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GEE Group revenue jumps with SNI acquisition in fiscal Q3

August 14, 2017

GEE Group Inc. (NYSE MKT: JOB) reported revenue jumped in its fiscal third quarter ended June 30 thanks to its acquisition of SNI Companies that closed on April 3, and gross margin improved. SNI had ranked as one of the largest US staffing firms, according to Staffing Industry Analysts.

“The use of contingent labor in the ‘gig economy’ is robust and the demand for our services continues to be strong in a very tight domestic job market,” Chairman and CEO Derek Dewan said. “With GEE’s enhanced service capability and its expanded geographic footprint, we expect to achieve continued growth in revenue and profitability.”

Including the acquisition, third-quarter revenue of $46.1 million was up 110% over the same quarter last year at Naperville, Ill-based GEE Group. Contract staffing revenue was up 87%, and direct hire revenue rose 13%.

The company said the increase in contract staffing revenue was primarily due to the acquisition of SNI and an increase of $1.4 million in industrial staffing revenue.

GEE Group’s gross margin improved to 37.0% in the quarter from 28.5% from the same period last year. The company cited an increase in higher margin contract staffing revenue and direct placement revenue as well as an overall change in revenue mix.

Net loss for the third quarter was $6 million, compared to net income of $528,000 in the year-ago quarter. The company reported expenses with the SNI acquisition as well increased interest expense and loss on extinguishment of debt as the cause the loss in the most-recent quarter.

GEE Group’s brands include Access Data Consulting, Agile Resources, Ashley Ellis, General Employment, Omni-One, Paladin Consulting, Triad and Scribe Solutions.