Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — See Thru Equity Conference (May 2015)
39 slides from Gee's conference presentation, May 28, 2015
Slide 1: Employing America since 1893
G General Employment Enterprises Employing America since 1893 SEE THRU EQUITY CONFERENCE INVESTOR PRESENTATION MAY 28, 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 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 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
Slide 4: Company Overview
Company Overview GF NYSE: JOB C3! General Employment Enterprises
Slide 5: Headquarters Naperville, Illinois
Headquarters Naperville, Illinois Year End 9/30 Symbol NYSE: JOB Recent Price 5/22/15 $.90 —- Capitalizstion $26.10 million S-3 Universal Shelf Filed $75.00 million Public Float as of 5/22/15 29 million Common shares Transfer Agent Continental Stock Transfer & Trust Co Source: Yahoo Finanee 5/21/15
Slide 6: Investment Highlights
Investment Highlights Tail End of Turnaround New Proven CEO Coming On Board Clear Growth Strategy Well-positioned in high growth segments of staffing: IT, Healthcare, Accounting, Engineering & Manufacturing “Made in America” renaissance Strengthened management, operations team, and Board Fortified b
Slide 7: Final Phase of Turnaround
Final Phase o Turnaround 1893 - 2001 Rich history dating back to 1893 First publicly traded staffing company; on NYSE/ Amex over 50 years Thrived under strong leadership 2001 - 2012 Period of Decline Business adversely affected by death of long-time CEO in 2001 Inexperienced and new management led t
Slide 8: US Staffing Industry Overview
US Staffing Industry Overvie Large Fragmented Market: $139 billion domestic industry for combined temporary staffing and place and search for 2015, 6% growth over 2014 with over 32,000 US-based staffing companies providing services per Staffing Industry Analysts (SIA) Forecast a Estimated that 46% o
Slide 9: Supply = Demand
SUPPLY. = DEMAND Shift in 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 i G permanent and temp \ Pay/benefits: At times, pay ‘Made in America’ is higher than full-ti
Slide 10: 2014 Revenue By Business Segment
2014 Revenue By Business Segment Light Industrial 4 1 $25,031,000 fessiona. 7,692,000 Employment Enterprises
Slide 11: Revenue CAGR Since 2009 (per Form 10K)
nue CAGR Since 2009 (per Form 10K) 60,000 50,000 46,504 44,553 s 39,811 2 40,000 $ $ 30, 20,000 11,917 10,000 7.879 2009 2010 vou 201 ory 2014 le 1C> General Employment Enterpris
Slide 12: Specialized Brand Strategy
Specialized Brand Strategy Professional Staffing/Direct Hire ee ashley ellis Information Technology ce General Employment | Accounting, IT, Engineering OMN ION E Engineering, Manufacturing Industrial Staffing/Commercial Staffing CD TRIADPersonnel Light Industtial/Clerical G GEE Skilled Trades
Slide 13: General Employment
(C3 General Employment Enterprises
Slide 14: Focused On Growth
cused On Growth Professional Staffing Services (Est. 2015 Temp. Staffing Mkt. Size) ector: Healthcare $11 billion IT $28 billion Engineering $9 billion a {ES nous 50,000 new engincars loyeas From 2010 ~ 2014, Healtheare stafting average ‘growth was 10% wilh 2015 projected al $1 billion Cost, ACA & S
Slide 15: Information Technology Staffing Market
Information Technology Staffing Market Largest IT staffing markets $823mm $943mm $863mm Seale eam: Chicago-Naperville- —_Boston-Cambridge- Elgin, ILAN-WI Quincy, MA-NH. $1,779Mm Santa Clara, CA $1,095mm * a Los Angeles-Long Beach- # Santa Ana, CA $928um Dallas-Fort Worth: Houston- The Woodlands- Arl
Slide 16: IT Staffing Continues to Grow
IT Staffing Continues to Grow Projected growth in IT sector in 2015: US temporary staffing market size (Sbillion): IT segment -al Employment Enterprises
Slide 17: IT Staffing & Gross Margin
IT Staffing & Gross Margin How much is a typical IT gross margin? 18.4% 23.4% 31.1% 25th percentile Median 75th percentile (> General Employment Enterprises
Slide 18: Other professional staffing segments = growth opportunities
Other professional staffing segments = growth opportunities linjeal/Scientifi $23 billion 6% yr te /Mavketing: yrgrowth " yegrowth Source: Staffing Industry Analysts
Slide 19: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Largest Staffing Segment 6% CAGR 2013- 2015 ) $40 billion est. 2017 @ / A t ) 2015 est. $ in Billions ces : Staff tr sts, iY 2013 Everest Group, Tue Busesh. (C3! General Employment Enterprises
Slide 20: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse) - “E” commerce Support |) - Logistics Justine) Mfg. & Production Mime Labor) - Construction Support Skilled « HVAC, Electricians Trades ¢ Plumbers, Carpenters (C+ General Employment Enterprises
Slide 21: Healthcare Staffing Segments/Opportunities Largest Mkts.
