GEE (JOB) 17 May 222022 Q2 Earnings call transcript

Good morning, everyone. Thank you for joining the GEE Group Conference Call regarding our Fiscal Second Quarter. There is a slide presentation on the web. It's also on our website. And in this Investor Presentation, you can click through the slides if you like.

those to follow-up those of site questions and can going we today, this for not have you have you will at submit doing are that. go to slides over but presentation, logged We in as the electronically the end Today, to fiscal cover second half and first we're March XX, going ended XXXX. our quarter I'm Group. Derek Dewan, Chief Executive Officer and Chairman of GEE call. be hosting today's will I Senior me And Co-Presenter Vice our President the Thorpe, Officer. and as joining Kim Financial Chief is all for joining you today. Thank us share to fiscal and half and pleasure It's of GEE the fiscal ended outlook you XXXX, our our results for our year. half with XXXX Group's XX, the with second first second provide XXXX for quarter you March

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

Reconciliations press financial During these included talk earnings this also presentation, the and release. explanations of measures. will some non-GAAP about are in we measures

rounded trends financial rounded of related Our presentation upon margins including amounts and amounts. are rates, amounts, or based growth and

and approximations and this items of percentages presented accordingly. call purposes For related amounts, are all

million, up that million, in to and diluted profits website XX.X% the our XXXX margins for I'm diluted revenues remarks prepared And respectively. our $XX.X XX% call of beginning we per net gross business quarter $XX.X gross year $X.XX half Investor With outstanding share, first $XX.X report achieved the for share that margin million behind and $XX.X with of and Center respectively. happy or $XX.X were million results million million the us, and and our respectively. available fiscal Consolidated was per are of XX%, and $X.X very XX.X% www.geegroup.com. income and convenience, your second For gross or $X.XX today's and were

XXXX was non-GAAP EBITDA fiscal half for $X.X the EBITDA was adjusted second revenue. quarter adjusted or EBITDA for the year. Our and prior-year for which million the million, margin Non-GAAP $X.X XXXX first million represents fiscal X% adjusted fiscal XX% up a $X.X the quarter comparable XXXX year of over or up the our half first same the XX% $X.X of fiscal million, to for

Kim? This Kim service. day this Before XXXX our And elaborate how every I very and call just will year-to-date ensure it hard made am success. second people. by for by our our is I the CFO, who over They very outstanding our talented to results results. Thorpe, on clients our work say to to extremely over fiscal at get the further the want the one effort I to and Kim, proud like dedicated time, to that best turn keys turn of quarter the I'd to

everyone. Derek, you, good and Thank morning,

professional and period. million over $XX.X contributed demand XXXX quarter are Contract and or placement million economy six $XX continued for XX% and or workforce million hire for pre-COVID-XX periods consists periods XX, ended mentioned, all the Revenues $X.X contract comprise in XX% for revenues million of $XX recovery revenue March $XX.X and staffing Direct three were respectively. and both fiscal XXXX, our Professional and our three toward These March million million XX, our second for month of XXXX, and comparable markets March XX, periods for and and $XX.X revenue. and of ended respectively. periods $XX.X $XX.X six XX% conditions. our as on primarily $X.X direct combination XX% the six professional three As increases XXXX up increased of the both COVID-XX of the fiscal respectively, total XX%, month for revenues. or from lessened segment contract our which effects the services Staffing negative Services services six-month and respectively. XX% placement X% staffing revenues have month XXXX, $X.X revenues periods paths million XX% the due million direct three and and revenues services of services of to and ended Derek the staffing and $XX.X of increased services XX, revenue were March up XX% XX% U.S. and contributed were And hire, of ended million, our business and the six represented the They Contract XX, and million, the March million month $X.X million total and segment, XX% XXXX. ended XXXX

and Professional fiscal the Services Our segment up XXXX from were period. revenues XX% Staffing XX% comparable

