EX-99.1
2
a5306436ex99_1.txt
EXHIBIT 99.1

                                                                    Exhibit 99.1

           Volt Information Sciences Reports Fourth Quarter
                       and Fiscal Year Results

    NEW YORK--(BUSINESS WIRE)--Jan. 9, 2007--Volt Information
Sciences, Inc. (NYSE: VOL) today reported financial results for the
Company's fourth quarter and fiscal year ended October 29, 2006.

    Volt will conduct a conference call webcast at 10:00 A.M. (EST)
today to discuss fourth quarter and fiscal year results. The
conference call dial-in number is 1-800-857-6028 (domestic) or
1-210-234-0013 (international), passcode: Fourth Quarter. The
conference call will be broadcast live over the Internet and can be
accessed for the next 30 days at
http://www.volt.com/investor/press_release.cfm.

    Attached is a summary of the Company's results of operations and
the notes thereto. The notes are an integral part of the summary.

    FOURTH QUARTER - FISCAL 2006 RESULTS

    For the fourth quarter of fiscal 2006 ended October 29, 2006, the
Company reported net income of $13.6 million, or $0.86 per share,
compared to $8.4 million, or $0.54 per share, in the fiscal 2005
fourth quarter, an increase of 62%. Net sales for the 2006 quarter
increased by 3% to $610.2 million, compared to $590.2 million in last
year's comparable quarter. Income before minority interest and income
taxes increased by $4.3 million, or 25%, compared to the 2005
comparable quarter. The minority interest was repurchased from Nortel
Networks, Inc. on December 29, 2005.

    FISCAL YEAR 2006 RESULTS

    For the twelve months of fiscal 2006, the Company reported net
income of $30.7 million, or $1.97 per share, compared to net income of
$17.0 million, or $1.11 per share, in the comparable fiscal 2005
period, an increase of 80%. Net sales for the twelve months of fiscal
2006 increased by 7% to $2.3 billion, compared to $2.2 billion last
year. Income before minority interest and income taxes was $51.6
million in the fiscal year 2006 compared to $36.3 million last year,
an increase of 42%.

    Commenting on the results for the fourth quarter and year, Mr.
Steven A. Shaw, President and CEO of Volt, stated "Staffing Services
continued to be the main force behind our improved fourth quarter and
full fiscal year results. Strong demand in our IT and Engineering
markets, tight control of workers' compensation and unemployment
costs, and solid execution of our business plan to focus on higher
margin clients and services were the primary drivers for the improved
results. In addition to our Staffing Services segment, the Directory
Services and Computer Systems segments continue to be major
contributors to the bottom line. We are pleased with both our results
and corporate initiatives and are confident that our capable employees
and broad array of workforce, technology, and telecommunications
solutions will provide us with the opportunity and ability to continue
to grow our Company."

    STAFFING SERVICES

    The $34.7 million, or 7%, increase in sales in the fourth quarter
of fiscal 2006 from the comparable fiscal 2005 period was due to a 12%
increase in the Technical Placement division partially offset by a 1%
decrease in the Administrative and Industrial division. The increase
in operating profit of $8.7 million was due to the increase in sales,
an increase in gross margin percentage, primarily due to an increase
in high-margin direct placement business, reduced workers'
compensation and payroll tax costs, and a decrease in overhead costs
as a percentage of sales. The segment has been working closely with
customers to better manage worker's compensation costs which are
approximately $1.4 million below last year's run rate for the quarter.
The most significant aspect of the reduction in overhead costs as a
percentage of sales was a reduction of approximately $4.2 million in
general insurance costs as a result of retrospective adjustments
related to the division's positive claim experience.

    COMPUTER SYSTEMS

    The Computer Systems segment's sales increase of $3.0 million, or
7%, in the fourth quarter of fiscal 2006 over the comparable 2005
period was primarily due to increases of $5.5 million in new business
as a result of the segment's acquisition of Varetis Solutions in
December 2005 and an increase in the Maintech division's IT
maintenance sales of $0.9 million partially offset by decreases in the
segment's other divisions. The decrease in operating profit of $4.4
million was due to decreased gross margins, increases in overhead
necessary to support the sales increase and additional amortization of
intangible assets.

