GEE Group (JOB) Q2 2025 Earnings Call May 15, 2025 11:00 AM ET Company Participants Derek Dewan - Chairman & CEOKim Thorpe - SVP and CFO Derek Dewan Hello, and welcome to the GEE Group Fiscal twenty twenty five Second Quarter and First Half Ended 03/31/2025 Earnings and Update Webcast Conference Call. I'm Derek Dwan, Chairman and Chief Executive Officer of GEE Group. I will be hosting today's call. Joining me as a co presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer. Thank you f ...

GEE Group (JOB) Q2 2025 Earnings Call May 15, 2025 11:00 AM ET Speaker0 Hello, and welcome to the GEE Group Fiscal twenty twenty five Second Quarter and First Half Ended 03/31/2025 Earnings and Update Webcast Conference Call. I'm Derek Dwan, Chairman and Chief Executive Officer of GEE Group. I will be hosting today's call. Joining me as a co presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer. Thank you for joining us today. It is our pleasure to share with you BEE Group's results ...

EX-99.1 2 job_ex991.htm PRESS RELEASE EXHIBIT 99.1 GEE Group Announces Results for the Fiscal 2025 Second Quarter and YTD Jacksonville, FL / May 14, 2025 / Accesswire / GEE Group Inc. (NYSE American: JOB) together with its subsidiaries (collectively referred to as the "Company," "GEE Group," "our" or "we"), a provider of professional staffing services and human resource solutions, today announced consolidated results for the fiscal 2025 second quarter and year to date periods ended March 31, 2025. The Compa ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q1 2025 reveal a substantial decline in assets and a significant net loss, primarily due to goodwill impairment and tax provisions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly decreased to $61.8 million, driven by goodwill reduction and a deferred tax asset valuation allowance Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | September 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$61,770** | **$95,902** | **($34,132)** | | Goodwill | $24,607 | $46,008 | ($21,401) | | Deferred tax assets, net | $0 | $9,495 | ($9,495) | | Cash | $18,501 | $20,735 | ($2,234) | | **Total Liabilities** | **$11,129** | **$11,691** | **($562)** | | **Total Shareholders' Equity** | **$50,641** | **$84,211** | **($33,570)** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a substantial net loss of $33.1 million for the quarter, primarily due to goodwill impairment and tax provisions Quarterly Performance (Three Months Ended March 31, in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $24,495 | $25,589 | -4.3% | | Gross Profit | $8,360 | $8,393 | -0.4% | | Goodwill impairment charge | $22,000 | $0 | N/A | | Loss from Operations | ($23,220) | ($1,948) | 1092% | | Consolidated Net Loss | ($33,119) | ($1,008) | 3186% | | Diluted Loss Per Share | ($0.30) | ($0.01) | 2900% | Year-to-Date Performance (Six Months Ended March 31, in thousands) | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $48,520 | $53,726 | -9.7% | | Gross Profit | $16,286 | $17,729 | -8.1% | | Goodwill impairment charge | $22,000 | $0 | N/A | | Loss from Operations | ($23,993) | ($3,586) | 569% | | Consolidated Net Loss | ($33,811) | ($2,563) | 1219% | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities totaled $1.1 million, a reversal from the prior year, with significant cash used for acquisitions Cash Flow Summary (Six Months Ended March 31, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,141) | $423 | | Net cash used in investing activities | $(972) | $(38) | | Net cash used in financing activities | $(39) | $(1,656) | | **Net change in cash** | **$(2,152)** | **$(1,271)** | - The primary use of cash in investing activities was **$968 thousand** for a business acquisition (Hornet Staffing)[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Hornet Staffing acquisition, Industrial Segment divestiture, goodwill impairment, and a significant deferred tax asset valuation allowance - On January 3, 2025, the Company acquired Hornet Staffing, Inc. for **$1,500 thousand**, consisting of **$1,100 thousand** in cash and **$400 thousand** in promissory notes[18](index=18&type=chunk)[19](index=19&type=chunk) - The company's Industrial Segment has been classified as a discontinued operation as of March 31, 2025, with an expected divestiture in 2025[26](index=26&type=chunk) - A **$22,000 thousand** non-cash goodwill impairment charge was recorded for the Professional Services reporting unit due to net losses and a negative trend in the company's stock price and market capitalization[60](index=60&type=chunk) - A full valuation allowance of **$13,600 thousand** was recorded against net deferred tax assets due to significant recent pre-tax book losses and economic uncertainty, leading to a **$9,800 thousand** tax expense[87](index=87&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant net loss driven by non-cash charges, strategic divestitures, and the integration of new acquisitions - The net loss for Q2 2025 is primarily due to a **$22,000 thousand** goodwill impairment charge and the establishment of a full valuation allowance against deferred tax assets, both non-cash charges[99](index=99&type=chunk) - The company acquired Hornet Staffing, Inc. in January 2025 to broaden its footprint in the professional contract staffing market, particularly with managed service providers (MSP) and vendor management systems (VMS)[95](index=95&type=chunk)[101](index=101&type=chunk) - The Industrial Staffing Services segment is now reported as a discontinued operation, with a sale expected to close in the quarter ending June 30, 2025, as part of a strategy to focus on professional verticals[104](index=104&type=chunk) - The company is responding to market changes by integrating AI into its operating strategy, focusing on placing AI talent, and leveraging offshore recruiting models from the Hornet acquisition[100](index=100&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Consolidated net revenues decreased 4% to $24.5 million, with a significant operating loss driven by goodwill impairment Revenue Breakdown (Three Months Ended March 31) | Service | 2025 (in thousands) | 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Professional contract services | $21,495 | $23,134 | -7% | | Direct hire placement services | $3,000 | $2,455 | +22% | | **Consolidated net revenues** | **$24,495** | **$25,589** | **-4%** | Gross Profit Margin by Service (Three Months Ended March 31) | Service | 2025 | 2024 | | :--- | :--- | :--- | | Professional contract services | 24.9% | 25.7% | | Direct hire placement services | 100.0% | 100.0% | | **Combined gross profit margin** | **34.1%** | **32.8%** | - A non-cash goodwill impairment charge of **$22,000 thousand** was the primary driver of the **$23,200 thousand** loss from operations in Q2 2025[115](index=115&type=chunk)[116](index=116&type=chunk) - For the six months ended March 31, 2025, professional contract services revenues decreased **11%** year-over-year, while direct hire placement revenues were flat[123](index=123&type=chunk)[124](index=124&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity with $18.7 million in cash and $7.4 million available on its credit facility Liquidity Position (as of March 31, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Cash | $18,676 | | Working Capital | $24,109 | | Availability on Credit Facility | $7,368 | - Cash used in operating activities for the six months ended March 31, 2025 was **$1,100 thousand**, compared to **$400 thousand** provided by operating activities in the prior year period[140](index=140&type=chunk) - The company used **$1,100 thousand** in cash for the acquisition of Hornet Staffing, Inc. on January 3, 2025[142](index=142&type=chunk) - Management believes that the company can generate adequate liquidity to meet its obligations for the foreseeable future and at least for the next twelve months[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company indicates that this section is not applicable for the current reporting period - The company has indicated that this item is not applicable[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective, with no material changes to internal controls over financial reporting - Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[151](index=151&type=chunk) - No changes in internal control over financial reporting occurred during the six-month period that have materially affected, or are reasonably likely to materially affect, these controls[152](index=152&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) No significant legal proceedings are reported that would materially impact the company's financial position - There are no significant legal proceedings to which the Company is a party[153](index=153&type=chunk)[89](index=89&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) Investors are directed to the Annual Report on Form 10-K for risk factors, as no new risks are presented - The report refers to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details of the concluded share repurchase program, which bought back approximately 6.1 million shares, are provided - A share repurchase program, authorizing up to **$20,000 thousand** in purchases, ran from April 27, 2023, through December 31, 2023[155](index=155&type=chunk) - Upon conclusion, the company had repurchased **6,128,877 shares**, accounting for approximately **5.4%** of the issued and outstanding common shares prior to the program[156](index=156&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including officer certifications and data files

