GEE (JOB) 16 Feb 222022 Q1 Earnings call transcript

Hello, and welcome to the GEE Group Fiscal First Quarter Ended December 31, 2021 Earnings and Update Webcast Conference Call. I'm Derek Dewan the 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 very much for joining us today.

outlook to first you XXXX, quarter provide with pleasure for Group's and our of you fiscal remainder the ended our is share fiscal GEE with results to our It XXXX the year. for December XX,

update and of Kim may make differ holds to risks press are regarding what and and the will call. today's including filings These recent and represent Monday's no forward-looking risks uncertainties the under are be future subject described to harbor. that statements may about future SEC materially our I forward-looking forward-looking release Form performance. forward-looking, statements actual in earnings and safe made our other predictions statement most statements. These comments Some and assume statements, considered our on cautionary estimates our and current the results captions uncertainties We judgments from and XX-Q obligation

talk of margins are measures. will financial about we non-GAAP presentation, Monday's in of accordingly. included amounts, call measures trends percentages this these related our financial earnings related amounts' and rates, for of upon press amounts and for also During presentation growth including based all around some it release, explanations are and this presented items Reconciliations in and rounded amounts and approximations are purposes

of per respectively. one million our website, that our that margin report business profit for $XX.X your income in diluted arguably I'm year of gross quarter XX.X%, today's $XX.X our consolidated happy best was net revenues and remarks of million Center and XXXX prepared fiscal to of outstanding beginning www.geegroup.com. With or For of the ever, our $XX.X behind convenience, call of are gross quarter $X.XX Investor with another available very our us, and share, million and first

and quarter U.S. XXXX June XX, the and revenue. million of September annual compared XX% and quarters since which was particular performance the the eliminating trend elimination harden first third fiscal we overall over adjusted was are $X.X $XXX not X.X% with XX, comparable revenues ending is million and to continued during pre-COVID-XX XXXX steps costs. We're non-GAAP customarily, only because for EBITDA The the towards in in This quarters improvement these XXXX quarter back solid in outperformed final interest represents which pleased ended the prior because and growth levels. in quarter, in XXXX. to prior debt growth labor XX, $XX a Our it million, the in June performing very X completed quarter margin June the achievable in consecutive rate the of markets September. quarters exceeded The strongest quarter each of sequential also part the year results,

to spent outstanding by for dollars HR us. it value our their people delivering from with Our there took clients

As portion debt net quarter This SBA interest, of CARES the XXXX gain reported a extinguishment Act $XX.X improvement obtained from December, compared per aggregate. in and fiscal PPP related resulted substantial the income the share $X.XX for remaining or and first previously in for of diluted and accounted when a larger-than-usual million the with million our in results. we forgiveness $XX.X from loans the

per noncash have with share compared severance pay, goodwill even been accrued diluted gains, of XXXX effects a million quarter $XX.X $X.XX first the a in of for negative fiscal $X.XX would XXXX fiscal However, the first the excluding $X.XX million improvement. $X.X $XXX,XXX in of a charge quarter, and our the impairment EPS

closing share XX.X% period XX, forma diluted annualized the ended $X.XX a will yesterday's pro which when Kim few share, and of trailing diluted for XXXX, items, explain are nonoperating to represents nonrecurring price share. per adjusted $X.XX quarters XX-month a As December remove forma prior pro in moments, similar our return per EPS on is

EBITDA ended Non-GAAP months was million. XX, trailing adjusted Our EBITDA XX $XX.X for XXXX, the fiscal non-GAAP the $X.X adjusted XXXX December was quarter million. first for

turn I'll will and time, elaborate XXXX quarter. the I Before They over very to the results success. I this our turn our amazed Vice on how call it Kim dedicated Officer, Senior by fiscal Thorpe, first over to our Kim, our am are Kim? I say key to to just employees. And and proud want at Financial Chief the who President further for again

and you, Derek, good Thank morning.

was XXXX fourth fiscal the As of double-digit top consecutive consecutive quarter Derek quarter, XX% XXXX $XX.X since revenues growth. and prior quarter pandemic of is growth the fiscal of revenue year consolidated million the This quarters quarter from up the comparable over and said, were first beginning the first line of organic XXXX the quarter. fiscal first the third

