OAKBROOK TERRACE, Ill., Jan 29 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported consolidated net revenues
for the quarter ended December 31, 2007 of $3,964,000, compared with
revenues of $4,844,000 reported for the same period last year.
Placement services revenues for the quarter were $2,162,000, down 18%
from the same period last year. Contract service revenues of $1,802,000,
decreased 18% from $2,200,000 last year.
As a result of the lower revenues, the Company had a net loss of
$227,000, or $.04 per share, in the first fiscal quarter of this year,
compared with net income of $296,000, or $.06 per share, last year.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "The declining first quarter revenues and the
resulting net loss were disappointments for the Company and reflect a
general slowing of the economy."
Mr. Imhoff continued, "National statistics indicate that job creation
was down, unemployment was up and credit was tightening. I believe many of
our prospects and clients decided to delay hiring decisions, evaluating the
economy and its potential impact on their own companies before moving
forward. We also found it difficult to recruit enough well-qualified
candidates, in large part because of the uncertain economy."
Business Information
General Employment provides professional staffing services through a
network of 20 branch offices located in 9 states, and specializes in
information technology, accounting and engineering placements.
The Company's business is highly dependent on national employment
trends in general and on the demand for professional staff in particular.
Because long-term contracts are not a significant part of the Company's
business, future results cannot be reliably predicted by considering past
trends or by extrapolating past results. 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, the possibility of incurring liability for the Company's
business activities, including the activities of contract employees and
events affecting its contract employees on client premises, and the ability
of the Company to attract and retain qualified corporate and branch
management.
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months
Ended December 31
2007 2006
Net revenues:
Contract services $1,802 $2,200
Placement services 2,162 2,644
Net revenues 3,964 4,844
Operating expenses:
Cost of contract services 1,235 1,476
Selling 1,375 1,604
General and administrative 1,631 1,551
Total operating expenses 4,241 4,631
Income (loss) from operations (277) 213
Investment income 50 83
Net income (loss)(1) $ (227) $ 296
Average number of shares:
Basic 5,159 5,148
Diluted 5,159 5,334
Net income (loss) per share -
basic and diluted $ (.04) $ .06
(1) There was no credit for income taxes as a result of the pretax losses
in the 2007 period, because there was not sufficient assurance that a
future tax benefit would be realized. There was no provision for
income taxes in the 2006 period because of the availability of
operating losses carried forward from prior years.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31 September 30
2007 2007
Assets:
Cash and cash equivalents $5,759 $6,344
Other current assets 1,782 2,167
Total current assets 7,541 8,511
Property and equipment, net 914 929
Other assets 446 436
Total assets $8,901 $9,876
Liabilities and shareholders' equity:
Current liabilities $1,849 $2,116
Other liabilities 446 436
Shareholders' equity (2) 6,606 7,324
Total liabilities and shareholders' equity $8,901 $9,876
(2) During the quarter ended December 31, 2007, the board of directors
declared a cash dividend of $.10 per common share, resulting in a
$517,000 charge to retained earnings during the period.
SOURCE General Employment Enterprises, Inc.
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Related links:
http://www.generalemployment.com
http://www.prnewswire.com/comp/113698.html /
CONTACT:
Doris A. Bernar, Communications Manager &
Assistant Secretary of General Employment Enterprises, Inc.,
+1-630-954-0495, fax, +1-630-954-0592, invest@genp.com
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