GEE Group, Inc. (AMEX:JOB) Q4 2023 Earnings Call Transcript
GEE Group, Inc. (AMEX:JOB) Q4 2023 Earnings Call Transcript December 19, 2023
JOB isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Derek Dewan: Hello, and welcome to the GEE Group Fiscal Fourth Quarter and Year End September 30, 2023 Earnings and our update for 2024 Webcast Conference Call. I'm Derek Dewan, the Chairman and Chief Executive Officer of GEE Group, and will be hosting today's call. Joining me as a co-presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer. Thank you for joining us today. It is our pleasure to share with you GEE Group's results for the fiscal year and the fourth quarter ended September 30, 2023, and provide you with our outlook for the fiscal year 2024 and the foreseeable future. Some comments Kim and I will make may be considered forward-looking, including predictions, estimates, expectations and other statements about our future performance.
These represent our current judgments of what the future holds and are subject to risks and uncertainties that actual results may differ materially from our forward-looking statements. These risks and uncertainties are described below under the caption, Forward-Looking Statements Safe Harbor and in Monday's earnings press release and our most recent Form 10-Q, Form 10-K and other SEC filings under the captions, Cautionary Statement Regarding Forward-Looking Statements and Forward-Looking Statements Safe Harbor. We assume no obligation to update statements made on today's call. During this presentation, we will also talk about some non-GAAP financial measures. Reconciliations and explanations of the non-GAAP financial measures that we address today are included in our earnings press release.
Our presentation of financial amounts and related items, including growth rates, margins and trend metrics are rounded are based upon rounded amounts for purposes of this call and all amounts, percentages and related items presented are approximations accordingly. For your convenience, our prepared remarks for today's call are available in the Investor Center of our website, www.geegroup.com. Having turned in the record performance and results for the fiscal 2022 year, we encountered significant macroeconomic and staffing industry particular headwinds in fiscal 2023, which negatively impacted our full fiscal year and fourth quarter ended September 30, 2023. Consolidated revenues were $152.4 million for the fiscal year and revenues for our fiscal fourth quarter were $34.3 million.
Gross profit and gross margins were $52.9 million and $11.6 million and 34.7% and 34% for the fiscal year and fourth quarter ended September 30, 2023, respectively. Our consolidated non-GAAP adjusted EBITDA for fiscal 2023 was $7 million, down $5.5 million or 44% compared to fiscal 2022. Non-GAAP adjusted EBITDA for the fiscal 2023 fourth quarter was $1.2 million, up $0.2 million or 23% compared to the fiscal 2022 fourth quarter. We were able to achieve consolidated net income of $9.4 million or $0.08 per diluted share for the 2023 fiscal year. Consolidated net income for the fiscal 2023 fourth quarter was $0.2 million and slightly above breakeven per diluted share. As Kim will explain further, the prior fiscal year’s results were well above normal led by record high demand for direct hire placement services fueled by a post COVID-19 bounce upward in hiring.
The pull back in demand for direct hire placement services and in certain administrative, clerical and light industrial contract services in 2023 contributed to the shortfall in 2023 results compared with last year's numbers. Fiscal 2023's performance still compares favorably with our industry peers taking into account the operating environment and particularly, in terms of the growth we achieved in our combined professional IT contract services businesses and brands. Before I turn it over to Kim, I would like to share some important achievements and milestones during the quarter. First, the September 2023 quarter was our ninth consecutive quarter of profitability and free cash flow generation since we completed our deleveraging initiatives in June of 2021.
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