GEE (JOB) 15 Aug 242024 Q3 Earnings call transcript

Hello, and welcome to the GEE Group Fiscal 2024 Third Quarter and year-to-date period ended June 30, 2024, Earnings and Update Webcast Conference Call. I'm Derek Dewan, Chairman and Chief Executive Officer of GEE Group. I will be hosting today's call.

Joining me as a co-presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer. Thank you for joining us today. you to XXXX you period XXXX third XX, and pleasure for Group's ended fiscal our for XXXX, fiscal outlook foreseeable the quarter provide year is in share of future. GEE with results June the the It remainder our the with and year-to-date

XX, we are June March ended we the XXXX, we year the quarter, respectively. comparable to XXXX. refer to we assume forward-looking XX, SEC will prior the X-month statements. refer and are when statements will and the no in our quarter refer our about future uncertainties to These represent X-month under Some to I to Statement sequential be ended periods Cautionary uncertainties we quarter results being filings year-to-date, XX-Q, as forward-looking, presented our this or the statements When this statements periods described make comments harbor caption or year-to-date, press June earnings are that X prior or Kim below and Form release Likewise, the or and XX, the including forward-looking from may made referring call. prior other We this considered judgment captions These Throughout future under the harbor. risks of year-to-date obligation or risks ended and differ what current which forward-looking prior may subject our statements, periods and X-month the safe Wednesday's most and predictions, regarding on quarter to safe referring XXXX, holds period presentation, estimates, other forward-looking and and expectations or actual today's months respectively. statements, to refer to performance. the X-month recent update are XX-K materially

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

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

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

leading remarks. from to on environment we rate very macroeconomic to XXXX, interest prepared and today's market. in effect hiring hiring our and personnel. In labor challenging contingent have to and economy employment, uncertainty fiscal staffing universal of Now labor full-time have robust use face cooling These encountered businesses conditions stemming inflation services, produced of the a on less slowdown and near for volatility difficult the and the in U.S. conditions continue including

for results year-to-date. and year-to-date and have quarter These per respectively, a $XXX,XXX we a hiring EBITDA quarter ended year-to-date. both serve by help $X.XX continued We $XX.X been labor implemented was and were temporary and proceeded revenues hire hold. of projects for diluted and the conditions. Consolidated net million million adjusted and impact hiring Gross Instead, soften demand much and $XX.X post-COVID-XX negative million negative XX.X%, to were of profit year-to-date. expansion for $XX.X As XX.X%, which for IT million $X.X and million our brief or have robust general, a loss environment for $X.X these been in $XX.X quarter calendar margin demand industry share as Consolidated loss million quarter layoffs additional put have Since gross businesses XXXX, who for labor direct both for such and requiring activities the then, our year-to-date. calendar orders this assets conditions reported respectively, quarter we of initiatives the non-GAAP fiscal quarter Thus, on per and negatively of attributable assessed a goodwill of our and net for taken services, and Due client and that have permanent prudently and our or the impacted our job portion was the diluted $XX.X to following bounce. macroeconomic the XXXX, $X.XX freezes. impairment our in June of contract million and net placements. many reminder, a employees with in a anticipated peers a near-term intangible impacting the charges year-to-date. account many to the and for XXXX quarter as conditions corporate the as in third substantial share financial well the have and to the for part latter XXXX noncash current began losses services XXXX, XX,

by wait-and-see taking of are under are term. results, to no both and term aggressive any and improve sort posture, our long we means short We financial actions operating

million process. this and As activities the our an $X M&A recently are announced, to at we in operations costs the SG&A taking out annual time, up our in estimated opportunity ramp taking while same streamline

migrate legacy cloud-based Additionally, further our front singular office into back we systems will and remaining and integrate platforms.

