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VOLT Volt Information Sciences

Participants
Joe Noyons Investor Relations
Linda Perneau President and CEO
Leonard Naujokas Controller, Chief Accounting Officer and Treasurer
Josh Vogel Sidoti & Company
Mike Hughes SGF Capital
Call transcript
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Operator

Greetings. Welcome to the Volt Information Sciences, Inc. Fourth Quarter and Fiscal Year 2021 Earnings Call. [Operator Instructions]. Please note this conference is being recorded. the to turn Noyons, host, now Relations. Investor will conference your over Joe I

begin. may You

Joe Noyons

XXXX Kyle, you, joining Information and for for afternoon, us Volt Call. Fiscal Quarter Fourth Thank Sciences' good today and everyone. Conference Earnings Thank you

company's Perneau, afternoon, On and Officer; a the Chief Officer company Chief Controller, the After release President and the issued Naujokas, are Treasurer. Lenny market Executive is website today quarter Accounting call fourth Linda and volt.com and year closed available the press this on the for release the X-K. as filed results its well announcing website as at Form XXXX. as fiscal SEC The EDGAR a

Before beginning Securities variety or Act more to call afternoon. Linda to with those from in measures of COVID-XX made included earnings over is measures CEO, factors like President of the of GAAP I included, could statements to Volt's the and will financial to but remind which we risks business future information today's investors. that, Perneau. discussion the for useful the operations. be our impact With for will this refer A due - may would turn and detailed today's those XXXX. business condition. forward-looking operating Actual non-GAAP projected Litigation that results call, release to you on Reform results financial limited of made measures, recent reconciliation would SEC pandemic issued differ in Private to the Linda? filings potential company's that Also and management Information like a materially press certain the of reference believe provide our some the Sciences' the remarks, prepared of We are implied impacts a I to, not Volt on under you

Linda Perneau

welcome, healthy a happy to we today's new Thank very happy year. had season, and you, holiday We everyone hope and you Joe, call. and everyone, a wish

an pricing week. logos, our Chief back to year growth improve joined look will focused combination today, overview accountability is path that I fiscal would Today, and him I XXXX to call, be cost absent, provide a our a on processes, Herb Lenny us. as I overview will a and XXXX. his and Controller, gross of will more revenue through like driving then results. during as high-level earnings focus started, unforeseen getting fiscal to unable our our next improved medical year XXXX positive efforts performance of to significantly EBITDA efficiencies execution begin our In on opportunities commentary provide hire, mention the through in that year Lenny due stated having expansion winning Before year-end then well all full We to by areas on ago, will new occur in for One we higher-margin improving clients direct within business, Accounting financial existing join on discipline. performance. procedure XXXX highlights margins and detailed Naujokas, with with of conclude and I Treasurer. Officer forward would

moment We performance to path a on Overall, which these each pleased of will are year profitability, areas. of I financial progress our and with across take key our significant highlight. milestones XXXX several a was to

of American North as last North North year-over-year international achieved and full three quarters. year. years, EBITDA Each MSP positive for four International year. in all achieved our and For the staffing the growth growth American segments: operating and MSP American for quarters. year-over-year growth year-over-year Staffing, for the North American achieved revenue achieved full growth X quarter first time the in year-over-year well each we as

year, consecutive we year. reducing SG&A simultaneously while for third the full improved the For margins gross

income for achieved also full a four net years. positive first in year We the time

well it our XXXX, to in going foundation divestiture a for our And on strong the forward fitting strong COVID a a seven landscape, disruption. optimism growth internally while the has maintaining end We and to entered we accordingly. workforce. adjusted gain and obstacles years. confidence overcoming our continue We macro fourth year been the frequently challenge year with changing delivered the trajectory despite quarter, that finally, great Excluding ongoing the executed various today's to

of at remain specifically the workers approximately disruption for workforce U.S., and million across continue throughout subsequent ebbs we anticipated, As Until remains recovery pace to and progressed shortages without Thanks operating the job positions nearly and/or the time, businesses and multiple and determination million there operate X will and every loom of to Over rapidly. large to continued booster large the delta strategic chain execution strong electing create the global continue to with in across resigned believe delivered industries. continued market. openings. to necessary our unemployed supply than resilience from people despite of date, projected. the flows colleague then, challenges ease. current we moderate will we chain to economic variant the regardless the agility to in priorities. are address client and albeit broader shortages some due globe, demand part the Volt successful XXXX, performance XX employment the of the and a and availability, Clearly, impacts COVID-XX spread vaccine more To supply

