Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Feb. 01, 2015 | Mar. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 1-Feb-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VISI | |
Entity Registrant Name | VOLT INFORMATION SCIENCES, INC. | |
Entity Central Index Key | 103872 | |
Current Fiscal Year End Date | 10 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,997,796 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
REVENUE: | ||
Staffing service revenue | $360,821 | $392,269 |
Other revenue | 22,245 | 29,359 |
NET REVENUE | 383,066 | 421,628 |
EXPENSES: | ||
Direct cost of staffing services revenue | 310,819 | 339,796 |
Cost of other revenue | 19,605 | 24,133 |
Selling, administrative and other operating costs | 59,964 | 65,599 |
Restructuring costs | 0 | 657 |
Restatement, investigations and remediation | 0 | 2,668 |
TOTAL EXPENSES | 390,388 | 432,853 |
OPERATING LOSS | -7,322 | -11,225 |
OTHER INCOME (EXPENSE), NET: | ||
Interest income (expense), net | -634 | -860 |
Foreign exchange gain (loss), net | 437 | 388 |
Other income (expense), net | 98 | 62 |
TOTAL OTHER INCOME (EXPENSE), NET | -99 | -410 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -7,421 | -11,635 |
Income tax provision | 1,379 | 1,047 |
NET LOSS FROM CONTINUING OPERATIONS | -8,800 | -12,682 |
Loss from discontinued operations net of income taxes (including loss on disposal of $1.2 million) | -4,519 | -4,392 |
NET LOSS | ($13,319) | ($17,074) |
Basic: | ||
Loss from continuing operations (usd per share) | ($0.42) | ($0.61) |
Loss from discontinued operations (usd per share) | ($0.22) | ($0.21) |
Net loss (usd per share) | ($0.64) | ($0.82) |
Weighted average number of shares - basic (shares) | 20,930 | 20,849 |
Diluted: | ||
Loss from continuing operations (usd per share) | ($0.42) | ($0.61) |
Loss from discontinued operations (usd per share) | ($0.22) | ($0.21) |
Net loss (usd per share) | ($0.64) | ($0.82) |
Weighted average number of shares - diluted (shares) | 20,930 | 20,849 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parentheticals) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Feb. 01, 2015 |
Income Statement [Abstract] | |
Gain on disposal | $1.20 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET LOSS | ($13,319) | ($17,074) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of taxes of $0 and $0, respectively | -1,149 | 419 |
Unrealized gain on marketable securities, net of taxes of $0 and $0, respectively | 4 | 16 |
Net current period other comprehensive income (loss) | -1,145 | 435 |
COMPREHENSIVE LOSS | ($14,464) | ($16,639) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, taxes | $0 | $0 |
Unrealized gains (loss) on marketable securities, taxes | $0 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Feb. 01, 2015 | Nov. 02, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $14,796 | $9,105 |
Restricted cash and short-term investments | 18,477 | 32,436 |
Trade accounts receivable, net of allowances of $968 and $868, respectively | 216,439 | 248,101 |
Recoverable income taxes | 18,097 | 18,311 |
Prepaid insurance and other current assets | 24,432 | 26,255 |
Assets held for sale | 0 | 24,220 |
TOTAL CURRENT ASSETS | 292,241 | 358,428 |
Prepaid insurance and other assets, excluding current portion | 46,809 | 39,600 |
Property, equipment and software, net | 25,659 | 26,304 |
TOTAL ASSETS | 364,709 | 424,332 |
CURRENT LIABILITIES: | ||
Accrued compensation | 36,201 | 41,182 |
Accounts payable | 48,329 | 55,873 |
Accrued taxes other than income taxes | 18,901 | 17,099 |
Accrued insurance and other | 35,975 | 39,104 |
Deferred revenue, net, current portion | 4,007 | 3,491 |
Short-term borrowings, including current portion of long-term debt | 115,923 | 129,417 |
Liabilities held for sale | 0 | 19,126 |
TOTAL CURRENT LIABILITIES | 259,336 | 305,292 |
Accrued insurance and other, excluding current portion | 10,932 | 10,611 |
Income taxes payable, excluding current portion | 8,677 | 8,556 |
Deferred income taxes | 1,285 | 1,263 |
Long-term debt, excluding current portion | 7,057 | 7,216 |
TOTAL LIABILITIES | 287,287 | 332,938 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none | 0 | 0 |
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,625,103 and 23,610,103, respectively; Outstanding - 20,937,796 and 20,922,796, respectively | 2,363 | 2,361 |
Paid-in capital | 73,669 | 73,194 |
Retained earnings | 50,815 | 64,119 |
Accumulated other comprehensive loss | -7,545 | -6,400 |
Treasury stock, at cost; 2,687,307 shares | -41,880 | -41,880 |
TOTAL STOCKHOLDERS' EQUITY | 77,422 | 91,394 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $364,709 | $424,332 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 01, 2015 | Nov. 02, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $968 | $868 |
Preferred stock, par value (usd per share) | $1 | $1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $0.10 | $0.10 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 23,625,103 | 23,610,103 |
Common stock, shares outstanding | 20,937,796 | 20,922,796 |
Treasury stock, shares | 2,687,307 | 2,687,307 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET LOSS | ($13,319) | ($17,074) |
Loss from discontinued operations, net of income taxes | -4,519 | -4,392 |
Net loss from continuing operations | -8,800 | -12,682 |
Adjustment to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 1,771 | 2,606 |
Provision (release) of doubtful accounts and sales allowances | 132 | -155 |
Unrealized foreign currency exchange loss (gain) | -915 | 179 |
Gain on dispositions of property, equipment and software | -118 | -72 |
Deferred income tax provision (benefit) | -79 | 1 |
Share-based compensation expense | 476 | 172 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | 32,184 | 42,131 |
