Gee Group Inc. · AMEX:JOB
Gee — Roth Conference 2017
37 slides from Gee's conference presentation, Mar 13, 2017
Slide 1: GEE Group Investor Presentation March 2017
G GEE Group Employing America since 1893 Investor Presentation March 2017
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 consohdated financial statements presente 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
Slide 4: Company Overview
Company Overview EG NYSE: JOB iG
Slide 5: GEE Group Overview
E Group Overview = 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 in 1893 and went public in 1967 = Compa
Slide 6: GEE Group Overview
G GEE Group Overview GEE Group + New management team installed beginning Professional in 2015 + Diversified portfolio across 8 different eS —_ brands = AGILE” —— + Brand portfolio heavily-weighted towards high-growth professional staffing verticals — ay Staffing Secvices Revenue Breakdown — > FStafi
Slide 7: Best in Class Management with Proven CEO
G Best in Class Management with Proven CEO | ceeGroup 2015 and beyond: GEE Group 1994 to 2010: 77 AccuStaff / MPS Group (NYSE:MPS) » In1994, Derek Dewan named CEO of ¥ Proven track record of integrating AccuStaff / MPS Group and subsequently complex acquisitions takes the company public Building a s
Slide 8: Andrew J. Norstrud, CFO and management team
Andrew J. Norstrud, CFO — Mr. Norstrud joined the Company in March of 2013 as CFO and has significant experience with public companies in many areas including financial reporting, restructuring for profitability and growth, acquisitions and technology. He is a CPA and was formerly with Pricewaterhou
Slide 9: 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. Isaac + Former Chairman of the Federal Deposit Insurance
Slide 10: 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 capital markets v Leading provider of staffing services across attractive verticals Y Building highly-scalable platform v¥ Long-term associati
Slide 11: Staffing Industry Overview
Staffing Industry Overview EG NYSE: JOB iG
Slide 12: U.S. Staffing Industry Overview — $149 BN Industry
U.S. Staffing Industry Overview — $149 BN Industry cee Group w Renewed focus on optimization and outsourcing post-crisis in the C-suite and board room * Secular shift to temporary labor underway: In the 5 years post recession, U.S. staffing firms created more new jobs than any other industry © U.S.
Slide 13: Drivers of Secular Shift to Temp Staffing
Drivers of Secular Shift to Temp Staffing | SUPPLY / DEMAND Shift in attitude: Preference x Efficiency: Variable cost | of flexible work hours structure | Necessity: Higher / Just- in- time labor: More | unemployment; part-time / companies using mix of | work | ce permanent and temp | \ : , | Pay/be
Slide 14: Staffing Market: IT Largest, North America Dominates
G Staffing Market: IT Largest, North America Dominates GEE Group Global IT staffing markets by revenue, 2015 Global market for IT staffing by region, 2015 3% 1% Middle Fost &Atica, Latin America Europe 15.1 Latin America 0.8 Middle East & Africa 16 North America 29.2 TOTAL 56.1 + IT staffing is larg
Slide 15: IT Employment Growth Continues
IT Employment Growth Continues Information Technology - $29 BN 2016 ...IT Global market for IT staffing as a % of employment growth far total professional staffing, 2015 exceeds US jobs growth + $30.6 BN 2017 est. market size 36.3% + In addition, there is a severe salad shortage of qualified IT work
Slide 16: U.S. Professional Staffing Market Breakdown
U.S. Professional Staffing Market Breakdown cee Group Professional staffing market size and growth by industry vertical U.S. Professional Staffing Growth U.S. Professional Staffing Segments ($BN) ironing x ee ..< Healtheare = oo Eagoeeing a — ee x Finance / Accounting = nes Legal * nical /Seienisc =
Slide 17: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2017 Temp. Staffing Mkt. Size) Healtheare $15.5 billion al IT $30.6 billion Engineering $7.8 billion > Estimated to have robust growth of 6% én 2017, reaching. size of $15.5 billion + Cost, ACA & Shortage of Drs., Nurses, Allied, Aging P
Slide 18: On-Demand Economy and Millennials
On-Demand Economy and Millennials + By 2020, 43% of American workers will be active participants in 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 and 8
