Staffing 360 Solutions Inc (NASDAQ: STAF) forecasts to post a growth of 20% YoY in Q2 2021 revenues.
It is based on the significant improvement in all its three businesses for 11 weeks. The company also expects to report 20% YoY growth in Q2 2021 profits.
Staffing 360 would report revenues of over $52 million in Q2 2021. As a result, it eliminated the loss of $1.5 million posted in Q2 2020.
Its operating profit is $457,000. The company improved its revenues significantly in Q2 2021 through cost-cutting measures adopted during the coronavirus pandemic.
It achieved savings of $0.8 million YoY in Q2 2021.
Staffing 360 raised capital in February 2021, December 2020, and April 2021 and lowered its interest burden on its income statement.
Expects to improve income
The company significantly reduced interest charges to $1.2 million in Q1 2021 compared to $2.4 million in Q1 2020. It also expects to lower interest charges to less than $1.1 million in Q2 2021 versus $2.1 million in Q2 2020.
As a result, Staffing 360 forecasts to report positive net income in Q2 2021.
Staffing 360 is pleased to receive a notification regarding the complete forgiveness of the $10 million loans granted to its indirect subsidiary – Monroe Staffing Services, LLC, from the SBA (Small Business Administration).
Staffing 360 filed for the forgiveness of an additional PPP loan of $9.4 million. It is optimistic about receiving forgiveness for this loan amount too from the SBA.
CEO of Staffing 360, Brendan Flood, is excited to report prospective business opportunities that improve ROI and revenues in the future.
He said each business segment is recovering from the blues of the coronavirus pandemic. Internal communication, cost savings measures implemented in 2020, and solid financial management and control are helping the company to stage a smart recovery.
PPP loan forgiveness is essential for the company to emerge from the difficulties brought in by the coronavirus pandemic. As a result, the company achieved significant progress in strengthening its balance sheet in the past year.
The forgiveness of a $10 million PPP loan helped the company reduce 55% cumulative debt in the past 12 months.
Brendan is thrilled with the business momentum in the US and UK economies’ progress. The company signed over 70 client contracts in its Commercial Staffing business.