OAKBROOK TERRACE, Ill., Jan. 27 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported a net loss of $462,000, or
$.09 per share, for the quarter ended December 31, 2003, compared with a net
loss of $644,000 or $ .13 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,563,000,
down 7% from $4,900,000 last year. Contract service revenues of $3,392,000
increased 3%, while placement service revenues of $1,171,000 declined 28%.
Commenting on the Company's first quarter performance, Herbert F. Imhoff,
Jr., board chairman and CEO, said, "We saw some improvement in the demand for
contract services during the quarter. As a result, the Company had an 18%
increase in the number of billable hours. Weakness in the demand for
placement services continued, however, and the number of placements was down
20%. In addition, we continued to experience downward pressures on pricing,
resulting in lower average fees in both of the divisions."
Mr. Imhoff continued, "Through aggressive cost-cutting programs, we were
able to reduce general and administrative expenses by 16% versus last year's
first quarter. As a result, we were able to reduce the size of our net loss
by 28%, despite the lower consolidated revenues. Our financial condition
remained strong, with $3,301,000 of cash and cash equivalents and a current
ratio of 3.2 to 1 as of December 31, 2003."
Mr. Imhoff concluded his comments by saying, "As I have said before, the
key to returning the Company to profitability lies in increasing its overall
revenues. The improvement in billable contract hours that we experienced
during the first quarter is an encouraging sign. That is because, in past
economic recoveries, employers have tended to use temporary help services
before they committed to full-time hiring. However, we have yet to see any
noticeable improvement in the demand for full-time hiring in our operations."
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 of the Company to
attract and retain qualified corporate and branch management.
General Employment provides professional staffing services through a
network of 21 branch offices located in 11 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
2003 2002
Net revenues:
Contract services $3,392 $3,280
Placement services 1,171 1,620
Net revenues 4,563 4,900
Operating expenses:
Cost of contract services 2,370 2,217
Selling 803 1,124
General and administrative(1) 1,869 2,221
Total operating expenses 5,042 5,562
Loss from operations (479) (662)
Investment income 17 18
Loss before income taxes (462) (644)
Credit for income taxes(2) -- --
Net loss $ (462) $ (644)
Net loss per share - basic and diluted $ (.09) $ (.13)
Average number of shares - basic and diluted 5,121 5,121
(1) General and administrative expenses include a provision for office
closings of $25,000 in the three month period ended December 31, 2003.
(2) There were no credits for income taxes as a result of the pretax
losses for the periods ended December 31, 2003 and 2002, because the tax
losses must be carried forward for income tax purposes and there was not
sufficient assurance that future tax benefits would be realized.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31 September 30
2003 2003
Assets:
Cash and cash equivalents $3,301 $3,905
Accounts receivable and other current assets 2,573 2,595
Total current assets 5,874 6,500
Property, equipment and goodwill, net 2,021 2,191
Total assets $7,895 $8,691
Liabilities and shareholders' equity:
Current liabilities $1,824 $2,167
Shareholders' equity 6,071 6,524
Total liabilities and shareholders' equity $7,895 $8,691
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., +1-630-954-0495, fax, +1-630-954-0592, or e-mail,
invest@genp.com
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