GEE (JOB) 16 Aug 222022 Q3 Earnings call transcript

Good morning, everyone. Welcome to the GEE Third Quarter Earnings 2022 Update Webcast Conference Call. I’m Derek Dewan, Chairman and Chief Executive Officer of the company. Kim Thorpe, our Senior Vice President and Chief Financial Officer will also join the call. I’ll be hosting today’s call and we will be addressing the quarter and our outlook for the remainder of 2022. joining for lot a today. Thanks our pleasure It foreseeable XXXX results XXXX year with final future. with our end and outlook share the is and of fiscal for fiscal you XX, our for June XXXX you ended the the to third our for outlook also provide quarter quarter

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

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

of based of presentation presented rounded rounded margins are and for financial or accordingly. and approximations growth are related all amounts trends including Our amounts purposes amounts and this rates, items call amounts percentages upon and related

third to respectively. the million XXXX am for the share happy of gross income ended of And XX, Investor and $XX.X your net comparable www.geegroup.com. Consolidated convenience, million, XX, fiscal periods. very $X.XX X% per For net outstanding or gross quarter our $XXX.X up XXXX that With and and June and XXXX fiscal us, diluted of prepared year results periods XX.X%, XXXX $X.XX diluted were XX%, call XX.X% three again are our the million $XX.X achieved $XX.X million periods website the margins respectively million Center I with share. business remarks or in the we and $XX.X were and profits of today’s $X.X our and for nine-month available June nine-month million ended beginning for revenues for that and per once behind report income over

for up million compared quarter up June fiscal adjusted or periods comparable XX, third EBITDA XX% the the $X.X to represents margin Non-GAAP million XXXX XX, year prior $XX.X quarter, $X.X for the million, million, to nine-month EBITDA ended adjusted over was was XXXX or non-GAAP the Our a XX% XXXX. periods XX% ended June revenue. and $X.X nine-month fiscal

to proud very this over our say At time, on results Kim, one work of want key I the how extremely turn of, dedicated clients best CFO, to our it important who turn call This every for most not to fiscal service. get talented success. over the again that I XXXX to is I’ll quarter. further very Kim. They our elaborate our third our to day the Thorpe, Before and the hard Kim if will insure I people. am

you, Thank morning. and good Derek,

up placement lessen increased nine-month on recovery million, XX% respectively. respectively, XX, $XXX.X XX% million, conditions. months mainly negative placement $XXX,XXX QX These and COVID-XX revenues services services the June entire fiscal were $X.X the to the and $X.X placement high and contributed and professional services Contract million million, $XX million as increases million direct attributable and professional XX%, our for pre-COVID-XX X% and services XXXX respectively, were the which the ended XXXX, million June staffing three over periods Total us, workforce revenues, JuneXX, our XX, and XX% already and staffing XXXX or nine the up and US or XXXX. and XXXX. increased paths ended direct Direct periods, services the year. were for surpassed periods. contract of ended total $XXX.X hire fiscal staffing $XX.X mentioned, Derek million, of X%, As XX, three segment, XX% markets effects XXXX, XXXX economy million periods million, XX%, and from revenues, ended represented for $XX.X comparable revenues toward up were the periods. the June and and XX% and staffing in contributed fiscal or three revenues X% continue $X revenues X% the the revenues contract $XXX.X and and segment periods, set three respectively from Professional over of for and a services million, hire have nine-months and Contract of nine-months services, $XX.X hire Direct revenues for staffing million, by comparable XX% demand XXXX includes nine-month XXXX, XXXX fiscal XXXX for or $XX.X respectively. respectively, of XX, comparable ended revenue both respectively, first fiscal June were and and for new XX%, and $X and

