GEE (JOB) 15 Aug 232023 Q3 Earnings call transcript

Good morning, and welcome to the GEE Group Fiscal 2023 Third Quarter Ended June 30, 2023 Earnings and Update Webcast Conference Call. I'm Derek Dewan, the Chairman and Chief Executive Officer of GEE Group, and we 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 all for joining us today.

It is our pleasure to share with you GEE Group's results for the 2023 fiscal third quarter ended June 30, 2023. our and the the with XXXX of you year fiscal foreseeable provide outlook remainder for the And future.

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

we will financial this During some non-GAAP measures. also presentation, talk about

explanations of earnings press Reconciliations the we today in the address measures and included release. are non-GAAP financial will

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

today's For Investor your our call prepared our website, are for convenience, available the on in remarks Center www.geegroup.com.

achieved million. the again fiscal the $XX.X of XXXX very in once good results with We revenues third quarter consolidated beginning

and profit gross gross margin respectively. were consolidated and Our million $XX.X XX.X%,

quarter. or XXXX per third EBITDA fiscal net million. for third adjusted our of achieved Our the for fiscal diluted income $X.XX was non-GAAP million quarter consolidated consolidated We share $X.X XXXX $X.X

well to placement high third fiscal quarter demand explain for will is and year's above we services, year-to-date not why which prior Kim hire did As beat numbers. were record results direct the due normal last year's further,

other we taken professional and favorably operating contract IT XXXX's the growth businesses and significant terms account compares the so still far brands. and environment achieved our particularly Fiscal in into of performance combined

flow miles I'm restructuring XXXX deleveraging over eighth completed Before of was to our quarter I in since Kim, consecutive initiatives of quarter cash June our the turn XXXX. it generation free we quarter. June and in and profitability

financial by industry operating in and respects, growth well with Our brands our some led very shareholder larger peers, and than the positions IT results on future and par significant value. our better for future us in have been performance growth increasing in and

alone the XXXX to June Our earnings the recognize of also benefit quarter's to very positive $X.XX will through us in this share. moments. tax per performance a event few a cover allowed added quarter $X.X development million. deferred approximately This Kim

late of We $XX now implemented in plans. our million comprises a April allocation capital component XXXX, which our key

continue repurchased to purchased we program. have As June intend had nearly At to shares. current and share And enhancements shares. the are also XXX,XXX prices, repurchases XX, of working on we date, X.X our common XXXX, JOB million to we of repurchase

assure and to that want presently our room fully we recognize is everyone grow. a I substantial to stock undervalued

industry our from forward of the follow-on announced market players. XXXX. the a stock entry XX-week industry has of Group XX, fact, including and to environmental believe and largest the Measuring potential. upside public on outperformed offering time funding April of its our GEE staffing of including we most several peers, therefore, highs traded most are concerns, due As in indices below JOB a well trading matter the tremendous we firms publicly entire group,

best are our service. again want our work thank They Finally, most that dedicated to I the success. ensure very driver clients that turn GEE people the and day hard important every it to the over, our key get once wonderful factor before I extremely outstanding to in of company's XXXX achieved fiscal continue be in XXXX in Group and far fiscal performance future so the will

further will over call the Thorpe, Kim? who fiscal XXXX on elaborate At this turn quarter I'll time, our our to results. third Kim CFO,

you, And good Thank Derek. morning.

X which fiscal overall The Our million XXXX's for ended XX, XXXX, X were mainly fiscal were $XXX.X and XXXX XXXX June lower revenues to $XX.X period. and in were lower months performance comparison attributable this brands. and consolidated in so businesses the million revenues there with by results, hire Despite the positive high contract some professional including growth far placement our direct headwinds and revenues. faced substantive our record in notable are XXXX, we've led fiscal IT comparable services

level near third consolidated professional services. the segment fiscal Our largest or increased of quarter-over-quarter. XXXX par companies X% fiscal XX% revenue our year. we of services of Professional is all optimistic contract contract in services revenue, for performance XXXX’s industrial fiscal our about traded also staffing or Professional on and of services contract so is that contract several which respects far million, and third revenue remain staffing contract other of the revenue financial and in reasonably better performance staffing fiscal services the comparable our publicly quarter and XXXX’s for were $XX remainder than quarter and contract with staffing XX% $XXX,XXX represents

