SeeThruEquity Issues Update on GEE Group Inc. (NYSE MKT: JOB)

NEW YORK, NY / ACCESSWIRE / August 18, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on GEE Group Inc. (NYSE MKT: JOB).

The report is available here: JOB August 2016 Update Note.

On August 15, 2016, JOB reported exceptional FY3Q16 earnings results, with highlights including:

Revenue grew by 91% to reach $22mn in FY3Q16 and 98% in the first three quarters of FY16 to reach $61.3mn.
Adjusted EBITDA rose by approximately 3x YoY to reach $1.3mn in 3Q16 versus $0.4mn in FY3Q15.
GAAP EPS was solidly positive at $0.06 per basic share

Highlights from the update note are as follows:

JOB executing growth plan as growth in revenue and profitability highlight 3Q16 earnings results

JOB reported exceptional growth in FY3Q16 results on August 15, 2016, with revenues growing by over 90% to reach $22mn in the quarter, versus $11.5mn in FY3Q15. JOB also reported an increase in profitability, with the company reporting basic and diluted EPS of $0.05 and $0.06, respectively. Management-defined, Adjusted EBITDA rose by approximately 3x, with Adjusted EBITDA coming in at $1.3mn, or 6% of revenues, in FY3Q16m versus $0.4mn in FY3Q15. The results reflect the impact of the company’s acquisitions and organic growth initiatives implemented over the last year by JOB CEO Derek Dewan, CFO Andrew Norstrud and the company’s strong leadership team.

JOB benefitting from shift in mix to professional staffing

JOB management also reported strength from the professional staffing portion of its revenues, including staffing solutions for IT, healthcare, finance and accounting, and engineering. These areas have been a strategic focus of the company’s as it pursues growth acquisitions, as they represent higher growth and more profitable spaces of the staffing market. In 3Q16, revenues from professional contract and direct placement services in these areas represented 76% of total revenues, up from approximately 40% in the same period in FY2015.

See compelling value in shares; maintain target

We have been impressed at the evolution of JOB over our coverage period. Shares have risen by over 230% since (split-adjusted) since we initiated coverage on the company in 2014, as management has steered the company from a distressed turnaround into a compelling acquisition and organic growth story with accelerating revenues and positive cash flow. We see shares as offering compelling value at the recent price of $6.22, which suggests a multiple of 0.8x EV/Revenue using our 2016E revenue estimate of $83mn, and appears to discount the ability of management to accelerate growth and profitability with more accretive acquisitions over the next year in the highly fragmented $142 billion US staffing market.

Please review important disclosures at www.seethruequity.com.

About GEE Group Inc.

GEE Group Inc. was incorporated in the State of Illinois in 1962, is a provider of specialized staffing solutions and is the successor to employment offices doing business since 1893. The Company operates in two industry segments, providing professional staffing services and solutions, and light industrial staffing services through the names of General Employment, Access Data Consulting, Agile Resources, Ashley Ellis, Triad, Omni-One, and Paladin Consulting. Also, in the healthcare sector, GEE Group through its Scribe Solutions brand staffs medical scribes who assist physicians in emergency departments of hospitals and in medical practices by providing required documentation for patient care in connection with electronic medical records (EMR).

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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