Q3 2024 GEE Group Inc Earnings Call Transcript
Key Points
- GEE Group Inc (JOB) has a strong balance sheet with substantial liquidity, including $19.6 million in cash and no outstanding debt.
- The company is actively pursuing M&A opportunities to drive growth and expects to complete accretive transactions within the remainder of this calendar year and in fiscal 2025.
- Management is taking aggressive actions to streamline operations and reduce SG&A expenses by an estimated $3 million annually.
- The company is migrating and integrating legacy systems onto singular cloud-based platforms to achieve economies of scale and improve operational efficiency.
- GEE Group Inc (JOB) is confident in its ability to restore growth and profitability, leveraging its strong cash position and strategic initiatives.
- Consolidated revenues for the quarter and year-to-date were down 23% and 25%, respectively, compared to the prior-year periods.
- The company reported a net loss of $19.3 million for the quarter and $21.8 million year-to-date, primarily due to non-cash impairment charges.
- Adjusted EBITDA was negative $400,000 for the quarter and negative $1.2 million year-to-date, indicating ongoing financial challenges.
- The demand environment for staffing services remains difficult due to macroeconomic uncertainty, interest rate volatility, and inflation.
- Direct hire revenues were down 37% for the quarter and 44% year-to-date, reflecting a significant decline in this high-margin segment.
Hello and welcome to the GEE Group fiscal 2024 third-quarter and year-to-date period, ended June 30, 2024, earnings and update webcast conference call. I'm Derek Dewan, Chairman and Chief Executive Officer of GEE Group. I will be hosting today's call. Joining me as a co-presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer.
Thank you for joining us today. It is our pleasure to share with you GEE Group's results for the fiscal 2024 third-quarter and year-to-date period ended June 30, 2024, and provide you with our outlook for the remainder of the 2024 fiscal year in the foreseeable future.
Some comments Kim and I will make may be considered forward-looking, including predictions, estimates, expectations, and other statements about our future performance. These represent our current judgments of what the future holds and are subject to risks and uncertainties that actual results may differ materially from our forward-looking statements.
These risks and uncertainties are described
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