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 industrial contract services 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.
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| Three Months Ended
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| Six Months Ended
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| March 31,
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| March 31,
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| 2021 |
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| 2020 |
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| 2021 |
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| 2020 |
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Industrial Staffing Services |
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Industrial services revenue |
| $ | 4,023 |
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| $ | 4,471 |
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| $ | 9,134 |
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| $ | 10,126 |
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Industrial services gross margin (1) |
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| 8.8 | % |
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| 14.1 | % |
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| 29.3 | % |
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| 15.0 |
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Operating income (loss) |
| $ | (289 | ) |
| $ | (1,616 | ) |
| $ | 1,918 |
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| $ | (1,335 | ) |
Depreciation & amortization |
| $ | 15 |
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| $ | 70 |
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| $ | 44 |
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| $ | 139 |
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Professional Staffing Services |
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Permanent placement revenue |
| $ | 3,655 |
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| $ | 4,416 |
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| $ | 7,050 |
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| $ | 8,895 |
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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 |
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Professional services revenue |
| $ | 27,040 |
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| $ | 25,794 |
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| $ | 53,177 |
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| $ | 53,216 |
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Professional services gross margin |
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| 25.5 | % |
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| 26.6 | % |
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| 25.9 | % |
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| 26.5 |
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Operating income |
| $ | 2,644 |
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| $ | 2,126 |
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| $ | 4,024 |
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| $ | 3,688 |
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Depreciation and amortization |
| $ | 1,077 |
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| $ | 1,397 |
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| $ | 2,165 |
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| $ | 2,804 |
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Unallocated Expenses |
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Corporate administrative expenses |
| $ | 1,232 |
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| $ | 2,415 |
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| $ | 2,449 |
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| $ | 3,744 |
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Corporate facility expenses |
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| 91 |
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| 92 |
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| 173 |
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| 182 |
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Stock Compensation expense |
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| 293 |
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| 356 |
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| 604 |
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| 953 |
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Board related expenses |
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| 102 |
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| - |
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| 102 |
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Total unallocated expenses |
| $ | 1,718 |
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| $ | 2,863 |
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| $ | 3,328 |
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| $ | 4,879 |
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Consolidated |
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Total revenue |
| $ | 34,718 |
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| $ | 34,681 |
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| $ | 69,361 |
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| $ | 72,237 |
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Operating income (loss) |
|
| 637 |
|
|
| (2,353 | ) |
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| 2,614 |
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|
| (2,527 | ) |
Depreciation and amortization |
| $ | 1,092 |
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| $ | 1,467 |
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| $ | 2,209 |
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| $ | 2,943 |
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| 1)
| Includes ($219) and $0 of annual premium refund adjustment from the Ohio Bureau of Workers Compensation for the three months ended March 31, 2021 and 2020, respectively; and $1,318 and $50 for the six months ended March 31, 2021 and 2020, respectively. The Industrial Services gross margins normalized for the effects of these items were approximately 14.2% and 14.1% for the three months ended March 31, 2021 and 2020, respectively; and approximately 14.9% and 14.5% for the six months ended March 31, 2021 and 2020, respectively.
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