Healthcare Staffing Segments/Opportunities 10 Largest Mkts. CA $926m Travel 2015 ese i wae Nurses $ in billions $2.1 NY $652m kK a ] F FL roi = — — — > $11.2 Total IL 476m WW PA Per Diem Locum 0 OH areal Nurse Tenens 7% Growth $3.0 (Drs.)$2.8 MI $378m NC $330m 2 _ . GA $285m Source: Staffing Industr
Slide 22: 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 23: Proven New CEO
Pp. n 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 " MPS Group g
Slide 24: Experienced Core Management
perienced Core Management Andrew J. Norstrud, CFO — Mr. Norstrud will transition back into the position of Chief Financial Officer upon completion of Scribe acquisition. He started with General Employment in March 2013 as CFO and brings significant experience with public companies in the areas of fi
Slide 25: Financial Overview
Financial Overview GF (C3 General Employment Enterprises
Slide 26: Margin Profile
Margin Profile Light Professional Direct Hire Industrial Services Placement % of Revenues 66% 19% 15% Gross Margin 11.35% 30.35% 100% aes Ae 12.5% — 16.5% | 31.5% — 33.5% 100% *All figures as of 3/31/15 as reflected on Form 10Q
Slide 27: Segment Revenue (in 000's) (per Form 10K)
Segment Revenue (in 000’Ss) (per Form 10k) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 ™ | | | | | | | l | | | 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dircet Hire Placement Services = Professional Services = Light Industrial | Employment En
Slide 28: Pro-forma as of 03/31/15
Pro-forma as of 03/31/15 ($ in 000 except metrics ; see footnote below) Cash & cash equivalents $ 1,109 Accounts receivable, net $ 6,194. Net working capital $1,370 Total debt outstanding $ 6,685 Stockholders’ equity $11,335 Days sales outstanding est. (DSO) 52 Current ratio 1.20 Quick ratio 1.09 De
Slide 29: Unaudited Projected Post-Acquisition Month Pro-Forma Income Statement
Unaudited Projected Post-Acquisition 2 Month Pro-Forma Income Statement i Ne pean moe Ante fee see rin ne se 12s sect epee so meustires are not in necordance w Nensures” and sForvere-Laoking Statements in this presentation and to recent SEC Flings on Forms 0K, 100, & 8K. Non-GAAP measures are not su
Slide 30: Growth Strategy
Growth Strategy GF General Employment Enterprises
Slide 31: Strategic Organic Growth Opportunities
Strategic Organic Growth Opportunities 0 Provide new, innovative & enhanced menu of professional service offerings to customers in existing markets and cross-sell multiple specialties - IT, Accounting, Engineering & Healfhcare 0 Enter fastest growing markets by following customers and through geogra
Slide 32: Public Company Landscape
Public Company Landscape Size Wh / Manpower (4 KoRN FERRY The Resource Connecti, ne, a See ¢ General Employment UC RCM ) Technologies’ Light Industrial Skilled Professional (C3! General Employment Enterprises
Slide 33: Significant Consolidation Opportunity in Staffing Industry
Significant Consolidation Opportunity in Staffing Industry MPS Group’ (Acauired for $1.38) $2.2B $150M G General Employment
Slide 34: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions 0 Strengthen existing service offerings & enhance mkt. share 0 Add complementary high growth services & specialties 0 Add new client/business opportunities 0 Expand into new geographies and markets 0 Add new recruiting, sales & management
Slide 35: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria 0 High gross & EBITDA margin 0 Accretive to earnings 0 Well managed with experienced operators 0 Limited enterprise risk and extensive due diligence 0 Pricing commensurate with profitability & growth 0 Consideration consists of cash, stock, seller & bank financing 0 E
Slide 36: Target Human Capital Acquisition Sectors
Target Human Capital Acquisition Sectors | Healthcare Professional | IT | \ : y Engineering | | Accounting | Ss — ——== — (C+ General Employment Enterprises
Slide 37: Long Term Financial Growth Plan
Long Term Financial The Growth PUAN (mojections ana The Growth Plan are Forward-Looking Statements) Projected Revenue Run Rate (End of yr.) Adj. EBITDA. S2.8M $6.4M S16.0M $25.6M $38.4M $51.2M $64M End of Year Pro-forma Adj. EBITDA Run Rate post Scribe Solutions acquisition. *Adj. Pro-forma EBITDA i
Slide 38: Corporate Headquarters and Company Contacts
Corporate Headquarters 184 Shuman Boulevard Suite 420 Naperville, TL 60563 P: 630.954.0400 F: 630.954.0447 Company Contacts Derek E. Dewan, CEO 13500 Sutton Park Drive South Suite 204 Jacksonville, FL 32224 E: derek.dewan@genp.com Andrew J. Norstrud, CFO Woodland Corporate Center 8270 Woodland Cente
Slide 39: Questions?
Questions? G General Employment Enterprises Employing America since 1893 NYSE: JOB le \ 2 General Employment Enterprises
General Employment Enterprises — See Thru Equity Conference (May 2015) on 6ix