next have scale and to XX achieve be to We and complete will over anticipate to positioned process accept future integrate we this acquisitions further XX resources morately. the accretive months of economies

field and as these all help grow them pursue opportunities In aggressively revenues. well addition client to are to expand business as our new to with working frontline we verticals initiatives, leaders the continue closely across near-term in to

formulating within and positioned that in in results attractive acquisitions accretive acquisition well targets solid remainder enhanced At I when XXXX. seeing to prudent several to the through the strategic increased we M&A, same to existing future, rest on are financing. from this very also we which recently investments will business and an I manage available customers calendar new fiscal the and regard are win we positive prudently, demand am anticipated of mergers plans, with assured some am that and are making executing recovery are report both always our expect does occur organically to With the include cash acquisitions. time, potential and with contact happy a position and complete maintaining strategic meet year to business. our now grow confident We underway in we

repurchases on As of we the just December of excess as of in as future, alternative our of capital allocation Share be prudent. beginning the know, modified component considered X% paused outstanding you an having shares repurchases XXXX, and considered over repurchased use program. alternative always of XX, the our share will strategy a capital if

manage of the and is Before cash as strong The grow substantial positioned acquisitive. with previously has want to balance challenges and it I that a quickly reassure GEE well to outlined and I capacity. over successfully hand be and Group these company restore will we borrowing sheet profitability growth everyone possible. through as form to liquidity in Kim, internally

based once able and operate of and good to a portion float continue even actually upon is is trading gain trading restoring very relatively also of there opportunity economic of in undervalued more value. a further share labor and share near and conditions and normal is at especially recent Also, and evidence stock for we our primary below We goal so upward at Board growing our shareholder our these the that the slightly are a tangible Management levels, small book levels believe in that Directors to only price movement value. improve.

best in thank again on most elaborate important Officer; time, over our who the factor turn call further service. our that ensure and Finally, of year-to-date wonderful our Thorpe, will wish fiscal President They to company's very are and and to I'll employees I day work success. Financial our achievements third They this clients associates. a our Senior and dedicated driver extremely get future every key the our once Kim the XXXX prior quarter At Vice hard to results. Chief

and Thank morning. Derek, good you,

as Hire XX% Contract $XXX,XXX, compared all as compared million, total the the million were XX% year as XX% or the Professional million and services represents with and the services were increased services X% were compared of and contract Revenues revenue with services quarter or with sequential Professional quarter. contract with As and with X% and contract quarter. comparable quarter. revenues XX%, and XX% down as revenue million, which staffing as XX% as or down quarter this $X.X were respectively, compared the year-to-date. the services total for quarter. Year-to-date, prior all revenues the the $XX.X compared as industrial $XX.X year $X.X year up contract -- prior all Derek contract of with $XXX,XXX with prior staffing for date. X% as the services revenue services all were $XXX,XXX for Direct $XX.X year decreased $X.X $XXX,XXX and services which with sequential of X% XX% contract the those XX% revenues prior year revenue again industrial the compared $XX,XXX million compared million million, the services year-to-date revenues of prior quarter. million revenue prior represented as or Professional sequential XX% Professional Direct or were the prior the services XX% contract the Industrial reported to revenues for sequential and compared staffing as industrial decreased down professional revenue, prior services quarter. up revenue, as services quarter XX% quarter and the XX% contract year increased revenue $XX.X the quarter down with decreased X% million Year-to-date for revenue million, of contract contract services of and and prior consolidated X% compared total and represents to hire $X or X% decreased decreased for and or revenues quarter. contract prior XX% of XX% down all revenues revenue the quarter Industrial XX% periods. as or compared year-to-date or quarter $X.X prior Professional prior with revenues year-to-date. this contract of compared were prior year-to-date. with represented quarter $XX.X X% from revenue quarter prior revenue compared industrial year-to-date, and

compared by referenced the XX% with quarter XX% profit us line year and Derek prior $X.X compared as by top conditions with in as staffing gross down prior the directly million, Our gross $XX.X down the market facing remarks. economic profit. the performance for year-to-date profit. was profit industry was Gross and his the was year-to-date Gross impacted difficult million, opening labor quarter