Business revenue services up quarter. XX% revenues. over the and were placement the services They quarter. of segment contract million, Our first from XX% $XX.X XX% Professional segment comprised professional also all the for quarter Services first nicely, revenues permanent year fiscal in were Professional up the grew staffing first XX% revenues Professional quarter. or direct of XXXX XXXX fiscal services fiscal total XXXX XX% up hire prior revenues comparable the over

end segment XX% accounted Our IT SNI Access and at markets and Data, Services services Technology for up revenues XX% Consulting our Business of Agile, Professional year-over-year. Paladin were

quarter. the XXXX for office, end revenues accounted and business for services engineering, of finance, remaining revenues year-over-year. XX% health compared up of revenues total million accounting, in services services quarter and professional down were industrial professional other care segment The The quarter representing the business and XX% the the as were other $X markets, first administrative fiscal XX% to

pandemic-like conditions We recurring of interruptions, in respects school experienced variants including which were reminiscent of COVID-XX Omicron early markets some Ohio associated and pandemic. business in and then our a and closings the Delta with the resurgence

and these recover grow to and our weather exit across interruptions, again. U.S., recent As the we months storms conditions winter all light recede and to as we begin we the such to business the winter experienced industrial expect begin

and our total contract of our a comprised segment consolidated Collectively, Services hire XX% the for and XXXX and revenues of direct first quarters and Professional segment fiscal XX% respectively. revenues XXXX, as

combined services professional combined of all XX% and and and quarters XX% viewpoint revenues both light Looking XXXX our is XX%, fiscal revenue direct revenues contract were professional, all which our of consolidated at industrial results, compared of of and XXXX consolidated XX% the were revenues first Direct from with contract hire, for the respectively. respectively. hire

compared in performance in up with the quarter As Derek were revenue outstanding and hire quarter. dollars mentioned, results. our XXXX was first our first first Consolidated as the achieving fiscal fiscal XXXX first direct quarter gross in fiscal gross again XX% $XX.X outstanding XXXX was instrumental million, XXX% margin profit at strong to once quarter

the before. with record revenues margin fiscal associated XXXX first of for several pandemic ratio. segment bonus gross incentive XX% dollars the revenues higher comparable productivity savings company quarter quarter fiscal prior from Staffing first contributed to areas higher and Higher operating quarter. of in quarter. fiscal percentage consolidated were the quarter approximately percentage and the SG&A and this and compared Professional Our severance for approximately consolidated expense to and Underneath first benefit pay that, XXXX both fiscal XXXX compared during to fiscal XX% The first accrued first $XXX,XXX near of up revenue XX% strong expenses improved general of XXXX first achieved compensation quarters production XXXX at with profit continues administrative the and gross were or fiscal XX.X%, were over as XX.X% XXXX year and and quarter respectively. Selling,

the million Derek on quarter first normal eliminated Pro excluding associated first severance was $X.XX the X forma As net negative PPP a XXXX forgiveness a his $X.XX for $XXX,XXX per than in noncash compared X% per quarter $XX.X the in larger achieved the X diluted fiscal with the of charges, The of items an share gains fiscal we income charge was also which goodwill net share to diluted effects position. first per due or improvement. mentioned remarks, is, of our income, with impairment or share remaining XXXX XXXX of included nonrecurring and in quarter, $X.XX these accrued package X that fiscal nonoperating results $X.XX million one quarter, loans.

trailing and effects the share share This forma pro EPS, EPS respectively. June in the items quarters the of $X.XX, XXXX, March per ended December nonoperating common diluted excluding on XXXX been XX, annualized forma XXXX, and/or XX, similar September Our pro ended moment X prior the period of XX, for would diluted $X.XX return results have XX-month and for fiscal $X.XX XX.X% our a per the XX, combined Derek $X.XX fiscal quarters for of ago. when spoke nonrecurring as and XXXX, stock,

