Q3 2021 Volt Information Sciences Inc Earnings Call
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Greetings and welcome to the Volt Information Sciences, Inc. Third quarter 2021 earnings call. At this time, all participants are in a listen only mode.
Question and answer session will follow the formal presentation, if anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Joe Annoyance of Investor Relations you may begin.
Thank you Molly and good afternoon, everyone.
Thank you for joining us today for volt information Sciences third quarter fiscal year 2021 earnings conference call on the call today are Linda pronounced President and Chief Executive Officer, and Herb Mueller Senior Vice President and Chief Financial Officer.
After the market close this afternoon the company issued a press release announcing its results for the third third quarter fiscal year 2021. The release is available on the company's website at both dot com as well as the SEC website, followed as a form 8-K.
We have also prepared a supplemental presentation, which is available on the Investor Relations section of the company's website.
Before beginning today's prepared remarks, I would like to remind you that some of the statements made will be forward looking and 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 the COVID-19 pandemic on our business operations.
We refer you to volt information Sciences' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition.
Also on today's call management will reference certain non-GAAP financial measures, which we believe provide useful information for investors.
Conciliation of those measures to GAAP measures is included in the earnings press release issued this afternoon.
With that I would like to turn the call over to volts, President and CEO Linda pronounce Linda.
Thank you, Joe and welcome everyone to today's call.
Our third quarter financial results Mark another milestone for the company recording year over year revenue growth.
And positive net income in consecutive quarters for the first time in over a decade.
In addition, we achieved year over year improvement in gross margin and SG&A as a percentage of revenue.
Further narrowing the gap to third quarter, 2019 level and our EBITDA target of at least 3% by the end of 'twenty to 'twenty three.
Despite lingering effects of the COVID-19, and most recently the Delta variant our volt colleagues remain disciplined and focused on executing against our strategic initiatives.
All three of our operating segments, North American staffing North American MSP and international delivered year over year revenue growth and positive operating income for the quarter.
Furthermore, each segment also delivered improved revenue sequentially when adjusted for working days.
These are signs of what we believe to be the continuation of a sustainable trend.
And ongoing evidence of the successful progress across the organization.
Let me now turn the call over to Herb to provide additional detail on the financial Herb.
Thank you Linda revenue for the third quarter of 2021 on a GAAP basis was $222.0 million compared to $194.0 million in the prior year comparable quarter, a $37.0 million or 17% increase after adjusting for favorable current.
C translations overall company revenue increased $32.0 million or 15, 5% due to the continued improvement across our operating segments.
During Q3, 'twenty, one our domestic and international direct hire lines of business continue to show improvement.
The quarter, we were up 93% from the prior year and up 26, 6% compared to Q3 2019.
Looking at Q3, 2021 adjusted revenue for each segment.
Our North American staffing segment reported adjusted revenue of $179.4 million, an increase of 15, 9% from the prior year.
Adjusted revenue for International staffing segment was $31.0 million up 17, 3% from the prior year in our North American MSP segment reported adjusted revenue of $17.0 million up three 8% from the prior year.
Our North American staffing segment posted positive year over year revenue growth for the third consecutive quarter. The 15, 9% increase is primarily attributable to new business wins or the combination of retail and mid market clients combined with the expansion of business within existing clients direct hire revenue increased.
139% year over year and exceeded third quarter 2019 by 29, 2%.
Our international staffing segment increased $6.0 million or 17, 3% due to increased payroll service and staffing business in UK and France, as well as increased direct hire business and the U K at Singapore.
Direct hire revenue increased 43, 9% year over year.
Third quarter 2019 by 22, 3%.
Revenue in our North American MSP segment was up three 8% compared to the prior year, primarily attributable to increased demand in our payroll services business.
Gross margin for Q3, 'twenty, one was 16, 6% compared to 16, 1% in the prior year comparable quarter, primarily due to improved margins in our north American staffing and international segments.
Our North American staffing segment increased 70 basis points due to a mix of higher margin business.
Benefit from government wage subsidy.
Our international segment increased 80 basis points, primarily due to an increase in direct hire business North American MSP decreased 140 basis points, primarily due to business mix.
SG&A expense for Q3, 'twenty, one was $34 million.
Or 15, 6% of revenue compared to $33.0 million or 16, 8% of revenue in the prior year comparable quarter increase of $10.0 million was primarily due to higher incentives on increased sales volume increase in labor and higher medical claims experience, partially offset by lower.
