General Employment performance drops
General Employment's adjusted earnings before interest, taxes, depreciation, amortisation, noncash stock and stock option expense and acquisition, integration and restructuring expenses (adjusted EBITDA, a non-GAAP financial measure) was $2,000 for the fiscal year ended 30th September 2015 compared to $202,000 for the fiscal year ended 30th September 2014.
General Employment recorded a GAAP loss from operations of approximately $1.6m for the fiscal year ended 30th September 2015, compared to a GAAP loss from operations of approximately $641,000 for the fiscal year ended 30th September 2014.
After eliminating the noncash stock and stock option expenses and the acquisition, integration and restructuring expenses included in the GAAP net loss from operations, non-GAAP adjusted loss from operations was $731,000 for the fiscal year ended in 2015 and $493,000 for the fiscal year ended in 2014. GAAP net loss from continuing operations for the fiscal year ended in 2015 including the impact of a net $2.5m charge for derivative accounting in connection with a convertible subordinated debenture (converted to equity in the 2015 fiscal year second quarter) was approximately $4.7m compared to a GAAP net loss from continuing operations for the fiscal year ended in 2014 of approximately $1.1m.
After eliminating the net charge for derivative accounting, the noncash stock and stock option expenses and the acquisition, integration and restructuring expenses included in the GAAP net loss from continuing operations, the Company had an adjusted non-GAAP net loss from continuing operations of approximately $1,275 for the fiscal year ended 30th September 2015 compared to an adjusted non-GAAP loss from continuing operations of approximately $1,024 for the fiscal year ended 30th September 2014.
Derek E. Dewan, chairman and chief executive officer of General Employment, commented, "Fiscal 2015 was a successful year for the company as we raised approximately $2,000,000 from a convertible preferred stock offering, approximately $8m in equity capital from a secondary stock offering as part of General Employment's $75m shelf registration, approximately $4.2 (sic) in subordinated debt and completed the strategic acquisitions of Scribe Solutions, Agile Resources and Access Data Consulting. Including the estimates of the projected future revenue and projected adjusted EBITDA from the acquired companies, we anticipate consolidated Company pro forma revenue to be approximately $74.4m with approximately $4.8m in adjusted pro forma EBITDA for fiscal 2016. Our pro forma revenue mix as we enter 2016 is expected to be approximately 66% professional staffing and solutions and 34% light industrial staffing. We made excellent progress implementing operational changes this year and believe we are now well positioned to capitalise on these improvements to drive significant profitability going forward."
Dewan added, "We further strengthened our balance sheet and working capital position during the fiscal year and we believe General Employment is positioned favourably for success as we enter the New Year. Increasing our breadth and depth of service offerings and the continued expansion of our geographic footprint into new markets are the primary areas of focus to fuel our growth. Additionally, we will augment internal growth by making select strategic acquisitions."