Staffing 360 Solutions Inc (NASDAQ: STAF) Expects to Report 20% YoY Revenue in Q2 2021

Staffing 360 Solutions Inc (NASDAQ: STAF) expects to post 20% year-over-year revenue growth for the second quarter of 2021.

It is based on the significant improvement in its three businesses over the past 11 weeks. The company is also forecasting 20% ​​year-on-year profit growth in the second quarter of 2021.

Staffing 360 would report revenue of over $ 52 million in the second quarter of 2021. As a result, it eliminated the $ 1.5 million loss recorded in the second quarter of 2020.

Cost reduction measures

Its operating profit is $ 457,000. The company significantly improved its revenues in the second quarter of 2021 thanks to cost-cutting measures adopted during the coronavirus pandemic.

It achieved savings of $ 0.8 million year-over-year in the second quarter of 2021.

Staffing 360 raised capital in February 2021, December 2020 and April 2021 and reduced its interest expense on its income statement.

Expects to improve income

The company significantly reduced interest expense to $ 1.2 million in the first quarter of 2021, from $ 2.4 million in the first quarter of 2020. It also plans to reduce interest expense to less than 1.1 million dollars in the second quarter of 2021 compared to 2.1 million dollars in the second quarter of 2020.

As a result, Staffing 360 forecasts a positive net result in the second quarter of 2021.

Staffing 360 is pleased to receive notification regarding the complete cancellation of the $ 10 million loans made to its indirect affiliate – Monroe Staffing Services, LLC, from the Small Business Administration (SBA).

Staffing 360 has requested the cancellation of an additional $ 9.4 million PPP loan. He is optimistic that this loan amount will also be forgiven by the SBA.

Staffing 360 CEO Brendan Flood is excited to present potential business opportunities that improve ROI and revenue going forward.

He said every business segment is recovering from the blues of the coronavirus pandemic. Internal communication, cost reduction measures implemented in 2020, and strong financial management and control help the company organize a smart recovery.

The cancellation of the PPP loan is essential for the company to emerge from the difficulties brought by the coronavirus pandemic. As a result, the company has made significant progress in strengthening its balance sheet over the past year.

The cancellation of a $ 10 million PPP loan has helped the company reduce its accumulated debt by 55% over the past 12 months.

Brendan is delighted with the business momentum in the advancing economies of the United States and the United Kingdom. The company has signed more than 70 customer contracts in its commercial recruitment activity.

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