Cost due to consolidating our real estate footprint.
Restructuring cost in the third quarter of fiscal 'twenty, one was primarily due to <unk> five.
$5 million related to ongoing costs of facilities compared in the second half of fiscal 'twenty.
The prior year quarter included charges, primarily related to our strategic cost reduction initiatives.
Impairment charges in the third quarter of fiscal 'twenty, one was primarily related to capitalized software costs. As a result of the change in access expected useful life of certain assets impairment charges in the third quarter of fiscal 2020, primarily relates to a consolidated.
And exiting certain leased office locations throughout North America, where we could be fully operational to successfully support our clients in this business operations remotely.
Operating income for the quarter was $7.0 million compared to a loss of $6.0 million in the prior year comparable quarter year over year improvement as a result of the actions previously mentioned opt.
Operating income for North American staffing segment was $11.0 million, an increase of $11.0 million compared to a year ago.
International staffing operating income was $3.0 million $14.0 million increase from the prior year and North American MSP operating income was <unk> 6 million a decrease of <unk> 4 million.
This is our 14th consecutive quarter recording positive operating income for each operating segment.
For Q3, 'twenty, one GAAP net income improved by $10.0 million $8.0 million or <unk> <unk> per diluted share compared to the prior year.
Adjusted EPS, which excludes restructuring and impairment charges was <unk> <unk> per diluted share.
Adjusted EBITDA for Q3 dollars 21 was $11.0 million or two 2% of revenue a $3.7 million improvement compared to Q3 2020.
Moving onto a few key items free cash flow and the balance sheet.
We ended the third quarter with $55.0 million in cash and equivalents, an additional $20.0 million in restricted cash and short term investments a combined increase of $4.0 million compared to the prior to year end and $1.5 million increase sequentially.
Our long term debt remained at $60 million. The same since January 2020, and total available liquidity increased 18, 1% from $29.0 million in April to $32.1 million in July.
We provided $4.0 million in cash flow from operations as a result of positive net income and increase in accounts receivable collections and lower payroll tax payments in the third quarter of fiscal 'twenty, one with capital expenditures of $9 million.
Trend for Q4 as.
As we look towards the fourth quarter, although the labor market remains tight and we continue to be impacted by restrictions in areas. We operate we expect revenue to improve 5% to 7% over last year. As a reminder, last year's fourth quarter marked a significant sequential improvement as we capitalize on the economic rebound we.
<unk> gross margin to be in the low to mid 60% range SG&A should be in the $34 million to $35 million range.
We believe the combination of increased revenue and favorable cost comparisons should result in improved operating income and EBITDA over the prior year quarter.
Overall, Linda and I continue to be encouraged with the performance in the third quarter of 'twenty, one given the consistent year over year revenue growth and positive net income.
I'll now turn the call back over to Linda Linda.
Thank you herb.
Before sharing commentary on the performance of each operating segment I would like to reflect on the shifting impact of COVID-19, and the Delta variant as well as share some thoughts relating to the labor shortages in the U S.
Candidate availability and supply chain challenges have become increasingly more apparent as the economy rebounds, and hiring needs across various industry are multiplying.
As mentioned on last quarter's call, we anticipated we might see some return to the labor force due to twenty-five state that at the time of the call. We are discontinuing extended supplemental unemployment offerings.
Having tracked this now for nearly 13 weeks there has been no material change in the candidate availability in those specific states.
The lingering safety theory due to COVID-19.
New concerns around the Delta variants.
And continued childcare issues are contributing to many jobs on a macro level going on still.
One additional ship since last quarter's call is the increase in the number of businesses mandating the vaccine as a condition for higher.
This is leading to some initial turnover.
Well, it's further limiting the available pool of candidates available for these specific jobs.
Last week as I'm sure you heard the Biden administration announced a new plan to implement vaccine mandate or routine testing at companies with more than 100 employees.
Details are still forthcoming and we will take appropriate action in collaboration with our clients as we learn more in the coming days and weeks.
The good news is that order demand remains well above last year and 2019 level same time period.
We believe this dynamic will continue for the time being yes, we remain cautiously optimistic that the reopening of schools for in person education. The continued push for all Americans to get vaccinated and the recent expiration of supplemental benefits across all states will alleviate some pressure on the tower.