Restricted cash related to customer contracts | 4,313 | 1,253 |
Prepaid insurance and other assets | 1,257 | 5,443 |
Accounts payable | -7,333 | -8,306 |
Accrued expenses and other liabilities | -4,898 | -4,481 |
Income taxes | 49 | -1,823 |
Net cash provided by operating activities | 18,039 | 24,266 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of investments | 569 | 636 |
Purchases of investments | -238 | -227 |
Proceeds from sale of property, equipment, and software | 131 | 3,000 |
Purchases of property, equipment, and software | -1,234 | -1,252 |
Net cash provided by (used in) investing activities | -772 | 2,157 |
CASH FLOWS FROM FINANCING ACTIVITES: | ||
Decrease in cash restricted as collateral for borrowings | 9,123 | -16 |
Net change in short-term borrowings | -13,506 | -22,313 |
Repayment of long-term debt | -147 | -203 |
Net cash used in financing activities | -4,530 | -22,532 |
Effect of exchange rate changes on cash and cash equivalents | 402 | 176 |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Cash flow from operating activities | -3,237 | -1,562 |
Cash flow from investing activities | -4,000 | -268 |
Net cash used in discontinued operations | -7,237 | -1,830 |
Net increase in cash and cash equivalents | 5,902 | 2,237 |
Cash and cash equivalents, beginning of period | 9,105 | 9,847 |
Change in cash from discontinued operations | -211 | -1,161 |
Cash and cash equivalents, end of period | 14,796 | 10,923 |
Cash paid during the period: | ||
Interest | 644 | 953 |
Income taxes | 329 | 1,136 |
Supplemental disclosure of noncash investing activity: | ||
Note receivable in exchange for Computer Systems segment net assets sold | $8,363 | $0 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Feb. 01, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Basis of Presentation | |
The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. ("Volt" or the "Company") have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended November 2, 2014. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended November 2, 2014. | |
Restatement, investigations and remediation costs are discussed further in the Company's Form 10-K for the fiscal year ended November 2, 2014, and are comprised of financial and legal consulting, audit and related costs incurred for the completion of delayed filings required under SEC regulations. | |
Certain reclassifications have been made to the prior year financial statements in order to conform to the current year's presentation. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Feb. 01, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. | |
New Accounting Standards Not Yet Adopted by the Company | |
In February 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity ("VIE"), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The new guidance eliminates the separate presentation of extraordinary items, net of tax and the related earnings per share, but does not affect the requirement to disclose material items that are unusual in nature or infrequently occurring. The ASU applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Entities have the option to apply the new guidance prospectively or retrospectively, and can choose early adoption. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Feb. 01, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | Discontinued Operations | |||||||
On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC ("NewNet"), a Skyview Capital, LLC, portfolio company. The Company met all of the criteria to classify that segment's assets and liabilities as held for sale in the fourth quarter of fiscal year 2014. The results of the Computer Systems segment are presented as discontinued operations and excluded from continuing operations and from segment results for all periods presented. | ||||||||
The proceeds of the transaction are a $10.0 million note bearing interest at one half percent (0.5 percent) per year due in four years and convertible into a capital interest of up to 20% in NewNet. The Company may convert the note at any time and is entitled to receive early repayment in the event of certain events such as a change in control of NewNet. The proceeds are in exchange for the ownership of Volt Delta Resources, LLC and its operating subsidiaries, which comprise the Company's Computer Systems segment, and payment of $4.0 million by the Company during the first 45 days following the transaction. An additional payment will be made between the parties based on the comparison of the actual transaction date working capital amount to an expected working capital amount of $6.0 million. The note is valued at $8.4 million which approximates its fair value. The resulting discount will be amortized over four years with an effective interest rate of 5.1%. | ||||||||
The Company recognized a loss on disposal of $1.2 million from the sale transaction. The total related costs associated with this transaction were $2.2 million comprised of $0.9 million in severance costs, $0.9 million of professional fees and $0.4 million of lease obligation costs. These costs are recorded in discontinued operations in the consolidated statements of operations. As of February 1, 2015, $0.7 million has been paid and $1.5 million remains payable and is included in accrued compensation and accrued insurance and other in the Condensed Consolidated Balance Sheets. | ||||||||
The following table reconciles the major classes of net assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheet (in thousands): | ||||||||
2-Nov-14 | ||||||||
Assets included as part of discontinued operations | ||||||||
Cash and cash equivalents | $ | 282 | ||||||
Trade accounts receivable, net | 10,535 | |||||||
Recoverable income taxes | 921 | |||||||
Prepaid insurance and other assets | 9,251 | |||||||
