Good morning one and all. We almost waited until the end of the trading day to deliver Wednesday's newsletter, which is when it's normally sent. Given the nature of today's early news though, we decided waiting until after the close would be too late. This information has the potential to really move one of our Featured Stocks. Remember Staffing 360 Solutions (STAF)? This was an IT staffing agency we started following in 2014 when it was just getting started on a roll-up strategy that would eventually make it a company doing $300 million in annual sales. We haven't been disappointed. Like we told you back on September 19th, the company's preliminary revenue figure of $47 million for the recently completed quarter was not only 30% better than the year-ago top line, it translates into an annualized run rate of $188 million. Staffing 360 Solutions is well on its way to its target revenue. What we couldn't pass along to you a couple of weeks ago -- simply because the numbers weren't available -- were the EBITDA, income, cash flow, and gross profit figures. We were planning on waiting until October for them, when the official filing was to be submitted. Well, good news. The company gave us an interim update today to flesh out more of the story. We've got the data and an updated progress graph below. Before we show it to you though, let's take a small step back and briefly give you some perspective. The whole point of a roll-up strategy is to combine several similar businesses into one larger one that has more clout and lower relative expenses than the separate companies could achieve on their own. Ever heard the term "the whole is greater than the sum of the parts?" That's what a roll-up strategy does. Some costs are shared, as are some capabilities. Different areas of expertise are brought to the table, and all of the individual companies within the group can lean on one another and/or the parent. The big benefit, however, is relatively lower expenses against a backdrop of sales growth. That is, as impressive as top-line growth may be, bottom line growth should be even more impressive. That's exactly what we've seen so far. Last quarter's EBITDA for Staffing 360 Solutions was up 180% on a year-over-year basis to $1.7 million. Gross profits were up 33% on a year-over-year basis, to $8.4 million. In short, the roll-up strategy is working. Take a look. We suspect the rest of the numbers in mid-October will be just as impressive. Now, with all of that being said, I want to add one thing to the discussion which probably doesn't get added enough. That is, as well as STAF is orchestrating the roll-up strategy (and doing so cost-effectively), it's not mere coincidence this is all happening within the IT staffing industry. While job growth on most fronts is lackluster, demand for information technology workers is already through the roof, exceeding supply. That good problem is going to get worse before it gets better too. Just to paint a picture of how desperately companies need more qualified IT workers, staffing agency Robert Half recently found that the starting pay for IT salaries in 2017 was going to rise 3.8% from 2016's levels... deep into six-figure territory. It's the only group of workers I know of getting any kind of meaningful raise next year, and I don't know of any other industries that START their workers out with an annual salary above $100,000. Robert Half's data underscores other information we've passed along to you about the staffing industry. One of the most telling? According to the Bureau of Labor Statistics, software and developer positions will grow by 19% between 2014 and 2024, making it one of the nation's fastest-growing non-medical career choices. When you broaden the data out to "computer and mathematical occupations", the ten-year growth projection is 13.1%, which IS the second-highest growth pace among all jobs (second only to healthcare). In other words, Staffing 360 Solutions is in the right place at the right time. What we still find stunning about the STAF story is how this company, which is not only doing nearly $200 million per year and is within sight of positive net income, is still only valued at a market cap of $10.2 million. It makes no sense. We remain optimistic Staffing 360 Solutions will have its day in the sun though, and once the market connects the dots, it could prove catalytic for the stock. You saw the chart above. There's nothing not to like about its progress. Here's the full press release. Staffing 360 Solutions Announces Record Quarterly Adjusted EBITDA of $1.7 Million Company Reaffirms Fiscal Q1 Revenue of $47 Million, Net Loss Improves to $1.3 Million and Adjusted EBITDA Expected to Be $1.7 Million, a 180% Increase Year Over Year NEW YORK, NY--(Marketwired - September 28, 2016) - Staffing 360 Solutions, Inc. (NASDAQ: STAF), a public company executing a global buy-and-build strategy through the acquisition of staffing organizations in the US and the UK, today pre-announced its unaudited financial results for the fiscal first quarter ended August 31, 2016, including record revenue and Adjusted EBITDA