Staffing 360 Solutions Business Update
30 Março 2020 - 09:36AM
Staffing 360 Solutions, Inc. (NASDAQ: STAF) a company executing an
international buy-integrate-build strategy through the acquisition
of staffing organizations in the United States and the United
Kingdom, today provided a business update in the current COVID-19
coronavirus environment.
The global pandemic is one that no one has seen
before or for which we could be adequately prepared. Our management
team is meeting daily regarding our response and readiness - and to
best prepare for where we will be when it starts to recede. No one
is an expert on this, but we are doing our best each day to do the
right thing. The pandemic has hit all businesses and has generated
a level of uncertainty in relation to the near-term future within
the staffing industry. Staffing 360 Solutions is not immune to
these changes and will not be immune to them as the impact of the
pandemic unfolds.
The Company reaffirms its January 22, 2020
statement to the market that revenues for Fiscal 2019 are expected
to be $278.5m. That number is a 6.7% increase over the $260.9m
reported in Fiscal 2018. Also included in that statement were a
number of comments about the strength of the US and UK economies.
Given the pandemic and recent changes in the business world and the
financial markets, those statements can no longer be relied upon.
Actual results may differ materially from the foregoing estimate
due to developments or other information that may arise between now
and the time the financial results for the fourth quarter of 2019
are finalized. The preliminary results above should not be viewed
as a substitute for the Company’s audited financial statements
prepared in accordance with GAAP. As a direct result of this
uncertainty, the Company has taken a 45-day extension, provided by
the SEC, for the filing of the Fiscal 2019 10K Financial
Statements.
Brendan Flood, Chairman and CEO stated “This is
a unique environment in which we find ourselves. We are working
diligently to keep up with the changing landscape and are providing
support to all of our employees, to all of our candidates and to
our clients. We have formed a play book for this evolving
environment and our resilient and resourceful employees are
developing new ways of working that will provide more flexibility
in how we work now and going forward.
“As a consequence of the uncertainty we have
determined to cease the issuance of our quarterly dividend and,
while we are still actively looking at M&A opportunities, we
are taking a more cautious view of that market in the immediate
term. I still consider our ongoing work with R.W. Baird on the
refinancing of our debt very important and it remains a focal point
of the corporate office,” concluded Flood.
As a result of the current global coronavirus crisis we
are managing our business as follows:
- Our Chairman and CEO is currently working for no salary
- We are reviewing our overhead base and rightsizing it in both
the US and UK
- The recent change in the IR35 legislation in the UK has been
beneficial to us going forward
- The stimulus packages being offered by the US and the UK
governments are being reviewed and will be acted upon where
possible
- All of our teams are in constant video communication with each
other and with our clients
- We are monitoring the impact on our clients, contractors and
candidates on a daily basis
- We continue to write business every day – while Commercial has
seen some attrition, it has added new customers in the past 10
days
- We’ve completed extensive IT resilience testing of our offices
prior to moving to remote working
- All of our recruitment and administrative processes are being
operated remotely
- Our Professional Staffing contractors are principally working
remotely and are still billing
- Our Commercial Staffing clients are mostly, but not all, in the
food manufacturing supply chain which provides some degree of
revenue protection as it is considered essential business
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 that will drive its annual revenues to
$500 million. As part of its targeted consolidation model, the
Company is pursuing acquisition targets in the finance and
accounting, administrative, engineering, IT, and Light Industrial
staffing space. For more information, please
visit: www.staffing360solutions.com. Follow Staffing 360
Solutions
on Facebook, LinkedIn and Twitter.
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. Although Staffing
360 Solutions, Inc. believes such forward-looking statements are
based on reasonable assumptions, it can give no assurance that its
expectations will be attained. Actual results may vary materially
from those expressed or implied by the statements herein, including
the goal of achieving annualized revenues of $500 million, due to
the geographic, social and economic impact of COVID-19 on the
Company's ability to conduct its business, execute its acquisition
strategy, and raise capital or refinance its indebtedness, to the
Company’s ability to successfully raise sufficient capital in the
future on reasonable terms or at all, to consummate additional
acquisitions, to successfully integrate newly acquired companies,
to organically grow its business, to successfully defend potential
future litigation, changes in local or national economic
conditions, the ability to comply with contractual covenants,
including in respect of its debt, 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: Harvey Bibicoff,
CEO Bibicoff + MacInnis, Inc. 818.379.8500
harvey@bibimac.com
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