EX-99 3 form8k-040127ex99.txt NEWS RELEASE 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 January 27, 2004 COMPANY: General Employment Enterprises, Inc. CONTACT: Doris A. Bernar Communications Manager & Assistant Corporate Secretary Phone (630) 954-0495 (630) 954-0592 fax invest@genp.com e-mail General Employment Reports First Quarter Results OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX: JOB) reported a net loss of $462,000, or $ .09 per share, for the quarter ended December 31, 2003, compared with a net loss of $644,000 or $ .13 per share, for the same quarter last year. The Company's consolidated net revenues for the quarter were $4,563,000, down 7% from $4,900,000 last year. Contract service revenues of $3,392,000 increased 3%, while placement service revenues of $1,171,000 declined 28%. Commenting on the Company's first quarter performance, Herbert F. Imhoff, Jr., board chairman and CEO, said, "We saw some improvement in the demand for contract services during the quarter. As a result, the Company had an 18% increase in the number of billable hours. Weakness in the demand for placement services continued, however, and the number of placements was down 20%. In addition, we continued to experience downward pressures on pricing, resulting in lower average fees in both of the divisions." Mr. Imhoff continued, "Through aggressive cost-cutting programs, we were able to reduce general and administrative expenses by 16% versus last year's first quarter. As a result, we were able to reduce the size of our net loss by 28%, despite the lower consolidated revenues. Our financial condition remained strong, with $3,301,000 of cash and cash equivalents and a current ratio of 3.2 to 1 as of December 31, 2003." (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD ONE Mr. Imhoff concluded his comments by saying, "As I have said before, the key to returning the Company to profitability lies in increasing its overall revenues. The improvement in billable contract hours that we experienced during the first quarter is an encouraging sign. That is because, in past economic recoveries, employers have tended to use temporary help services before they committed to full-time hiring. However, we have yet to see any noticeable improvement in the demand for full-time hiring in our operations." 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 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 21 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. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD TWO GENERAL EMPLOYMENT ENTERPRISES, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands, Except Per Share) Three Months Ended December 31 2003 2002 Net revenues: Contract services $3,392 $3,280 Placement services 1,171 1,620 Net revenues 4,563 4,900 Operating expenses: Cost of contract services 2,370 2,217 Selling 803 1,124 General and administrative(1) 1,869 2,221 Total operating expenses 5,042 5,562 Loss from operations (479) (662) Investment income 17 18 Loss before income taxes (462) (644) Credit for income taxes(2) -- -- Net loss $ (462) $ (644) Net loss per share - basic and diluted $ (.09) $ (.13) Average number of shares - basic and diluted 5,121 5,121 __________________________________________________ (1) General and administrative expenses include a provision for office closings of $25,000 in the three month period ended December 31, 2003. (2) There were no credits for income taxes as a result of the pretax losses for the periods ended December 31, 2003 and 2002, 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. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD THREE GENERAL EMPLOYMENT ENTERPRISES, INC. SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) December 31 September 30 2003 2003 Assets: Cash and cash equivalents $3,301 $3,905 Accounts receivable and other current assets 2,573 2,595 Total current assets 5,874 6,500 Property, equipment and goodwill, net 2,021 2,191 Total assets $7,895 $8,691 Liabilities and shareholders' equity: Current liabilities $1,824 $2,167 Shareholders' equity 6,071 6,524 Total liabilities and shareholders' equity $7,895 $8,691 -30-