Full Year 2020 Volt Information Sciences Inc Earnings Call
[music].
The session will follow the formal presentation, if anyone should require operator assistance for the conference. Please press star zero on your telephone keypad. As a reminder of this conference is being reported I would now let's turn the conference over to Joe noise with Investor Relations.
Thank you Omar and good afternoon, everyone. Thank.
Thank you for joining us today for both the information Sciences fourth quarter and fiscal 2020 earnings conference call on the call today, our lender per no president and Chief Executive Officer, and her Mueller Senior Vice President and Chief Financial Officer. After the market closed the Doctor in the company issued a press release announcing the results for the fourth quarter and fiscal year 2020 the relief.
So the available on the company's website at both dotcom as well as the egress you see website filed the form 8-K.
We have also prepared a presentation this quarter, which is available on the Investor Relations section of the company's website. We believe this provides additional detail for a better understanding of our results for the current reporting period and longer term.
Before beginning today's prepared remarks, I would like to remind you that some of the statements made will be for looking at are made under the private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those projected or implied due to a variety of factors, including but not limited to potential impacts of COVID-19 pandemic on our business operations.
We refer you to volt information Sciences recent filings with the Sep for a more detailed discussion of the risks that could impact the company's future operating results the budget.
Financial condition.
Also on today's call management will reference non-GAAP.
Financial measures, which we believe provide useful information for investors a reconciliation of those measures to GAAP measures. The included in the earnings press release issued this afternoon with the.
I would like to turn the call over to both the president and CEO Linda per know Linda.
Thank you Joe well.
Welcome to the book fourth quarter and full year fiscal 2020 earnings call.
Before we begin let me take a minute and wish each of you on the call a very happy new year.
Oh, those things may have been a bit different this past year. We hope you were able to enjoy a happy and healthy holiday season.
Today I will open the call the commentary on our full year 2020 result.
Typically highlights the Barker for me throughout the past that net.
The impact of our strategic initiatives, we have focused on for the last 18 to 24 months and.
And the resulting trends realized underline our optimism for 2021.
Current will then provide for more detailed overview of our financial performance.
I will then conclude with the additional commentary on trends, we're seeing in the early stages of fiscal 2021.
Typically the month of November and December and how we plan to achieve growth and profitability throughout the remainder of the year.
I believe it is safe to say that the COVID-19 pandemic in 2020 is the most pro long and widespread disruption our organization has faith in it 70 year history.
The pandemic threats profoundly impacted economies businesses education employees and undoubtedly each of our own personal life.
We have seen industry, that's its retail hospitality and aerospace previously quite resilient shopper potentially irreparable harm as the result of cause of 19.
At the same time, new opportunities utilizing emerging skills have arisen out of the need to insure employee wellness and safety and the determination of essential did the to remain operational.
The these skills in the area of health care monitoring of screening logistics, and even food manufacturing and distribution has provided new job opportunities for displayed an unemployed talent.
And it's where we realized significant growth in the latter half of 2020 as the economy continued to slow the rebound.
While we have not seen a repeat of widespread shutdown and shelter at home orders. We have continued to experience more targeted and localized restriction based on specific country and of course, they need do jacoby outbreak.
In the most recent U.S. staffing industry for cash published in September 2020.
The U.S. staffing industry was projected to decline 17% in overall revenue.
And the direct placement search what is projected to decline, 33% due to the coke of 19 health crisis and related disruption.
I am proud of the termination and resilient demonstrate like every book colleagues across the globe, allowing us to perform much better in the school 2020, then the above referenced industry revenue for cash.
Through solid execution of our strategic initiatives, despite profound headwinds, including roughly 90 to 105 million in coping related revenue in the.
We made substantial improvement in many critical areas of the business.
Let me share some of the highlights.
Total adjusted revenue for the full year decline 13.4%.
Fourth quarter of declined 11%.
In October the last month of the floor quarter declined 8.4%, all when compared to prior year.
