General Employment Reports Fourth Quarter and Fiscal 2008 Results

General Employment Reports Fourth Quarter and Fiscal 2008 Results

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.

SOURCE General Employment Enterprises, Inc.