Financial Data and Key Metrics Changes - Consolidated revenues for the quarter were $24.5 million and $48.5 million year to date, reflecting a decline of 41% respectively from the comparable prior periods [7][13] - Gross profits were $8.4 million with a gross margin of 34.1% for the quarter, and $16.3 million with a gross margin of 33.6% year to date [8][15] - The net loss from continuing operations was $33 million or $0.30 per diluted share for the quarter, and $33.6 million or $0.31 per diluted share year to date, compared to a net loss of $0.9 million or $0.01 per diluted share for the prior year quarter [8][16] Business Line Data and Key Metrics Changes - Professional contract staffing services revenues were $21.5 million for the quarter and $43 million year to date, down 71% respectively from the comparable prior periods [13][14] - Direct hire placement revenues were $3 million for the quarter and $5.5 million year to date, showing a slight increase compared to the prior six-month period [14] Market Data and Key Metrics Changes - The staffing industry is experiencing a cooling effect due to macroeconomic uncertainties, interest rate volatility, and inflation, leading to layoffs and hiring freezes among clients [4][5] - Many client initiatives requiring additional labor have been put on hold, impacting job orders for both temporary help and direct hire placements [5] Company Strategy and Development Direction - The company is focusing on M&A activities, having completed its first transaction in the quarter and evaluating several others [9][10] - There is a renewed focus on integrating AI technology into recruiting and sales processes to enhance productivity and efficiency [19] - The company aims to restore profitability by the latter part of 2025 or early 2026 through expense reduction and revenue growth [10][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging conditions in the hiring environment and is taking aggressive actions to mitigate losses and prepare for recovery [21] - The company remains optimistic about long-term growth and is positioning itself to capitalize on future demand once market conditions improve [19][21] Other Important Information - The company has paused share repurchases as of December 31, 2023, having repurchased just over 5% of its outstanding shares [11] - The liquidity position remains strong with $18.7 million in cash and no outstanding debt as of March 31, 2025 [18] Q&A Session Summary Question: Can you provide any additional color on the status of the current M&A pipeline? - The pipeline is robust and full, with ongoing evaluations of targets to ensure they have leveled off from the industry's decline [23] Question: Do you have any letters of intent that are outstanding? - Yes, there are nonbinding letters of intent outstanding [23] Question: What is the status of the industrial business and its potential sale? - The sale process is ongoing and has been managed internally, with expectations for a positive outcome soon [26][27] Question: What are your plans regarding share repurchases and M&A? - Both share repurchases and M&A are being considered as part of the capital allocation strategy, with execution dependent on business visibility [29][30] Question: What specific actions are being taken to reduce SG&A expenses? - The company is reviewing performance across businesses and plans to utilize offshore recruiters and AI to enhance efficiency and reduce costs [49]