XX, Resources, Consulting XX% and Our accounted IT and Data XX% services Consulting, end SNIT for Paladin were services professional markets nine-months up ended Access segment at the of for XXXX Agile revenues year-over-year. June business our

remaining three office, end periods periods were for million XXXX, month compared for and the $XX.X revenues XX, the the staffing and for business services engineering, nine million finance, XX% June $XX.X were $X.X healthcare, and ended with nine-month for $X.X ended professional XXXX. million revenues three accounting, respectively, XX, services ended XX, June year-over-year. & and million professional XX% services the other and up The and XXXX Industrial other of nine-months accounted markets, administrative June

variants substantially of the or conditions XXXX fiscal including in and periods periods. some and with early the delta Consolidated closings were markets earlier up continued our year, XX, $XX.X omicron business were profits three pandemic-related for and from ended We pandemic. associated in and experience $XX.X school interruptions, some nine-month XX.X% fiscal comparable million to reminiscent quarters XX.X% COVID-XX which Ohio in respects the and June of gross margins and XXXX both or the million

June for The ended three $X.X quarters Company’s ended XX, and is and gross five combined hire periods our due been margins. XX, the million XXXX XXXX nine-month Selling, gross in overall expenses June direct SG&A $X.X three nine-month increased XXX% respectively. periods compared consecutive XX.X% expenses for June were general with and or margins and of the nine-month placements, and XX.X% ended largely million respectively margin periods XX.X% XX%. the XXXX. increases XX.X% above XX, and and Our three revenues for have have for which to profit gross administrative substantial in last the the improvement SG&A consolidated

addition during by ended XXXX compensation growth the with and resulting increases in and In June in in positions were affected of XXXX. to former business two overall that expenses $XXX,XXX three-month associated eliminated; charges XX, quarter ratios $XXX,XXX the fiscal were of period and an $XXX,XXX additional the SG&A incentive earlier during bonuses,

allowance addition In bad of $X.X added the a fiscal $XXX,XXX earlier increase in million and of matter one industrial quarters a legal associated SG&A the charge customers with services to the expense in Company’s for XXXX. our debt of the settlement

XX, were for three XXXX. periods $X XXXX. as diluted $X.X or nine-month remarks, the June ended adjusted a excluding diluted comparable in EBITDA, million earnings the XXXX up share compared for quarter, was ended three adjusted share losses million million share the his in the with net for June for XXXX $X.XX third or the XX three XX, million we June quarter. ended nine-month share Adjusted the fiscal negative income per XX% net the was periods up ended nine-month prior release or and diluted and million, diluted and which periods Non-GAAP and share XXXX. XX% press mentioned $X.XX of the $X.X nine-month $X.X per ended $X.XX per is or nine-month EBITDA $XXX, million or achieved outlined or per negative as XX, diluted $X.XX and to $X.X financial $XX.X year June $X.XX XXXX million net per per and/or million and periods diluted the Non-GAAP June effects fiscal items or for $X.XX periods of non-GAAP respectively $XX.X measure, negative diluted and $X.X income or of over Derek $X.X million non-operating EPS compared share XX, As non-recurring

counterparts continue conclude As XXXX in commented we’ve our lessen we results found GEE persistence COVID-XX GAAP Group’s non-GAAP adjusted current press these release. to June of and to quarters, believe can are types be in at ratio our To or supplemental prior of measures positive of GAAP other income were fiscal discussed severity or their working non-GAAP was sales reconciliations the net receivable for capital of accounts assuming today reconciliation at our $XX.X days. flow million, Consolidated XX, was the spread days’ and EBITDA million $X.X of We $X.X earnings fiscal accounts company’s net DSO free and $X.X XXXX million with reported and XX schedules A for and X.X to quarter end metric the from and positive performance operating activities X. allowances respectively. flow $X.X million doubtful of the third cash approximately the year-to-date cash million of quarter third XXXX non-GAAP of outstanding sustainable.

million under of Our obligations payment equal cash XXXX December in of XXXX Act $X.X from XX, nine and the period and of of legal reduced April by of operations first months old cash flow the in instalments made isolated the settlement and flow million $X.X part matter for June CARES of FICA free XXXX. were in ended payment allowed two in deferred

position is no have liquidity strong debt. outstanding Our and we

value our net book and value XX, net at was per $X.XX June share Our share tangible per was share book XXXX $X.XX. per

