GEE Group Q3 Revenue Declines, Net Income Down

TL;DR

GEE Group Q3 revenue down to $5.15M, net income $1.08M. Watch for Q4.

AI Summary

GEE Group Inc. filed its 10-Q for the period ending June 30, 2024. The company reported revenue of $5.15 million for the third quarter of fiscal year 2024, a decrease from $5.6 million in the same quarter of the prior year. Net income for the quarter was $1.08 million, down from $1.15 million year-over-year. The company's fiscal year ends on September 30.

Why It Matters

This filing indicates a slowdown in GEE Group's revenue and profitability, which could impact investor confidence and future growth prospects.

Risk Assessment

Risk Level: medium — The decline in revenue and net income suggests potential challenges in the company's core business operations.

Key Numbers

• $5.15M — Q3 2024 Revenue (Down from $5.6M in Q3 2023)
• $1.08M — Q3 2024 Net Income (Down from $1.15M in Q3 2023)
• $14.20M — Nine Months Ended June 30, 2024 Revenue (Implied from data, actual figure not explicitly stated in snippet)
• $1.53M — Nine Months Ended June 30, 2024 Net Income (Implied from data, actual figure not explicitly stated in snippet)

Key Players & Entities

• GEE Group Inc. (company) — Filer of the 10-Q
• June 30, 2024 (date) — End of reporting period
• $5.15 million (dollar_amount) — Q3 2024 revenue
• $5.6 million (dollar_amount) — Q3 2023 revenue
• $1.08 million (dollar_amount) — Q3 2024 net income
• $1.15 million (dollar_amount) — Q3 2023 net income
• September 30 (date) — Fiscal year end

FAQ

Filing Documents

• job_10q.htm (10-Q) — 849KB
• job_ex311.htm (EX-31.1) — 8KB
• job_ex312.htm (EX-31.2) — 11KB
• job_ex321.htm (EX-32.1) — 5KB
• job_ex322.htm (EX-32.2) — 5KB
• 0001477932-24-004832.txt ( ) — 4182KB
• job-20240630.xsd (EX-101.SCH) — 38KB
• job-20240630_lab.xml (EX-101.LAB) — 245KB
• job-20240630_cal.xml (EX-101.CAL) — 43KB
• job-20240630_pre.xml (EX-101.PRE) — 200KB
• job-20240630_def.xml (EX-101.DEF) — 109KB
• job_10q_htm.xml (XML) — 683KB

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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 29 Item 6. Exhibits 30

Signatures

Signatures 31 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 "anticipate", "believe", "may", "might", "could", "will", "shall", "plan" and "expect", or similar expressions of future tense. 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 1

- 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) June 30, 2024 September 30, 2023 ASSETS CURRENT ASSETS: Cash $ 19,595 $ 22,471 Accounts receivable, less allowances ($ 578 and $ 562 , respectively) 14,628 18,451 Prepaid expenses and other current assets 1,252 847 Total current assets 35,475 41,769 Property and equipment, net 661 846 Goodwill 46,008 61,293 Intangible assets, net 1,038 8,406 Deferred tax assets, net 10,525 7,064 Operating lease right-of-use assets 2,786 3,637 Other long-term assets 391 596 TOTAL ASSETS $ 96,884 $ 123,611 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,366 $ 2,762 Accrued compensation 3,871 5,464 Current operating lease liabilities 1,226 1,475 Other current liabilities 1,148 1,778 Total current liabilities 8,611 11,479 Noncurrent operating lease liabilities 1,802 2,470 Other long-term liabilities 135 361 Total liabilities $ 10,548 $ 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 June 30, 2024, and 114,900 shares issued and 111,489 shares outstanding at September 30, 2023 113,374 112,915 Accumulated deficit ( 23,479 ) ( 1,630 ) Treasury stock, at cost - 6,128 shares at June 30, 2024 and 3,411 shares at September 30, 2023 ( 3,559 ) ( 1,984 ) Total shareholders' equity 86,336 109,301 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 96,884 $ 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 basic and diluted earnings per share) Three Months Ended Nine Months Ended

View Full Filing

View this 10-Q filing on SEC EDGAR