Supply front.
Today I received a preview of candidate apply for last week, which was the first week without the additional unemployment stimulus.
We saw apply nationwide increased notably over the last six week average and week over week.
These improvements are early yet encouraging.
I am pleased to report that we have aggressively addressed the labor shortage situation through use of technology and intensified efforts related to candidate attraction.
We continue to expand our candidate engagement and chatbot technology across broader streams of the organization.
For the quarter, we engaged 61% more candidates than in the second quarter through automated surveys.
Specific communication or free placement confirmation.
As we seek to leverage technology to connect with more candidates from their initial point of interest.
We introduced a new function during the quarter, our scheduling tool, which provides candidates with access to our recruiters calendar and allows them to schedule an interview.
Our effectiveness with our chatbot is maturing to.
To date, the overall usage of this technology has saved approximately 20 hours per recruiter per month.
Allowing them to redirect that times high pay up activities for our clients.
Finally, we have invested in an AI powered job board, which will replace our current job board functionality.
This new AI powered job board will not only provide a much better user experience for any candidate searching for an opportunity on job dot dot com or vote dotcom.
It will also allow us to capture candidate behavior, which we can leverage for future opportunities.
We will also launch both recruiting assistant chat function as well as customized landing pages for client, giving them visibility to recruiting effort.
We expect implementation to begin at the end of October.
Now, let me turn to third quarter highlights on each of our operating segments, beginning with North American staffing.
For the third consecutive quarter, our North American staffing segment recorded topline and bottomline growth when compared to the prior year quarter.
We continued our strong trajectory of new logo wins and expansion within others.
Revenue growth from retail or our commercial and technical branch network delivered 28% growth over prior year and continues to outpace the growth of our enterprise client.
Representing 21% of revenue for the third quarter. This business line has proven to be less susceptible to economic downturn.
And the ongoing progress in this area will be a key contributing factor to achieving our desired EBITDA target of at least 3% by the end of 2023.
We continue to enhance and mature our retail boot camp training now conducting sessions twice per quarter at a minimum.
Our focus remains on accelerating growth in this business line and critical to that success will be purposeful head count investments in branches throughout the country.
I am pleased with the ongoing progress our teams are making with direct hire.
Our direct hire discipline continues to strengthen with results again exceeding pre pandemic levels.
We are seeing momentum across the commercial and technical branch networks with nearly every branch generating fees during the quarter.
We've even seen our strategic strategic sales team get in on the action winning a large volume direct hire partnership with a major corporation in southern California, placing 250 plus position.
The team currently has several large volume direct placement opportunities being negotiated as we continue to broaden our scope and build this as an additional offering.
The recently hired teams focused on accounting and finance and HR rules, specifically are showing early promise.
Although this model takes time to build out I remain confident in the team's ability to be a substantive contributor to the acceleration of direct hire in 2022 and beyond.
Similar to retail direct hire remains critical to our margin improvement strategy and we will continue to invest to capitalize in specific markets to boost growth.
Our new business and existing client expansion wins, the mid market and large accounts side also continued to gain traction as we saw multiple opportunities cleared enter.
Mentation in design stage or move to contract negotiation.
One such example, during the quarter with a large win with a packaging company on the West coast generated by one of our field leaders, beating out the incumbent competitor and generating immediate revenue.
Or another one a hugely successful six plus week project for a major box retailer one by one of our growth and expansion directors.
Our teams across the country ducked up and quickly fell nearly 1000 positions.
In the Midwest and East Coast, we have had multiple client expansion led by various field leaders and new wins in collaboration with our sales team.
These represent just a few of the many new win and expansion opportunities. Some that have already contributed revenue in margin. Some that will be realized in subsequent quarters and others that will go live in fiscal 2022.
Overall, our field and program team continued to demonstrate resilience in the face of labor shortage headwinds and are focused on delivering quality talent to meet the hiring needs of our new and existing clients.
Our international segment continues to gain traction with the ongoing maturation of our strategic initiatives, most notably in the discipline of I T life Sciences and engineering.
During the quarter, the U K, France, and Singapore showed progress well.
While Belgium remained flat given the ongoing COVID-19 restrictions and expanded shut down due to delta variant that have escalated throughout the summer.
Various talent supply challenges in each individual country, including fewer foreign candidates, particularly from Europe post Brexit.
