EX-99 2 form8k-050727ex9901.txt NEWS RELEASE EXHIBIT 99.01 General Employment News Release General Employment Enterprises, Inc., Oakbrook Terrace Tower, Suite 2200, Oakbrook Terrace, IL 60181, (630) 954-0400 AMEX: JOB FOR IMMEDIATE RELEASE July 27, 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 Third Quarter Results OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX: JOB) reported net income of $259,000, or $.05 per share, for the quarter ended June 30, 2005, compared with a net loss of $12,000, for the same quarter last year. The Company's consolidated net revenues for the quarter were $5,319,000, up 12% from $4,755,000 for the same quarter last year. Contract service revenues of $3,011,000 were up 3%, while placement service revenues of $2,308,000 increased 27%. 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 since the third quarter of last year. The increase in placement service revenues for the quarter was achieved through a combination of a 16% increase in the number of placements and a 5% increase in the average placement fee. Contract service revenues benefited from a 15% increase in the average billing rate, but also reflected a 10% 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 demand for the Company's professional staffing services." Nine Months Results For the nine months ended June 30, 2005, the Company had net income of $399,000, or $.07 per share (diluted), compared with a net loss of $919,000, or $.18 per share, for the same period last year. The results for 2004 reflect a loss from discontinued operations of $.02 per share. There were no provisions or credits for income taxes reflected in the results of operations for either year, because of the presence of losses carried forward from prior years. Consolidated net revenues for the nine-month period were $14,953,000, up 13% compared with $13,216,000 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, 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. GENERAL EMPLOYMENT ENTERPRISES, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands, Except Per Share) Three Months Nine Months Ended June 30 Ended June 30 2005 2004 2005 2004 Net revenues: Contract services $ 3,011 $ 2,934 $ 8,741 $ 8,870 Placement services 2,308 1,821 6,212 4,346 Net revenues 5,319 4,755 14,953 13,216 Operating expenses: Cost of contract services 2,133 2,179 6,193 6,440 Selling 1,403 1,030 3,814 2,681 General and administrative 1,548 1,576 4,604 4,968 Total operating expenses 5,084 4,785 14,611 14,089 Income (loss) from operations 235 (30) 342 (873) Investment income 24 8 57 31 Income (loss) from continuing operations 259 (22) 399 (842) Income (loss) from discontinued operations(1) -- 10 -- (77) Net income (loss)(2) $ 259 $ (12) $ 399 $ (919) Average number of shares: Basic 5,143 5,136 5,140 5,130 Diluted 5,283 5,136 5,361 5,130 Per share - basic: Income (loss) from continuing operations $ .05 $ -- $ .08 $ (.16) Income (loss) from discontinued operations -- -- -- (.02) Net income (loss) $ .05 $ -- $ .08 $ (.18) Per share - diluted: Income (loss) from continuing operations $ .05 $ -- $ .07 $ (.16) Income (loss) from discontinued operations -- -- -- (.02) Net income (loss) $ .05 $ -- $ .07 $ (.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 June 30, 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 June 30, 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) June 30 September 30 2005 2004 Assets: Cash and cash equivalents $ 4,845 $ 4,437 Accounts receivable, net, and other current assets 2,439 2,319 Total current assets 7,284 6,756 Property and equipment, net 652 538 Total assets $ 7,936 $ 7,294 Liabilities and shareholders' equity: Current liabilities $ 2,360 $ 2,126 Shareholders' equity 5,576 5,168 Total liabilities and shareholders' equity $ 7,936 $ 7,294