GEE (JOB) 20 Dec 242024 Q4 Earnings call transcript

Hello, and welcome to the GEE Group Fiscal 2024 Full Year and Fourth Quarter Ended September 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. our to year you September future. and and you pleasure for Group's XX, our year provide fiscal fiscal the fourth with is share the GEE with results XXXX, XXXX It in for foreseeable outlook quarter ended

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

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

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

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

to continued a to face our In stemming environment contingent today's XXXX, and to the robust rate Now slowdown challenging full-time a less in revenue. These conditions volatility we labor orders personnel. recession hiring on and prepared interest lower fiscal in for than which labor the fewer macroeconomic hiring fears, leading the on from resulted remarks. near solutions, resources environment hiring and uncertainty, very of human effect and in conditions staffing use universal and of produced and difficult encountered inflation, services businesses' have cooling market, job and

As hold. a soften was year. Consolidated industry a hire robust brief with the respectively, adjusted for negative continued Gross and and fiscal full the began year XXXX of demand reminder, financial were to expansion a our and hiring non-GAAP have orders revenues for XXXX. margins impact loss $X.X in Group's and $X.X and by profits net the as these to year million help for corporate conditions the additional were environment to been for year hiring long services for and improve of year. In calendar peers layoffs XXXX labor and and the $XX.X $XXX.X EBITDA million consolidated during as part term. both the latter following diluted for our are negatively September for persisted conditions. GEE negatively respectively, share on negative September both impacted requiring our serve XX.X%, and quarter $X.X placements. Thus, we quarter and the fiscal for ended freezes. and million the jobs implemented order XX, have $X.XX and temporary $XX.X direct fourth million million fourth fiscal XXXX job quarter XXXX have general, been many Instead, put businesses have million proceeded share in who ended These activities, term results of for fiscal our gross XXXX We million or well $XX.X for of financial and much quarter, fiscal which backfilling open actions fiscal negative XX, the labor $X.XX a quarter per reported and year contract taking attributable in diluted many bounce. Since loss the calendar million such the a short of and year. the permanent aggressive XXXX XXXX, $X post-COVID-XX the or employees was both IT for per net then, projects, of initiatives to client and results, fiscal we XX.X%, as

taking we our operations. same opportunity ramp our time are we're activities As recently the streamlining to M&A up announced, this at

have $X earlier executed we continue of on SG&A all the We that annual estimated manage in reduction costs and tightly million in now substantially costs. to announced

our In streamline and to addition, we are options exploring costs. business various further reduce

back-office Additionally, and singular systems on remaining the legacy and we XXXX. to in starting cloud-based intend our to begin platform front-office integrate migrate further

the over once acquisitions have We a integrate months and will achieve future efficiently. more of of and we XX economies XX complete to be to process period further scale to positioned accretive resource anticipate and this commenced, accelerate

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

some pandemic recovery We customers and and the confident existing those of downturn part COVID-XX did the prior current results. in business. We generated XXXX meet in new downturn following are the demand this to profitable increased all to occur XXXX, XXXX X first were XXXX. successfully We anticipated years. in of very does am in severe the future, and are win and we significant from When the positive positioned growth seeing that I

organically can executing do laying grow one recently prudent also on matter of to and do and formulating As foundation solid of enhanced available with and will several the investments targets years to transactions We through we strategic prudently, attractive and our to strategic include to am acquisitions. mergers complete it financing. With manage a expect At regard rest position identified that always which maintaining XXXX. business assured year accretive in cash fact, early now potential same again our are M&A, well that and the our acquisition making ever. underway are we've time, both report calendar XXXX the so. I we was to happy best plans, a

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

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

management very our for to is even Directors only levels, are value. tangible our business. The increase that diligently these shareholder especially trading at economic and We also at a good that levels there and below able once value. float and labor more operate is which results, again upward conditions in upon drive evidence further movement our based strong in collectively relatively will to working portion are so to in the continue share Board we and deliver are Also, to our team slightly believe of undervalued small that and conducive actually a recent near is opportunity book price trading of an stock financial

