GEE Group(US:JOB)2024-05-15 20:45Financial 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]