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 24, 2003
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) reported a net loss of $1,100,000, or $ .21 per
share, for the quarter ended March 31, 2003, compared with a net
loss of $921,000, or $ .18 per share, for the same quarter last year.
The pretax loss for the current quarter was $1,100,000, which was
the same as the net loss, compared with a pretax loss of
$1,491,000 last year. There was no income tax benefit for the
current year's loss, while there was a tax credit of $570,000
last year.
The Company's consolidated net revenues for the quarter were
$4,530,000, down 12% from $5,154,000 for the same quarter last
year. Placement service revenues of $1,136,000 were down 29%,
while contract service revenues of $3,394,000 declined 5%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "The labor market in the United
States was very weak during the March 2003 quarter, as any signs
of increased hiring levels that we saw during the December 2002
quarter evaporated. That weakness had a particularly adverse
effect on the demand for our permanent placement services, and as
a result, the number of placements made during the quarter
dropped 16% below the depressed level of the second quarter of
last year. The weak demand also contributed to lower average
fees for both of our divisions. One encouraging trend, however,
was that the number of billable contract hours rose 5%."
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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Mr. Imhoff continued, "Despite the weak labor market and lower
revenues, I am pleased with the Company's performance on
controlling costs, as actions taken over the past year are now
showing up in our reduced cost structure. For the quarter,
general and administrative expenses were down 25%, and total
operating expenses were down 16%. These reductions reflect the
benefit of closing four unprofitable branch offices during the
last twelve months and other staff reductions. As a result, the
Company reduced its second-quarter pretax loss by $391,000, or
26%, compared with last year."
For the six months ended March 31, 2003, the Company had a net
loss of $1,744,000, or $ .34, per share, compared with a net loss
of $1,471,000, or $ .29 per share, for the same period last year.
Consolidated net revenues for the six-month period were
$9,430,000, down 12% compared with $10,663,000 last year.
Mr. Imhoff concluded his comments by saying, "I am committed to
returning the Company to profitability. We made important
strides in reducing our cost structure, and we will continue to
examine further cost-reduction options in the future.
Nevertheless, our return to profitability depends on an
improvement in the national hiring levels for information
technology and other professionals. It is difficult to predict
when corporate America will begin hiring again, but I am
cautiously optimistic that the resolution of matters in Iraq will
have a positive influence."
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 project 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 30 branch offices, located in high-tech
centers in 12 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.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Six Months
Ended March 31 Ended March 31
2003 2002 2003 2002
Net revenues:
Placement services $ 1,136 $ 1,597 $ 2,756 $ 3,479
Contract services 3,394 3,557 6,674 7,184
Net revenues 4,530 5,154 9,430 10,663
Operating expenses:
Cost of contract services 2,394 2,350 4,611 4,748
Selling 894 1,207 2,018 2,511
General and administrative(1) 2,348 3,119 4,569 5,854
Total operating expenses 5,636 6,676 11,198 13,113
Loss from operations (1,106) (1,522) (1,768) (2,450)
Interest income 6 31 24 79
Loss before income taxes (1,100) (1,491) (1,744) (2,371)
Credit for income taxes(2) -- (570) -- (900)
Net loss $(1,100) $ (921) $(1,744) $(1,471)
Net loss per share $ (.21) $ (.18) $ (.34) $ (.29)
Average number of shares 5,121 5,121 5,121 5,111
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(1) General and administrative expenses include provisions for
office closings of $37,000 in the three and six month periods
ended March 31, 2003, and $253,000 in the three months and six
months ended March 31, 2002.
(2) There were no credits for income taxes as a result of the
pretax losses for the three and six month periods ended March 31,
2003, because the tax losses must be carried forward and there
was not sufficient assurance
that future tax benefits would be realized.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
March 31 September 30
2003 2002
Assets:
Cash and cash equivalents $ 4,541 $ 4,759
Income tax refunds receivable 253 1,540
Accounts receivable and other current assets 2,688 2,683
Total current assets 7,482 8,982
Property, equipment and goodwill, net 2,687 2,951
Total assets $10,169 $11,933
Liabilities and shareholders' equity:
Current liabilities $ 1,904 $ 1,944
Shareholders' equity 8,265 9,989
Total liabilities and shareholders' equity $10,169 $11,933
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