Exhibit 99.01
General Employment Enterprises, Inc., Oakbrook Terrace Tower, Suite 2200,
Oakbrook Terrace, IL 60181, (630) 954-0400 AMEX: JOB
FOR IMMEDIATE RELEASE July 28, 2008
COMPANY: General Employment Enterprises, Inc.
CONTACT: Doris A. Bernar
Communications Manager & Assistant 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 consolidated net revenues for the quarter ended June 30, 2008 of
$3,622,000, compared with consolidated net revenues of $4,864,000 reported
for the same period last year.
Placement services revenues for the quarter were $1,817,000, down 38% from
the same period last year. Contract service revenues of $1,805,000
decreased 7% from last year.
As a result of the lower revenues, the Company had a net loss of $582,000,
or $.11 per diluted share, in the third quarter of this fiscal year,
compared with net income of $184,000, or $.03 per diluted share, in the
third quarter last year.
Commenting on the Company's performance, Herbert F. Imhoff, Jr., board
chairman and CEO said, "The depressed economy had a significant impact on
our revenues and operating results this quarter. Based on feedback from our
branch offices, we believe current and potential clients have chosen to
limit their hiring plans due to the continuing economic uncertainties. "
Mr. Imhoff added, "In response to these business conditions, we have taken a
number of proactive measures to contain losses and increase branch
productivity. As of today, we have closed three underperforming branch
offices this fiscal year. In addition, we added a national training manager
to our corporate team whose focus will be on increasing branch production
levels as well as improving the hiring and retention of field staff. "
Concluding, Mr. Imhoff said, "Our priorities are to improve the Company's
revenues through additional training, to maintain tight controls over
spending and to evaluate other cost-cutting options. "
Nine Months Results
For the nine months ended June 30, 2008, the Company had a net loss of
$1,332,000, or $.26 per share, compared with net income of $570,000, or $.11
per share, for the same period last year. Consolidated net revenues for the
nine-month period were $11,475,000, down from $14,668,000 last year.
Business Information
General Employment provides professional staffing services through a network
of 17 branch offices located in 9 states, and specializes in information
technology, accounting and engineering placements.
The Company's business is highly dependent on national employment trends in
general and on the demand for professional staff in particular. Because
long-term contracts are not a significant part of the Company's business,
future results cannot be reliably predicted by considering past trends or by
extrapolating past results. 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, the
possibility of incurring liability for the Company's business activities,
including the activities of contract employees and events affecting its
contract employees on client premises, and the ability of the Company to
attract and retain qualified corporate and branch management.
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Nine Months
Ended June 30 Ended June 30
2008 2007 2008 2007
Net revenues:
Contract services $1,805 $1,942 $ 5,665 $ 6,255
Placement services 1,817 2,922 5,810 8,413
Net revenues 3,622 4,864 11,475 14,668
Operating expenses:
Cost of contract services 1,207 1,306 3,816 4,224
Selling 1,232 1,856 3,885 5,308
General and administrative 1,779 1,601 5,170 4,791
Total operating expenses 4,218 4,763 12,871 14,323
Income (loss) from operations (596) 101 (1,396) 345
Investment income 14 83 64 225
Net income (loss)(1) $ (582) $ 184 $(1,332) $ 570
Average number of shares:
Basic 5,165 5,151 5,163 5,149
Diluted 5,165 5,399 5,163 5,372
Net income (loss) per share:
Basic $ (.11) $ .04 $ (.26) $ .11
Diluted $ (.11) $ .03 $ (.26) $ .11
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(1) There were no credits for income taxes as a result of the pretax losses
in the 2008 periods, because there was not sufficient assurance that future
tax benefits would be realized. There were no provisions for income taxes
in the 2007 periods, because of the availability of losses carried
forward from prior years.
GENERAL EMPLOYMENT ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
June 30 September 30
2008 2007
Assets:
Cash and cash equivalents $4,267 $6,344
Other current assets 1,992 2,167
Total current assets 6,259 8,511
Property and equipment, net 849 929
Other assets 441 436
Total assets $7,549 $9,876
Liabilities and shareholders' equity:
Current liabilities $1,574 $2,116
Other liabilities 441 436
Shareholders' equity(2) 5,534 7,324
Total liabilities and shareholders' equity $7,549 $9,876
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(2) During the nine months ended June 30, 2008, the board of directors
declared a cash dividend of $.10 per common share, resulting in a $517,000
charge to retained earnings.