Overall, we saw sequential improvement in the rate of decline with the most notable momentum coming from our North American staffing segment.
This segment, specifically delivered month over month improvement from the low point in May.
At the down 25.3%.
Ending October at a minus six week one per cent.
And in the last two weeks of October North American staffing segment closed the gap to a 2% decline.
We have continued to see strong momentum and performance from this segment and November in December, which we will address in more detail a bit later.
Operating with approximately 15% you are in turn of poly and largely in the work from home model revenue from new business wins in the U.S. increased 33% for full year 2020 compared to full year 2019.
Despite of roughly three months period between April and June where there was limited to no buying activity and the lingering shutdown for across the country. Our teams executed on our aggressive and focused sales strategy, resulting in new logo wins as well as several expansion opportunities with the existing CLO.
Yes.
The retail branch strategy continues to gain momentum and remain resilient throughout the pandemic, resulting in revenue being flat to prior year.
Completing our second year, we now have the every location across the U.S. executing the retail model for this segment accounts for nearly 20% of our overall revenue in North America.
This represents more than a 300 basis point increase from the prior year quarter out of more than 200 basis point increase for the full year.
With the margin 500 basis points higher than our overall gross margin.
We leverage technology in ways, we had not been previously including the introduction of the chat thought for a group of specific client.
Over an 18 week period, the use of this chat bots produced a 263% increase in the number of candidates screen for open job opportunities when compared to one manual approach.
And it also reduced time to fill by 30 to 81 per cent depending on the client.
This technology gives us the ability to chat with the candidate and customized question and determine whether they will advance in the process all the core of work for it or engages the.
This freed up over 800 hours of recruiter time significantly reducing time spent on non qualified candidates and ultimately providing bandwidth for them to place the screen candidate and generate margin dollars.
Team time, the actual investment.
Overall gross margin came in 30 basis points higher than 2019, despite significant pricing pressure the.
The teams continue the disciplined pricing strategy I mean when from.
By the with the strong retail performance, allowing us to offset any short term reduction implemented for select line during peaks of pandemic.
We swiftly executed aggressive cost savings the reduction, including the successful transition of over 130 back office will the Ark turn our Bangalore, India operation.
Overall, adjusted operating income, excluding restructuring and impairment improved every quarter with fourth quarter, delivering a positive oh like of 3.5 million.
Every business unit with profitable each quarter and for the full year.
And we generated back the back quarters of positive adjusted EBITDA, allowing us to finish the essentially breakeven for the year.
These results would not be possible without the circumstances of transformation that has occurred over the last 24 months and.
And of course without the steadfast dedication from our talented colleagues around the globe.
I would like to thank them for their willingness to adapt and their unwavering commitment to volt throughout a very challenging year.
We have shifted our focus the over as we continue our path to growth and profitability in the school 2021.
We are encouraged by the trends we are seeing early in the first quarter all of which I will discuss the my wrap up.
Let me now from the calls over the her to give a more detailed overview of our results her.
Thank you Linda per day.
This call we've prepared a presentation, which is available on the IR section of our web site. We believe this provides additional detail for a better understanding of our results for the current reporting period of longer term items.
The in addition, I'll be switching the order and will discuss the full year results for Balibar Q4 results. We believe it's important to speak to the progress we have made since the onset of Cobiz Nike and the momentum we have seen in the last six months from sparing the full effect of Covidien day.
As a reminder, fiscal year 2019 had 53 weeks compared to 52 weeks from fiscal 2020. The extra week is equivalent of approximately 80.9 million in total revenue.
The GAAP numbers I'll be providing will include the 50 Threerd week, all adjusted numbers will exclude the 50 Threerd week of revenue as well as business is actually did or transitioning from one of the operating segment true or not.
Largest impact is the normalizing in the weeks and clearly provides the most accurate apples to apples for you.
On a GAAP basis, including the 50 Threerd week in airport in 19 revenue for EPS why 20, what's the 822.1 million compared to 997.1 million a 17.6% reduction.