levels. Subject to the completion of the review of Staffing 360 Solutions' full financial statements and filing with the SEC, the results for fiscal Q1 2017 are expected to be as follows: Revenue of $47 million, a 30% increase over $36 million in Q1 2016; Gross profit of $8.4 million, a 33% increase over $6.3 million in Q1 2016; Net loss of $1.3 million, a 23% improvement compared to $1.7 million in Q1 2016; Adjusted EBITDA of $1.7 million, a 180% increase over $0.6 million in Q1 2016. "The August quarter is typically one of the strongest quarters of the year and we demonstrated this by hitting a record $47 million of revenue and over 30% growth year over year," stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. "Our net loss has improved year over year, and perhaps even more impressive, is our Adjusted EBITDA, which is expected to be $1.7 million for fiscal Q1 and $5.2 million for the trailing twelve months, a 25% increase over our fiscal year results that were just announced at the beginning of September. Once again we have broken records, and this is the largest quarterly Adjusted EBITDA figure in Staffing 360 Solutions' history." Mr. Flood continued, "This sizable $1.7 million figure has been supported by improving margins at both the gross profit and EBITDA levels and by increased productivity and cost controls. Not only is our Adjusted EBITDA increasing over 180% compared to the same period last year, this puts us on a strong growth trajectory to achieve even more milestones in fiscal 2017 and beyond." The Company expects to announce its financial results for the fiscal first quarter ended August 31, 2016 via press release and Form 10-Q before the SEC filing deadline in mid-October, along with an earnings conference call. Staffing 360 Solutions believes that a consolidation strategy is ideally suited for the highly fragmented temporary staffing industry. The management team has been engaged in the development of a comprehensive program to create a robust pipeline of prospective acquisitions, with a longer term objective of driving annual revenues to $300 million. For more information about Staffing 360 Solutions and complete investor materials such as investor presentations, white papers and webcasts of past earnings calls, please visit: www.staffing360solutions.com/res.html. About Staffing 360 Solutions, Inc. Staffing 360 Solutions, Inc. (NASDAQ: STAF) is a public company in the staffing sector engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the US and UK. The Company believes the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $300 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering and IT staffing space. For more information, please visit: www.staffing360solutions.com. Follow Staffing 360 Solutions on Facebook, LinkedIn and Twitter. Non-GAAP Financial Measures The Company uses financial measures which are not calculated and presented in accordance with US generally accepted accounting principles ("GAAP") in evaluating its financial and operational decision making regarding potential acquisitions, as well as a means to evaluate period-to period comparison. The Company presents these non-GAAP financial measures because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We refer you to the reconciliations below. The Company defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, income taxes, depreciation and amortization, and amortization of non-cash stock-based compensation, non-recurring acquisition and restructuring expenses and goodwill impairment charges. Forward-Looking Statements Certain matters discussed within this press release are forward-looking statements including, but not limited to the timing and ability to enter into any additional acquisitions and expand our business, as well as the size of future revenue or trading volume or future access to capital markets. Although Staffing 360 Solutions, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Specifically, in order for the Company to achieve annualized revenues of $300 million, the Company will need to successfully raise sufficient capital, to consummate additional target acquisitions, successfully integrate any newly acquired companies, organically grow its business, successfully defend any potential future litigation, as well as various additional contingencies, many of which are unknown at this time and generally out of the Company's control. The Company can give no assurance that it will be able to achieve these objectives. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions, our ability to access the capital markets on terms acceptable to us, or at all, our ability to comply with our contractual covenants, including in respect of our debt and other risks detailed from time to time in Staffing 360 Solutions' reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Corporate Investor Contact: Staffing 360 Solutions, Inc. Darren Minton, Executive Vice President 212.634.6413 darren.minton@staffing360solutions.com Financial Contact: Staffing 360 Solutions, Inc. David Faiman, Chief Financial Officer 212.634.6410 info@staffing360solutions.com