Gee Group Inc. · AMEX:JOB
Gee — Investor Presentation (June 2017)
35 slides from Gee's investor presentation, Jun 1, 2017
Slide 1: GEE Group Investor Presentation
G GEE Group Employing America since 1893 Investor Presentation Chairman & CEO Derek E. Dewan June 2017 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 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 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 Capital, non- GAAP Pro forma & adj. Current Ratio, n
Slide 4: GEE Group Overview
GEE Group Overview Geographic presence in over 34 markets providing staffing solutions 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 1967 Company’s g
Slide 5: GEE Group Overview: Business Highlights
G GEE Group Overview GEE Group Business Highlights nd: » New management team installed beginning Professional in 2015 ASERIS.QATA + TI'Stafing Solutions + Diversified portfolio across 8 different BA m brands AGILE” + » Brand portfolio heavily-weighted towards high-growth professional staffing vertic
Slide 6: Best in Class Management with Proven CEO
G Best in Class Management with Proven CEO | ceeGroup 1994 to 2010: AccuStaff / MPS Group (NYSE:MPS) » In1994, Derek Dewan named CEO of AccuStaff / MPS Group and subsequently takes the company public 1904 Revenue: $137 million » Solidly established as a regional power in the early 1990s and later be
Slide 7: GEE Key Differentiators
G GEE Key Differentiators GEE Group v Management team with a proven track record of building billion-dollar staffing business ¥ Public company with access to equity and debt capital markets v Leading provider of staffing services across attractive verticals ¥ Building highly-scalable platform ¥ Long
Slide 8: Experienced Core Management
Experienced Core Management Derek Dewan Chief Executive Officer and Chairman of the Board Mr. Dewan possesses a wealth of experience in the staffing industry. Prior to GEE Group, Derek Dewan took AccuStaff Incorporated (which became MPS Group, Inc. (NYSE:MPS)) public (in 1994) and grew the company i
Slide 9: Outside Independent Board Members
Outside Independent Board Members William M. Isaac * Former Chairman of the Federal Deposit Insurance Corporation (FDIC) 1981 - 1985; Founded regulatory consulting firm The Secura Group, now a part of FTI Consulting, Inc. in which he serves as Senior Managing Director-Global Head of Financial Instit
Slide 10: U.S. Staffing Industry Overview — $149 BN Industry
U.S. Staffing Industry Overview — $149 BN Industry cee Group T Renewed focus on opumization and outsourcing post-crisis in the C-suite and boardroom * Secular shift to temporary labor underway: © Inthe 5 years post recession, U.S. staffing firms created more new jobs than any other industry © U.S. s
Slide 11: Drivers of Secular Shift to Temp Staffing
Drivers of Secular Shift to Temp Staffing SUPPLY . DEMAND Shift in attitude: Preference y, Efficiency: Variable cost of flexible work hours / structure / | Necessity: Higher | Just- in- time labor: More | unemployment; part-time | companies using mix of | work | € | permanent and temp | Pay/benefits
Slide 12: On-Demand Economy and Millennials
On-Demand Economy and Millennials * By 2020, 43% of American workers will be active participants in the on-demand economy, according to an Intuit forecast. *% Millennials, the largest generation represented in the workforce today, are driving this change with a reported 92% wanting to work remotely
Slide 13: Staffing Firms & On-Demand Economy
Staffing Firms & On-Demand Economy G ‘For employers, the on-demand economy is challer equir' ent is critical and supply is limited...brin g on independent worke appealing and cost-effective way to remedy a growing skills gap and continue delivering needed business growth xecutive decision makers in
Slide 14: Professional Staffing Increasingly Larger than Commercial Staffing
Professional Staffing Increasingly Larger Gi than Commercial Staffing GEE Group Commercial vs. Professional Staffing Trend Staffing Industry Revenues: » 2013-2017P Source: SIA
Slide 15: Professional Staffing Revenue on the Rise
Professional Staffing Revenue on the Rise Professional Staffing Industry Revenue (Dollars in billions) CAGR: 6.5% 2013, Source: SIA |
Slide 16: IT Staffing Market
IT Staffing Market G GEE Group IT is one of the fastest growing areas of staffing » Growth in IT staffing is driven by a number of factors including: implementation of new technology, old technical skills becoming obsolete and thus the need for new workers with new technical skills, IT and healthcar
Slide 17: IT Employment Growth Continues
IT Employment Growth Continues Information Technology * $29 BN 2016 mkt size ... IT employment growth far exceeded US jobs growth * $30.6 BN 2017 est. market size * Growth driven by a severe shortage of qualified IT workers * 5% growth est. in 2017 * Growth Drivers: Cyber Security, Big Data, Cloud,