a instead. These ended X% is over fiscal lenders offering, was year for months the that from benefit or For EBITDA the our for redirect XX, in fiscal objectives the the participated was were first the objective. installments XXXX, those paying up of first for our senior XX $X.X recall $XXX,XXX that EBITDA, XX% to we interest which and XX, adjusted that of September you of the was adjusted XXXX shareholders prior ended non-GAAP to $XX.X trailing offering Adjusted main quarter. common who EBITDA our measure, million December up million, or Non-GAAP to X.X% XXXX $XXX,XXX quarter, the of follow-on toward XXXX. the are one year

resulted effects activities since last after combined in productivity, higher these the solid from These improvements both savings flow for lower and results cash with costs, operations. reported continue measures COVID-XX of we quarter, cost COVID-XX. onset of and and pandemic in earnings have restructuring trends of and quality As the growth the the operating integration generated earnings before

improvements schedule Again, trends of earnings for GAAP reconciliation believe the company's supplemental sustainable. many we've results GEE be and in net found can the a the the quarters now EBITDA positive adjusted the non-GAAP our we release. to company's press income the With are made, in Group's

To DSO of net conclude, $XX.X XX, receivable million the accounts December outstanding days. XX XX, approximately was of cash our We operating as for from XXXX, the positive December first at days activities sales working capital of $X.X XXXX, XXXX company X.X:X, million and had ratio reported of quarter. flow or implied consolidated current or

position liquidity strong. is very Our

XX, share share book Finally, value our XXXX. net per at $X.XX was per December

to the over back Derek. Now call I'll turn

million of credit you, $XX first availability. on and At of one Thank over fiscal no ever fiscal $XX in borrowings bank ABL XXXX. XXXX the December outstanding million our and with XXXX, is best start in cash quarter bank great for The company facility our the a had XX, Kim.

that of SBA, the greatly Now PPP in both and financial former significantly our fundamentals the current XXXX growth Act This prospects X. CARES our loans been GEE future forgiven and enterprise is Group's have company debt profitable value beyond. of for leverage and our all enhances all by improves

our its into finally, our And we XXXX good beyond. and fiscal have Group fiscal quarter we'd well XXXX, organic strategic like year strong for are quarter of we the remainder have momentum and without results augment thank from of dedication, to has continued fiscal for GEE work the to with employees growth and positioned report things We acquisitions. the this fourth expect professionalism, we the not accomplished XXXX all hard and year. again wonderful which this to good could

you I Thank Now to we'll answer your will Kim very to be question-and-answer Instructions] much, questions. session. and and [Operator happy the proceed

question what The we've done from -- compliments And the buybacks. is have possibility for our So for you company's we Spain. on to you date. your is, on and first the question earned have the share thank performance

You've the you buy company, generating can company. reinvested if be in cash, been use you And which the should purchased. shares another

could consider that it, on connection will an doing of it? capable share issued that acquisition. and Would we consider to treasury shares buybacks. answer is question we spot from the those in with We are be The

the answer offering. was question the you The in an same person. since an XXXX, question it's I'll offering second equity And made

offering out ruled another equity you think before an I acquisition.

We with we'll forward, and you question need correct. And second. at offerings you We equity for do discussed. your follow here as to shareholders agree go The in much. is and be answer we it, don't to very and clearly. We'll through Thank please going this deserve to question. of point that supportive another thank a you,

Hello?

question? Yes. Can the next you take

Sure.

the within requires are the little that tangible organic as Given capital what to it growth operate, not make as the maybe strategy barriers focal M&A? to business

internally with for about question. is only We're to reversed revenue have do XXXX, GEE able industry. we're and established which acquire really acquisitions. and the sort done big and it's up does really take to great we're a companies dictates very ourselves, in in to trending platforms was to wasn't organic organic We've single-digit to solid the position assimilate that it and that very be and integrate to of years integrating, but in million formed achieve towards a able last GEE, we've low look -- acquisitions. strategic we of us will When that. $XXX million steps revenue. and making X growth It growth building the That's efficiently, spent objectives we to a in couple competitive $XX growth, in that money. Today, acquired assimilating, next that them We've be them for now

combination a be will it both. of So

We doing now. will we're and very always focus well on organic growth, organically

