Omega Mapping Services, Inc. Q1 FY2020 earnings call

• Progress on strategic transformation with adjusted revenue at top end of expectations but overshadowed by prior year's unprecedented demand and client shifts. - North American Staffing impacted by workforce adjustments from larger clients and client shifts to MSP. - North American MSP continued growth through service expansion and new wins. - International segment monitoring Brexit and COVID-19 implications, expecting Q2 headwinds. - Arctern transition first phase nearly complete, with second phase ongoing. - COVID-19 preparedness measures in place, including incident response team and travel policy updates.

North American Staffing represented 84% of overall revenue in the first quarter, with revenue of $182.4 million and adjusted revenue decreasing 12.7%. International staffing business was 12% of total sales, at $26.2 million with adjusted revenue increasing 0.2% year-over-year. North American MSP was 4% of total revenue, with revenue increasing 14% to $9.4 million during the first quarter, and adjusted revenue up 13.1%.

Management does not provide guidance at this point due to fluid and rapidly changing market conditions but remains optimistic about improved adjusted revenue and adjusted EBITDA performance in the latter half of fiscal 2020.

• Impact of Brexit on international segment. - COVID-19 situation potentially affecting business. - Market volatility posing challenges for potential acquisitions and risk assessment.

Q: Can you give more commentary around liquidity position?

A: Overall, Volt has over $30 million available, with fixed costs low, and feels comfortable weathering scenarios including those related to coronavirus.

Q: Quantify year-over-year decline from large clients in North American Staffing and new business offset?

A: Primary driver of shortfall came from specific large clients, but new business wins and expansions with existing clients are part of the picture.

Q: Talk about new business pipeline for MSP unit?

A: North American MSP segment has robust pipelines with multiple accounts close to closing and being targeted.

Q: Time line of Arctern transition?

A: Phase 1 nearly complete, with Phase 2 continuing through the quarter and exiting positions in North America early in Q3.

Q: Appetite for acquisitions in current market environment?

A: Uncertainties in market make it hard to assess, but would consider opportunities that make business sense if they arise.