Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.20.4
Segment Data
3 Months Ended
Dec. 31, 2020
15. Segment Data

The Company provides direct hire placement services and temporary professional contract staffing services in the fields of information technology, finance, accounting and office (“FA&O”), engineering, and medical within its Professional Services segment, and temporary contract light industrial staffing within its Industrial Services segment. The Company’s revenues, cost of services and a substantial portion of its operating costs and expenses can be divided into these two reportable segments.

 

Selling, general and administrative (“SG&A”) expenses, including substantially all corporate expenses, are not entirely allocated among Industrial 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.

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Industrial Staffing Services

 

 

 

 

 

 

Industrial services revenue

 

$ 5,111

 

 

$ 5,655

 

Industrial services gross margin (1)

 

 

45.5 %

 

 

15.6 %
Operating income

 

$ 2,207

 

 

$ 281

 

Depreciation & amortization

 

$ 29

 

 

$ 69

 

 

 

 

 

 

 

 

 

 

Professional Staffing Services

 

 

 

 

 

 

 

 

Permanent placement revenue

 

$ 3,395

 

 

$ 4,479

 

Placement services gross margin

 

 

100 %

 

 

100 %
Professional services revenue

 

$ 26,137

 

 

$ 27,423

 

Professional services gross margin

 

 

26.2 %

 

 

26.4 %
Operating income

 

$ 1,380

 

 

$ 1,562

 

Depreciation and amortization

 

$ 1,088

 

 

$ 1,408

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

Corporate administrative expenses

 

$ 1,218

 

 

$ 1,329

 

Corporate facility expenses

 

 

82

 

 

 

90

 

Stock Compensation expense

 

 

311

 

 

 

597

 

Total unallocated expenses

 

$ 1,611

 

 

$ 2,016

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Total revenue

 

$ 34,643

 

 

$ 37,557

 

Operating income (loss)

 

 

1,976

 

 

 

(173 )
Depreciation and amortization

 

$ 1,117

 

 

$ 1,477

 

  

 

(1)

Three months ended December 31, 2020 include $1,537 of annual premium refunds from the Ohio Bureau of Workers Compensation. The Industrial Services gross margin normalized for the effects of these items were approximately 15.4% for the three months ended December 31, 2020.