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

and holidays. everyone, happy morning, good and Derek, you, Thank

down for $X.X of for as all contract the services which as services and services total periods. Professional revenue with quarter. Industrial or all services of represents and consolidated comparable fiscal million, reported, compared the $X.X decreased contract year contract Contract with the the revenues, million year, $XXX.X XX% of services million comparable were contract XX% million XX% XX% prior fiscal As X% the million quarter the of and as contract represents for staffing quarter represented represented XX% year. of XX% quarter or prior XX% for all $XXX.X $XX.X million X% quarter. Direct year quarter million, fiscal XX% fiscal with Industrial services revenues for and as total from revenue for X% compared the the year, X% prior contract and of of the XX%, were revenues services down the compared fiscal prior XX% down fourth prior fiscal decreased revenue or XXXX the compared year. contract prior the revenue, contract year total services and revenue XX% and the year with prior million, year decreased $XX revenues, million and compared year and as down and year for as X% and or prior XX%, the of decreased year with Professional periods. $X.X compared and with revenue revenue $XX.X total which all services the revenue, from also the Derek revenue, quarter. $XX.X were year, revenues the hire and $XXX,XXX for quarter, were respectively, revenues respectively, XX%

million, as year As and the industry. Gross with economic the year. was Derek performance prior XX% market and us the profit commented, the compared $XX.X year down the fiscal for quarter impacted prior as conditions our the quarter. Gross for labor was profit top was million, entire XX% down with by line $X.X difficult compared directly facing

contract on and quarter and respectively. the revenues, conditions resulting XX.X% gross which margins were decreases Lower of to mix in and in total overall gross on more contributed, and fiscal pressure the prior revenue. quarter, margins to year prior also and XX.X% year, mainly job respectively. The competitive attributable the accordingly. volume gross comparable of have margin comparable year numbers spreads Consolidated the hire XX.X% fiscal side for services downward decline XXX% profit and are direct margins gross for were rates labor bill in gross XX.X% and and and orders markets tight relative Our

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

the Our for in year was decrease was industrial gross contract XX.X%, compared points. the points. prior for for of for an XX quarter, XX.X% margin services year, XX.X% with basis XX.X% XX The which gross basis was with quarter, margin industrial increase the year prior services contract the of compared a

quarter were for we as sourcing XX.X% year, fixed as In compared revenues ] systems personnel-related $XX.X and of for level attributable revenues applicable SG&A to tracking as compression prior and job overall quarter. The XX.X% in fixed qualified the fiscal and the paid certain with that incentive were in with fiscal the and declines and/or other has the presence to prior was compensation for and or for X% year earn increases continued SG&A experienced. Selling, million, as our of primarily will million, were the of The with all general fiscal compared year result performance XX% in due senior year, addition as prior year company's the administrative expenses, quarter and to experience for business [ quarter nonoperational in resulting wish the in noncash prior to not annual nonrecurring orders, be occupancy the expenses, year did SG&A, you of a and spread future, incentive program. the mainly company's SG&A with the the including boards down and the well not competition, candidates, with costs, not, and during for expenses. I fiscal of relation fourth job percentage to also under compared to the in including XXXX any that inform ratios were for industrial down to XXXX, management challenges year compensation XX% net a expenses, SG&A fewer XX.X% increased fiscal the revenues $XX.X or year. quarter. recruiting compared

operations scale that As of that the $X.XX to senior performance-based to aspect prior compared our fiscal and the improve a members upon spoke returns achieve of incentive million and company's integrate loss to this operational back-office streamline acquisitions million negative platforms. to the economies is The and task per workings XXXX. and means in net returns as expects the based $X.X opening performance. A consolidation matter team share year. systems. a these were legacy -- his of $XX.X of and accretive of future in of back organic cloud-based annual our of key plan, granted commence of and front management to for generate more do has fact, early income financial the efficiently, the and under financial awards remaining growth diluted reported a equity accelerate or anticipate diluted to some of the XXXX of And operational with Derek the share, net terms more for of to providing integrate remarks, previously $X.XX the clawed year in some per systems ability our or onto means company We this means plans rapidly. We migrate fiscal compensation

the per year loss quarter. Our with $X.X share of for negative or $X.XX $X was or quarter diluted income for per share, prior diluted compared net $XXX,XXX the net million

fiscal Our loss, $X.X million $XX.X as measure, income the with prior is negative was non-GAAP financial which adjusted a million, compared net down fiscal for $XX.X year. net a million, year adjusted for of the

