Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (September 2014)
32 slides from Gee's investor presentation, Sep 11, 2014
Slide 1: Investor Presentation September 2014
INVESTOR PRESENTATIONSEPTEMBER 2014NYSE: JOB Employing America since 1893
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, including statements regarding the business of the Company and its industry generally, business str
Slide 3: Key Information
State of Incorporation Illinois Year End 9/30 Symbol NYSE: JOB Recent Price $0.17 Market Capitalization $4.4 million Shares Outstanding 25.9 million Float 7.8 million Shares Authorized 200 million Transfer Agent Continental Stock Transfer & Trust Co Source: YahooFinance. As of September 8, 2014. Key
Slide 4: Investment Thesis – Why Invest in GEE?
Investment Thesis – Why Invest in GEE? Rich History: In business for over 120 years.Experienced Management Team: Newly appointed Management Team, Board of Directors, and Advisory Board with experience in public company management and compliance, staffing industry experience, acquisitions, and restru
Slide 5: Executive Summary
Executive Summary General Employment Enterprises, Inc. (NYSE MKT: JOB) has been providing staffing services for over 120 years through its network of branch offices located in major metropolitan areas throughout the United States. GEE currently offers both Professional Staffing Services and Industri
Slide 6: Experienced Core Management
Experienced Core Management Andrew J. Norstrud, CEO – Mr. Norstrud started with GEE in March of 2013 and brings significant experience with public companies in the areas of financial reporting, restructuring for profitability and growth, acquisitions, and technology. Cary Daniel – Mr. Daniel has 18
Slide 7: Experienced Core Management
Experienced Core Management Deborah Santora-Tuohy, President of Staffing –Mrs. Santora-Tuohy has been with the Light Industrial Division for over 23 years, and was recently promoted to President of the Staffing Division to focus on internal expansion outside of Ohio and increasing profitability.Jame
Slide 8: Market Overview
Market Overview Employing America since 1893
Slide 9: US Staffing Industry Metrics
US Staffing Industry Metrics Domestic staffing is a $215 billion industry.Over 32,000 US-based staffing companies.15,000 companies generating less than $20 million in revenue, representing significant industry fragmentation and excellent opportunity to employ a roll-up strategy.90% of US businesses
Slide 10: Favorable Demand-Side Trends
Favorable Demand-Side Trends Efficiency Factor: Employers seeking to maximize efficiency and reduce cost are leveraging contingent workforces supplied by staffing companies to achieve the competitive advantage a variable cost structure can provide.Shift in Attitude: A fundamental change in attitudes
Slide 11: Favorable Supply-Side Trends
Favorable Supply-Side Trends Shift in Attitude: Fundamental change in attitudes regarding flexible working hours and arrangements offered by temporary contracts.Necessity: Significant increase in the unemployment rate in the US, particularly as it relates to full-time employment has led to a larger
Slide 12: Industry Prime for Consolidation
Industry Prime for Consolidation Insurance: Insurance and especially Workers Compensation is a fundamental problem for smaller staffing companies and with certain class codes there are few choices, other than specialized PEO’s, which significantly reduce margins.Regulations: Employment regulations h
Slide 13: Public Staffing Company Summary
Public Staffing Company Summary Company Name (TCKR) Revenues (ttm) ($000’s) Market Cap($000’s) Price /Sales (ttm) Trailing P/E(ttm) EPS (ttm) Manpower (MAN) 20,250,000 6,410,000 0.32 22.26 3.62 Kelly Services (KELYA) 5,410,000 799,870 0.15 13.85 1.54 Robert Half (RHI) 4,310,000 5,850,000 1.36 23.03
Slide 14: Corporate Profile
Corporate Profile Employing America since 1893
Slide 15: GEE: Then and Now (1893 – 2014)
GEE: Then and Now (1893 – 2014) Historical (1893 to 2012)Rich history in the staffing industry dating back to 1893.Publicly traded (Ticker: JOB) on the AMEX (now part of the NYSE) for the last 50 years.Historically thrived under strong leadership, despite the number of recessions throughout 1900’s.
