Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (December 2015)
36 slides from Gee's investor presentation, Dec 2, 2015
Slide 1: Investor Presentation December 2015
Ga General Employment Enterprises Employing America since 1893 INVESTOR PRESENTATION DECEMBER 2015 NYSE: JOB
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21F of the Securities Exchange Act of 1934 as amended, including statements regarding the business of the Company and its industry generally, b
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures ‘To supplement the Company's consolidate ratements presented on a GAAP basis, the Company discloses non-GAAP Pro forma adjusted EBITDA, non-GAAP Pro forma adjusted Income (Loss) from Operations, non-GAAP adjusted Income (loss) from Operations, non-GAAP Working Capital, no
Slide 4: Company Overview
Company Overview SE NYSE: JOB (C3 General Employment Enterprises
Slide 5: Company Overview
Company Overview Based in Chicago with offices throughout the US Leading provider of specialty staffing services including Information Technology, Engineering, Healthcare, Accounting, and Commercial fields Company was initially founded in 1893 and went public in 1968 New management team is in the ea
Slide 6: Investment Merits
Investment Merits Stating! isa Terrific Market $139 billion domestic industry with strong growth potential + Secular changes in the U.S. economy have led to very favorable trends in the staffing industry + Staffing continues to be a highly fragmented market that is ripe for consolidation Experienced
Slide 7: Staffing Industry Overview
Staffing Industry Overview SE NYSE: JOB (C3 General Employment Enterprises
Slide 8: US Staffing Industry
US Staffing Industry rvie Large Fragmented Market: $139 billion domestic industry for combined temporary staffing and place and search for 2015 @6% growth over 2014 a Temp penetration rate >2% (highest ever) of total nonfarm employment (BLS) a Estimated that 46% of U.S. businesses will use temp staf
Slide 9: Supply and Demand
SUPPLY Shift in attitude: Preference of flexible work hours Necessity: Higher unemployment; part-time work Pay/benefits: At times, pay is higher than full-time; portability of benefits Technology: Easier to “port” skills to new employer; MSP & VMS to manage temp labor Efficiency: Variable cost Just-
Slide 10: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2015 Temp. Staffing Mkt. Size) Healthcare $11 billion ie? IT $28 billion Engineering $9 billion Trom 2010 ~ 2014, Healthcare staffing industry average revenue grmwsth was 10% ‘with 2015 projected Cost, ACA fe Shortageot' Ps. Nurses, lied
Slide 11: IT Staffing Continues to Grow
IT Staffing Continues to Grow Projected growth in IT sector in 2015: US temporary staffing market size ($billion): IT segment 2009 2010 2011 2012 2013 zouap 2015P
Slide 12: Information Technology Staffing Market
Information Technology Staffing Market Largest IT staffing markets 582300 _$943mm $863um eal Taco Chicago-Nepervile: —_Beston-Cambridge- : Elgin, LIN iney, MAN $826mm el r $1,779am San Francisco: Oakland-Hayward, CA So > aie... New York-Newark- ‘Jersey City, NY.NJ-PA =+- $969MM Washington-Arlingten-
Slide 13: Healthcare Staffing Segments/Opportunities Largest Mkts.
Healthcare Staffing Segments/Opportunities 10 Largest Mkts. CA $926m Travel 2015 est. 1X $753m Nurses $ in billions $2.4 NY $652m a ) t on ee” 911.2 Total IL 76m p ; PA $468m Per Diem Locum OH aie Nurse Tenens 7% Growth MI $378m $3.0 (Drs.) $2.8 NC $330m GA $285m Source: Staffing Industry Analysts (
Slide 14: Other professional staffing segments growth opportunities
Other professional staffing segments growth opportunities Agionnting? $7.0) billion 5% vr to yx went Clinical Seientit 82:5 billion 6% yr to yegrowth, yrgrowth Source: Staffing Industry Analysts (C3 General Employment Enterprises
Slide 15: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Largest Staffing Segment 6% CAGR 2013- 2015 $40 billion est. 2017 @33. a a 2015 es $313 5 2014 Ly $29.5 $ in Billions 2013 Nos Goupne weet
Slide 16: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse) ° “E” commerce Support |) - Logistics Just-in- | ¢ Mfg. & Production Time Labor) - Construction Support Skilled « HVAC, Electricians Trades « Plumbers, Carpenters (C3 General Employment Enterprises
Slide 17: Significant Consolidation Opportunity in Staffing Industry
Significant Consolidation Opportunity in Staffing Industry $6.0B ~150 $150M G General Employment (aaa a es
Slide 18: Company Position
Company Position SE NYSE: JOB (C3 General Employment Enterprises
Slide 19: Final Phase of Turnaround
