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 July 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
Third-Quarter Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX:
JOB) reported a net loss of $852,000, or $.17 per share, for the
quarter ended June 30, 2003, compared with a net loss of $784,000,
or $.15 per share, for the same quarter last year.
The pretax loss for the current quarter was $852,000, which was the
same as the net loss, compared with a pretax loss of $1,259,000 for
the same quarter last year. There was no income tax benefit for the
current quarter, while there was a tax credit of $475,000 for last
year's quarter.
The Company's consolidated net revenues for the quarter were
$4,597,000, down 3% from $4,734,000 for the same quarter last year.
Placement service revenues of $1,357,000 were about even with last
year, while contract service revenues of $3,240,000 declined 4%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "We continued to see a pattern of
weakness in the United States labor market during the June 2003
quarter, and that weakness continued to suppress the demand for our
staffing services. I am pleased that our volumes for the quarter
improved from last year, as the number of permanent placements was
up 8% and the number of billable contract hours was up 5%. Due to
the weakness in demand, however, our business was subjected to
pricing pressures that pushed average fees lower and resulted in
lower overall revenues."
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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 evident in our
reduced cost structure. For the quarter, general and administrative
expenses were down 15%, and total operating expenses were down 9%.
These reductions reflect the benefit of closing eight unprofitable
branch offices and other actions taken during the last twelve
months. As a result, the Company reduced its third-quarter pretax
loss by $407,000, or 32%, compared with last year."
For the nine months ended June 30, 2003, the Company had a net loss
of $2,596,000, or $.51 per share, compared with a net loss of
$2,255,000, or $.44 per share, for the same period last year. The
pretax loss for the current year to date was $2,596,000, compared
with last year's pretax loss of $3,630,000. Consolidated net
revenues for the nine-month period were $14,027,000, down 9%
compared with $15,397,000 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 national hiring
levels for information technology and other professionals. It is
difficult to predict when such a recovery will occur."
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 25 branch offices located 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 Nine Months
Ended June 30 Ended June 30
2003 2002 2003 2002
Net revenues:
Placement services $ 1,357 $ 1,362 $ 4,113 $ 4,841
Contract services 3,240 3,372 9,914 10,556
Net revenues 4,597 4,734 14,027 15,397
Operating expenses:
Cost of contract services 2,246 2,240 6,857 6,988
Selling 910 1,044 2,928 3,555
General and administrative(1) 2,314 2,727 6,883 8,581
Total operating expenses 5,470 6,011 16,668 19,124
Loss from operations (873) (1,277) (2,641) (3,727)
Interest income 21 18 45 97
Loss before income taxes (852) (1,259) (2,596) (3,630)
Credit for income taxes(2) -- (475) -- (1,375)
Net loss $ (852) $ (784) $ (2,596) $(2,255)
Net loss per share $ (.17) $ (.15) $ (.51) $ (.44)
Average number of shares 5,121 5,121 5,121 5,114
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(1) General and administrative expenses include provisions
for office closings of $178,000 in the three month period
ended June 30, 2003, $215,000 in the nine month period ended
June 30, 2003, and $253,000 in the nine month period ended
June 30, 2002.
(2) There were no credits for income taxes as a result of
the pretax losses for the three and nine month periods ended
June 30, 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)
June 30 September 30
2003 2002
Assets:
Cash and cash equivalents $ 4,314 $ 4,759
Income tax refunds receivable 144 1,540
Accounts receivable and other current assets 2,450 2,683
Total current assets 6,908 8,982
Property, equipment and goodwill, net 2,541 2,951
Total assets $ 9,449 $11,933
Liabilities and shareholders' equity:
Current liabilities $ 2,025 $ 1,944
Shareholders' equity 7,424 9,989
Total liabilities and shareholders' equity $ 9,449 $11,933
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