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

bank XXXX had Group’s and Having prospects today and have XXXX, strong facility. was for the outstanding another The positive higher as onset GEE of well fiscal flow for $XX the performance the our last of margins, other At company XXth, quarter million year events XXXX profitable and positive free results momentum or deleveraging cash credit better. fourth have final Absent been a our our track over the a since unforeseen and we recession under for in availability all quarter Group’s record four beyond. asset-based never the profitable in now future. quarters $XX million achieved quarter we earnings anticipate of consecutive growth future GEE cash as Kim. you, company. Thank third for and full June consistently growth fiscal

Before we work, them, for Without say their you shared take hard our thank with want not and could have good pause today. people to have your all we a you questions, the to special we wonderful all things professionalism, to again dedication. I accomplished

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

follows. received So, its I for M&A reserve cash that a know first maintain we've the is to question opportunities. as important

December for how back of provision the from a stock opportunity not the have Similar question will use us stock cash? intrinsic Why high shareholder give back stock, is the million when every loans. rough own newly the the is is that's is you question, our over cash the on pursuant and can considered to time sometimes our the of we being quarter that $XX PPP stock. Could buybacks. and question, your of last in would next estimate However, company next Cares that forgiveness stock -- December part the month, day percentage that to the the best of bought buying $X.XX Act $X.XX each buy well the after to first mid likely of dollar create of the of value. conservatively generated is given value, price back

the that that's regarding So are that relative buy making there's or when comment shares more The observation to versus I related the can trading to stay insider of you're to stock. about toward quarter. is is efficient preclude directors, of and from been tuned. it's on important that at us There's, discussion think there situation whole results management share to been of of our back is we say acquisition. the M&A now we it's that including an December blackout of purchases activity it? periods hasn't significant going of several regarding everyone in including effective and And so forth. buybacks, The I been we spot-on. level next inside for buyback purchases, question company a Why discussions have information end is more when because purchasing, and a get lot

we're think directors although thing we decision there, to in the I good cheap since a activity is positions officers those relative is enhancing that think the particularly but a I our buy you'll positions price are and see do, personal other group that stock, out to it's own So peer and to metrics there. stock relative some but to and significant of bullish, that company,

with How Interest, agree need how comment. to capital to need do next And question I fund can we I think cash that? operations? much do on run to Kim, cash the see the much we there. do So do is base? it, you'll want the the activity comment to you we extent

Yeah.

later. recognize mentioned while in clients the last almost paying weeks. our XXXX were our essentially about of company contract entire $X receivable, For we the we're nine business cash operated about to that do beginning our We primarily comments, and we strain that And which XX of million XXXX, two my employees billing And days able the only I and of only it until our who then to we what because that to million our of collecting as The period XXXX, is. to flow in cash how cycles. represents with on is significantly. pandemic, growing accounts eight the covers payroll strain efficient $X amount is X.X clients

So are that, -- businesses, resource support asset because supply our very to clients good to other that really than their business but a and collections cycles. other in-part our we relative major

So on successfully operated years, very we million to fairly including tumultuous $X period. three a million, almost through -- but $X for

that me addition books cash XXXX on increased to briefly a XXXX, staffing, XXXX, that receivable accounts that, because do more companies and in were expending for the flow the downturn, That's XXXX, add and staffing money during collecting that in collect in their pandemic. permanent than experienced payroll. to that tend contract placements, Let are faster contract they cash I've something to

pandemic, So -- the of business the in on general. the effects parts of severe or

cash we're don't not obligation, fund So, is, we question biggest to flow cash payroll, answer growing. of lot the need a is if to which our

that's out bad, we we when are on cash then an So a cash dynamic the interesting actually than outflow. net-net that basis, things collect -- more

have and However, record growing. assumption track are, we'd the and there. going is that And a that good, rather they have accounts we are the your outflow on receivable great

is, have great efforts ahead. by very where DSOs give observation low. our will be on on collection go are And I acquisitions how But someone question that. that. know next We dreading and teams our funded? Kim, your The

the relation is opportunity we acquisition. of opportunities ample are other strategy in for have. in we at, stock idea entertain sources. not it clean an but now, all probably then, the create on and go does with we generally stock, the have But is available implement again, target company available sources; seller that trading, template We -- we've because course, of we for a right start cash also given financing look how we takes where a And things cash overleverage of cash, to any way or that -- not the believe we then, analyzed our to is senior and advantage depending in financing to stock, table those acquisition three what the from And, financing. deleveraging, and -- is would and issuing set with the