    TELEPHONE DIRECTORY

    The Telephone Directory segment's sales decrease of $0.4 million,
or 2%, for the fourth quarter of fiscal 2006 from the comparable 2005
period resulted from decreases of $0.6 million, or 3%, in publishing
sales due to the timing of delivery of telephone directories. The
segment's operating profit increased by $0.6 million, or 13%,
primarily due to increased gross margins.

    TELECOMMUNICATIONS SERVICES

    The Telecommunications Services segment's sales decrease of $16.1
million, or 36%, in the fourth quarter of fiscal 2006 over the
comparable 2005 period was due to decreases of $14.5 million in the
Construction and Engineering division and $1.6 million in the Network
Enterprise Solutions division. The higher sales in the Construction
and Engineering division in fiscal 2005 resulted from customer
acceptance of several large construction jobs in that year. The
segment sustained a loss of $1.7 million in the 2006 fourth quarter
compared to an operating profit of $0.8 million in the prior year due
to the decreased sales and higher overhead as a percentage of sales.

    GENERAL CORPORATE EXPENSES

    The decrease in General Corporate expenses compared to the 2005
quarter was related to higher professional fees and costs related to
the first year compliance with the Sarbanes-Oxley Act in the 2005
quarter.

    CASH AND CASH EQUIVALENTS

    Cash and cash equivalents, excluding restricted cash, was $38.5
million at the end of the quarter. At October 29, 2006, the Company
had sold a participating interest in accounts receivable of $110.0
million under its securitization program and had the ability to
finance an additional $90.0 million under the facility.

    In addition, the Company may borrow under a $40.0 million
revolving secured credit facility. The facility requires the
maintenance of certain accounts receivable balances in excess of
borrowings and terminates in April 2008 unless extended.

    Effective December 19, 2006, the Company's wholly owned
subsidiary, Volt Delta Resources ("Delta") entered into a stand-alone
three year $70.0 million secured, syndicated, revolving credit
agreement ("Delta Credit Facility") with Wells Fargo,N.A. as the
administrative agent and arranger, and as a lender thereunder. Wells
Fargo and the other three lenders under the Delta Credit Facility,
Lloyd TSB Bank Plc, Bank of America, N.A and JPMorgan Chase also
participate in the Company's $40.0 million revolving credit facility.
Neither the Company nor Delta guarantee each other's facility but
certain subsidiaries of both are guarantors of their respective parent
companies. Under the Delta Credit Facility, Delta is required to pay
down approximately $38.0 million in intercompany debt owed to the
Company within 30 days of closing.

    Volt Information Sciences, Inc. is a leading national provider of
Staffing Services and Telecommunications and Information Solutions
with a Fortune 100 customer base. Operating through a network of over
300 Volt Services Group branch offices, the Staffing Services segment
fulfills IT and other technical, commercial and industrial placement
requirements of its customers, on both a temporary and permanent
basis. The Telecommunications and Information Solutions businesses,
which include the Telecommunications Services, Computer Systems and
Telephone Directory segments, provide complete telephone directory
production and directory publishing; a full spectrum of
telecommunications construction, installation and engineering
services; and advanced information and operator services systems for
telephone companies. For additional information, please visit Volt's
web site at http://www.volt.com.

    This press release contains forward-looking statements which are
subject to a number of known and unknown risks, including general
economic, competitive and other business conditions, the degree and
timing of customer utilization and the rate of renewals of contracts
with the Company, that could cause actual results, performance and
achievements to differ materially from those described or implied in
the forward-looking statements. Information concerning these and other
factors that could cause actual results to differ materially from
those in the forward-looking statements is contained in Company
reports filed with the Securities and Exchange Commission. Copies of
the Company's latest Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, as filed with the Securities and
Exchange Commission and the New York Stock Exchange, are available
without charge upon request to Volt Information Sciences, Inc., 560
Lexington Avenue, New York, New York 10022, 212-704-2400, Attention:
Shareholder Relations. These and other SEC filings by the Company are
also available to the public over the Internet at the SEC's website at
http://www.sec.gov and at the Company's website at http://www.volt.com
in the Investor Information section.