Unprecedented talent shortages in countries like Belgium.
And much longer work visa processing timeline in countries like Singapore present ongoing headwinds to our business.
And although social restrictions have eased in the UK since July.
They are experiencing what is being referred to as our new Ping deneke as.
As a result of the rise in Delta very cases, and the easing of the social rules anyone coming in contact with a new Covid case is being pinged by the National Health services App, leading to a large number of people having to return to isolation for 10 days.
This is resulted in candidates deferring and are withdrawing completely from processes and canceling their job search.
The leadership team remained diligent around the changing landscape and is working to address the issues through expanded candidate outreach.
Candidate engagement campaigns.
More extensive social media presence and participation in multiple recruiting and thought leadership events.
We remain pleased with the recent positive trajectory overall, despite the obvious headwinds and although we remain optimistic we believe the anticipated progress may not necessarily be linear as we continue to navigate restriction in the countries in which we operate.
On our last earnings call I indicated our North American MSP segment was realizing a slower than expected rebound from their initial pandemic impact which for this group began in mid 2020.
We continue to be hampered by delayed decision, making on rfps.
Robust M&A and consolidation activity within multiple clients.
And of course, the lack of available candidates, especially in the manufacturing and professional skill set.
And although the focus remains on driving and targeting new business. The team has prioritized sales efforts in three areas.
First to have candid conversations with clients that have unfilled job due to low hourly rate.
A lack of benefit or arguably screening requirements.
Second is the expansion of business and our skill sets within existing MSP clients domestically or globally that currently do not fall under the program today.
And lastly to introduce our MSP to specific and targeted existing staffing clients, where we believe a first generation MSP program would be advantageous.
Recently, I had the pleasure of having dinner with several north American MSP colleagues.
They confirmed what I already knew.
We have an experienced and knowledgeable team, who can consult and deliver an amazing talent management program experience to our clients.
In summary, I concur with her.
Our performance throughout Q3, 2021 leaves us well poised to continue the projected growth trajectory for fiscal year 'twenty, one and laid the foundation for 2022.
I am incredibly proud of our colleagues this quarter for having again achieved improved financial and operational results.
I want to extend my sincere appreciation for their flexibility and willingness to adapt to this ever changing operating environment their ongoing commitment to each other and the organization.
And their unparalleled passion for our field employees and clients.
Across the organization, we remain focused on continued and accelerating growth across all areas of our business.
Strategic alignment of resources to high payoff activities.
Leveraging technology to drive candidate attraction and retention as well as cost and operational efficiencies.
All of which drive value for all stakeholders.
Now I would like to open up the call for questions operator.
And at this time, we'll be conducting a question and answer session.
He would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Our first question is from Josh Vogel with Sidoti and company. Please proceed with your question.
Hi, Linda and Herb hope, you're both doing well thanks for taking my questions.
No problem can you talk to you.
Yes, always and I apologize.
Hi, guys I actually got booted from the call for like a couple of minutes during the second part of your commentary Linda So I'm sorry, if you covered any of this but my first question.
A lot of commentary around supply constraints and I'm curious when in thinking about kpis.
Can you just give some commentary around the order flow you had coming in last quarter and help fulfillment metrics look like in the quarter versus you know what a quarter or two prior to that or even at the height of the pandemic.
Yeah. So our order volume continues to be a extremely high order volume is exceeding pre pandemic levels are in fact, it's even exceeding 2019 levels.
So we are continuing to see nice demand across the organization are of clients all sides are primarily manufacturing logistics.
You know also in a lot of the professional skill set.
From a fill rate perspective.
It really depends on on the type of business that you're looking at right as you're as you're looking at fill rates, but despite a lot of the headwinds. Despite the kind of candidate shortages. The teams have managed to deliver.
Deliver AR fill rates that are in line with pre pandemic levels, which I think is there is a significant.
Significant accomplishment they've done that through you know in some cases additional investments we've made to add.
Add some more hands to the mix in order to source and screen more candidates they've done that through the great work that the team has had around leveraging the technology and they've done that through you know really a lot of that expansion of the recruiting that to grassroots.
And and you know additional recruiting strategies that have allowed them to get.
Get more candidates in the funnel.
That's helpful. Thank you and in last quarter.
You mentioned.
