Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (June 2016)
41 slides from Gee's investor presentation, Jun 7, 2016
Slide 1: General Employment Enterprises Investor Presentation June 2016
Cc General Employment Enterprises Employing America since 1893 INVESTOR PRESENTATION JUNE 2016 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 fnancial statements presente Company periodically discloses non-GAAP Pro forma adjusted (adj.) EBITDA, non-GAAP Pro forma & adj. Income (Loss) from Operations, non-GAAP Pro forma & adj. Working Capital, non- GAAP Pro forma & adj. C
Slide 4: Company Overview
Company Overview GF NYSE: JOB General Employment Enterprises
Slide 5: Company Overview
C Based in Chicago with 20 offices throughout the US; geographic presence in over 26 markets providing staffing solutions npany Overview Leading provider of specialty staffing services including Information Technology, Engineering, Healthcare, Accounting and Commercial fields Company was initially f
Slide 6: General Employment IPO 1967
General Employment IPO 1967 180,000 Shares general Jemployment enterprises, inc.
Slide 7: Investment Merits
Investment Merits Staffing is a Terrific Market + $12 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 is ripe
Slide 8: Staffing Industry Overview
Staffing Industry Overview GF NYSE: JOB General Employment Enterprises
Slide 9: Large Fragmented Market
“+ Large Fragmented Market: $142 billion domestic industry for combined temporary staffing and place and search for 2016, 7% growth in 2015 and 6% projected growth for 2016 > Temp penetration rate >2% (highest ever) of total nonfarm employment (BLS) » Estimated that 47% of U.S. businesses will use t
Slide 10: Confluence of Positive Factors: Supply and Demand
Confluence of Po: SUPPLY DEMAND Shift in attitude: Preference Efficiency: Variable cost of flexible work hours structure Just- in- time labor: More companies using mix of permanent and temp Necessity: Higher unemployment; part-time work ‘Made in America’ renaissance: Requires Pay/benefits: At times,
Slide 11: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2016 Temp. Staffing Mkt. Size) IT $29 billion Healthcare $14.2 billion y From 2011 industry av ferme growth was, 9% with 2016 projected at $14.2 billion Cost, ACA. & Shortage of Drs., Nurses, Allied, Aging Population TT employment growth
Slide 12: IT Staffing Continues to Grow
IT Staffing Continues to Grow Projected growth in IT sector ise atti aid A emporary staffing market size in 2016: ‘Shillion): IT segment Source: Staffing Industry Analysts mployment Ente
Slide 13: Information Technology Staffing Market
Information Technology Staffing Market 2016 Estimated Spend Largest IT staffing markets iors $978um ealrue, Wa $859um Chicago-Napervil- —_oston-Cambridge- Elgin, ILIN-WI Quincy, MANH $942mm San Francisco- Ooakland-Hayward, CA $1,753mm New York-Newark- jersey City, NY-NJ-PA $786mm ~ $944mm sn eomerri
Slide 14: Healthcare Staffing Segments/Opportunities
Healthcare Staffing Segments/Opportunities ; 2016 est. Travel ee Nurses $ in billions ; $3.5 : — > $14.2 billion + FL $525mm - = + IL $476mm ( y Total i" ae eee Per Diem Locum 12% 2 S mm . % + ML $378mm Nurse Tenens NC $330mm $3.6 (Dis)$a5) Growth GA S$285mm y % y Source: Staffing Industry Analysts
Slide 15: Other professional staffing segments growth opportunities
Other professional staffing segments growth opportunities Accounting: $7.9 Accounting: $7.9 gga: 81.0 billion 38% GEES oe Sees | | Geb etiteing $2.3 billion 6% yr to $1.3 billion 6% yr to yrgrowth yrgrowth Source: Staffing Industry Analysts (C3 General Employment En es
Slide 16: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Largest Staffing Segment 6% CAGR 2013- 2015 5% GR 2016 est. $40 billion est. 2017 @s 50-9 2016 e@.—- 2015 est. $31.3 2014 en $ in Billions 5 $20.5 Sources : Staffing Industry Analysts, Everest Group, True Blue est.
