Financial Data and Key Metrics Changes - The company reported net income of $2.6 million or $0.02 per diluted share for Q3 2022, and for the nine-month period, net income was $20.4 million or $0.18 per diluted share, compared to net losses in the same periods of the previous year [5][20]. - Consolidated revenues for Q3 2022 were $41.1 million, up 8% year-over-year, and for the nine-month period, revenues were $123.6 million, up 15% year-over-year [6][9]. - Non-GAAP adjusted EBITDA for Q3 2022 was $4.1 million, a 34% increase from the prior year, representing a 10% margin to revenue [7][22]. Business Line Data and Key Metrics Changes - Contract staffing services contributed $33.1 million (80% of revenues) for Q3 2022, with a 2% increase year-over-year, while direct placement services contributed $8 million (20% of revenues), showing a 45% increase year-over-year [9][10][11]. - Total revenues from the professional staffing services segment were $37 million, representing 90% of total revenue, with an 8% increase year-over-year [13]. - Industrial staffing services revenues were $4.1 million for Q3 2022, compared to $3.8 million in Q3 2021, indicating a slight increase despite pandemic-related challenges [15]. Market Data and Key Metrics Changes - The IT services end markets accounted for 48% of professional services business segment revenues for the nine-month period, with a 27% year-over-year increase [13]. - Other professional services markets accounted for 52% of revenues, with a 14% year-over-year increase [14]. Company Strategy and Development Direction - The company aims for sustainable growth and has a target of reaching $1 billion in sales, focusing on creating shareholder value and opportunities for employees [29][46]. - There is a strong emphasis on maintaining a clean balance sheet with no outstanding debt, which positions the company well for future growth and acquisitions [26][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential economic downturns, citing a strong labor market and ongoing demand for staffing services [56][96]. - The company is actively hiring and filling job orders, indicating a bullish outlook despite economic uncertainties [56][57]. Other Important Information - The company reported a working capital ratio of 3.0 to 1 and positive cash flow from operating activities of $3.4 million for Q3 2022 [24]. - The liquidity position is strong, with over $17 million in cash and $14 million available under a bank credit facility [29]. Q&A Session Summary Question: Why not use cash for stock buybacks? - Management indicated that while stock buybacks are considered, maintaining cash reserves for M&A opportunities is prioritized [31][33]. Question: What is the company's plan regarding undervaluation? - Management acknowledged the company's undervaluation and mentioned ongoing discussions about stock buybacks and potential acquisitions [44][66]. Question: How much cash is needed to run operations? - The company has historically operated on $3 million to $4 million in cash, which covers payroll cycles effectively [35][36]. Question: How will acquisitions be funded? - Acquisitions will be funded through available cash, financing, or seller financing, with a focus on not over-leveraging the company [41][42]. Question: What is the outlook for the labor market? - Management noted that the labor market remains tight, with more job orders than candidates, indicating continued demand for staffing services [56][57]. Question: How does the company view competition? - The company monitors various competitors across different verticals, emphasizing its unique positioning in the market [77][78].

