Staffing 360 Solutions Inc. (NASDAQ: STAF), a staffing provider with operations in the US and UK, reported third-quarter revenue was down 27.7% year over year. The New York-based firm reported the decline was driven by the Covid-19 crisis.
However, Chairman and CEO Brendan Flood said the company is hopeful that its headcount will be back to pre-Covid levels by the end of the year.
“We are encouraged that we continue to achieve sequential week-over-week improvements in our overall business, even as the impact of the Covid-19 pandemic affects us all,” Flood said. “We are cautiously optimistic these improvements will continue through the end of the year and beyond.”
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Revenue | $48,640 | $67,320 | -27.7% |
| Gross profit | $8,323 | $12,485 | -33.3% |
| Gross margin | 17.1% | 18.5% | |
| Net loss/income | ($2,641) | ($1,108) | nm |
“While overall third quarter results were not where we’d like them to be, we saw improvements in key metrics from Q2 to Q3 including revenue, gross profit, net loss and adjusted EBITDA,” Flood said.
Staffing 360 reported steeper revenue declines in its US and UK professional staffing operations than in its US commercial staffing segment.
Revenue by segment
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Commercial staffing – US | $28,708 | $31,644 | -9.3% |
| Professional staffing – US | $5,188 | $9,387 | -44.7% |
| Professional staffing – UK | $14,744 | $26,289 | -43.9% |
Share price and market cap
Shares in Staffing 360 were down 7.76% to $1.07 as of 1:09 p.m. Eastern time; they were 282.14% above their 52-week low. The company had a market cap of $10.5 million.