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Tag: GEE Group Inc

  • PPP Loans Full Forgiveness: GEE Group Inc. (JOB) Soars After Hours

    Following the news of full forgiveness of PPP loans, GEE Group Inc. (JOB) stock gained a huge 10.35% after hours. On December 20, the company announced full forgiveness of its $19.9 million PPP loans.

    During the regular session, JOB stock fluctuated between $0.45 and $0.47 at 1.57 million shares. The stock closed the session with a loss of $1.56% at its closing price of $0.47. After the news emerged, the stock rallied in the after-hours to reach $0.51 at 870.92K shares.

    Currently, the staffing solutions provider, GEE Group Inc. has a market capitalization of $53.97 million. Moreover, the company has 114.1 million shares outstanding in the market.

    JOB’s Loan Forgiveness

    The company had applied for the forgiveness of $19.9 million of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans along with its subsidiaries. This was done through BBVA USA (currently PNC Bank, National Association, PNC) in fiscal 2022. Hence, all the PPP loans with accrued interest were forgiven in accordance with the Coronavirus Aid, Relief, and Economics Security Act (CARES Act).

    Previously, a PPP loan of $3.4 million approx. was forgiven for JOB and its subsidiaries in fiscal 2021. Moreover, the accrued interest of approx. $34,000 was also forgiven along with the loan. Furthermore, the PNC notified JOB of the forgiveness of the remaining PPP loans on December 14. The remaining PPP loans were $16.5 million approx. plus accrued interest of $268,000 approx.

    Hence, the company expects to declare zero outstanding debt in the upcoming financial results.

    Insight into upcoming Financial Results

    In the loan forgiveness announcement, the Chairman and CEO of GEE Group, Derek E. Dewan shared insight into the upcoming financials. The company expects to declare its Q4 and full fiscal year financial results this week. According to Mr. Dewan, JOB has $10 million approx. in cash, and no outstanding debt. Moreover, the company also has $15 million approx. under its ABL bank’s credit facility.

    Recent Developments

    Recently, the company participated in two investor conferences. Firstly, JOB’s Chairman and CEO, Mr. Dewan discussed the company’s operations, outlook, and growth strategy in the Q4 Virtual Investor Summit. Moreover, the Summit was held on November 16-17, 2021.

    Secondly, the company also presented at the LD Micro Main Event investor conference IN Los Angeles, California. The conference was held from October 12 to 14, 2021. Furthermore, Kim Thrope (CFO) and Alex Stuckey (CAO) were the ones to present at the conference.

  • Why Has The GEE Group Stock Gained 12% During Extended Trading?

    GEE Group Inc. (JOB), a provider of professional staffing services and human resource solutions, was trading at $0.64 in after-hours at the time of this writing, up 12.28%. JOB stock dropped -0.68% to $0.57 at the close of Thursday trading. Volume for GEE group stock remained at 6.95 million shares, down from 7.76 million shares on average over the past 50 days.

    Job shares are down by -5.36% over the past week, and their value has increased by 10.83% over the past 12 months. JOB stock has lost -58.76% over the past three months, while it has lost -45.80% over the past six months. The JOB, along with its outstanding shares of 113.50 million, has a current market value of $65.78 million.

    As JOB stock rose without any recent news, we are able to provide an even more detailed overview of JOB by referring to recent developments.

    Has JOB been going well lately?

    Since 1893, Gee Group has provided specialized staffing services. With its names Agile Resources, Triad, Ashley Ellis, Paladin Consulting, General Employment, Omni-One, and Access Data Consulting, JOB operates in two market niches: technical and engineering staffing services, as well as financial and accounting staffing services. Through its Scribe Solutions brand, JOB also provides medical scribes for emergency departments and medical practices by providing necessary documentation for patient care in conjunction with electronic medical records (EMR).

    Results for the second quarter ended March 31, 2021 are the latest financial position announced by GEE Group.

    Q2 2021 Highlights:

    • JOB’s revenues for the reported quarter were $34.7 million, up marginally from the same quarter of fiscal year 2020.
    • In the second quarter of the fiscal year 2021, JOB earned approximately $637,000 in operating income as opposed to a loss of approximately $(2.4) million in the same quarter a year ago.
    • JOB’s non-GAAP financial measure of adjusted EBITDA (about $2.2 million) was up from about $783,000 for the second quarter of the fiscal year 2020.
    • As of quarter end, JOB had approximately $14.3 million in cash and approximately $8.7 million in net working capital.
    • JOB completed its common stock equity offering in April 2021 together with the exercise of the over-allotment option.
    • JOB raised $57.5 million in gross proceeds before underwriters’ discount, commissions, and expenses.

    Was cost cutting beneficial to JOB?

    In the fiscal 2021 second quarter, GEE Group (JOB)’s selling, general, and administrative expenses (SG&A) decreased by approximately $3.6 million, reaching approximately 26.4% of revenue, down from approximately 36.9% in the fiscal 2020 second quarter. It is expected that SG&A expenses will decrease mainly as a result of COVID-19 mitigation efforts to reduce costs and position GEE for a brighter future.