In This Story
GEE Group Inc. (JOB+0.21%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a net loss of $692,000 for the quarter, compared to a net loss of $1,555,000 in the same quarter the previous year. The decrease in net loss is attributed to cost reduction initiatives and decreased amortization and depreciation expenses.
Consolidated net revenues for the quarter were $26,026,000, down from $30,631,000 in the same period the previous year. This 15% decline is primarily due to economic weakness and uncertainties impacting the staffing industry.
Contract staffing services contributed $23,515,000, or 90% of consolidated revenue, while direct hire placement services contributed $2,511,000, or 10%. Both segments saw declines compared to the previous year.
Gross profit margin for the quarter was 31.9%, slightly up from 31.8% in the previous year. The increase is attributed to changes in the mix of contract services businesses and bill rate increases.
Selling, general, and administrative expenses decreased by $1,791,000, or 17%, compared to the previous year, due to cost-cutting measures. These expenses represented 33.9% of revenues, down from 34.6% in the previous year.
Interest expense for the quarter was $66,000, slightly down from $71,000 in the previous year, while interest income was $155,000, down from $190,000.
The company did not recognize an income tax benefit for the quarter, as it is forecasting pre-tax income for the full fiscal year.
On January 3, 2025, GEE Group acquired Hornet Staffing, Inc., an Atlanta-based provider of staff augmentation services. The acquisition is expected to enhance GEE Group's ability to compete for new business from large companies.
As of December 31, 2024, GEE Group had $19,694,000 in cash and $6,977,000 in available borrowings under its credit facility. The company continues to focus on reducing costs and improving operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GEE Group Inc. quarterly 10-Q report dated February 13, 2025. To report an error, please email earnings@qz.com.