Quarterly report pursuant to Section 13 or 15(d)

Segment Data

Segment Data

9 Months Ended

Jun. 30, 2018

The Company provides the following distinctive services: (a) direct hire placement services, (b) temporary professional services staffing in the fields of information technology, engineering, medical, and accounting, and (c) temporary light industrial staffing. These distinct services can be divided into two reportable segments, Industrial Staffing Services and Professional Staffing Services. Some selling, general and administrative expenses are not fully allocated among light industrial services and professional staffing services.

Unallocated Corporate expenses primarily include, certain executive compensation expenses and salaries, certain administrative salaries, corporate legal expenses, stock amortization expenses, consulting expenses, audit fees, corporate rent and facility costs, board fees, acquisition, integration and restructuring expenses and interest expense.

	Three Months Ended						Nine Months Ended
(in thousands)	June 30						June 30
	2018			2017			2018			2017
Industrial Staffing Services
Industrial services revenue	$	5,166		$	6,718		$	16,165		$	18,824
Industrial services gross margin		13.06	%		14.08			14.15	%		14.69	%
Operating income	$	31		$	365		$	315		$	954
Depreciation & amortization		65			43			197			184
Accounts receivable – net		3,386			3,967			3,386			3,967
Intangible assets		526			745			526			745
Goodwill		1,084			1,084			1,084			1,084
Total assets	$	5,555		$	8,484		$	5,555		$	8,484

Professional Staffing Services
Permanent placement revenue	$	6,388		$	5,969		$	17,496		$	8,578
Placement services gross margin		100	%		100	%		100	%		100	%
Professional services revenue	$	28,713		$	33,382		$	91,695		$	61,222
Professional services gross margin		26.67	%		29.29	%		26.54	%		26.87	%
Operating income	$	2,301		$	535		$	5,861		$	2,659
Depreciation and amortization		1,436			1,705			4,289			2,452
Accounts receivable – net		17,780			20,073			17,780			20,073
Intangible assets		30,336			36,541			30,336			36,541
Goodwill		75,509			71,967			75,509			71,967
Total assets	$	128,806		$	132,478		$	128,806		$	132,478

Unallocated Expenses
Corporate administrative expenses	$	686		$	900		$	1,065		$	2,135
Corporate facility expenses		139			80			287			223
Stock option amortization expense		399			255			1,028			640
Board related expenses		-			-			-			38
Acquisition, integration and restructuring expenses		514			2,206			1,712			2,306
Total unallocated expenses	$	1,738		$	3,441		$	4,092		$	5,342

Consolidated
Total revenue	$	40,267		$	46,069		$	125,356		$	88,624
Operating income		595			(2,446	)		2,084			(1,642	)
Depreciation and amortization		1,501			1,748			4,486			2,636
Total accounts receivables – net		21,166			24,040			21,166			24,040
Intangible assets		30,862			37,286			30,862			37,286
Goodwill		76,593			73,051			76,593			73,051
Total assets	$	134,361		$	140,962		$	134,361		$	140,962