So answer. that's my

Thank you, company clearly or The a company, next hits the is question catastrophe the degree. Kim. within unless that undervalued seems industry the large is, it to

And question previous it says, that are the part large a those another during ultimately to the again? The double-digit the is very second crippling person spree, because do the expect financing Given in offer acquisitions can the we buyback of question answer looking is position, there's or or were we're to so correct on things. a up double-digit targets. have a cash interest -- offering. the M&A or that and connection we able begin positioned equity diluted stockholders a with or the in to to at this can now This and that we always growth tender good acquisitions, to strategy rates being the pipeline be shareholder pick rates of do that led

not future. the will rate and how M&A? And to is debt, going like forward, equity to Going finance financing balance be between look the there in higher on take cash to

a going our of and financing is get will not nor in into and do an and with ABL, answer connection going financing financing bank possibly be are to seller The used high-rate we combination to are M&A. equity offering a equity cash, we of low-priced

high-rate we sheet We do what to into have debt. our today the with do capacity need to without balance and getting

stock look and I recovery. good with EBITDA. obviously on question $X.XX what agree on split buying case Most a is are repurchase Why next moves? and compelling, a reverse a can acquisition has the return so the and No price, stock program. that. Board split taking and it a for back The stocks long on at share that's below only solves meaningful for company trading trading was these to obvious the at stock says, the So exactly not to observation, will here the begin Xx match essential certain act cash share said. The a at congrats reverse investors and

that something $X below if you're So staying your with price reverse split is contemplate you stock or otherwise.

New on rule, get solid a about and They does so is, I buck a buck. and the the that does have Stock you the York and questions to on speak, American, New your the Exchange a your we're rule and at is the look of as capitalization hard like there rock. One on breaking performance, from we're fast to have the that York break worry not the exchanges? And NASDAQ

So being I that don't driver. anticipate the

a stock make However, a reverse can't buy certain threshold price. can split certain stock investors below sense institutional when a

say personally table company buyback and $XXX And a good was it and is is buybacks. stock considered nothing removing I to a that has have extensively. off to stock million it's done be and predecessor neither would I in in I something my dilution the discussed EPS. So running, Board that very proved the

all definitely and can on table previously. execute discussed for So discussed our are these and frequently we've things us as the look Board, to with you

buying next insider window as small. mentioned, The question, is you

It's settle or with X material insiders. window? of aware buying days, in period, the some of insider information that weeks is usually blackout kind reason nonpublic when we're of after lifts so that other there's the that's So unless our earnings next the couple next a as

And mentioned. targets? billion accompanying by targets the share remarks, as still in earning XXXX the what previous this, revenue along owners it I the are mentioned personally to target Is with $X revenue In go outlook? the

a approaching Without however with on to now, getting into increase money we lot significant an revenue connection spend look top our have not as you because digits margin, will will too at much increase, leverage detail, have is it, of margin/EBITDA operating -- and of right we SG&A will the line. it in in double operating

super done growth get result $X the a or a this that. it clearly believe before series size I But there develop to set business time most We've always or acquisition It's our It that profitability matters billion, to is internal need and people the and can. infrastructure not in augment and our growth. to We scalable that would targets a to it. over we exceeded leverage to the of to acquisitions unusual. high. I So achieved larger utilize

Next question on the says, job great turnaround. leading

to to them as expect why compare for Excluding on Kim, How to up expect Is full don't you it's year it's XX.X% progresses? it -- year XXXX? So it's up? tell the don't you why and severance, SG&A the up Do SG&A but some, why would the some. SG&A, you comment leverage expected it the was to continue? you

so strong, more particular And a rata ramp-up pro the $X.X charge, in we Yes. about to because bonuses a was SG&A and comp. was incentive this then incentive not, quarter quarter also quarter. opposed impact the that's a this took comp. X% position. growth almost for it believe bonuses paid September up And of and revenue both the a quarter, or because step-up billion smooth We as we in charge to and eliminate had in

up every So running back was quarter. XX%. XXXX, in -- those things some XX%, from But in let XX% in cases, say, two combined And to above SG&A and pop SG&A XXXX caused well to me when XX%. XX%

where continue We're is the below now. to keep we doing it will -- to SG&A manage this

our double -- is digit of a double get EBITDA digit margin. one to mentioned, Derek to As EBITDA goals

sure more. always as grow, when done then But -- most down we've -- SG&A a out percentage fairly dollars. and again, our that we even think I'll we that will will be So tell come Derek of come I good said, making the number will of yes, the even -- get and that you, job down

