EX-99 2 form8k-040730ex9901.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 July 30, 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 Third-Quarter Results OAKBROOK TERRACE, IL - 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." (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD ONE 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. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD TWO 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. (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD THREE 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 -30-