So we forgot And start four funds three sources an acquisition. earnouts. look earnouts, to at it's -- when I of generally with we -- but

Okay. question The Kim. Thank is you, next threefold.

sector the is is, company planning last or is, of is answer overseas that, company financial the The undervalued terms XX% as significant buyout, is through received the severely next contract in to severely And the first the times, those overseas no. complete The a book. company question about for results to plan any question discount stellar of investment to part is merger is, to of What staff construction then as company? part in pass your labor interest the impacted? the to

the overseas or not to we're the into footprint US front. movement staff our lot But the of and major of use a some US. lot a business. from territory have in fund We resources We a international We've planning may in got US. opportunity

there bought answer is billion have or reviewed business. entertained, acquisitions to for by As a because its we in and importantly, satisfied all of the a period directors target for to then today buying those in the value way complete look-back very buyout. is to say, want shareholder to create to get business. the where grow to. interest the a opportunities a if very, was proposals buy have always management, time-to-time, our people stock company or That back part and merger limits growing and I the are The company employees. we turn interest stock the clearly, company from And ability $X But think I participating want may gets we of received don't buyout? or for and

done But over rent of and ran acquisitions So that's transaction I've interest, And a And lot do for course. we focus XX a I get before our business prime years a of years. had here. the it. we

growth I opportunity that Now here and business grow. We that else. happens get forth. time-to-time, ask let's billion and with was with say, Inflation price several that are on But I'll you think very we equity another good. had there's inflation? a investments got increases. going have tremendous. part participation question, think do from standalone have lot of to dollars, We've and what's successful. a And be I But opportunities somebody to good to so of pretty offers, see we acquisition

but to we use through all higher We're to able So that's adapt had bad. those for and to goods aspects prices and/or of us. well pass quite our worked out not we've different it's business labor, that for

prospect the acquisition of good I and pass-through offer to we're we lot own that know the work say where or I'll we our day where How acquisitions business, cost sector? ones we can't that or on do get don't -- do a able are. opportunity variable get plus that. a have an a in an We look

activity. opportunities lower the I increases that lot say a there typically So it's downturn out of and robust, prices. will there's a at

So say an and a comes acquisition deal times our across would be the offer always right patience But uncertain that's can't will up. an uncertain, strategy, opportunistic. fine. coming now, they're virtue And uncertain. I and a jumping that they're potentially obviously if table, if is in continue refuse, execute and I we're mean, perfectly we we then

Someone in answer could buyback? a be you mathematical do is we But effective buybacks to acquisition appear would more run. on or both. basis, The an a the do short else purely said,

pricing quarter? services? we'll or pricing I the actions So discuss during about you what strategically you done Can what talk want look on we've taken think that's at. to Kim,

have sources let as you we have -- Sure. prices and and two imagine, say The been wages. and There the just moved of begins. our price increase along, economy me with our inflation might pricing in way

step whatever our employees, is leveraging paying The a first we're contract of employees. our

the prices clients clients, design. we aware. coordinate our on their workforce we Nonetheless, obviously, are So with and as increase still volatile. is up move contract And our somewhat our business, pay by employment the

willing work placements, salary. on based for very go permanent in So us up, base our with placements prices. not increases. first to as we on get fees our But And salaries again, are clients that's are year On increases, helpful. much those so

go are current X% as it's between our fees so of cost year, account and replacements prices I And is up far mostly say overall. think in of up, probably the and we've up that the necessarily into contract. taking go somewhere our So that's fair X% that not the contract salaries commented to I past, accordingly. And think this

