EX-99 2 form8k-050428ex9901.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 April 28, 2005 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) announced its results for the quarter ended March 31, 2005. Second Quarter Results The Company reported net income of $21,000 for the quarter ended March 31, 2005, compared with a net loss of $445,000, or $.09 per share, for the same quarter last year. The Company's consolidated net revenues for the quarter were $4,752,000,up 12% from $4,231,000 for the same quarter last year. Contract service revenues of $2,771,000 were down 4%, while placement service revenues of $1,981,000 increased 46%. Commenting on the Company's performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO said, "The demand for the Company's placement services has strengthened considerably since the second quarter of last year. The increase in placement service revenues was achieved through a combination of a 32% increase in the number of placements and a 9% increase in the average placement fee. Contract service revenues were down for the quarter due to a 5% decrease in billable hours. The increase in consolidated revenues enabled the Company to return to profitability for the quarter." Mr. Imhoff added, "Continued improvement for the Company will depend on continued improvement in the national jobs market." Six Months Results For the six months ended March 31, 2005, the Company had net income of $140,000, or $.03 per share, compared with a net loss of $907,000, or $.18 per share, for the same period last year. Consolidated net revenues for the six-month period were $9,634,000, up 14% compared with $8,461,000 last year. 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 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. GENERAL EMPLOYMENT ENTERPRISES, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands, Except Per Share) Three Months Six Months Ended March 31 Ended March 31 2005 2004 2005 2004 Net revenues: Contract services $ 2,771 $ 2,877 $ 5,730 $ 5,936 Placement services 1,981 1,354 3,904 2,525 Net revenues 4,752 4,231 9,634 8,461 Operating expenses: Cost of contract services 1,977 2,120 4,060 4,261 Selling 1,257 866 2,411 1,651 General and administrative 1,510 1,638 3,056 3,392 Total operating expenses 4,744 4,624 9,527 9,304 Income (loss) from operations 8 (393) 107 (843) Investment income 13 6 33 23 Income (loss) from continuing operations 21 (387) 140 (820) Loss from discontinued operations(1) -- (58) -- (87) Net income (loss)(2) $ 21 $ (445) $ 140 $ (907) Average number of shares: Basic 5,141 5,132 5,139 5,127 Diluted 5,383 5,132 5,390 5,127 Per share - basic and diluted: Income (loss) from continuing operations $ -- $ (.08) $ .03 $ (.16) Loss from discontinued operations -- (.01) -- (.02) Net income (loss) $ -- $ (.09) $ .03 $ (.18) __________________________________________________ (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 March 31, 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 March 31, 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) March 31 September 30 2005 2004 Assets: Cash and cash equivalents $ 4,444 $ 4,437 Accounts receivable, net, and other current assets 2,354 2,319 Total current assets 6,798 6,756 Property and equipment, net 399 538 Total assets $ 7,197 $ 7,294 Liabilities and shareholders' equity: Current liabilities $ 1,884 $ 2,126 Shareholders' equity 5,313 5,168 Total liabilities and shareholders' equity $ 7,197 $ 7,294