OAKBROOK TERRACE, Ill., April 28 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported consolidated net revenues
for the quarter ended March 31, 2008 of $3,889,000, compared with
consolidated net revenues of $4,960,000 reported for the same period last
year.
Placement services revenues for the quarter were $1,831,000, down 36%
from the same period last year. Contract service revenues of $2,058,000
decreased 3% from last year.
As a result of the lower revenues, the Company had a net loss of
$523,000, or $.10 per share, in the second fiscal quarter of this year,
compared with net income of $90,000, or $.02 per share, in the second
quarter last year.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "During the Company's second fiscal quarter, the
U.S. economy continued its downward trend. The unemployment rate rose, news
of layoffs increased, the number of new jobs created fell, and credit
continued to tighten. The impact of the poor U.S. economy can be seen in
the Company's decreased revenues and earnings this quarter."
Six Months Results
For the six months ended March 31, 2008, the Company had a net loss of
$750,000, or $.15 per share, compared with net income of $386,000, or $.07
per share, for the same period last year. Consolidated net revenues for the
six- month period were $7,853,000, down 20% compared with $9,804,000 last
year.
Business Information
General Employment provides professional staffing services through a
network of 19 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 Six Months
Ended March 31 Ended March 31
2008 2007 2008 2007
Net revenues:
Contract services $2,058 $2,113 $3,860 $4,313
Placement services 1,831 2,847 3,993 5,491
Net revenues 3,889 4,960 7,853 9,804
Operating expenses:
Cost of contract
services 1,374 1,442 2,609 2,918
Selling 1,278 1,848 2,653 3,452
General and
administrative 1,760 1,639 3,391 3,190
Total operating expenses 4,412 4,929 8,653 9,560
Income (loss) from
operations (523) 31 (800) 244
Investment income -- 59 50 142
Net income (loss)(1) $(523) $90 $(750) $386
Average number of shares:
Basic 5,165 5,148 5,162 5,148
Diluted 5,165 5,381 5,162 5,358
Net income (loss) per
share - basic and
diluted $(.10) $.02 $(.15) $.07
(1) There were no credits for income taxes as a result of the pretax
losses in the 2008 periods, because there was not sufficient
assurance that future tax benefits would be realized. There were no
provisions for income taxes in the 2007 periods, because of the
availability of losses carried forward from prior years.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
March 31 September 30
2008 2007
Assets:
Cash and cash equivalents $4,755 $6,344
Other current assets 1,949 2,167
Total current assets 6,704 8,511
Property and equipment, net 871 929
Other assets 428 436
Total assets $8,002 $9,876
Liabilities and shareholders' equity:
Current liabilities $1,476 $2,116
Other liabilities 427 436
Shareholders' equity(2) 6,099 7,324
Total liabilities and shareholders' equity $8,002 $9,876
(2) During the six months ended March 31, 2008, the board of directors
declared a cash dividend of $.10 per common share, resulting in a
$517,000 charge to retained earnings.
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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