OAKBROOK TERRACE, Ill., Jan. 25 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) announced its results for the quarter
ended December 31, 2004.
First Quarter Results
The Company reported net income of $119,000, or $.02 per share, for the
quarter ended December 31, 2004, compared with a net loss of $462,000 or
$.09 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,882,000,
up 15% from $4,230,000 last year. Contract service revenues of $2,959,000
were down 3% from last year, while placement service revenues of $1,923,000
increased 64%.
Commenting on the Company's first quarter performance, Herbert F. Imhoff,
Jr., board chairman and CEO, said, "The demand for the Company's placement
services has improved considerably since the first quarter of last year. The
increase in placement service revenues was achieved through a combination of a
34% increase in the number of placements and a 26% increase in the average
placement fee. Contract service revenues were down for the quarter, despite a
5% increase in billable hours, because of filling lower-paid positions and
pressures on pricing in that division."
Mr. Imhoff concluded, "Due to cost-reduction actions taken by management,
general and administrative expenses were down $208,000 (12%) from the first
quarter of last year. The combination of improved revenues and reduced
expenses enabled the Company to return to profitability for the quarter."
Business Information
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 assignments, and the ability of the Company to attract
and retain qualified corporate and branch management.
General Employment provides professional staffing services through a
network of 19 branch offices located in 10 states, and specializes in
information technology, accounting and engineering placements. 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
2004 2003
Net revenues:
Contract services $2,959 $3,059
Placement services 1,923 1,171
Net revenues 4,882 4,230
Operating expenses:
Cost of contract services 2,083 2,141
Selling 1,154 785
General and administrative 1,546 1,754
Total operating expenses 4,783 4,680
Income (loss) from operations 99 (450)
Investment income 20 17
Income (loss) from continuing operations 119 (433)
Loss from discontinued operations(1) -- (29)
Net income (loss)(2) $ 119 $ (462)
Average number of shares:
Basic 5,137 5,121
Diluted 5,399 5,121
Income (loss) per share - basic and diluted:
Income (loss) from continuing operations $ .02 $ (.08)
Loss from discontinued operations -- (.01)
Net income (loss) $ .02 $ (.09)
(1) In September 2004, the Company completed a transaction to sell the
assets and business operations of its Pittsburgh, Pennsylvania
staffing business, which is reflected as discontinued operations.
(2) There was no provision for income taxes for the period ended
December 31, 2004, because of the utilization of losses carried
forward from prior years. There was no credit for income taxes as a
result of the pretax losses for the period ended December 31, 2003,
because the losses were carried forward and there was not sufficient
assurance that a future tax benefit would be realized.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31 September 30
2004 2004
Assets:
Cash and cash equivalents $4,224 $4,437
Accounts receivable, net, and
other current assets 2,329 2,319
Total current assets 6,553 6,756
Property and equipment, net 469 538
Total assets $7,022 $7,294
Liabilities and shareholders' equity:
Current liabilities $1,730 $2,126
Shareholders' equity 5,292 5,168
Total liabilities and shareholders' equity $7,022 $7,294
SOURCE General Employment Enterprises, Inc.
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Related links:
http://www.generalemployment.com
Company News On-Call:
http://www.prnewswire.com/comp/113698.html
CONTACT:
Doris A. Bernar, Communications Manager &
Assistant Corporate Secretary of General Employment Enterprises,
Inc., phone, +1-630-954-0495, or fax, +1-630-954-0592, or email,
invest@genp.com
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