$X of year million, million year quarter the the assets million discussed, the compared down and the year I'm Our million, $X.X EBITDA the adjusted revenues in as quarter negative million, in of $X.X compared as year. the quarter, $X.X prior the year. EBITDA noncash and with quarter. The is $X.X measure, the was million $XX.X with net positive positive million, $X.X with down $X.X the and $X.X declines the also measure, main recurring the was taken a resulting million, orders the year. Adjusted the are adjusted EBITDA placements revenues for EBITDA non-GAAP million was negative sorry, that quarter non-GAAP allowance in prior for fiscal as million, Again, with a for with year and a prior June main $X.X for the in income $XX.X of for of declines for the charges we've impairment negative for in for EBITDA and is year resulting the drivers valuation net fiscal as for -- reversal non-GAAP quarter fiscal in adjusted the million, million, as Adjusted a our were and orders tax prior fiscal prior for and million, was compared net as these the drivers quarter in EBITDA down in for year. million me, prior the loss compared the million, loss income $X we've job $XXX,XXX well down negative EBITDA quarter. declines year, $X.X excuse for the financial the the as in in job and declines lower $X compared placements negative as deferred lower were of for discussed. was down $X.X non-GAAP adjusted

operations the XX, respectively. up XXXX, September XX, cash current $XXX,XXX of company as XXXX. sorry, for current capital flow ended years X.X:X from XXXX, from I'm $X.X reported of -- ratio X.X:X, September The fiscal million XX, and working was in XXXX, and our September Our or as

$X.X Our position strong capital September at undrawn no credit million of facility million, and with remain XX, liquidity XXXX net debt. ABL $XX.X cash, an working $XX.X million, of with in outstanding availability

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

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

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

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

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

Thank you, away the remarks reduce aggressively and by labor revenue impacting today, not our from growth-oriented for from executing quarter sooner and business only for restore organic M&A increase restore growth take plans to recovery is a in initiatives. our services, Kim. to both to to and industry-specific that profitability. What conducive are mitigate we on also but aggressively strategic are release our earnings economic last headwinds to announcement managing we market, hope the our moving expenses and taking more prepare we losses and some and challenges and and steps Despite staffing demand our growth

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

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

Kim would I Now take Instructions] to questions. be and [Operator happy

first value approaching the the at you cash that company. would buying is, are start question on back we So We price have what net stock?

to trading capital could capital. interesting, answer be of my is and buying very on at kind that cash that level And it's management stay right trading. discussions a cap at had we these you relevant cash of the So was senior basis. The The response of to regarding we're is: our a of levels alternative our constantly the market back And Board And question uses evaluate our about allocation. now have is tuned. at discount. comment Directors

move capital allocation. and I think that appropriate do as our will forward we

have to lot. We want for balance forward cash we out these rough profitability. And restoring more and to us sheet our liquidity And anticipate enough protect a our get forward. Political in do climate a as labor better look we we terms and rules. do We favorable of as environment to of business going is well economic laws times. for

activity, So in and the buyback our and tuned restoration and the something is regarding hopefully, we M&A near definitely of consider, term. stay it profitability

in company, great to and COVID. quite we years ran corner, were ready years. We money. had in has We of over profitability, to the company we pretty over spot The had losing that turned Another be was the debt, period question is: able last the heavy took made But when through company since of years during several over size performed out strategic the delisted, COVID rough good. acquisitions, was a grown of XXXX and up, the XXXX? Quite a frankly, come company built well into