                   VOLT INFORMATION SCIENCES, INC.
                           AND SUBSIDIARIES
                        SUMMARY OF OPERATIONS
                             (UNAUDITED)

                        FOURTH QUARTER ENDED      FISCAL YEAR ENDED
                       October 29, October 30, October 29, October 30,
                          2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
                        (Dollars in thousands, except per share data)

Net sales                $610,220    $590,224  $2,338,453  $2,177,619
                       =========== =========== =========== ===========

Income before minority
 interest and income
 taxes                     21,434      17,098     $51,569     $36,293
Minority interest --
 Note A                         -      (2,320)     (1,021)     (7,024)
                       ----------- ----------- ----------- -----------
Income before income
 taxes                     21,434      14,778      50,548      29,269
Income tax provision       (7,870)     (6,423)    (19,898)    (12,229)
                       ----------- ----------- ----------- -----------

Net income                $13,564      $8,355     $30,650     $17,040
                       =========== =========== =========== ===========


                                       Per Share Data
Basic
   Net income               $0.87       $0.54       $1.98       $1.11
                       =========== =========== =========== ===========


Diluted:
   Net income               $0.86       $0.54       $1.97       $1.11
                       =========== =========== =========== ===========


Weighted average number
 of shares outstanding
 - basic               15,605,948  15,338,956  15,484,600  15,320,305
                       =========== =========== =========== ===========

Weighted average number
 of shares outstanding
 - diluted             15,736,770  15,387,689  15,591,825  15,416,968
                       =========== =========== =========== ===========

                            (Notes Follow)




                   VOLT INFORMATION SCIENCES, INC.
                           AND SUBSIDIARIES
             SUMMARY OF RESULTS OF OPERATIONS BY SEGMENT
                             (UNAUDITED)

                        FOURTH QUARTER ENDED      FISCAL YEAR ENDED
                       October 29, October 30, October 29, October 30,
                          2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
Net Sales:                         (Dollars in thousands)
-----------------------
Staffing Services --
 Note B
  Traditional Staffing   $500,583    $468,771  $1,915,649  $1,765,838
  Managed Services        302,500     269,063   1,109,315   1,157,168
                       ----------- ----------- ----------- -----------
  Total Gross Sales       803,083     737,834   3,024,964   2,923,006
  Less: Non-Recourse
   Managed Services      (289,988)   (259,406) (1,052,682) (1,121,196)
                       ----------- ----------- ----------- -----------
  Net Staffing Services   513,095     478,428   1,972,282   1,801,810
Telephone Directory        24,914      25,326      79,351      82,298
Telecommunications
 Services                  28,903      45,047     118,862     139,011
Computer Systems           48,214      45,199     187,930     173,119
Elimination of inter-
 segment sales             (4,906)     (3,776)    (19,972)    (18,619)
                       ----------- ----------- ----------- -----------

Total Net Sales          $610,220    $590,224  $2,338,453  $2,177,619
                       =========== =========== =========== ===========

Income before Minority
 Interest and Income
 Taxes
Segment Operating
 Profit (Loss)
-----------------------
Staffing Services         $23,226     $14,511     $58,799     $31,179
Telephone Directory         5,307       4,684      15,828      14,895
Telecommunications
 Services                  (1,707)        790      (1,168)     (2,429)
Computer Systems            6,815      11,222      28,447      35,801
                       ----------- ----------- ----------- -----------
Total Segment Operating
 Profit                    33,641      31,207     101,906      79,446

General corporate
 expenses                 (10,667)    (12,336)    (43,350)    (38,839)
                       ----------- ----------- ----------- -----------
Total Operating Profit     22,974      18,871      58,556      40,607

Interest income and
 other (expense)           (1,325)     (1,191)     (4,663)     (2,234)
Foreign exchange gain
 (loss) - net                 202        (139)       (505)       (255)
Interest expense             (417)       (443)     (1,819)     (1,825)
                       ----------- ----------- ----------- -----------

Income before Minority
 Interest and Income
 Taxes                    $21,434     $17,098     $51,569     $36,293
                       =========== =========== =========== ===========

                            (Notes Follow)




                   VOLT INFORMATION SCIENCES, INC.
                           AND SUBSIDIARIES
              CONDENSED CONSOLIDATED BALANCE SHEET DATA
                             (Unaudited)

                                            October 29,   October 30,
                                               2006          2005
                                           ------------- -------------
Assets                                       (Dollars in thousands)
 Current Assets
   Cash and cash equivalents,                   $38,481       $61,988
   Restricted cash - Note B                      30,713        26,131
   Short-term investments                         4,709         4,213
   Trade receivables, net -- Note C             390,799       399,677
   Inventories                                   28,735        33,758
   Deferred income taxes                          9,167        10,246
   Prepaid insurance and other assets            37,280        19,788
                                           ------------- -------------
 Total Current Assets                           539,884       555,801