Slide 18: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2017 Temp. Staffing Mkt. Size) Healtheare $15.8 billion je? IT $30.6 billion Engineering $7.8 billion + Estimated to have robust growth of 7% in 2017, reaching a size of $15,8 billion * Cost, ACA & Shortage of Drs., Nurses, Allied, Aging
Slide 19: Healthcare Staffing Segments/Opportunities
Healthcare Staffing Segments/Opportunities Travel Nurses Estimated growth of mt 10% growth = eae 7% in 2017, 2 0” 8 r eee reaching a expected to size of $15.8 Tench $16.6 billion Per Diem ey on Nurses Tenens (Drs.) 4% growth 6% growth Source: SIA
Slide 20: Commercial Staffing Sectors
al Staffing Secto | + Total employment in Warehouse) - “E” commerce US warehousing and Support) - Logistics storage industry grew | ata robust 6.3% year- , over-year pace in 2016 + Advanced Mfg. & + Growth largely due to Just-in- Robotics & E-Commerce Time Labor Automation Support (Amazon ete. and r
Slide 21: Office Locations — National Presence
Office Locations — National Presence (> GEE Group
Slide 22: Growth Strategy
G Growth Strategy GEE Group Diverse opportunity set exists today across both organic opportunities and via M&A Organic Growth Opportunities Strategic Growth Opportunities + Provide new, innovative & enhanced menu of + Strengthen existing service offerings & enhance mkt. professional service offering
Slide 23: The Consolidation Opportunity
G The Consolidation Opportunity GEE Group Highly-fragmented market presents massive roll-up potential: "wuts 7¢ randstad KELLY Wrobeet alr $6.0 BN Top 150 Companies = KFORCE ~50% U.S. Market 150 Companies Revenue $200MM $20 MN O————————————— All Others = ~50% U.S. Market ~ 15,000 Companies Le
Slide 24: Recent Acquisitions
G Recent Acquisitions GEE Group In chronological order from 2015 to 2016 YTD: pokeTeks: highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) yy * Scribe Solutions provides Emergency Rooms (ER) & Physician Practices with > + Agile Resources de
Slide 25: GEE Group Acquisition of SNI Companies and Merger
GEE Group Acquisition of SNI Companies and Merger Gg of SNI into GEE: Creates ~200 million dollar company GEE Group GNDCOMPANIES Grow your business. Grow your career. * GEE Group acquired SNI Companies, a premier provider of professional staffing and recruitment services, on April 3, 2017. + The acq
Slide 26: SNI Companies Brands Gained Through Acquisition
SNI Companies Brands Gained Through Recent Gi Acquisition: 34+ SNI Office Locations Nationwide GEE Group 4 Main Divisions Staffing Now Staffing Now specializes in matching STAFFING NOW? administrative professionals with the right temporary or full-time job opportunities. Accounting Now Accounting No
Slide 27: SNI Specialty Divisions GEE Group Gained Through Merger
SNI Specialty Divisions GEE Group Gained G Through Merger SNICertes Since 1994, SNI Certes provides our clients with high-level accounting and finance professionals, such as CPAs or MBAs. SNIB: SNI Banking serves regional, community banks and credit unions with their talent acquisition needs. SNI En
Slide 28: Staffing Services Revenue Mix (Per Form 10K)
Staffing Services Revenue Mix (Per Form 10K) 9/30/16 Fiscal Year End Staffing Services Revenue $83.1 MM 74% Professional Staffing © 65.3% Professional Contract Staffing @ 26.3% Commercial Staffing 1 8.4% Direct Hire
Slide 29: Commercial vs Professional Contract and Direct Hire
Commercial Professional Contract Contract & Direct FY 9/30/16 Hire % of Revenues 26% 74% Combined Gross Margin 13.1% 28.4% Target Gross _ Pe Margin R _ 11% — 17% 24-32% * Data derived from 9/30/16 Financial Information from Form 10K Le
Slide 30: Select Historical & Pro-Forma & Non-GAAP Financial Highlights
SELECT HISTORICAL & PRO-FORMA & Non-GAAP FINANCIAL HIGHLIGHTS (Forward-Looking Statements) GEE 2017 Second Quarter (3/31/17 Form 10Q) Revenue of approximately 22 million + GEE 2016 Year End (9/30/16) Non-GAAP EBITDA of approximately $4.7 million and Non-GAAP adjusted EBITDA of approximately $4.6 mil
Slide 31: Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss)
Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss) Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss) Year Ended September 30, (In thousands) Pro Forma GEE 2016 GEE &SNI 2016 Net income (Net loss), GAAP s a7 267 Interest expense, net 602 8,688 Taxes 3 123 Deprecia
Slide 32: Unaudited Pro Forma Combined Statement of Operations
Unaudited Pro Forma Combined Statement of Operations Year Ended September 30, 2016 Gr Towsnds, seo he Be Bu) NET REVENUES: Contr stating esc ‘rectirepasment re NETREVENUES Seng gael ad pianist expanse edratructrng apeies INCOME (LOSS) FROM OPERATIONS Ghee in derriveity ‘hangei contnget onside asm ec
Slide 33: Unaudited Pro Forma Combined Balance Sheet
Unaudited Pro Forma Combined Balance Sheet As of March 31, 2017 CG GEE Group
Slide 34: GEE Group Investment Merit
GEE Group Investment Merit: Staffing is a Terrific Market * $149 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 t
Slide 35: Questions?
Questions? GEE Group NYSE: JOB Fe