EX-99 2 form8k-060130ex9901.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 January 30, 2006 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 First Quarter Results OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX: JOB) reported net income of $128,000, or $.02, per share for the quarter ended December 31, 2005, compared with net income of $119,000, or $.02 per share, for the same quarter last year. The Company's consolidated net revenues for the quarter were $4,713,000, down 3% from $4,882,000 last year. Contract service revenues of $2,638,000 were down 11% from last year, while placement service revenues of $2,075,000 increased 8%. Commenting on the Company's performance, Herbert F. Imhoff, Jr., board chairman and CEO said, "It was a quarter with mixed results. The increase in placement service revenues reflects a 10% increase in the number of placements, compared with the first quarter of last year, as we experienced a modest improvement in demand. The decrease in contract service revenues reflects a 25% decrease in billable hours that resulted from the completion of a number of long-term assignments since last year. By emphasizing higher- paid positions, however, we were able to realize a 19% increase in the average billing rate." Mr. Imhoff added, "The Company's business is highly influenced by national employment trends, particularly for professional staffing. Currently, the direction of the employment market in 2006 seems a bit uncertain. Nevertheless, I believe that the Company is well positioned." 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 to attract and retain qualified corporate and branch management. General Employment provides professional staffing services through a network of 18 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 Ended December 31 2005 2004 Net revenues: Contract services $2,638 $2,959 Placement services 2,075 1,923 Net revenues 4,713 4,882 Operating expenses: Cost of contract services 1,856 2,083 Selling 1,270 1,154 General and administrative 1,502 1,546 Total operating expenses 4,628 4,783 Income from operations 85 99 Investment income 43 20 Net income(1) $ 128 $ 119 Average number of shares: Basic 5,148 5,137 Diluted 5,369 5,399 Net income per share - basic and diluted: $ .02 $ .02 __________________________________________________ (1) There was no provision for income taxes in either year because of the availability of operating losses carried forward from prior years. GENERAL EMPLOYMENT ENTERPRISES, INC. SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) December 31 September 30 2005 2005 Assets: Cash and cash equivalents $4,814 $5,236 Accounts receivable, net, and other current assets 2,284 2,496 Total current assets 7,098 7,732 Property and equipment, net 613 632 Total assets $7,711 $8,364 Liabilities and shareholders' equity: Current liabilities $1,733 $2,514 Shareholders' equity 5,978 5,850 Total liabilities and shareholders' equity $7,711 $8,364