EX-99 2 form8k-050126ex9901.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 25, 2005 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) announced its results for the quarter ended December 31, 2004. First Quarter Results The Company reported net income of $119,000, or $.02 per share, for the quarter ended December 31, 2004, compared with a net loss of $462,000 or $.09 per share, for the same quarter last year. The Company's consolidated net revenues for the quarter were $4,882,000, up 15% from $4,230,000 last year. Contract service revenues of $2,959,000 were down 3% from last year, while placement service revenues of $1,923,000 increased 64%. Commenting on the Company's first quarter performance, Herbert F. Imhoff, Jr., board chairman and CEO, said, "The demand for the Company's placement services has improved considerably since the first quarter of last year. The increase in placement service revenues was achieved through a combination of a 34% increase in the number of placements and a 26% increase in the average placement fee. Contract service revenues were down for the quarter, despite a 5% increase in billable hours, because of filling lower-paid positions and pressures on pricing in that division." (more) GENERAL EMPLOYMENT ENTERPRISES, INC. ADD ONE Mr. Imhoff concluded, "Due to cost-reduction actions taken by management, general and administrative expenses were down $208,000 (12%) from the first quarter of last year. The combination of improved revenues and reduced expenses enabled the Company to return to profitability for the quarter." 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 of the Company to attract and retain qualified corporate and branch management. General Employment provides professional staffing services through a network of 19 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. (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 2004 2003 Net revenues: Contract services $2,959 $3,059 Placement services 1,923 1,171 Net revenues 4,882 4,230 Operating expenses: Cost of contract services 2,083 2,141 Selling 1,154 785 General and administrative 1,546 1,754 Total operating expenses 4,783 4,680 Income (loss) from operations 99 (450) Investment income 20 17 Income (loss) from continuing operations 119 (433) Loss from discontinued operations(1) -- (29) Net income (loss)(2) $ 119 $ (462) Average number of shares: Basic 5,137 5,121 Diluted 5,399 5,121 Income (loss) per share - basic and diluted: Income (loss) from continuing operations $ .02 $ (.08) Loss from discontinued operations -- (.01) Net income (loss) $ .02 $ (.09) __________________________________________________ (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 was no provision for income taxes for the period ended December 31, 2004, because of the utilization of losses carried forward from prior years. There was no credit for income taxes as a result of the pretax losses for the period ended December 31, 2003, because the losses were carried forward and there was not sufficient assurance that a future tax benefit 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 2004 2004 Assets: Cash and cash equivalents $4,224 $4,437 Accounts receivable, net, and other current assets 2,329 2,319 Total current assets 6,553 6,756 Property and equipment, net 469 538 Total assets $7,022 $7,294 Liabilities and shareholders' equity: Current liabilities $1,730 $2,126 Shareholders' equity 5,292 5,168 Total liabilities and shareholders' equity $7,022 $7,294 -30-