The XX%. professional XX% and IT the both bright IT X% in services quarter and direct services growth services has XX% contract combined in now revenue comparisons of spots professional services contract were revenue our grew nearly of accounting IT IT revenue, office our with represented and that contract revenues all hire year-to-date. of and grown contract consolidated these achieving to finance, revenues

was higher million XXXX third Direct with quarter million. $X.X the $X XXXX for quarter revenue fiscal the third placement of compared fiscal

direct mentioned ever in services. year earlier, And As for our a June placement XXXX was hire the direct-hire XXXX I quarter record services. fiscal placement as our high June set record fact, quarter and for Derek highest

direct XXXX, ended XX, was the Our June period for million. nine-month placement $XX.X hire revenue

$X.X revenues XX, fiscal ended for XXXX. X% third services Industrial total represented XXXX's revenue and quarter June were million of staffing

favor moderate to to temp presence of We continue to may lose or workers government workers relief they in is light hours their programs if Ohio. observed some in are preserving high. these too reduce programs which and We tend in experience subsidized which COVID-XX growth part benefits, available markets, our light of industrial that in industrial attribute their lingering income to challenges to the that in earned income order streams believe we work cause our holdover to balance

inflation also to light temporary benefits staffing to has wages businesses Ohio. in among job our orders. Ohio industrial conditions markets staffing contingent and increase Recent in competition the hourly us labors combined fill firms increase in workers These led to for for

We are industrial sales programs recruiting help and to our growth actively in candidates and introducing new restore and retain businesses. attract

which to inflation mitigate and We have increases implemented in also there. impact conditions helping extent Ohio, of successful the an have in been price labor

quarter XXXX third down Gross million, profit was profit quarter compared and or $XX.X million million. gross of $XX.X third $X.X fiscal XX% XXXX with for fiscal

mainly to margins for XXXX fiscal lower in XX.X% gross hire gross and placement gross XX.X% has XXX% again XXXX attributable declines respectively. overall which Our The were margin and and the third are business, direct gross quarters, margin. profit

XXXX also XXXX compared to On margins third for the to stepped spreads profit professional Despite for margins, rates compression has recent contract with third The administrative $X.X within were recent quarter regression. XX.X% counter some margin X% up and recently businesses. side, services peer SG&A relatively expenses and increases remain the inflation our bill and very fiscal compared SG&A, competitive with general in the address million inflationary caused the by fiscal order for gross expenses, XXXX our as markups, XX.X% decreased XX, of fiscal group. current and in spread quarter gross third in compared or revenues XXXX, pay are fiscal quarter and XXXX. contractor high with lower associated Selling, ended third June company increases quarter. company's of quarter-over-quarter

savings In advantage basis. identifying late February XXXX, of certain and The potential taking reductions approximately costs, estimated a monitors inflation, million. including view towards the a cost annual the with on of company implemented March company of with reductions impacts operating and routine of $X cost

our We are see expense to reductions and now margins. to targeted of inflationary help the benefits ratios our and other cost beginning counter measures improve

quarter an XXXX's income quarter tax net that valuation XXXX, allowance accomplish XXX% formed the net million to put reversal for our with further a your the beyond Employment allowance of to be per of share quarter. independent recognized stands of $X.X and Solutions company, attributable million highly in diluted auditors. since GEE technical are required tests this by that significance The this or carried deferred perspective, amount, in mainly quarter-over-quarter the Enterprises per release offset was into is and Group benefit fiscal tax assets. this or is the General what that We Scribe of management we XXX% million the as it To and carry we XXXX’s achieved that $X.XX scrutinized criteria The acquisition to have to highly met $X.XX been the our deferred by share Inc. diluted as $X.X must our today. with associated increase compared of third fiscal $X.X of third as income for

terms, in his is the required. the company no the that it longer that that is allowance historical However, demonstrate was is profitability -- and both to simplest significant opening, longer in Derek outlook upon and as also it in touched no required that

for fiscal measure $XX.X fiscal as $X.XX XXXX XXXX's diluted third Adjusted net June $X.X fiscal share EBITDA, million $X.X the and income, non-GAAP compared million, for or the was quarter. million million $X.X million a with is share is million Adjusted was ended diluted XXXX $X.XX XXXX, a which non-GAAP per quarter which financial periods. compared for financial as $X.X $X.X XX, quarter the fiscal third respectively, year-to-date for third and comparable measure, XXXX and with per

fiscal so inflationary fiscal on notably some Several for record covered, the factors the declines. including account we've is revenue present this direct XXXX far well hire decrease year, during particularly highs as as wages pressures XXXX in

on February mitigate going where our this reductions we cost expenses margins expect also and of to measures we cost inflationary to increases improve of course, profitability the And will available. in necessary year take March to other continue and and forward. implemented help We