Property, equipment and software, net | 3,231 | |||||||
Total assets of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | $ | 24,220 | ||||||
Liabilities included as part of discontinued operations | ||||||||
Accrued compensation | $ | 2,272 | ||||||
Accounts payable | 992 | |||||||
Accrued taxes other than income taxes | 649 | |||||||
Accrued insurance and other | 5,794 | |||||||
Deferred revenue | 9,419 | |||||||
Total liabilities of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | $ | 19,126 | ||||||
Deferred tax assets of $6,842 are included above in prepaid insurance and other assets as of November 2, 2014. Deferred tax liabilities of $3,834 are included above in accrued insurance and other as of November 2, 2014. | ||||||||
The following table reconciles the major line items in the Condensed Consolidated Statements of Operations for discontinued operations (in thousands): | ||||||||
Three Months Ended | ||||||||
1-Feb-15 | 2-Feb-14 | |||||||
Loss on discontinued operations | ||||||||
Net revenue | $ | 4,708 | $ | 15,520 | ||||
Cost of revenue | (5,730 | ) | (13,145 | ) | ||||
Selling, administrative and other operating costs | (1,388 | ) | (5,493 | ) | ||||
Restructuring and other related costs | (1,709 | ) | (704 | ) | ||||
Other income (expense) | 978 | (568 | ) | |||||
Loss from discontinued operations | (3,141 | ) | (4,390 | ) | ||||
Loss on disposal of discontinued operations | (1,187 | ) | — | |||||
Total loss from discontinued operations | (4,328 | ) | (4,390 | ) | ||||
Income tax provision | 191 | 2 | ||||||
Total loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations | $ | (4,519 | ) | $ | (4,392 | ) |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Equity [Abstract] | |||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||
The changes in accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Foreign Currency Translation | Unrealized Gain (Loss) on Marketable Securities | ||||||||
Accumulated other comprehensive loss at November 2, 2014 | $ | (6,365 | ) | $ | (35 | ) | |||
Other comprehensive loss before reclassifications | (4,330 | ) | — | ||||||
Amounts reclassified from accumulated other comprehensive income | 3,181 | 4 | |||||||
Net current period other comprehensive income (loss) | (1,149 | ) | 4 | ||||||
Accumulated other comprehensive loss at February 1, 2015 | $ | (7,514 | ) | $ | (31 | ) | |||
Reclassifications from accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Three Months Ended February 1, 2015 | |||||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | (3,181 | ) | ||||||
Income tax provision (benefit) | — | ||||||||
Total reclassifications, net of tax | $ | (3,181 | ) | ||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | |||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | 3,181 | Discontinued operations | ||||||
Restricted_Cash_and_ShortTerm_
Restricted Cash and Short-Term Investments | 3 Months Ended |
Feb. 01, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Short-Term Investments | Restricted Cash and Short-Term Investments |
Restricted cash and short-term investments include amounts related to requirements under certain contracts with managed service program customers for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral associated with the Company’s Short-Term Credit Facility. Distribution of payments to associate vendors are generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts. Changes in restricted cash collateral for credit facilities are reflected in financing activities while changes in restricted cash under managed service programs are classified as an operating activity, as this cash is directly related to the operations of this business. | |
At February 1, 2015 and November 2, 2014, restricted cash and short-term investments included $12.2 million and $16.5 million, respectively, restricted for payment to associate vendors and $1.3 million and $10.4 million, respectively, restricted as collateral under the Short-Term Credit Facility. | |
At February 1, 2015 and November 2, 2014, restricted cash and short-term investments included $5.0 million and $5.5 million, respectively, of short-term investments. These short-term investments consisted primarily of the fair value of deferred compensation investments corresponding to employees’ selections, primarily in mutual funds, based on quoted prices in active markets. |
Hedging
Hedging | 3 Months Ended |
Feb. 01, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging | Hedging |
The Company enters into non-derivative financial instruments to hedge its net investment in certain foreign subsidiaries. During the first three months of fiscal 2015 and 2014, the Company primarily used short-term foreign currency borrowings to hedge its net investments in certain foreign operations. | |
There were no outstanding borrowings under the $45.0 million Short-Term Credit Facility as of February 1, 2015. At November 2, 2014, the Company had $8.5 million outstanding of foreign currency denominated short-term borrowings. The Company does not designate and document these instruments as hedges under ASC 815 “Derivatives and Hedging,” and as a result gains and losses associated with these instruments are included in foreign exchange gain (loss), net in the Condensed Consolidated Statements of Operations. During the first quarter of fiscal 2015 and 2014, net gains (losses) on these borrowings and instruments of $38,000 and $0.1 million were included in foreign exchange gain (loss), net in the Condensed Consolidated Statements of Operations. |
Income_Taxes
Income Taxes | 3 Months Ended |