Let to results. over me call a to of Lenny Lenny? give detailed overview turn the our now

Leonard Naujokas

increased quarter, million was you, Thank the of or compared XXXX for year Revenue or $XXX.X adjusting million quarter comparable million for X.X% in prior translations, increase. to After $XX.X Linda. million $XXX.X X.X%. fourth a the revenue $XX.X currency

performance. direct past our XXXX, to outpace continued QX hire During business

up which included compared up and from additional an week. For year were we to the the XX.X% QX prior XX.X% 'XX, quarter,

hire segment and attributable $XX.X to by and Direct clients. revenue reported clients, expansion X.X%. adjusted mid-market $XXX.X increased business within the XX.X%. combined million, Our primarily exceeded North Staffing quarter XX.X% retail revenue The of business increase combination year-over-year American or an and XXXX increase of fourth wins a of new existing with was of million

adjusted in as Belgium Staffing increase an the was and Direct or well Our with and direct expansion as XX.X% million of revenue revenue increased due and in segment XX.X% XX.X%. the million, by year-over-year to fourth exceeded France U.K. $XX.X existing hire Singapore. hire quarter International business of business XXXX $X.X increased clients

reported of American MSP in demand up to $XX business. compared segment primarily increased North adjusted X% payroll million, prior revenue service Our the to attributable year, our

the P&L. the our International margins quarter, down to in segments. for North year XX.X% was in comparable American due compared Staffing XX.X% Moving improved Gross QX XXXX margin to primarily prior and

in to a North Our American segment government subsidies. increase the direct revenue, growth in from Staffing basis points wage business due and hire XX benefit increased higher-margin

the XXX MSP of increased compared an to or increase direct claims to compared and partial to and to incentives XX.X% costs in in million related XXXX. year footprint. in or due quarter. million business Restructuring lower XXX branch year to segment revenue California $XX.X points, The cost our increased by fourth primarily volume, the year sales the strategic related million quarter labor impairment consolidating headquarters to basis million primarily prior income the $XX.X points a our facility and of SG&A facilities to primarily due $XX.X in of increased second Operating comparable XXXX prior XXXX XXXX. for North prior Our real to XX.X% offset XXXX, American half ongoing of costs, of was on $XX.X offices cost in included was to in increase quarter for higher closure revenue million comparable experience, quarter medical negative The hire higher business due Orange, charges charges $X.X quarter. the primarily business fiscal impaired U.K. in mix. loss decreased fees basis Belgium. decreased of in increase of due International the million partially throughout higher-margin QX of the of was Impairment increase the million fiscal in estate costs primarily to reductions. an $X select and due the costs professional related fiscal expense $X.X

$X.X $X.X charges, of North impairment XXth income segment consecutive American increase million, ago. million. previously each income was income million and from operating $X.X operating year-over-year decrease quarter Staffing actions million, $X.X Operating result was a of was for year our restructuring a to and flat was mentioned. International our income recording positive of American segment. year, million, Excluding a compared the $X.X million as an MSP increase $X.X a was operating income This North for prior the operating operating Staffing

compared compared For prior to $X.XX XXXX. to X.X% per EBITDA share, fourth for was EPS, revenue, diluted $X.X $X.X improvement for which and increase QX impairment XXXX of year. XXXX, or million was million was $XX.X charges, GAAP net a Adjusted Adjusted of quarter QX QX excludes per million a XXXX. restructuring $X.X $X.XX the or million income share diluted

