Staffing 360 Solutions, Inc.(STAF), a leading global staffing services p rovider, has announced its financial results for the fiscal year ended December 31, 2022. The company reported a net loss of $16.9 million for the year, along with a significant increase in revenue, reaching $244.9 million. Despite the net loss, the company's revenue growth demonstrates its ability to capture market share and expand its operations.
The company's consolidated balance sheets highlight its financial position as of December 31, 2022, and January 1, 2022. The total assets for the year-end amounted to $81.7 million, showing a growth of $8 million compared to the previous year. Current assets, including cash, accounts receivable, and prepaid expenses, totaled $27.4 million, reflecting the company's liquidity and ability to cover short-term obligations. Additionally, the company's long-term assets, such as property and equipment, goodwill, and intangible assets, stood at $44.5 million.
Consolidated Statements of Operations
The consolidated statements of operations outline the company's financial performance for the fiscal years ended December 31, 2022, and January 1, 2022. The revenue for the year reached $244.9 million, showing a substantial increase compared to the previous year's revenue of $197.8 million. The growth in revenue can be attributed to the company's successful execution of its business strategy and its ability to meet the staffing needs of its clients.
However, the company reported a loss from operations of $13.5 million, representing an increase from the previous year's loss of $7.3 million. This increase in loss can be attributed to higher operating expenses, including selling, general, and administrative expenses, as well as impairment of goodwill. The company incurred $56.2 million in operating expenses during the year, compared to $41.2 million in the previous year.
Net (Loss) Income and Dividends
Staffing 360 Solutions reported a net loss of $16.9 million for the fiscal year 2022, compared to a net income of $8.2 million in the previous year. The loss can be attributed to various factors, including increased operating expenses and other expenses, such as interest expense and amortization of debt discount.
The company also declared dividends on its preferred stock, with dividends paid to related parties. Dividends of various series of preferred stock, including Series E and Series G, amounted to $0.8 million.
Comprehensive (Loss) Income and Stockholders' Equity
The consolidated statements of comprehensive (loss) income reveal a comprehensive loss of $19.4 million for the fiscal year 2022, compared to comprehensive income of $8.1 million in the previous year. The loss includes the net loss of $16.9 million and a foreign exchange translation loss of $2.4 million.
The consolidated statements of changes in stockholders' (deficit) equity show the changes in the company's equity during the fiscal year. The total stockholders' equity decreased to $8.4 million, reflecting the impact of the net loss incurred during the year.
Consolidated Statements of Cash Flows
The consolidated statements of cash flows summarize the company's cash inflows and outflows for the fiscal year 2022. The net cash used in operating activities amounted to $9.8 million, primarily influenced by the net loss and changes in operating assets and liabilities. The company invested $8.7 million in purchasing property and equipment and acquiring a business, while it received $8.7 million from the collection of UK factoring facility deferred purchase price.
In terms of financing activities, the company incurred financing costs, repaid term loans, and made dividend payments to related parties. The company also raised funds through the sale of common stock and warrants, resulting in a net cash outflow of $1.4 million from financing activities.
Overall, Staffing 360 Solutions faced challenges in the fiscal year 2022, resulting in a net loss. However, the company achieved significant revenue growth, demonstrating its ability to capitalize on market opportunities and maintain a strong position in the staffing services industry. The company continues to focus on strategic initiatives and operational improvements to enhance its financial performance in the future.