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 22, 2004
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)
announced its results for the fourth quarter and fiscal year ended
September 30, 2004.
Fourth Quarter Results
The Company reported income from continuing operations of $64,000,
or $.01 per share, for the quarter ended September 30, 2004,
compared with a loss from continuing operations of $881,000, or $.17
per share, for the same quarter last year.
As previously announced, the Company sold its staffing business in
Pittsburgh, Pennsylvania on September 24, 2004. As a result, the
Company reported a loss from discontinued operations of $542,000, or
$.10 per share, for the quarter ended September 30, 2004. Results
have been restated to reflect the business as discontinued
operations for all periods presented.
The net loss for the quarter ended September 30, 2004 was $478,000,
or $.09 per share, compared with a net loss of $910,000, or $.18 per
share, for the fourth quarter last year.
The Company's consolidated net revenues for the quarter were
$4,765,000, up 12% from $4,270,000 for the same quarter last year.
Contract service revenues of $2,880,000 were about even with last
year, while placement service revenues of $1,885,000 increased 37%.
Commenting on the Company's performance, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "I am very pleased that the Company is
able to report a profit from continuing operations for the fourth
quarter of its fiscal year. National
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GENERAL EMPLOYMENT ENTERPRISES, INC.
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hiring activity continued to improve during the quarter, and the Company
experienced an improvement in the demand for its placement services.
The increase in placement service revenues for the quarter was
achieved through a combination of a 27% increase in the number of
placements and an 18% increase in the average placement fee.
Contract service revenues were essentially flat, despite a 13%
increase in billable hours, because of lower-skilled positions and
continued downward pressures on pricing in that division."
Mr. Imhoff continued, "The aggressive actions taken by management to
cut costs also had a significant impact on the results. General and
administrative expenses were down $870,000 (36%) from the fourth
quarter of last year. The combination of improved revenues and
reduced expenses enabled the Company to return to profitability for
the quarter."
Fiscal Year Results
For the year ended September 30, 2004, the Company had a loss from
continuing operations of $778,000, or $.15 per share, compared with
a loss from continuing operations of $3,439,000, or $.67 per share,
last year.
The net loss for the year was $1,397,000, or $.27 per share, compared
with a net loss of $3,506,000, or $.68 per share, last year.
There were no income tax benefits for either year's loss, because
the tax losses must be carried forward and there was not sufficient
assurance that a future tax benefit would be realized.
Consolidated net revenues for the year were $17,981,000, up 6%
compared with $16,965,000 last year.
Commenting on the Company's performance for the 2004 fiscal year,
Mr. Imhoff said, "We made substantial progress this year. With the
improved revenues and a $2.4 million reduction in general and
administrative expenses, the Company reduced its loss from
continuing operations by 77% from last year."
Mr. Imhoff added, "The disposal of our Pittsburgh operation during
the fourth quarter of the year had a positive effect on the
Company's balance sheet. As a result of the transaction, the
Company received $705,000 in cash and eliminated goodwill of
$1,088,000. The cash balance at the end of the year was up $532,000
from the prior year."
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Mr. Imhoff concluded his remarks by saying, "I am gratified to see
the improvement in the Company's performance this year, and I am
cautiously optimistic about the prospects for the 2005 fiscal year.
However, continued improvement for the Company will depend on
continued improvement in the national jobs market."
Business Information
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 19 branch offices located in 10 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 Year
Ended September 30 Ended September 30
2004 2003 2004 2003
Net revenues:
Contract services $ 2,880 $ 2,895 $11,750 $11,477
Placement services 1,885 1,375 6,231 5,488
Net revenues 4,765 4,270 17,981 16,965
Operating expenses:
Cost of contract services 2,080 1,989 8,520 7,875
Selling 1,084 765 3,765 3,641
General and administrative(1) 1,540 2,410 6,508 8,946
Total operating expenses 4,704 5,164 18,793 20,462
Income (loss) from operations 61 (894) (812) (3,497)
Investment income 3 13 34 58
Income (loss) from continuing
operations 64 (881) (778) (3,439)
Loss from discontinued operations(2) (542) (29) (619) (67)
Net loss(3) $ (478) $ (910) $(1,397) $(3,506)
Average number of shares:
Basic 5,136 5,121 5,131 5,121
Diluted 5,363 5,121 5,131 5,121
Per share - basic and diluted:
Income (loss) from continuing
operations $ .01 $ (.17) $ (.15) $ (.67)
Loss from discontinued operations (.10) (.01) (.12) (.01)
Net loss $ (.09) $ (.18) $ (.27) $ (.68)
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(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, $42,000 in the
year ended September 30, 2004 and $625,000 in the year ended
September 30, 2003.
(2) In September 2004, the Company completed a transaction to sell
the assets and business operations of its Pittsburgh, Pennsylvania
staffing business ("GenTech") for $705,000 in cash and recorded a
loss on disposal of $553,000. GenTech's operating results are
reflected as discontinued operations for all periods presented.
(3) There were no credits for income taxes as a result of the
pretax losses from continuing operations or from discontinued
operations in fiscal 2004 and fiscal 2003, because the losses must
be carried forward for income tax purposes and there was not
sufficient assurance that a future tax benefit would be realized.
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GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
September 30 September 30
2004 2003
Assets:
Cash and cash equivalents $ 4,437 $ 3,905
Accounts receivable and other current assets 2,319 2,595
Total current assets 6,756 6,500
Property, equipment and goodwill 538 2,191
Total assets $ 7,294 $ 8,691
Liabilities and shareholders' equity:
Current liabilities $ 2,126 $ 2,167
Shareholders' equity 5,168 6,524
Total liabilities and shareholders' equity $ 7,294 $ 8,691
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