Thank refers next you, to acquisitions. strategic question Kim. The

are them share, but strategic And Just waiting pipeline. accretive which do also sheet. PPP occurred to was position to the we the ourselves sure our We make forgiven, and earnings a tried our only in acquisitions, loans were we can to make so you how to the make have get that balance our per of in keep strength acquisitions that to December. close sheet acquisition? What we we've not balance

have cash, could appropriate, So now an connection we and we have that have in with issue unused acquisition. as equity we facility we an credit

stock have We buyback potential too.

say be would would of I all near occur And those that in the things combo of likely more term. to

make So is out they we're coming acquisitions normalized the which with performed numbers. that fastest to during related we otherwise. staffing see technology, The in are the to and information profitability key exclusively of as want growth almost and sure acquisitions the want sector the era, they're strategic. have is well, to highest has We COVID. COVID to how see We at looking

landscape So our good. charged We're looks up.

the with arsenal of that and I everything We we'll cash going growth call operating also can else regarding wanted to acquisitions what get value, forward. move buybacks improvement in flow, the fund and so net internal EPS, EBITDA, machine we are income, and shareholder

and the and that ties things involved one There's commissions many on is costs, performance there nature and headcount variable of ones, the to internally. the volume. of and our basically One earlier account management recruiting just and expenses salaries into of given and next question variable they're tied nature like the of

individual recruiting of and sales terms the in of the in company the the high either business. each what on or very produce on able end is to end they're productivity Our

we And scale? So can do we expand? have

is the your The answer keep and scale tight it to I your think costs hit and earlier, infrastructure is I goal up. to

that but recruiters. account internally, headcount production headcount. is headcount administrative The we're recruiters virtual recruiting, or overhead adding are managers, adding headcount, remote are not and We

Our demand the is off charts.

most orders what high. and many we first champagne they have call issue, the So are can. our as of a you And fill spreads we're orders as filling course, profitable

high perm, high, is particularly, our without division obviously, in even margin's Our gross or segment. gross the margin professional

point for scale forward? we versus Yes, revenue organic of and SG&A can revenue will as What volume percentage So portion we -- at drop going is expands. What great do growth when some pricing? expect a our rate you should hold question.

That's a really good question.

the part So second I'll answer first.

As way workers, improve will we per of up raise gross what spread mark hour. the dollar payroll, wages we that on or we the because profit call for contract

the is from is there So pricing units. on our predominant a business situation, in standpoint. yes, more right which that customer now expansion margin going build specific pretty And in we

good digits fast organic target, What managers." growth adding personnel, can. is single you To the adding more recruiters expect? really -- So horsepower, us I what's production account as "people, grow do double-digit we going say would and And forward a rate that's initially. organically as higher limiting we've been them is

our is other internal retention The is that's very company our that longevity, staff notable tenure thing our rate outstanding. of and their with

we're need rate to So expected you it, of tax next will and everything for one do are. Kim, doing just and the income operating offset our we perspective? taxable to do we more have asked right. net from We about a cash losses XXXX. And

a low that for NOLs to The Yes. answer have year. do that we expect tax offset is help rate, we and do effective this to

Okay. in Great. negative, Do want favorable neutral to working that? you or XXXX? capital expect you take flow to cash related Do

when we of interest. pure a EBITDA now. cash our our say to good now -- mean for was now to That's Yes. going not cash we EBITDA, chunk I a Prior is Right have I fairly because flow now, big interest flow. right EBITDA proxy happening. And that, no

redirected that So is now cash inward.

to -- that's year. gauging at look for our flow a we're way good cash the pretty So

cover that and good Okay. Great. Kim, fiscal XXXX? growth revenue those cash Should What revenue and We some hit are as we points, flow? expect operating growth why growth, EBITDA of well? free expectations leverage, in don't but for earnings exceeding we

if then up and is what call portion. up of people, of which comp, -- in selling And fixed. we call down our go field. would rest base. other you portion salary -- the what will our to all of incentives break variable if hire funds amount, rata those that costs is as I than our are further, would sales of X/X at as step variable other people And SG&A the course, really salaries. X/X kind SG&A pro But -- that the about G&A our And the is more and pure look the increase. of expense, be bonuses, will XX% it But we Yes. tend I more of of Those about

I So remain X/X would that expect to relatively stable.

