Summary by Moomoo AI
Staffing 360 Solutions reported revenue of $190.9 million for fiscal 2023, up 3.2% from $184.9 million in 2022, driven by the Headway acquisition which contributed $23.5 million. However, gross profit declined 12.9% to $28.5 million as gross margin contracted to 14.9% from 17.7%, primarily due to lower-margin EOR business mix.Operating expenses increased 21% to $40.1 million due to Headway integration costs and restructuring charges. The company recorded a net loss of $26.0 million compared to a $17.0 million loss in 2022, impacted by a $9.0 million charge from discontinued UK operations which were divested in February 2024. Interest expenses rose to $5.5 million from $3.7 million due to higher rates.The company faces liquidity challenges with a working capital deficit of $45.4 million and total debt of $19.1 million as of December 30, 2023. Management is reviewing strategic options including debt restructuring and additional capital raises while focusing on the domestic US staffing business following the UK divestiture. The company must address near-term debt maturities including Jackson Notes due October 2024.
