GEE Group(US:JOB)2024-08-14 20:12Financial Performance - For the three months ended June 30, 2024, consolidated net revenues decreased by $8.715 million, or 23%, to $29.456 million compared to $38.171 million for the same period in 2023[60]. - Professional contract services revenues decreased by $6.035 million, or 20%, while industrial contract services revenues decreased by $776, or 24% compared to the same quarter in 2023[61]. - The company's gross profit margin for the three-month period ended June 30, 2024, was approximately 32.6%, down from 35.8% in the same period of 2023[66]. - Net income (loss) for the three months ended June 30, 2024 was $(19,286), a decrease of $27,162 compared to $7,876 for the same period in 2023[72]. - Consolidated net revenues for the nine months ended June 30, 2024 were $88,137, a decrease of $30,041 or 25% compared to $118,178 for the same period in 2023[73]. - Professional contract services revenue decreased by $20,353 or 22% for the nine months ended June 30, 2024 compared to the same period in 2023[74]. - The combined gross profit margin for the nine-month periods ended June 30, 2024 and 2023 were approximately 31.9% and 34.9%, respectively[77]. Expenses and Impairments - Selling, general and administrative (SG&A) expenses for the three-month period ended June 30, 2024, decreased by $1.550 million, or 13%, compared to the same period in 2023[68]. - The Company's SG&A expenses for the nine months ended June 30, 2024 decreased by $5,451 or 15% compared to the same period in 2023[80]. - The company recognized non-cash pre-tax impairment charges of $20.5 million for the quarter ended June 30, 2024, impacting net loss but not affecting cash position[58]. - A non-cash goodwill impairment charge of $15,285 was taken during the three months ended June 30, 2024, reflecting decreased estimated fair values of reporting units[70]. - The Company recorded a non-cash impairment charge of $5,209 on intangible assets for the three months ended June 30, 2024[69]. Cash Flow and Liquidity - As of June 30, 2024, the Company had cash of $19,595, a decrease of $2,876 from $22,471 as of September 30, 2023[85]. - Working capital decreased to $26,864 from $30,290 as of September 30, 2023, primarily due to cash used for treasury stock purchases and lower business volume[85]. - Cash flows from operating activities for the nine months ended June 30, 2024, were $(1,117), compared to $2,606 for the same period in 2023[86]. - Cash flows used in investing activities were $(58) for the nine months ended June 30, 2024, compared to $(104) in 2023, primarily for property and equipment acquisitions[87]. - Cash flows used in financing activities totaled $(1,701) for the nine months ended June 30, 2024, compared to $(624) in 2023, mainly for treasury stock purchases[86]. - As of June 30, 2024, the Company had $8,725 available for borrowings under its Facility, with no outstanding borrowings[87]. - The Company believes it can generate adequate liquidity to meet its obligations for at least the next twelve months[90]. Strategic Actions and Future Outlook - Management estimates that strategic actions taken will reduce future annualized SG&A expenses by approximately $1.6 million, with additional planned actions expected to reduce SG&A by another $1.4 million[57]. - The company plans to invest between $500 thousand and $1.0 million on systems and software over the next 12 to 18 months to enhance operational efficiency[57]. - The company expects to report a net loss for the full fiscal year ending September 30, 2024, due to ongoing negative economic and labor market conditions[56]. - The Company experienced economic weakness and uncertainties, negatively impacting job orders and qualified candidates available for placements[74]. - The U.S. Staffing Industry has experienced material declines in overall volume and financial performance, with a mixed outlook for recovery[63]. Internal Controls - There were no changes in internal control over financial reporting that materially affected the Company during the nine-month period ended June 30, 2024[92].