Gee Group Inc. · AMEX:JOB
Gee — General Employment Enterprises — Investor Presentation (November 2015)
36 slides from Gee's investor presentation, Nov 12, 2015
Slide 1: General Employment Enterprises Investor Presentation November 2015
Cc General Employment Enterprises Employing America since 1893 INVESTOR PRESENTATION NOVEMBER 2015 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 214 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 discloses non-GAAP Pro forma adjusted EBITDA, non-GAAP Pro forma adjusted Income (Loss) from Operations, non-GAAP adjusted Income (loss) from Operations, non-GAAP Working
Slide 4: Company Overview
Company Overview SE NYSE: JOB General Employment Enterprises
Slide 5: Based in Chicago with offices throughout the US
Based in Chicago with offices throughout the US Leading provider of specialty staffing services including Information Technology, Engineering, Healthcare, Accounting and Commercial fields Company was initially founded in 1893 and went public in 1968 New management team is in the early phases of acce
Slide 6: Investment Merits
Investment Merits Staffing is a Terrific Market + $139 billion domestic industry with strong growth potential + Secular changes in the U.S. economy have led to very favorable trends in the staffing industry + Staffing continues to be a highly fragmented market that is ripe for consolidation Experien
Slide 7: Staffing Industry Overview
Staffing Industry Overview SE NYSE: JOB nent Enterprises
Slide 8: US Staffing Industry Overview
US Staffing Indust ervie Large Fragmented Market: $139 billion domestic industry for combined temporary staffing and place and search for 2015 6% growth over 2014 a Temp penetration rate >2% (highest ever) of total nonfarm employment (BLS) a Estimated that 46% of U.S. businesses will use temp staffi
Slide 9: Confluence of Powerful Supply and Demand
‘onfluence of Powerful Supply and Bu ian ae SUPPLY x DEMAND Shift in attitude: Preference Efficiency: Variable cost of flexible work hours structure Necessity: Higher Just- in- time labor: More unemployment; part-time companies using mix of work | G permanent and temp Pay/benefits: At times, pay \ “
Slide 10: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services ( Healthcare $11 billion r je? st. 2015 Temp. Staffing Mkt. Size) IT $28 billion Engineering $9 billion employment growth is x US jobs growth Demand for skilled IT workers in wake of eyberattacks & HTM, Java, nel, PM, QA Severe shortage of qua
Slide 11: IT Staffing Continues to Grow
IT Staffing Continues to Grow Projected growth in IT sector in 2015: US temporary staffing market size (billion): IT segment
Slide 12: Largest IT Staffing Markets
Staffing Market Largest IT staffing markets pace $943mm $863mm rete ree: ChicagoNaperile. ——_Bosten-Cambridge: 7 wa IN-WI “Quincy, MA-NH _ $1,779. San Francisco: Oakland-Hayward, CA New York-Newark- “Jersey City, NY-NJ-PA $969um ston-Arlington- Alorandtias DOVAMB.WV $666mm San Jose-Sunnyvale. Santa
Slide 13: Healthcare Staffing Opportunities and Largest Markets
rtunities 10 Largest Mkts. ; ’ CA $926m BN Sin citio, ix Sess Narees $ in billions $2.1 NY $652m ; FL ee ———} >» $11.2 Total IL 76m \ PA $468 Per Diem Locum OH eee Nurse Tenens 7% Growth MI $378m $3.0 (Drs.)$2.8 Nc $330 EE GA $285m Source: Staffing Industry Analysts
Slide 14: Professional Staffing Sector Industry Growth
ional Staffing Sector Indust Other professional staffing segments growth opportunities Accounting: $7.0 Dillion 5% to yr ‘growth Scientific OG YE to yegrowth —== Legal: $0 billion 5% Wetoye growth, Creative/ Marketing: Si2billion 10% yr to growth Source: Staffing Industry Analysts
Slide 15: Industrial Staffing Sector Growth
Industrial Staffing Sector Growt Largest Staffing Segment 6% CAGR 2013- 2015 $40 billion est. 2017 7§29.5 $ in Billions Sources: Staffing Industry Analysts, J 2013 Everest Group, True Blue est.
