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GEE Group revenue down 5% in fiscal Q3; reports goodwill impairment charge

August 14, 2019

GEE Group Inc. (NYSEAMERICAN: JOB) reported revenue fell 5.4% in its fiscal third quarter ended June 30, with a double-digit decline in revenue in its direct-hire operations.

The Jacksonville, Florida-based staffing firm also reported a net loss of $6.8 million, but it reported the net loss included a $4.3 million noncash goodwill impairment charge.

(US$ thousands) Q3 2019 Q3 2018 % change
Net revenue $38,101 $40,267 -5.4%
Gross profit $13,580 $14,721 -7.8%
Gross margin 35.6% 36.6%  
Net loss ($6,834) ($1,887) nm

The third-quarter’s decrease in direct-hire revenue was the result of the residual effects of office consolidations, office closures and certain reductions in the direct-hire placement workforce, according to the company. The moves were made with the aim of improving profitability.

Revenue by segment

(US$ thousands) Q3 2019 Q3 2018 % change
Contract staffing services $33,217 $33,879 -2.0%
Direct hire placement services $4,884 $6,388 -23.5%

Share price and market cap

Shares in GEE Group were unchanged at 56 cents; the company had a market cap of $7.1 million, according to FT.com.

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