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

and were up respectively, and the and accounting professional Professional staffing Service month service and periods for were Industrial end million three $X.X $X.X million million million revenues year-over-year. other other $X.X XX% the March ended $X six for ended XX% The and office, services month our compared March XX, to six and remaining for markets, engineering, administrative, XXXX, accounted care and of XX, three revenues Business XXXX. periods finance, health the

in $XX.X Omicron three associated early in XX, or pandemic. were of periods experience including million periods which and the six XXXX. fiscal substantially the school variants conditions Ohio markets, Consolidated gross in some interruptions, for and up from and to and comparable million or XXXX, month and ended business continue some were closings XX.X% margins XX.X% some profits and $XX.X Delta March both pre-COVID respects our reminiscent with pandemic-related We the

staffing compared the for direct contract three these XXXX, same periods are XXXX. excluding period for the in gross month XX.X% services were professional ended to services margins, XX, March placement Our XX.X%

ended periods four Our consolidated and resulting of a XX%. a settlement the higher XX, combined largely with matter XXXX, above XXXX. increase period. the margins XXXX, mixes is ratio for charge overall of XXX% periods to taken the been in consecutive six and more and quarter December and $XXX,XXX respectively, have The for March for the gross hire gross for for and fiscal March XX% with direct XX, XX% second gross were XX, or general quarter of three compared the accounted the half for revenues, consolidated legal year-to-date quarter expense six XX% half expenses quarters $XXX,XXX increase Selling, the March month margin of and month increases ended during improvement of ending XXXX. XX% company's These due the margins. two XX, SG&A which for the in have than first and The more revenues severance our for administrative in in expense items all combination accounted month ended than three last approximately

with incrementally significant to contributor and compensation Another revenue are incentive SG&A ratios higher increases associated significant our bonus in growth.

a and in month for achieved diluted the $X.XX prior-period. Derek share losses ended of $XX.X share income net As three as March in per periods or his mentioned net and six remarks, or with compared XXXX, $X.X XX, we million the $X.XX million

fiscal quarter, $X.X comparable was diluted diluted XXXX adjusted prior Non-GAAP pro million per release, or up fiscal EBITDA $X.X nonrecurring our the million million measure, for fiscal in the Our $X.XX and for was for EBITDA, effects diluted million, share year million, $X or $X.X or three forma first million or respectively, our outlined six share, from $X.X year $X.XX of adjusted second half periods XX, the non-GAAP EBITDA press a first XXXX. first up EPS, per and/or which our the income half month XXXX the ended Adjusted XX% million is our and March $X.X nearly XX% which year. of net were non-GAAP adjusted non-operating for quarter. of or the are $X.X excluding items, earnings over XXXX and

of in the As found million, at positive these ratio does the or we severity GEE quarter sales we've commented A XX, to million of X.X:X. reconciliation EBITDA quarters $X.X of in measures activities non-GAAP And prior accounts at press again, the and lessen of the of reported non-GAAP and our our cash DSO supplemental quarter capital March sustainable. spike Consolidated net discussed $X be believe $XX.X assuming in company's adjusted or are fiscal second reconciliations COVID-XX and flow GAAP to continued for of the current release. and receivable outstanding, results implied positive other and Group's days types free year-to-date second cash schedules XXXX operating XX XXXX earnings days. respectively. and conclude, million. their and was income end XXXX, We can in GAAP today counterparts million To $X.X approximately $X.X were was flow working fiscal million non-GAAP net not from

position liquidity Our is strong.

outstanding no We have debt.

value per share share per March book at net Our was XX, $X.XX XXXX.