Financial Performance - Consolidated net revenues for the three months ended June 30, 2022, were $41,113, an increase of $3,045 or 8% compared to $38,068 for the same period in 2021[113]. - The Company's net income for the nine-month period ended June 30, 2022, was $20,388, compared to a net loss of $(2,987) for the same period in 2021, primarily due to gains from PPP loan forgiveness[149]. - Consolidated net revenues for the nine-month period ended June 30, 2022, were $123,589, representing a 15% increase from $107,429 in 2021[132]. Revenue Breakdown - Direct hire placement services revenues increased by $2,497, or approximately 45%, to $8,026 for the three months ended June 30, 2022, compared to $5,529 in the prior year[115]. - Professional contract services revenue increased by $9,649, or 12%, while direct hire placement services revenue surged by $7,494, or 60%, for the nine-month period ended June 30, 2022[131][134]. Profitability Metrics - The overall gross profit margin improved to approximately 40.1% for the three months ended June 30, 2022, up from 36.3% in the same period of 2021, largely due to a higher mix of direct hire revenues[119]. - The Company's combined gross profit margin improved to 37.7% for the nine-month period ended June 30, 2022, up from 34.7% in 2021, driven by a higher mix of direct hire revenues[138]. - Professional contract services gross margin was approximately 26.9% for the three months ended June 30, 2022, compared to 26.8% in the same period of 2021[120]. - Industrial contract services gross margin improved to approximately 16.6% for the three months ended June 30, 2022, from 15.4% in the prior year[121]. Expenses - Selling, general and administrative expenses (SG&A) increased by $1,747 for the three months ended June 30, 2022, with SG&A as a percentage of revenues rising to approximately 31% from 29% in the prior year[122]. - Selling, general and administrative expenses (SG&A) increased by $7,668 for the nine-month period ended June 30, 2022, with SG&A as a percentage of revenues rising to approximately 30% from 28% in 2021[144]. - The cost of contract services for the three months ended June 30, 2022, totaled $24,612, an increase of $370 or approximately 2% compared to $24,242 in the prior year[117]. - The cost of contract services for the nine-month period ended June 30, 2022, totaled $76,992, reflecting a 10% increase from $70,115 in 2021[136]. Operational Efficiency - The income from operations increased by $1,205 for the three months ended June 30, 2022, compared to the same period in 2021[127]. - Interest expense decreased to $96 for the three months ended June 30, 2022, down by $443 from $539 in the same period of 2021, primarily due to the retirement of the Former Credit Agreement[128]. Cash Flow and Liquidity - As of June 30, 2022, the Company had cash of $17,540, an increase of $7,593 from $9,947 as of September 30, 2021[152]. - Net cash provided by operating activities for the nine-month period ended June 30, 2022 was $7,818, compared to $(2,276) for the same period in 2021[153]. - The Company had working capital of $26,521 as of June 30, 2022, a significant increase from $2,528 as of September 30, 2021, primarily due to free cash flow generation and PPP loan forgiveness[152]. - The Company had approximately $14,317 in availability for borrowings under its CIT Facility as of June 30, 2022, with no outstanding borrowings[160]. Debt Management - The Company repaid $56,022 in aggregate outstanding indebtedness under the Former Credit Agreement on April 20, 2021, using proceeds from a public offering[156]. - The CIT Facility, established on May 14, 2021, provides a $20 million asset-based senior secured revolving credit facility, maturing on May 14, 2026[158]. Business Adaptation - The company continues to adapt its business model in response to COVID-19, including implementing flexible work-from-home arrangements and converting certain branch offices to virtual locations[116]. - Management aims to increase revenue through organic growth in professional contract services and direct hire placement, focusing on higher-margin sectors such as IT, engineering, healthcare, and finance[150]. Tax and Impairment - The effective tax rate for the nine-month periods ended June 30, 2022, and 2021, was lower than the statutory rate, primarily due to the valuation allowance on the net DTA position[148]. - The Company recognized a non-cash goodwill impairment charge of $2,150 during the nine-month period ended June 30, 2022, with no additional impairment charge taken as of June 30, 2022[145][149]. Payroll Tax Deferral - The Company deferred $3,654 in payroll taxes under the CARES Act, with $1,827 paid during the nine-month period ending June 30, 2022[167].