Slide 19: Healthcare Staffing Segments/Opp
Healthcare Staffing Segments/Opp: Travel Nurses Estimated s By 2018, growth of 19 1 % growth revenue 6% in 2017, - expected to reaching a reach $16.1 size of $15.5 billion billion Per Diem Locum Nurses Tenens (Drs.) 5% growth 10% growth Source: Staffing Industry Analysts CL
Slide 20: Industrial Staffing
Industrial Staffing Se Employment growth year over year in the US warehousing and storage industry as + Total employment in US warehousing and storage industry grew at a robust 6.3% year- over-year pace in 2016 A E-Commerce (Amazon ete. and rise get of online shopping) pore pos 2016 I Source: Staffi
Slide 21: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse) - “E” commerce Support + Logistics + Advanced Mfg. & J Hae Robotics & Automation Support Labor te + Construction Support Le
Slide 22: Company Position
Company Position EG NYSE: JOB iG
Slide 23: National Staffing Brands
G National Staffing Brands GEE Group Brands Professional SAUNSMIRES + Fr stating stains a TT Staffing Solutions ” GEE Group has leading brands AGILE” in the IT, engineering, finance Baneyen TT Staffing Solutions and accounting and healthcare staffing spaces and these — .ccherwwecr maa brands are con
Slide 24: Office Locations — National Presence
Office Locations — National Presence
Slide 25: Growth Strategy
Growth Strategy EG NYSE: JOB iG
Slide 26: Growth Strategy
Growth Strategy Diverse opportunity set exists today across both org: ganic Growth Opportunities ‘+ Provide new, innovative & enhanced menu of professional service offerings to customers in existing markets and cross-sell multiple specialties - IT, Finance and Accounting, Engineering, Healthcare and
Slide 27: The Consolidation Opportunity
G The Consolidation Opportunity GEE Group Highly-fragmented market presents massive roll-up potential: wit $6.0 BN | tocco} ALLEGIS Te rendstad KEY Braver 0 Oat Top 150 Companies = KFORCE ~50% U.S. Market Revenue $200MM $20 MM ‘All otsers = ~50% U.S. Market ~ 15,000 Companies Revenue
Slide 28: Recent Acquisitions
G Recent Acquisitions GEE Group In chronological order from 2015 to 2016 YTD: L\2NS highly trained medical scribes for personal assistant workin connection with “sone + Scribe Solutions provides Emergency Rooms (ER) & Physician Practices with — electronic medical records (EMR) > * Agile Resources de
Slide 29: Financial Overview
Financial Overview EG NYSE: JOB iG
Slide 30: Business Model Highlights
G Business Model Highlights GEE Group Evolving platform focus to concentrate on professional staffing business lines Selected Actual and Pro Forma Statisties FY16 per 10K FYE Long-Term Target Proteeeiceal Revenue 7% 85% Greater than 95% ave eeniconee 26% 15% Less than 5% Combined Gross Margin 28% 30
Slide 31: 9/30/16 Fiscal Year End Staffing Services Revenue
9/30/16 Fiscal Year End Staffing Services Revenue $83.1 MM 74% Professional Staffing © 65.3% Professional Contract St © 26.3% Commercial Staffing 1 8.4% Direct Hire
Slide 32: Commercial Professional
Commercial Professional Contract Contract & Direct FY 9/30/16 Hire % of Revenues 26% 74% Combined Gruss Masct 13.1% 28.4% Target Gross - z Margin R at 11% — 17% 24-32% * Data derived from 9/30/16 Financial Information from Form 10K LL
Slide 33: Strengthened Balance Sheet
Strengthened Balance Sh 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 Convertible Pfd. Stock Offering Provided $2 in Additional Common Stock Equity (Converted)
Slide 34: Selected Historical & Pro-Forma & Non-GAAP Financial Highlights
LECT HISTORICAL & PRO-FORMA & AAP FINANCIAL HIGHLIGHTS (Forward-Looking Statements) 2017 First Quarter (12/31/16 Form 10Q) Revenue of approximately $22 million + 2016 Year End (9/30/16) Non-GAAP EBITDA of approximately $4.7 million and Non-GAAP adjusted EBITDA of approximately $4.6 million + End of
Slide 35: 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) 2016 2015 Net income (Net loss), GAAP $s 4473 s (4,662) Interest expense, net 1,602 S44 Taxes 3 Depreciation and amortizati
Slide 36: GEE Group Investment Merits
GEE Group Investment Merits 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 that
Slide 37: Questions?
Questions? GEE Group NYSE: JOB ee