Executive Summary

Q4 FY21 delivered continued top-line growth and margin expansion: revenue $227.8M (+7.9% YoY), gross margin 16.8% (+60 bps YoY), and diluted EPS $0.06 vs. $(0.58) prior-year; Adjusted EBITDA rose to $6.2M (+$0.3M YoY) .
Sequentially, revenue improved vs. Q3 ($217.5M) and remained above Q2 ($222.1M), while profitability held with operating income of $2.3M (vs. $1.6M in Q3) as SG&A increased on incentives and higher labor/medical costs .
Segment drivers: North American Staffing (+6.9% YoY to $190.9M) on wins and client expansion; International Staffing (+16% YoY adjusted) on France/Belgium client expansion and stronger direct hire in the U.K./Singapore; MSP payroll services continued to grow .
No formal quantitative guidance was provided; management reiterated confidence in further full-year profitability improvement in FY22, citing technology investments and execution on strategic initiatives as key enablers .

What Went Well and What Went Wrong

What Went Well

Sustained growth and mix improvement: “Achieving year-over-year revenue growth each quarter and for the full year, combined with expanding our gross margin and reducing SG&A expense, we reported meaningful increases in both net income and Adjusted EBITDA” — CEO Linda Perneau .
Margin expansion: Q4 gross margin increased to 16.8% (+60 bps YoY), driven by improved margins and higher direct hire revenue in North American and International Staffing .
Segment breadth: International adjusted revenue growth (+13.9% YoY) and North American Staffing wins with retail and mid-market clients; MSP payroll services demand supportive .

What Went Wrong

Cost headwinds: Q4 SG&A rose $4.0M YoY to $34.7M (15.2% of revenue), primarily from incentives on higher sales, plus higher labor and medical expenses .
Macro disruptions: “Although we continue to experience COVID-related business disruptions…” — CEO, underscoring persistent external headwinds impacting operations and client demand variability .
Interest and other expense remain a drag: Q4 included net interest expense of $0.4M and other expense of $0.15M, tempering operating gains at the pre-tax line .

Financial Results

Summary P&L (USD Millions, except per-share; periods oldest → newest)

Metric	Q4 2020	Q2 2021	Q3 2021	Q4 2021
Revenue ($M)	$211.1	$222.1	$217.5	$227.8
Gross Margin %	16.2% (implied +60 bps to 16.8%)	16.4%	16.6%	16.8%
Operating Income ($M)	$(11.5)	$2.7	$1.6	$2.3
Net Income ($M)	$(12.5)	$1.9	$0.6	$1.3
Diluted EPS ($)	$(0.58)	$0.08	$0.03	$0.06
Adjusted EBITDA ($M)	$5.9	$6.0	$4.7	$6.2

Notes: Gross margin YoY improvement for Q4 2021 is explicitly +60 bps to 16.8%; prior-year level implied at ~16.2% .

Segment Revenue (USD Millions)

Segment	Q2 2021	Q3 2021	Q4 2021
North American Staffing	$184.3	$179.4	$190.9
International Staffing	$27.9	$28.3	$26.8
North American MSP	$9.8	$9.8	$10.0

KPIs and Operating Metrics

KPI	Q2 2021	Q3 2021	Q4 2021
SG&A ($M)	$33.0	$34.0	$34.7
SG&A (% of Revenue)	—	15.6%	15.2%
Gross Profit ($M)	$36.5	$36.2	$38.2
Work Days	65	63	64
Cash & Equivalents (Period End, $M)	$47.2	$49.6	$71.4
Total Debt (Period End, $M)	$59.2	$59.2	$59.3

Non-GAAP: Adjusted EPS $0.12 (Q2), $0.05 (Q3), $0.11 (Q4); see reconciliation tables .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability (overall)	FY 2022	None	Management “remain[s] confident that we will continue to see an improvement in full-year profitability in fiscal 2022.”	Directional positive
Revenue/Margins/OpEx/Tax/Segments/Dividend	FY 2022	None	No formal quantitative guidance disclosed in Q4 release	N/A

