Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.21.1
Segment Data
6 Months Ended
Mar. 31, 2021
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.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Industrial Staffing Services

 

 

 

 

 

 

 

 

 

 

 

 

Industrial services revenue

 

$ 4,023

 

 

$ 4,471

 

 

$ 9,134

 

 

$ 10,126

 

Industrial services gross margin (1)

 

 

8.8 %

 

 

14.1 %

 

 

29.3 %

 

 

15.0

 

Operating income (loss)

 

$ (289 )

 

$ (1,616 )

 

$ 1,918

 

 

$ (1,335 )
Depreciation & amortization

 

$ 15

 

 

$ 70

 

 

$ 44

 

 

$ 139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Staffing Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permanent placement revenue

 

$ 3,655

 

 

$ 4,416

 

 

$ 7,050

 

 

$ 8,895

 

Placement services gross margin

 

 

100 %

 

 

100 %

 

 

100 %

 

 

100

 

Professional services revenue

 

$ 27,040

 

 

$ 25,794

 

 

$ 53,177

 

 

$ 53,216

 

Professional services gross margin

 

 

25.5 %

 

 

26.6 %

 

 

25.9 %

 

 

26.5

 

Operating income

 

$ 2,644

 

 

$ 2,126

 

 

$ 4,024

 

 

$ 3,688

 

Depreciation and amortization

 

$ 1,077

 

 

$ 1,397

 

 

$ 2,165

 

 

$ 2,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate administrative expenses

 

$ 1,232

 

 

$ 2,415

 

 

$ 2,449

 

 

$ 3,744

 

Corporate facility expenses

 

 

91

 

 

 

92

 

 

 

173

 

 

 

182

 

Stock Compensation expense

 

 

293

 

 

 

356

 

 

 

604

 

 

 

953

 

Board related expenses

 

 

102

 

 

 

-

 

 

 

102

 

 

 

 

 

Total unallocated expenses

 

$ 1,718

 

 

$ 2,863

 

 

$ 3,328

 

 

$ 4,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$ 34,718

 

 

$ 34,681

 

 

$ 69,361

 

 

$ 72,237

 

Operating income (loss)

 

 

637

 

 

 

(2,353 )

 

 

2,614

 

 

 

(2,527 )
Depreciation and amortization

 

$ 1,092

 

 

$ 1,467

 

 

$ 2,209

 

 

$ 2,943

 

_____________  

 

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.