As Jacksonville-based staffing company GEE Group Inc. held its quarterly conference call Aug. 15, a question prompted CEO Derek Dewan to recall his tenure with another Jacksonville-based staffing company, MPS Group Inc.
Dewan built MPS into a major company that was sold to Adecco Group for $1.3 billion in 2010.
In response to a question about possible offers for GEE Group, which Dewan has run since 2015, he said there is nothing going on but his experience with MPS tells him something could happen down the road.
“I ran a company (MPS) for 17 years and had several offers,” he said.
“And at one point, the offer was too good to be true. And it materialized and it was in the best interest of shareholders, and then we executed that offer and it proved to be the absolute right decision for both the acquirer, the shareholders and for all the employees that continued on with the acquirers,” he said.
MPS was perhaps best known for its Modis subsidiary, which before the Adecco buyout had its name atop the 37-story tower in Downtown Jacksonville that is now the Wells Fargo Center.
MPS agreed to the offer from Zurich, Switzerland-based Adecco in October 2009.
GEE Group has been headquartered in Jacksonville since 2018.
The company reported revenue fell 7% in its third quarter ended June 30 to $38.2 million but earnings tripled to $7.9 million, or 7 cents a share, helped by a tax benefit.
Dewan said it was the eighth straight quarterly profit for GEE Group since a restructuring and debt reduction.
“We feel great about our position in the industry,” he said.
While he said there have been no offers for GEE Group, “as a fiduciary for shareholders, being the chief executive, you have to always look at what’s in the best interest of shareholders.”
GEE Group also announced a cooperation agreement with investment firm Red Oak Partners LLC to add two directors to the company’s board, including Red Oak Managing Member David Sandberg.
Red Oak said in a Securities and Exchange Commission filing in May that it intended to nominate two directors for election at GEE Group’s annual meeting.
“Mr. Sandberg is very experienced and will add value to the organization and being our largest shareholder, it’s great representation for the shareholder base,” Dewan said.
“The Board’s addition of two independent directors, including a representative of its largest shareholder, and its commitment to maintaining strong corporate governance are pivotal steps forward in maximizing value for all shareholders,” Sandberg said in a news release.
Duos Technologies Group Inc. reported lower second-quarter revenue but the company is maintaining its forecast for the full year.
The Jacksonville-based railroad technology company said revenue dropped 51% to $1.77 million, and the company recorded a net loss of $2.99 million, or 42 cents a share.
In an Aug. 14 conference call, CEO Chuck Ferry said Duos remains in a good position with “a clear pathway in the next 12 to 24 months to achieve our strategy and achieve financial profitability.”
One reason for his optimism is U.S. Congress’ consideration of the Rail Safeway Act, which would increase demand for the company’s technology.
“Since the derailment in East Palestine, Ohio, six months ago, our commercial inquiries have skyrocketed. My sense is that regardless of whether this bill passes or not, Duos will benefit from the renewed focus on safety across the industry,” Ferry said, according to a company transcript of the conference call.
He also cited increased interest in the use of artificial intelligence.
“The rail industry is certainly implementing AI, throughout its operations. In this regard, Duos has made significant advances in the development of our AI,” Ferry said.
Duos continues to forecast 2023 revenue of $20 million to $21 million, up from $15 million in 2022.
Chief Financial Officer Andrew Murphy said in the conference call he sees revenue “ramping up significantly in the fourth quarter and into 2024.”
Yellow Corp., which went out of business July 30, said in a Worker Adjustment and Retraining Notification with the state that the shutdown affected 45 jobs in Jacksonville.
The Nashville-based trucking company’s filing said about 22,000 jobs nationally were terminated because of the shutdown.
Yellow reported revenue of $2.3 billion and a net loss of $69.5 million in the first half of 2023 before shutting down.
It filed for Chapter 11 bankruptcy on Aug. 6.
The parent company of handbag and accessories company Coach is expanding with the acquisition of another luxury fashion group.
Tapestry Inc. announced an $8.5 billion agreement to buy Capri Holdings Ltd., which sells goods under the Versace, Jimmy Choo and Michael Kors brands.
New York-based Tapestry’s largest distribution center is a 1.05 million-square-foot facility at the Jacksonville International Tradeport near Jacksonville International Airport.