 Property, plant and equipment, net              74,135        83,272
 Deposits and other assets                        2,247         2,102
 Goodwill - Note A                               50,896        32,623
 Other intangible assets, net - Note A           31,959        14,914
                                           ------------- -------------
 Total Assets                                  $699,121      $688,712
                                           ============= =============

Liabilities and Stockholders' Equity
 Current Liabilities
   Notes payable to bank                         $4,639        $6,622
   Current portion of long-term debt                470         2,404
   Accounts payable                             190,431       172,788
   Accrued wages and commissions                 59,387        55,081
   Accrued taxes other than income taxes         20,186        17,586
   Accrued insurance and other accruals          29,241        35,173
   Deferred income and other liabilities         37,519        30,628
   Income taxes payable                           3,626         1,686
                                           ------------- -------------
 Total Current Liabilities                      345,499       321,968

 Accrued insurance                                4,760         1,630
 Long-term debt                                  12,827        13,297
 Deferred income taxes                           10,787        13,358
 Minority interest -- Note A                          -        43,444

 Stockholders' Equity                           325,248       295,015
                                           ------------- -------------
 Total Liabilities and Stockholders' Equity    $699,121      $688,712
                                           ============= =============

                            (Notes Follow)





         VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES
           SUMMARY OF RESULTS OF OPERATIONS BY SEGMENT
                          (UNAUDITED)

A - In December 2005, Volt Delta Resources, LLC ("Volt Delta"), the
    principal business unit of the Computer Systems segment, purchased
    from Nortel Networks, Inc. ("Nortel Networks") its 24% minority
    interest in Volt Delta for $62.0 million, including an excess cash
    distribution of $5.4 million. Nortel Networks had originally
    purchased its 24% interest in August 2004, and under the terms of
    the original purchase agreement, each party had a one-year option
    to cause Nortel Networks to sell and Volt Delta to buy the
    minority interest for an amount ranging from $25.0 million to
    $70.0 million, exercisable starting August 2006.

    During the first fiscal quarter of 2006, Volt Delta also purchased
    Varetis Solutions GmbH ("Varetis Solutions") from varetis AG for
    $24.8 million. The acquisition provides Volt Delta the resources
    to focus on the evolving global market for directory information
    systems and services. Varetis Solutions adds technology in the
    area of wireless and wireline database management, directory
    assistance/inquiry automation and wireless handset information
    delivery to Volt Delta's significant technology portfolio.

    The preliminary allocation of the purchase price of the
    transactions resulted in $18.3 million of goodwill and $20.8
    million of intangible assets in fiscal 2006.

B - Under certain contracts with customers, the Company manages the
    customers' alternative staffing requirements, including
    transactions between the customer and other staffing vendors
    ("associate vendors"). When payments to associate vendors are
    subject to the receipt of the customers' payment to the Company,
    the arrangements are considered non-recourse against the Company
    and revenue, other than management fees to the Company, is
    excluded from sales. Cash restricted to cover such obligations is
    segregated from cash and cash equivalents on the October 29, 2006
    and October 30, 2005 balance sheets.

C - Under a securitization program, the receivables related to the
    staffing solutions business of the Company are sold from
    time-to-time by the Company, through a 100%-owned consolidated
    special purpose subsidiary to an unaffiliated third party. The
    outstanding balance of the participation interest sold was $110.0
    million and $100.0 million at October 29, 2006 and October 30,
    2005, respectively. Accordingly, the trade receivables included on
    the October 29, 2006 and October 30, 2005 balance sheets have been
    reduced to reflect the participation interest sold.

D - On December 19, 2006, the Company's Board of Directors authorized
    and approved a three-for-two stock split in the form of a dividend
    on the Company's common stock, par value $.10 per share. Shares of
    common stock will be paid on January 26, 2007, to all stockholders
    of record as of January 15, 2007.

    CONTACT: Volt Information Sciences, Inc.
             Jack Egan and Ron Kochman, 212-704-2400
             voltinvest@volt.com



The following information was filed by Volt Information Sciences, Inc. (VISI) on Tuesday, January 9, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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