Annual report pursuant to Section 13 and 15(d)

Segment Data

v3.19.3.a.u2
Segment Data
12 Months Ended
Sep. 30, 2019
Segment Data  
13. Segment Data

The Company provides the following distinctive services: (a) direct hire placement services, (b) temporary professional services staffing in the fields of information technology, accounting, finance, office, engineering, and medical, and (c) temporary light industrial staffing. These Company’s 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 compensation expenses, consulting expenses, audit fees, corporate rent and facility costs, board fees, acquisition, integration and restructuring expenses, and interest expense.

 

 

Year Ended September 30,

 

(In thousands)

 

2019

 

2018

 

Industrial Staffing Services

 

Industrial services revenue

 

$

21,710

 

$

21,648

 

Industrial services gross margin

 

20.8

%

 

17.9

%

Operating income

 

$

2,193

 

$

1,338

 

Depreciation & amortization

 

263

 

259

 

Accounts receivable net

 

3,660

 

3,450

 

Intangible assets

 

246

 

471

 

Goodwill

 

1,084

 

1,084

 

Total assets

 

$

4,990

 

$

5,005

 

Professional Staffing Services

 

Permanent placement revenue

 

$

18,531

 

$

23,056

 

Placement services gross margin

 

100

%

 

100

%

Professional services revenue

 

$

111,433

 

$

120,580

 

Professional services gross margin

 

26.0

%

 

26.5

%

Operating income1,2

 

$

3,338

 

$

9,735

 

Depreciation and amortization

 

5,672

 

5,713

 

Accounts receivable net

 

17,166

 

17,305

 

Intangible assets

 

23,635

 

28,996

 

Goodwill

 

71,209

 

75,509

 

Total assets

 

$

119,491

 

$

128,596

 

Unallocated Expenses

 

Corporate administrative expenses2

 

$

3,683

 

$

3,604

 

Corporate facility expenses

 

332

 

255

 

Stock option amortization expense

 

2,186

 

1,660

 

Board related expenses

 

2

 

-

 

Acquisition, integration and restructuring expenses

 

4,281

 

3,092

 

Total unallocated expenses

 

$

10,484

 

$

8,611

 

Consolidated

 

Total revenue

 

$

151,674

 

$

165,284

 

Operating (loss) income

 

(4,953

)

 

2,462

 

Depreciation and amortization

 

5,935

 

5,972

 

Total accounts receivables net

 

20,826

 

20,755

 

Intangible assets

 

23,881

 

29,467

 

Goodwill

 

72,293

 

76,593

 

Total assets

 

$

124,481

 

$

133,601

 

1 Professional Staffing Services operating income for the year ended September 30, 2019 includes the effect of a goodwill impairment charge of $4.3 million.

 

2 Certain administrative expenses previously allocated to the Professional Staffing Services segment for the year ended September 30, 2018, in the amount of approximately $0.9 million, have been reclassified to corporate administrative expenses presented above, in order to conform with the current classification of these expenses for the year ended September 30, 2019.