FICA XXXX, free basis which at working million XXXX, was XX, CARES excludes our up adjusted deferred cash XXXX. under points of September that non-GAAP financial X.X:X and for of nine the ended current the from a the Our at X.X:X, second were effects of which months June was in XXXX, which $X.X million, capital measure XXX December XX, June installment were Act, final $X.X and is paid ratio the flow, deferred XX, taxes

position remains outstanding we have debt. and liquidity Our no strong,

value since open book on share and tangible $X.XX up million at XXXX. And a repurchased stock net at in the X.X Our of significantly of September both value was was authorized book XXXX, an nearly Derek $X.XX, XX, program price share common share since mentioned, was as $X.XX purchases the per company, XX, April shares market June has our XXXX. per average

fiscal our To appropriate XXXX, our that exist unknowns and conclude, uncertainties operating with positive the in we outlook of remain in now. for consideration environment

financial measures GAAP non-GAAP to today in Before our it over supplemental be including found the Derek, reconciliations with can that turn their of discussed schedules Group's back note I release. please GEE in earnings counterparts

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

the in despite debt million and $XX.X future. macroeconomic consecutive quarter our build a growth $XX.X Thank events and had track At and momentum credit you, third cash quarters operating eighth the fiscal improve for to deleveraging with as ABL Difficulty] over no The we [Technical company million achieved expand unforeseen June as consistently profitable XXXX, last since marked Kim. to today free GEE higher quarter for the performance strong bank continue a XX, positive and of availability Group's the company, future prospects margins XXXX under well for facility. X headwinds having flow in positive continue cash record our

over it here. take I'll Derek, from

And I we shareholder and think fiscal will solid value. benefit unforeseen was results headwinds continue for for What XXXX is and we saying the to work macroeconomic significantly events, of shareholders hard to expect deliver beyond. you. despite lost increase and our Derek

dedication. we say their take questions, to work want Before special pause hard to to a wonderful I our professionalism, people, and and again Derek I, your thanks for for

not we we we accomplished you As things good with said, could the today. have all without shared them,

ask Now Derek Please and your one queue needed. I with and answer as to would question the happy questions. be follow-ups just rejoin

can he the come questions. And we'll Derek back answering to back questions. time, to line additional going minute give for to a see there's just come I'm begin if on I before you If

professional time, share and/or interest question and one the the Thank Or you. run are of In services do Okay. structure segments is, contract the can you separately? we they explain hire in customers? the queue. have staffing direct the Which of business

if a That's services, very question. the you or products The different. are will, good the businesses,

ever scrub left, guess. separate, but the and I'm most they of both a light of brands not but they same couple which of our All one contract with that and services customers. exceptions, sure businesses. but customers guess being with proportion are that's our professional The a can direct in have medical overlap, I necessarily not industrial hire cases, the they're would

XXXX have for thank to we relation for full XXXX. how that what on year and question the another think post-COVID? the and trend we're to QX going year. question a But of out again, was question. expecting XXXX, a presume in coming to very XXXX, 'XX is, are you record guys the you I I'm pre-COVID do from ultimately

in significant pandemic, come of there XXXX slowly I XXXX of as continue of think to there some kind the in catch-up were like COVID and things that. was out variants we

were there that workplace the being new also And paradigms in assimilated. were

I XXXX, the there there year. that business in But and lot catch-up, was here in believe share points. Derek more some to And direct was I so And a hire wish we're

I'm here. connection for the second, a I lost but.

