The GEE group announces the total forgiveness of PPP loans of $ 19.9 million debt-free on the 2021 end-of-year pro forma balance sheet
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JACKSONVILLE, FL / ACCESSWIRE / December 20, 2021 / GEE Group Inc. (NYSE American: JOB), (“The Company” or “GEE Group”), a provider of professional staffing services and human resources solutions, today announced that it has now received a full discount on all of its approximately $ 19.9 million in Small Business Administration (“SBA”) Payroll Protection Program (“PPP”) loans, which, along with its affiliates, were requested and received through BBVA USA (now PNC Bank, National Association) (“PNC”) during fiscal year 2020 in accordance with the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The rebate included all interest accrued on PPP loans.
The Company and its subsidiaries previously received from the SBA a PPP loan forgiveness of approximately $ 3.4 million in total principal and approximately $ 34,000 in accumulated interest during fiscal 2021, which were recorded and / or disclosed in the quarterly reports of the GEE group on form 10Q filed with the second. On December 14, 2021, the Company and its subsidiaries received notification from PNC that the SBA has granted forgiveness of all remaining PPP loans for a total principal amount of approximately $ 16.5 million plus accrued accrued interest. ‘approximately $ 268,000. After giving effect to the aforementioned PPP loan cancellation, the Company’s pro forma balance sheet as at September 30, 2021 would have reflected zero debt. The financial impact of the last PPP loan forgiveness will be reflected in GEE Group’s results for the first quarter ending December 31, 2021.
Derek E. Dewan, Chairman and CEO of GEE Group, said, “We are very pleased to receive notices of full principal and accrued interest cancellation for all of the Company’s outstanding PPP loans. PPP loans were essential to support our business. operations during the pandemic and ensure continued employment for our employees as well as employment opportunities for new recruits. We remain grateful for the foresight of the US government in creating the Paycheck Protection Plan program. “
Dewan added, “Later this week, we plan to release exceptional financial results for the fourth quarter and fiscal year ended September 30, 2021. We are very strong financially with approximately $ 10 million in cash, no outstanding debt. and about $ 15 million in uptime. under our ABL bank credit facility. The GEE group is well positioned to invest in future growth initiatives. The hiring environment and demand for the Company’s services remains strong in the current quarter and we expect to continue to deliver exceptional financial results and create additional value for our shareholders. “
Safe Harbor Forward-Looking Statements
In addition to historical information, this press release contains statements relating to possible future events and / or future results (including results of business operations, certain projections, future financial position, pro forma financial information and trends. and business outlook) which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended (the “Exchange Act “), and the Private Securities Litigation Reform Act of 1995 and are subject to the” safe harbor “created by these sections. Statements made in this press release that are not strictly historical facts are forward-looking statements that are predictive in nature and depend on or refer to future events. These forward-looking statements often contain or are preceded by words such as “will”, “may”, “plans”, “expects”, “anticipates”, “projects”, “predicts”, “pro forma”, “estimates”. “,” Aims “,” believes “,” hopes “,” potential “,” intends “,” suggests “,” appears “,” seeks “or variations of these words or similar words and expressions. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known risks and uncertainties, many of which are beyond the control of the Company and cannot be predicted or quantified. Therefore, due to these and other factors, the actual results of the Company may differ materially from those expressed or implied by these forward-looking statements.
The international pandemic, the “Novel Coronavirus” (“COVID” -19), has been damaging and continues to negatively impact and disrupt the Company’s business operations. The health epidemic has had a significant negative effect on the global economy and employment in general, including the lack of demand for the Company’s services which is exacerbated by “quarantines”, “remote work” , Government-led and customer-led ‘shutdowns’. and “social distancing”. While the incidences of COVID-19 have generally declined since its initial outbreak, there continue to be signs of the virus, including the emergence of variants of the original strain. Therefore, there can be no assurance that conditions will continue to improve and could worsen and have an additional negative impact on the GEE Group. Certain other factors which could cause the Company’s actual results to differ materially from those of forward-looking statements include, but are not limited to: (i) the loss, default or bankruptcy of one or more customers; (ii) changes in general economic conditions, regional, national or international; (iii) an act of war or terrorism, industrial accidents or a breach of computer security which disrupts business; (iv) changes in the law and regulations; (v) the effect of debts and other claims made against the Company, including non-repayment of debt or failure to meet lender’s commitments, including lack of liquidity to support business operations and inability to refinance debt, failure to obtain necessary financing or inability to access capital markets and / or obtain other sources of capital; (vi) changes in the size and nature of the Company’s competition; (vii) the loss of one or more key executives; (viii) increased credit risk on the part of customers; (ix) failure of the Company to grow internally or through acquisitions or failure to successfully integrate acquisitions; (x) the inability of the Company to improve its operating margins and to achieve cost savings and economies of scale; (xi) the Company’s inability to attract, hire and retain quality recruiters, account managers and salespeople; (xii) the Company’s inability to recruit qualified candidates to supply its clients as temporary contract or full-time workers; (xiii) the negative impact of geopolitical events, government mandates, natural disasters or health crises, force majeure events, global pandemics (such as “COVID-19” mentioned above) or other rapidly spreading viral or non-viral diseases; and other factors set out under “Forward-Looking Statements” in the Company’s annual reports on Form 10-K, its quarterly reports on Form 10-Q and in other documents filed by the Company with the Securities and Exchange Commission (SEC).
More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements are set out in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company has no obligation (and expressly disclaims any obligation to) and does not intend to publicly update, revise or modify its forward-looking statements, whether as a result of new information, future events or otherwise.
THE SOURCE: GEE Group inc.
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