GEE Group Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>GEE Group Inc. filed its Q1 2024 10-Q, detailing financial performance and operational data for the quarter ending December 31, 2023.</b>

AI Summary

GEE Group Inc. (JOB) filed a Quarterly Report (10-Q) with the SEC on February 13, 2024. GEE Group Inc. reported financial results for the quarter ended December 31, 2023. The filing includes data related to Professional Staffing Services and Industrial Staffing Services segments. Information on stock options, restricted stock, and warrants is detailed. The company provided data on operating leases and finance leases. Details regarding office equipment, furniture, fixtures, leasehold improvements, computer software, and advertising expenses are included.

Why It Matters

For investors and stakeholders tracking GEE Group Inc., this filing contains several important signals. This filing provides investors with a quarterly update on GEE Group's financial health and operational segments, crucial for assessing performance and making investment decisions. The detailed breakdown of expenses, leases, and equity instruments offers insights into the company's cost structure, asset management, and potential dilution.

Risk Assessment

Risk Level: low — GEE Group Inc. shows low risk based on this filing. The filing is a standard 10-Q report, providing routine financial disclosures without immediate red flags, indicating a low level of immediate risk from this specific document.

Analyst Insight

Review the detailed segment performance and expense breakdowns to understand the drivers of profitability and operational efficiency for GEE Group Inc.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Quarter End Date (Conformed Period of Report)
• 2024-02-13 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Fiscal Year End)
• 7361 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• GEE Group Inc. (company) — Filer
• 2023-12-31 (date) — Conformed Period of Report
• 2024-02-13 (date) — Filed as of date
• 7361 (sic_code) — Standard Industrial Classification
• 904-512-7504 (phone_number) — Business Phone
• GENERAL EMPLOYMENT ENTERPRISES INC (company) — Former Company Name
• 1992-07-03 (date) — Date of Name Change
• OSHEA CHARLES M CORP (company) — Former Company Name

Forward-Looking Statements

• Unallocated expenses will remain elevated or increase in the next quarter due to ongoing operational adjustments or investments. (GEE Group Inc.) — medium confidence, target: 2024-03-31

FAQ

Industry Context

GEE Group Inc. operates in the employment services industry, providing staffing solutions across professional and industrial sectors.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting.

What Investors Should Do

1. Analyze the revenue and expense trends for the Professional Staffing Services and Industrial Staffing Services segments.
2. Review the details of stock options, restricted stock, and warrants to understand potential equity dilution.
3. Examine the company's lease obligations (operating and finance) to assess future cash outflows.

Year-Over-Year Comparison

This is the initial filing for the period ending December 31, 2023, and a direct comparison to a prior period's 10-Q is not available within this document's scope.

Filing Documents

• job_10q.htm (10-Q) — 543KB
• job_ex3101.htm (EX-31.01) — 10KB
• job_ex3102.htm (EX-31.02) — 10KB
• job_ex3201.htm (EX-32.01) — 4KB
• job_ex3202.htm (EX-32.02) — 4KB
• 0001477932-24-000679.txt (&nbsp;) — 3202KB
• job-20231231.xsd (EX-101.SCH) — 36KB
• job-20231231_lab.xml (EX-101.LAB) — 225KB
• job-20231231_cal.xml (EX-101.CAL) — 39KB
• job-20231231_pre.xml (EX-101.PRE) — 185KB
• job-20231231_def.xml (EX-101.DEF) — 100KB
• job_10q_htm.xml (XML) — 408KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Shareholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 22 Item 6. Exhibits 23

Signatures

Signatures 24 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS As a matter of policy, the Company does not provide forecasts of future financial performance. The statements made in this quarterly report on Form 10-Q, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements often contain or are prefaced by words such as "believe", "will" and "expect." These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. As a result of a number of factors, our actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause the Company's actual results to differ materially from those in the forward-looking statements include, without limitation, general business conditions, economic uncertainties, changed socioeconomic norms following the Coronavirus Pandemic ("COVID-19"), the demand for the Company's services, competitive market pressures, the ability of the Company to attract and retain qualified personnel for regular full-time placement and contract assignments, the possibility of incurring liability for the Company's business activities, including the activities of its contract employees and events affecting its contract employees on client premises, cyber risks, including network security intrusions and/or loss of information, and the ability to attract and retain qualified corporate and branch management, as well as those risks discussed in the Company's Annual Report on Form 10-K for the year ended September 30, 2023, and in other documents which we file with the Securiti

-FINANCIAL INFORMATION

Part I -FINANCIAL INFORMATION

FINANCIAL STATEMENTS (unaudited)

ITEM 1. FINANCIAL STATEMENTS (unaudited) GEE GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Amounts in thousands) December 31, 2023 September 30, 2023 ASSETS CURRENT ASSETS: Cash $ 19,910 $ 22,471 Accounts receivable, less allowances ($ 591 and $ 562 , respectively) 15,853 18,451 Prepaid expenses and other current assets 1,286 847 Total current assets 37,049 41,769 Property and equipment, net 780 846 Goodwill 61,293 61,293 Intangible assets, net 7,686 8,406 Deferred tax assets, net 7,064 7,064 Right-of-use assets 3,274 3,637 Other long-term assets 480 596 TOTAL ASSETS $ 117,626 $ 123,611 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,486 $ 2,762 Accrued compensation 3,358 5,464 Current operating lease liabilities 1,377 1,475 Other current liabilities 1,705 1,778 Total current liabilities 8,926 11,479 Noncurrent operating lease liabilities 2,186 2,470 Other long-term liabilities 190 361 Total liabilities $ 11,302 $ 14,310 Commitments and contingencies (Note 12) SHAREHOLDERS' EQUITY: Common stock, no par value; authorized - 200,000 shares; 114,900 shares issued and 108,772 shares outstanding at December 31, 2023, and 114,900 shares issued and 111,489 shares outstanding at September 30, 2023 113,068 112,915 Accumulated deficit ( 3,185 ) ( 1,630 ) Treasury stock; at cost - 6,128 shares at December 31, 2023 and 3,411 shares at September 30, 2023 ( 3,559 ) ( 1,984 ) Total shareholders' equity 106,324 109,301 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 117,626 $ 123,611 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 4 Table of Contents GEE GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (Amounts in thousands except per share data) Three Months Ended December 31, 2023 2022 NET REVENUES

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View this 10-Q filing on SEC EDGAR