Feb. 01, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The income tax provision reflects the geographic mix of earnings in various federal, state and foreign tax jurisdictions and their applicable rates resulting in a composite effective tax rate. The Company’s cumulative results for substantially all United States and certain non-United States jurisdictions for the most recent three-year period is a loss. Accordingly, a valuation allowance has been established for substantially all loss carryforwards and other net deferred tax assets for these jurisdictions, resulting in an effective tax rate that is significantly different than the statutory rate. | |
The provision for income taxes in the first quarter of fiscal 2015 and 2014 was $1.4 million and $1.0 million, respectively. The Company's quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented. | |
The Company adjusts its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate, consistent with Accounting Standards Codification ("ASC") 270, “Interim Reporting,” and ASC 740-270, “Income Taxes – Intra Period Tax Allocation.” Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. The Company's future effective tax rates could be affected by earnings being different than anticipated in countries with differing statutory rates, increases in recorded valuation allowances of tax assets, or changes in tax laws. |
Debt
Debt | 3 Months Ended |
Feb. 01, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
The Company had borrowings at February 1, 2015 of $115.0 million under various short-term credit facilities that provided for up to $245.0 million in borrowings and letters of credit, under which it was required to maintain cash collateral of $1.3 million. Available borrowing was $15.3 million under the $200.0 million Short-Term Financing Program as of February 1, 2015. There were no outstanding borrowings under the $45.0 million Short-Term Credit Facility as of February 1, 2015. | |
At February 1, 2015 and November 2, 2014, the Company had outstanding borrowing under the Short-Term Financing Program of $115.0 million and $120.0 million, respectively, which carried weighted average annual interest rates of 1.7% and 1.6% during the first quarter of fiscal 2015 and 2014, respectively, which is inclusive of certain facility and program fees. | |
There were no outstanding borrowings under the $45.0 million Short-Term Credit Facility as of February 1, 2015. At November 2, 2014, the Company had $8.5 million outstanding in various currencies used primarily to hedge the Company’s net investment in certain foreign subsidiaries. During the first quarter of fiscal 2014, borrowings carried a weighted average annual interest rate of 1.9%, which is inclusive of the facility fee. | |
At February 1, 2015, the Company had $8.0 million of long-term debt, of which $0.9 million was current. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||
Feb. 01, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share | |||||||
Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts): | ||||||||
Three Months Ended | ||||||||
February 1, 2015 | February 2, 2014 | |||||||
Numerator | ||||||||
Net loss from continuing operations | $ | (8,800 | ) | $ | (12,682 | ) | ||
Loss from discontinued operations, net of income taxes | (4,519 | ) | (4,392 | ) | ||||
Net loss | $ | (13,319 | ) | $ | (17,074 | ) | ||
Denominator | ||||||||
Basic weighted average number of shares | 20,930 | 20,849 | ||||||
Diluted weighted average number of shares | 20,930 | 20,849 | ||||||
Basic: | ||||||||
Net loss from continuing operations | $ | (0.42 | ) | $ | (0.61 | ) | ||
Loss from discontinued operations, net of income taxes | (0.22 | ) | (0.21 | ) | ||||
Net loss | $ | (0.64 | ) | $ | (0.82 | ) | ||
Diluted: | ||||||||
Net loss from continuing operations | $ | (0.42 | ) | $ | (0.61 | ) | ||
Loss from discontinued operations, net of income taxes | (0.22 | ) | (0.21 | ) | ||||
Net loss | $ | (0.64 | ) | $ | (0.82 | ) | ||
Options to purchase 762,150 and 484,850 shares of the Company’s common stock were outstanding at February 1, 2015 and February 2, 2014, respectively. Additionally, there were 40,000 and 73,334 restricted shares outstanding at February 1, 2015 and February 2, 2014, respectively. The options and restricted shares were not included in the computation of diluted earnings (loss) per share in the first quarter of fiscal 2015 and 2014 because the effect of their inclusion would have been anti-dilutive as a result of the Company’s net loss position in those periods. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Feb. 01, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Commitments and Contingencies | |
(a) | Legal Proceedings | |
The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company’s loss contingencies not discussed elsewhere consist primarily of claims and legal actions arising in the normal course of business related to contingent worker employment matters in the Staffing Services segment. These matters are at varying stages of investigation, arbitration or adjudication. The Company has accrued for losses on individual matters that are both probable and reasonably estimable. | ||
In July 2013, Oracle Corporation brought suit against the Company alleging copyright infringement and related claims. The complaint alleges that the Company's information technology infrastructure business provided customer installation services of software updates for Oracle’s computer operating system software and system firmware without appropriate authorization or license. Oracle alleges that it provides customers with updates only if they have purchased support agreements covering servers on which updates will be installed. The Company has asserted defenses and counterclaims of anti-competitive practices and related claims. The matter is scheduled for trial to commence on August 3, 2015. | ||
