General Employment Reports Fourth Quarter and Fiscal 2008 Results
November 24 2008 - 6:03PM
PR Newswire (US)
OAKBROOK TERRACE, Ill., Nov. 24 /PRNewswire-FirstCall/ -- General
Employment Enterprises, Inc. (NYSE Alternext US: JOB) reported
consolidated net revenues for the quarter ended September 30, 2008
of $3,760,000, a 25% decrease compared with consolidated net
revenues of $5,022,000 reported for the same period last year.
Placement service revenues for the quarter were $1,949,000, down
from $2,829,000 for the same period last year. Contract service
revenues of $1,811,000 decreased from $2,193,000 last year. The
Company reported a net loss for the quarter of $474,000, or $.09
per diluted share, compared with net income of $344,000, or $.06
per diluted share, for the same period last year. Commenting on the
Company's performance for the quarter, Herbert F. Imhoff, Jr.,
board chairman and CEO, said, "Our fourth quarter results were
adversely affected by the turmoil in the U.S. financial markets and
deteriorating employment conditions. Clients became increasingly
cautious about hiring, and consolidated net revenues declined 25%
from the fourth quarter of last year." Mr. Imhoff added, "On a
positive note, our revenues improved by 4% and the net loss
narrowed, compared with this year's third quarter." Fiscal Year
Results For the fiscal year ended September 30, 2008, the Company
had a net loss of $1,806,000, or $.35 per diluted share, compared
with net income of $914,000, or $.17 per diluted share, for the
same period last year. Consolidated net revenues for the fiscal
year were $15,235,000, a 23% decrease compared with $19,690,000
last year. Business Information General Employment provides
professional staffing services through a network of 17 branch
offices located in nine 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 Ended Year Ended September 30 September 30 2008
2007 2008 2007 Net revenues: Contract services $1,811 $2,193 $7,476
$8,448 Placement services 1,949 2,829 7,759 11,242 Net revenues
3,760 5,022 15,235 19,690 Operating expenses: Cost of contract
services 1,221 1,417 5,037 5,641 Selling, general and
administrative 2,986 3,337 12,041 13,436 Total operating expenses
4,207 4,754 17,078 19,077 Income (loss)from operations (447) 268
(1,843) 613 Investment income (loss) (27) 76 37 301 Net income
(loss)(1) $(474) $344 $(1,806) $914 Average number of shares: Basic
5,165 5,153 5,163 5,150 Diluted 5,165 5,336 5,163 5,368 Net income
(loss)per share: Basic $(.09) $.07 $(.35) $.18 Diluted $(.09) $.06
$(.35) $.17 (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) September 30 September 30
2008 2007 Assets: Cash and cash equivalents $4,165 $6,344 Other
current assets 1,627 2,167 Total current assets 5,792 8,511
Property and equipment, net 791 929 Other assets 419 436 Total
assets $7,002 $9,876 Liabilities and shareholders' equity: Current
liabilities $1,507 $2,116 Other liabilities 419 436 Shareholders'
equity (2) 5,076 7,324 Total liabilities and shareholders' equity
$7,002 $9,876 (2) During the year ended September 30, 2008, the
board of directors declared a cash dividend in the amount of $.10
per common share, resulting in a $517,000 charge to retained
earnings. DATASOURCE: General Employment Enterprises, Inc. CONTACT:
Herbert F. Imhoff, Jr., Chief Executive Officer and President of
General Employment Enterprises, Inc., +1-630-954-0495, Fax,
+1-630-954-0592, Web site: http://www.generalemployment.com/
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