Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Roth Annual Conference 2015
40 slides from Gee's conference presentation, Mar 10, 2015
Slide 1: Roth Annual Conference Investor Presentation
ROTH ANNUAL CONFERENCE INVESTOR PRESENTATION MARCH 10, 2015 NYSE: 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 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 adjusted EBITDA because management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underl
Slide 4: Company Overview
Company Overview GF NYSE: JOB 7 5 , F € General Employment Enterprises
Slide 5: Key Information
Headquarters Naperville, Illinois Year End 9/30 Symbol NYSE: JOB Recent Price 3/4/15 $1.03 Market Capitalization 3/4/15 $40.2 million Shares Outstanding as of 3/4/15 (incl. conv. pfd.) 39.0 million Public Float as of 3/4/15 $29.0 million Transfer Agent Continental Stock Transfer & Trust Co Source: Y
Slide 6: Investment Highlights
Investment Highlights Growth Markets Tail End of Turnaround Clear Growth Strategy New Proven CEO Coming On Board Former CEO of global public staffing solutions company, MPS Group (NYSE:MPS); $ 2.2 billion revenue IPO in 1994; Fortune 1000 and S&P Mid-Cap 400 MPS Group sold for $1.3 billon in 2009 to
Slide 7: Final Phase of Turnaround
Final Phase of Turnaround Period of Decline Turnaround Growth 2001 - 2012 2013 - 2014 We Are Here 2015 - Beyond Rich history dating back to 1893 First publicly traded staffing company; on NYSE/ Amex over 50 years Thrived under strong leadership Business adversely affected by death of long-time CEO i
Slide 8: US Staffing Industry Overview
US Staffing Industry Overview Large Fragmented Market: $132 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 Estimated that 46% of
Slide 9: At Confluence of Powerful Supply and Buy-Side Forces
At Confluence of Powerful Supply and Buy-Side Forces Shift in attitude: Preference of flexible work hours Necessity: Higher unemployment; part-time work Pay/benefits: At times, pay is higher than full-time; portability of benefits Technology: Easier to “port” skills to new employer; MSP & VMS to man
Slide 10: Revenue Mix (per Form 10K)
Revenue Mix (per Form 10K) 2014 Revenue By Business Segment Light Industrial $25,031,000 1 Employment Enterprises
Slide 11: 39% Revenue CAGR Since 2009
39% Revenue CAGR Since 2009 (per Form 10K) (in 000’s) CAGR+39%
Slide 12: Specialized Brand Strategy
Specialized Brand Strategy Information Technology Accounting, IT, Engineering Engineering, Manufacturing Professional Staffing/Direct Hire Industrial Staffing/Commercial Staffing Light Industrial/Clerical GEE Skilled Trades
Slide 13: Office Locations
Office Locations ‘al Employment Enterprises
Slide 14: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2015 Temp. Staffing Mkt. Size) Healthcare $11 billion Engineering $9 billion Source: US Bureau of Labor, Staffing Industry Analyst Source: US Bureau of Labor, Kelly Services US needs 250,000 new engineers over next 10 years Maturing engi
Slide 15: Information Technology Staffing Market
Information Technology Staffing Market Source: Staffing Industry Analysts
Slide 16: IT Staffing Continues to Grow
IT Staffing Continues to Grow
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
Slide 18: Professional Staffing Sector
Professional Staffing Sector Industry Estimates 2015 Source: Staffing Industry Analysts Other professional staffing segments growth opportunities
Slide 19: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth $ in Billions Sources : Staffing Industry Analysts, Everest Group, True Blue est. Largest Staffing Segment 6% CAGR 2013- 2015 $40 billion est. 2017
Slide 20: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities
Slide 21: Healthcare Staffing Segments/Opportunities
Healthcare Staffing Segments/Opportunities Source: Staffing Industry Analysts 2015 est. $ in billions 10 Largest Mkts. CA $926m TX $753m NY $652m FL $525m IL $476m PA $468m OH $418m MI $378m NC $330m GA $285m $11.2 Total
Slide 22: Acquisition of Scribe Solutions
Acquisition of Scribe Solutions Definitive agreement signed in December 2014; anticipated to close by 3/31/15 Scribe provides Emergency Rooms (ER) & Physician Practices with highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) Scribe recruits
