Gee Group Stock Price, News & Analysis

GEE Group reported a revenue of $34.7 million for Q2 2021, a slight increase from the previous year. Operating income rose to $637,000 compared to a loss of $(2.4) million in Q2 2020. Adjusted EBITDA improved significantly to $2 million, up from $783,000 YoY. The company benefited from a $279,000 gain from the forgiveness of a PPP loan and closed a new $20 million ABL credit facility. Total cash at quarter-end stood at $14.3 million.

GEE Group Inc. (JOB) announced the full exercise of a 15% over-allotment option, selling an additional 12,499,999 shares at $0.60 each, generating approximately $7.5 million. This follows a prior public offering of 83,333,333 shares that raised about $50 million. Proceeds will be used to pay off $56 million in debt and cover $5 million in fees owed to lenders, with remaining funds allocated for general corporate purposes and potential acquisitions. The company is involved in providing staffing solutions across several sectors, including healthcare and technology.

GEE Group Inc. (JOB) has successfully repaid approximately $56 million in outstanding debt using proceeds from a public offering and available cash. This repayment decreases their debt load by about $103 million, leading to an estimated annual interest savings of $12 million.

CEO Derek Dewan noted that this milestone strengthens the company's financial position, enabling planned growth through acquisitions and organic strategies. GEE also anticipates closing a $20 million revolving credit facility at a significantly reduced interest rate, further enhancing financial stability.

GEE Group Inc. (AMEX:JOB) announced the closing of its public offering of 83,333,333 shares at $0.60 each, netting approximately $50 million. This offering includes a 45-day option for underwriters to purchase an additional 12,499,999 shares. Funds will address $55 million in outstanding debts and support general corporate purposes, including working capital and acquisitions. ThinkEquity managed the offering. The company, which provides staffing services in IT, engineering, finance, and healthcare, faces potential headwinds due to the ongoing impact of COVID-19 on business operations.

GEE Group Inc. (NYSE American: JOB) announced a public offering of 83,333,333 shares at $0.60 each, aiming to raise about $50 million. The proceeds will be used primarily to repay $55 million in outstanding debt and for general corporate purposes, including working capital and potential acquisitions. The offering will close on April 19, 2021, pending customary conditions. ThinkEquity is the sole book-running manager for this offering.

GEE Group (NYSE: JOB) has secured a commitment for a $20 million asset-based revolving credit facility from CIT, designed to enhance its liquidity and reduce interest expenses. This facility, collateralized by company assets, will replace the existing asset-based lending facility, potentially lowering the interest rate from approximately 11% to a range of 4% to 5.25%. Anticipated closure of the facility is expected by June 30, 2021, contingent on standard due diligence and compliance. The CEO expressed confidence in the facility's ability to support the company's financial needs.

GEE Group Inc. (NYSE American:JOB) announces the opening of its IT staffing subsidiary Agile Resources' new office in Austin, Texas, led by Clint Hawkins. This expansion aims to meet the increasing demand for tech talent amid Austin's booming market, particularly for SaaS companies. The move is part of Agile's aggressive growth strategy, which focuses on enhancing local client engagement and contractor base. President Matthew Marini emphasizes the opportunity presented by Austin's growth, citing Clint's 17 years of experience in tech recruiting.

GEE Group (NYSE American: JOB) reported a revenue growth of 11.7% in its fiscal Q1 2021, reaching approximately $34.6 million, though it decreased by 8.0% year-over-year. Contract staffing services accounted for 90.2% of total revenue, indicating a slight decline from the previous year. The gross margin improved to 36.3%. GAAP income from operations was $2 million, a turnaround from a loss in the same quarter last year. Adjusted EBITDA rose to $3.5 million. SG&A expenses decreased to 27% of revenue. The company aims to strengthen its balance sheet further in 2021.