Omega Mapping Services, Inc. Q2 FY2020 earnings call

• The second quarter of 2020 was unprecedented due to COVID-19's impact on the global economy.
• Volt's colleagues responded resiliently, with a focus on health and safety.
• Revenue declined 14.1% adjusted due to COVID-19, particularly affecting certain industries like nonessential manufacturing, automotive retailers, etc.
• Cost reduction efforts: Phase 1 (offshoring U.S.-based back-office functions, saving $6.6 million annualized), Phase 2 (additional savings), Phase 3 (temporary pay cuts, reduced director fees, hiring freeze, etc.).
• Recent trends show order volume, placement volume, and head count growth in the last 5 weeks, with some clients showing gradual recovery.

North American Staffing represented 84% of overall revenue during the second quarter, with revenue of $173.4 million and operating income of $2.6 million. Adjusted revenue decreased 14.9%. International Staffing had revenue of $24.3 million, representing 12% of total revenue, with operating income of $200,000. Adjusted revenue decreased by 13.2%. North American MSP was 5% of total revenue, with $9.7 million in revenue and operating income of $500,000. Adjusted revenue increased 50 basis points.

• No revenue guidance for the third quarter due to uncertainty in the recovery timeline.
• Anticipate improvement in Q4 and subsequent quarters as operational strategies are executed.

• Potential impacts of COVID-19 pandemic on business operations.
• Uncertainty around the recovery timeline and business reopenings globally.

Q: Can you quantify COVID-19-specific demand opportunities, nature of work, and if from existing or new clients?

A: It's a combination of existing and new clients. We supplied health and safety workers to existing clients and secured new wins with such roles.

Q: Any update on work-from-home statistics?

A: Statistics on field employees, professional/technical, and international working from home remain mostly accurate.

Q: Talk about bank facility covenant adjustments?

A: Adjusted tangible net worth covenant to $20 million for flexibility due to uncertainty, to allow plenty of room as future is unknown.

Q: Which industries were most impacted by COVID-19 and potential with COVID-19? Any financing plans?

A: Leisure/hospitality and retail/retail operations support were most impacted. No immediate plans for convertible bonds or additional financing currently. Expansion in nonclinical health care roles due to COVID-19-related opportunities.