After compared in XXXX. a million XXXX MSP X.X%. shift, and for Looking was revenue prior the delivery fiscal X.X% or the at $XXX.X million fiscal million Revenue million increase. currency model $XXX.X adjusting year, translations $XX.X for increased $XX.X to or

our up additional to an During and XX.X% which week. prior Direct XXXX, compared strong XXXX, momentum, from Hire continued the year increasing business XX.X% fiscal included its fiscal

for XX.X%, Our revenue primarily our prior year, which fiscal compared increase included increased $XX.X Staffing to million combined International increased segment X.X% XX.X% X.X% $XXX.X year. million, expansion combination prior revenue $X was in adjusted and business North an the Direct of The and and revenue within or primarily to an the France a of American of retail XXXX attributable Staffing extra clients, up hire clients. wins due new million exceeded was Adjusted the from existing year-over-year or staffing $XXX segment business business with to reported week. Singapore. mid-market million, by and of increase

result XX% In exceeded hire in revenue. and slightly direct by addition, hire a service United Direct XX.X%. increased XXXX revenue Kingdom higher of increased and the payroll fiscal revenue year-over-year as

attributable for demand American our North within business. $X.X International service North margins $XX.X MSP reported XX.X% due was XXXX Staffing increased in segments. million, compared segment primarily XXXX, X.X% and XX.X% payroll of up revenue primarily fiscal to our American Gross year, margin million to from to fiscal improved adjusted Our prior or in

segment subsidies. a mix due American business North government Our to Staffing higher-margin and from basis increased wage benefit a points XX of

$X.X as related real on million a the $X.X due This was offset result improved our or primarily segment to International partially million was to and software million costs by XXX business decreased a and million in to in due XXX claims. labor American of and facility-related revenue points, points, increase XX.X% was North primarily the increased in compared $XXX.X MSP basis primarily fiscal year. direct margins to of hire an to Our in mix. Belgium. XXXX XX.X% million business improved for due revenue the $XXX.X expense prior $X.X in due sales increase incentives expenses. higher or SG&A medical decrease costs U.K. volume and higher lower estate travel decrease and lower footprint consolidating of The in and

In prior locations Impairment the second primarily $XX of initiatives. in in addition, Impairment primarily impaired higher costs million, charges was and from throughout well International expected the were compared exiting costs fiscal the million The year. $X.X North useful fees North million, to Operating result million Restructuring year, in was mentioned. XXXX $XX.X ongoing is to million, to related life XXXX was million prior our decrease primarily in fiscal XXXX. related change a half facilities million $X.X for income severance a year-over-year $X in lease charges a $X.X year of to American the million. cost professional cost of American XXXX, prior a to operating $X.X costs actions were loss in XXXX income as improvement $XX.X of year. America. prior office income fiscal an $X.X fiscal the primarily compared of assets. in strategic fiscal software segment fiscal income and included as charges million Staffing of The $X certain Staffing XXXX as capitalized a million. were Operating previously $X.X of operating from increase increase of in million was related related $X.X of consolidating a to million, result North MSP the

improved $X.X revenue, $XX to compared Adjusted $XX.X million $XX.X share. and $X.XX or by impairment For XXXX per of diluted which fiscal was improvement EPS, share. million net fiscal million for charges, or restructuring XXXX. EBITDA XXXX, X% was to $X.XX Adjusted million a to fiscal excludes prior diluted year income per compared

prior $XX.X additional short-term few key an and the and increase We flow a from to $X.X in million the and combined on cash of sheet. equivalents the year Moving million with investments, balance ended million to cash year. a items $XX.X restricted in fiscal compared cash and

January million $XX.X since from million $XX.X On Our of flow expect taxes, or QX. increased of and remained million, has CARES in July to We we $XX.X long-term to the sheet and XXXX generated seen million Trend our from capital paid X, $XX October. XXXX, XX% expenditures payment and operations, $XX Act. We cash million in deferred XXXX, was January from at paid this XXXX. make balance with XX.X% final in total debt million. security cash employer available liquidity January $X.X under in second our social on for which the

Looking towards restrictions early the in remains quarter, market be to impacted we although labor trends promising. and first are tight, by operate, areas the we continue

prior taxes. consistent throughout year our revenue should should expect increased high quarter. the X% in over back last will over year. margin as I improved the $XX result to improve now range. turn with in percentage be over We year a last to the Linda? revenue believe margin be payroll We of result increasing the X% EBITDA should to Linda. Gross call SG&A year lower with million gross the

