EXHIBIT 99.01
General Employment News Release
General Employment Enterprises, Inc., Oakbrook Terrace Tower, Suite 2200,
Oakbrook Terrace, IL 60181, (630) 954-0400 AMEX: JOB
FOR IMMEDIATE RELEASE July 27, 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 Third Quarter Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc.
(AMEX: JOB) reported net income of $259,000, or $.05 per
share, for the quarter ended June 30, 2005, compared with a
net loss of $12,000, for the same quarter last year.
The Company's consolidated net revenues for the quarter were
$5,319,000, up 12% from $4,755,000 for the same quarter last
year. Contract service revenues of $3,011,000 were up 3%,
while placement service revenues of $2,308,000 increased
27%.
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
since the third quarter of last year. The increase in
placement service revenues for the quarter was achieved
through a combination of a 16% increase in the number of
placements and a 5% increase in the average placement fee.
Contract service revenues benefited from a 15% increase
in the average billing rate, but also reflected a 10% 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 demand for the
Company's professional staffing services."
Nine Months Results
For the nine months ended June 30, 2005, the Company had net
income of $399,000, or $.07 per share (diluted), compared
with a net loss of $919,000, or $.18 per share, for the same
period last year. The results for 2004 reflect a loss from
discontinued operations of $.02 per share. There were no
provisions or credits for income taxes reflected in the
results of operations for either year, because of the presence
of losses carried forward from prior years.
Consolidated net revenues for the nine-month period were
$14,953,000, up 13% compared with $13,216,000 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, 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
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 Nine Months
Ended June 30 Ended June 30
2005 2004 2005 2004
Net revenues:
Contract services $ 3,011 $ 2,934 $ 8,741 $ 8,870
Placement services 2,308 1,821 6,212 4,346
Net revenues 5,319 4,755 14,953 13,216
Operating expenses:
Cost of contract services 2,133 2,179 6,193 6,440
Selling 1,403 1,030 3,814 2,681
General and administrative 1,548 1,576 4,604 4,968
Total operating expenses 5,084 4,785 14,611 14,089
Income (loss) from operations 235 (30) 342 (873)
Investment income 24 8 57 31
Income (loss) from
continuing operations 259 (22) 399 (842)
Income (loss) from
discontinued operations(1) -- 10 -- (77)
Net income (loss)(2) $ 259 $ (12) $ 399 $ (919)
Average number of shares:
Basic 5,143 5,136 5,140 5,130
Diluted 5,283 5,136 5,361 5,130
Per share - basic:
Income (loss) from continuing
operations $ .05 $ -- $ .08 $ (.16)
Income (loss) from discontinued
operations -- -- -- (.02)
Net income (loss) $ .05 $ -- $ .08 $ (.18)
Per share - diluted:
Income (loss) from continuing
operations $ .05 $ -- $ .07 $ (.16)
Income (loss) from discontinued
operations -- -- -- (.02)
Net income (loss) $ .05 $ -- $ .07 $ (.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 June 30, 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 June 30, 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)
June 30 September 30
2005 2004
Assets:
Cash and cash equivalents $ 4,845 $ 4,437
Accounts receivable, net, and
other current assets 2,439 2,319
Total current assets 7,284 6,756
Property and equipment, net 652 538
Total assets $ 7,936 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 2,360 $ 2,126
Shareholders' equity 5,576 5,168
Total liabilities and shareholders' equity $ 7,936 $ 7,294