So could math, the follow saying then somewhere in XX% fiscal growth at all we're were could if now, X% XXXX. of we you scale that -- right that for scale or down we're XX% where down the looking with we're level or that X%

Okay. this Kim. can Derek it and of EBITDA The great next possible XXXX? quarter, for into growth be question then XX% a revenue says, and comps? for harder, Would market get think We range it, us to ties for It the And we sense work year-over-year with XXXX? tight. given year, the labor can you growth expectations this that. gets both remains help Should but on

company, And and growth there's growth. there's so is industry that's focus forth in segments downturn, particularly layered you're great. that huge our with a hiring we're a market in, great, then growth business IT. in recovery some off believe we're our the is of segments conducive So on on labor which because I is best clearly, the coming when and top that, The to

grow significantly. labor tight tight labor get but statement. It's we comps harder can't market. it a true a market, is a XX% doesn't mean That in So that on

think add lower push to a been in XX%. would and a Kim, that in normalized company, tend historically and augmented And double-digit, you But it? that growth want do it do anything for over with to do be target expectation predecessor a able could any it. great organic you is we growth are a business. I an to would to more to acquisition, XX% well So I've positioned

some our would fiscal that overshot first of of last I and all, the pandemic There's significantly. $XXX Yes. part revenue. year, coming year just growth We mark thought $XXX up year still early XXXX the of here, $XXX in out would the now. say that, of into the almost right We going ended about we've million million. million catch-up at economy happening we finish or

As because because in country big opportunity. out market having labor But somewhat is normally had our is quarter still we December still and quarter. have unusual the a our June we're more remarks, employment active we as this all it's pointed are September just again, quarters in -- to the as hardening,

little quarter number we're back March holidays got because on the lower and typically -- is the and bit March of quarter Conservatively, going like. a the a there's workdays pull it's to and weather

above we're we're conservatively, little above we think expecting But not XXXX we'll So clearly, will drop March -- be up we'll bit. a -- we end think and XXXX.

how of I digit it. kind that's unreasonable. So at not double we're single digit, is looking low And again, think high

next The question is you... do

Organic. Yes, sorry.

U.S.? inflation next anticipate be will the as The increased, the across inflation to passed labor question, you do has premium on clients as charges increased have

it yes. it percentage. margin gross through, billed that the per the does to gross is previously, and mentioned able profit pass We've increase and been answer I hour dollar the

were option from playbook. still Why buybacks of the have conference have call. that still we the Share occurred I triple playbook? speak, think before eliminated It's the supposed in part And get last our one We football executed option. our play, our be called play to it for or we play kept triple in so loans PPP to to was hesitancies the December. of our forgiven, the which

are that there, as And overtime. age, And have playbook a guess. I've on is questions But things focus we still of wanted can safely well. I the every good to of I we time now these called it's say old execute virtue also, quarter to patience and is the It's another place. I to So results learned all that see think day.

right now going but I'm take to the playbook, to goal to you tell out and the going not yes, of So touchdowns option. play win. score which is our we're

at reasonable our point expectation So I in think it's a it well. we have some And that arsenal. as

comment. I sense EBITDA, at earnings the That share, additional from institutional to can accretion you use to Unless Excellent there discussion, why great show and provide When institutional shareholders as with can coverage priced earnings a depressed for the road no higher insight be acquisitions? to it would on performance Xx and Agree a multiple. stock further analysts, market consider we be investors some equity trading further using the per point. the at analyst further dilute previous makes levels. would equity company own at investment? see to the target would recall the to your progress would gaining of as

work We've hard few We done conference last -- since the at very investor call. that. a conferences

now them anticipate giving analyst in we'll our conference company. up However, the can coverage be Sidoti pick appropriate March. and we also And increasing. on information coverage forward that with on move in working analysts they involved We're

a that expectation? is So reasonable Yes.

