Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v3.21.2
Segment Data
9 Months Ended
Jun. 30, 2021
15. Segment Data

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

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Industrial Staffing Services

 

 

 

 

 

 

 

 

 

 

 

 

Industrial services revenue

 

$ 3,792

 

 

$ 2,898

 

 

$ 12,927

 

 

$ 13,025

 

Industrial services gross margin (1)

 

 

15 %

 

 

37 %

 

 

25 %

 

 

20

 

Operating income (loss)

 

$ (389 )

 

$ 580

 

 

$ 1,525

 

 

$ (755 )
Depreciation & amortization

 

$ 17

 

 

$ 67

 

 

$ 62

 

 

$ 206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Staffing Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permanent placement revenue

 

$ 5,529

 

 

$ 3,101

 

 

$ 12,579

 

 

$ 11,996

 

Placement services gross margin

 

 

100 %

 

 

100 %

 

 

100 %

 

 

100

 

Professional services revenue

 

$ 28,747

 

 

$ 20,595

 

 

$ 81,923

 

 

$ 73,810

 

Professional services gross margin

 

 

27 %

 

 

27 %

 

 

26 %

 

 

27

 

Operating income

 

$ 3,589

 

 

$ 715

 

 

$ 7,613

 

 

$ 4,402

 

Depreciation and amortization

 

$ 1,076

 

 

$ 1,091

 

 

$ 3,240

 

 

$ 3,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate administrative expenses

 

$ 1,213

 

 

$ 2,539

 

 

$ 3,660

 

 

$ 6,283

 

Corporate facility expenses

 

 

101

 

 

 

116

 

 

 

274

 

 

 

298

 

Stock Compensation expense

 

 

231

 

 

 

337

 

 

 

835

 

 

 

1,290

 

Board related expenses

 

 

35

 

 

 

-

 

 

 

136

 

 

 

-

 

Total unallocated expenses

 

$ 1,580

 

 

$ 2,992

 

 

$ 4,905

 

 

$ 7,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$ 38,068

 

 

$ 26,594

 

 

$ 107,429

 

 

$ 98,831

 

Operating income (loss)

 

 

1,620

 

 

 

(1,697 )

 

 

4,233

 

 

 

(4,224 )
Depreciation and amortization

 

$ 1,093

 

 

$ 1,158

 

 

$ 3,302

 

 

$ 4,102

 

 

1)

Includes $(19) and $(697) of premium refund adjustments (credit to expense) from the Ohio Bureau of Workers Compensation for the three months ended June 30, 2021 and 2020, respectively; and $(1,337) and $(747) for the nine months ended June 30, 2021 and 2020, respectively. The Industrial Services gross margins normalized by excluding direct effects of these items were approximately 15% and 13% for the three months ended June 30, 2021 and 2020, respectively; and approximately 15% and 14% for the nine months ended June 30, 2021 and 2020, respectively.