Overall company adjusted revenue was down 13.4% for 127.6 million.
Primarily due to the estimated 90 to 105 million kobin related revenue impact.
You may recall that in Q1 2020, we began to see promising revenue trends for the latter part of the January and February.
However, as the pandemic escalated revenues across the organization were impacted beginning in early March and reaching the lowest point in Mary.
Through a combination of the central services clients continuing to operate at varying levels of other customers returning to work expanding business with existing clients from winning new customers. We started to see revenue rebounded in the latter part of May.
Our recovery is being predominantly led by our North American staffing segment, which showed consecutive month over month the improvement in adjusted the average daily revenue when compared to the prior year from true forward.
Looking at Slide 20, adjusted revenue, our North American staffing segment reported 689.1 million of adjusted revenue down 13.9% for the year ago International came the segment came in at 95.3 million down 15.1 per cent for many years ago.
Our North American MSP segment was down 1.4%.
North American staffing has seen significant sequential improvement since may.
Since that time the segment has continued to add new logos and increased revenue for clients.
Our international staffing segment continued to see headwinds due to a difficult environment, primarily in the UK. The combination of cold in Brexit has created a challenging environment for regaining revenue lost earlier in the year we.
We're starting to see signs that is easing the challenges remain.
Our North American MSP segment was flat for the full year. However, the segment saw larger declines from Q3 and Q4 due to longer lastly impacts from the total but 19 pandemic, while we expect to see this business returned to growth, we anticipate the recovery to be recovery to be a gradual return to the pre pandemic levels throughout 2012.
One.
Slower pandemic recovery from several customers coupled with the long cycle time of six months to a year on new business will result in a gradual return.
Throughout the year.
Gross margin for the year was 15.6 per cent compared to 15.3% in the prior year, excluding a business ex was in the prior year and the addition of wheat in 2019 gross margin increased 20 basis points gross margin was up for both North American staffing segment, the international staffing segment.
Our North American staffing segment margin increase was primarily due to more favorable workers compensation adjustments lower payroll tax expense as a percentage of direct labor and the mix of higher margin business, resulting from our sales and pricing initiatives.
Our international staffing segment gross margin increased due to a revenue decline to the UK offset by increases in Belgium in Singapore, partially offsetting these increases our north American MSP decreased 510, bips due to higher percentage of payroll service during the year.
It is important to note that all three segments continue to contribute positive operating income despite the substantial the impact of Cowen.
With North American staffing generating 14 point, Threemillion International 1.4 million and MSP 3.1 million.
Yes, the in a sense for fiscal 2020 was 137.7 million compared to 157.1 million in fiscal 2019.
Adjusted EPS DNA declined 16.2 million or 10.5%. The decrease was primarily due to the strategic cost reduction.
The impairment costs increased 16.2 million in fiscal 2020, primarily due to 14 of the half million dollars of charges related to the partial impairment of our Orange, California headquarters. The headquarters consist of for buildings totaling approximately 200000 square feet.
We've been subleasing one of the buildings for 10 years from an additional five years remaining on that agreement.
We have now be cheated the two additional buildings and have consolidated into one building approximately 50000 square feet.
We just over 10 years remaining on of the lease we are actively pursuing multiple options for the two vacant buildings as well as the overall campus.
We will continue to evaluate our real estate footprint in order to continue to lower the lower our costs as I've stated before were not exiting markets. We continue to successfully support and expand in some markets without having the actual brick and mortar locations.
Restructuring and severance costs decreased $2 million in fiscal 2012, primarily due to 2.1 million of restructuring and severance costs incurred with the exit from our customer care solutions business from fiscal 2018.
For fiscal 2020, we reported a GAAP net loss of 33.6 million or $1.56 per share compared to the GAAP net loss of 15.2 million or 72 cents per share in fiscal 2000 like see.
The loss during fiscal 2020 included 19.6 million for 91 cents per share of the impairment and restructuring costs related to the ongoing cost reduction efforts throughout the company.
