Annual report pursuant to Section 13 and 15(d)

Segment Data

v3.21.4
Segment Data
 12 Months Ended
Sep. 30, 2021
16. Segment Data

16. Segment Data

 

The Company provides the following distinctive services: (a) direct hire placement services, (b) temporary professional services staffing in the fields of information technology, accounting, finance and office, engineering, and medical, and (c) temporary industrial staffing. These services can be divided into two reporting units: Industrial Staffing Services and Professional Staffing Services. Some selling, general and administrative expenses are not fully allocated among Industrial Services 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.

 

 

 

Year Ended September 30,

 

 

 

2021

 

 

2020

 

Industrial Staffing Services

 

 

 

 

 

 

Industrial services revenue

 

 $ 17,332

 

 

 $ 17,560

 

Industrial services gross margin1

 

 

 22.3 %

 

 

 21.7

%

Operating income (loss)

 

 $ 1,646

 

 

 $ (70 )

Depreciation and amortization

 

 

 77

 

 

 

 274

 

Accounts receivable – net

 

 

 2,546

 

 

 

 2,470

 

Intangible assets

 

 

 -

 

 

 

 17

 

Goodwill

 

 

 1,083

 

 

 

 1,084

 

Total assets

 

 $ 3,917

 

 

 $ 5,060

 

 

 

 

 

 

 

 

 

 

Professional Staffing Services

 

 

 

 

 

 

 

 

Permanent placement revenue

 

 $ 19,078

 

 

 $ 15,309

 

Placement services gross margin

 

 

 100 %

 

 

 100

%

Professional services revenue

 

 $ 112,470

 

 

 $ 96,966

 

Professional services gross margin

 

 

 26.3 %

 

 

 26.4

%

Operating income (loss)

 

 $ 11,600

 

 

 $ (3,480 )

Depreciation and amortization

 

 

 4,323

 

 

 

 5,012

 

Accounts receivable – net

 

 

 20,524

 

 

 

 13,577

 

Intangible assets

 

 

 14,754

 

 

 

 18,826

 

Goodwill

 

 

 62,360

 

 

 

 62,359

 

Total assets

 

 $ 113,672

 

 

 $ 114,953

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

Corporate administrative expenses2

 

 $ 5,280

 

 

 $ 8,312

 

Corporate facility expenses

 

 

 370

 

 

 

 377

 

Stock compensation expense

 

 

 970

 

 

 

 1,559

 

Board related expenses

 

 

 136

 

 

 

 35

 

Total unallocated expenses

 

 $ 6,756

 

 

 $ 10,283

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Total revenue

 

 $ 148,880

 

 

 $ 129,835

 

Operating income (loss)

 

 

 6,490

 

 

 

 (13,833 )

Depreciation and amortization

 

 

 4,400

 

 

 

 5,286

 

Total accounts receivables – net

 

 

 23,070

 

 

 

 16,047

 

Intangible assets

 

 

 14,754

 

 

 

 18,843

 

Goodwill

 

 

 63,443

 

 

 

 63,443

 

Total assets

 

 $ 117,589

 

 

 $ 120,013

 

 

1 Includes $1,270 and $1,284 of annual premium refunds from the Ohio Bureau of Workers Compensation for the fiscal 2021 and 2020, respectively. The Industrial Services gross margins excluding the impact of these items were approximately 14.9% and 14.4% for the fiscal 2021 and 2020, respectively.

2 Includes certain costs and expenses incurred related to restructuring activities, including corporate legal and general expenses associated with capital markets activities and not directly associated with core business operations. These costs were $412 and $4,277 for fiscal 2021 and 2020, respectively, and include mainly expenses associated with former closed and consolidated locations, personnel costs associated with eliminated positions, costs incurred related to acquisitions and associated legal and professional costs.