The Jacksonville facility has remained dedicated to distributing Coach products in North America, even after Tapestry added the Stuart Weitzman brand in 2015 and Kate Spade in 2018.
Tapestry is not saying yet if the Capri acquisition will affect the Jacksonville facility.
The distribution center has 430 Tapestry employees plus 200 temporary employees, which can triple during the peak holiday season, the company said.
On Aug. 17, Tapestry reported sales for the fiscal year ended July 1 rose 3%, adjusted for foreign exchange rates, to $6.66 billion. Earnings for the year were $3.88 a share, compared with adjusted earnings of $3.47 in fiscal 2022.
Tapestry said in an Aug. 10 news release the addition of Capri will bring annual sales to more than $12 billion.
ParkerVision Inc. recorded its second straight quarterly profit despite not having any revenue in the second quarter.
The Jacksonville-based company had net income of $1.4 million, because of a gain related to the estimated fair value of contingent payment obligations.
ParkerVision has no products on the market and is focused on a series of patent infringement lawsuits alleging several large telecommunications product manufacturers are illegally using its wireless technology.
The company received a $25 million settlement agreement in the first quarter, resulting in a net profit of $13.1 million for that quarter.
CEO Jeff Parker said in an Aug. 14 news release the company has a dozen cases against eight companies pending in U.S. Federal Courts.
LFTD Partners Inc. reported second-quarter revenue fell 25% to $12.5 million and earnings dropped 48% to $1.7 million, or 10 cents a share.
Jacksonville-based LFTD’s main business is Kenosha, Wisconsin-based Lifted Made, which manufactures and sells hemp-derived and psychoactive products.
In its quarterly report filed with the SEC, LFTD said its revenue was affected by increased competition from products similar to those manufactured by Lifted Made.
Safe & Green Holdings Corp. said the record date for the spinoff of its Safe and Green Development Corp. subsidiary into a separate public company is set for Aug. 30.
The company was formerly known as SG Blocks and was headquartered in Jacksonville for a year, but is now based in Miami.
The company’s main business is converting cargo shipping containers into buildings, and it announced its plan to spin off its real estate development company in December 2022.
Safe & Green Holdings moved its headquarters office from Brooklyn, New York, to Jacksonville in January 2022 and announced it was moving again to Miami in January 2023.
The company reported a net loss of $5.6 million, or 37 cents a share, in the second quarter with revenue falling 33% to $5.1 million.
It attributed the revenue decline to discontinuation of demand for coronavirus testing facilities.
London-based payments platform company Paysafe Ltd., which is establishing a North American headquarters in Jacksonville, said its earnings are benefiting from internet gambling in North America.
Paysafe reported second-quarter revenue rose 6% to $402.3 million but adjusted earnings fell 7% to $34.7 million, or 56 cents a share, because of increased interest expense.
“We are pleased with our results through the first half of 2023, including 6% revenue growth and 7% Adjusted EBITDA growth, driven by strong volumes across SMB and e-commerce, particularly North America iGaming, as well as progress in classic digital wallets, where we continue to see improved user engagement,” CEO Bruce Lowthers said in an Aug. 15 news release.
Paysafe is building out its North American headquarters at Town Center Two, the St. Johns Town Center-area office building owned by Dun & Bradstreet Inc.
LongVue Capital announced Aug. 18 an investment partnership with TTi Logistics to recapitalize the business and provide growth capital.
TTi is headquartered in Jacksonville Beach and is a third-party logistics company which serves customers nationally from two Northeast U.S. facilities, New Orleans-based LongVue said in an Aug. 18 news release.
Terms of the deal were not announced.
Another logistics firm part-owned by a Jacksonville Beach private equity firm agreed to a buyout deal.
Tennessee-based Forward Air Corp. announced Aug. 10 it agreed to buy Dallas-based Omni Logistics LLC for $150 million in cash and and stock.
Omni Logistics is majority owned by Jacksonville Beach-based EVE Partners LLC and Ridgemont Equity Partners, Forward Air said.
EVE Partners invests in founder-run businesses seeking to grow through acquisitions, and the firm has completed more than 150 transactions since its inception 21 years ago, Forward Air said in a news release.