OAKBROOK TERRACE, Ill., July 30 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported a net loss of $12,000, or
$.00 per share, for the quarter ended June 30, 2004, compared with a net loss
of $852,000, or $.17 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $5,090,000,
up 11% from $4,597,000 for the same quarter last year. Contract service
revenues of $3,269,000 were up 1% from last year, while placement service
revenues of $1,821,000 increased 34%.
On a sequential basis, consolidated net revenues increased 12% from
$4,547,000 for the quarter ended March 31, 2004, and the net loss decreased
97% from $445,000 ($.09 per share) last quarter.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO, said, "During the fiscal third quarter, the Company took a
significant step on the road to recovery. National hiring activity improved,
the Company experienced an improvement in the demand for its placement
services, and consolidated net revenues increased by 11%. As a result, the
Company's net loss was reduced to just shy of break even."
Mr. Imhoff continued, "The 34% increase in placement service revenues for
the quarter was achieved through a combination of a 36% increase in the number
of placements and a 6% increase in the average placement fee, partially offset
by higher falloffs. Contract service revenues were essentially flat, despite
a 21% increase in billable hours, because of continued downward pressures on
pricing in that division."
Mr. Imhoff added, "The aggressive actions taken by management to cut costs
also had a significant impact on the bottom line. General and administrative
expenses were down $654,000 (28%) from the same quarter last year."
Mr. Imhoff concluded his remarks by saying, "I am gratified to see the
improvement in the Company's performance during the third quarter. However, I
am cautiously optimistic about the prospects for the remainder of the fiscal
year. Continued improvement for the Company will depend on continued
improvement in the national jobs market."
For the nine months ended June 30, 2004, the Company had a net loss of
$919,000, or $.18 per share, compared with a net loss of $2,596,000, or
$.51 per share, for the same period last year. Consolidated net revenues
for the nine-month period were $14,200,000, up 1% compared with $14,027,000
last year.
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 20 branch offices located in 11 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
2004 2003 2004 2003
Net revenues:
Contract services $ 3,269 $ 3,240 $ 9,854 $ 9,914
Placement services 1,821 1,357 4,346 4,113
Net revenues 5,090 4,597 14,200 14,027
Operating expenses:
Cost of contract services 2,413 2,246 7,150 6,857
Selling 1,037 910 2,718 2,928
General and administrative(1) 1,660 2,314 5,282 6,883
Total operating expenses 5,110 5,470 15,150 16,668
Loss from operations (20) (873) (950) (2,641)
Investment income 8 21 31 45
Net loss(2) $(12) $(852) $(919) $(2,596)
Average number of shares -
basic and diluted 5,136 5,121 5,130 5,121
Net loss per share -
basic and diluted $- $(.17) $(.18) $(.51)
(1) General and administrative expenses include provisions for office
closings of $17,000 in the three month period ended June 30, 2004,
$178,000 in the three month period ended June 30, 2003, $42,000 in the
nine month period ended June 30, 2004, and $215,000 in the nine month
period ended June 30, 2003.
(2) There were no credits for income taxes as a result of the pretax
losses in fiscal 2004 and fiscal 2003, because the tax losses must be
carried forward for income tax purposes 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
2004 2003
Assets:
Cash and cash equivalents $3,447 $3,905
Accounts receivable and other current assets 2,426 2,595
Total current assets 5,873 6,500
Property, equipment and goodwill 1,769 2,191
Total assets $7,642 $8,691
Liabilities and shareholders' equity:
Current liabilities $1,999 $2,167
Shareholders' equity 5,643 6,524
Total liabilities and shareholders' equity $7,642 $8,691
SOURCE General Employment Enterprises, Inc.
 back to top
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., +1-630-954-0495, +1-630-954-0592 fax, invest@genp.com
|