The supply constraints, they're pervasive across the board, but not you know not specific to any skill set or location is that still the underlying theme are you starting to see some easing in certain sectors or skill sets or geographies I'm. Just curious about you know high level there.
Yeah, you may have missed the comment that I made were just literally right before the call I had gotten a preview of our candidate applies for last week.
And last week would have been the first week without the unemployment stimulus across all states and we saw a pretty significant a material uptick in the number of applies nationwide over our six week six week average as well as week over week. So you know <unk>.
Oh I I don't think so are you now a trend one week doesn't make a trend we'll monitor it closely but I certainly think its an encouraging sign.
For sure and thank you for that shifting gears a little bit.
You know the.
You know in the environment today in your new business pipeline are you seeing.
Meaningful changes in mix or in terms of client size or number of orders that they're putting in for it and then I guess on a slight tangent I've seen some other of some of your peers talk about larger businesses, who predominantly did things in house are now starting to open up.
The outsourcing model.
Actually given the supply constrained environment I was wondering if you are participating in that.
Yeah I I.
I can't really.
Pinpoint that that you know really our order volume that is coming from clients that didn't necessarily use and now are using I'm sure. There's a little bit of that are you know, where we're really seeing a lot of our new business come from either new expansion opportunities where are we.
We have not serviced in the past business that we're taking away from competitors are.
Or or you know business that that we are you know.
Convincing the client to perhaps take something that they were doing and and tweak it a little bit and allow us to assist to assist them with it in a different way 8-K that the large direct hire project that I talked about with a major company in southern California. So.
That's really where the majority of our new business is coming from.
I got you because you kind of answered my my next question because I was just thinking about when you. When you talk about the expansion with existing clients and I'm thinking about retail and mid market and the traction you're getting there.
Considering that relative to the history of the firm.
Going after retail and mid market as more of a recent initiative of yours I was just curious if any given the clients that you've added there over the last year year and a half are you growing with with that base as well or is it still mostly when you say expansion from new clients like solely coming from your larger legacy base.
Oh, no we're definitely growing on the retail side, we continue to expand that and they are expanding our existing client. It's a lot easier Josh to add a second third fourth too.
An existing client than it is to get a new client. So that's very much a part of what they do each and every day and we consistently are adding new business in that model as well.
Okay, Great and I'll just sneak in one more if I can and then ill let someone else ask Scott.
In the digital and tech enabled capabilities.
You you gave some good insights in how those initiatives are going and I guess, when we think about future investments beyond that October implementation you talked about.
And capital allocation in general with where you're at today do you think.
Investments will be targeted more internally like focus on productivity and efficiency or would it still be more client and candidate facing.
Yes, I think theres going to be a combination of things on.
On the investment front, obviously, our priority is thinks it makes us more efficient.
On the business you know, we're gonna be continuing those we've got a major project coming up.
To help our recruiters.
The board as well as our sales force.
So there's definitely opportunity there.
Not looking at any major back office investments, we've had considerable savings with the moves that we've made.
You know with the back office going to India.
So overall I think it'll continue to be focused on.
Improving our servicing of our clients.
Alright, great I'll hop off for now thanks again for taking my questions.
Thanks, Josh.
And as a reminder, if anyone has any questions you May press star one on your telephone keypad doing so will ensure you're spot on the question and answer queue.
And our next question is from Mike Hughes with <unk> capital. Please proceed with your question.
Good afternoon. Thanks for taking my questions I just wanted to follow up on your comments about the candidate applications picking up last last week.
What what's your theory that we're seeing a pickup now, whereas we didn't see it with the other 25 states. If I heard your other comments correctly is it just the fact that COVID-19 the Delta variant is.
Oh, hopefully peaked at this point and it was ramping when the other states rolled back what what's your theory on that.
Yes, Mike Great question, and a couple of things on that one you have to remember the 25 states that rolled back the unemployment benefits earlier are those states are already had much lower unemployment rates than the remaining 25 states.
Also represented about.
Roughly a quarter of our overall business, but those were and.
In states that had been also pay lower average unemployment benefits. So it wasn't really necessarily a great indicator as you know the Wall Street Journal recently did a article on that saying you know they didn't see any major impact.
But at the same time, we're not surprised now that it's been lifted on the other 25 states that have a.
Much higher unemployment and also they pay higher unemployment rates that this is a bigger impact and we will make a difference so but we will see you know again, one week doesn't make a trend, but certainly it was a I don't mean to US one when we just got that data.