Adjusted EBITDA upward fiscal 2020 was near breakeven net negative 98000 compared to a positive $1 million in the prior year, which included <unk> point Sevenmillion in additional income from the extra weeks of fiscal 29th Street.
GAAP revenue was 211.1 million in the fourth quarter of fiscal 2020 the.
Adjusted revenue decreased $26.1 million or 11% year over year as a reminder, the fourth quarter fiscal 2019 included an additional week, we estimate the revenue decline associated to the impact of Cobot night seem to be approximately 35 million for the fourth quarter compared to approximately.
45 million last quarter nearly.
Nearly all of the profit impact was in our North American staffing segment.
On a sequential basis adjusted revenue decline improved from 18.4% in the third quarter to 11% in the fourth quarter similar to the third quarter adjusted revenues improved sequentially throughout the fourth quarter of 2020 with all of this down 14.8% September 10 point.
6% that October 8.4%.
During Q4 2020, our direct hire lines of business continue to show improvement from the impact of cobot.
For the quarter, we were down 27% from the prior year quarter. However were up 23% sequentially from Q3 2020 the.
Remember direct hire revenue was down 18% from last year, continuing the positive trend and.
And the same results continue to show improvement.
Our North American staffing segment, which represents 85% of revenue in the fourth quarter is the primary driver for overall revenue recovery with August down, 14.2% September down, 9% and October only showing of 6.1% decline for the segment.
We continue to have this favorable trend with November down only 1.3%.
In December up year over year.
Operating income in the fourth quarter of fiscal 2020 was 9 million.
International staffing segment reported revenue of 23 million, which represented 11% of total revenue in the fourth quarter and operating income of <unk> point Threemillion.
Adjusted revenue decreased by 22% year over year, primarily due to of 47% decline in contractor head count of the UK.
The United Kingdom of economy has been heavily impacted by coated which has slowed our recovery. We anticipate continued challenges in the short term.
Offsetting the challenges in the UK was our performance from BCG Europe, primarily due to an increase in reefer business previously included in UK staffing.
At 4% of total revenue North American MSP revenue was 9.4 million for the operating income of 8.9 million of.
The adjusted revenue decreased 13.6% during the fourth quarter. The decrease is primarily attributable to the impact of COVID-19 head count reductions, partially offset by expansion with existing clients of the incremental revenue associated with certain clients shifting into the segment.
Gross margin for the fourth quarter was 16.2 per cent compared to 16.6% in the year ago quarter. The.
The decline in gross margin was primarily due to the North American MSP, lower managed margins and onetime favorable adjustments for the prior period.
During the extremely competitive environment, we're pleased that we've been able to hold margins and we expect this to continue until we get past the current cobot environment we.
We do however expect gross margins in the first quarter to drop sequentially. Following historical trends as we expect the experience higher holiday pay and the reset of payroll taxes in January.
Yes, you net expense for the fourth quarter was $30.7 million compared to $39.9 million in the fourth quarter of fiscal 2000 by to the.
Adjusted EPS, DNA declined $6.5 million or 17.5%.
The decrease was primarily due to the strategic cost reductions COVID-19 restrictions on travel and working remotely, including 4 million in labor and related costs due to lower headcount and a 1.3 million dollar decline of non capitalized cheap professionals the points.
Point, Sixmillion and lower facility costs and point $5 million decrease of travel expense. In addition, other professional fees declined by 2.8 million.
These decreases were partially offset by a $486000 increase in expenses due to the elimination of the deferred real estate gain offset under the new lease accounting rules.
Impairment costs increased 14.3 million in the fourth quarter of fiscal 2020, primarily due to a $14.5 million of charges related to the partial impairment of the Orange, California facility I discussed earlier.
Restructuring and severance costs decreased 1.4 million in the fourth quarter fiscal 2020 the.
The prior year quarter included charges related to the change of executive management.
Operating income for the quarter was a negative 11.5 billion ex.
Excluding impairment and restructuring however, although I would have been a positive of 3.5 million driven by the items mentioned above.
