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 November 21, 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 Fourth Quarter Results
OAKBROOK TERRACE, IL - General Employment Enterprises, Inc.
(AMEX: JOB) reported income from continuing operations and
net income of $272,000, or $.05 per share, for the quarter
ended September 30, 2005, compared with income from
continuing operations of $64,000, or $.01 per share, for the
same quarter last year.
For the quarter ended September 30, 2004, the Company had a
net loss of $478,000, or $.09 per share, reflecting a loss
from discontinued operations.
The Company's consolidated net revenues for the 2005 quarter
were $5,395,000, up 13% from $4,765,000 for the same quarter
last year. Contract service revenues of $3,013,000 were up
5%, while placement service revenues of $2,382,000 increased 26%.
Commenting on the Company's performance, Herbert F. Imhoff,
Jr., board chairman and CEO said, "The demand for the
Company's placement services has strengthened since the
fourth quarter of last year. The increase in placement
service revenues for the quarter was achieved through a
combination of a 17% increase in the number of placements and
a 5% increase in the average placement fee. Contract service
revenues benefited from an 18% increase in the average
billing rate, but also reflected a 10% decrease in billable hours."
Mr. Imhoff added, "Continued improvement for the Company will
depend on continued improvement in the demand for the
Company's professional staffing services."
Fiscal Year Results
For the fiscal year ended September 30, 2005, the Company had
income from continuing operations and net income of $671,000,
or $.13 per share, compared with a loss from continuing
operations of $778,000, or $.15 per share, last year.
For the year ended September 30, 2004, the Company had a net
loss of $1,397,000, or $.27 per share, reflecting a loss from
discontinued operations.
There were no provisions or credits for income taxes
reflected in the results for either year because of the
presence of losses carried forward from prior years.
Consolidated net revenues for the 2005 fiscal year were
$20,348,000, up 13%, compared with $17,981,000 last year.
Mr. Imhoff concluded his comments saying, "We made
substantial progress this year. We returned the Company to
profitability, following a difficult four-year period for the
U.S. jobs market. The improvement this year was achieved
through a 13% increase in consolidated net revenues, while
general and administrative expenses were reduced by $322,000."
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 to attract and retain qualified
corporate and branch management.
General Employment provides professional staffing services
through a network of 18 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 Year
Ended September 30 Ended September 30
2005 2004 2005 2004
Net revenues:
Contract services $ 3,013 $ 2,880 $11,754 $11,750
Placement services 2,382 1,885 8,594 6,231
Net revenues 5,395 4,765 20,348 17,981
Operating expenses:
Cost of contract services 2,142 2,080 8,335 8,520
Selling 1,436 1,084 5,250 3,765
General and administrative 1,582 1,540 6,186 6,508
Total operating expenses 5,160 4,704 19,771 18,793
Income (loss) from operations 235 61 577 (812)
Investment income 37 3 94 34
Income (loss) from
continuing operations 272 64 671 (778)
Loss from discontinued operations(1) -- (542) -- (619)
Net income (loss)(2) $ 272 $ (478) $ 671 $(1,397)
Average number of shares:
Basic 5,147 5,136 5,142 5,131
Diluted 5,337 5,363 5,355 5,131
Per share - basic and diluted:
Income (loss) from
continuing operations $ .05 $ .01 $ .13 $ (.15)
Loss from discontinued
operations -- (.10) -- (.12)
Net income (loss) $ .05 $ (.09) $ .13 $ (.27)
__________________________________________________
(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 September 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 September 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)
September 30 September 30
2005 2004
Assets:
Cash and cash equivalents $ 5,236 $ 4,437
Accounts receivable, net, and
other current assets 2,496 2,319
Total current assets 7,732 6,756
Property and equipment, net 632 538
Total assets $ 8,364 $ 7,294
Liabilities and shareholders' equity:
Current liabilities $ 2,514 $ 2,126
Shareholders' equity 5,850 5,168
Total liabilities and shareholders' equity $ 8,364 $ 7,294