Staffing 360 Solutions, Inc.

Greetings to all, and welcome to the Staffing 360 Solutions Fiscal Q2 2021 Results Conference Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this call is being recorded. This conference call will contain forward-looking statements within the meaning of the U.S. federal securities laws concerning staffing 360 solutions incorporated. The forward-looking statements are subject to a number of significant risks and uncertainties, and actual results may differ materially. Please refer to the company's filings with the SEC, which contain and identify important risks and other factors that may cause staffing 360 solutions actual results differ from those contained in our forward-looking statements. All forward-looking statements are made as of today, August 17th, 2021. And Staffing 360 Solutions expressly disclaims any obligation to revise or to update any forward-looking statement after the date of this conference call. During these prepared comments, the company may make reference to certain non-GAAP measurements such as adjusted EBITDA, where applicable. We have provided reconciliations of these non-GAAP measurements to the most directly comparable GAAP measure. It is now my pleasure to introduce Brendan Flood, Chairman, President, and Chief Executive Officer of Staffing 360 Solutions. Mr. Flood, you may begin.

Thank you, operator.

And thank you to everyone who has joined us for Staffing 360's fiscal Q2 2021 financial results conference call. I'm joined today by Khaled Anwar, our principal accounting and principal financial officer. I'm pleased to speak with you today about the solid progress that we have made and the improved results we have delivered in the second quarter. I am optimistic about the vast and growing pipeline of opportunities in the staffing business and also about the progress being made in COVID-19 vaccination efforts in the United States and the United Kingdom. I will continue to stress that the wellbeing of our staff, contractors, and clients continues to be a vital and key priority. We will discuss this in a little bit more detail later in the call. The format of our call today will begin with my overview of our improved quarterly results and then Khaled will provide more detail on the financials. Next, I'll discuss how we continue to make excellent progress through the pandemic, and I'll add more color about our strong quarter and our optimistic view of the business outlook. The line will then be open for your questions. Today, Staffing360 Solutions operates our seven brands with 14 US and two UK branches. In each of our five verticals, we are seeing promising and positive indications while industry trends continue to improve. As outlined in yesterday's press release, revenue for Q2 2021 grew to $50.5 million with gross profit up to $9 million. Excluding First Pro, which was disposed of in September 2020, Revenue growth was 23% year-on-year, and gross profit showed a markedly improved 37% uplift. We also recorded sequential quarterly growth in both revenue and gross profit, a sign of improvement in our industry. On a year-to-date basis, we were within just a couple of percentage points from returning to 2020's revenue and gross profit, excluding the disposed business, Year to date, we are up 3.3% in revenue and 10.3% in gross profit. Our adjusted EBITDA for Q2 was $1.4 million, which was up 160% on the prior year and growth of 21% from Q1 2021.