-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UI1nToqMTO6ikI/OtrG1fZKD/zbfoKQrIxNWcSnlzR3zLtVdlmLytL6gFbLPgGT8 JHqogCoNAZVNXDkHXCyZmg== 0000040570-03-000004.txt : 20030425 0000040570-03-000004.hdr.sgml : 20030425 20030425150054 ACCESSION NUMBER: 0000040570-03-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030424 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL EMPLOYMENT ENTERPRISES INC CENTRAL INDEX KEY: 0000040570 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EMPLOYMENT AGENCIES [7361] IRS NUMBER: 366097429 STATE OF INCORPORATION: IL FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05707 FILM NUMBER: 03664512 BUSINESS ADDRESS: STREET 1: ONE TOWER LANE SUITE 2100 CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 630-954-0400 MAIL ADDRESS: STREET 1: ONE TOWER LANE STREET 2: SUITE 2100 CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 FORMER COMPANY: FORMER CONFORMED NAME: OSHEA CHARLES M CORP DATE OF NAME CHANGE: 19670413 8-K 1 form8k-030425.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 24, 2003 GENERAL EMPLOYMENT ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Illinois 001-05707 36-6097429 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification Number) One Tower Lane, Suite 2100, Oakbrook Terrace, Illinois 60181 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (630) 954-0400 Item 7. Financial Statements, Pro Forma Financial Information and Exhibits Exhibits The following exhibit is filed as part of this report: No. Description of Exhibit 99.01 Press release issued by General Employment Enterprises, Inc., dated April 24, 2003. Item 9. Regulation FD Disclosure, and Item 12. Results of Operations and Financial Condition On April 24, 2003, General Employment Enterprises, Inc. issued a press release containing information regarding its results of operations and financial condition for the quarterly period ended March 31, 2003. A copy of the press release is furnished as an exhibit to this Form 8-K Current Report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GENERAL EMPLOYMENT ENTERPRISES, INC. (Registrant) Date: April 25, 2003 By: /s/ Kent M. Yauch Kent M. Yauch Vice President, Chief Financial Officer and Treasurer EX-99 3 form8k-030425ex99.txt PRESS RELEASE DATED 4/24/03 EXHIBIT 99.01 General Employment News Release General Employment Enterprises, Inc., Oakbrook Terrace Tower, Suite 2100, Oakbrook Terrace, IL 60181, (630) 954-0400 AMEX: JOB FOR IMMEDIATE RELEASE April 24, 2003 COMPANY: General Employment Enterprises, Inc. CONTACTS: Doris A. Bernar Communications Manager & Assistant Corporate Secretary Phone (630) 954-0495 (630) 954-0592 fax invest@genp.com e-mail General Employment Reports Second Quarter Results OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX: JOB) reported a net loss of $1,100,000, or $ .21 per share, for the quarter ended March 31, 2003, compared with a net loss of $921,000, or $ .18 per share, for the same quarter last year. The pretax loss for the current quarter was $1,100,000, which was the same as the net loss, compared with a pretax loss of $1,491,000 last year. There was no income tax benefit for the current year's loss, while there was a tax credit of $570,000 last year. The Company's consolidated net revenues for the quarter were $4,530,000, down 12% from $5,154,000 for the same quarter last year. Placement service revenues of $1,136,000 were down 29%, while contract service revenues of $3,394,000 declined 5%. Commenting on the Company's performance, Herbert F. Imhoff, Jr., board chairman and CEO, said, "The labor market in the United States was very weak during the March 2003 quarter, as any signs of increased hiring levels that we saw during the December 2002 quarter evaporated. That weakness had a particularly adverse effect on the demand for our permanent placement services, and as a result, the number of placements made during the quarter dropped 16% below the depressed level of the second quarter of last year. The weak demand also contributed to lower average fees for both of our divisions. One encouraging trend, however, was that the number of billable contract hours rose 5%." (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD ONE 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 showing up in our reduced cost structure. For the quarter, general and administrative expenses were down 25%, and total operating expenses were down 16%. These reductions reflect the benefit of closing four unprofitable branch offices during the last twelve months and other staff reductions. As a result, the Company reduced its second-quarter pretax loss by $391,000, or 26%, compared with last year." For the six months ended March 31, 2003, the Company had a net loss of $1,744,000, or $ .34, per share, compared with a net loss of $1,471,000, or $ .29 per share, for the same period last year. Consolidated net revenues for the six-month period were $9,430,000, down 12% compared with $10,663,000 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 the national hiring levels for information technology and other professionals. It is difficult to predict when corporate America will begin hiring again, but I am cautiously optimistic that the resolution of matters in Iraq will have a positive influence." 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 30 branch offices, located in high-tech centers 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. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD TWO GENERAL EMPLOYMENT ENTERPRISES, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands, Except Per Share) Three Months Six Months Ended March 31 Ended March 31 2003 2002 2003 2002 Net revenues: Placement services $ 1,136 $ 1,597 $ 2,756 $ 3,479 Contract services 3,394 3,557 6,674 7,184 Net revenues 4,530 5,154 9,430 10,663 Operating expenses: Cost of contract services 2,394 2,350 4,611 4,748 Selling 894 1,207 2,018 2,511 General and administrative(1) 2,348 3,119 4,569 5,854 Total operating expenses 5,636 6,676 11,198 13,113 Loss from operations (1,106) (1,522) (1,768) (2,450) Interest income 6 31 24 79 Loss before income taxes (1,100) (1,491) (1,744) (2,371) Credit for income taxes(2) -- (570) -- (900) Net loss $(1,100) $ (921) $(1,744) $(1,471) Net loss per share $ (.21) $ (.18) $ (.34) $ (.29) Average number of shares 5,121 5,121 5,121 5,111 __________________________________________________ (1) General and administrative expenses include provisions for office closings of $37,000 in the three and six month periods ended March 31, 2003, and $253,000 in the three months and six months ended March 31, 2002. (2) There were no credits for income taxes as a result of the pretax losses for the three and six month periods ended March 31, 2003, because the tax losses must be carried forward and there was not sufficient assurance that future tax benefits would be realized. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD THREE GENERAL EMPLOYMENT ENTERPRISES, INC. SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) March 31 September 30 2003 2002 Assets: Cash and cash equivalents $ 4,541 $ 4,759 Income tax refunds receivable 253 1,540 Accounts receivable and other current assets 2,688 2,683 Total current assets 7,482 8,982 Property, equipment and goodwill, net 2,687 2,951 Total assets $10,169 $11,933 Liabilities and shareholders' equity: Current liabilities $ 1,904 $ 1,944 Shareholders' equity 8,265 9,989 Total liabilities and shareholders' equity $10,169 $11,933 -30- -----END PRIVACY-ENHANCED MESSAGE-----