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 January 27, 2004
COMPANY: General Employment Enterprises, Inc.
CONTACT: 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 a net loss of $462,000, or $ .09
per share, for the quarter ended December 31, 2003,
compared with a net loss of $644,000 or $ .13 per share,
for the same quarter last year.
The Company's consolidated net revenues for the quarter
were $4,563,000, down 7% from $4,900,000 last year.
Contract service revenues of $3,392,000 increased 3%,
while placement service revenues of $1,171,000 declined 28%.
Commenting on the Company's first quarter performance,
Herbert F. Imhoff, Jr., board chairman and CEO, said, "We
saw some improvement in the demand for contract services
during the quarter. As a result, the Company had an 18%
increase in the number of billable hours. Weakness in the
demand for placement services continued, however, and the
number of placements was down 20%. In addition, we
continued to experience downward pressures on pricing,
resulting in lower average fees in both of the divisions."
Mr. Imhoff continued, "Through aggressive cost-cutting
programs, we were able to reduce general and
administrative expenses by 16% versus last year's first
quarter. As a result, we were able to reduce the size of
our net loss by 28%, despite the lower consolidated
revenues. Our financial condition remained strong, with
$3,301,000 of cash and cash equivalents and a current
ratio of 3.2 to 1 as of December 31, 2003."
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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Mr. Imhoff concluded his comments by saying, "As I have
said before, the key to returning the Company to
profitability lies in increasing its overall revenues.
The improvement in billable contract hours that we
experienced during the first quarter is an encouraging
sign. That is because, in past economic recoveries,
employers have tended to use temporary help services
before they committed to full-time hiring. However, we
have yet to see any noticeable improvement in the demand
for full-time hiring in our operations."
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 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 21 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 TWO
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months
Ended December 31
2003 2002
Net revenues:
Contract services $3,392 $3,280
Placement services 1,171 1,620
Net revenues 4,563 4,900
Operating expenses:
Cost of contract services 2,370 2,217
Selling 803 1,124
General and administrative(1) 1,869 2,221
Total operating expenses 5,042 5,562
Loss from operations (479) (662)
Investment income 17 18
Loss before income taxes (462) (644)
Credit for income taxes(2) -- --
Net loss $ (462) $ (644)
Net loss per share - basic and diluted $ (.09) $ (.13)
Average number of shares - basic and diluted 5,121 5,121
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(1) General and administrative expenses include a provision
for office closings of $25,000 in the three month period
ended December 31, 2003.
(2) There were no credits for income taxes as a result of
the pretax losses for the periods ended December 31, 2003
and 2002, because the tax losses must be carried forward for
income tax purposes and there was not sufficient assurance
that future tax benefits would be realized.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
ADD THREE
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31 September 30
2003 2003
Assets:
Cash and cash equivalents $3,301 $3,905
Accounts receivable and other current assets 2,573 2,595
Total current assets 5,874 6,500
Property, equipment and goodwill, net 2,021 2,191
Total assets $7,895 $8,691
Liabilities and shareholders' equity:
Current liabilities $1,824 $2,167
Shareholders' equity 6,071 6,524
Total liabilities and shareholders' equity $7,895 $8,691
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