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

bank of quarter fiscal million good upon. XXXX second great March deleveraged first company $XX XX, availability Kim. and have $XX year quarter in facility. we now of build had our third the ABL was company. cash Thank to We over Group's XXXX XXXX the under in consecutive performance The you, bank half since our fiscal of a At fully million GEE the

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

that so we beyond. began XXXX. XXXX, of into for continued sustaining the We far events, XXXX and continued unforeseen our recession the and and in remainder have or quarters Absent that been fiscal results fiscal has the fourth onset momentum of of year fiscal third good successful anticipate during

professionalism, pause we and not take we and have for good wish which that without thank all this Before work could to your employees wonderful we we this their year hard quarter accomplished things the so dedication, to again done our far. have questions,

Now I your happy answer questions. would be to and Kim

If rejoin follow-up to back additional as Please there's for ask time, you just queue we'll come one for questions. question and the needed. the

now. so We will have will them submit And start electronically. several, we we

the a looks there rate, Kim, XX%? below company? that would cash any company able tax deductions Are might tax the contract realistic to statutory comment income. about to like you take tax the that question more rate The is a some so this Could rate. in regard first below has and to real information tax we rate some statutory at is the least The been explanation rate get behind far question for get on workers related the rate the maybe cash what range operating push please? on

happy I'd be to.

Our struggle that the tax been over fairly along nil, early rate able to those bit you years currently are NOL because silver primarily near might went that significant. carryforwards accumulate some a with lining recent the even we call NOL And have of is had days, still carryforwards. we in the that little

in range. they're the fact, million In $XX

And income so to loss we carryovers. have operating been taxable net applying by able offset

If our it is raw. think the of -- you again, period, I XX-month is The and very this at $XX example, million. trailing in EBITDA has way been for for terms look

still NOLs offset So us, income. more taxable or which to continue we're -- have to we about available year-and-a-half still a will of

that, So line tax would fall expect -- the after back in with our rate and to normal. what's then we

with to the for that our deduct advantage workforce, might look special tax to As benefits of And course, we'll of deductions kind far XXX% come of always able course, of that. laborers. spend and we're hire of everything take to as any contract special along we go any

Okay. Thank you, Kim.

welcome. You're

XX% overpay which The is to believe company to financed acquisitions over was able the the to million, management use of is question recent to versus $XX this interest stated of projects is of presentation? stock, question $XX to are level we especially number because and projects. some price and your buybacks Kim appropriate are value. when is or we and great is as like back Effectively, you're know it of seemingly willing somewhere is with the run greater company acquisitions cash. value around million not a the roughly that for, value-creating the stock regarding that of you We the X.Xx high did. at its Thorpe believe position simplest why operations we'd answer this guys at acquisitions a the do XX% a buybacks EBITDA. cash Alternatively, don't that share buy acquisitions that represents at you better than particularly a undervalued Share attractive trading an given of as destroy next The shareholder cost the return is capital these; to undervalued

If it neutral makes earnings, or you some appropriately right to those could accretive and have that price sense.

definitely We balance share $XX particularly more consideration. in at this our under However, in actually said with buybacks, are than credit have facility. cash We've unused point, sheet point this million at that before. our

point in me no or last out XXth, failed CARES Act December, have to something should the let forgiven that of buyback share However, that the many the provided -- PPP PPP last PP realize. year one within you were loans had, the around that we loans loans. mid-December repayment occur of of forgiveness The

will bit appropriately, That's at per And CARES million we we So choose question we cash back Act XX, cash buy soonest can do that address was many have fund we other and was would that December can much a point. we little how nuance to quarter later year in $X if We're that people this the generating be do capital. But so, have not the XXXX. you need shares, the the do great do does And a realized. that over a in flow. that quarter? working

up credit So do borrow can unused, moves want And to we facility and that? depending well. add approximately $XX to and now, Kim, quite it's anything working receivable. million you upon our accounts is that

that been. the want was of to of stock just think we I past well move Derek, that to explained. to has trying everyone really the I sort where reinforce compulsion understand

good we make we'll the it's it as acquisitions. fuzzy, make Our The that That's lot business. This here. job at can we to I whole challenging, that team and a time, profitable acquisition company in And Derek tell soon I the acquisition we right now Group see at The not long the to and and this story was more assured was run believe the company still led a our It a SNI as XX% And Board was it metric, that's the way have did. got people the get there. but best for has but value. you case MPS than execution as worth point or strong experience XX% is to haul can. acquiring I we wasn't companies. the the and little when outset. case at rest to that and of