Our services in profit compression the respectively. and to attributable to revenue overall are and experienced margins and revenue, for margin total Hire margin some spread Direct in in which decline XX.X% our contract XXX% to mainly quarter gross businesses. and the gross The year-to-date, relative gross also were XX.X% gross decreases has

of was is in points. was XX in candidates costs decline employment inflation other The in with XX.X% year-to-date prior combination decrease contractor spread year basis the margin for to margin recent gross basis services a year-to-date, gross increases for in orders resulting contract decline for services professional in points. professional the due XX% competition margin prior The quarter, in and associated for a with the to rise XX.X% XXX quarter compared compared with for contract as Our contract gross XX.X% the services compression. more professional and pay part of

basis profit the margin compared for up and quarter quarter. of as points, respectively, those gross with gross Our XXX prior sequential were $XXX,XXX the and

Our Services quarter, with basis was compared prior a points. margin XXX XX.X% for decline the was of XX.X% the which Industrial for quarter Contract gross year

as with competition Selling, job to the the for the mainly or to prior date. increased fixed compression. quarter sourcing were compared SG&A XX% not resulting and revenues quarter qualified prior core the candidates increase year-to-date. for challenges with others, were tracking The relative XX% with of fewer attributable to extent, addition personnel-related In business, expenses. associated including compared revenues revenues year the to became well compared with in expenses higher our down administrative certain XX.X% expenses, continue and down for in of expenses year XX.X% year-to-date relative XX% million, prior SG&A SG&A subscriptions occupancy for spread to to proportionately year and as industrial compared year-to-date as general recruiting costs, face SG&A with expenses we lower to our software and for as as lesser is quarter revenue prior XX.X% the million, expenses applicant and which the sourcing $XX.X a and with quarter. costs including was $XX.X nonrecurring were orders,

annual will and to our annual quarter our and clients As expenses where and the facing $X and personnel The costs the while avoid management cost this unnecessary these initial quality and process, environment savings in Derek necessary streamline taking related actions eliminate and flow comprised occupancy actions and in needs operations reduction of preserve expenses. to for and of began approximately take preparedness by our shortly of costs and million is of place an reduce be followed mentioned, $X.X job maintain improves. additional expenses monitor cash cost million routinely board to in service SG&A our million. and We to and business when to balancing $X.X

Of course, our paramount of of GEE the employees taking to Group. care is success

the economies and quarter million to or of more $X.XX share, the our reported accretive task in down quarter. Another for or is achieve platforms. of complete integrate opening million anticipate $X.X We spoke financial diluted do financial expect plan prior singular as $XX.X streamline $X.XX legacy and operational loss net to providing the is systems in income per for key and $XX.X XX back-office more this returns months. and in terms scale aspect accelerate to of integrate to means XX to of his and per remarks, and that We means to operations mitigate has the efficiently year this future cloud-based with our remaining net rapidly. the front share compared on The million diluted of company acquisitions next of Derek to the

million year was million year-to-date share as prior $XX.X net Adjusted as income to is for compared financial of with Our income $X.X diluted $XX.X loss down the or measure year date. $X.X a adjusted million, compared share, million the for negative per down $X.X or million prior with quarter. net the diluted per net quarter net $X.XX income, non-GAAP $X.XX of which million for $XX was

income, we the quarter. net year-to-date. the year-to-date negative of $XX measure net for the quarter as a main down million the prior EBITDA as addition, for of adjusted loss compared year-to-date million adjusted the on EBITDA, was $XXX,XXX, allowance in financial the tax in non-GAAP with net loss prior in of compared $X.X and prior declines for the Our deferred net with million, our million, income the with in large a reversal down $X.X is year million quarter the our or quarter were impairment was Adjusted the prior million noncash $X.X year-to-date. EBITDA, asset quarter. and discussed net down $X.X charges -- in declines compared as the negative million the year-to-date. orders million negative million $XX.X for valuation our was income is $XX.X down financial and positive which well revenues our the drivers the the for which as as quarter a resulting the in compared as for was $X.X allowance $X valuation non-GAAP year measure, also million Year-to-date sorry. and former for $XXX,XXX, prior prior was million $X.X $X.X with The

