| 14. 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 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.
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| Three Months Ended
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| Nine Months Ended
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| June 30,
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| June 30,
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| 2020
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| 2019
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| 2020
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| 2019
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| Industrial Staffing Services
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| Industrial services revenue
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| $ | 2,898 |
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| $ | 5,442 |
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| $ | 13,025 |
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| $ | 16,157 |
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| Industrial services gross margin (1)
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| 37.1 | % |
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| 26.8 | % |
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| 19.9 | % |
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| 22.5 | % |
| Operating (loss) income
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| $ | 580 |
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| $ | 1,572 |
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| $ | (755 | ) |
| $ | 1,908 |
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| Depreciation & amortization
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| $ | 67 |
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| $ | 65 |
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| $ | 206 |
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| $ | 195 |
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| Professional Staffing Services
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| Permanent placement revenue
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| $ | 3,101 |
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| $ | 4,884 |
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| $ | 11,996 |
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| $ | 13,764 |
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| Placement services gross margin
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| 100 | % |
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| 100 | % |
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| 100 | % |
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| 100 | % |
| Professional services revenue
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| $ | 20,595 |
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| $ | 27,775 |
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| $ | 73,810 |
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| $ | 82,900 |
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| Professional services gross margin
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| 26.6 | % |
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| 26.1 | % |
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| 26.5 | % |
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| 25.7 | % |
| Operating income (loss)
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| $ | 715 |
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| $ | (3,333 | ) |
| $ | 4,402 |
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| $ | 975 |
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| Depreciation and amortization
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| $ | 1,091 |
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| $ | 1,420 |
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| $ | 3,896 |
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| $ | 4,263 |
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| Unallocated Expenses
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| Corporate administrative expenses (2)
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| $ | 2,539 |
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| $ | 1,393 |
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| $ | 6,283 |
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| $ | 5,532 |
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| Corporate facility expenses
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| 116 |
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| 79 |
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| 298 |
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| 257 |
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| Stock Compensation expense
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| 337 |
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| 531 |
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| 1,290 |
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| 1,661 |
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| Total unallocated expenses
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| $ | 2,992 |
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| $ | 2,003 |
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| $ | 7,871 |
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| $ | 7,450 |
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| Consolidated
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| Total revenue
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| $ | 26,594 |
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| $ | 38,101 |
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| $ | 98,831 |
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| $ | 112,821 |
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| Operating loss
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| (1,697 | ) |
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| (3,764 | ) |
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| (4,224 | ) |
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| (4,567 | ) |
| Depreciation and amortization
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| $ | 1,158 |
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| $ | 1,485 |
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| $ | 4,102 |
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| $ | 4,458 |
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| (1)
| Includes $697 and $658 of annual premium refunds from the Ohio Bureau of Workers Compensation for the three months ended June 30, 2020 and 2019, respectively; and $747 and $1,357 for the nine months ended June 30, 2020 and 2019, respectively. The Industrial Services gross margins normalized for the effects of these items were approximately 13% and 15% for the three months ended June 30, 2020 and 2019, respectively; and approximately 14% and 14% for the nine months ended June 30, 2020 and 2019, respectively. |
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| (2)
| Includes certain costs and expenses incurred related to restructuring activities, including corporate legal and general expenses associated with capital markets activities and not directly associated with core business operations. These costs were $1,557 and $564 for the three-month periods ended June 30, 2020 and 2019, respectively, and include mainly expenses associated with former closed and consolidated locations, personnel costs associated with eliminated positions, costs incurred related to acquisitions and associated legal and professional costs. These costs were $3,247 and $2,990 for the nine-month periods ended June 30, 2020 and 2019, respectively. |
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