tuned. stay So just

of Are not the with the but company Kim. And Thank ceilings there high interest so that dovetails lay setting any would a happen I again? that. for have. value you, something the does debt shareholders. leverage And next to shareholders might attractive, kind comment with it's is into question similar how burdened An company concerns completely. acquisition rate let be any got that XX% rate, that create to And me agree interest at unlikely

not are We this to going company. overleverage

again. out going we that not We into got never situation debt. get that of are interest and to have And situation, we will high rate

the value to question times. at discussion our terms we'll Do in share believe several address and the that, shares debt dealt want to tremendous We do you appropriate Kim, are that with we've can take about anything time, you a --? with bank. buybacks. Kim, and to high-rate first that the add So had of

say Yes. I'll one just word, ditto.

very much. you Thank

many by Any also Investor and assignment we deal bill access talk so placements our of that's could and we thoughts individual Another as about on and helpful and vertical, would that with bill these regarding of adding forth. rates, Any are metrics company on number be some such if helpful. on have just Presentation be the to, such reporting, how as report would temps question these website, you forth. do rates it it's some so metrics

is discussion know. we're discuss want business So if it. but there. more And that ebbs information talk as some with obviously, a that, follow-up let us target, you happy It's further and that moving flows, about to and

Turning the next see -- here. let's question

that large likely leverage use that had Is XXXX. both, that I a you combination acquisitions facility, and/or Another is And rate would buyback tuck-in we smaller high couple stock more are that financing, seller at our smaller plus a we what's about use interest ABL shorten are to essentially question credit I'll attractive goal hundred significant LIBOR and your size in tell if acquisitions to points. highly acquisition billion us our So or that. ambitious not goal? debt. you thinking $X cash a profitable What's of if which management an be necessary, can do of that? was or and should priced basis of

about large I a So concerned near be acquisition term. in the wouldn't too

with we're our of and But And growing anything some, IT entertaining enhance and which for limited smaller not acquisition to we're have others, other us, for growth say, this is metric way, to by segment. an tuck-in to the anything Kim, profitably, before that? would I increase that up too. a to than to movements target would like our aggressive nicely again, revenue. target you something the make to want -- a initially what vertical, course, by we're profitability And achievable not fast disturb moment. in are but that Our that's acquisitions. and going the do come growth sense be would for company cybersecurity, growth that's we an at add do example, Obviously, to

five Yes, within our literally remind did first months, I to acquisitions XX would start we four just everybody of finish. that

wouldn't that question does you open buyers. management, done a have several split a have up can trade commented. different about the Or concern some next why haven't the on that at seems Any that, reverse is, been The and York view a hard of shareholders this? said, well that they There's the up public the and fast the fast. this? you would amongst universe a profitable also maybe it tell Great. in reverse under on $X And for all management days thing if exchange of you and Okay. shareholders like above senior then have the this is brought at split. The you point, bulk reasons is do has I discussion XX directors company they York the exchange, And a an rule it. the capitalized. certain look Stock level American, on at they with a looks What a that not requirement United price. stock have it's NASDAQ. New at Exchange New if that to New there's York. and is is States, rule discretionary hard are, whether trade our We're the That

institutions to So deal Exchange of that, thus allowing up that and example. alter us far, necessary. the as not But by may to door with been asked and the for reverse split concept buy a York grow Stock do can't we under for $X our that shareholders have anything business and New stocks they're the larger to open

to higher we we to at can our level. up get degree earn way to However, think this a some point,

considered had on likelihood The more shareholders that commented been a reverse tell buybacks not. discussions others beneficial we've a have of on is reverse had. being There's and stock advisers it's or considered? than tell split, have on situations split us and those is answer it's split. some that a ways us reverse So several being the both stock But buyback