Estimates are based on currently available information and assumptions. Significant judgment is required in both the determination of probability and the determination of whether a matter is reasonably estimable. The Company’s estimates may change and actual expenses could differ in the future as additional information becomes available. | ||
(b) | Indemnification | |
The Company indemnifies its officers, directors and certain employees for certain events or occurrences while the employee, officer or director is, or was, serving at the Company’s request in such capacity, as permitted under New York law. |
Segment_Data
Segment Data | 3 Months Ended | |||||||||||
Feb. 01, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Data | Segment Data | |||||||||||
The Company’s operating segments are determined in accordance with the Company’s internal management structure, which is based on operating activities. | ||||||||||||
Segment operating income (loss) is comprised of segment net revenues less direct cost of staffing services revenue or cost of other revenue, selling, administrative and other operating costs, amortization of purchased intangible assets and restructuring costs. The Company allocates all operating costs to the segments except for costs not directly relating to operating activities such as corporate-wide general and administrative costs and fees related to restatement, investigations and remediation. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and they are not used by management to measure segment performance. | ||||||||||||
Financial data concerning the Company’s revenue and segment operating income (loss) by reportable operating segment in the first quarter of fiscal 2015 and 2014 are summarized in the following table: | ||||||||||||
Three Months Ended February 1, 2015 | ||||||||||||
(in thousands) | Total | Staffing Services | Other | |||||||||
Revenue | ||||||||||||
Staffing service revenue | $ | 360,821 | $ | 360,821 | $ | — | ||||||
Other revenue | 22,245 | — | 22,245 | |||||||||
Net revenue | 383,066 | 360,821 | 22,245 | |||||||||
Expenses | ||||||||||||
Direct cost of staffing services revenue | 310,819 | 310,819 | — | |||||||||
Cost of other revenue | 19,605 | — | 19,605 | |||||||||
Selling, administrative and other operating costs | 53,941 | 50,580 | 3,361 | |||||||||
Segment operating loss | (1,299 | ) | (578 | ) | (721 | ) | ||||||
Corporate general and administrative | 6,023 | |||||||||||
Operating loss | $ | (7,322 | ) | |||||||||
Three Months Ended February 2, 2014 | ||||||||||||
(in thousands) | Total | Staffing Services | Other | |||||||||
Revenue | ||||||||||||
Staffing service revenue | $ | 392,269 | $ | 392,269 | $ | — | ||||||
Other revenue | 29,359 | — | 29,359 | |||||||||
Net revenue | 421,628 | 392,269 | 29,359 | |||||||||
Expenses | ||||||||||||
Direct cost of staffing services revenue | 339,796 | 339,796 | — | |||||||||
Cost of other revenue | 24,133 | — | 24,133 | |||||||||
Selling, administrative and other operating costs | 60,367 | 55,722 | 4,645 | |||||||||
Restructuring costs | 657 | 657 | — | |||||||||
Segment operating income (loss) | (3,325 | ) | (3,906 | ) | 581 | |||||||
Corporate general and administrative | 5,232 | |||||||||||
Restatement, investigations and remediation | 2,668 | |||||||||||
Operating loss | $ | (11,225 | ) |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Feb. 01, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
The Company entered into an amendment dated February 20, 2015, extending its $45.0 million Short-Term Credit Facility for an additional year to March 31, 2016. The amendment adds the ability for collateral to be held in certain foreign currencies (Euro, British Pounds Sterling, and Canadian Dollars) making it more useful in natural hedging against non-United States Dollar denominated liability positions, and removes in its entirety the covenant limiting restricted payments such as stock repurchases to the greater of $5.0 million or 50% of prior year net consolidated income. Borrowings under the Short-Term Credit Facility continues to be cash collateralized. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Feb. 01, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. ("Volt" or the "Company") have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended November 2, 2014. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended November 2, 2014. | |
Restatement, investigations and remediation costs are discussed further in the Company's Form 10-K for the fiscal year ended November 2, 2014, and are comprised of financial and legal consulting, audit and related costs incurred for the completion of delayed filings required under SEC regulations. | |
Certain reclassifications have been made to the prior year financial statements in order to conform to the current year's presentation. | |
New Accounting Standards Not Yet Adopted by the Company | New Accounting Standards Not Yet Adopted by the Company |
In February 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity ("VIE"), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The new guidance eliminates the separate presentation of extraordinary items, net of tax and the related earnings per share, but does not affect the requirement to disclose material items that are unusual in nature or infrequently occurring. The ASU applies to all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Entities have the option to apply the new guidance prospectively or retrospectively, and can choose early adoption. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Feb. 01, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of Assets and Liabilities Classified as Held for Sale | The following table reconciles the major classes of net assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheet (in thousands): | |||||||
2-Nov-14 | ||||||||
Assets included as part of discontinued operations | ||||||||