Slide 17: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse) + “E” commerce Support |) - Logistics +» Advanced Mfg. & ee Robotics & Automation Support Labor Le * Construction Support (C3 General Employment Enterprises
Slide 18: Significant Consolidation Opportunity in Staffing Industry
Significant Consolidation Opportunity in Staffing Industry $6.0B ~150 $150M G General Employment s20q 2
Slide 19: Company Position
Company Position GF NYSE: JOB General Employment Enterprises
Slide 20: Final Phase of Turnaround
Final Phase of Turnaround We Are Here 1893 - 2001 2001-2012 _—_2013 — 2015-2016 - Beyond Period of Decline Turnaround Growth Rich history dating Business adversely New management Organie growth ‘ affeeted by death of Enhanced board baek to 1893 ee ace Acquisition growth mg a Improved Dri h “d First
Slide 21: Company Name Change: GEE Group
Company Name Change : GEE Group = Intended to more clearly reflect transformation from predominantly commercial staffing company into a highly specialized staffing services, consulting and human resources solutions provider = Creates platform to better position our specialty operating brands and go
Slide 22: General Employment Enterprises, Inc. National Service Delivery
General Employment Enterprises, Inc. (NYSE: JOB) National Service Delivery (General Employment} Corporate Offices [Hl INFORMATION TECHNOLOGY STAFFING . STAFFING TRADES STAFFING a (GHT INDUSTRIAL STAFFING (HEALTHCARE STAFFING =a) = =— access pata MAGE ASHLEY ELLIS
Slide 23: Specialized Brand Strategy
Specialized Brand Strategy Professional Staffing/Direct Hire AGILE” Information Technology, AE ashley ells ; NOI? GG General Employment Accounting, Engineering OMNIONE Engineering, Manufacturing BB o.w2098 Health Care / EMR Industrial Staffing/Commercial Staffing ®D TRIAD Personnel Light Industrial
Slide 24: Proven New CEO
Proven New CEO = 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
Slide 25: Experienced Core Management
Experienced Core Management Andrew J. Norstrud, CFO — Mr. Norstrud joined General Employment 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
Slide 26: Board Members
Board Members George A, Bajatia + 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 27: Growth Strategy
Growth Strategy GF NYSE: JOB General Employment Enterprises
Slide 28: Strategic Organic Growth Opportunities
Strategic Organic Growth Opportunities OProvide new, innovative & enhanced menu of professional service offerings to customers in existing markets and cross-sell multiple specialties - IT, Accounting, Engineering & Healthcare OEnter fastest growing markets by following customers and through geograph
Slide 29: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions OStrengthen existing service offerings & enhance mkt. share DAdd complementary high growth services & specialties Add new client/business opportunities DExpand into new geographies and markets DAdd new recruiting, sales & management talen
Slide 30: Target Human Capital Acquisition Sectors
Target Human Capital Acquisition Sectors Healthcare | Professional iar Engineering _ Accounting y d (C3 General Employment Enterprises
Slide 31: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria DHigh gross & EBITDA margin DAccretive to earnings OWell managed with experienced operators OLimited enterprise risk and extensive due diligence OPricing commensurate with profitability & growth OConsideration consists of cash, stock, seller & bank financing QEarn-out
Slide 32: Acquisitions
Acquisitions gical Order — 2015/2016) Scribe Solutions provides Emergency Rooms (ER) & Physician Practices with highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) AGILE™ ~ a eGeSSPArS PALADIN (C3! General Employ Agile Resources delivers uni
Slide 33: Financial Overview
Financial Overview GF NYSE: JOB General Employment Enterprises
Slide 34: Staffing Services Revenue Mix
taffing Se enue Mix (per Form 109) 3/31/16 2-4 Qtr. Staffing Services Revenue $21.7 m 78% Professional Staffing © 68% Professional Contract Staffing @ 22% Commercial Staffing 1 10% Direct Hire € General Employment En
Slide 35: Gross Margin Profile
Gross Margin Profile Contract Light Professional Second Qtr. Industrial Contract & Direct 3/31/16 Hire % of Revenues 22% 78% Combined 5 o Grose Mae 11% 28% Target Gross AED ee Margin Range eo Wy 24-32% * Data derived from 3/31/16 Quarterly Unaudited Financial Information from Form 10Q € General Empl
Slide 36: Strengthened Balance Sheet
Strengthened Balance Sheet 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 (converte
Slide 37: Select Historical & Pro-Forma & Non-GAAP Financial Highlights
SELECT HISTORICAL & PRO-FORMA & NON-GAAP FINANCIAL HIGHLIGHTS (Forward-Looking Statements) = 2016 Second Quarter (3/31/16 Form 10Q) Revenue of $21.7 million = 2016 Second Quarter (3/31/16) adjusted EBITDA of $1.1 million « Fiscal Year Ending 9/30/16 estimated annualized pro-forma (based on 2" gtr, a
Slide 38: 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) Quarter Ended March 31, (In thousands) 26 2015 [Net income (loss), GAAP. s ES as) Interest expense, net 409 126 Depreciation and amortization sil 124 Stock compen
Slide 39: Reconciliation of Non-GAAP Adjusted Income (Loss) from Operations
Reconciliation of Non-GAAP Adjusted Income (Loss) from Operations Quarter Ended March 31, (In thousands) Income (Joss) from operations, GAAP Stock compensation & stock option expense Acquisition, integration & restructuring Non-GAAP adjusted income (loss) from operations 2016 260 122 $
Slide 40: Reconciliation of Non-GAAP Adjusted Net Income (Loss)
Reconciliation of Non-GAAP Adjusted Net Income (Loss) Reconciliation of Non-GAAP Adjusted Net Income (Loss) Quarter Ended March 31, (In thousands) 2016 2015 Net income (net loss), GAAP $ 7 $s 45) ‘Stock compensation & stock option expense 230 84. Acquisition, Integration & restructuring 122 - (Gain)
Slide 41: Questions?
Questions? G General Employment Enterprises Employing America since 1893 NYSE: JOB eral Employment Enterprises
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