prior adjusted drivers are orders year-to-date. of quarter the the as discussed. Our for the in to $X.X and compared million adjusted EBITDA the $X year-to-date revenues year-to-date and Again, for EBITDA in as was decline EBITDA the we've declines million million, negative $X.X and down main

cash X.X:X, flow, of million year-to-date or non-GAAP flow XXXX, the current X.X:X XX, activities negative which from X.X:X of in March reported measure a XXXX, million and free financial working September from June Our XX, capital and up operating negative cash the XXXX. as of negative XX, $X.X ratio We for as from at year-to-date. $X.X is was up

cash of position million of net and working credit with very cash, outstanding capital, with undrawn in including $X.X million, no June liquidity facility debt. $XX.X XX, million remains Our as strong our of an XXXX, ABL availability $XX.X

were per XXXX. $X.XX, of $X.XX as value and share book value book net tangible per XX, respectively, June net share and Our

cautious our had book results effect Our while And book capital near-term book were preparing net our as reminder, outlook, working share and respectively, book tangible share charges value in remain noncash net and of are Again, and were XX, or for per value. obviously result long on conclusion, share tangible the remain September assets, our tangible a the disappointed XXXX. optimistic somewhat the of net net $X.XX the we cash net quarter. value long no term for per value in term. and in primarily impairment the was these In with position, do $X.XX, as we the taken per decrease

field generate Our in affecting have as leadership markets. experienced under our a demand staffing attributable earnings and conditions previous is to can favorable Collectively, for our management industry. more demonstrated team we times through managing company conducive that COVID such consistently business labor disruption and substantial downturns the environment difficult the more and economic cyclical

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

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

release headwinds and impacting our growth are is Thank initiatives. also market, week aggressively profitability we plans restore we mitigate What for executing growth an M&A to earnings restore and be for you, Kim. are staffing losses, hope managing prepared moving our and and announcements on out Despite both challenges only our away industry not and you economic take anticipated and the from demand to our for organic and recovery. services, to more and from business preparing press aggressively sooner a today, by last our but conducive remarks strategic that prepare we

of work maximize continue capital to the evaluating our for including shareholder shareholders, Group's uses strategic returns. GEE We to benefit consistently hard will of

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

follow-up and back question to rejoin additional time, you ask and please? Kim needed. the the happy first question for be queue to one will would Kim you questions. take I Now come this questions. a with At your as answer Please we'll just

you're to have the everyone. It we We're to ask, questions. a apologize to if questions had answer period there? the the question-and-answer so make questions technical submitted. or I that bridge Okay, administrator answer I'm interruption. to there well, going a beginning appears May everyone. to moderator, to I going know and out to or apologize not. I our I moving these you our attempt to off. We got answer don't Derek is now. I Hello? cut Apparently, still are, that been I'm for

the the stated on that a achieved regarding refers by first presume, Q&A some call how of XXXX was to -- that. value question we and the somehow The achieved or picked Derek made comments the QX I in Company up valuation on

I'm going excluding now. the in our see can I value wait come zero value joins, there's the stock deferred comment book assets, on with that's back stock. Basically, trading and the of on believe, if $X.XX, Derek to of lack shares liquidity I'll the that is sitting of of and given the stock, and right the Yes, one. tax But being to is business. issue most value them. the volume main to of I also or the really low At tangible right the top value, to

of $X.XX plus believe a yesterday. of amount of demonstrated reasonable other to this generate now in multiple, And the million impacted $XX On where periods at we chronicled hand, this that, should it point company conditions, we million widely the at which that has are we're any share. much can closed staffing that is I industry, sort like not current higher get trading the macroeconomic us across by than being that $XX EBITDA.

that good So the still longer that, fact the a believe discussion hold we stock is steadfast than buy. but to we

to define acquisitions? accretive Can you pertained as describe

after would and our, acquisitions, most that are the short earnings go would Yes. acquisition, the profitable and the acquisitions from to be a very, get add at our to Accretive very EBITDA. time share, our per or in mind,

conference than last various shoots, discussed In seeing promising, yet better results you that the May, April call, we're very was poor. the and very remain green

the Those occurred remain at well June some lower very which why, general, than our We said is out earnings increases having quarters conditions market quarter. both The We've the in did for outlook that, on and on in now. were cautious and the right are now. that in in stepping typically our looked the comments. But of the quarter us December quarter March more have view relentless release as not carefully. versus we're as this taking quarter March commented comment right a

as a we'll profitable confident However, that, long-term, again, back put get recovery, the on the very for we track. into Company more very we're

