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 November 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
Fourth Quarter and Fiscal Year Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX:
JOB) reported a net loss of $910,000, or $.18 per share, for the
quarter ended September 30, 2003, compared with a net loss of
$959,000, or $.19 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were
$4,582,000, down 7% from $4,921,000 for the same quarter last year.
Placement service revenues of $1,375,000 were down 21% from last
year, while contract service revenues of $3,207,000 increased 1%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "I am pleased to report that our
contract service volume in the fourth quarter was up 18% over last
year's fourth quarter, and that for each of the four quarters of
the 2003 fiscal year, billable hours exceeded the corresponding
quarter of the prior year. However, the number of full-time
placements made during the fourth quarter was down 11%.
Competitive pressures during the fourth quarter pushed average fees
lower in both of our divisions, resulting in the lower overall
revenues for the quarter."
Mr. Imhoff added, "During the fourth quarter we continued to
evaluate marginal operations. As a result, we closed three branch
offices and recorded office closing costs totaling $410,000. There
were $148,000 of such charges in last year's fourth quarter.
Excluding those costs, the Company's pretax loss improved by
$266,000 for the quarter, from $766,000 last year to $500,000 this
year."
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GENERAL EMPLOYMENT ENTERPRISES, INC.
ADD ONE
For the fiscal year ended September 30, 2003, the Company had a net
loss of $3,506,000, or $.68 per share, compared with a net loss of
$3,214,000, or $.63 per share last year.
The pretax loss for the current year was $3,506,000, which was the
same as the net loss, compared with a pretax loss of $4,544,000
last year. There was no income tax benefit for the current year's
loss, because the tax loss must be carried forward and there was
not sufficient assurance that a future tax benefit would be
realized. There was a tax credit of $1,330,000 last year.
Consolidated net revenues for the year were $18,609,000, down 8%
compared with $20,318,000 last year.
Commenting on the Company's fiscal 2003 performance, Mr. Imhoff
said, "The last three fiscal years have been a difficult period for
our Company, because of the weak national employment market.
Although consolidated revenues continued to decline in fiscal 2003,
there were some significant accomplishments. Billable contract
hours were up 7% for the year, and the number of placements for the
year was only 3% less than the prior year indicating that the three-
year decline in full-time hiring may have bottomed out."
Mr. Imhoff continued, "We worked hard all year to streamline our
Company, including closing ten branch offices, and made substantial
progress in reducing our operating costs. Excluding provisions for
office closings and impairment losses totaling $625,000 in 2003 and
$401,000 in 2002, we reduced general and administrative expenses by
$2,133,000 for the year, and we were able to reduce the pretax loss
by $1,262,000. The Company finished the year with a cash balance
of $3,905,000 and a current ratio of 3.0 to 1."
Mr. Imhoff concluded, "I believe that the Company is well
positioned going into fiscal 2004. But, in order to return to
profitability, we need an increase in overall revenues. To
accomplish that, we need to see some improvement in the employment
market, particularly for information technology and other business
and engineering professionals. Although there have been some
promising economic signs recently that a rebound may be coming, we
have yet to see any noticeable improvement in the demand for full-
time hiring."
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GENERAL EMPLOYMENT ENTERPRISES, INC.
ADD TWO
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 22 branch offices located in 11 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.
ADD THREE
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Year
Ended September 30 Ended September 30
2003 2002 2003 2002
Net revenues:
Placement services $ 1,375 $ 1,750 $ 5,488 $ 6,591
Contract services 3,207 3,171 13,121 13,727
Net revenues 4,582 4,921 18,609 20,318
Operating expenses:
Cost of contract services 2,211 2,094 9,068 9,082
Selling 782 1,029 3,710 4,584
General and administrative(1) 2,512 2,723 9,395 11,304
Total operating expenses 5,505 5,846 22,173 24,970
Loss from operations (923) (925) (3,564) (4,652)
Investment income 13 11 58 108
Loss before income taxes (910) (914) (3,506) (4,544)
Provision (credit) for income taxes(2) -- 45 -- (1,330)
Net loss $ (910) $ (959) $(3,506) $(3,214)
Net loss per share -
basic and diluted $ (.18) $ (.19) $ (.68) $ (.63)
Average number of shares -
basic and diluted 5,121 5,121 5,121 5,116
__________________________________________________
(1) General and administrative expenses include provisions for
office closings and asset impairment losses totaling $410,000
in the three month period ended September 30, 2003, $148,000 in
the three month period ended September 30, 2002, $625,000 in
the year ended September 30, 2003, and $401,000 in the year
ended September 30, 2002.
(2) There were no credits for income taxes as a result of the
pretax losses in fiscal 2003, because the tax losses must be
carried forward and there was not sufficient assurance that a
future tax benefit would be realized. The provision (credit)
for income taxes for the quarter and year ended September 30,
2002 include a provision to record a deferred tax valuation
allowance of $386,000.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
ADD FOUR
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
September 30 September 30
2003 2002
Assets:
Cash and cash equivalents $ 3,905 $ 4,759
Income tax refunds receivable 57 1,540
Accounts receivable and other current assets 2,538 2,683
Total current assets 6,500 8,982
Property, equipment and goodwill 2,191 2,951
Total assets $ 8,691 $11,933
Liabilities and shareholders' equity:
Current liabilities $ 2,167 $ 1,944
Shareholders' equity 6,524 9,989
Total liabilities and shareholders' equity $ 8,691 $11,933
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