Actually, regarding coverage. is a the next analyst The on today from the the analyst And you. Thank and Sidoti. Marc target. one covering call. company $X was price Riddick on There's is call also question with

in probably broader report. after do get we seeking as we're and losses? also have other want coverage coverage, So techniques. much How we of base this well operating company to and an similar the to you'll marketing and have investors with a have you analyst are and roadshow Kim, does intangibles take his him But from other update Marc does And NOLs, the net a amortization of remaining effect. that?

look and and XX-K saw company actually – estimate. of $XX NOL I tried my of our in million carryforwards amortization question goodwill at has those note my $XX specifically. to for million open a tax disclosed the for on amortized last and who remains. it's between but want then us The That's And the up purposes. we Yes. intangibles, to tax XX-K, rough

asset, in get been that, do recent. a we tax So has relatively our benefit that net a from prosperity but part creates because deferred

accounting years We improved three before have with like your you tax recognized assets. not performance The generally rules allowance say, to for take they fully that of tinker deferred yet.

become somewhere then beneficial Gap] held So time. of that's And out most later sort [Audio our net in of in there over the income that could on. that are intangibles future

would job reference cover widely will for is recession But the the to The in on debate I'll real How definition of depression question Kim. the when Thanks, this tell recession. lose a footnote the what of loses you is now a a a most expectation? is unforeseen. there's yours. Okay. that Recession adjust definition the of rather your recession expected neighbor question. XX-K I but next you and your you outlook think, is, his is when

through XXXX that, we're most definition, a the getting and the I've with system. predecessor of XXXX, to instability of three for But economic the because lot let's an the and crisis And and it that, that recruiting and can that in XX fill XX my financial after month say it, a that, two, quality jobs downturn cash. of our can bunch meet downturn needs. was material on say So the through, downturns. length downturn of say, company, safely sailed I was was no top month, And lived debt I and with right hiring XX layered one, actively around the to people that of banking now with

good for up goes during period time cash that a As I said, period. of flow typically

this abandoned hasn't filling labor a There so to either market is the still tight because or been level. existing doesn't downturn. the even So that at outlook if that economy jobs just bullish that is general cut point, recovery the our during grow, were COVID

candidates. And looked that's and I that businesses. we services and opinions, higher job particularly concur, end a more businesses have few on we professional at continues, why orders do focused unfilled higher they the the we're than competitors end and So,

is IT So, as I'm our especially IT, finance, key in pristine, not Can end market current since et we're can one cetera? most for liquid. I continue sheet accounting, and have grow working highly concerned say much IT, And accounting allows Well, areas that. balance that you and is the virtual such about discuss remote great the robust. downturn, that and all and finance activities to there are working. we leadership

our see accounting performed happened and segments, to that, In that, what's Are contract some both to highly uncertainty. a for some shift IT, and say in have placements economic to light of any in starting really finance uncertainty? of see really, bit and from units I because recruiters finance permanent softness have permanent of hires accounting. you that addition, and a across during is well the can we continuing of we're we talent, period experienced workers, the placement, in these past quarters, way demand several by segment, add the permanent

We've staffing toward times bit can it's movement So, we on from permanent before buy too. a experience it in well say, try past we're the obviously seeing the concept. one industry. kind my and of you you contract the And several in that it's And seen based adapt a hires.

not from and personnel we So, that overstaffed productivity we is are lean that recruitment and say I by our can means we're high adapt any to that. so our

recession and very, contract there's placement a our good if permanent That very activity economic So, good. still very we've increased uncertainty. placements recently, happens, the possibly headcount expectation we're which but showing or is of permanent lower

we no in shape we're deal problem. can So, with great uncertainty periods with of and

on Next talked that. trend few the answer -- expected in on And orders targets? very be employment? Do a yes. lot We trend. refunds before, refunds That's players is very of are prospects got a coverage good. increasing whatever or period and see months the Demand of placement or -- acquisitions. it charge a bill acquisition what very, because institutional they're placement for facility? lot permanent we past a got see the question more boutique said okay. revolving non-existent, you What has rare. for players want see that? is – the trend demand I as and Do see What Permanent about been to company? you've The targets, is, been very been minor about has is, And to spreads, over for starting when Are there the available interest else? handle continue. activity Has Kim, continues any of high, unfilled the analyst lot the that. you What do that you and for to of to credit exit Yes, of that? had we smaller become you opportunities. uncertainty, interest general

it's on -- something. an we have ours. like points portion common unused basis fee, That's Yes. think which facilities I is And XX asset-backed or

all fee right there There's that throw in there. we off And it's on facility so the which income. weeks there's that's our -- the -- no but the since we no very -- paid and there might -- have had borrowings But two some our other been that fees first banks away.

