Annual report pursuant to Section 13 and 15(d)

Segment Data

v3.22.4
Segment Data
 12 Months Ended
Sep. 30, 2022
Segment Data

14. 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 reportable segments: Industrial Staffing Services and Professional Staffing Services. Some selling, general and administrative expenses are not fully allocated among these segments.

 

Unallocated corporate expenses primarily include certain executive compensation expenses and salaries, certain administrative salaries, corporate legal expenses, share-based compensation expenses, consulting expenses, audit fees, corporate rent and facility costs, board related fees, acquisition, integration and restructuring expenses, and interest expense.

 

 

Year Ended September 30,

 

 

 

2022

 

 

2021

 

Industrial Staffing Services

 

 

 

 

 

 

Contract services revenue

 

 $ 15,945

 

 

 $ 17,332

 

Contract services gross margin1

 

 

 15.4%

 

 

 22.3%

Income from operations

 

 $ 873

 

 

 $ 1,646

 

Depreciation and amortization

 

 

 64

 

 

 

 77

 

Accounts receivable – net

 

 

 1,991

 

 

 

 2,546

 

Intangible assets

 

 

 -

 

 

 

 -

 

Goodwill

 

 

 1,083

 

 

 

 1,083

 

Total assets

 

 

 3,817

 

 

 

 3,917

 

 

 

 

 

 

 

 

 

 

Professional Staffing Services

 

 

 

 

 

 

 

 

Permanent placement revenue

 

 $ 26,605

 

 

 $ 19,078

 

Placement services gross margin

 

 

 100%

 

 

 100%

Contract services revenue

 

 $ 122,562

 

 

 $ 112,470

 

Contract services gross margin

 

 

 26.6%

 

 

 26.3%

Income from operations

 

 $ 11,523

 

 

 $ 11,600

 

Depreciation and amortization

 

 

 3,776

 

 

 

 4,323

 

Accounts receivable – net

 

 

 20,779

 

 

 

 20,524

 

Intangible assets

 

 

 11,285

 

 

 

 14,754

 

Goodwill

 

 

 60,210

 

 

 

 62,360

 

Total assets

 

 

 115,737

 

 

 

 113,672

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

Corporate administrative expenses2

 

 $ 7,464

 

 

 $ 5,280

 

Corporate facility expenses

 

 

 379

 

 

 

 370

 

Share-based compensation expense

 

 

 635

 

 

 

 970

 

Board related expenses

 

 

 143

 

 

 

 136

 

Total unallocated expenses

 

 $ 8,621

 

 

 $ 6,756

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Total revenue

 

 $ 165,112

 

 

 $ 148,880

 

Income from operations

 

 

 3,775

 

 

 

 6,490

 

Depreciation and amortization

 

 

 3,840

 

 

 

 4,400

 

Total accounts receivables – net

 

 

 22,770

 

 

 

 23,070

 

Intangible assets

 

 

 11,285

 

 

 

 14,754

 

Goodwill

 

 

 61,293

 

 

 

 63,443

 

Total assets

 

 

 119,554

 

 

 

 117,589

 

  

1 Includes credits of $78 and $1,270 for annual premium refunds from the Ohio Bureau of Workers Compensation in fiscal 2022 and 2021, respectively. The Industrial Services gross margin excluding the impact of these items was approximately 14.9% for both fiscal 2022 and 2021.

 

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 $2,060 and $412 for fiscal 2022 and 2021, respectively, and include mainly expenses associated with former closed and consolidated locations, personnel costs associated with eliminated positions, and legal and professional costs.