Adjusted net operating income for North American staffing segment was 9 million compared to $6.4 million a year ago share.
For continued the positive sequential trend for the remainder for the year. As a reminder, Q1 was point 1 million Q2 2.6 million in Q3 was 2.7 million.
For the fourth quarter of fiscal 2020, we reported the GAAP net loss of 12.5 million or 58 cents per share compared to a GAAP net loss of <unk> point sevenmillion or for sense in the fourth quarter of fiscal 2019.
The loss during the fourth quarter 2020 included 15 million or 69 cents per share of impairment and restructuring costs related to the ongoing cost reduction efforts throughout the company, excluding the impairment and restructuring costs earnings per share would of been 11 cents.
Adjusted EBITDA for the fourth quarter was 5.9 million, a 1.1 million dollar improvement from the prior year quarter, and a 4.9 million improvement sequentially. The.
This is the second quarter in a row, where we've achieved sequential improvement.
Moving onto a few key items from cash flow and the balance sheet at.
At the end of fiscal 2020, we had 38.6 million in cash and equivalents, an additional 20.7 million in restricted cash and short term investments for an increase of 17.8 million combined from the prior year and $4.1 million increase from the prior quarter. Our long term debt remained the same as last.
Quarter at 60 million and total available liquidity increased from $16.2 million in July the 24 million in October as the result of the deferred payroll tax payments under the cares Act.
As a reminder, through the passage of the Cures Act legislation in March we were able to defer the payment of the sort of security portion of our calendar 2020 payroll taxes as a result $26.2 million of employer play payroll taxes were for with 50% due by December 31 2021.
And the remaining 50% by December 31, 2002 into this action provides greater financial flexibility for both over the next 12 to 24 months, we anticipate paying this from cash flows generated from the business in the upcoming years.
We generated $5.1 million in cash flow from operations in the fourth quarter of fiscal 2020 with capital expenditures of 1.3 million.
In December we extended our credit facility with DZ Bank through January 2020 for in addition, we reduced restrictions on availability of aer for certain customer as well as minor adjustments on the covenants.
Now I'd like to take a minute and update you on our cost saving efforts throughout the year.
Using for 19 as a baseline adjusted for onetime changes, we had an F Y 20 trend towards a $159.4 million index your day.
During the F.Y. tuning, we furloughed employees reduced compensation cut back on outside services, resulting in a one time savings of 4.7 million during the year, which will not carryover into apply 21.
We also made permanent reductions of head count professional fees and real estate that reduced 18.2 million and Thats why 20 will gain an additional benefit of $11.6 million in EPS why 21.
Totaling a $29.8 million reduction from F. White Knight team.
Looking towards the first quarter were closing the gap on year over year decline.
Adjusted revenue for November was down 3.3 per said, Andy similar revenue was up.
We expect gross margin percent would be down slightly from last year's results of lower direct hire revenue the trend should be consistent with EPS why 20 with gross margin percent increasing throughout the year as the result of lower payroll taxes SNA should be in the $34 million to $35 million range. The sequential increase from Q4.
For as a majority of our year end the audit expense occurs in the first quarter. So this still represents the substantial reduction from the prior year. This.
This coupled with our favorable revenue trends creates a significant opportunity for us to achieve an operating income of EBITDA per bed over the prior year quarter.
I will now turn the call back over the Linda.
Thank you herb.
As we look for fiscal 2020 as a whole we believe there is the path to positive revenue growth and significantly improved adjusted EBITDA for the full year.
The passage of this of growing revenue through a combination of continued expansion opportunities within existing clients as well of winning the logo in.
Improving our gross margin interest focused efforts on higher margin business ex.
Countability and execution on direct hire day.
Driving efficiency and effectiveness in all processes and maintaining pricing discipline as appropriate.
And finally, we will continue our aggressive cost discipline investing to fuel growth expansion of delivery support where necessary simultaneously identifying additional strategic reduction that can be achieved without impacting the ability to meet client demand.
