GEE Group reports revenue down 4% in fiscal Q2 as Covid-19 impact takes hold


Staffing firm GEE Group Inc. (NYSEAMERICAN: JOB) reported revenue fell 4.1% in its fiscal second quarter ended March 31. The Jacksonville, Florida-headquartered staffing provider reported contract staffing revenue fell 4.9% in the quarter due to the impact of Covid-19 pandemic, while direct-hire revenue rose 1.5%.

(US$ thousands) Q2 2020 Q2 2019 % change
Net revenue $34,681 $36,177 -4.1%
Gross profit $11,914 $11,718 1.7%
Gross margin 34.4% 32.4%  
Net loss ($5,428) ($3,890) nm

The company noted direct-hire revenue increased in the earlier months of the second quarter, while demand weakened in the second half of March.

Revenue by segment

(US$ thousands) Q2 2020 Q2 2019 % change
Contract staffing services $30,265 $31,827 -4.9%
Direct hire placement services $4,416 $4,350 1.5%

GEE Group provides staffing in IT, accounting/finance, office, engineering and medical.

The company noted professional contract staffing services revenue fell 4% to $25.8 million in the second quarter while industrial contract staffing services revenue fell 12% to approximately $4.5 million.

GEE also noted in a regulatory filing that it and its subsidiaries entered into nine unsecured promissory notes payable under the Payroll Protection Program on May 5 and received net funds totaling $19.9 million.

Share price and market cap

Shares in GEE Group were down 5.2% to approximately 29 cents today as of 12:53 p.m. Eastern time; the company had a market cap of $4.3 million, according to