to and guys relation XXXX QX and giving 'XX some question, just a Okay. XXXX. the And in for I expecting color that. XXXX. was Derek, looking question I you was to and answering What I'm at

lot that view becoming think the and are of there, although mean still depend about to how out a recession control And or how a it as under recession. different will through on inflation, a much when. view are I I it weather points different of we points there is of potential it's are there uncertainties

to all on do So this that well will think very peers. it. have I add our But you to to relative will to that? a want Derek, perform bearing industry continue

The in and we it's would a is The reached anticipated any I I'll permanent XXXX, outlook the XXXX. versus non the some choppy is macroeconomic see peak XXXX suggested. be XXXX to Yes. hires trends permanent say that bit as of for We're downs. but in you seeing in to years, Clearly, strength summer XXXX now. hires it's strong on recessionary now. add that outlook we're for a relative in something. ups environment the choppy

holding Our contract and up. business is doing quite well

you pretty will things And I as good great. we is and going forward to think our should good power pricing be good. profitability that Our is flow continue Cash do. expect

you The much -- pricing. covering about next question, want was Kim, were to will you because talk pretty I in And that

with we a glad. wages temporary I'm in year staff. staff, a we occurring, about temporary price in well, the the ago we We more the core a Yes. see in our with some recognize and because to began per case for inflation only ago, In in we is workers way structure was staff not contractors the built-in -- our our year hour had rate that that our start hedging of actually business, to there that. that the or to than begin temporary operate then and spread in also increases but

directing there, Be clients we the our and double-digit gotten last And that then high a cases, increases. price XX as in our even earnest case, months seek you achieved business, businesses tell or in to May, would our higher industrial to year from some And so, we've ago, single-digit to increases. rate rate low fast-forwarding with go we've in over some began I of increases. to over respect

will going see inflation and rates we while and watch to robust it. probably So you attention mindful more remain forward, while of we

Okay. acquisitions, or utilization tools about is is structure, value. at The forth scope other bank corporate The of buybacks review the look an we're Directors in to the question to enhance alternatives we take all alternatives consultant have different just to a question to a of of for the take see to if maximizing the next that there so and investment strategic look shareholder all decided Board concept get at. a

get a expect a good and like We'll to of checkup, physical benefit that. call good some check. out we healthy So it's it

review? on you happens. the let after strategic more that item Again, we'll is, next can know expand The you

that different they with F&A over and years, structure professional two revenue, how the Kim, Shares before and past two trading evolved the -- look address over provide COVID and can right how capital $XXX the you off other, million a you in both the over $X.XX the the now. that don't debt years? paid contract of IT, you why verticals over services breakdown

they as Yes. the The remainder completed or offering $XXX that to, outstanding. debt almost million to raise shares. of are referred down shares we before we you had -- million off XX shares reason $X.XX right. XX follow-on opposed And where to Thanks. we COVID, trading the to the funds million are the that All pay is the that sold XX

other been So that entire forces the work range on that in XX-some-odd the accounts it's the for cents addition in industry. the are to $X.XX dilution there staffing between out trading and and that the market recently at

mentioned is F&A together other breakdown specialties, medical, other, And probably the to services specialties. I account is in those as professional the engineering far XX% of and about being professional F&A IT contract the XX% other portions largest. IT, some revenue, for of as professional and the script, second XX% As two smaller

How these very growth. services evolved it's is years, its over and and and becoming our mostly of professional spot to It's three revenue because two the all bigger simply, past portion IT a accelerating overtaking. of

during brands. In was you layoffs, not it fact, pandemic that the grew pandemic, our so all office and business IT our the total it which during one surprise, brands all will, but of -- for from more to of actually actually a but at sending turned IT, generated if one because work COVID least home, people our the of closing IT locations out the

a total of and The much to not highest because to be so nutshell, just lose changes -- and tends pandemic our valuation revenues becoming staffing. in has IT much as tended a a sensitive the factor is fetch so conditions infrastructure. terms, economic it other to in begun in vertical tends some It to coveted the during IT is ones but professional in multiples

anything to to or? So anyway, add do Derek, that you want

No.

would next of you. relating your have -- we did have is into finance fortunate our forth. our And big you in telecom, within we're client those controllers, And other industry The question group manufacturing we we staff and entities, accountants, of think Four -- to account industry fit clientele's diversity so great. tech, professionals, from segments everything financial I services. verticals. and the Thank clientele. that analysts

doing banking hires. a have specialty We group permanent

departments in verticals. IT all have workers a presence for tech also the the across big We placing

segment. and not have diverse, one segment, when on industry we're helps concentrated within So downs and a particular heavily we're ups lot too and that very a much you

