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 April 28, 2005
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 Second Quarter Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc. (AMEX:
JOB) announced its results for the quarter ended March 31, 2005.
Second Quarter Results
The Company reported net income of $21,000 for the quarter ended
March 31, 2005, compared with a net loss of $445,000, or $.09 per
share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were
$4,752,000,up 12% from $4,231,000 for the same quarter last year.
Contract service revenues of $2,771,000 were down 4%, while
placement service revenues of $1,981,000 increased 46%.
Commenting on the Company's performance for the quarter, Herbert
F. Imhoff, Jr., board chairman and CEO said, "The demand for the
Company's placement services has strengthened considerably since
the second quarter of last year. The increase in placement
service revenues was achieved through a combination of a 32%
increase in the number of placements and a 9% increase in the
average placement fee. Contract service revenues were down for
the quarter due to a 5% decrease in billable hours. The increase
in consolidated revenues enabled the Company to return to
profitability for the quarter."
Mr. Imhoff added, "Continued improvement for the Company will
depend on continued improvement in the national jobs market."
Six Months Results
For the six months ended March 31, 2005, the Company had net
income of $140,000, or $.03 per share, compared with a net loss of
$907,000, or $.18 per share, for the same period last year.
Consolidated net revenues for the six-month period were
$9,634,000, up 14% compared with $8,461,000 last year.
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
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.
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Six Months
Ended March 31 Ended March 31
2005 2004 2005 2004
Net revenues:
Contract services $ 2,771 $ 2,877 $ 5,730 $ 5,936
Placement services 1,981 1,354 3,904 2,525
Net revenues 4,752 4,231 9,634 8,461
Operating expenses:
Cost of contract services 1,977 2,120 4,060 4,261
Selling 1,257 866 2,411 1,651
General and administrative 1,510 1,638 3,056 3,392
Total operating expenses 4,744 4,624 9,527 9,304
Income (loss) from operations 8 (393) 107 (843)
Investment income 13 6 33 23
Income (loss) from
continuing operations 21 (387) 140 (820)
Loss from discontinued operations(1) -- (58) -- (87)
Net income (loss)(2) $ 21 $ (445) $ 140 $ (907)
Average number of shares:
Basic 5,141 5,132 5,139 5,127
Diluted 5,383 5,132 5,390 5,127
Per share - basic and diluted:
Income (loss) from continuing
operations $ -- $ (.08) $ .03 $ (.16)
Loss from discontinued operations -- (.01) -- (.02)
Net income (loss) $ -- $ (.09) $ .03 $ (.18)
__________________________________________________
(1) In September 2004, the Company completed a transaction to
sell the assets and business operations of its Pittsburgh,
Pennsylvania staffing business, which is reflected as
discontinued operations.
(2) There were no provisions for income taxes for the periods
ended March 31, 2005, because of the utilization of losses
carried forward from prior years. There were no credits for
income taxes as a result of the pretax losses for the periods
ended March 31, 2004, because the losses were carried forward
and there was not sufficient assurance that a future tax benefit
would be realized.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
March 31 September 30
2005 2004
Assets:
Cash and cash equivalents $ 4,444 $ 4,437
Accounts receivable, net, and
other current assets 2,354 2,319
Total current assets 6,798 6,756
Property and equipment, net 399 538
Total assets $ 7,197 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 1,884 $ 2,126
Shareholders' equity 5,313 5,168
Total liabilities and shareholders' equity $ 7,197 $ 7,294