Okay, and then I believe California is our largest state as a percentage of revenue.
And there are those Golden state stimulus checks I think there was one round that hit a few weeks ago and Theres. Another round that hit this Friday in there the relatively sizable so how did you kind of think about that when it when it came to guidance.
Yeah, there is still obviously and <unk>.
Pat there, it's hard to say exactly what that's going to be you know we had some of the other stimulus you know with the child.
You know credit as well that goes and so theres still a lot of money floating around there and and it does factor in overall.
Again, you know as we stated are 5% to 7% range.
We still expect some tightness in the candidate market. So there could potentially be some upside once we get past this.
Okay, I think one of the other things that we're also factoring in Mike and to piggyback on that is the.
Initial turnover that we're seeing in some of the companies that are mandating the vaccine. So we're seeing that we can see we're continuing you know each day, there's more conversations that are coming up today. We had another client that that joined the list of those that are that are going to mandate a van.
Maxine so that that is certainly beginning to show some initial turnover. It's it's certainly limiting available candidates that are applying for that job or willing to take those jobs. So all of that we really looked at and factoring in a given given some of that debt.
A brief experience that we've had over the last several weeks on that.
So the new blood in a mandate for employers with 100 or more employees, you're going to have a vaccine or a weekly testing I assume that that would cover the vast vast majority of your revenue base in the U S is that right.
That's correct.
Yeah, No no let me put a caveat there we havent seen the regulations, they're not due out for another roughly 10.11 days, so theres still a lot of unknowns. There. So we haven't really.
Come to any conclusion on the overall impact that this is gonna have yet until we see the details.
Right.
So.
Maybe it's probably far too early to tell but if people are quoting at the larger employers are 100 plus employee organizations.
Do you think that that benefits I don't know the 50 to 100 employee firm.
And if so does that help you at all.
Yes, potentially it could however on the on the.
Flip side longer term if everybody is in the same boat.
Again, you've got.
The 100 employee plus impacts close to $100 million.
Employees right now.
They don't have any option you know an easy option. They go elsewhere then.
Overall that can help the environment for US now the tradeoff is it something you know may elect to go to the smaller firms, but at the same time some of those smaller firms may elect follow suit and start requiring vaccination. So I mean, there's just so many unknowns.
They've gone round and round with this over the weekend just trying to think through the different ramifications and it's just really hard to say right now you could argue both sides of it.
Right right two last questions for you just can you talk about the pricing environment.
And your success at putting pricing through.
On a go forward basis, and then secondarily just any update on potentially exiting the a lease agreement on the California headquarters.
Yeah, I'll take the California headquarters a person that turn the other one we're smart over to Linda.
On that the ownership of the of our California headquarters just changed hands literally just two weeks ago. So we will be having discussions with the owners.
They weren't really interested in talking about it beforehand. It was acquired by a company that specializes in.
Industrial distribution centers are typically.
Typically are not in commercial real estate, so we're certainly going to pursue that.
If they decide they don't want to hold for a long period of time then.
Working our plan b would be to sublet.
The space.
Okay.
And then I'll take the pricing environment. So you know really and recently we've started to.
See more pricing pressure.
As we've been in conversations with several of our larger clients and.
Most of these directly related to the challenges that they're having a supply chain and you know looking to you know find something too to help with cost.
We've done a really nice job over the last 18 months.
You know eh.
Pricing and and maintaining our margins and it.
Amid the tough environment, and and and some pricing pressures, we anticipate we're going to continue to do the same thing we're having those individual conversations. We're remaining disciplined you know adds were pricing new business and going after new opportunities.
We're having conversations with clients are about wages, ensuring that we're paying are.
The right wages and benefits in and certainly along with the commensurate bill rates. So those are all conversations that we're having on a daily basis with with our client base and new prospects.
Okay. Thank you very much I appreciate it.
Thank you Mike.
Thanks, Mike.
And we have reached the end of the question and answer session and I'll now turn the call over to Linda <unk> for closing remarks.
Thank you everyone for your participation in today's call and for your continued interest in volt. We look forward to speaking with you again during our fourth quarter and full year fiscal 2021 earnings in January have a great day.
Yeah.
And this concludes today's conference and you may disconnect your lines at this time.
You for your participation.
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