And So continue we is from feel more clients fortunate new in pretty good. clients. rate get well business to existing that our we penetration and client regard as as

regard. So very that fortunate in we're

that Okay. The next question, largest is for can information Mr. the shareholder is it's Sandberg, Oak Oak? out largest Sandberg will to our shareholder base. and and the value is great who representing agreement publicly. you elaborate We Red put with the David a being agreement experienced shareholder public. joined our and add Board. on representation our very organization our largest is Red shareholder The

So an that. feel with was X-K read it. There free to filed

going Next question, would a the place? on great That's question sale or table. transaction private take a private

is a propose over to path. always I've So of period structures in that we that the been involved can have that that answer continue and alternative there's companies, acquired X M&A, people time, we and

they're and to to Our capital and accretive back allocation acquisitions strategic if ability strategy buy to priced contemplates do earnings. our the right shares

fortunate our forth, I cash for of think So other use too. cap the there, structure, and And and alternatives review so our strategic will prove alternatives. we're out best very

terms you the option what Group its and of let's tell our structured question a And that the can price good and is have our see GEE high company performance. selling to upward have is, process the I we forward a high expectations for next we for on of table? also in And share momentum. So move expectations

have the always being As a you Executive, Chief in shareholders. what's of for to shareholders best look interest fiduciary at the

as point, this across be sale a options would in can that available no on that the be you public always I at with public to process there's they are extent should could So the going be tell environment. we because board we but

it interest it on offer for was the shareholders we I offers, ran be the XX out point, started for materialized in the be Group, and acquirer all had both shareholders, employees to too good best the And true. offer And for of that several and and it a AccuStaff. to the that executed with continued the and right company at to the then as and years was proved MPS acquirers. absolute one decision which

put to deal, and company, value So the events gets the stand-alone. our on wants company should, a to presented can of our a as maximize table company, it shareholders. and And if it's as goal offer buy public to happen, a an it's is if our they profitability someone good then they

mean, I must typical that's company. And the a public CEO that running format a take

go. should our strategic employees will in interest position as that So our in where shareholders. and And are we the we at always about and industry of feel great we the we best look alternatives

also we real we'll capital feel about of do. the do into as a board that good could analysis, develops across our And So in when terms we allocation, prospects see some our we things that what other standalone. strategic alternative

see. let’s -- the is question Next

This you out Okay. Red Board. All stock one. requirement outstanding must Okay. be Waterfield XX% Oak a of own? the If comment is could right. pushed Mr. not, long on the of that Can the

Board say means have that them It will was So that need equity and Board the mean leave I can agreement. the to stay. Mr. and Board to certain Sandberg keep doesn't Board the they now him Oak through in to board. we're that it Red members, Mr. red Sandberg Waterfield happy that, like Mr. he on on are to doesn't -- provision that be interest seat has his and Board active the mean maintain a has and if would to the company that

that to a leave have the says in Board. that their then level, that provision particularly sense you makes stay that members, interest for extent have to the the just those a come involved falls ownership do with below we So but the want that's continually big to shareholding our if agreement that to, Board provision on that could a them Board we it say

financial to value with on these to experience the utilize we the two as talent bring members. of the to knowledge I our knowledge members Board that and is a of investment Board would we're table all venture and that lot going say do

So forward new with to we look engaging members. Board our

you us very permanent update for year acquisition XXXX picky We've an industry and is because The industry, acquisition the or give good. was with pipeline direct placement hire. Can particularly banner pipeline consolidation? the been on a

and alternatives. groups it kick activity. ago, of makes other on So we activity, certainty Economic in that time what but the and economic like we the profitability it be. as get We'll want of years There's get purchase couple industry the looks a should There what don't certain if utilized environment. a a a environment every robust. in more the see acquirer average an an them aberration are be it But picky what over as it's and a terms like for We're be people price was at acquisition. negotiating well will both on we still people as environment in peer look trend look strategic once It's economic up results lid an What puts showing so And line again with to to also sense still and and opportunities. to lid well. and forth. the likely lot is political uncertainty about growth lifted merging day. of should at rates not as being are we're

