EX-99.01 2 d75515_ex99-01.htm PRESS RELEASE

EXHIBIT 99.01

 

 

FOR IMMEDIATE RELEASE

November 24, 2008

 

 

 

 

 

COMPANY:

General Employment Enterprises, Inc.

 

 

CONTACT:

Herbert F. Imhoff, Jr.

Chief Executive Officer and President

Phone (630) 954-0495 Fax (630) 954-0592

E-mail invest@genp.com

 

 

General Employment Reports Fourth Quarter and Fiscal 2008 Results

 

OAKBROOK TERRACE, IL – General Employment Enterprises, Inc. (NYSE Alternext: JOB) reported consolidated net revenues for the quarter ended September 30, 2008 of $3,760,000, a 25% decrease compared with consolidated net revenues of $5,022,000 reported for the same period last year.

Placement service revenues for the quarter were $1,949,000, down from $2,829,000 for the same period last year. Contract service revenues of $1,811,000 decreased from $2,193,000 last year.

The Company reported a net loss for the quarter of $474,000, or $.09 per diluted share, compared with net income of $344,000, or $.06 per diluted share, for the same period last year.

Commenting on the Company’s performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO, said, “Our fourth quarter results were adversely affected by the turmoil in the U.S. financial markets and deteriorating employment conditions. Clients became increasingly cautious about hiring, and consolidated net revenues declined 25% from the fourth quarter of last year.”

Mr. Imhoff added, “On a positive note, our revenues improved by 4% and the net loss narrowed, compared with this year’s third quarter.”

Fiscal Year Results

For the fiscal year ended September 30, 2008, the Company had a net loss of $1,806,000, or $.35 per diluted share, compared with net income of $914,000, or $.17 per diluted share, for the same period last year. Consolidated net revenues for the fiscal year were $15,235,000, a 23% decrease compared with $19,690,000 last year.

 

 


Business Information

 

General Employment provides professional staffing services through a network of 17 branch offices located in nine states, and specializes in information technology, accounting and engineering placements.

The Company’s business is highly dependent on national employment trends in general and on the demand for professional staff in particular. Because long-term contracts are not a significant part of the Company’s business, future results cannot be reliably predicted by considering past trends or by extrapolating past results. 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, the possibility of incurring liability for the Company’s business activities, including the activities of contract employees and events affecting its contract employees on client premises, and the ability of the Company to attract and retain qualified corporate and branch management.

 


 

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)

 

Three Months
Ended September 30

Year
Ended September 30

 2008

2007

 2008

 2007

Net revenues:                    
  Contract services     $ 1,811   $ 2,193   $ 7,476   $ 8,448  
  Placement services       1,949     2,829     7,759     11,242  
  Net revenues       3,760     5,022     15,235     19,690  
     
Operating expenses:    
  Cost of contract services       1,221     1,417     5,037     5,641  
  Selling, general    
      and administrative       2,986     3,337     12,041     13,436  
  Total operating expenses       4,207     4,754     17,078     19,077  
                             
Income (loss)from operations       (447 )   268     (1,843 )   613  
Investment income (loss)       (27 )   76     37     301  
                             
Net income (loss)(1)     $ (474 ) $ 344   $ (1,806 ) $ 914  
     
     
Average number of shares:    
  Basic       5,165     5,153     5,163     5,150  
  Diluted       5,165     5,336     5,163     5,368  
     
Net income (loss)per share:    
  Basic     $ (.09 ) $ .07   $ (.35 ) $ .18  
  Diluted     $ (.09 ) $ .06   $ (.35 ) $ .17  


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(1) There were no credits for income taxes as a result of the pretax losses in the 2008 periods, because there was not sufficient assurance that future tax benefits would be realized. There were no provisions for income taxes in the 2007 periods, because of the availability of losses carried forward from prior years.

 


 

GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION

(In Thousands)

 

September 30

September 30 

 2008

 2007

Assets:            
  Cash and cash equivalents     $ 4,165   $ 6,344  
  Other current assets       1,627     2,167  
                 
                 
  Total current assets       5,792     8,511  
  Property and equipment, net       791     929  
  Other assets       419     436  
                 
  Total assets     $ 7,002   $ 9,876  
Liabilities and shareholders’ equity:    
  Current liabilities     $ 1,507   $ 2,116  
  Other liabilities       419     436  
  Shareholders’ equity (2)       5,076     7,324  
                 
  Total liabilities and shareholders’ equity     $ 7,002   $ 9,876  


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 (2) During the year ended September 30, 2008, the board of directors declared a cash dividend in the amount of $.10 per common share, resulting in a $517,000 charge to retained earnings.