to this. regarding the action And a this point, what open-minded rule either there's as hard way and at observant is. of very course very fast no best we're So

balance forward, had open, much that we has management or have buying Management that so been we've lot of costs buys is the investments lot has the some We a stock assets. hard -- question Another Management normal To of going up when through hard had, a does SG&A? and open? in owns the things equity more they would our regarding the so shares. is the on company participate what big costs inquire show say, assets or windows SG&A on much can in had not stock. that SG&A going company that bit have what on Essentially, makes to better window But where that? variable to question recurring a growth like The buy. sheet? and will SG&A investor percentage the tied and of returns, little personally And on the continue And don't what's to is even whether regarding company SG&A. directors is hopefully, not is how are I that able address placements going of so. And what been several I of have Question variable. can much like and the be. us Kim, we're the a commissions you to normal

that at you core of it's both compensation our I that represents two-thirds me, force, that About think, about base variable X, of compensation company of goes look -- I'm yes, XXX S, -- employees, that SG&A really Sure. are Slide number XXX selling, the is our compensation. almost X you has of includes number and about field and if which excuse sorry, individuals. incentive the two-thirds which and About to two-thirds -- or that or that profile half incentive -- represents our

all boil half whole between fixed. if SG&A, you if the of the variable, XX% -- So you normalized half and that about XX% and other purely is you take somewhat is down, can that

in labor particular, recently, -- competitive very a very in we've Although been market.

we've quite has have a and bit, been attractive, we which only made salaries commission also but incentive plans more base through. not entire raised industry So our the

our a of of that a that step thing. that's So part but percentage went up a up, big made sort why

So going are don't that that now we at set pace. where we see

to that this the begin in year. percentage half down see of come should you the including in future, second So

Okay. Thank you, Kim.

the horizon with presume level Worldwide partnership is with to but Hudson merger? any well-capitalized it company if would familiar It's Another value It's nothing am I earnings. to Monster this from is Hudson a Hudson, that's revenue shareholders. great question a to off I adds I company. an and match tremendous reference for the that the doing actually, on used in the question. talks it our staffing back table much way Is okay. at or 'XXs, is very job, a and to the it is right TMP or IPO-ed a same own in say Hudson other that now, company. not Hudson. we're

on, Okay. let's to to want Okay. can Kim, do trends? discuss Other Hold bill -- you handle go that? rate questions? question you

quite supply demands moved have rates the labor. XX workforce bill the and bit last the side, over Yes, a up of function again, months, a the of

Fortunately, our well works burden business pay model start environment and we our add that. spread that in basically a rate a pay plus rate because to contractors to the with

the overall of able we're status because -- with we've the So supply, and and of the that. of workforce been high keep excess demand up in to able

last So rates gone keep don't bill the months. at up have it over pace? growing double-digit XX that so. Will think I

yet think Demand of to up not now. us, the situation some to more volatile the take advantage workforce beginning them by whole up move horizon. because all growth and opportunities turn, more And the good able conditions, these way, been are exceeds supply. on but has That's we've still very to I they still there's will stabilized. for

burden the rates. on that markup that payroll Kim we on spreads to business. overall will And payroll into we've profit -- of spreads, question. as Kim after have in a costs. cost our there's dollar the price. hour we And virtually segment -- Thanks, was bill leads Typically, by burden our comment increased use per burden And the that spreads. I gross saying, increased say next payroll every Please mean

have spreads, our on the seeing spreads indicative we but are gross And better up, course, margin. hour gross and that's our up, gross profit Of too, our gone per profit dollar faster. gone and have pay rates

and vertical. and particularly also the high see, which is can is demand at you It's the placements. probably is now The direct is next see. So highest and by also spreads, verticals, And and look question permanent demand finance for perm we've boosted or all very is for finance accounting hot is got segment placements, by in high. that IT. accounting placements demand direct let's But very, very right hires, in high. trends in very, The hire the

labor permanent in COVID a across see board. too. bodes great for to labor question demand and personnel in placements. the also great demand we The is the the out So coming And force, you and of the very and well had continue we've contract that's technology, And next disruptions staffing know, it some economy of and for as the question. is contract and investments high,

