OAKBROOK TERRACE, Ill., April 28 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported a net loss of $445,000, or
$.09 per share, for the quarter ended March 31, 2004, compared with a net loss
of $1,100,000, or $.21 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,547,000,
compared with $4,530,000 for the same quarter last year. Contract service
revenues of $3,193,000 were down 6%, while placement service revenues of
$1,354,000 increased 19%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO, said, "The aggressive actions taken by management over the
past twelve months to cut costs are now showing up on the bottom line. As a
result, we made significant progress in reducing the Company's quarterly
losses. General and administrative expenses were down 25% from the same
quarter last year, and the net loss was cut by almost 60%."
Mr. Imhoff continued, "The modest improvement in quarterly revenues is
also noteworthy, because it reflects the first year-over-year increase in over
three years. The 19% increase in placement service revenues was achieved
through a combination of a 10% increase in the number of placements and a 4%
increase in the average placement fee. The decline in contract service
revenues resulted from continued downward pressures on pricing in that
division, despite a 9% increase in billable hours."
For the six months ended March 31, 2004, the Company had a net loss of
$907,000, or $.18 per share, compared with a net loss of $1,744,000, or $.34
per share, for the same period last year. Consolidated net revenues for the
six-month period were $9,110,000, down 3% compared with $9,430,000 last year.
Mr. Imhoff concluded his comments by saying, "I am encouraged by the fact
that we achieved growth in both the number of placements and the number of
billable contract hours during the second quarter. In addition, I am very
pleased that we were able to achieve a 48% reduction in the net loss for the
six month period, despite the 3% decline in revenues. The improvement
reflects the success of our cost-cutting program. At this point, the key to
returning the Company to profitability lies in increasing overall revenues.
To do that, we need to see a sustained pattern of hiring activity in the U.S.
jobs market."
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 Six Months
Ended March 31 Ended March 31
2004 2003 2004 2003
Net revenues:
Contract services $3,193 $3,394 $6,585 $6,674
Placement services 1,354 1,136 2,525 2,756
Net revenues 4,547 4,530 9,110 9,430
Operating expenses:
Cost of contract services 2,367 2,394 4,737 4,611
Selling 878 894 1,681 2,018
General and administrative 1,753 2,348 3,622 4,569
Total operating expenses 4,998 5,636 10,040 11,198
Loss from operations (451) (1,106) (930) (1,768)
Investment income 6 6 23 24
Net loss(1) $(445) $(1,100) $(907) $(1,744)
Net loss per share -
basic and diluted $(.09) $(.21) $(.18) $(.34)
Average number of shares -
basic and diluted 5,132 5,121 5,127 5,121
(1) There were no credits for income taxes as a result of the pretax
losses in fiscal 2004 and fiscal 2003, 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)
March 31 September 30
2004 2003
Assets:
Cash and cash equivalents $3,360 $3,905
Accounts receivable and other current assets 2,430 2,595
Total current assets 5,790 6,500
Property, equipment and goodwill 1,889 2,191
Total assets $7,679 $8,691
Liabilities and shareholders' equity:
Current liabilities $2,032 $2,167
Shareholders' equity 5,647 6,524
Total liabilities and shareholders' equity $7,679 $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, or fax, +1-630-954-0592, invest@genp.com
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