As Terry mentioned early trends for us.
As we are seeing continued momentum most notably within our North American staffing segment.
This segment, specifically finished November down approximately 1.3% from a year ago and preliminary results for December show positive topline growth on a year over year basis.
In order to not only maintain but also accelerate the existing momentum across all business units, we will be continuing strategic investments focusing on specialty designed for optimum scope and success and expanding the use of technology to capitalize as markets continue to rebound.
Given the success of the chat bots technology, we will be expanding the usage of the tool to a broader base of clients before the end of fiscal Q1 2021.
We anticipate once implementation and adoption are complete we will realize an additional uplift in connecting more field employees with our impressive existing client portfolio and those new clients, we will add throughout the year.
Expansion of our retail branches generating higher margin business will continue immediately with additional investments in the last handful of markets with ongoing market add it in stock linked quarters.
In order to capitalize on larger sales opportunities, we will be expanding our national sales team and you.
Focused on industries with the most robust need in geography that will prevail at attracting placing and retaining the old employee.
Having recently completed the build out of the sales team for MSP, we are focusing on restructuring and realigning resources in our international MSP team to maximize the existing client expansion in addition to securing new opportunity.
We have strategically selected three specialty as key areas of focus in the UK.
Gee engineering.
Engineering and life Sciences, due to the robots need and our existing ability to provide quality talent in these areas.
This provides the more disciplined expert of probes, resulting in targeted sales activity and more rapid placement.
Overall, we believe the successful execution across these areas will lead to full year top line growth.
The positive adjusted EBITDA in the school 2021.
We acknowledge that the complete turnaround has not happened as quickly as any of us would have preferred.
There is no denying however, since introducing our current operating strategy two years ago, we have made substantial progress in many critical areas of the business, including our financial performance.
The pandemic and resulting business impact didn't bring up to our need for rather it demonstrated our resilience determination and dedication to our value clients.
Field employees and each other.
The efforts and progress our teams across the globe has made in the face of multiple challenges have set the stage for us to achieve to achieve an adjusted EBITDA margin of 3% in three years.
We remain steadfast in our commitment to deliver both topline growth and sustained profitability and ultimately increasing share holder value.
We would like to thank our value long term shareholders for your continued support and.
And our more recent investors, who have recognized the progress being made and the substantial upside potential that exists.
I'd also like to thank our clients our field employees working at our clients on behalf of both our board of directors and of course, our Holly.
Although the lingering disruption continues we believe the worst of the pandemic is behind and together, we will emerge as the stronger organization.
I will now open the call for questions operator.
At this time, we'll be conducting the question and answer session. If you'd like to ask the question. Please press star one on your telephone keypad. The confirmation total indicate your line of from the question queue. You May press star to for you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star case, one moment, please while we poll for.
Questions. Thank you.
And our first question comes from Josh Vogel with Sidoti and company.
Thank you good evening lens, and herb and happy new year.
Thank you.
Thank you I guess my first question when we look at the adjusted revenue declined for the call 20 down 13%.
During its too much into the weeds for maybe if.
Please get a little bit more share with like how much of the existing base out and then quantify the expansion in the other exist for the new business when helped to offset that.
You broke up on the just a little bit.
In there, but they soon if I picked it up right you don't the expansion of new business versus the.
The recovery impacting the and again, we've had substantial amount of gains on the new logos that we bid and we've gotten we've gained the good bit of of new business that has really offset the.
Partially offset some of the losses that we've had.
So thats continuing you know year over year were up you know as Linda mentioned the.
On the amount of new business. So that's been significant is as well.
All right great and.
When the you were talking about some of the opportunities that the result of the need for employee wellness the.
Quantify how much revenue is coming from or for opportunity. The you see from and we think about monitoring and screening logistics.
You mentioned food manufacturing distribution I'm, just curious what piece of the price coming from those opportunities today.
Yeah, I mean, what I can tell you Josh is that.
A very small percentage.
Of the new business has come from.