Slide 23: Proven New CEO
Proven New CEO Derek Dewan will join General Employment as the Company’s CEO upon completion of Scribe acquisition Mr. Dewan was previously Chairman and CEO of MPS Group, Inc. (NYSE:MPS) and predecessor AccuStaff Incorporated, a multi-billion global Fortune 1000 staffing provider MPS Group grew orga
Slide 24: Experienced Core Management
Experienced Core Management Andrew J. Norstrud, CFO – Mr. Norstrud will transition back into the position of Chief Financial Officer upon completion of Scribe acquisition. He started with General Employment in March 2013 as CFO and brings significant experience with public companies in the areas of
Slide 25: Financial Overview
Financial Overview General Employment Enterprises
Slide 26: Margin Profile
Margin Profile *All figures as of fiscal year 2014 as reflected in Form 10K Light Industrial Professional Services Direct Hire Placement % of Revenues 63% 19% 18% Gross Margin 15.6% 31.1% 100% Target Gross Margin Range 16.5% – 18.5% 32.5% – 34.5% 100%
Slide 27: Segment Revenue (per Form 10K)
Segment Revenue (in 000’s) (per Form 10K)
Slide 28: Pro-Forma Balance Sheet Highlights & Metrics
Pro-Forma Balance Sheet Highlights & Metrics Pro-forma as of 12/31/14 ($ in 000 except metrics ; see footnote below) Cash & cash equivalents $ 2,761 Accounts receivable, net $ 5,777 Net working capital $ 1,787 Total debt outstanding $ 7,816 Stockholders’ equity $10,577 Days sales outstanding est. (D
Slide 29: Projected Post-Acquisition Pro-Forma Balance Sheet
Projected Post-Acquisition Pro-Forma Balance Sheet Certain non-GAAP measures are represented in the pro-forma and such measures are not in accordance with GAAP. Please refer to statement titled "Non-GAAP Measures". Please refer to recent SEC Filings on Forms 10K, 10Q, 8K & Pre Sch. 14C.
Slide 30: Projected Post-Acquisition Pro-Forma Income Statement
Projected Post-Acquisition 12 Month Pro-Forma Income Statement (in thousands) (in thousands) PROFORMA PROFORMA NET REVENUES: Contract staffing services $ 36,780 Direct hire placement services 7,508 NET REVENUES 44,288 Cost of contract services 28,852 GROSS PROFIT 15,436 Selling, general and administ
Slide 31: Growth Strategy
Growth Strategy General Employment Enterprises
Slide 32: 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 geographic
Slide 33: Public Company Landscape
Public Company Landscape Size Light Industrial Skilled Professional Small Public Company In Sector With Diverse Revenue Stream; Provides Exceptional Growth Platform
Slide 34: Significant Consolidation Opportunity in Staffing Industry
Significant Consolidation Opportunity in Staffing Industry $150M $20M ～ 15,000 Companies Our Goal is to be a $1B Business by 2020 ($47M) $0 ~150 Companies (Acquired for $1.3B) $2.2B
Slide 35: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions Strengthen existing service offerings & enhance mkt. share Add complementary high growth services & specialties Add new client/business opportunities Expand into new geographies and markets Add new recruiting, sales & management talent
Slide 36: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria High gross & EBITDA margin Accretive to earnings 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 Earn-0ut possib
Slide 37: Target Human Capital Acquisition Sectors
Target Human Capital Acquisition Sectors
Slide 38: Long Term Financial Goals
Long Term Financial Goals Internal & Acquisition Growth 2020 2019 2018 2017 2016 2015 2014 Projected Revenue Run Rate (End of Yr.) $44M $100M $250M $400M $600M $800M $1B The 2020 Plan (Projections and 2020 Plan are Forward-Looking Statements) Adj. EBITDA* $2.8M $6.4M $16.0M $25.6M $38.4M $51.2M $64M
Slide 39: Contacts
Contacts Corporate Headquarters 184 Shuman Boulevard Suite 420 Naperville, IL 60563 P: 630.954.0400 F: 630.954.0447 Company Contacts Derek E. Dewan, CEO (Incoming) 13500 Sutton Park Drive South Suite 204 Jacksonville, FL 32224 E: derek.dewan@genp.com Andrew J. Norstrud, (Int. CEO), CFO Woodland Corp
Slide 40: Questions?
Questions? Employing America since 1893 NYSE: JOB
General Employment Enterprises — Roth Annual Conference 2015 on 6ix