subsequent roadshows. we think them our in equity is did, size we've that to to target But of that awareness and the are the think get done what done term. our equity institutional have substantive increase I important with are but longer subsequent and that is I here investors thing we We -- positions so offering can

key So that's stock to improved the performance. price

results course, Of matter, delivering and we're those.

conferences happen in is of which yes, the So all and will and at progress. in shows, road community exposure analyst are critical and

That's correspond about timing So and and at that it's we're the reasonable. institutional with that putting the of we'll coverage out be will conference the probably an presenting as some well. analyst announcement participating expectation, and

to Regarding organic further provide additional some things on additional products you those happening. selling clients? clients are or new onboarding of of insight can growth, of current All

counted do well. and we're able clients product to what in we what mix offer we've we but terms changed, has Our on of what also do

want IT. have than So by trying lines, clients to we do capable service dilute we're to of added, delivering. offerings don't demand, we more select But based in particularly market on our to

people we when months. also We staff have hundreds work. for able several a we're of And up get big to project, project-type

One to provide participate were we things like response involved of centers to of hired those resources of kind COVID amelioration in that projects the did staff we COVID the for that. and

we up. in So move annuitized marshal head both to our are able work, resources our and and contract quickly get count

are So that. yes, we doing

by industry, system, would expect have far state-of-the-art, I The technology, the industry. the this we technology you productivity have lot spread? Throughout is the Tracking of bill heard best companies the our front the investing competition increase Applicant is industry, on given in office the in a do more System across

Some have not. of do it, competitors many smaller the competitors larger

Recruiter, candidate of are also to Indeed, what available find -- all to people, majority the we tools I a is for our market the when of Monster, critical. and realm Dice speed use like We job IT, you boards CareerBuilder, call are those LinkedIn

competition very, the we bill person using And astute So right more you Not expect very can in I the pricing. get spread? do technology. are really. Today, more on it's than the

pipeline do question compared own That of acquisition IT with your the multiples How your question. valuation prior to dovetails in Xx?

Xx IT, Xx valued If reasonable Xx is target at company, clearly range, you Xx. you're a a and maybe pay for

that You don't can seller basically cash, from notes, want that. structurally, works. use think again, equity get do to it? And you can, I you to accretion deal And

do we earned. we growth as an for earn-out, growth pay that sometimes the so And the see and

with agree the observation So I there.

satisfactorily time time Any towards those questions. other it. questions? have for need are questions. some have you Hopefully, we We the but getting clearly more. answered have if end, we've We're -- excellent These

a about end toward speak few of things to the call. I conference since we're So want this getting

The at strength point. is this company of the phenomenal

very and in labor We good environment that's have for great tenure difficult leadership. with the competitive a in really leadership field

not at from producing. either top I a our or And we So the and down, We're don't offices they're call job all. have losers. done are, We fabulous personnel particular gone office any down. much have restaffed what field those struggling button in if are or

few we've that. many cases it. offices on some markets. So costs. virtual easier We to like to talent in That's lease a It's gone trend. a do get People attract rid in of

have rotational our We shifts offices. in

a have flexibility lot our for it's of dividends. paid And We people.

was COVID during was able worked, how people do to remotely we work technology. have of to the our really what in reaction performed I Teams. We how fabulous with we terms our also were a pandemic hard think How

Office have We XXX.

have state-of-the-art and so We forth. tools people remote offices in too. and work the of Notebooks There's lot a can

permanently design and So so home for our as depending we necessary our particular status market. can teams upon they from work their was support or what that

this in adding to every grow. how And that's you business we're talent And day grow.

to orders market, capacity your increase only all get maximum and we from and do is have continue but are fill existing the You personnel, horsepower so. way job in recruiting your in particular, to have and to really to the this

further... this there's So no at

one want look. you we more take a to have if question, Derek,

just Has it in? come

Yes.

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