one, about you too. the talk I'll need that free Okay. And can flow you for handle let capital near-term? cash and

question. Great good. cash Yes. flow is for free very Outlook

that flow -- a But if realize two cash be look and you as EBITDA are combine I numbers, CPA, -- Our with I delicate you that underneath EBITDA want and here. at the to and because the formulas our of our those adjusted very cash right I to working in is is from proxy at earlier, a for a flow. that's mentioned cash And our capital X:X, little strong our and capacity generate flows half now cash efficiency our which growing. operations fairly of good that

the lot there. lot of to. as a your So so far, questions And currently of have needs a alluded what come our we that have questions in operating investors' are for -- have all

call. that brought We in to considering best been a have discussions on forward up lot the and of the various capital going internal things on are the how deploy constant

potential The not And question next that's a I reverse you have NYSE to on listing But and it, $X. the do below they're keep true. thoughts relative says happened talking Thanks, about executing foreign And be know from greetings NASDAQ, to and we split. about that worry trading Kim. -- to it Switzerland. compared to doing you're share your says, well, price person this would your on submitting appreciate your

So is that your certain there investors the institutional price, concept if stock. cannot a trading you're certain at buy dollar

the we So price equity off back performance outstanding, stock recovery share up are some fewer acquisitions as your shares paid accretive when price company dilution to we that some and our and help get buybacks at sure that point, then with for execution. on helped debt the constant your we're And that. in split, the participate investors shareholders. to allows offering. price an institutional pushes this And with that, for up reverse mode in through Stock obviously, took

of all under planning, and and our it's difficult execute and discussion these can well, and these on I during we us are things any increase trying review advisers go to say as we that for shares considered buy shareholder So by periods with if public. of of to company before particulars value those

that relative a prior navigate I that's that question So well we had. something to as through

Street have but one what the our shareholders other, uniform and experience potential from area all by these and to have you, things consideration? the investors, with way and I experts. way, in of always don't a And of our the and and say. I are shareholders, under I others say They dealing get or a So answer And are. solicited lot institutional of input the shareholders listening

and the forward tend focus growth, still what move you that that. they're alternatives problem. thing, to all the of do How and I your to on those is continue on cure offs to and XX-day can things. will one essentially, tell execution, saying evaluate and will methods, business matter significantly we what boost type going by help period profitability revenue for if on But And we fall on? much firms, other we Kim, will have? continue risk you within could do you're firms, So

a big earlier fearful comments foresee every Yeah. on with carry moves it our financial we go that recession. cancellations doubtful that our combined say I through up, But on update heard That's to point right you this not not of, We business be reserve accounts. for if results moves bubble when of it's outlook. reserve example, they a up. our carry the not but a commensurate don't allowance a coming might And say, make moves reserve that We at that we reporting I just quarter, naturally and don't of the a in purposes reported will we with already -- would for up go that we the -- now, reversal Derek we're good that -- outside would think books; massive that it -- the carry. it we for reserves

you, Okay. Kim. Thank

finance. we do like similar for other by is question that We the metrics total is see rate current presentation bill indicative and build We revenue lowball IT producing and various is they're some that's rates have they're hours that in and for in the of regarding whatever. accounting used spreads. could in get about the I gross Can and be for workers don't or measures and in prior One numbers the period margin information competitors some in and bill regards to don't they're to talk and or or put other Another pricing -- our do trying or out either some rates we information presentations. presentation. shopping thing metrics? out public We put in customers we filings, do of verticals ranges bill