Slide 16: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouse | - “E” commerce Support | - Logistics ¢ Mfg. & Production ¢ Construction Support Just-in- | Time Labor | Skilled . HVAC, Electricians Trades ¢ Plumbers, Carpenters X 4 General Employment Enterprises
Slide 17: General Employment
$6.0B ~150 co . $150M. G General Employment
Slide 18: Company Position
Company Position SE NYSE: JOB General Employment Enterprises
Slide 19: Final Phase of Turnaround
Final Phase of Turnaround We Are Here 2001 - 2012 1893 - 2001 Rich Legacy Period of Decline Turnaround Growth Rich history dating Business adversely Newmanagement —oyganie growth back to 1803 affected by death of Enhanced board long-time CEO in 2001 Bogus oem Improved e First publicly traded Inexper
Slide 20: Office Locations
Office Locations
Slide 21: Specialized Brand Strategy
Specialized Brand Strategy Professional Staffing/Direct Hire Qe S,.DATA AGILE 2 Information Technology, ale ashley ellis Accounting, Engineering GF General Employment OMNIONE Engineering, Manufacturing soLutions Health Care / EMR Industrial Staffing/Commercial Staffing GD TRIAD Personnel Light Indus
Slide 22: Derek Dewan joined General Employment as 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 grew organically and
Slide 23: Experienced Core Management
Experienced Core Management Andrew J. Norstrud, CFO - Mr. Norstrud has transitioned from interim CEO back into the position of Chief Financial Officer. He started with General Employment in March 2013 as CFO and brings significant experience with public companies in the areas of financial reporting,
Slide 24: Board of Directors
George A. Bajalia + President of Landmark Financial Corp.; served as President and Chief Executive Officer of Prolianz Division of MPS Group Inc. and as Chief Operating Officer of MPS: William M. Isaac + Former Chairman of the Federal Deposit Insurance Corporation (FDIC) 1981 - 1985; Founded regulat
Slide 25: Growth Strategy
Growth Strategy Ss NYSE: JOB General Employment Enterprises
Slide 26: Strategic Organic Growth Opportunities
Strategic Organic Grow pportunities 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 geographic
Slide 27: External Growth Strategy Opportunities
External Growth Strategy Opportunities Strategic Acquisitions OStrengthen existing service offerings & enhance mkt. share OAdd complementary high growth services & specialties Add new client/business opportunities OExpand into new geographies and markets 0Add new recruiting, sales & management talen
Slide 28: Healthcare, Professional, IT, Engineering, Accounting
f | Healthcare | | Professional IT Engineering | Accounting 1 Employment Enterprises
Slide 29: Strategic Acquisitions Criteria
Strategic Acquisitions Criteria OHigh 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 OEarn-out
Slide 30: Acquisition of Scribe Solutions
ition of Scribe Solutions qui = Health Care Staffing Acquisition closed 4/1/15 = Scribe provides Emergency Rooms (ER) & Physician Practices with highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) = Scribe recruits, qualifies, hires and trai
Slide 31: Acquisition of Agile Resources
7/31/15 Founded by Tricia Dempsey in 2003 and provides innovative IT staffing solutions and IT consulting services ranging from legacy platforms to emerging technologies to a diversified client base across many industry verticals Vast array of high-end IT staffing services and solutions offerings, p
Slide 32: Acquisition of Access Data
Acquisition of Access Data 10/5/15 Access Data founder William Daniel ("Dan") Dampier founded the business over 25 years ago, presently serves as the Chief Executive Officer (CEO) A member of GEE’s senior leadership team, Dan will assist with the execution of the overall strategic growth plan includ
Slide 33: Financial Overview
Financial Overview Ss NYSE: JOB General Employment Enterprises
Slide 34: Revenue and Gross Margin by Segment
Professional Direct Hire Industrial Services Placement % of Revenues 60% 23% 17% Gross Margin 12.06% 34.28% 100% Target Gross es eS Margin Range | 12:5%~ 16.5% | 30% — 35% 100% fe © ploy “All figures as of 6/30/15 as reflected on Form 10Q filed with the SEC ent Enter]
Slide 35: Unaudited Non-GAAP Balance Sheet Highlights & Metrics
udited Non- GAAP Balance Sheet Highlights & Metr As of 06/30/15 (S in 000 except metrics ; see footnote below) Cash & cash equivalents $1113 Accounts receivable, net $5,025 Net working capital $1,509 Total debt outstanding $5,732 Stockholders’ equity $11,788 Days sales outstanding est. (DSO) 47 Curr
Slide 36: Questions?
Questions? € General Employment Enterprises Employing America since 1893 NYSE: JOB General Employ
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