OAKBROOK TERRACE, Ill., July 27 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported net income of $259,000, or
$.05 per share, for the quarter ended June 30, 2005, compared with a net loss
of $12,000, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $5,319,000,
up 12% from $4,755,000 for the same quarter last year. Contract service
revenues of $3,011,000 were up 3%, while placement service revenues of
$2,308,000 increased 27%.
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 since the third quarter of last year. The
increase in placement service revenues for the quarter was achieved through a
combination of a 16% increase in the number of placements and a 5% increase in
the average placement fee. Contract service revenues benefited from a 15%
increase in the average billing rate, but also reflected a 10% 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 demand for the Company's professional staffing
services."
Nine Months Results
For the nine months ended June 30, 2005, the Company had net income of
$399,000, or $.07 per share (diluted), compared with a net loss of $919,000,
or $.18 per share, for the same period last year. The results for 2004
reflect a loss from discontinued operations of $.02 per share. There were no
provisions or credits for income taxes reflected in the results of operations
for either year, because of the presence of losses carried forward from prior
years.
Consolidated net revenues for the nine-month period were $14,953,000, up
13% compared with $13,216,000 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, 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 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 Nine Months
Ended June 30 Ended June 30
2005 2004 2005 2004
Net revenues:
Contract services $ 3,011 $ 2,934 $ 8,741 $ 8,870
Placement services 2,308 1,821 6,212 4,346
Net revenues 5,319 4,755 14,953 13,216
Operating expenses:
Cost of contract services 2,133 2,179 6,193 6,440
Selling 1,403 1,030 3,814 2,681
General and administrative 1,548 1,576 4,604 4,968
Total operating expenses 5,084 4,785 14,611 14,089
Income (loss) from operations 235 (30) 342 (873)
Investment income 24 8 57 31
Income (loss) from
continuing operations 259 (22) 399 (842)
Income (loss) from
discontinued operations(1) -- 10 -- (77)
Net income (loss)(2) $ 259 $ (12) $ 399 $ (919)
Average number of shares:
Basic 5,143 5,136 5,140 5,130
Diluted 5,283 5,136 5,361 5,130
Per share - basic:
Income (loss) from continuing
operations $ .05 $ -- $ .08 $ (.16)
Income (loss) from discontinued
operations -- -- -- (.02)
Net income (loss) $ .05 $ -- $ .08 $ (.18)
Per share - diluted:
Income (loss) from continuing
operations $ .05 $ -- $ .07 $ (.16)
Income (loss) from discontinued
operations -- -- -- (.02)
Net income (loss) $ .05 $ -- $ .07 $ (.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 June
30, 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 June 30, 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)
June 30 September 30
2005 2004
Assets:
Cash and cash equivalents $ 4,845 $ 4,437
Accounts receivable, net, and
other current assets 2,439 2,319
Total current assets 7,284 6,756
Property and equipment, net 652 538
Total assets $ 7,936 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 2,360 $ 2,126
Shareholders' equity 5,576 5,168
Total liabilities and shareholders' equity $ 7,936 $ 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 of General Employment Enterprises,
Inc., Phone, +1-630-954-0495, fax, +1-630-954-0592, or e-mail,
invest@genp.com
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