Financial Data and Key Metrics Changes - The company reported net income of $1.1 million or $0.01 per diluted share for Q2 2022 and $17.8 million or $0.15 per diluted share for the first half of 2022 [7][22] - Consolidated revenues were $39.6 million for Q2 2022 and $82.5 million for the first half of 2022, representing increases of 14% and 19% respectively [8][12] - Non-GAAP adjusted EBITDA for Q2 2022 was $3.4 million, up 69% year-over-year, and for the first half, it was $7.3 million, up 31% [9][24] - The company's working capital ratio at March 31, 2022, was 2.7:1, with positive cash flow from operating activities of $2.1 million for Q2 2022 [26][27] Business Line Data and Key Metrics Changes - Contract staffing services contributed $33.7 million and $70.4 million, accounting for 85% of total revenue for both Q2 and the first half of 2022 [12] - Direct placement services revenues were $5.9 million and $12 million, up 61% and 71% respectively [14] - Professional Staffing Services segment revenues were $35.9 million and $74.7 million, representing 91% of total revenue, with increases of 17% and 24% year-over-year [15] Market Data and Key Metrics Changes - IT services accounted for 47% of Professional Services Business segment revenues, up 21% year-over-year, while other professional services accounted for 53% and were up 36% [16] - Industrial staffing service revenues were $3.7 million and $7.8 million, showing a decline compared to the previous year due to pandemic-related conditions [17] Company Strategy and Development Direction - The company aims to sustain momentum from previous quarters and anticipates continued good results for the remainder of 2022, barring unforeseen events [29] - Management is considering share buybacks and smaller tuck-in acquisitions, emphasizing a cautious approach to leverage and high-interest debt [39][49] - The company is focused on enhancing profitability and exploring strategic acquisitions in high-demand sectors like IT and cybersecurity [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic conditions, noting that staffing companies often perform well during downturns [88] - The company is optimistic about revenue growth, projecting between $160 million and $165 million for the upcoming quarters [90] - Management highlighted the importance of maintaining a strong balance sheet and avoiding over-leverage in future acquisitions [84] Other Important Information - The company has no outstanding debt and a strong liquidity position with $14 million in cash and over $13 million available under its bank facility [27][29] - The company has been able to offset taxable income using net operating loss carryforwards, resulting in a near-zero tax rate [34] Q&A Session Summary Question: Tax rate explanation and realistic cash tax rate range - The tax rate is near nil due to significant NOL carryforwards, which are expected to offset taxable income for about a year and a half [34] Question: Share buybacks versus acquisitions - Management is considering share buybacks but is restricted from doing so until December 2022 due to CARES Act provisions [40] Question: Management's approach to leverage and acquisitions - The company will not over-leverage and is focused on smaller, profitable acquisitions without high-interest debt [44] Question: Reporting additional metrics - Management indicated that bill rates and other metrics are available in investor presentations and are open to further discussions [48] Question: Future growth targets and acquisition landscape - The company is focused on smaller tuck-in acquisitions and is well-positioned to pursue them without significant leverage [50][71] Question: Impact of rising interest rates and recession risks - Rising interest rates may affect acquisition financing, but the company is positioned to benefit from potential downturns [84] Question: Demand trends in IT hiring - While some tech firms are slowing hiring, the company has not seen a slowdown in demand from its client base, which is primarily in industrial sectors [85] Question: Headwinds and tailwinds facing the company - The company is well-positioned with strong leadership and talent, while economic conditions may present some headwinds [87]

Company Overview - GEE Group operates in the ~$180 billion staffing services and HR solutions industry[5] - The company's strategy involves organic growth and acquisitions of high-margin businesses[8] - GEE Group aims to reach $1 billion in U S professional revenue[31] Financial Performance - GEE Group's revenue was $162 million for the trailing twelve months (TTM) ending March 31, 2022[9] - Gross profit for the same period was $59 million, representing a 36% gross margin[9] - Non-GAAP Adjusted EBITDA was $14 million, with a 9% margin[9] - The company eliminated $127 million in high-cost debt, resulting in ~$12 million in annual interest savings[5, 18, 46] - In Q2 2022, revenue grew by 14% and professional revenue grew by 17%[38] - Q2 2022 Non-GAAP Adjusted EBITDA was $3.4 million, compared to $2.0 million in Q2 2021[38, 40, 43] Revenue Breakdown - Temporary staffing accounted for 85% of revenue, while permanent placement accounted for 15%[10, 35] - IT contributed 43% to revenue, Finance, Accounting & Office also contributed 43%, Professional Other 4%, and Light Industrial 10%[35]

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 March 31, 2022 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) (State or other jurisdiction of incorporation or Illinois 36-6097429 (I.R.S. Employer Identification Number ...

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, 2021 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) (State or other jurisdiction of incorporation or organization) Illinois 36-6097429 (I.R.S. Employer Iden ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended September 30, 2021 ☐ 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 | (I.R.S. Employer | | incorporati ...

GEE Group, Inc. (NYSE:JOB) Q3 2021 Results Conference Call August 17, 2021 10:00 AM ET Company Participants Derek Dewan - Chairman and CEO Kim Thorpe - Chief Financial Officer Conference Call Participants John Basler - Basler Capital Partners Marty Elbaum - Horizon Network Operator Good day everyone and welcome to the GEE Group Incorporated Third Quarter Earnings Call. Today's call is being recorded. At this time I'd like to turn the conference over to Derek Dewan. Please go ahead. Derek Dewan Thank you and ...

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 June 30, 2021 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) (State or other jurisdiction of incorporation or organization) Illinois 36-6097429 (I.R.S. Employer Identifi ...

10-Q 1 job_10q.htm FORM 10-Q 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 March 31, 2021 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) (State or other jurisdiction of incorporation or organization) Illinois 36-609 ...