Exhibit
99.01
 |
News
Release
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General
Employment Enterprises, Inc., Oakbrook Terrace Tower, Suite 2200, Oakbrook
Terrace, IL 60181, (630) 954-0400
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FOR IMMEDIATE RELEASE:
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January
25, 2010
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COMPANY:
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General
Employment Enterprises, Inc.
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CONTACT:
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Salvatore
J. Zizza
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Chief
Executive Officer
Phone:
(630) 954-0403 Fax: (630) 954-0595
E-mail:
invest@genp.com
General Employment Reports
First Quarter Results
General
Employment Enterprises, Inc. (NYSE Amex: JOB) reported consolidated net revenues
for the quarter ended December 31, 2009 of $1,972,000, which were
down 32% compared with consolidated net revenues of $2,887,000 reported for the
same period last year. It was the first quarter of the Company’s 2010
fiscal year. Contract service revenues for the quarter were
$1,402,000 down 9% from the same period last year. Placement service revenues of
$570,000 decreased 58% from last year.
The
Company had a net loss of $589,000 or $.04 per share, in the first quarter of
this year, compared with a net loss of $776,000, or $.15 per share, in the first
quarter last year. For purposes of calculating the per-share amounts,
the number of average common shares outstanding was 13,380,000 in the current
quarter, compared with 5,165,000 in the prior-year quarter.
Commenting
on the Company's performance, Salvatore J. Zizza, CEO said, “The quarter
continued to be a challenging environment for the Company. But
despite the decline in consolidated net revenues, we were able to narrow the
quarterly net loss by 24%. This improvement in the bottom line was
made possible by the corporate restructuring that occurred during mid-2009,
which resulted in a 39% reduction in selling, general and administrative
expenses for the quarter.”
Mr. Zizza
continued, “I am optimistic that the U.S. economic recession may have come to an
end, because the economy grew at a 2.2% pace in the September quarter, and I
believe that the national unemployment rate of 10.0% in December 2009 may have
bottomed out. With continued improvement in the economy, the
Company’s business should begin to improve as well.”
Business
Information
General
Employment provides professional staffing services, 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.
Forward-Looking
Statements
The
statements made in this press release which are not historical facts are
forward-looking statements. Such forward-looking statements often
contain or are prefaced by words such as “will” and “expect.” As a result of a
number of factors, our actual results could differ materially from those set
forth in the forward-looking statements. Certain factors that might cause our
actual results to differ materially from those in the forward-looking statements
include, without limitation, those factors set forth under the heading
“Forward-Looking Statements” in our annual report on Form 10-K for the fiscal
year ended September 30, 2009, and in our other filings with the SEC. General
Employment is under no obligation to (and expressly disclaims any such
obligation to) and does not intend to update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise.
GENERAL EMPLOYMENT
ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF
OPERATIONS
(In
Thousands, Except Per Share)
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Three
Months
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||||||||
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Ended December 31
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||||||||
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2009
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2008
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|||||||
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Net
revenues:
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||||||||
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Contract
services
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$ | 1,402 | $ | 1,545 | ||||
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Placement
services
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570 | 1,342 | ||||||
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Net
revenues
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1,972 | 2,887 | ||||||
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Cost
of contract services
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996 | 1,036 | ||||||
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Selling,
general and administrative expenses
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1,547 | 2,556 | ||||||
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Loss
from operations
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(571 | ) | (705 | ) | ||||
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Investment
loss
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(18 | ) | (71 | ) | ||||
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Net
loss (1)
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$ | (589 | ) | $ | (776 | ) | ||
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Average
number of shares - basic and diluted
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13,380 | 5,165 | ||||||
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Net
loss per share - basic and diluted
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$ | (.04 | ) | $ | (.15 | ) | ||
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(1)
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There
were no credits of income taxes as a result of the pretax losses during
the periods, because there was not sufficient assurance that future tax
benefits would be realized.
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GENERAL EMPLOYMENT
ENTERPRISES, INC.
SUMMARIZED CONSOLIDATED
BALANCE SHEET INFORMATION
(In
Thousands)
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December 31
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September 30
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|||||||
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2009
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2009
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|||||||
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Assets:
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||||||||
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Cash
and cash equivalents
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$ | 2,247 | $ | 2,810 | ||||
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Other
current assets
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1,012 | 1,287 | ||||||
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Total
current assets
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3,259 | 4,097 | ||||||
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Property
and equipment, net
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520 | 570 | ||||||
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Total
assets
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$ | 3,779 | $ | 4,667 | ||||
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Liabilities
and shareholders' equity:
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||||||||
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Current
liabilities
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$ | 1,221 | $ | 1,488 | ||||
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Long-term
obligations
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540 | 575 | ||||||
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Shareholders'
equity
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2,018 | 2,604 | ||||||
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Total
liabilities and shareholders' equity
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$ | 3,779 | $ | 4,667 | ||||