OAKBROOK TERRACE, Ill., July 24 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported a net loss of $852,000, or
$.17 per share, for the quarter ended June 30, 2003, compared with a net loss
of $784,000, or $.15 per share, for the same quarter last year.
The pretax loss for the current quarter was $852,000, which was the same
as the net loss, compared with a pretax loss of $1,259,000 for the same
quarter last year. There was no income tax benefit for the current quarter,
while there was a tax credit of $475,000 for last year's quarter.
The Company's consolidated net revenues for the quarter were $4,597,000,
down 3% from $4,734,000 for the same quarter last year. Placement service
revenues of $1,357,000 were about even with last year, while contract service
revenues of $3,240,000 declined 4%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO, said, "We continued to see a pattern of weakness in the
United States labor market during the June 2003 quarter, and that weakness
continued to suppress the demand for our staffing services. I am pleased that
our volumes for the quarter improved from last year, as the number of
permanent placements was up 8% and the number of billable contract hours was
up 5%. Due to the weakness in demand, however, our business was subjected to
pricing pressures that pushed average fees lower and resulted in lower overall
revenues."
Mr. Imhoff continued, "Despite the weak labor market and lower revenues, I
am pleased with the Company's performance on controlling costs, as actions
taken over the past year are now evident in our reduced cost structure. For
the quarter, general and administrative expenses were down 15%, and total
operating expenses were down 9%. These reductions reflect the benefit of
closing eight unprofitable branch offices and other actions taken during the
last twelve months. As a result, the Company reduced its third-quarter pretax
loss by $407,000, or 32%, compared with last year."
For the nine months ended June 30, 2003, the Company had a net loss of
$2,596,000, or $.51 per share, compared with a net loss of $2,255,000, or
$.44 per share, for the same period last year. The pretax loss for the
current year to date was $2,596,000, compared with last year's pretax loss of
$3,630,000. Consolidated net revenues for the nine-month period were
$14,027,000, down 9% compared with $15,397,000 last year.
Mr. Imhoff concluded his comments by saying, "I am committed to returning
the Company to profitability. We made important strides in reducing our cost
structure, and we will continue to examine further cost-reduction options in
the future. Nevertheless, our return to profitability depends on an
improvement in national hiring levels for information technology and other
professionals. It is difficult to predict when such a recovery will occur."
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 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 25 branch offices located in 12 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 Nine Months
Ended June 30 Ended June 30
2003 2002 2003 2002
Net revenues:
Placement services $ 1,357 $ 1,362 $ 4,113 $ 4,841
Contract services 3,240 3,372 9,914 10,556
Net revenues 4,597 4,734 14,027 15,397
Operating expenses:
Cost of contract services 2,246 2,240 6,857 6,988
Selling 910 1,044 2,928 3,555
General and administrative(A) 2,314 2,727 6,883 8,581
Total operating expenses 5,470 6,011 16,668 19,124
Loss from operations (873) (1,277) (2,641) (3,727)
Interest income 21 18 45 97
Loss before income taxes (852) (1,259) (2,596) (3,630)
Credit for income taxes(B) -- (475) -- (1,375)
Net loss $ (852) $ (784) $(2,596) $(2,255)
Net loss per share $ (.17) $ (.15) $ (.51) $ (.44)
Average number of shares 5,121 5,121 5,121 5,114
(A) General and administrative expenses include provisions for office
closings of $178,000 in the three month period ended June 30, 2003,
$215,000 in the nine month period ended June 30, 2003, and $253,000
in the nine month period ended June 30, 2002.
(B) There were no credits for income taxes as a result of the pretax
losses for the three and nine month periods ended June 30, 2003,
because the tax losses must be carried forward and there was not
sufficient assurance that future tax benefits would be realized.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
June 30 September 30
2003 2002
Assets:
Cash and cash equivalents $ 4,314 $ 4,759
Income tax refunds receivable 144 1,540
Accounts receivable and other current
assets 2,450 2,683
Total current assets 6,908 8,982
Property, equipment and goodwill, net 2,541 2,951
Total assets $ 9,449 $11,933
Liabilities and shareholders' equity:
Current liabilities $ 2,025 $ 1,944
Shareholders' equity 7,424 9,989
Total liabilities and shareholders'
equity $ 9,449 $11,933
SOURCE General Employment Enterprises, Inc.
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Related links:
http://www.generalemployment.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/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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