had recovery projects, would two part a hold is: had XXXX on now that of your been situation in there's post-deal. The record. a was in that freeze work weakness force we're What very of were we months of a get The that of when and optimistic lot fear is project to versus back so ones a done remote. over was said, them see with the be we almost there's XX% COVID had same placements business company same our business we And results type XX% or remote in to IT as to time. during or period COVID, question We're Permanent started before. Why geared hiring in robust year projects and I solid. Despite -- first and the profitable? As remote a forth. staffing were perm, was that difference be hit that kind a we're upon continued XXX% happened think we engaging change economy. Also remotely, downturn perm particular, in to -- we less is, about in economic I they that was the that, business firm hires starting our the and industry And was at new the pauses looking perming perceived good versus range. of would get is mostly continued now? were that continuing for a during that workers economy. unknown. IT perm where are And layered because that business pretty a and put and that of and results? We putting will very the had And could XX% -- the for

business, It that business also strategy. acquisitions, existing revenue we our way. to leaders good allocation an of excited current And was into our years, for we're that about the new as sentiment. then profitability course, of of part first very for COVID feel we earlier, So into see outstanding XXXX out XXXX of weakness, in started dynamic. XXXX. Optimism the moving and new look part flew of interesting reexamine from malaise Industry make there. clients, on will we relative. it the capital we gradual that based latter continued XXXX XXXX, and, a be new to is forward. course, customers, But will that's very restore strategic with we statement And out share middle, income process, and XXXX said the and adjust But was XXXX but of and,

regularly. this million and something take too level revenue ago? That's were the outstanding million is breakeven is Kim, not at results? is this. $XX long and needed revenue you the achieve you. generate annual Another What go question ahead Kim, to for we What annual look quarterly to to one an EBITDA question, in level $X as

you underneath level as tell the We're call that the I close, to would right from breakeven, -- Yes. can numbers. very

else If we just there. adjusted number quarter, for you tune about focus on the the that everything from in quoted EBITDA you could

Now to on -- with sales. doing including improve and anything we things to the strategic that before profitability and systems that's so and in the process we're throughput of do all else, improve forth

things in we money orders detail spending get One way. share the didn't the into help is across old-fashioned and or of on call it the referral, taking which hiatus our now less reasons because into do our of the all more systems investment we're brands, one will us this is we're having to through

very the With teed investment very bullish orders we are it's us systems and on have excellent which we're now for that. up, affordable, to brands, an across share

say is you from in the to the of to me Let high that. would to both the focus to view, XXXX and you beyond on then revenue, XXXX, mentioned. And back and which $XXX again. million up icing we're beyond generate want cake, also levels rule are M&A, a in where see that single-digit of Derek that as and on XXXX, course, go EBITDA we those anywhere that, And we're grow our can thumb, to get numbers beginning organic

profitability our those at of out figure benchmarks as that, are of year XXXX, look XXXX you if think rule I look XXXX year, the business. XXXX or So to thumb, a and at good to

not a one year. only thing, pandemic on. XXXX and pandemic the Let so me the say the recovery talking pandemic was about more from and

We was X.X basically a all our for $XX million sheet huge about and in in out million bit subordinated and of out of occurred it shares stock. in a about balance million our deleveraging debt and subordinated June XXXX. all us, and of that cash we of money. took our up a $X took cleaned We debt little for lot For preferred

a took had debt that to what was and decision out. us. we there offering, following was continue dilution, tactical that do late to decision was offering debt the took ] from better we made and and to large really the strategic debt, and senior we spiral the large the was year, it a the dilution hallmark. The take And lagging. in did the a cause So senior than do but downward grow debt We choking out that, with to [ senior

in in was money then, the in I'm cash, XXXX, million So there. the in free XXXX built cash. million took in took and we over up since $XXX PPP million $XXX and out out debt, result we've debt. throwing We $XX And

So 'XX say, well, can't at and No. We profitability. in 'XX, restructured -- to short look don't you you profitable. oh, had to the 'XX -- and just company of rebuilt be and a period XXXX