do to a how are So, we sensitive of straightforward-- terms those That's Kim, metrics. have? pretty But very we revenue-producing many in workers

between at were our actually, running Those the folks for XXX including we've recently man that's our the meaningful our recruit we those cetera, we now full-time adding in that Well, support. rainmakers work made that clients. to employ our et a that sales, some And here include that are candidates, don't question make employees good XXX certain headway people hires, a that core markets. offices because front our about of couple in

because the to going professional. hedge, next forward. is that's in there's believe resources opportunity we we if Derek up our number that around a between soft it that will, to and closer mentioned, So, big contract our recognition represent now. for grow happens business XXX. the in shortening doing think our we've chosen best And markets really cycles source And contract done you perm that's getting that we're and kind contract of, selectively revenue we're -- of as

the the you competitor company. can companies question part HireQuest next about and our The the deals HireQuest? in with market? with a you most Can not speak the about competition? And is speak competition for

Our competitors vary based are operating in. upon we the vertical or specialization that

compete us. For are that IT there compete like the there's be that In example, for out example, And higher then the companies lot with that company a and companies SNI in has ones Group, our before a Manpower's a big But in experience at effectively business finance IT, would boutique then bought and competitor. got some it us. competitor. would Manpower, times accounting, higher have like Robert higher ASGN competitor. Half that competitor. IT that Adecco there's with IT would end be that of they Group IT big is with the Group. would of was bought players end bigger a their predecessor, end Each at of be staffing with MPS a that an that a my piece, group lot very a Robert our the of I essentially local the compete

track a Are each then discussed the skill they're end the get there meeting? pricing the type at to are and Board Annual events on in lot Board to to that's Shareholder discussion month Meeting. based can we within be special of we our extent of and And of any of and at they're the data. how There's growing, they're competitors how the end see several performing, the specifically month meeting the all -- filling. there vertical positions keep vertical, how of that that So, they're

We strategy our will delve into with Directors.

that things constantly all meetings but address some time brought today, very been have up and face will we'll in-depth team. the very, we have do, We with our

Given reach the got opportunity to going of We the get opportunity let's debt. to let's opportunity consistency okay. any cost the you to company's and are extend there's to? balance see down? an much an we there much balance higher have cash How sales push, the this debt of how cash $X billion to business, any Is business? see, Has the there and of push don't been

very boards so the one. Great and online exchanges active answers placement access, but tools the question, from forth, though as staffing that of plan lot I So tool estate. there's scope job able services and company of you that of and agent well? very are on analogy It's a to we they're are that a being online for exchanges labor so for expanding Does placement online still do. online not we real buy replacement what very, can a use the where even even similar real to, estate a to

through and to believe actually their they've abandoned buy example, For I real estate and Zillow sell that. mechanism, used

Again, Now we an they're information have source. tools. more state-of-the-art

met what company than us. forth. quick. investments tools the highly use specialty customer. critical speed those finding tools appropriate can better all job our market how specialized And the better our then in shortage through of and and say make a We're went is we're probably we providers, candidate aggregators other what I people providers, customers. the just that the of to and with with We've our are scarce to we and the can we our for nimble, made most effectively. there's be. getting scarce much aids that of going better so that access and -- business, have the database and call placements board candidates to technology garner We aspect all has job -- a for And information in to I order no will on And in that's just

we're the program in. greatly, very, amongst coming which crowd that tenure we've a employees, to skilled implemented that, have and very at good our So I matters and training think we great younger for

see. Let's

bit as do areas about to brand little of percentage going -- recruiting the brands. and what your Kim, question about Talk SG&A, and we'll more refinement, dollar highlight we talk or and that a is, get calculation. next the So be amount a We're of in certain will SG&A next quarter, the percentage revenue consolidation what's impacts and a training. the that you and through how into and the our going company forthcoming,

Yes.