Slide 16: Removing the Burdens of Employment from Business
JOB Removing the Burdens of Employment from Business
Slide 17: Removing the Burdens of Employment from Business
JOB Removing the Burdens of Employment from Business
Slide 18: Removing the Burdens of Employment from Business
JOB Removing the Burdens of Employment from Business
Slide 19: Removing the Burdens of Employment from Business
Removing the Burdens of Employment from Business We are the experts to help grow their business
Slide 20: Consolidated Organization
Consolidated Organization Risk Management, Insurance, Payroll, Billing, On-boarding, Systems Employer of Record & Admin Only (White Label) Franchise / Licensee Model CorporateSales and Service Culture General Employment Enterprises, Inc. Finance Traditional Staffing Services Back Office Services PEO
Slide 21: Service We Provide
Service We Provide Professional Staffing Services, offered on either a full-time direct hire basis or a temporary contract basis, are available to clients in the following high-growth sectors:Information TechnologyEngineeringAccountingSkilled TradesIndustrial Staffing Services, offered temporarily o
Slide 22: Corporate Profile
Corporate Profile Employment EDGE: A PEO (Professional Employer Organization) and HRO (Human Resources Organization) platform that provides Benefits Management/Administration, Payroll & Tax Processing, Risk Management, Human Resources, Technology, Insurance, Compliance Management, and Group Purchasi
Slide 23: All Encompassing Employment Platform
Elevates GEE and the combined entity to an “All Encompassing Employment Platform” status - facilitating current and future expansion via diversified product, customer (to include staffing companies as well as companies looking for traditional staffing service), and revenue streams:PEO/HRO, Employer
Slide 24: Consolidated Metrics and Benefits
Consolidated Metrics and Benefits Over $90,000,000 in payroll;Over 6,500 employees on assignment at peak periods;Over 600 active and diverse customers;300 staffing professionals working in 35 locations throughout 45 states;Centralized, cloud-based software to more efficiently managed all operations;
Slide 25: Growth Strategy
Growth Strategy Goals to build on the FoundationApproximately $250 million in sales within 3 years;Approximately $45 million in gross profit;$15 million in Professional Placement85% occupancy of available desks100 consultants consistently performing$150,000 average of production per consultant$20 mi
Slide 26: Acquisition Growth Strategy
Acquisition Growth Strategy Lack of solid exit strategy in the marketThere is some source of pain for each candidate and why they are looking for an exit strategy.InsuranceRegulationBack officeExpansion capabilitiesTechnologyFinance
Slide 27: Acquisition Growth Strategy
Acquisition Growth Strategy 300 Companies to review over a 3 year period300 – 2% to 3% to be acquired (6 to 9 companies) Acquired300 – 10% to sell back office (30 companies and future acquisition candidates)300 – 15% to sell PEO services (45 companies)300 – 10% to sell workers compensation insurance
Slide 28: Acquisition Strategy
Acquisition Strategy Asset purchase structure with an initial portion of the purchase price paid in cash and stock while having the remaining purchase price being paid over one to three years based on ability to retain clients, quickly integrate and gain customer loyalty. Immediately integrate the a
Slide 29: Target Acquisition Profile
Target Acquisition Profile Less than $20 million in revenue;Solid and consistent gross margins;Either losing money or have performed poorly in the past few years because of issues such as insurance or other administrative costs, however have good contracts or a strong industry niche that can be inte
Slide 30: What Would it Look Like to Acquire a $20MM Staffing Company?
What Would it Look Like to Acquire a $20MM Staffing Company? Target Profile:Sales approximately $20,000,000 per year: Gross Margins of at least 15% or $3,000,000 EBITDA of approximately 3% or $600,000 Approximate valuation will be 4x EBITDA or $2,400,000Assumed Average Terms:25% in cash25% in stock5
Slide 31: Questions
Questions
Slide 32: Contacts
Contacts Corporate Headquarters184 Shuman BoulevardSuite 420Naperville, IL 60563P: 630.954.0400F: 630.954.0447Company ContactAndrew J. Norstrud CEOWoodland Corporate Center8270 Woodland Center Blvd.Tampa, FL 33614P: 813.769.3580E: andrew.norstrud@genp.com Business DevelopmentWellfleet Partners, Inc.
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