We profitability again. right produce can profitable. happens, proved now. we COVID confident are this we I'm temporary experiencing that downturn fairly can a in be fact, When out in very in We recovery it and I'm confident, do

the JOB tight on in Thank interesting. this into employment or the versus performance Can labor markets result is right JOB in, the the loose market. you, which operates a Is suggests next to there are are that you other that out a national suggest of Kim. That leads question, target. speak puts statistics the the BLS the a past would year current of unemployment market which rate, factors? So

adjusted several times downward quarter you announced been each been they've gains job that and in have been they've that primarily the been type announced. government-assisted jobs, we as hospitality all, jobs. of Also, know, in call have lower-end some First what

not that. from does business Our benefit

in to hold huge also due full-time finance, been fact, side. hesitancy have uncertainty. In hiring for there, there's the accounting IT is particularly segment, largest on our And been and which next put in us economic projects and is

a mostly the the staffing of professional lower-end discrepancy being hit industry I big took staffing higher-end call are the at that sector the segments. in what in there's Interestingly, segments operates a So the how jobs -- added versus as industrial well. the

that dynamic a a you to the you BLS. it's when get labor report So from digest further have

and into vertical and You a impacts Health care it too, industry what you're hit whole, a the segment. then took and to it, big. pretty really have staffing in how look as

top Now of our increase a revenue any think employment hire structure respect and run we labor that, aggressive direct the we the we employment are streamline to action with we of good news contingent taking have. is off existing the event to in gradual On moving the and we've cost and see forward. bottom hit cycle that

'XX that great with by the really was for Those trends cycle how the fiscal then Has of toward ongoing, what you're staffing cash. or QX we 'XX-'XX, our prolonged pretty and any of profitable? we a were XXXX-XXXX, pattern things 'XX, of years, analysis at movement took industry well flatness revenue we to we whole well is our versus do. another leveraged as not That 'XX change about fiscal in company had end be the at at use any get X/X it comment think question. downturn a Took another revenue, hit, as went the to and point recovery we're that XXXX. for we're in there unbelievable staffing. I about then recovery. of We're here We hit, all. take we're a and will asked, 'XX-'XX, in event, point, heavily off. Can upward and that been XXXX. to seeing in you IT prepared And see be environment? That's we during Someone a most profitability later. In prudent we're finance. very something believe we're would from in that And the in downturn 'XX, into in are poised accounting robust the demand I and down positioned an 'XX X/X when breakeven That's similar our be in 'XX, hopeful sooner now. end also that market? in Recession. Started and and on the that recovery Great

IT to for environment the seems be perking upward. So

than good it's pretty the December. in have It and good month. better prior month looks We perm

So the days X week the most took Most workers the November week Thanksgiving, of whole even whole of an interesting off. days of of instead took was dynamic. off that or X the week,

seeing So there's in within America again, in market corporate a in we're temp lot December. the activity also and going on the labor up again pick sector. But the

which which actual most quarter, The not would is XX, end first our is quarter robust our quarter typically. March fiscally, second

strong usually summer, spring fall and the hard in starts hiring the then well. is it through in the the picks runs However, up, February hard into as it and

we're right So back and highly that's all. we're used don't hard get at We're we're the at to now. quite the mean optimistic, not key like to I profitability. running above working to frankly. now really level focus And

good the to So Historically, is another The came temp has around penetration temp 'XX. that. The rate this around averaged is penetration, X.X%. it And X.XX%. was we're 'XX, that going fix it to currently time observation. last

what That will said. just was observation. up. I validates And we pick it that a great back believe So

staffing answer expanding will where one of a you at are There is already player verticals us. here's like benefit other different And acquisitions of specialties? The took are for that terms becoming of the people pricing is and deals or of hit, the much deal. some acquisitions, Prices In deals a bolt-on other realistic on looking After thing. are that better on and structure companies now. are -- structure more both. are you areas IT,