Cash and cash equivalents | $ | 282 | ||||||
Trade accounts receivable, net | 10,535 | |||||||
Recoverable income taxes | 921 | |||||||
Prepaid insurance and other assets | 9,251 | |||||||
Property, equipment and software, net | 3,231 | |||||||
Total assets of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | $ | 24,220 | ||||||
Liabilities included as part of discontinued operations | ||||||||
Accrued compensation | $ | 2,272 | ||||||
Accounts payable | 992 | |||||||
Accrued taxes other than income taxes | 649 | |||||||
Accrued insurance and other | 5,794 | |||||||
Deferred revenue | 9,419 | |||||||
Total liabilities of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | $ | 19,126 | ||||||
Schedule of Discontinued Operations Activity | The following table reconciles the major line items in the Condensed Consolidated Statements of Operations for discontinued operations (in thousands): | |||||||
Three Months Ended | ||||||||
1-Feb-15 | 2-Feb-14 | |||||||
Loss on discontinued operations | ||||||||
Net revenue | $ | 4,708 | $ | 15,520 | ||||
Cost of revenue | (5,730 | ) | (13,145 | ) | ||||
Selling, administrative and other operating costs | (1,388 | ) | (5,493 | ) | ||||
Restructuring and other related costs | (1,709 | ) | (704 | ) | ||||
Other income (expense) | 978 | (568 | ) | |||||
Loss from discontinued operations | (3,141 | ) | (4,390 | ) | ||||
Loss on disposal of discontinued operations | (1,187 | ) | — | |||||
Total loss from discontinued operations | (4,328 | ) | (4,390 | ) | ||||
Income tax provision | 191 | 2 | ||||||
Total loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations | $ | (4,519 | ) | $ | (4,392 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Equity [Abstract] | |||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | |||||||||
The changes in accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Foreign Currency Translation | Unrealized Gain (Loss) on Marketable Securities | ||||||||
Accumulated other comprehensive loss at November 2, 2014 | $ | (6,365 | ) | $ | (35 | ) | |||
Other comprehensive loss before reclassifications | (4,330 | ) | — | ||||||
Amounts reclassified from accumulated other comprehensive income | 3,181 | 4 | |||||||
Net current period other comprehensive income (loss) | (1,149 | ) | 4 | ||||||
Accumulated other comprehensive loss at February 1, 2015 | $ | (7,514 | ) | $ | (31 | ) | |||
Reclassifications from accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Three Months Ended February 1, 2015 | |||||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | (3,181 | ) | ||||||
Income tax provision (benefit) | — | ||||||||
Total reclassifications, net of tax | $ | (3,181 | ) | ||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | |||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | 3,181 | Discontinued operations | ||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||
The changes in accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Foreign Currency Translation | Unrealized Gain (Loss) on Marketable Securities | ||||||||
Accumulated other comprehensive loss at November 2, 2014 | $ | (6,365 | ) | $ | (35 | ) | |||
Other comprehensive loss before reclassifications | (4,330 | ) | — | ||||||
Amounts reclassified from accumulated other comprehensive income | 3,181 | 4 | |||||||
Net current period other comprehensive income (loss) | (1,149 | ) | 4 | ||||||
Accumulated other comprehensive loss at February 1, 2015 | $ | (7,514 | ) | $ | (31 | ) | |||
Reclassifications from accumulated other comprehensive loss for the three months ended February 1, 2015 were (in thousands): | |||||||||
Three Months Ended February 1, 2015 | |||||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | (3,181 | ) | ||||||
Income tax provision (benefit) | — | ||||||||
Total reclassifications, net of tax | $ | (3,181 | ) | ||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | |||||||
Foreign currency translation | |||||||||
Sale of foreign subsidiaries | $ | 3,181 | Discontinued operations | ||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Feb. 01, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Summary of Basic and Diluted Net Income (Loss) Per Share | Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts): | |||||||
Three Months Ended | ||||||||
February 1, 2015 | February 2, 2014 | |||||||
Numerator | ||||||||
Net loss from continuing operations | $ | (8,800 | ) | $ | (12,682 | ) | ||
Loss from discontinued operations, net of income taxes | (4,519 | ) | (4,392 | ) | ||||
Net loss | $ | (13,319 | ) | $ | (17,074 | ) | ||
Denominator | ||||||||
Basic weighted average number of shares | 20,930 | 20,849 | ||||||
Diluted weighted average number of shares | 20,930 | 20,849 | ||||||
Basic: | ||||||||
Net loss from continuing operations | $ | (0.42 | ) | $ | (0.61 | ) | ||
Loss from discontinued operations, net of income taxes | (0.22 | ) | (0.21 | ) | ||||
Net loss | $ | (0.64 | ) | $ | (0.82 | ) | ||
Diluted: | ||||||||
Net loss from continuing operations | $ | (0.42 | ) | $ | (0.61 | ) | ||
Loss from discontinued operations, net of income taxes | (0.22 | ) | (0.21 | ) | ||||
Net loss | $ | (0.64 | ) | $ | (0.82 | ) |
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | |||||||||||
Feb. 01, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment | Financial data concerning the Company’s revenue and segment operating income (loss) by reportable operating segment in the first quarter of fiscal 2015 and 2014 are summarized in the following table: | |||||||||||
Three Months Ended February 1, 2015 | ||||||||||||
(in thousands) | Total | Staffing Services | Other | |||||||||
Revenue | ||||||||||||
Staffing service revenue | $ | 360,821 | $ | 360,821 | $ | — | ||||||
Other revenue | 22,245 | — | 22,245 | |||||||||
Net revenue | 383,066 | 360,821 | 22,245 | |||||||||
