Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (December 2013)
20 slides from Gee's investor presentation, Dec 18, 2013
Slide 1: General Employment Enterprises
& General Employment Enterprises
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, including statements regarding the business of the Company and _ its industry generally, business s
Slide 3: Company Overview
be I DCCla Iie General Employment Enterprises, Inc. (NYSE MKT: JOB) has been providing staffing services for more than 120 years through a network of branch offices located in major metropolitan areas throughout the United States. The Company's professional staffing services provide information tech
Slide 4: GEE: A Historical Summary
GEE: A Historical Summary © GEEhas a tich history in the staffing industry since its inception in 1893 © Ofthese 120 years in business, the Company has been publicly held for the last 50 years on the American Stock Exchange © Historically, the Company has thrived under strong leadership, despite the
Slide 5: Historical Financials: 1998-2000 ($000)
Historical Financials: 1998-2000 ($000) Revenue 37,802 39,553 Gross Margin 29,282 27,710 elling, G&A 25,705 24 Z C NetIincome 2,532 3,025 3,090 G General Employment Enterprises
Slide 6: Historical Financials: 2011-2013 ($000)
Historical Financials: 2011-2013 ($000) Revenue 37,189 Gross Margin 14,169 9,784 A308 8,84 (869) (1,011) 358 G General Employment Enterprises
Slide 7: GEE Today
Coy ol Meiics Over 4,000 employees on assignment at peak periods Over 400 active and diverse customers o 160staffing professionals working in 22 locations in 11 states © Transitioning to a centralized, Cloud-based software to more efficiently run all 22 offices o Key components of delivering a produ
Slide 8: The Industry
The Indu Domestic staffing is a $215 billion industry o There are over 32,000 U.S. staffing companies © There are 15,000 companies generating less than $20 million, representing significant industry fragmentation © 90% of U.S. businesses use staffing services o US. staffing industry will grow faster
Slide 9: Favorable Demand-Side Trends
Favorable Demand-Side Trends o Businesses with seasonal work forces and just-in-time staffing needs are utilizing recruiting and staffing solutions to meet these needs. o Employers seeking to maximize efficiency are leveraging contingent workforces supplied by professional staffing companies to achi
Slide 10: Favorable Supply-Side Trends
vorable Supply-Side Trends © More people are joining the temporary workforce because of a fundamental change in attitudes regarding flexible working hours and arrangements offered by temporary contracts. © The hourly demands of employees with salaried positions have increased significantly over the
Slide 11: Objectives
Be JC eCiVves o Commitmentto grow the company to approximately $100 millionin the next 18 months, and $300 million in revenue over the course of the next three years through a series of acquisitions and internal expansion strategies. © Accretive acquisitions will be properly evaluated and executed b
Slide 12: Why Now?
Why Now? o. _Industry-wide fragmentation supports accretive consolidation strategy. o Availability of quality companies at lower multiples due to large supply and economic conditions during recession. o Larger Competitors are looking to acquire companies that are $50 million in revenue or more. o° A
Slide 13: Why GEE?
why GEE? A highly skilled management group designed to execute. o Himination of over $700,000 of unnecessary payroll in the past 12 months and will continue to right size our staff through consolidation and technology. © Ournew technology foundation that will enable us to quickly acquire companies a
Slide 14: Experienced Core Management
Experienced Core Manageme o Andrew J. Norstrud— Principle Executive officer o Started with the GEE in March of 2013 © Significant experience with: o Public Companies o Restructuring Companies for Profitability and Growth 0 Acquisitions 0 Technology © Deborah Santora-Tuohy - President of Light Indust
Slide 15: Experienced Core Management
Experienced Core Manageme o Tim Schwenk o Over 44 years with GEE © Operates an office that has been operating since 1965 © Consistently profitable and one of the top three offices © Bradley McDaniel © Over 17 years with GEE o Consistently a top performer in production o Started a new office and quic
Slide 16: Looking for a Ten Million Dollar Investment
oking for a 3 to 5 Million Dollar Investment o Willinstantly make GEE compliant with NYSE MKT regulations 0 Less than $500,000 will be used for internal investments and cleaning up high interest leases o Funds will be primarily used for initial acquisitions © Eliminate any one individual or voting g
Slide 17: Acquisition Strategy
Acquisition Strategy o Asset purchase structure with an initial portion of the purchase price paid in cash and stock with the remaining purchase price being paid over one to three years based on ability to quickly integrate and gain customer loyalty. o Immediately integrate the acquisition into our
Slide 18: Target Acquisition Profile
rget Acquisition Profile o Companies with less than $50 millionin revenue o Companies with solid and consistent gross margins o Companies that are either losing money or have poorly performed in the past few years, however have good contracts or a strong industry niche © Companies that have outgrown
Slide 19: Public Staffing Company Statistics
Public Staffing Compa stics | _iRevenves($000's) |P/er ess Manpower 20,678,000 22.96 2.47 Kelly Services 5,451,000 14.15 {2 Robert Half 4,111,000 24.95 1.50 TrueBlue 1,390,000 25.00 0.84 Korn Ferry 827,000 24.86 0.69 Huron Consulting 682,000 24.88 0.56 Resouces 572,000 2207 0.56 RCM 146,000 23.88 0.
Slide 20: In business for over 120 years
o Inbusiness for over 120 years o Highly experienced Core Management Team o Secured the Foundation of the Company © Looking for the right investment to grow the Company G General Employment Enterprises
General Employment Enterprises — Investor Presentation (December 2013) on 6ix