OAKBROOK TERRACE, Ill., Nov. 21 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (Amex: JOB) reported income from continuing
operations and net income of $272,000, or $.05 per share, for the quarter
ended September 30, 2005, compared with income from continuing operations of
$64,000, or $.01 per share, for the same quarter last year.
For the quarter ended September 30, 2004, the Company had a net loss of
$478,000, or $.09 per share, reflecting a loss from discontinued operations.
The Company's consolidated net revenues for the 2005 quarter were
$5,395,000, up 13% from $4,765,000 for the same quarter last year. Contract
service revenues of $3,013,000 were up 5%, while placement service revenues of
$2,382,000 increased 26%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "The demand for the Company's placement services has
strengthened since the fourth quarter of last year. The increase in placement
service revenues for the quarter was achieved through a combination of a 17%
increase in the number of placements and a 5% increase in the average
placement fee. Contract service revenues benefited from an 18% increase in
the average billing rate, but also reflected a 10% decrease in billable
hours."
Mr. Imhoff added, "Continued improvement for the Company will depend on
continued improvement in the demand for the Company's professional staffing
services."
Fiscal Year Results
For the fiscal year ended September 30, 2005, the Company had income from
continuing operations and net income of $671,000, or $.13 per share, compared
with a loss from continuing operations of $778,000, or $.15 per share, last
year.
For the year ended September 30, 2004, the Company had a net loss of
$1,397,000, or $.27 per share, reflecting a loss from discontinued operations.
There were no provisions or credits for income taxes reflected in the
results for either year because of the presence of losses carried forward from
prior years.
Consolidated net revenues for the 2005 fiscal year were $20,348,000, up
13%, compared with $17,981,000 last year.
Mr. Imhoff concluded his comments saying, "We made substantial progress
this year. We returned the Company to profitability, following a difficult
four-year period for the U.S. jobs market. The improvement this year was
achieved through a 13% increase in consolidated net revenues, while general
and administrative expenses were reduced by $322,000."
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 to attract and retain
qualified corporate and branch management.
General Employment provides professional staffing services through a
network of 18 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 Year
Ended September 30 Ended September 30
2005 2004 2005 2004
Net revenues:
Contract services $ 3,013 $ 2,880 $11,754 $11,750
Placement services 2,382 1,885 8,594 6,231
Net revenues 5,395 4,765 20,348 17,981
Operating expenses:
Cost of contract services 2,142 2,080 8,335 8,520
Selling 1,436 1,084 5,250 3,765
General and administrative 1,582 1,540 6,186 6,508
Total operating expenses 5,160 4,704 19,771 18,793
Income (loss) from operations 235 61 577 (812)
Investment income 37 3 94 34
Income (loss) from
continuing operations 272 64 671 (778)
Loss from discontinued operations(1) -- (542) -- (619)
Net income (loss)(2) $ 272 $ (478) $ 671 $(1,397)
Average number of shares:
Basic 5,147 5,136 5,142 5,131
Diluted 5,337 5,363 5,355 5,131
Per share - basic and diluted:
Income (loss) from continuing
operations $ .05 $ .01 $ .13 $ (.15)
Loss from discontinued operations -- (.10) -- (.12)
Net income (loss) $ .05 $ (.09) $ .13 $ (.27)
(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
September 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 September 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)
September 30 September 30
2005 2004
Assets:
Cash and cash equivalents $ 5,236 $ 4,437
Accounts receivable, net, and
other current assets 2,496 2,319
Total current assets 7,732 6,756
Property and equipment, net 632 538
Total assets $ 8,364 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 2,514 $ 2,126
Shareholders' equity 5,850 5,168
Total liabilities and shareholders' equity $ 8,364 $ 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., +1-630-954-0495, or fax, +1-630-954-0592, or email,
invest@genp.com
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