OAKBROOK TERRACE, Ill., Jan. 30 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported net income of $128,000, or
$.02, per share for the quarter ended December 31, 2005, compared with net
income of $119,000, or $.02 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,713,000,
down 3% from $4,882,000 last year. Contract service revenues of $2,638,000
were down 11% from last year, while placement service revenues of $2,075,000
increased 8%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "It was a quarter with mixed results. The increase in
placement service revenues reflects a 10% increase in the number of
placements, compared with the first quarter of last year, as we experienced a
modest improvement in demand. The decrease in contract service revenues
reflects a 25% decrease in billable hours that resulted from the completion of
a number of long-term assignments since last year. By emphasizing higher-paid
positions, however, we were able to realize a 19% increase in the average
billing rate."
Mr. Imhoff added, "The Company's business is highly influenced by national
employment trends, particularly for professional staffing. Currently, the
direction of the employment market in 2006 seems a bit uncertain.
Nevertheless, I believe that the Company is well positioned."
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 to attract and retain
qualified corporate and branch management.
General Employment provides professional staffing services through a
network of 18 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
2005 2004
Net revenues:
Contract services $2,638 $2,959
Placement services 2,075 1,923
Net revenues 4,713 4,882
Operating expenses:
Cost of contract services 1,856 2,083
Selling 1,270 1,154
General and administrative 1,502 1,546
Total operating expenses 4,628 4,783
Income from operations 85 99
Investment income 43 20
Net income (1) $128 $119
Average number of shares:
Basic 5,148 5,137
Diluted 5,369 5,399
Net income per share - basic and diluted: $.02 $.02
(1) There was no provision for income taxes in either year 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
2005 2005
Assets:
Cash and cash equivalents $4,814 $5,236
Accounts receivable, net, and
other current assets 2,284 2,496
Total current assets 7,098 7,732
Property and equipment, net 613 632
Total assets $7,711 $8,364
Liabilities and shareholders' equity:
Current liabilities $1,733 $2,514
Shareholders' equity 5,978 5,850
Total liabilities and shareholders' equity $7,711 $8,364
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, +1-630-954-0495, or fax,
+1-630-954-0592, invest@genp.com
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