in the execution of an international buy-integrate-build strategy through the acquisition of domestic and international staffing organizations in the United States and United Kingdom. The Company believes that the staffing industry offers opportunities for accretive acquisitions and as part of its targeted consolidation model, is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and light industrial staffing space.

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Forward-Looking Statements

This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, our ability to retain our listing on the Nasdaq Capital Market; market and other conditions; the geographic, social and economic impact of COVID-19 on the Company’s ability to conduct its business and raise capital in the future when needed; weakness in general economic conditions and levels of capital spending by customers in the industries the Company serves; weakness or volatility in the financial and capital markets, which may result in the postponement or cancellation of customer capital projects or the inability of the Company’s customers to pay the Company’s fees; the termination of a major customer contract or project; delays or reductions in U.S. government spending; credit risks associated with the Company’s customers; competitive market pressures; the availability and cost of qualified labor; the Company’s level of success in attracting, training and retaining qualified management personnel and other staff employees; changes in tax laws and other government regulations, including the impact of health care reform laws and regulations; the possibility of incurring liability for the Company’s business activities, including, but not limited to, the activities of the Company’s temporary employees; the Company’s performance on customer contracts; negative outcome of pending and future claims and litigation; government policies, legislation or judicial decisions adverse to the Company’s businesses; the Company’s ability to access the capital markets by pursuing additional debt and equity financing to fund its business plan and expenses on terms acceptable to the Company or at all; and the Company’s ability to comply with its contractual covenants, including in respect of its debt agreements, as well as various additional risks, many of which are now unknown and generally out of the Company’s control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

Investor Relations Contact:

Matt Blazei

CoreIR

516-386-0430

Adjusted EBITDA This measure is defined as net income (loss) attributable to common stock before: interest expense, benefit from income taxes; depreciation and amortization; acquisition, capital raising and other non-recurring expenses; other non-cash charges; impairment of goodwill; re-measurement gain on intercompany note; restructuring charges; gain from sale of business; PPP Forgiveness Gain; other income; and charges we consider to be non-recurring in nature such as legal expenses associated with litigation, professional fees associated potential and completed acquisitions. We use this measure because we believe it provides a more meaningful understanding of our profit and cash flow generation.