Release Date: December 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: At what price would GEE Group consider buying back stock, given the current trading levels? A: Derek Dewan, CEO, stated that the company constantly evaluates capital allocation strategies, including stock buybacks. The Board and senior management are discussing this, and while they want to protect the balance sheet, they are considering buybacks as part of their strategy, especially as they anticipate a more favorable economic environment.
Q: How does the company's performance compare to the industry, and what factors are affecting profitability? A: Derek Dewan explained that the company faced challenges similar to the industry, with permanent placements and project work being impacted by economic uncertainty. The company is optimistic about recovery and is adjusting its income statement to restore profitability while pursuing new business and strategic acquisitions.
Q: What revenue levels are needed for GEE Group to achieve breakeven and generate $5 million to $10 million in EBITDA? A: Kim Thorpe, CFO, noted that the company is close to breakeven and is investing in systems to improve profitability. Historically, revenue levels of $150 million and above have generated high single-digit EBITDA, and the company aims to achieve this through organic growth and M&A.
Q: How does the current national unemployment rate affect GEE Group's performance? A: Derek Dewan highlighted that while national unemployment rates suggest a tight labor market, the jobs added are mostly in lower-end sectors, which do not benefit GEE Group. The company operates in higher-end professional segments, which have been more affected by economic uncertainty.
Q: What are the demand trends toward the end of fiscal Q1 and into fiscal 2025? A: Derek Dewan mentioned that demand, particularly in IT, is showing signs of improvement. December's performance was better than the previous month, and the company is optimistic about increased hiring activity in late February and throughout the spring and summer.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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