GEE Group Inc. (JOB) stock prices were up 6.99% just before market trading commenced on August 16th, 2021. This brought the price per share up to USD$0.49 early on in the trading day.
Strong Q3 2021 Financials
The third quarter of fiscal 2021 saw JOB stock report USD$38.1 million in revenue. This is up 43.1% from the third quarter of the fiscal year 2021 and 9.6% from the second quarter of 2021. Income from operations came in at roughly USD$1.6 million, up USD$3.3 million from the net operating loss of almost USD$1.7 million for the prior year quarter. The Q3 2021 numbers were up USD$1 million from Q2 2021 period.
Gross Profit and Margin
Gross profit for the quarter came in at USD$13.8 million, representing a 43% year over year increase. The Q3 2021 numbers indicate growth in gross profit of 26.7% as compared to the previous quarter. Gross margins stayed relatively stable at 36.32% over the third quarters of 2020 and 2021. The Q3 2021 numbers were 490 basis points higher than the 31.4% reported in the prior quarter.
JOB Stock’s Net Loss Reports
Net loss attributable to common shareholder came in at negative USD$0.9 million for the third quarter of fiscal 2021. This represents a net loss per share of roughly USD$0.01 per diluted share. This is including the effects of net gains and losses on non recurring debt settlements, as well as interest on former high-cost debt being extinguished. The debt extinguishing amounted to roughly USD$2.5 million. Without these factors, net income available to common shareholders would come out to USD$1.6 million, or roughly USD$0.02 per diluted share.
JOB Stock’s Liquidity Position
The company reported a solid liquidity position of USD$7.4 million in cash and cash equivalents as of June 30th, 2021. As of the end of the quarter, shareholders’ equity came out to roughly USD$77.6 million. JOB stock reported full availability under its asset-backed bank revolving credit facility. The facility was valued at USD$20 million and had been closed for the quarter. No borrowings were outstanding as of June 30th, 2021, with roughly USD$13.1 million being available.
Future Outlook for JOB
JOB stock reported a strong third quarter of fiscal 2021, with the company keen to continue its trajectory of success. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value.