EX-99.1 2 job_ex991.htm PRESS RELEASE EXHIBIT 99.1 GEE Group Announces Results for the Fiscal 2025 First Quarter Jacksonville, FL / February 13, 2025 / Accesswire / GEE Group Inc. (NYSE American: JOB) together with its subsidiaries (collectively referred to as the "Company," "GEE Group," "our" or "we"), a provider of professional staffing services and human resource solutions, today announced consolidated results for the fiscal 2025 first quarter ended December 31, 2024. All amounts presented herein are con ...

Financial Performance - The company incurred a net loss of $(692) thousand for the fiscal first quarter ended December 31, 2024, primarily due to declines in business from negative economic and labor market conditions [90]. - Consolidated net revenues for the three months ended December 31, 2024, were $26,026 thousand, a decrease of $4,605 thousand or 15% compared to $30,631 thousand in the same period of 2023 [97]. - Professional contract services revenues decreased by $3,568 thousand or 14%, while industrial contract services revenues decreased by $493 thousand or 20% compared to the prior year [98]. - Direct hire placement services revenues fell by $544 thousand or approximately 18% for the three months ended December 31, 2024, reflecting challenging economic conditions [99]. - The Company's revenues for the three months ended December 31, 2024, decreased by 15% compared to the same period in 2023 [106]. - The loss from operations improved to $(781) for the three months ended December 31, 2024, compared to $(1,674) in 2023 [109]. - The Company's net loss was $(692) for the three months ended December 31, 2024, a reduction of $863 from $(1,555) in 2023 [113]. - Cash flows used in operating activities were $(1,117) for the three months ended December 31, 2024, compared to $(919) in 2023 [116]. Cost Management - The company expects to reduce future annualized selling, general and administrative (SG&A) expenses by approximately $3.0 million pre-tax due to strategic actions taken [91]. - SG&A expenses for the three months ended December 31, 2024, decreased by $1,791 thousand or 17% compared to the same period in 2023, representing approximately 33.9% of revenues [104]. - SG&A expenses were reduced to $91 for the three months ended December 31, 2024, down from $548 in the same period of 2023 [107]. - Amortization expense significantly declined to $205 for the three months ended December 31, 2024, from $720 in 2023, primarily due to impairment charges [108]. Acquisition and Market Potential - The company acquired Hornet Staffing, Inc. on January 3, 2025, which is expected to be accretive to earnings and enhance competitive capabilities [93]. - The Company completed the acquisition of Hornet Staffing, Inc. for $1,100 in cash on January 3, 2025 [119]. - The global MSP/VMS market accounted for approximately $222 billion of temporary staffing spend under management in 2023, indicating significant market potential [94]. Operational Efficiency - The company plans to spend between $500 thousand and $1.0 million on systems and software over the next 12 to 18 months to enhance operational efficiency [91]. - The combined gross profit margin for the three-month periods ended December 31, 2024, was approximately 31.9%, slightly up from 31.8% in 2023 [102]. Cash Position and Borrowings - As of December 31, 2024, the Company had $19,694 in cash, a decrease of $1,134 from $20,828 as of September 30, 2024 [116]. - The Company had $6,977 available for borrowings under its facility as of December 31, 2024, with no outstanding borrowings [121]. - The share repurchase program authorized the Company to buy up to $20 million of its common stock, with 6,129 shares repurchased by December 31, 2023 [122].