The what we'll call sort of related to co bid.
Opportunities for the majority of the new business is coming from.
The focus on those areas of our expanding like food and distribution and.
Adjusted so in a lot of those areas.
He has been expanding.
A lot of them have robust need those are areas that we have.
Really capitalize on and and represents the largest percentage of our new business.
Alright, great and.
Impressive with the success using a chat spot.
And I know that you plan to further roll that out are there any other technologies the digitally enabled technologies that you're exploring to silver.
Facilitate onboarding and deployment.
Oh, Yeah, there's multiple right. So we're constantly looking at what's the latest and greatest out there in the market what is it that.
Specifically help our clients.
The advantageous for our clients make the lives of our field employees easier for the life of the bar.
Of our branch team the easier. So we are we consistently are looking at the multiple tool.
We have generally opted to take an approach of piloting them.
In the small.
It would be in certain geographies or the specific client.
That gives us the agility and flexibility to kind of perfect. It and make sure that it's the right tool for us and we'll continue to make investments in that area.
As we move through the year.
All right.
Shifting gears if I can.
From about moving the jobs to India I think you said there was 130.
Backoffice positions in.
Can you, maybe quantify or discuss the cost benefits and sustainability of having those functions overseas and then.
Is this the are you done there or is there more opportunity.
Yes, a couple of things Josh we.
Moving those jobs saves us about $6.8 million annually. So we had about half of that benefit and for 20.
Yeah, we really completed that.
Moving in the May June time period, So we saw us.
Clearly Q3 and Q4.
Some of the benefit there.
Were.
Continuing to look at opportunities of someone leaves the organization.
Can we put that position in India or do we need to have the new assets, we look at on the T. spike the spaces.
But at the same time, you know always look at other areas were test can be done in India, we've been very.
Very pleased with the you know the.
The results of the move our team there has done a great job our team.
Here in the U.S. has done a great job working with them and it's really been the.
Successful transition.
Okay and.
When we think about how the whole virtual acceleration and I guess is more real quick your professional fees and one of the men.
Folks on.
Hi, Tina hearing in the UK, So think about that and then we think about North America are you seeing any.
Potential of opportunities to place workers in the completely virtual setting and if so this has opened the door to candidates in other geographies.
Yeah, absolutely. So you know throughout the pandemic, we had a very high percentage of our employees.
Employees working working remotely.
As you know and so we're not going into the office that has continued.
In in certain areas of depending upon the client.
We have had the.
Several clients that have come to us and looking to add additional headcount and.
Management level positions and they're really open until where the spoke live. So there they are not looking for for them to be in a specific geography. So I do anticipate that as folks really sort of the allow how this is going to work for their organization. They understand what theyre going to do from a remote.
Work perspective, and and how they're going to operate I do anticipate what the more and more of that.
Alright, and thank you for taking all the questions I just want to sneak one more in all of its been about six months now since the talks about the.
The partnerships with employee stream and sense.
Helping streamline the recruiting and Onboarding of just wondering if you could talk to how those are going still in the theres any other partnerships you're exploring.
Yes, so I mean, those partnerships of gone very very well, we continue to expand as we're learning about the capabilities of each of those tool.
The how we can leverage those best for not only our client, but but our field employees. We continue to gauge the the adoption and the end user experience from our own internal colleagues. So that we can make sure that we're fine tuning.
And and making it.
The best experience that we possibly can so we'll continue to tap into what the what don't the technology partners have to offer.
And as I as I referenced earlier in the we're absolutely exploring multiple other types of technology that will that will help us continue to grow revenue and margin.
Well again, thank you for taking all my questions.
The the.
The the business recovering.
Thank you Josh Thank you Josh.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to lend the per new for closing remarks ex.
Thank you. So we appreciate your participation in todays call. Thank you so much and we certainly appreciate your continued interest in both we look forward to speaking with you again, when we report our fiscal first quarter 2021 result in marks.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great evening all.
The.
Oh call backing.
Come from.