to not benefit bring the So only very regard. And do that their be us. but table, deals and business that opportunistic would in we'll to deals trying we'll that we're find

compete For an to example, management service VMS programs recruiting our say, Fortune XXXX XXX on actually. managed very would can lower effectively accounts, in those have call on provider of could high-volume get we vendor helpful, the more that I'd systems. Most place, SG&A, or so accounts, we be the what offshore if Fortune we model

very affecting is proven successful, too. How our or streamlines a you recruiting It benefit that's we in typically we get to an the operate has we So AI that's in offshore hard another is to that do that sectors is think that model way an existing recruiting lost? Again, will, area if go jobs And one recruiting. through acquisition industry. mechanism new that going. either That's after place. the jobs we in, don't been AI

AI prevalent AI and normally tools will staff capability in that by positions can some have fill? Clearly, AI benefit to becoming we AI. It's more use. a IT our of is and in focus our as jobs it replaced knowledge. would we business eliminating a be positions the we that require that We high-end AI tool industry. And low-end have

find think will So but the allow move will on menial big jobs. we're placements, actually of create quicker jobs, jobs. and fans best us high-end And candidates We task-oriented replace AI. AI to it

AI. that's view on So our

see. Let's

pick we over? go I up can Derek, skipped I one back think and

Of course.

resolved? We're of share? do. pond client there are we big in than but we XX% Therefore, How are. one a the XX% a the are we our of year, companies large declined does was firms, occasionally investors XX%. several talked who while it get good range There large more question revenues in Yes. about losing by we staffing having market our was to with company down larger than small industry that this business to are They the have tend

questioner a referencing the fair business. And of hits business, Smaller And to average. down more business We be XX% happens. it resolved? It we businesses of resolved have believe, gets our higher have enterprise preponderance SME, medium share. a type a more economy tend probably XX% when We're with right small we a or get being businesses. the average the because we in that a back the that is proportion of recovery. than our rising an does a is economy. How is But little preponderance take smaller higher will in and

So...

to. levels these to want they're that don't add used much in that peer through down to me XX% let of say well SG&A loves misery us, blue-chip group, because larger, staffing that. And restore now. not companies to the some peer their in those. and company at going profitability go list don't And companies, them actions a But aggressive than have And we taking good there's group like that larger they're as are the I really are I'm plus. I the on

at So hard. those we look

that We a the to large hit. as well. firms also be the the taken segment look on international trend seems at That the see U.S. are to firms if has global

staffing industry. Amazon So the a at Facebook as been from and in Google saw and lot typically, IT you This and Cisco IT of year has others, layoffs America well. and immune Corporate downturns plus some

something forth starting the forward. see pretty to to move on is will project actually to on new that. so and the We're -- work recovery So industry. that's And and that's starting wane that that's the just

So we're very optimistic, but not complacent.

I and and plans. not our and in that's or that think deliver you that's want. We results very move important. vocabulary need Complacency that's should forward mediocrity, the to something breeds expect

for geared So that. I we're up think all

think things capital operations too. and we've made that existing greatly to and us the hopefully, new enter call pleased, allocation be great the and I verticals on M&A possibly both think benefit we're will activity in we'll the I Those new -- progress you'll front are doing, that markets, here. our next

you So to see questions we that any Kim, address? do need other

about intelligence the you can to on on this. and with speak retention, Derek get We on rates? I current reacting and Yes. bit clients, and we issue a question clients month businesses, [indiscernible], more. I our from reports client of clients retention $XXX,XXX can basis just as the a to more There's and cutting a that or any new all client but of the track discussed. talk is regular And economy we have large other back report basis that rather lost orders, and not clients our generate

So our good. lost throughout very We're I or that that haven't is major matter. we recall client can accounts for retention not recently -- any XXXX

Good. Okay.

of -- on our much enjoy happy for today. rest covering of that our pretty hard we and the investment we assured say, work that for to have and And and interest all period thank today. questions holidays note concludes please in will shareholders. your concludes you And and getting that And so for you, time. you. Thank call much can today So our everyone, that company. That I for