Financial Performance - Consolidated revenues for Q2 2024 were $28.0 million, down 28% year-over-year, and $58.7 million for the first half, down 27% compared to the same period in 2023[4] - Professional contract services revenues decreased to $23.1 million for Q2 2024, down $7.6 million from Q2 2023, and $48.2 million for the first half, down $14.3 million year-over-year[4] - Direct hire placement revenues fell to $2.4 million for Q2 2024, down from $4.9 million in Q2 2023, and $5.5 million for the first half, down from $10.6 million in the same period last year[4] - Total net revenues for Q1 2024 were $28,050 thousand, a decline of 28% compared to $38,859 thousand in Q1 2023[25] - Gross profit for Q1 2024 was $8,767 thousand, down 34% from $13,216 thousand in Q1 2023[25] Profitability and Loss - Gross profits for Q2 2024 were $8.7 million with a gross margin of 31.3%, compared to $13.2 million and 34.0% in Q2 2023[4] - Net loss for Q2 2024 was $(1.0) million, or $(0.01) per diluted share, compared to net income of $0.7 million, or $0.01 per diluted share in Q2 2023[6] - Net income for Q1 2024 was $(1,008) thousand, a decrease from $658 thousand in Q1 2023, representing a decline of 253%[21] - Non-GAAP adjusted EBITDA for Q1 2024 was $(630) thousand, down from $1,702 thousand in Q1 2023, a decrease of 137%[21] - Adjusted EBITDA for Q2 2024 was $(0.6) million, down from $1.7 million in Q2 2023, reflecting the impact of fewer job orders and wage inflation[8] Cash Flow and Liquidity - Free cash flow year-to-date for fiscal 2024 was $0.4 million, compared to $1.3 million for the first half of fiscal 2023[8] - Net cash provided by operating activities for the first half of 2024 was $423 thousand, a decrease of 70% from $1,439 thousand in the same period of 2023[24] - Non-GAAP free cash flow for the first half of 2024 was $385 thousand, down 72% from $1,355 thousand in the first half of 2023[24] - As of March 31, 2024, the company had a cash balance of $21.2 million and a current ratio of 3.9, with zero long-term debt[8] Assets and Liabilities - Total assets as of March 31, 2024, were $117,012 thousand, a decrease of 5% from $123,611 thousand as of September 30, 2023[26] - Total liabilities as of March 31, 2024, were $11,539 thousand, down from $14,310 thousand as of September 30, 2023, a reduction of 19%[26] Strategic Focus - The company is implementing strategic recommendations from DC Advisory, focusing on organic and M&A growth while maintaining a cautious approach to share repurchases[9] - The company is focused on expanding its staffing solutions in the healthcare sector, particularly through its Scribe Solutions brand[27] Expenses - Selling, general and administrative expenses (SG&A) were $10.0 million for Q2 2024, down 15% year-over-year, but SG&A as a percentage of revenues increased to 35.7% from 30.1% in Q2 2023[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Illinois 36-6097429 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-05707 GEE GROUP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or (I.R.S. Employer Identification Number) 7751 Belfort Parkway, Suite 150, Jacksonville, ...

GEE Group Inc. (NYSE:JOB) Q1 2024 Earnings Conference Call February 14, 2024 11:00 AM ET Company Participants Derek Dewan - Chairman & Chief Executive Officer Kim Thorpe - Senior Vice President & Chief Financial Officer Conference Call Participants Derek Dewan Hello, and welcome to the GEE Group fiscal 2024 First Quarter Ended December 31, 2023 Earnings and Update Webcast Conference Call. I’m Derek Dewan, Chairman and Chief Executive Officer of GEE Group. I will be hosting today’s call. Joining me as a co-p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-05707 GEE GROUP INC. (Exact name of registrant as specified in its charter) Illinois 36-6097429 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Iden ...