GEE Group(JOB) - 2025 Q1 - Quarterly Report

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$30,631 thousand in the same period of 2023 [97]. - Professional contract services revenues decreased by $3,568 thousand or 14$493 thousand or 20% compared to the prior year [98]. - Direct hire placement services revenues fell by $544 thousand or approximately 18$(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].