X-K. that's I'm great ask to So a How question. many your per day glad to you shares could back now? pursuant buy

XXbX-X And out So even in filed. briefly, that information this morning allows buy and an that explained back also release a us there's plan. on X-K put announcement our the when we was that material nonpublic we to and just

a points. price at it where is on buy it arbitrarily we We and other how in with So four buy limit, trading four price the to the like we in works much weeks, sets go limits which any course. can the times XXb-XX shareholder normal day or prior market to the allow volume up for conjunction might the to be continue us participate set up, average XXbX-X weeks. prohibition can't and also make every even could volume in be other will there volume The XXbXX. the just blackout up

XX% I is believe. that

That's correct.

reference XXb-XX on look can at for that. You

any to and our So continues this continue and cash. in event, a as free be so cash at we the lot flow do have are we we'll to very maximum time, buying of good

So with blackout be material would we preclude in so buying shares. we limited nonpublic that we much periods if us or have information, the put pretty XXbX-X wouldn't it from back

One of the things from was makes higher, want was in mitigating whole prior to an that do debt. off a stock did lot price buyback question elaborate you the The Kim, lot the offering issuing on you paid sense of your dilution you equity the a of that? shares.

question sorry, say Yes. I'm again? repeat the

We mitigating the buyback. issued on of Just a dilution the lot with shares

back We so shares. shares did. we Yes, bought far We X.X million issued almost XX million in April XXXX. of

go. We have way to long a

acquire certain to company continue we've that We're -- program. but time, maintain as there cash. in special over cases, well. generating are that now But rules to so buyback allowed the significant we're and the blocks, able are we We support around to cash positioned

level of to expect the But are set if up do did, because now, accretive if we to don't to the price, we time we to and we'll do. don't want because eventually, to the going stock that were as we of enough or on, -- share nature where has back say, repurchases. of stay let's again, stock I'm which And or per price goes there, buy so go

where do and million we the earnings, would of process with we these in the almost shareholder value -- can the at Board whatever, the outstanding the program, course, it December this a $XX under approval are of increase by actually number we circumstances year or creates which certainly shares. reinstitute end of So addition of it will to reducing re-up or

Kim. Thanks,

as make easy in we They're organization Tuck-in are integrate to existing that talent the clients help horizon. revenue, that add value brings EBITDA and basically immediate can that the Another as clients can use company and of our sense. acquisition. well with acquisitions come question to we of the a tuck-in on the to had lot terms also acquisitions in to serve

So us. the sense to. And lieu in tuck-in those. that we acquisitions anticipate will of in back for yes, stock, of not addition buying We they're capability do make they're

Fortunately, we to have enough cash cash and do flow both.

you are The Kim, that? we to the that on next your net loss is, carryforwards. have What comment operating…? question want do operating

Let at and back I -- and can It's it's there, don't from get disclosed have me a a report the think hand, the second. XX-K, in just actual $XX you in figure but come but about it I number. last million it and find guesstimate to I'll I

Okay. Great.

are is, at rate the shares the of net now, your trading cash? Xx question EBITDA run right Another

Yes.

that's I think in it $XX consider million the in mean, million range. normalized undervalue run rate. some at, EBITDA. the numbers reached past that We've the we're to the that $XX high I represents Xx

So on it tremendous with your think track you're I is what And upside. we're where at calculation today. of right shows there's

we're so do count that bringing occurring -- increase so strategic things anticipate as EBITDA, and reduction, and we in earnings they with increase on Buybacks internally upside don't forth share get economically and better as tightened development the also control, that business but per and acquisitions. taking And cost well. they actions new also pricing, cost share

buy programs combination forward that. will you of different of and day? how many shares So us going to all could a got shareholder add increase the the -- value back We

end on Derek, federal year. a last on of basis at we million Yes. the tax $XX.X had NOLs, the

very is there or income, $XX against you million of year's and if just leaves that. million or that rough, this kind around $XX something. are against mark this pretax again, year-to-date So it off to other adjustments But -- you

