General Employment revenue up 82% YoY in Q1 2016
Illinois-based General Employment Enterprises, Inc. has announced its results for the first quarter ended 31st December 2015.
Revenue for the fiscal 2016 first quarter was $17.6m, up 82% over the first quarter of fiscal 2015. Contract staffing services contributed $16m or 91% of revenue and direct placement services contributed $1.6 million or 9% of revenue. This compares to contract staffing services of $8.2m or 85% of revenue and direct placement services of $1.5m or 15% of revenue respectively for the same quarter of fiscal 2015.
Revenue from the combined professional contract and professional direct placement services revenue, which is comprised of staffing and solutions in the information technology, engineering, healthcare and finance & accounting specialties, was $11.6m and represents 66% of total revenue for the 2016 first quarter compared to $3.1m or 33% of total revenue for first quarter of 2015. The revenue mix shift is due to the execution of the company's strategic plan to focus on the higher margin professional staffing and solutions services sectors through organic growth and acquisitions.
Gross margin for the first quarter ended 31st December 2015 (including direct placement services) was 30% compared to approximately 28.3% (as adjusted for an Ohio worker’s compensation rebate; gross margin 31.1% with rebate) for the first quarter ended 31st December 2014. Professional contract staffing services gross margin (excluding direct placement services) for the 2016 first quarter was 29.6% compared to 33.7% for the 2015 first quarter.
Industrial contract services gross margin for the 2016 first quarter was 11.7% compared to approximately 11% (as adjusted for an Ohio worker’s compensation rebate; 15.2% gross margin with rebate) for the 2015 first quarter.
Derek E. Dewan, chairman and chief executive officer of General Employment, commented, " We are most pleased with achieving adjusted EBITDA of approximately $942,000 for the first quarter of 2016, an 82% increase in revenue compared to the prior year first quarter and increasing our professional staffing services and solutions revenue to 66% of total revenue for the quarter. Also, with the recent addition of Dallas based Paladin Consulting we continued to build out our geographic footprint, expand our national delivery network and broaden our service offerings in the information technology, engineering and finance and accounting specialty staffing sectors as well as enhance General Employment's capabilities in providing services to companies utilizing managed service providers (MSP) and vendor management systems (VMS).
"We still see strong demand for our professional specialty staffing services and solutions propelled by a very low U.S. unemployment rate for highly skilled labor, a healthy domestic job market for many professional occupations and secular drivers fueling the increased use of flexible on demand staffing."