Earnings Call Themes & Trends

Note: We did not locate the transcript in the document repository; a public transcript is available on MarketScreener (link below). The themes below reflect management commentary from press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
COVID/macro & labor market	Q2: weather-related impacts; first positive GAAP net income in 14 quarters; remained on growth trajectory . Q3: lingering COVID-related labor and supply chain challenges; momentum continued .	“Continue to experience COVID‑related business disruptions,” yet executing with agility to demand ebbs/flows .	Persistent headwind; execution offsetting
Technology & operating model	Q2: improved sales/delivery model; disciplined cost mgmt . Q3: efficacy of strategic initiatives .	Technology implementations over last two years underpin forward footing .	Structural improvements compounding
Mix/direct hire	Q2: increased direct hire in U.K.; margin uplift . Q3: improved margins in NA and International .	Higher direct hire contributed to margin expansion; U.K./Singapore direct hire growth cited .	Positive mix tailwind
Regional trends	Q2: U.K./France growth . Q3: U.K./France strength .	International growth from France/Belgium; U.K./Singapore direct hire .	Broad-based international execution
MSP & payroll services	Q2: increased payroll service demand . Q3: continued payroll demand .	MSP revenue up; payroll demand supportive .	Stable to improving

Earnings call transcript reference: https://de.marketscreener.com/kurs/aktie/VOLT-INFORMATION-SCIENCES-65289571/news/Transcript-Volt-Information-Sciences-Inc-Q4-2021-Earnings-Call-Jan-12-2022-37751402/

Management Commentary

“Achieving year-over-year revenue growth each quarter and for the full year, combined with expanding our gross margin and reducing SG&A expense, we reported meaningful increases in both net income and Adjusted EBITDA.” — Linda Perneau, President & CEO .
“Although we continue to experience COVID-related business disruptions, I applaud every Volt colleague… The work we have done over the last two years, including the implementation of new technologies, has provided us with a strong footing going forward.” .
Q3 tone: “Despite lingering Covid-related labor and supply chain challenges, we continued our momentum with broad-based improvements… narrowing the gap to third quarter 2019 levels.” .
Q2 tone: “Strongest year-over-year revenue growth in a decade, and our first positive GAAP net income in 14 quarters.” .

Q&A Highlights

The full Q4 earnings call transcript was not available in our document repository; a public transcript exists here: https://de.marketscreener.com/kurs/aktie/VOLT-INFORMATION-SCIENCES-65289571/news/Transcript-Volt-Information-Sciences-Inc-Q4-2021-Earnings-Call-Jan-12-2022-37751402/. As such, Q&A themes and any guidance clarifications from the live call cannot be verified and are not included above.

Estimates Context

S&P Global (Capital IQ) Wall Street consensus estimates for VOLT’s Q4 FY21 were unavailable in our system at the time of this analysis; therefore, we do not present vs-consensus comparisons. The press release did not reference external consensus or provide formal quantitative guidance .

Key Takeaways for Investors

Momentum intact: Q4 capped a year of YoY growth each quarter with sequential revenue improvement and margin expansion; ongoing mix tailwinds (direct hire) and pricing/margin discipline are evident .
Profitability improving: Operating income turned positive vs. prior-year loss; Adjusted EBITDA remained healthy; management expects further full-year profitability improvement in FY22, suggesting continued operating leverage potential .
Segment resilience: North American Staffing and MSP payroll demand continue to support growth; International benefits from client expansion in Europe and direct hire in the U.K./Singapore .
Watch costs: SG&A increased YoY on incentives and labor/medical expense; sustaining margin gains will require continued cost control as volumes rise .
Macro sensitivity: COVID-related disruptions and labor/supply constraints persist; execution agility has mitigated impacts, but volatility in client demand remains a risk factor .
Near-term setup: With no formal guidance, near-term catalysts include continued gross margin expansion (mix/pricing) and evidence of SG&A discipline; sustained sequential growth could drive multiple support.
Medium-term thesis: Technology-enabled delivery, client diversification, and mix shift toward higher-margin direct hire and MSP services underpin a path to steadier profitability through cycles .

Sources: Q4 FY21 8-K earnings press release and financial tables ; Q3 FY21 8-K press release and financial tables ; Q2 FY21 8-K press release and financial tables ; Public transcript link (MarketScreener) .

VOLT INFORMATION SCIENCES, INC. (VOLT)·Q4 2021 Earnings Summary