don't have an but they're exact significant. So I still figure,

since NOLs for the amortize to inception we in differences, timing fact for including deferred of exists comment. that $X.X short, goodwill in there's keep And on million this Please seems long net you are taxes. about going is XXX% cases We book. deferred allowance carry there? It Derek, to elaborate. asset been There a purposes tax don't -- Hello? the a income. Okay. a gain because part asset and call. some we've we the going. other on notably intangibles tax talked is I'm tax some that Congratulations there against the in our story required and

overcome consistent than is being tax in not is to key as likely Having being biggest able that key profitability the of said able of of negative which in allowed the asset, achieved recognize test now the profitability, assets That, standard reverse the that, we've most about calculation. small demonstrate to aspect the way, the the evidence quarters portion, of XXXX. that June us part the thumb XX overall of consistent fourth of all through positive consecutive to than more of more reverse a in share able becomes to because rule asset, by being quarter your this to XX% deferred lion's of the a turn, the demonstrate to it will remainder

quarterly virtue for by cash running or of out of Our more any to targeting -- mentioned, Derek How generating cash of almost $XX guys rate and the cash. think depressed? we cash of a at the as you open $XX position, not on are danger buybacks cash and I buybacks. remains use much purchases, mentioned, We're million have stock market given basis we're stock in million in I

able And be buying the XXbX-X will we'll now regard. in more plan, We with aggressively. do to stock that keep the

excess we budget So amount the long have remains a undervalued. aggressive don't as we but we be cash the expect as that can fairly and we'll have do, of stock you per site,

we be what recession economic other reflect some the impacted also really the to once threat XX% impact That's which to expense? or the conditions, sales so our or can aggressive uncertainty continue and our brakes cause buybacks. is utilizing of pump XX%. the what cuts than fairly bit A You in to services. our headwind, the there be cost target that still out Our inflation of our a to percentage by, that, even finally speak, SG&A again, economy, expected certain is referred get your that's we'll and more on in little is to inflation negative call to clients the maybe in the below

some that it, call but these perform gets the is we're lower goal place entice SG&A what the please elaborate and to changed I'll is Group -- new brought our our We tender shares. reformed you should to ratio a will on normal, program, that XX% very and whatever buyback target. now, putting targeting, in Board. or at it days, revenue. has we're GEE offer with we members. three well for expect -- That's given and to once a or So just again, doing also stage, the on going things economy a We this back

have a We reinvigoration.

list filed things We all that mentioned at of and noticed we that we've be you here are have we'll be publicly tender will is that quite have offer strategic the a certain looking alternatives things that look we things the to Q&A and stock that the repurchase the will on us of that Board program be and that one of for doing one the a at I'm is. in

elaborate? large know are the severely As since other some any the shareholders that is potentially been company we now, of there that. there There price be could in activist of undervalued there on that none shareholders other that we as to Could relative always of, today, back book? up But none. activities. activist Are out But there know involved that have you are in let me one.

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We have the Mr. Waterfield to Board. and we're joined -- Sandberg excited have

value but was I pleasant. that Modis reorganization. joined And new she's our add was out at a lot for James, we with to members very Counsel successor to to. tremendous from well. our who another this effective round an her also one time have and executive. Modis. to as She, the Jyrl Board post time given shout attorney. was of company We Adecco is And of obviously -- came haven't Board She's after be Derek's last the member, Board Adecco Adecco. She's She Jyrl a think going General Board at

the is impact the does Could what you to elaborate on seat M&A, of strategy. related on Director's which task M&A your have it

and very detailed now, around an or agenda joined Mr. committee, plans in are for not as there But of Waterfield have documents an have committee. as that that no and to been We indicated set we Mr. have discussion robust M&A. M&A a the a has committee. expect Sandberg agenda has

company. the candidate an you or update job Can of question on particularly the availability, level by operations the Great skills? give on

the there's the last sector sector, be done finance, is we've in as improved still mentioned still particularly, -- has XX bit there. in think we to There the the light up, over little and do candidate catching a of I accounting office availability and industrial some months. to extent, to think,