Adding to expected that had you different last noted the produce question, substantially summer results. you to

economy increasing for rate and returning, early That's true. an think, Fed is or, is reduction, I in interest Fed rates -- layoffs, increasing the instead of by hiring economy freezes. down. It's for having some the more mean, signals actual that the is one adjustment and interest economic increasing and we're summer unemployment, yet, signal, example, looking I the of the hopeful for of the announcements still

buying insider small? a year? has Why so shares than Less million been this

stock insiders what and couldn't I did don't year the The if a already, I results can't we've And blackout the XXXX, since I this -- will shut year buying period. kind been in of Company every below it of insider I when comment ends. of world occur period the own down. are know after on boatload know, a blackout

a economic back a of $XX value This not the historically commenter on was that's value have this company was different below company? more creation. may an enterprise sense aided followed does year has XXXX just time, COVID of at a between recovery. it public shutdown let not are main we're I been acquisition… the go that the a in But only of this shareholder difference right million to more the COVID -- $XX a say think two. you they have me our results. results long results the are in now remain Acquisitions at results. And for that million, V to The malaise why going make meant and there, With below and our by If our XXXX, V look but year

to the I on glitch. would add that. I've been

recapitalized, was prior rehabbed XXXX dying strategic and company EBITDA speak. beneficial. the acquisitions so XXXX on record We the to in reality was to plus made adjusted have involvement it; been my XXX vine, range back million million. roughly the in a $XX year, is that in So, this revenue

history, we're a So, succeed a that lot reality new model. business market to at public that beefing shares as fresh previous existing debt, was a growth, owned as of affiliated of verticals, share prepared question, we to company well no the if different and It my bring provides members pay a insiders to ability necessary bring other available. There's this also stock. our I roughly capital acquisitions asked talent mind, the million up customers, that verticals, higher have off for public buying, than company through own on company and and being which successfully, family over person insiders public dollar. company been they for fund based a raise at is the come And did and personally much in be basis will and when immensely. doubt $X trading my part the opportunities

gains equity optimistic I'm So, the time the all value bring value they're realize to the shareholder shareholders looking succeed and along very enhance and that will for. appropriate on that I at

unusual with financial the Great that dealing right Stay. A It's highly environment a It of in and our has environment commented new not that recession. been we're and the and and markets, on it's including we acquisitions customers, profitability, have bring and flavor a So, then new recovery. that not industry to V-shaped business adjusted situation my recession very a staffing for it's turn is profitable fellow capability. have CEOs to deep of opportunities deepen we the delivery believe capitalize lot now. called vertical unique our a But that

want to a long but So, the on a it question. one? move I was And next great you thought response to question, that's the to

next question. The

You over end mentioned year. recommending the What complete reasoning strategic acquisition review was for behind going buybacks? the that you to acquisitions the were of the

you and that, I'll in. chime let I'll Kim, handle

they're the that ones consensus look of at its for take given of good And the be its we're making good Company. and believe but shares. reasoning buybacks grows The good can at that, growth grow That of of and the pick our back buying now, business where are potentially long-term is a the buying the market acquisitions, back it's and companies Sure. because good buybacks They're was to Company can with shareholders, at times, was that helpful, theoretically, remaining, the that of foster is situations businesses a do virtue for not Board. multiples. We right and while, environment. basically be can And time acquisitions. by by of doesn't buybacks. It to along accretive for earnings particularly the in That are it the probably favorable the we current advantage we advisors. struggling helpful acquisitions up way time smaller the the look is, consensus

strategy. Yes. So, Derek. acquisitions And what's acquisitions versus that's Go really behind buybacks. by a home for the way, have always ahead, been

