OAKBROOK TERRACE, Ill., Jan. 23 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported a net loss of $644,000, or
$ .13 per share, for the quarter ended December 31, 2002, compared with a net
loss of $550,000, or $ .11 per share, for the same quarter last year.
The pretax loss for the current quarter was $644,000, which was the same
as the net loss, compared with a pretax loss of $880,000 last year. There was
no income tax benefit for the current year's loss, while there was an income
tax credit of $330,000 last year.
The Company's consolidated net revenues for the quarter were $4,900,000,
down 11% from $5,509,000 last year. Placement service revenues of $1,620,000
were down 14% from last year, while contract services revenues of $3,280,000
declined 10%.
Commenting on the Company's first quarter performance, Herbert F. Imhoff,
Jr., board chairman and CEO, said, "The number of placements made during the
quarter was better than we previously expected - up 8% over last year's first
quarter. This is an encouraging trend. However, lower average fees resulted
in lower placement revenues and lower contract revenues for the quarter. The
lower average fees are attributable to the weak demand for our services."
Mr. Imhoff continued, "Despite the weak labor market and lower revenues, I
am pleased with the Company's performance on controlling costs, as actions
taken over the past year are now showing up in our reduced cost structure.
For the quarter, general and administrative expenses were down 19%, and total
operating expenses were down 14%. These reductions reflect the benefit of
closing four unprofitable branch offices during the last twelve months and
other staff reductions. As a result, the Company reduced its first-quarter
pretax loss by $236,000, or 27%, compared with last year."
Mr. Imhoff concluded his comments by saying, "I am committed to returning
the Company to profitability. To do so will require an improvement in the
demand for the Company's services leading to growth in revenues. However, the
continuing uncertainty surrounding U.S. economic conditions makes it difficult
to predict when that growth might begin. Although the improvement in the
number of our placements in the first quarter is encouraging, I am cautious
about when we might begin to realize sustained growth in the demand for our
services."
This news release contains forward-looking statements that are based on
management's current expectations and are subject to risks and uncertainties.
Some of the factors that could affect the Company's future performance
include, but are not limited to, general business conditions, the demand for
the Company's services, competitive market pressures, the ability of the
Company to attract and retain qualified personnel for regular full-time
placement and contract project assignments, and the ability to attract and
retain qualified corporate and branch management.
General Employment provides information technology and technical staffing
services, operating 31 branch offices in major metropolitan and suburban
business centers in 12 states. The Company's shares are traded on the American
Stock Exchange under the trading symbol JOB.
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months
Ended December 31
2002 2001
Net revenues:
Placement services $1,620 $1,882
Contract services 3,280 3,627
Net revenues 4,900 5,509
Operating expenses:
Cost of contract services 2,217 2,398
Selling 1,124 1,304
General and administrative 2,221 2,735
Total operating expenses 5,562 6,437
Loss from operations (662) (928)
Interest income 18 48
Loss before income taxes (644) (880)
Credit for income taxes (a) -- (330)
Net loss $(644) $(550)
Net loss per share $(.13) $(.11)
Average number of shares 5,121 5,104
(a) There was no credit for income taxes as a result of the pretax loss
for the period ended December 31, 2002, because the tax loss must be
carried forward and there is not sufficient assurance that a future
tax benefit will be realized.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31 September 30
2002 2002
Assets:
Cash and cash equivalents $4,078 $4,759
Accounts receivable and
other current assets 4,117 4,223
Total current assets 8,195 8,982
Property, equipment and goodwill 2,816 2,951
Total assets $11,011 $11,933
Liabilities and shareholders' equity:
Current liabilities $1,657 $1,944
Shareholders' equity 9,354 9,989
Total liabilities and shareholders'
equity $11,011 $11,933
SOURCE General Employment Enterprises, Inc.
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Related links:
http://www.generalemployment.com/
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/113698.html
CONTACT:
Doris A. Bernar, Communications Manager &
Assistant Corporate Secretary of General Employment Enterprises,
Inc., +1-630-954-0495, fax, +1-630-954-0592, invest@genp.com
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