Linda Perneau

Lenny. you, Thank

Before performance addressing the sharing shortage we on the as how Since variant like commentary aggressively well third impact, are highlights, facing address we coming headwind, as specifically U.S. the our and on on the our variant when known focused what the COVID as largely fast-spreading Delta business, ourselves ongoing in call, months new to a earnings anticipate quarter impact would we in labor Omicron. find I discussions COVID

there and is exact is disruption mandates. the mask the places, fueled denying public learned caused much on school on no events, has variant, it the there and health be openings quickly some vaccine the still this about While air and travel, of university return effectiveness to implications of the has in

an XX is The increased health talent to our seen quality weeks, to several additional experiences market. over various labor have impact attendance workplace last an use placing concerns, client recruit pressure our and news last good increase our due challenges in well an given technology at poised tight safety the already efficiently. and to of on the and are Over locations we address such field of and we months more source employees

communications, last course, to experience. client-specific replaced board time, XX that Since the the our them brand. allowing The an and engages our better enhanced AI-powered per automated to We experience to been surveys, site which personalized enhance providing board a the and also through functionality. invested significantly look of new activities the job jobs.volt.com, recruiter, quarter, job for these in tools saved chatbot. nearly the hours client continue we both This former board, redirect reflects user and feel actively high time combination job the The Volt scheduling month advancements candidate clients. of of real candidates and in per payoff have our more

applies. Although job converting for to this time, active new short those with a of nearly site has XX% of been thousands period have seekers only our career site seen to of we

expecting This to the and option we field our we for skill pay access allow sets more wage program roll to early Lastly, for for generally a greater employees, desirable by field workforce. daily a place. benefit engaged are ultimately employees, out leading will retention a

we seen talent scarce. remains and availability XXXX, throughout As for have demand high is

All known role coming quarters. unknown as of an the headwinds these and talent integral benefits and we will advancements in the play face

would headcount Supreme points ETS, weekly including mandates, Temporary unvaccinated of employees vaccine more of weekly American U.S. on A with combination make. imposed clients of the mandate or key or variations Court or our ruling or which like Standard, to of requires around a I to many require of ETS, clients the the employers North the testing at requirements, of larger portion enforceability We daily both. total also Despite population substantial date staffing. the employee have ultimate employees. couple anticipating or XXX a testing are the from OSHA's of vaccines uncertainty Emergency field Overall, actual effective represents these in than our

trust the vaccination success with again, Court. is which client handled have program tribute and a onboarding, status solution be strength from is mandate lessons teams setting have decision federal implement the our to pending The the to relationships efforts for managing us scale these with when tested. compliance clients of early inquiries our much And our secured the that prevailed. address of clients, been the teams manually, of on learned strategy hiring would the expertly has handle from needed, population, exemptions. close to will religious the adopters to dedicated This in a have we we and comprehensive, once task The that each Supreme Knowing broader partnership allow the have teams. confidence in are Our medical and a employee automated daunting a already reviewing during situation as to implemented. sustainable, company-wide prepared be shaped an guidelines

Now revenue segments. overall let line XX% operating technical this to year-over-year, Representing the our American than me our basis across year, for continues year third turn commercial delivered business and improvement. growth the to points growth network XXX branch to retail margin. XX% or some revenue performance our from gross higher consecutive In maintain XXX highlights North margins of full of Staffing,

expected. contributor Hire year-over-year the a year; new for life fourth in momentum IT, contribution in up For Staffing, investments XX.X% operating strong the XX.X% paid income. the our year. professional up throughout key with most sciences, Direct The in as reported U.S. the segments our fourth engineering making American improvement year, improvement $XX model full XX.X% and the countries three their quarter for and an margin operating staffing quarter North to search and International on MSP same and significant business significant gained the a we North quarter American year made fourth year. was in $X.X this to the time, professional substantive We for fourth XX% segments know North million; quarter full work international done. international and And and All in teams the during turnaround. which at yet American inflection $X.X point trends million. All be off. of made in million; focused reported the implemented positive the XXXX, was still segment, the in is the believe there