Company was matters scale me that built in and this me let business. with add acquisitions, the let Kim, Yes.

with historically. table talent Company million your $XXX And clerical percentage the organic the to but buyback an deliver Buybacks by and my industrial this been growth. my its you're did top-line SG&A dilution from that bring and the to economic, said, as increasing was in augmenting revenue. a a cash metrics been really So, That's the are I division. higher the allows growth I to to of operating predecessor margin. experience lowers selling income, experience flow, and company, mitigate That's acquisitions continue company. And able my the way,

It's have this time, recent buy cash So, environment. from believe operations, one there when to particular, I back add and we negative times. at appropriate In that flow not shares although which temporary, appropriate. it's buybacks that in have are times of we if it's necessarily, are the few

acquisitions, pricing back to accretive through table reality, the the to EBITDA bringing seems However, to adjusted by way, have in marketplace. and the

we're better seeing sure. values for So,

you gain an share transpires to don't or earnings want times buybacks. And comes accounting acquisitions, with share what EPS However, you per that, not increase from but are economic there now. mechanism reduce I is it's do say appropriate count, to

get that depending an going get to back if open-minded, transpires what services an from services demand we labor for as option we our upon and we're increases. economic our market for and have very better forward, if a we However, prosperity, standpoint,

for So, that answer that's the question.

You next want to one, go to the Kim?

see question. GEE be improving I conditions? very of conditions adjustments mitigate through quarter Do to market we XXXX, volatile. has feel XXXX. next down-market the the that industry the The the evolving Do market calendar second The interpret the mean continues market worries Yes. which to staffing made last ample may that quarter. you SG&A to The quarter prior of to fourth

I'll push that one.

adjustments today. the that SG&A believe clients made flatline, we've We've stubbornness bottom, peaks start of on clients special seen of not expand. quite have projects engagements to good some valleys We seen behalf some based course to we and So, we've and prospective we flatlined the of there's upon activity. volume off also that or that toward level but of and at

So, and it's an been down. up

SG&A produce will However, we're level we adjusted that profitability. the forward stabilized in going have to

on in XXXX, industry test. And Most However, if and in need recovery, the to XXXX will business the remember, there far manage anticipate In all that prosecutors adjustments, for life make that feel not other share. we don't market talking very, today. do will we goes, expeditiously move waiting that see recovery. the XX, the have for very even should by that our the showing if we bellwether sure, for We're I'm not the going of quarter. we that And about be of start what quarter, the second improvement the on the it's back quarter We're growing, recovery will. as of it, signs as but industry's based for sitting to see, see June aggregate the we to the and industry.

in servicing other those are the business market people So, we're that after customers going and share customers. from

we and menu our our Expanding depth and So, actively bringing new in with acquisitions, expanding services bringing relationships going after higher strategic customers. in existing new talent, us. are customers, improving of for through verticals, margin our

XXXX, for the we recovery. sit then, So, in miraculous We're just for table the are Since ‘XX, things dips not ‘XX interest wait and that expansion. the have environments idly by those through been economy. now. I've have business that to going not some conducive rate XXXX, on right been

So, we're prepared for it.

XX. COVID

that. through a banner in right we navigated the XXXX. there And industry. in Remember, Yes. a softening until had mid-XXXX, wasn't year COVID-XX, we

see to XXXX. it we started midyear in So,

perm We volume. have a big

to we some for Our an permanent take back as see if million. viable in get do placement that. an that is we banner That now. to around averaged perm that results. believe improvement internally to right get profitable that it approach million, year, around normalized that, $XX good that still that us, million, perm target company, business. Again, business. track $XX solid in add to that arena, perm. to target, to is drastically anything? of very was direct want And $XX of hire have or as profitability under level, million. We aberration million that respects. But for the super seeing probably close for upward. Kim, to moves talent think And and we we're number, $XX as we $XX But like high profit doesn't we're million million, to a much us is a you We're XXXX many life $XX has we'd record that historically to and million, and on us. back pretty then the been was as improve a operating drive as XXXX approach We we're we that $XX a to with good signs million back $XX.X in $XX

