OAKBROOK TERRACE, Ill., July 28 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported consolidated net revenues
for the quarter ended June 30, 2008 of $3,622,000, compared with
consolidated net revenues of $4,864,000 reported for the same period last
year.
Placement services revenues for the quarter were $1,817,000, down 38%
from the same period last year. Contract service revenues of $1,805,000
decreased 7% from last year.
As a result of the lower revenues, the Company had a net loss of
$582,000, or $.11 per diluted share, in the third quarter of this fiscal
year, compared with net income of $184,000, or $.03 per diluted share, in
the third quarter last year.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "The depressed economy had a significant impact on
our revenues and operating results this quarter. Based on feedback from our
branch offices, we believe current and potential clients have chosen to
limit their hiring plans due to the continuing economic uncertainties."
Mr. Imhoff added, "In response to these business conditions, we have
taken a number of proactive measures to contain losses and increase branch
productivity. As of today, we have closed three underperforming branch
offices this fiscal year. In addition, we added a national training manager
to our corporate team whose focus will be on increasing branch production
levels as well as improving the hiring and retention of field staff."
Concluding, Mr. Imhoff said, "Our priorities are to improve the
Company's revenues through additional training, to maintain tight controls
over spending and to evaluate other cost-cutting options."
Nine Months Results
For the nine months ended June 30, 2008, the Company had a net loss of
$1,332,000, or $.26 per share, compared with net income of $570,000, or
$.11 per share, for the same period last year. Consolidated net revenues
for the nine-month period were $11,475,000, down from $14,668,000 last
year.
Business Information
General Employment provides professional staffing services through a
network of 17 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 Nine Months
Ended June 30 Ended June 30
2008 2007 2008 2007
Net revenues:
Contract services $1,805 $1,942 $ 5,665 $ 6,255
Placement services 1,817 2,922 5,810 8,413
Net revenues 3,622 4,864 11,475 14,668
Operating expenses:
Cost of contract services 1,207 1,306 3,816 4,224
Selling 1,232 1,856 3,885 5,308
General and administrative 1,779 1,601 5,170 4,791
Total operating expenses 4,218 4,763 12,871 14,323
Income (loss) from operations (596) 101 (1,396) 345
Investment income 14 83 64 225
Net income (loss)(1) $ (582) $ 184 $(1,332) $ 570
Average number of shares:
Basic 5,165 5,151 5,163 5,149
Diluted 5,165 5,399 5,163 5,372
Net income (loss) per share:
Basic $ (.11) $ .04 $ (.26) $ .11
Diluted $ (.11) $ .03 $ (.26) $ .11
(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)
June 30 September 30
2008 2007
Assets:
Cash and cash equivalents $4,267 $6,344
Other current assets 1,992 2,167
Total current assets 6,259 8,511
Property and equipment, net 849 929
Other assets 441 436
Total assets $7,549 $9,876
Liabilities and shareholders' equity:
Current liabilities $1,574 $2,116
Other liabilities 441 436
Shareholders' equity(2) 5,534 7,324
Total liabilities and shareholders' equity $7,549 $9,876
(2) During the nine months ended June 30, 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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