XXXX EBITDA now towards progress our shifts and to beyond X% focus as Our margin target. we

a for and and candidate client experience. retail to a of enterprise our through execution higher-margin including Looking both key investments Fueling as lines business, allowing are in balanced our tailored business hire direct several of segments, and retail areas. more the a branch forward, we bifurcation of on the North focused Direct MSP. portfolio evolution American through and Continuing successful growth more network, business Hire purposeful our result

while we model technology recruiting Continued can to of new productivity and educate this sourcing navigating as sets. tools operations. our well in successfully higher-end our launching back-office skill plans And largely for U.S. existing this partnerships leverage support And Volt candidate technology advantage drive support, to vaccine specifically believe efforts we we're and partner, is India-based as any future client efficiency. offshore in operational mobilize quickly a expansion and today, demand to to competitive internal preparing as used the has supplement mandates. to meet clients in

for seeing our allow a valuable multiple clients are enhanced trends demand, and early operating to across workforce as across partner mentioned, we momentum Lenny segments. us The technology services continued tools industries. in Volt in challenges three high solving As be are offers encouraging all are

I remaining margin deliver We will year-over-year for XXXX, Our of tackling Operator? the revenue year open full growth, and in demonstrated our pandemic. income X%. net the determination continued have margin of adjusted onset call with questions. we dedication XXXX are same line since steadfast now positive goal again to expansion, will the improvement that we believe top commitment of teams the for and an EBITDA our EBITDA resilience,

Operator

Instructions] Company. Our Sidoti is your from first question. & [Operator with Vogel question Josh proceed with Please

Josh Vogel

are New well. Lenny. and Year. you Hope Linda guys Hi, Happy

Linda Perneau

you, Josh. New Year. Happy to Same

Leonard Naujokas

Year. New Happy

Josh Vogel

to along regards pass Hope quickly. better Herb. my he please And gets

Linda Perneau

that. We you for certainly will. Thank

Josh Vogel

have I questions - actually. a of great. That's here, Yes. bunch couple a

specialty or peers. stronger And The find macro candidate curious, everyone easier is any first pool sets, it markets where to the little a having a bit may there finding one, where supply I relative thus, challenges was skill you to seeing? are be just yourself navigate you're

Linda Perneau

similar and are could think are that all reasons. type in I of yes skill a that of say we I finding all to labor us are Regardless a are increasing seeing set, very Josh. tight wish situation. all it's I same Unfortunately, across the of believe across tough sets. for we of Individuals market, are that, leaving tight the Wages in skill I market labor skill industry to sets jobs a individuals. variety find -

candidates about across all we And So much is in broadening sets. across is can. it it skill of net to skill wider and capture our further really those the across board, order sets as that available

Josh Vogel

they're you attract seeing. Yes, or how into I'm and more curious it general of that going actually aware the question are ability becoming business the about up? And your pay affects rates that's it my and just I'm or successful in sure environment candidates we're next understood. and needed wage how easy led wage clients to inflation along passing more as there, this is it to commentary

Linda Perneau

need to wages challenges to wages recognize seen clients It's schedule. XX that an Yes. challenging or the are a the be flexibility the certainly for sign-on They to bonuses It the shift XX need in out retention months, the bonuses to add recognize increase to raise to most part. and recognize clients used past They we've interesting incredibly there. over that. or get The been dynamic.

much order So broad to of get to more quality in the a what there is clients talent that done need acceptance be now. needed is

digits from across wage mid-single and skill That year is definitely commensurate again, rate we've by It's wage an a is in us sets as increase increase It accompanied markets. increase. varies, the inflation. to the typically the So across seen ago. approximately bill accretive

most part, the for So is accretive that to Volt.

Josh Vogel

your else gross the at point closer what drove XX margin specifically you I I the the bump in the direct anything And there? those in appreciate hire bridge higher end came is if insights. basis stronger? above strong performance. that quarter, results of could was looking guidance? there wondering all because Is just the Basically, the Or

Linda Perneau

absolutely incredibly perspective outperformed in and also helped teams certainly strong to the from hire. drive in not a American board, quarter. only We quarter overperformed international. and was that It margins North up the Staffing, in hire for but direct across The direct the an

Josh Vogel

Got it. to that mean the you And other strong between accrued spot Lenny, to I I I'm here, the expenses. a timing normally put but us don't cash quarter. and in curious if would ask generation her, on really payables of and was little receivables bit