Expenses | ||||||||||||
Direct cost of staffing services revenue | 310,819 | 310,819 | — | |||||||||
Cost of other revenue | 19,605 | — | 19,605 | |||||||||
Selling, administrative and other operating costs | 53,941 | 50,580 | 3,361 | |||||||||
Segment operating loss | (1,299 | ) | (578 | ) | (721 | ) | ||||||
Corporate general and administrative | 6,023 | |||||||||||
Operating loss | $ | (7,322 | ) | |||||||||
Three Months Ended February 2, 2014 | ||||||||||||
(in thousands) | Total | Staffing Services | Other | |||||||||
Revenue | ||||||||||||
Staffing service revenue | $ | 392,269 | $ | 392,269 | $ | — | ||||||
Other revenue | 29,359 | — | 29,359 | |||||||||
Net revenue | 421,628 | 392,269 | 29,359 | |||||||||
Expenses | ||||||||||||
Direct cost of staffing services revenue | 339,796 | 339,796 | — | |||||||||
Cost of other revenue | 24,133 | — | 24,133 | |||||||||
Selling, administrative and other operating costs | 60,367 | 55,722 | 4,645 | |||||||||
Restructuring costs | 657 | 657 | — | |||||||||
Segment operating income (loss) | (3,325 | ) | (3,906 | ) | 581 | |||||||
Corporate general and administrative | 5,232 | |||||||||||
Restatement, investigations and remediation | 2,668 | |||||||||||
Operating loss | $ | (11,225 | ) |
Discontinued_Operations_Detail
Discontinued Operations (Details) (Computer Systems Segment, USD $) | 0 Months Ended | 3 Months Ended | ||
Dec. 01, 2014 | Feb. 01, 2015 | Feb. 02, 2014 | Dec. 01, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payment to acquire note receivable | $4,000,000 | |||
Payment term | 45 days | |||
Working capital | 6,000,000 | 6,000,000 | ||
Gain on the sale transaction | 1,200,000 | |||
Restructuring and Related Cost, Incurred Cost | 2,200,000 | 1,709,000 | 704,000 | |
Payments for restructuring | 700,000 | |||
Expected cost remaining | 1,500,000 | |||
NewNet Communication Technologies, LLC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Note receivable | 10,000,000 | 10,000,000 | ||
Interest rate | 50.00% | 50.00% | ||
Payment term | 4 years | |||
Capital interest percentage | 20.00% | 20.00% | ||
Notes receivable, fair value | 8,400,000 | |||
Receivable with Imputed Interest, Amortization Period | 4 years | |||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 5.10% | |||
Employee Severance | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 900,000 | |||
Professional Fees Incurred | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 900,000 | |||
Lease obligation costs | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | $400,000 |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities (Details) (Computer Systems Segment, USD $) | Nov. 02, 2014 |
In Thousands, unless otherwise specified | |
Assets Held-for-sale | |
ASSETS | |
Cash and cash equivalents | $282 |
Trade accounts receivable, net | 10,535 |
Recoverable income taxes | 921 |
Prepaid insurance and other assets | 9,251 |
Property, equipment and software, net | 3,231 |
Total assets of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | 24,220 |
Liabilities Held-for-sale | |
Liabilities [Abstract] | |
Accrued compensation | 2,272 |
Accounts payable | 992 |
Accrued taxes other than income taxes | 649 |
Accrued insurance and other | 5,794 |
Deferred revenue | 9,419 |
Total liabilities of the disposal group classified as held for sale in the Condensed Consolidated Balance Sheets | $19,126 |
Discontinued_Operations_Statem
Discontinued Operations - Statements of Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 01, 2014 | Feb. 01, 2015 | Feb. 02, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other income (expense), net | $98 | $62 | |
Total loss from discontinued operations | -4,519 | -4,392 | |
Computer Systems Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net revenue | 4,708 | 15,520 | |
Cost of revenue | -5,730 | -13,145 | |
Selling, administrative and other operating costs | -1,388 | -5,493 | |
Restructuring and other related costs | -2,200 | -1,709 | -704 |
Other income (expense), net | 978 | -568 | |
Loss from discontinued operations | -3,141 | -4,390 | |
Loss on disposal of discontinued operations | -1,187 | 0 | |
Total loss from discontinued operations | -4,328 | -4,390 | |
Income tax provision | 191 | 2 | |
Total loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations | ($4,519) | ($4,392) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax provision (benefit) | ($1,379) | ($1,047) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at November 2, 2014 | -6,400 | |
Net current period other comprehensive income (loss) | -1,145 | 435 |
Accumulated other comprehensive loss at February 1, 2015 | -7,545 | |
Unrealized Gain (Loss) on Marketable Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications, net of tax | 4 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at November 2, 2014 | -35 | |
Other comprehensive loss before reclassifications | 0 | |
Net current period other comprehensive income (loss) | 4 | |
Accumulated other comprehensive loss at February 1, 2015 | -31 | |
Foreign Currency Translation | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications, net of tax | 3,181 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at November 2, 2014 | -6,365 | |
Other comprehensive loss before reclassifications | -4,330 | |
Net current period other comprehensive income (loss) | -1,149 | |
Accumulated other comprehensive loss at February 1, 2015 | -7,514 | |
Foreign Currency Translation | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sale of foreign subsidiaries | -3,181 | |
Income tax provision (benefit) | 0 | |
Total reclassifications, net of tax | -3,181 | |
Discontinued Operations | Foreign Currency Translation | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sale of foreign subsidiaries | $3,181 |
Restricted_Cash_and_ShortTerm_1
