Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (March 2016)
43 slides from Gee's investor presentation, Mar 15, 2016
Slide 1: General Employment Enterprises Investor Presentation March 2016
G General Employment Enterprises Employing America since 1893 INVESTOR PRESENTATION MARCH 2016 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 1033 and Section 21E 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 consolidated financial statements presented on a GAAP basis, the Company periodically discloses non-GAAP Pro forma adjusted (adj.) EBITDA & adj. EBITDA, non-GAAP Pro forma & adj. Income (Loss) from Operations, non-GAAP Pro forma & adj. Working
Slide 4: Company Overview
Company Overview GF NYSE: JOB % , K > General Employment Enterprises
Slide 5: pan
pan * Based in Chicago with 20 offices throughout the US; geographic presence in over 26 markets providing staffing solutions + Leading provider of specialty staffing services including Information Technology, Engineering, Healthcare, Accounting and Commercial fields * Company was initially founded
Slide 6: Investment Merits
Investment Merits Staffing is a Terrific Market $142 billion domestic industry with strong growth potential + Secular changes in the U.S. economy requiring “on-demand labor” have led to very favorable trends in the staffing industry + Staffing continues to be a highly fragmented market that is ripe
Slide 7: Staffing Industry Overview
Staffing Industry Overview GF NYSE: JOB % , K > General Employment Enterprises
Slide 8: Staffing Industry Overview
S Staffing Industry Overview * Large Fragmented Market: » $142 billion domestic industry for combined temporary staffing and place and search for 2016, 7% growth in 2015 and 6% projected growth for 2016 >» Temp penetration rate >2% (highest ever) of total nonfarm employment (BLS) > Estimated that 47
Slide 9: Influence of Supply and Demand
nfluence of Po: SUPPLY DEMAND | Shiftin attitude: Preference Efficiency: Variable cost of flexible work hours structure | Necessity: Higher Just- in- time labor: More unemployment, part-time companies using mix of | work | G perieabentand temp | Pay/benefits Attimes, pay | ‘Made in America’ | is hig
Slide 10: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2016 Temp. Staffing Mkt. Size) Healthcare $14.2 billion IT $29 billion Engineering $8.5 billion From 2¢ 9% with tes & bor, siting nay Anse | Employment Enterpi for skilled TT workers in wake er attacks ,HTM, Java, .net QA, cloud, data an
Slide 11: IT Staffing Continues to Grow
IT Staffing Continues to Grow Projected growth in IT sector < in 2016: US temporary staffing market size (Sbillion): IT segment 2009 2010 2011 2012 2013, 2014 2015 2016 Source: Staffing Industry Analysts | Employment Enterp -,
Slide 12: Information Technology Staffing Market
Information Technology Staffing Market Largest IT staffing markets $799mm $978mm Sentle Tecoma: $8590 Bellevue, WA’ Chicago-Naperville- Boston-Cambridge- b ln, LIN vouiney MANA paicons 7 $1,753mm New York-Newark- “Jersey City, NY-NJ-PA + $9440m Washington-Arlington- Alexandria, DC-VA-MD-WV i $832mm
Slide 13: Healthcare Staffing 2016 Estimate
2016 est. oThavel aye $ in billions Go Nurses $14.2 billion { Total Sc Per Diem Locum + OH S418mm Wee Tenens 12% + NC $330mm $3.6 (Disvsa5) Growth + GA $285mm Source: Staffing Industry Analysts e C3! General Employment Enterpi
Slide 14: Other Professional Staffing Segments
Other professional staffing segments growth opportunities Source: Staffing Industry Analysts >! General ent Enterprises
Slide 15: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Largest Staffing Segment 6% CAGR 2013- 2015 5% GR 2016 est. $40 billion est. 2017 @ 550-9 “2016 : 2015 est Prsi3 708 201. e 4 $ in Billion: $20.5 oes: Stof % , K > General Employment Enterprises
Slide 16: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse® - “E” commerce SUppore | - Logistics + Advanced Mfg. & Robotics & Automation Support ¢ Construction Support Just-in- Time Labor " : KC >! General Employment Enterprises
Slide 17: Significant Consolidation Opportunity in Staffing Industry
Significant Consolidation Opportunity in Staffing Industry
Slide 18: Company Position
Company Position GF NYSE: JOB % , K > General Employment Enterprises
Slide 19: Final Phase of Turnaround
Final Phase of Turnaround ‘We Are Here 1893-2001 2001-2012 2013— vous. Yous. Beyon Rich Legacy Period of Decline Turnaround Growth New management Richhistorydating | Business adversely Organic growth affected by death of Enhanced board back to 1893 . Acquisition growth : : long-time CEO in 2001 Impr
Slide 20: Office Locations
fice Locations ‘General Employment Enterprises Inc. (NYSEOE
Slide 21: Specialized Brand Strategy
Specialized Brand Strategy Professional Staffing/Direct Hire AGILE? AC ashley ells Information Technology, Go Cesecll Eaton Accounting, Engineering Pacaoin OMNIONE Engineering, Manufacturing SOLUTIONS Health Care / EMR Industrial Staffing/Commercial Staffing ®D TRAD Personnel Light Industrial % , K
Slide 22: New CEO
P en New CE! = 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, Inc. (NYSE:MPS) and predecessor AccuStaff Incorporated, a multi-billion global Fortune 1000 staffing provider = MPSGroup gr
Slide 23: Experienced Core Management