Leonard Naujokas

So early in the in have the we $XX did week of million been first last receive that received about payments week in October have of ordinarily November. would

Josh Vogel

so take also seasonal my of I was Great. that international, little performance - a there, especially of was to else, at lot vacation. strong model, especially was that in bit you outperformed but the months. sequential really quarters. a tend looking a know three more right. everywhere summer least to surprised revenue return at I over All there. last the on - by I downtick there based okay, just patterns, a They the I during

sequential can me tracked time way to still another month-to-month frame? quarter? the to And especially was year-over-year obviously of that August the advance, give So you at I that, guess but from an in revenue it due how an in idea is impressive look downtick during

Leonard Naujokas

the or month QX? QX of just - in So the like QX asking revenue to in you're specifically

Josh Vogel

the look we Yes. revenue like? what international, look I'm trajectory month-to-month the in at curious, when

Leonard Naujokas

Yes.

the obviously, normally the we depending months get slowdown country. the on So summer would summer - months, in in a

in off best vacations. time to So wanting some August the pent-up revenue lower due whilst of I'll people to it or demand at take was call

progressed. revenue did quarter that as So increase the

Josh Vogel

back Great. going Okay. did more, say hop I range in What you number was queue. in and the typing. I'll And to be feverishly QX? one SG&A the was

Leonard Naujokas

range. the million high In $XX

Operator

Mike is next Our with SGF question Capital. your with proceed Please from Hughes question.

Mike Hughes

just on pricing. one The first is

are higher call, the of mentioned were clients some your just experiencing you a of perhaps last from larger getting supply bit some chain on On who an that? costs. pushback give little pressure and us you you update Could

Linda Perneau

Yes.

have those run of we talk most technology, a pressures of Good so can little want leveraging job operate little clients which in identifying we those that ways operate more costs run Yes, see instances, at we levels nice ongoing ways pricing in Mike. hi, helped continue remove continue So, to again, of you. leanly, many a we instances, has to to a we that that done efficiently, to the continue some can more at. we can to to each which

a bit. think continue to as to see 'XX. going head we're free will I it these pricing of that begin expect I we pressures to into do some up little But some we're now, right team certainly in innovative the offsetting of ways. has and of certainly creative pricing really those job some pressures - we're those still with a challenged done nice

Mike Hughes

quarter July - worse about it is Okay. is the pricing pressure now? the I Or In the in in quarter? it the so but October now, than ago the worse last quarter, guess, it was was same? months And

Linda Perneau

think I that it's worse. don't

it's I the think about same.

negotiating clients varies, new new basis. think a on business. business as we're It the really I around and is conversations even obviously, month-to-month that it depending as we're upon pricing getting

So not say worse. not it's I gotten - it's say that I I would would better. don't gotten

and of a clients. it's sort our think of to and operate pretty having remained normal I and way how consistent engage we're negotiate with

Mike Hughes

really that something And you else? have a gross compression Okay. Is on or basis pricing which in is full And gross that helpful. Solutions a contract shows margin margin. topic, it point XX revenue Workforce related in Slide bridge, a about perhaps year-over-year the then resulted X,

Linda Perneau

sure slide pulling right up the take - to just actual the I'm pulling it to just looking the you're a does with believe I'm I the I'm look response make We're just that slide. do up pulling have at. slides pricing. giving the it you at to to - do

Mike Hughes

It X. was Slide

Linda Perneau

up. We're it pull trying to

this back We'll If come you you to want that. ask one. have another to question,

Mike Hughes

Sure, sure.

really So the in hire this has that the last well two sustainable How performed is business into quarters. direct going year?

Linda Perneau

Yes. I to sustainable. it be mean expect I very

quarter. recall, this we team early very I be while overall So a numbers. I expect towards very our to they invested year, June And to continuing That shift had professional group, they may in contributor outperform mentioned year. year. indications last our weren't end in fourth direct strong steam last the to do continuing QX larger to that picked up year. May, huge a search to the contributor. strong. of Overall really you hire we're a be 'XX, them I for their which expect

So I to throughout 'XX. continue do expect that

Mike Hughes

been then some Can about there last over that been And a MSP for have I think in base. year? next the North that RFP the business, the bit and customer consolidation maybe prospects pipeline the you talk you of business the of Okay. American call has talked kind just about little slower

Linda Perneau

Yes.