front about XXX-and-some-odd has Our selling. S XX of actually in or SG&A of XXX That I all XX is would office support have support office. which also field, about we those about but have that staff SG&A, about front And in our field all the probably falls employees, that XXX the -- embedded about of the of we the some our represent two-third salaries under are of businesses. about the there's what our call, personnel

legal they're being -- And account make non-recurring several you but puts market, are coming and time as a it is into for of XX% had, we that you, tick of larger here. tell take means being comparison in of from the the can in settlement. large players things You'll SG&A the one And We very investments. range, here the lean out which kind the up below had pockets. dollars come I we though us we've growth we're which which the because clear manage ballpark when time, we nine in months, should lean. that out a be find our the good smart own of a happened you'll see basically to our And a few that those

technology. investing Someone in mentioned here

and facing as with there recent ourselves are we're some out to good preparing up investments world advantage which is, some cyber Derek most brave our risk, of providers shoring forward as discussions Our of we in. hope the technology investing mentioned, And very far new of in those for take and of as things. some had

to we markets? Either lease of two other virtual questions going relatively The we're to a about consider SG&A of of The couple our remaining less. average times when one-third life been fixed. our yes. The years that or is answer asked is expanding. Are have

couple to expanded Houston into the market recently, converted into move mortar a virtual. getting others. and in We Austin we've example, we're bricks For of to ready and our

small largest personnel. now branches, behind cost, and advantage – in but markets, which we're that virtual, which think largest excellence of yeah, cost, future which GEE have taking and job boards of blend will our of is cost, future, of our is the reducing I of third our a very much, centers second was servicing So be some some more with different of the might will be

nice So, those are and it SG&A low. manage we good questions. very, well very and our But keep

Our revenue. our total of X% total than are corporate less expenses

So, all well. those things bode

you're certain markets the to The came that expires that it to and our some leases to when regarding to and Kim, move we'll appropriate, space those that do already virtual going office whether leases the do ones? conducive have answer we will And in that. of leased selectively. question when lease leads it's done to up continue and is, we business or

markets, in opening IT example, we're our group. new in when for went Additionally, completely Austin, we Texas, virtual

So without to effective new resources from to enter and of market. our To do it's a our that, base ability and way, because cost it allows fixed our you afar offices. convenient manage very it's technology a into

of Let can me talent also competitors honor your come acquisition, business which Acquisitions say that, increase various agreements, of violating we form of our acquisitions that money that's a a because much they of in grow. without non-compete a big cheaper less whole than bring we And and and of other talent to and the customers table spending is company. cost that the forms. on lot risky

of a facilitate opportunity that are the we is us because come that that, to in acquisition. able company Now, and good would target? of introductions, have help for they tell and that our answer some competitors an And get you to some to from the the good can and great these so be side bring flip -- a group individuals then hire is, a

complacent. things daily So and ever all are are with not we dealt these

We will complacent. never be

get Somebody investors? said, are awareness? you exposure, doing answer yes yes, yes. analysts, Are anything anything yes, institutional yes, brand new and to yes, doing for Street is you The

company to get off take to off and get good to up next and now, this that obviously. point level. we risk right so undue we the lever But we're paid not then footprint, the and to well that will positioned So we expect take were, to debt, the a not really

and we've and and not price even shareholder through cap, come able value better. through navigate we're out those about going and successfully bullish and increase about because to market We And forward. before we're downturns, we're lived too concerned will them

business, Employment’s could activity a great the continues us for really get this me. does leadership well. Hiring at we're they're field actively bellwether So permanent ability with actually nimble there to be could the and I loosening, super contract industry, to industry coming the more matter for into a see field, well going got the the actually and quick post-COVID a to was participate as you tell you, put historically, business, personnel. experienced. point. there's bit, but decision-making And industry in the then There's And recovers, quite not our will economically. out. recession recovery but to actually And enough I mixed can be. be little increase we'll from these different hires. to on hiring will contribute hold that areas We which level, is out and the hot,

recruiting level Our level the and at by account management phenomenal, both leadership and the tenure vertical. at is

call, concludes the as pretty you participating, shareholder, good or much. our your happen, and We that and all possibly for look today. getting investing investing things to of for already we very you interested appreciate on parties. you're on not a much interest Thank So appreciate shareholders if call