that and need release in also in remarks done in things sorry, earnings, you with savings. cost we week, operations in last I streamlining to well press announced will toward the agree and mean, with release we're I a view terms be I I'm some cost No. effectiveness our prepared of as as and the of know, always do, think you what to do what the to, said. we our

elaborate on next improvement? question, this you The conditions Is of in sign You the current can one. sequential a growth take you're seeing that could markets? end

just ship a conditions, I the little this say can us right bit things sign inside say it I stabilized to improvement. it to December the say to right now we're of recovery not a and more we normal that robust and at do economic we again. believe these in see level. Again, for that we're economic But the again, quarters. But not that is But to that this that again, to future that doing a unnecessary generally March think a enough I The and we a a improvement? thoroughly have what there's the we've costs. I'll normal the we in prepared mean, and as point. it avoid we've through and we do gone if growth, think losses sign as and is times, quarters September sign is current conditions sign mean, expect of down not the -- than good I this fairly we're moving to at that, prepared Yes. do June are now. we of believe I normal to have to difficult we've maintain said, be are would it's is enough Derek if sequential given then

have doesn't $X.XX over question, funds that Derek? even like next The and higher insiders $X? bought and other Company to the much take over want You

trading much we're Sure. quite we're our in Obviously, share price higher Yes. could from for I increase that an possible, we're things doing the of at a there. the We right quickly and we'd basis as we than as gains see many definitely And like to insiders. to believe confident get realize investment. have

We someone to back what have acquisitions way well, to our doing. mentioned, and we're to or and prosperity prosperity, that's Adding value earn help.

of to the acquisitions we're business facets different bring the at of looking Some us.

is of recruiting Some it capability.

it verticals of particularly is IT. in improving our Some

business. and new to is it verticals, our expand can in, a customer of beefing base already that to penetrate table we bringing Some that up the we're

profitability, a yes, in and that share improve answer is will from enhance basis achieve we're the are have that gains trading will cause and the than and those price. at we turn insiders So, the things higher investment. our much we're which believe But doing objectives should our

is. Company? conditions saying required favorable you are are to grow question What next the The

everybody's mentioned -- a It's we saying wait we and on stay. And well already clinical. and And start business see. the just stay our Derek the by a big again. need on robust I just Company, favorable economy labor a or out economy that market. thrives it's great called now

in or of or success is cycles. leading change the other economy usually changes improvements the Our indicator a in

to need to in back hopefully and normal to a in add to return and want just economy robust we're the you we way business. that? So, Derek,

Sure, yes.

hit macroeconomic stay sector it's or it, that instituted The factors is backdrop hasn't. historically told does is that that this there's is the in interesting layoffs. the have took when the industry a great movement we the So, it in as well tech staffing And activity companies employment. which big and there's have

let they've and they've go people so and So, halted projects forth.

So, weren't as labor full-time the contingent hiring isn't demand for hires they there, and well.

loosening been improved, starting that. hit So, it's business the seeing wallet, has back. Projects We're perm side a slower in so to are process. speak. with but of the the got a Perm

Some of uncertainty. is economic it

U.S. not that areas And have particularly potentially, it jobs global been do care interest assisted us, is of Some employment, conflict, jobs, rates, economy. like hospitality, benefit, geopolitical in high issues the those or issues, and that we're jobs way, the inflation, in. in health improvement government shown that the uncertainty the reports internal by about government have verticals typically jobs,

much for usually that the and back. to first change, and However, in staffing economy, industry downturn better. gets anything first need in we a all don't of but group We're perform that that group comes hit moderate the the will the improvement

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confidence but a that stabilization need that's can though much with don't backdrop better we to business get investments forward. we much there. of So, change executives a we better whole We when need better. a need results, and lot do And make to move get

