OAKBROOK TERRACE, Ill., April 28 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) announced its results for the quarter
ended March 31, 2005.
Second Quarter Results
The Company reported net income of $21,000 for the quarter ended
March 31, 2005, compared with a net loss of $445,000, or $.09 per share, for
the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,752,000,
up 12% from $4,231,000 for the same quarter last year. Contract service
revenues of $2,771,000 were down 4%, while placement service revenues of
$1,981,000 increased 46%.
Commenting on the Company's performance for the quarter, Herbert F.
Imhoff, Jr., board chairman and CEO said, "The demand for the Company's
placement services has strengthened considerably since the second quarter of
last year. The increase in placement service revenues was achieved through a
combination of a 32% increase in the number of placements and a 9% increase in
the average placement fee. Contract service revenues were down for the
quarter due to a 5% decrease in billable hours. The increase in consolidated
revenues enabled the Company to return to profitability for the quarter."
Mr. Imhoff added, "Continued improvement for the Company will depend on
continued improvement in the national jobs market."
Six Months Results
For the six months ended March 31, 2005, the Company had net income of
$140,000, or $.03 per share, compared with a net loss of $907,000, or $.18 per
share, for the same period last year. Consolidated net revenues for the
six-month period were $9,634,000, up 14% compared with $8,461,000 last year.
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
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 Six Months
Ended March 31 Ended March 31
2005 2004 2005 2004
Net revenues:
Contract services $ 2,771 $ 2,877 $ 5,730 $ 5,936
Placement services 1,981 1,354 3,904 2,525
Net revenues 4,752 4,231 9,634 8,461
Operating expenses:
Cost of contract services 1,977 2,120 4,060 4,261
Selling 1,257 866 2,411 1,651
General and administrative 1,510 1,638 3,056 3,392
Total operating expenses 4,744 4,624 9,527 9,304
Income (loss) from operations 8 (393) 107 (843)
Investment income 13 6 33 23
Income (loss) from continuing
operations 21 (387) 140 (820)
Loss from discontinued
operations(1) -- (58) -- (87)
Net income (loss)(2) $ 21 $ (445) $ 140 $ (907)
Average number of shares:
Basic 5,141 5,132 5,139 5,127
Diluted 5,383 5,132 5,390 5,127
Per share - basic and diluted:
Income (loss) from continuing
operations $ -- $ (.08) $ .03 $ (.16)
Loss from discontinued
operations -- (.01) -- (.02)
Net income (loss) $ -- $ (.09) $ .03 $ (.18)
(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 were no provisions for income taxes for the periods ended March
31, 2005, because of the utilization of losses carried forward from
prior years. There were no credits for income taxes as a result of
the pretax losses for the periods ended March 31, 2004, 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)
March 31 September 30
2005 2004
Assets:
Cash and cash equivalents $ 4,444 $ 4,437
Accounts receivable, net, and
other current assets 2,354 2,319
Total current assets 6,798 6,756
Property and equipment, net 399 538
Total assets $ 7,197 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 1,884 $ 2,126
Shareholders' equity 5,313 5,168
Total liabilities and shareholders' equity $ 7,197 $ 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, General Employment Enterprises,
Inc., +1-630-954-0495, +1-630-954-0592 fax, invest@genp.com
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