Staffing 360 Solutions, Inc. (NASDAQ:STAF) Q1 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 09:30 am ET

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Staffing 360 Solutions, Inc. (NASDAQ:STAF) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, ladies and gentlemen, and welcome to the Staffing 360 Solutions Fiscal Q1 2020 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded.

This conference call will contain forward-looking statements within the meaning of the US federal securities laws concerning Staffing 360 Solutions, Inc. The forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. Please refer to the company's filings with the SEC, which contain and identify important risks and other factors that may cause Staffing 360 Solutions' actual results to differ from those contained in our forward-looking statements.

All forward-looking statements are made as of today, June 29, 2020, and Staffing 360 Solutions expressly disclaims any obligation to revise or to update any forward-looking statement after the date of this conference call. During these prepared comments, we may make reference to certain non-GAAP measures such as adjusted EBITDA. Where applicable, we have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measure.

It is now my pleasure to introduce Brendan Flood, Chairman and Chief Executive Officer of Staffing 360 Solutions. Mr. Flood, you may begin.

Executive
Brendan Flood

Thank you, operator. And thank you to everyone who has joined us for Staffing 360's Fiscal Q1 2020 financial results conference call. I'm joined today by Alicia Barker, our Chief Operating Officer, and by Sharnika Viswakula, our Corporate Controller and Principal Accounting Officer.

I will start my remarks by saying, as I did on our last call, that I hope that everyone is staying healthy and safe during this unprecedented COVID-19 pandemic. The well-being of our staff, contractors, and clients has continued to be our main priority since the virus was discovered and the outbreak spread to our geography.

Sharnika will provide more depth to our financial results, and Alicia will update you about how our business has managed through this environment from a practical perspective, including how we have begun to reopen our offices while ensuring that we continue to provide our customary best-in-class client service. Alicia will also express our views supporting social and racial equality in this time of civil unrest.

I'll begin with an overview of our financial and operational performance covering the first quarter of 2020. Then, I will hand the call over to Sharnika for further details, after which Alicia will update us on the operational impact of COVID-19 pandemic and our continuing response to it. I will finish by outlining what we're seeing performance-wise in the second quarter, what our near-term plans are in relation to our acquisition strategy, and our intended refinancing of our business. The line will then be open for questions.

As outlined in our press release on Friday, revenue for Q1 2020 was $58.7 million with gross profit at $10.6 million. Both of these metrics are in line with the numbers previously estimated on the year-end call. The