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pandemic. one believe availability then always line before to paramount labor us, reasonable merge be that a But we were our with is great candidate see our also peers. but that trends position in the another participation to beginning now a Candidate is it's rate can right two we like availability those that in back question. and with You rise, and we'll is the

would is what taxes Where income taxes? your your going cash forward, are your $X million, pretax be assuming quarterly

the still of to last of burn had, off. $XX.X as million year, about fiscal We of end NOLs

carried million definitely. and So can $X be of change that forward

cash expect to our that federal we So taxes. reduce

We about state have of XX purposes. for million also NOLs tax

of basically state cash local. now, taxes and state jurisdictions, our cash to So taxes -- our as paid tax are of most income of all in fact,

our overall is average probably good a around just an again, pay state so rates. rate average to income And for -- X%. tax X.X% tax And that's

it we What is forecast, reasonably the company, or Our for your plan sales optimistic that $X the good. the are come we yet, QX call, but relative will to forecast? to reasonably billion sale? we And think be or costs, as good. it's tender to we going about. what as QX Where offer it QX on last in QX it's in sure to is in said be not out talked we're where of We've will come lot a taken relative going

these Board looks as far, through combination strategic the achieved company. so in taken long-term will good. that again, M&A goal and growth. those at And a up it a sales, the organic $X of so That all questions, alternatives. for Obviously, that's billion be -- would by be

Good question. changed Post buybacks? quarter, much how has given cash additional

and we earnings less June market bought You so. since in those. XX, that of assume take release. million from And the shares difference just Q disclosed -- X.X in on is acquiring XXX,XXX were the The under rate or the the you XXX,XXX which could

a be So probably XXX,XXX or estimate would XXX,XXX for that. good

already on about have additional Sorry, the please you -- that. what's it. look tax the assets XX-Q I've take deferred explain missed a Could that. their I impact. It's and earnings information might for at what release talked the are

seen have million Can XXXX, swings? liability primarily you other -- comment deferred liabilities. there in swings number. been wide And on in in they liabilities, of have times that some other had FICA other assets at $X.X since have The and which was

away this It's tax a taken in deferred been allowance a and assets. been now tax quarter, from we've been has addition, gone the In to asset. deferred deferred reclassed -- net tax asset, that's other that against the from liability

in So that assets of causing the impact also volatility the liabilities. other had and those

U.S. and price outside your people find but doing you when know people jobs -- Since I know noticed the danger in a that I've at targets U.S.A. team do been job $X. I is people think amazing an the stand shareholder, only the which

after question the there. still prior of not demand I'm Red There Does Board? completely was little the role mean Chairman a the cooperation agreement. is I another bit the It's Chairman muddled. the Oak's is and to Derek sure understand CEO split this

I'm Yes, here. I've here. been

doing a job. great You're

right. All

governance governance standpoint. closely, a on objectivity a have the read there's of make that one from and in If in members you things much agreement sure board that particular, director the you public cooperation and too companies don't to the the arena board are have independent that for concentration is of you

So to to the separate made that CEO position. recommendations previously Red has separate one of was and Oak Chairman's the

also was Independent if Director. appropriate, we Director in move. the alternative since the -- satisfied any and the has will agreement see action be be Oak as felt Red Board it's appoint it and, taking. And XXXX. the An on been to shareholder Lead Tom press It's And Independent outside was good has a will made that, release, that if cooperation appointed. Lead to looked been Vetrano suggestions by and a also And at a again, And you governance agreement, well. Director

We about And even cooperation up. a was price entered our And take common share personally, we also business, a all together good that working back I the good decision, and towards $X goal of we're set at sights about like it getting have the step into. a to a higher that agreement about felt That's time. my good. question target. but we to I price feel pretty

a $X Of target? price So company can be at this appropriately valued course.

need good We conditions momentum to We as some well. deliver have and macroeconomic results. to some certain have

very was All cycles and shareholder of a which value. to through both and deliver company myself, happen. good predecessor will company this very, with able several I've been

for and observations you in thank I the comments device. all also So the

X.X One nominal X.X or target is point. by or and analyst community day -- a at is call the since about The other so then price, we'll upside see, least it the at the this price, stock let's is $X question, what X? target

too step share offering. have long the at time. pre-equity over of wasn't and we to ago take size were per a So each we It that $X.XX $X

be getting delivering share prices, all value targeted to rest So assured, we shareholders. stones higher won't cap pretty for until a we all the these market are high much stepping to number. increasing and our get towards And satisfied

team, investment. that the look today. call And we our your to I forward So appreciate thank shareholders of to going parties you. for forward, will interested optimistic. conclude part being very appreciate We We things good or we're you and