Gee Group Inc. · AMEX:JOB
Gee — Investor Presentation (March 2018)
30 slides from Gee's investor presentation, Mar 12, 2018
Slide 1: GEE Group Investor Presentation March 2018
G GEE Group Employing America since 1893 Investor Presentation March 2018 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 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
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 Finance and Commercial fields * Company was initially founded in 1893 and went public i
Slide 5: GEE Key Differentiators
G GEE Key Differentiators GEE Group ¥ Management team with a proven track record of building billion-dollar staffing business Y Public company with access to equity and debt capital markets Y Leading provider of staffing services across attractive verticals Y Building highly-scalable platform Y Orga
Slide 6: GEE Group Overview
G GEE Group Overview GEE Group "pit . irate poet crue tient Ba Ns + TrStaling Stains + Brand portfolio heavily weighted towards AGILE” ~ Tees higher growth, higher margin professional - staffing verticals ACosieyes 7s Staffing Services Revenue Breakdown + TrStafing Solutions ($MM) Qc npn seeming Fia
Slide 7: Best in Class Management with Proven CEO
Best in Class Management with Proven CEO ceecroup 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 became
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 - $145 BN Industry
U.S. Staffing Industry Overview - $145 BN Industry cee Group . Renewed Tocus on optimization and outsourcing post-crisis in the C-suite and Poard room * 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.
Slide 11: Drivers of Secular Shift to Temp Staffing
Drivers of Secular Shift to Temp Staffing SUPPLY > <a DEMAND ' | Shift in attitude: Preference Efficiency: Variable cost | of flexible work hours A structure | Necessity: Higher / Just- in- time labor: More unemployment; part-time f companies using mix of work i Gi permanent and temp \ | Pay/benefit
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 a
Slide 13: Staffing Firms & On-Demand Economy
Staffing Firms & On-Demand Economy + “For employers, the on-demand economy is challenging and acquiring talent is critical and supply is limited...bringing on independent workers is an appealing and cost-effective way to remedy a growing skills gap and continue delivering needed bu growth... executi
Slide 14: IT Staffing Market Growth
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 15: IT Employment Growth Continues
IT Employment Growth Continues Information Technology Over the past 16 years, IT employment has grown at a faster rate than that of overall employment in the US From 2000 through 2016, total IT employment grew 42.0% h + $30.9 BN 2018 est. market size + Growth driven by a severe shortage of qualified
Slide 16: Focused On Growth Sectors
cused On Growth Sectors Professional Staffing Services (Est. 2018 Temp. Staffing Mkt. Size) Healthcare $17 billion IT $30.9 billion E—— < $e Engineering $8.1 billion + Estimated to have robust growth of 6% in 2028, reaching a size of $17 billion * Cost, ACA & Shortage of Drs., Nurses, Allied, Aging
Slide 17: Healthcare Staffing Segments/Opportunities
Healthcare Staffing Segments/Opportunities Travel Nurses Estimated 2 growth of > By 2018, 6% in 2018, 7% growth peli reaching a expected to size of $17 or $17 billion Per Diem Locum ion Nurses Tenens (Drs.) 5% growtl 4% growth 5% growth § Group has . Solutions brand ‘Source: SIA ee
Slide 18: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Warehouse) + “E” commerce Support|) + Logistics + Advanced Mfg. & Just-in- Robotics & TimeLabor) Automation Support + Construction Support + Industrial Staffing Market estimated to reach $33.8 Billion in
Slide 19: Office Locations — National Presence
Office Locations — National Presence G GEE Group
Slide 20: 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 orden above of > stien ing service offerings & enhance mkt. a a sine =— perpen -kerbertc pcg rp + Add new recruiting, sales & man
Slide 21: The Consolidation Opportunity
G The Consolidation Opportunity GEE Group Highly-fragmented market presents massive roll-up potential: me "ccs vv rendstad KELLY robert Halt 6) $6.0 BN ae ipontt Top 150 Companies = KFORCE ~50% U.S. Market Revenue ~150 Companies $200MM $20 MM ——<$<$_$$—__— hicaeee ~50% U.S. Market Revenue
Slide 22: GEE Group Acquisition of SNI Companies and Merger of SNI into GEE
GEE Group Acquisition of SNI Companies and Merger of SNI into GEE: Creates ~$185 million (revenue) Company —_ Gee Group GNDCOMPANIES Grow your business. Grow your career. * GEE Group (“GEE”) acquired SNI Companies (“SNI”), a premier provider of professional staffing and recruitment services, on Apri
Slide 23: SNI Companies Brands Gained Through Recent Acquisition
SNI Companies Brands Gained Through Recent Acquisition: 34+ SNI Office Locations Nationwide Gee Group 4 Main Divisions Staffing Now Staffing Now specializes in matching higher-end SAFING Kove office automation and administrative support professionals on a temporary or full-time basis. Accounting Now
Slide 24: SNI Specialty Divisions GEE Group Gained Through Merger
SNI Specialty Divisions GEE Group Gained G Through Merger GEE Group SNICertes () SNI Certes provides our clients with high-level accounting and finance professionals, such as CPAs or MBAs. SMa N’BANKN SNI Banking serves regional, community banks and credit unions with their talent acquisition needs.
Slide 25: Fiscal Year Staffing Services Revenue (Per Form 10K)
(Per Form 10K) 9/30/17 Fiscal Year End Staffing Services Revenue $135 MM 81% Professional Staffing © 70% Professional Contract Sti B 19% Commerci. St 11% Professional Direct Hire
Slide 26: Gross Margin Profile
Gross Margin Profile Commercial Professional Contract Contract & Direct FY 9/30/17 Hire % of Revenues 19% 81% Combined Gruss Macs: 16.5% 37.1% Target Gross - Margin Range Rah agao* * Data derived from 9/30/17 Financial Information from Form 10K a
Slide 27: Select Historical & Pro-Forma & Non-GAAP Financial Highlights
SELECT HISTORICAL & PRO-FORMA & Non-GAAP FINANCIAL HIGHLIGHTS (Forward-Looking Statements) * GEE 2018 First Quarter (12/31/17 Form 10Q) Revenue of approximately $45.2 million and Non-GAAP Adjusted EBITDA of approximately $3.3 million = GEE 2017 Year End (9/30/17) Non-GAAP Adjusted EBITDA of approxim
Slide 28: 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) in thousands) FY 9/30/17 Qu 12/31/17 Net income (Net loss), GAAP $ @srm) $ (4791) Interest expense, net 5995 3:294 Taxes (Benefit) (6,018) (28) Depreciation and a
Slide 29: GEE Group Investment Merits
GEE Group Investment Merits Staffing is a Terrific Market “ $145 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 30: Questions?
Questions? GEE Group NYSE: JOB a