Experienced Core Management J. Norstrud, CFO — Mr. Norstrud joined General Employment in 2013 as CFO and has significant experience with public companies in many ar eas including financial reporting, restructuring for profitability and growth, acquisitions and technology. He is a CPA and was formerl
Slide 24: Board Members
Board Members George A. Bajalia + President of Landmark Financial Corp.; served as President and Chief Executive Officer of the Prolianz Division of staffing conglomerate MPS Group Inc. (NYSE:MPS) and as its Chief Operating Officer William M. Isaae + Former Chairman of the Federal Deposit Insurance
Slide 25: Growth Strategy
Growth Strategy Ss NYSE: JOB % , K > General Employment Enterprises
Slide 26: Strategic Organic Growth Opportunities
Strategic Organic Growth Opportunities | Provide new, innovative & enhanced menu of professional service offerings to customers in existing markets and cross-sell multiple specialties - IT, Accounting, Engineering & Healthcare Enter fastest growing markets by following customers and through geograph
Slide 27: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions 4] Strengthen existing service offerings & enhance mkt. share 4] Add complementary high growth services & specialties 4] Add new client/business opportunities 4] Expand into new geographies and markets 4] Add new recruiting, sales & manag
Slide 28: Target Human Capital Acquisition Sectors
Target Human Capital Acquisition Sectors Healthcare Professional IT Engineering Accounting | " : C3 General ment Enterprises
Slide 29: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria {| High gross & EBITDA margin lAccretive to earnings {1 Well managed with experienced operators {| Limited enterprise risk and extensive due diligence {| Pricing commensurate with profitability & growth {| Consideration consists of cash, stock, seller & bank financing
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
Slide 32: Acquisition of Access Data 10/5/15
Acquisition of Access Data 10/5/15 + Access Data founder William Daniel ("" over 25 years ago, presently serves as the Chief Execu ) Dampier founded the business e Officer (CEO) + Amember of GEE’s senior leadership team, Dan will assist with the execution of the overall strategic growth plan includi
Slide 33: Acquisition of Paladin Consulting 12/31/15
Acquisition of Paladin Consulting 12/31/15 + Dallas-based Paladin Consulting, a “Best Staffing Client Award” recipient, has been in the professional staffing and solutions business for over 30 years and is led by Enoch Timothy and Nathan Stillwell who will join the General Employment leadership team
Slide 34: Financial Overview
Financial Overview Ss NYSE: JOB % , K > General Employment Enterprises
Slide 35: Pro-forma Revenue Mix
Pro-forma Revenue Mix (er 12/31/15 Staffing Services Breakdown* COMMERCIAL $6,000,000 Professional Servi (Contract and Direct Hire) 73% Light Industrial Services (Commercial) Employm it Enterpr
Slide 36: Pro Forma Margin Profile
Pro Forma Margin Profile Contract Contract Light | pyofessional | Professional Direct First Qtr. Industrial Seecuices Hire Placement 12/31/15 % of Revenues 27% 66% 70 Gross Margin 12% 26% 100% LCE 11° — 17° 24% — 32% 100% * Data derived from 12/31/15 Quarterly Unaudited and Pro forma Financial Infor
Slide 37: Strengthened Balance Sheet
Strengthened Balance 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 nvertible Pfd. Stock Offering Provided $2 inAd onal Common Stock Equity (converted
Slide 38: Unaudited Balance Sheet
Unaudited Balance Sheet Highlights & Metric: As of 12/31/15 ($n 000 except metries ; see footnotes below ; excludes Paladin) Cash & cash equivalents $ 4,610 Accounts receivable, net $ 8,829 Net working capital $1,474°" Total debt outstanding $ 5,285" Stockholders’ equity $21,800 Days sales outstandi
Slide 39: Pro-Forma Financial Highlights
PRO-FORMA FINANCIAL HIGHLIGHTS (Forward-Looking Statements) ‘ter (12/31/15 Form 10Q) Revenue of $17.6 ately $22.4 million pro-forma including Paladin(acquired 1/1/16) unaudited revenue of $4.8 million for12/31/15 2016 First Quarter (12/31/15) adjusted EBITDA of $042.00: approximately $1.4 million in
Slide 40: Select Pro-Forma Financial Information and Reconciliation of Non-GAAP Adjusted EBITDA
SELECT PRO-FORMA FINANCIAL INFORMATION AND RECONCILIATION OF NON-GAAP PRO-FORMA ADJUSTED EBITDA TO GAAP NET INCOME Pro-forma Revenue 2016 First Quarter: GEE Revenue per Form 10Q 12/31/15 $17.6 million Paladin Unaudited Revenue Quarter Ended 12/31/15 4.8 million $22.4 million Estimated Projected Pro-
Slide 41: Pro-Forma Financial Information Schedule
Pro-Forma Financial Information Schedule Select Pro Forma Financial Information and Reconciliation of Non-GAAP Pro Forma Adjusted EBITDA to GAAP Operating Income (In thousands) Seribe Access Solutions Data GEE Consolidated Revenue (1) $ 4ar3_ S$ ogon_ $39,750 $ 74.391 GAAP Operating Income (2) $ 74
Slide 42: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Informatio First Quarter 2016 Reconciliation of Non-GAAP Adjusted Net Working Cs As of December 31, ital (Ge thousands) 201s au Networking capital, GAAP. Noneash (tock) contingent payments included in current lib ities 1300 Noncash derivative lability Inch ed in
Slide 43: Questions?
Questions? G General Employment Enterprises Employing America since 1893 NYSE: JOB % , K > General Employment Enterprises
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