Restricted Cash and Short-Term Investments - Additional Information (Detail) (USD $) | Feb. 01, 2015 | Nov. 02, 2014 |
In Millions, unless otherwise specified | ||
Short-Term Credit Facility | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted as collateral | $1.30 | |
Restricted cash and short-term investments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 12.2 | 16.5 |
Short-term investments | 5 | 5.5 |
Restricted cash and short-term investments | Short-Term Credit Facility | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted as collateral | $1.30 | $10.40 |
Hedging_Additional_Information
Hedging - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Nov. 02, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Borrowing capacity of facility | $245,000,000 | ||
Foreign Exchange Gain (Loss) | Not Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Outstanding short-term borrowings | 8,500,000 | ||
Foreign Exchange Gain (Loss) | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gains/ (losses) on borrowings and instruments | 0 | 100,000 | |
Short-Term Credit Facility | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Borrowing capacity of facility | $45,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $1,379 | $1,047 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Nov. 02, 2014 | |
Extinguishment of Debt [Line Items] | |||
Amount outstanding | $115,000,000 | ||
Borrowing capacity of facility | 245,000,000 | ||
Long-term debt | 8,000,000 | ||
Current maturities | 900,000 | ||
Short-Term Financing Program | |||
Extinguishment of Debt [Line Items] | |||
Amount outstanding | 115,000,000 | 120,000,000 | |
Borrowing capacity of facility | 200,000,000 | ||
Available borrowing capacity of facility | 15,300,000 | ||
Weighted average interest rate during period | 1.70% | 1.60% | |
Short-Term Credit Facility | |||
Extinguishment of Debt [Line Items] | |||
Borrowing capacity of facility | 45,000,000 | ||
Cash collateral of outstanding short-term borrowings | 1,300,000 | ||
Weighted average interest rate during period | 1.90% | ||
Line of Credit | |||
Extinguishment of Debt [Line Items] | |||
Amount outstanding | $8,500,000 |
Earnings_Loss_Per_Share_Summar
Earnings (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Numerator | ||
Net loss from continuing operations | ($8,800) | ($12,682) |
Loss from discontinued operations, net of income taxes | -4,519 | -4,392 |
NET LOSS | ($13,319) | ($17,074) |
Denominator | ||
Basic weighted average number of shares (shares) | 20,930 | 20,849 |
Dilutive weighted average number of shares (shares) | 20,930 | 20,849 |
Basic: | ||
Loss from continuing operations (usd per share) | ($0.42) | ($0.61) |
Loss from discontinued operations (usd per share) | ($0.22) | ($0.21) |
Net loss (usd per share) | ($0.64) | ($0.82) |
Diluted: | ||
Loss from continuing operations (usd per share) | ($0.42) | ($0.61) |
Loss from discontinued operations (usd per share) | ($0.22) | ($0.21) |
Net loss (usd per share) | ($0.64) | ($0.82) |
Earnings_Loss_Per_Share_Additi
Earnings (Loss) Per Share - Additional Information (Detail) | Feb. 01, 2015 | Feb. 02, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase common stock outstanding | 762,150 | 484,850 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted shares outstanding | 40,000 | 73,334 |
Segment_Data_Summary_of_Sales_
Segment Data - Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Staffing service revenue | $360,821 | $392,269 |
Other revenue | 22,245 | 29,359 |
NET REVENUE | 383,066 | 421,628 |
Expenses | ||
Direct cost of staffing services revenue | 310,819 | 339,796 |
Cost of other revenue | 19,605 | 24,133 |
Selling, administrative and other operating costs | 59,964 | 65,599 |
Restructuring costs | 0 | 657 |
Restatement, investigations and remediation | 0 | 2,668 |
OPERATING LOSS | -7,322 | -11,225 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Staffing service revenue | 360,821 | 392,269 |
Other revenue | 22,245 | 29,359 |
NET REVENUE | 383,066 | 421,628 |
Expenses | ||
Direct cost of staffing services revenue | 310,819 | 339,796 |
Cost of other revenue | 19,605 | 24,133 |
Selling, administrative and other operating costs | 53,941 | 60,367 |
Restructuring costs | 657 | |
Segment operating loss | -1,299 | -3,325 |
Operating Segments | Staffing Services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Staffing service revenue | 360,821 | 392,269 |
Other revenue | 0 | 0 |
NET REVENUE | 360,821 | 392,269 |
Expenses | ||
Direct cost of staffing services revenue | 310,819 | 339,796 |
Cost of other revenue | 0 | 0 |
Selling, administrative and other operating costs | 50,580 | 55,722 |
Restructuring costs | 657 | |
Segment operating loss | -578 | -3,906 |
Operating Segments | Other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Staffing service revenue | 0 | 0 |
Other revenue | 22,245 | 29,359 |
NET REVENUE | 22,245 | 29,359 |
Expenses | ||
Direct cost of staffing services revenue | 0 | 0 |
Cost of other revenue | 19,605 | 24,133 |
Selling, administrative and other operating costs | 3,361 | 4,645 |
Restructuring costs | 0 | |
Segment operating loss | -721 | 581 |
Corporate general and administrative | ||
Expenses | ||
Selling, administrative and other operating costs | 6,023 | 5,232 |
Restatement, investigations and remediation | ||
Expenses | ||
Restatement, investigations and remediation | $2,668 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event, USD $) | Feb. 20, 2015 |
In Millions, unless otherwise specified | |
Subsequent Event [Line Items] | |
Removed covenant, restricted payment maximum | $5 |
Removed covenant, restricted payment maximum, percent of net consolidated income | 50.00% |
Line of Credit | |
Subsequent Event [Line Items] | |
Line of credit facility borrowing capacity | $45 |