| 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.
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|
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. |
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