GEE Group Inc. - JOB STOCK NEWS

GEE Group reported robust financial results for Q3 fiscal 2021, with revenues of approximately $38.1 million, reflecting a 43.1% year-over-year increase. Gross profit rose 43.0% to roughly $13.8 million, while adjusted EBITDA surged 129% to approximately $3.1 million. Operating income improved to $1.6 million from a net loss of $1.7 million in Q3 2020. However, the company reported a net loss of $0.9 million. Cash and cash equivalents stood at $7.4 million, with $77.6 million in shareholders' equity.

GEE Group Inc. (NYSE: JOB) will report its fiscal third quarter results for the period ending June 30, 2021, on August 16, 2021. Following the earnings release, a conference call is scheduled for August 17, 2021, at 10:00 AM ET. Participants can join via specific dial-in numbers and passcodes provided in the press release. A replay of the call will also be available from August 17 to August 20, 2021. Details regarding this call, including access numbers for international participants, will be accessible on the Company's website.

CIT Group Inc. (NYSE: CIT) announced it acted as the agent and sole lender for a $20 million loan and revolving credit facility for GEE Group Inc. (NYSE American: JOB). The funding will be used to pay off existing debts and support working capital. GEE Group, based in Jacksonville, Florida, provides staffing and HR solutions across various sectors. The financing aids GEE Group's growth strategy while ensuring their financial stability, according to CEO Derek Dewan. CIT's Asset-Based Lending division focuses on meeting client needs with innovative financing structures.

GEE Group reported a revenue of $34.7 million for Q2 2021, a slight increase from the previous year. Operating income rose to $637,000 compared to a loss of $(2.4) million in Q2 2020. Adjusted EBITDA improved significantly to $2 million, up from $783,000 YoY. The company benefited from a $279,000 gain from the forgiveness of a PPP loan and closed a new $20 million ABL credit facility. Total cash at quarter-end stood at $14.3 million.

GEE Group Inc. (JOB) announced the full exercise of a 15% over-allotment option, selling an additional 12,499,999 shares at $0.60 each, generating approximately $7.5 million. This follows a prior public offering of 83,333,333 shares that raised about $50 million. Proceeds will be used to pay off $56 million in debt and cover $5 million in fees owed to lenders, with remaining funds allocated for general corporate purposes and potential acquisitions. The company is involved in providing staffing solutions across several sectors, including healthcare and technology.

GEE Group Inc. (JOB) has successfully repaid approximately $56 million in outstanding debt using proceeds from a public offering and available cash. This repayment decreases their debt load by about $103 million, leading to an estimated annual interest savings of $12 million.

CEO Derek Dewan noted that this milestone strengthens the company's financial position, enabling planned growth through acquisitions and organic strategies. GEE also anticipates closing a $20 million revolving credit facility at a significantly reduced interest rate, further enhancing financial stability.

GEE Group Inc. (AMEX:JOB) announced the closing of its public offering of 83,333,333 shares at $0.60 each, netting approximately $50 million. This offering includes a 45-day option for underwriters to purchase an additional 12,499,999 shares. Funds will address $55 million in outstanding debts and support general corporate purposes, including working capital and acquisitions. ThinkEquity managed the offering. The company, which provides staffing services in IT, engineering, finance, and healthcare, faces potential headwinds due to the ongoing impact of COVID-19 on business operations.

GEE Group Inc. (NYSE American: JOB) announced a public offering of 83,333,333 shares at $0.60 each, aiming to raise about $50 million. The proceeds will be used primarily to repay $55 million in outstanding debt and for general corporate purposes, including working capital and potential acquisitions. The offering will close on April 19, 2021, pending customary conditions. ThinkEquity is the sole book-running manager for this offering.

GEE Group (NYSE: JOB) has secured a commitment for a $20 million asset-based revolving credit facility from CIT, designed to enhance its liquidity and reduce interest expenses. This facility, collateralized by company assets, will replace the existing asset-based lending facility, potentially lowering the interest rate from approximately 11% to a range of 4% to 5.25%. Anticipated closure of the facility is expected by June 30, 2021, contingent on standard due diligence and compliance. The CEO expressed confidence in the facility's ability to support the company's financial needs.