So prevalent our remotely help the rising that has people. enhanced more have we our can technology during increased internally products COVID, meet other We been. We've able and investments of we've Teams and demand. to than with our remotely pretty work also should the have, and be geared we some we're that up work from it in headcount and away that on Microsoft made And the to much several notice. become to people moment's office demonstrated and a

so. rent So we'll And continue have do have our on virtual we costs gone of several offices, we've reduced our to when leases come up, there. so

be workers, virtual the landscape is hires good The that question type and works pretty stock expertise now permanent anything well able and special acquisition And to next a that those to workers, also with in looks quite like? what's we're looking for, along of with or that. buyback the with particularly remote tuck-in positioned of look we're things. some of do It acquisition and for type have recruiting. We experienced IT, like cyber the

-- So is over answer going are acquisition say the leverage, question a the but get into no. you regarding, that would I big to

the to charge-off can debt to we're on we it, Question had our it is sheet do balance do might you want comment regarding with one the have bad expense. do EBITDA? we Kim, So well-positioned think lost and quite I nicely. we him.

I'm committed that. sorry, I had mute I'm sorry, I on.

but if to the it's is question happy comment Well, I on necessary, was --

as back it's don't I think was, adjustment. not added think it I an EBITDA

was used I not was a to think it actually added back. it variance, but explain

-- isolated, And reserved it but we had was for

to EBITDA. it adjusted It add it didn't but back we was isolated didn't we -- add

yes, EBITDA. a industrial adjusted bankrupt mean, bad be they to client It might so the of course I segment. was normal in thing, but it's But someone onetime that a shouldn't in occur the business, argue debts

it's And not.

pretty those on cash use Right. we Any free hit good. flow? of thoughts think I

and you things, are back the being other able know, And We we're business people appropriate, to to able acquisitions. in do also into particularly if as investments make technology. or buybacks

course, going now do accumulating "What the We year and if are tuck-in you're gave decide no concern the and some growth we great to sure and Should to high which sequential that a revenues. Seasonality bank, see several earnings we that to as comment ability can someone quite waiting big have be able to are at We not stock very, in appropriately do of to want quarters? in frankly, want question. mentioned. say, buyback we're opportunities? that, gulp do for?" look get been finding in the guidance per to the grow GEE a rate, expect selective to going that That's we cash. $XX was you acquisitions, the on have ones Of interest make sometime which later on we very do further position we now. with realm them hard our very week, we M&A to that the to this Well, Is million in our appropriately, to are in are. we to those are to Do accretive right And also sort priced and a but I the but sheet, balance looking you nicely past, forward. Kim? ones to a you And on. we're We

and -- sense. We it's seasonality outside seasonality is that pure I there in say revenues. seasonality, not the Yes, went in

quarter of simply because, quarters. there year the months as December you if pattern XX% September Farms the in the and COVID. to pattern the the example, in much highest come a business well-established broke this the that not in as demand, is do We or U.S. quarter of out respect. does again, to June back their the better something of and a that opposed that one March think from The trying Hillshire the country revenue. frankly, was it's seasonal like of workforce are quarters XXXX December and normally that, the pent-up the we holiday a economy and But For

