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 30, 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
Third-Quarter Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc.
(AMEX: JOB) reported a net loss of $12,000, or $.00 per share,
for the quarter ended June 30, 2004, compared with a net loss of
$852,000, or $.17 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were
$5,090,000, up 11% from $4,597,000 for the same quarter last year.
Contract service revenues of $3,269,000 were up 1% from last year,
while placement service revenues of $1,821,000 increased 34%.
On a sequential basis, consolidated net revenues increased 12%
from $4,547,000 for the quarter ended March 31, 2004, and the net
loss decreased 97% from $445,000 ($.09 per share) last quarter.
Commenting on the Company's performance, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "During the fiscal third quarter,
the Company took a significant step on the road to recovery.
National hiring activity improved, the Company experienced an
improvement in the demand for its placement services, and
consolidated net revenues increased by 11%. As a result, the
Company's net loss was reduced to just shy of break even."
Mr. Imhoff continued, "The 34% increase in placement service
revenues for the quarter was achieved through a combination of a
36% increase in the number of placements and a 6% increase in the
average placement fee, partially offset by higher falloffs.
Contract service revenues were essentially flat, despite a 21%
increase in billable hours, because of continued downward
pressures on pricing in that division."
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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Mr. Imhoff added, "The aggressive actions taken by management to
cut costs also had a significant impact on the bottom line.
General and administrative expenses were down $654,000 (28%) from
the same quarter last year."
Mr. Imhoff concluded his remarks by saying, "I am gratified to
see the improvement in the Company's performance during the third
quarter. However, I am cautiously optimistic about the prospects
for the remainder of the fiscal year. Continued improvement for
the Company will depend on continued improvement in the national
jobs market."
For the nine months ended June 30, 2004, the Company had a net
loss of $919,000, or $.18 per share, compared with a net loss of
$2,596,000, or $.51 per share, for the same period last year.
Consolidated net revenues for the nine-month period were $14,200,000,
up 1% compared with $14,027,000 last year.
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 20 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.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Nine Months
Ended June 30 Ended June 30
2004 2003 2004 2003
Net revenues:
Contract services $ 3,269 $ 3,240 $ 9,854 $ 9,914
Placement services 1,821 1,357 4,346 4,113
Net revenues 5,090 4,597 14,200 14,027
Operating expenses:
Cost of contract services 2,413 2,246 7,150 6,857
Selling 1,037 910 2,718 2,928
General and administrative(1) 1,660 2,314 5,282 6,883
Total operating expenses 5,110 5,470 15,150 16,668
Loss from operations (20) (873) (950) (2,641)
Investment income 8 21 31 45
Net loss(2) $ (12) $ (852) $ (919) $(2,596)
Average number of shares -
basic and diluted 5,136 5,121 5,130 5,121
Net loss per share -
basic and diluted $ - $ (.17) $ (.18) $ (.51)
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(1) General and administrative expenses include
provisions for office closings of $17,000 in the three
month period ended June 30, 2004, $178,000 in the three
month period ended June 30, 2003, $42,000 in the nine
month period ended June 30, 2004, and $215,000 in the
nine month period ended June 30, 2003.
(2) There were no credits for income taxes as a result
of the pretax losses in fiscal 2004 and fiscal 2003,
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.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
June 30 September 30
2004 2003
Assets:
Cash and cash equivalents $ 3,447 $ 3,905
Accounts receivable and other current assets 2,426 2,595
Total current assets 5,873 6,500
Property, equipment and goodwill 1,769 2,191
Total assets $ 7,642 $ 8,691
Liabilities and shareholders' equity:
Current liabilities $ 1,999 $ 2,167
Shareholders' equity 5,643 6,524
Total liabilities and shareholders' equity $ 7,642 $ 8,691
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