Final Phase of Turnaround We Are Here 2001 - 2012 1893 - 2001 Period of Decline Turnaround Growth Business adversely New management affected by death of Enhanced board Organic growth tory dating back to 18 : Acquisiti th 28 Jong-time CEO in 2001 J, roved eae SeOwet F " ps Drive enhanced First public
Slide 20: General Employment
5 General Employment E lr &
Slide 21: Specialized Brand Strategy
Specialized Brand Strategy Professional Staffing/Direct Hire ACCESS DATA AGILE Information Technology, AC ashley ells Accounting, Engineering G General Employment Engineering, Manufacturing Health Care / EMR Industrial Staffing/Commercial Staffing ®D eIwav Personnel Light Industrial/Clerical G GEE S
Slide 22: Proven New CEO
Proven New CEO = Derek Dewan joined General Employment 4/1/15 as the Company’s CEO upon completion of Scribe acquisition = Mr. Dewan was previously Chairman and CEO of MPS Group, Ine. (NYSE:MPS) and predecessor AccuStaff Incorporated, a multi-billion global Fortune 1000 staffing provider = MPS Group
Slide 23: Experienced Management
Experienced Management Andrew J. Norstrud, CFO — Mr. Norstrud has transitioned from interim CEO back into the position of Chief Financial Officer. He starled with General Employment in March 2013 as CFO and brings significant experience with public companies in the areas of financial reporting, rest
Slide 24: Board Members
Board Members George A. Bajalia + President of Landmark Financial Corp.; served as President and Chief Executive Officer of Prolianz Division of MPS Group Inc. and as Chief Operating Officer of MPS William M. Isaac + Former Chairman of the Federal Deposit Insurance Corporation (FDIC) 1981 - 1985; Fo
Slide 25: Growth Strategy
Growth Strategy GZ NYSE: JOB (C3 General Employment Enterprises
Slide 26: Strategic Organic Growth Opportunities
Strategic Organic Growth Opportunities OProvide new, innovative & enhanced menu of professional service offerings to customers in existing markets and cross-sell multiple specialties - IT, Accounting, Engineering & Healthcare OEnter fastest growing markets by following customers and through geograph
Slide 27: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions UStrengthen existing service offerings & enhance mkt. share LAdd complementary high growth services & specialties 0Add new client/business opportunities OExpand into new geographies and markets DAdd new recruiting, sales & management tale
Slide 28: Target Human Capital Acquisition Sectors
Target Human Capital Acquisition Sectors Healthcare _ Professional | iil Engineering | Accounting (C3 General Employment Enterprises
Slide 29: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria OHigh gross & EBITDA margin OAccretive to earnings OWell managed with experienced operators OLimited enterprise risk and extensive due diligence OPricing commensurate with profitability & growth OConsideration consists of cash, stock, seller & bank financing O£arn-out
Slide 30: Acquisition of Scribe Solutions
Acquisition of Scribe Solutions = Health Care Staffing Acquisition closed 4/1/15 = Scribe provides Emergency Rooms (ER) & Physician Practices with highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) = Scribe recruits, qualifies, hires and tr
Slide 31: Acquisition of Agile Resources 7/31/15
Acquisition of Agile Resources 7/31/15 Founded by Tricia Dempsey in 2003 and provides innovative IT staffing solutions and IT consulting services ranging from legacy platforms to emerging technologies to a diversified client base across many industry verticals Vast array of high-end IT staffing serv
Slide 32: Acquisition of Access
Acquisition of Access Access Data founder William Daniel ("Dan") Dampier founded the business over 25 years ago, presently serves as the Chief Executive Officer (CEO) A member of GEE’s senior leadership team, Dan will assist with the execution of the overall strategic growth plan including expanding
Slide 33: Financial Overview
Financial Overview GZ NYSE: JOB (C3 General Employment Enterprises
Slide 34: Pro Forma Margin Profile
Pro Forma Margin Profile Light Professional Direct Hire Industrial Services Placement % of Revenues 38% 62% 12% Gross Margin 12.06% 31.00% 100% Target Gross Marcin 5 12.5% — 16.5% 30% — 35% 100% * Data derived from 6/30/15 Quarterly Unaudited and Pro forma Financial Information from Form 10Q, 8K & 8
Slide 35: Strengthened Balance Sheet
Strengthened B. e Sheet 2015 Highlights Shelf Registration (Form S-3) Filed for $75 Million Common Stock Equity Offering Raised $7.8 Million (Shelf Takedown) Long Term Subordinated Debt Offering Raised $4.2 Million Access Data Acquisition Provided $2 Million in Additional Working Capital Please refe
Slide 36: Questions?
Questions? G General Employment Enterprises Employing America since 1893 NYSE: JOB 5 General Employment Enterprise
General Employment Enterprises — Investor Presentation (December 2015) on 6ix