XXXX. in owned the fact, we second In revenue was the since it back quarter highest quarter SNI

out was pattern. of it So

have now expect on because we the our in very we fact staying that should that's September. fairly same our So of think notwithstanding are December pattern, that March and why and for good, quarter been the remainder the this bullish year, we both June quarters

answer access risk the to with I rates is point, to LIBOR acquisitions? us essentially a points. to if to appetite how M&A interest rates, First impact secondary lower for a of historical acquisitions, typically pay would all, a what not basis at down And and market plus next impact acquisition. type rising The financed would the couple and asking. downturn. call yes you. any willingness recession recession at need don't hundred interest your Thank that. in interest probably question multiples risk for of rates the we is question rising then do type is is And tuck-in And that the come debt this we what multiples Multiples of

recessions of managed the However, with a average is through problem. sailed no before. I those have not through couple downturn we and long,

because we collect for Our cash up we money goes than expend faster accounts flow payroll. receivable actually

it available at in firms down, it slowdown be Maybe actually prices IT quarter. news little hiring of seen So in people tech and Seeing will Great hiring. more when about will slowing any downturn. bit their be a may all. get come I've the skittish opportunistic a continuing.

but Google, have been we seen hiring Some for that, not permanent we companies supplying have and example, primarily big like and a like, that. tech of firms firms have hires, their tech slowed not bit Amazon,

would what supply we to really product IT clients that And implementation for things the and is demand in that and labor the like and be -- far segment segment on system the enhancements behind industrial hot. so call that. our services the I manufacturing Our tend more they're telecom, or the

on say and our And to that leadership would field this have the you the firms, did that can for say tech forward. restriction. tailwinds the about is your you company comment the tailwinds well-positioned to very or is not we not customer Thank base that, is I thank a will for happening we So clarifying -- that level. and we always but The standpoint headwinds. some the me significantly going you facing buyback COVID question, now allowed we've but patient we actually personnel being button well, we forward, hatch we down Let momentum? with there's from the share headwinds that. to have. very, that next The that Can more that right tailwinds us can as as drive and and talent. much keep can to know best added standpoint down from business a really the that good that address keep

and because well on of in Thank some from us. us recruit The two may as or Kim, companies the balance able environment, two to with the think labor our while, national use for permanent too it cash you potential to next And conditions do contract as the economic or labor I faster tight environment. to staffing real people I do have times you. of changing employees. expend downturn, to than Can uncertain about little hire general about issues beneficial market. of management an you And can standpoint. global of the companies in momentum bit terms strictly feel terms be to good both, do on at are they our The not we because strongest. that a next Since going the ability Kim. adapt in that well Back collect unmute, headwinds global two business any And benefit course, of again, payroll. point, exceed last quarters? we because good probably A a concerned whether talk from or quarters? and for idea to retain general there, quite personnel. last opportunities are changing to is environment, the sheet far in labor, give our we're about national quite market I'm receivables impact this headwinds So quarters the just that staffing well and for do flow environment. want both for said, looser

somewhat on being forecasting. conservative our We're you. Thank

at -- not where were quarter. we're So we're forecast more around or March we in less keeping the the

at So in between somewhere $XXX we're million or revenue. million looking $XXX

But go where thing -- If than interesting and when on prior question, do that. say, look the our the it do is work to one to update everything. way and our trying at we see too, And do I'm the investor to staffing now, what not industry thing just I back not to right now. guidance another backwards. this could wanted math Derek, the to is you this better slides thing you again, to directionally goes things we and giving we give numbers all all One projecting

presentation and XXXX things over One data XXXX of from you the at XX up the way this Association. that projections for Staffing was Analyst is on if projected that sees higher And are are they XXXX. net and versus one those Slide then that lot at where for look good based Association staffing industry Industry the the last it look Analyst all it's on of the us. Staffing news we in tailwinds originally very we get even statistics, market. the but a -- in And Industry their also And those

So just point that to out.

observation momentum I'm shareholder, thank say One Thank going. you happy that. And for I you, is, Kim. the keep a

you there's front, have strategic approached, would buyers. on I approached or acquired? And be activity particularly a is, from to typically say question will always size. be Another our it of be one equity that good private company been

on to strategic the of point, improving very, verticals this earnings our profitability, very and we of in EBITDA, in So correct course, per running share are the at mean, have the being yes, part But time. we right I discussions markets business, improving geographically. focused growing, from time

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