So again, kicked the be certainly win opportunities we've and nice solid. MSP within have clients, good of They I QX. optimistic performance. a cautiously They 'XX. the towards is existing several are which end to expansion as some off very continue They showing traction new very about implemented

So that that as American responding and presentations. begin we'll - North well. is broaden see A our revenue that we'll will and continue staffing There to to organization to that collaboration they're across RFPs to the team, continue with that generate start also greater that - 'XX. into of lot accelerate will

this high of drive So I have some 'XX. in their to ability very performance a faith stronger team level in and

Mike Hughes

Okay.

quick two for Just more you. ones

metric fourth for the fourth quarter? you retail Did for the you think have the give gave you I mix year. quarter? for for it Do it the the

Linda Perneau

get can fourth out but it don't I that broken for have you. I the quarter, for

Mike Hughes

could it. I Okay. into back

prior question. given And then in think the the it just quarters. I last you've out

in you the quarter I expecting you said were of line current X%. X% think to growth top

Linda Perneau

Yes.

Mike Hughes

to in the What wave? are you far as as degradation related baking growth COVID latest

Linda Perneau

Yes.

mean, there. is I - that that clearly built into So

happening rash in We of the acceleration a more and an have that of last actually weeks. of couple seen

beginning more prevalent, it less last It prevalent. has So QX I was increasingly over couple in of of the become weeks. the 'XX, of like said

So of we're the majority as seen, start of to quarters. remains without see the to definitely to I quarter having It the will but attendance head smaller on impact impact, folks quarantine. be impact believe subsequent higher that more QX. into be we'll and we seeing

Mike Hughes

it? Can quantify you

Linda Perneau

March not little I'm more has what Certainly, quantify sure impact that I knowledgeable our just really know that see. I I something it of - exactly it yet. it take going to we'll to better want a think begun don't have quantify a of we'll and to Again, of I by about hold. can idea we're it's sort call, that kind be better yet.

Mike Hughes

it. Okay. I appreciate

Linda Perneau

Yes.

back come Mike. question, answer your other and me Let I'll

So I've got up. the now slide that

basis impacted, the some sick from from Pricing much smaller is reason was coming actually point for percentage also COVID So that impact. a workers' but and it was of some comp, pay. decline impact also really increased higher

Mike Hughes

quarters. in comp, think we a How Okay. forward drag been And to a here? for little the few over bit a you I about had since weeds, think, not should too last the get far it going of positive that workers' but was

Linda Perneau

Yes.

and many predict, so harder could I to there's change ins thing is a it with because from comp outs it say somewhat one It think and I could workers' perspective. next today, week.

similar to we what I in don't any saw something reason we think should believe 'XX. otherwise. see that to I have

Operator

Company. Please & from Vogel with is question Josh proceed Our your question. Sidoti with next

Josh Vogel

government you here. add-on I was parts you if get be just gross could you're gross about expecting of Just your trends QX, to guiding the the moving absence direct year-over-year trying for that. margin it a that reconcile year flat ago? in a Based strong to Just margin. to year-over-year. Is flat subsidies curious talk hire from to in but continue one comments more off

Linda Perneau

Yes.

certainly that lower we're see government think a subsidy impact. to I going

about I we're I some of talk think of as we're pressures, still, the we that account. some pricing taking think into

look things Happy there, I we of back But in feel of number we being - you a flat. more to specifics. into some margin we're the terms there's give in confident circle can and think guidance think in Josh. further and I that

Josh Vogel

in great 'XX. Well, performance it. Got

seeing Looking year. Have you what this great night. a to do forward

Operator

of have will remarks. We over the session, the call closing question-and-answer for now end reached to Perneau Linda and I the turn

Linda Perneau

your today's your results interest forward We our to Volt. XXXX speaking and for you first we look quarter in appreciate call with in when continued participation March. in We report again fiscal

Operator

lines may participation. this you Thank you disconnect time. and your concludes conference, at for your This today's