The reevaluated return price, normalized returns compare the we, are strategic buybacks have at buyback do next returns being which the process value M&A? stock provided how commenced? by assumptions today's about question, down -- What analysis? since us, used shareholder review returns these or initial to equity returns fair prices earnings on Derek, XX% share is you, How these from share stock in

have the losing and shares you're agreed to that, negative management thing Board buy prudent flow it's have I back that, cash not have One senior and when is believe, losses. to or

cash in So, position plan. point meaningful strategic to spending not the buybacks do at this our is

toward us. them better, that result We what get of call any will analysis would economic more when and allocation model use? returns and kind deliver things capital evaluate versus buyback a otherwise. I shareholder for Now whether in better, option And viable what or that's different acquisitions offers we or be do tender

looked negative. Kim, you prudent personal not of many are it is we But our looked cash think directors move that continues and of when leadership flow's on that's thoughts at, forward. that? been at position, my So, be high team to all backs own that as your senior I have and

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it's think I a So, balance.

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get that we'll flow the a future way, positive back by projecting confident are to here. distant And not and cash Kim, we the and

that's too. think I important So,

You take want the question? next to

you been larger pursuing acquisition? Yes. companies approached Have with any an

overtures question that from companies? have is, had presume I we larger

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outlook, a basis, better brighter macro backdrop on global stability. the performance I industry return think profitability, by a to better then Company, and a a

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to the question. Let's move next

stock on the yourself? buyback shares why sell if in bet If and too? why else would undervalued are trust you Because yourself, is undervalued someone and their not

more had can activity, buy someone tell blackout shares one you and think our director can when I we'll I some the we million said, buying too. recently, a orders buy stock. Well, buying lift back we nearly buy periods. We insiders bought

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to You to want move the question? next

Yes.

downturn, there be years. for confidence recovery? growth public a number the you to sign While the this Could lower rates business have at relative the are gives that peers? losing of is you no What going been the see a of doubt industry revenue end through can a strong share a peers is GEE's entire that staffing

Kim, I'll you let of part handle that. first the

Sure.

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were that? right outstanding we months. Derek, We augment additional XX advantage tech have in and next take less businesses levels certainly margin it while to business, now the to to have between have high with than now, to before of back to add we and intend and want we now the to then those want you get we and

hit think it I just you No, fine.

GEE much at or looking moving technology And How reducing does is influence more expenses? have application of be operating to question. in driven? technology technology Next

and Both don't answer of why I'll us chime start could that, you so Kim, in.

Sure.

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that? to to of are kind the that business. Derek, things add those improve our So want you will

Sure.

have fill and shared to of in throughout made country. already orders consolidation We effort recruiter completed databases substantially an so that use environment a have information job the we our can

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I one, that's So similar company one think and good is that to emulate. is

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our and look peers, at them we benchmark we going at against we peer there. So, on what's look we

were Kim. senior pretty is you that's based looking question -- that higher much next it, one compensation. I targets People proxy. that we're profitability achievement than So the upon did question tell of filed see, currently much executives program we at. bonus you can that and on I revenue What's growth a at

those at performance based on not want that? to if So, you're proxy, add are historic numbers, you to the looking current. Kim, what you think I at, look

stock equity was compensation our The XXXX. -- other one And year's best fact, the years in ever. of the independent was actually back in in be recommendation plan payout place were XXXX, the they'll XXXX of the greatly, negative. because economy? shrunk was compensation give pay, consulting which function with directly the result performance, of and this incentive this our to actually and In year, XXXX management primarily words, will of results really committee done much the compensation of The the it benefit of compensation put Mercer, was and in of XXXX XXXX firm reporting

to X- year, we our to the we and fiscal those to that, the what's need do asked to look to be, following what deliver and then I five-year need people kind have think what Company that Somebody's do way technology where in does vision and look does need, is verticals, future results. trajectory at place need, talent XX-year outlook? we a at what sets at skill business achieve that, we look it what the as does to to of it the and

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Don't be to like kind used a I think money. any like losing that's it. of I'm loss critical. in to not Don't situation.

So, hard there we we're questions? else cover can on that. Kim, these anything on that working is

I Derek. think it, that's

one repeat other question. have No. question. a was We It

for for improve, like I'd to We today. shareholders, our are we of attending that concludes to forward you webcast thank opportunities everybody and your our appreciate and today. So, for look That those company. of interest to being owners